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on Heterodox Microeconomics |
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Issue of 2024‒03‒25
eleven papers chosen by Carlo D’Ippoliti, Università degli Studi di Roma “La Sapienza” |
| By: | Claire-Isabelle Roquebert (UNIL - Université de Lausanne = University of Lausanne); Gervaise Debucquet |
| Abstract: | In the face of rising sustainability issues, increasing numbers of organisations are trying to build compromises between their economic purpose and ecological objectives. Organisational studies focus on the analysis of such compromise processes but most studies do not seek to grasp the substantial changes advocated by ecological critiques. Our research is aimed at addressing that gap by clarifying the radical view sustained by ecological imaginary beyond conventional compromise processes. We engage in a qualitative study of biodynamics – an agricultural method based on a radical ecological imaginary – to evaluate its moral underpinnings through Boltanski and Thévenot's Economies of Worth framework. Our findings help us to grasp the radical moral substance of ecological critique and to extend that framework beyond its dualist assumption. By highlighting antagonisms between meta-conceptions of justice rather than analysing compromises, our research provides insights into the radical organisational changes advocated by ecological critiques. |
| Keywords: | Biodynamic farming, Ecological critique, Economies of Worth, Imaginaries, Nature-culture dualism, Sustainability, Antagonisms |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03897785&r=hme |
| By: | Federico M. Accursi, Raúl Bajo-Buenestado |
| Keywords: | Cooperatives, Pass-through to prices; Market power; Firm conduct; Retail fuel market. |
| JEL: | D22 H22 H32 L21 L29 P13 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:nva:unnvaa:wp02-2024&r=hme |
| By: | Collins, Hugh |
| Abstract: | This article explores the idea that the moral standards of relational or interpersonal justice can be used to lay the foundations for a theory of justice in work, rather than relying on principles of justice developed for society as a whole in philosophical theories of distributive justice. It is argued that a rich and distinctive scheme of interpersonal justice can be developed by using a method of internal critique and by focusing on two distinctive features of contracts of employment. Because they are incomplete by design, like other relational contracts, contracts of employment depend for their success on a broad obligation of performance in good faith. Contracts of employment also usually function within organizations which provide the source of customary norms of associational justice that govern relations between members of the firm. These principles of associational justice include rewards based on desert, a strong egalitarian principle, protection from unjustified exclusion, and a right to have a voice in the affairs and the direction of the organization. |
| Keywords: | De Gruyter deal |
| JEL: | R14 J01 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118476&r=hme |
| By: | Braun Alexander, Michael |
| Abstract: | Public housing policy has given housing cooperatives above-average market shares, in some cases. This was achieved despite the fact that the sponsor, believing that he was doing good, even temporarily slowed down the independent development of his target. The case study of Hochtaunusbau shows that public funding can be at the expense of the cooperatives. The public sponsor, in this case the city, also prevented market-based incentive systems, such as dividends. The cooperative saw this as a brake on its equity formation. After all, the good location, close to the Taunus and close to the financial center of Frankfurt am Main, has led to high hidden reserves. The cooperative can hardly make use of this, either to give members a greater share in the cooperative's profits or to offer more members an apartment through new construction. It essentially saw itself as a portfolio holder. Evidence from the science of cooperatives, according to which the reserves of a cooperative can certainly be divided, is not accepted in practice. And public sponsors continue to provide funds. They do not demand that cooperatives use their hidden reserves for the cooperative purpose. |
| JEL: | D22 L85 N94 P R38 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ibfpps:284714&r=hme |
| By: | Lenhard, Gregor (University of Basel) |
| Abstract: | Recent survey evidence suggests that investors form beliefs about future stock returns by predominantly extrapolating their own experience: They overweight returns they have personally experienced while underweighting returns from earlier years and consequently expect high (low) stock market returns when they observe bullish (bearish) markets in their lifespan. Such events are difficult to reconcile with the existing models. This paper introduces a simple agent-based model for simulating artificial stock markets in which mean-variance optimizing investors have heterogeneous beliefs about future capital gains to form their expectations. Using this framework, I successfully reproduce various stylized facts from the empirical finance literature, such as under diversification, the predictive power of the price-dividend ratio, and the autocorrelation of price changes. The experimental findings show that the most realistic market scenarios are produced when agents have a bias for recent returns. The study also established a link between under diversification of investor portfolios and personal experiences. |
| JEL: | C63 G12 D84 |
| Date: | 2024–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2024/01&r=hme |
| By: | Miguel Angel Casau; Daniel Herrero |
| Abstract: | This paper investigates the deindustrialization process in Germany and Spain from 1995 to 2018. It is argued that the deindustrialization trajectories of each country are partially related to their growth models. An analysis in two steps is conducted. First, using the OECD input-output tables, a Hierarchical Structural Decomposition Analysis is applied, and the variation in the manufacturing value-added share is decomposed into five deindustrialization drivers: income, investment, relative prices, outsourcing and globalization. Second, building on the growth model perspective, an interpretative framework to analyze the evolution of the five abovementioned drivers is presented. The interaction between institutions, aggregate demand and the economic structure is explicitly considered in this framework. The comparative study of the German and Spanish cases and the distinction between the pre- and post-crisis periods illustrates the consequences of the distinct growth models (and the economic policies on which they are grounded) on structural change. The results suggest that the evolution of the deindustrialization drivers (and thus the manufacturing value-added share) in both countries is well-explained by their specific fiscal, labor, and industrial policies. |
| Keywords: | deindustrialization, growth models, input-output analysis, macroeconomic policies, industrial policy |
| Date: | 2024–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/06&r=hme |
| By: | Giovanni Dosi; Anna Snaidero |
| Abstract: | This paper delves into geographical agglomeration patterns of economic activities focusing on the connection between these agglomeration tendencies and sectoral patterns of innovative activities. Within a broad evolutionary perspective, we refine upon incumbent statistical models, trying to distinguish between intra- and inter-sectoral agglomerative forces, conditional on different types of sectoral innovative activities. Utilizing data spanning three distinct years, a decade apart, we investigate the systematic nature of spatial distributions, the relationship between agglomeration drivers and technological paradigms, and shifts in agglomerative tendencies over time. Our findings suggest that economic space is far from uniform, but the spatial heterogeneity differs across sectors as it is driven by various factors, including increasing returns, urbanization advantages, and sector-specific forms of knowledge generation and diffusion. |
| Keywords: | spatial agglomeration, evolutionary economic geography, increasing returns, externalities, knowledge specificities, Pavitt taxonomy |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/07&r=hme |
| By: | Eckhard Hein; Hagen M. Krämer |
| Abstract: | This paper examines the challenges of achieving and sustaining full employment in a global economy, as discussed by Michał Kalecki and John Maynard Keynes. Its aim is to analyse the common perspectives and differences between Kalecki and Keynes on this issue. The paper first examines the basic views of Kalecki and Keynes on long-term employment issues. This contains comparing their respective considerations of political economy constraints to full employment. Then Kalecki’s and Keynes’s views on the constraints in open economies and the economic policy strategies they proposed are assessed. The paper points out Kalecki’s advocacy for public deficit spending and income redistribution for achieving full employment, which slightly differs from Keynes's emphasis on stimulating investment, including partial socialisation. Regarding power relations, Kalecki focussed on the conflict between capital and labour, calling for ‘crucial reforms’ like nationalisation of key industries, while Keynes highlighted the conflict between financial and industrial capital. Both shared a nuanced view of globalisation, but differences emerge when discussing the Keynes Plan. Keynes aimed to prevent deflation in the international monetary system, while Kalecki stressed long-term international lending for sustaining full employment. Both economists underscored the importance of international conditions for achieving full employment, emphasizing the need for a balance of payments equilibrium over strictly balanced current accounts. |
| Keywords: | Full employment, global economy, John Maynard Keynes, Michał Kalecki |
| JEL: | E11 E12 E61 F41 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2404&r=hme |
| By: | Zengqing Wu; Shuyuan Zheng; Qianying Liu; Xu Han; Brian Inhyuk Kwon; Makoto Onizuka; Shaojie Tang; Run Peng; Chuan Xiao |
| Abstract: | Recent advancements have shown that agents powered by large language models (LLMs) possess capabilities to simulate human behaviors and societal dynamics. However, the potential for LLM agents to spontaneously establish collaborative relationships in the absence of explicit instructions has not been studied. To address this gap, we conduct three case studies, revealing that LLM agents are capable of spontaneously forming collaborations even within competitive settings. This finding not only demonstrates the capacity of LLM agents to mimic competition and cooperation in human societies but also validates a promising vision of computational social science. Specifically, it suggests that LLM agents could be utilized to model human social interactions, including those with spontaneous collaborations, thus offering insights into social phenomena. The source codes for this study are available at https://github.com/wuzengqing001225/SABM_ShallWeTalk . |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.12327&r=hme |
| By: | Dang, Canh Thien; Owens, Trudy |
| Abstract: | Understanding the mechanisms that guide non-governmental organizations’ (NGOs) managerial decisions is a key to effective development policies. One fundamentally strategic decision is the number of activities an NGO offers. We provide a conceptual framework based on the agency theory to study the motivations underlying strategic decisions of development NGOs in Uganda. We test whether diversifying into many activities is driven by operational reasons or by personal gains of NGO managers. Following a historic flood in 2007, NGOs that rely more on contractual income offer fewer activities than their counterparts in less affected areas. The results support theoretical explanations that operational motives such as risk-reduction or cost complementarity dominate personal and for-profit-like motives. Our article contributes to the debates around the ethical and governmental foundation of the non-profit sector, highlighting the different roles of personal and operational aspects in the decision-making process. |
| Keywords: | OUP deal |
| JEL: | J1 |
| Date: | 2023–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120200&r=hme |
| By: | Patrick Meyfroidt; Dilini Abeygunawardane; Matthias Baumann; Adia Bey; Ana Buchadas; Cristina Chiarella; Victoria Junquera; Angela Kronenburg Garc\'ia; Tobias Kuemmerle; Yann le Polain de Waroux; Eduardo Oliveira; Michelle Picoli; Siyu Qin; Virginia Rodriguez Garc\'ia; Philippe Rufin |
| Abstract: | Land use expansion is linked to major sustainability concerns including climate change, food security and biodiversity loss. This expansion is largely concentrated in so-called frontiers, defined here as places experiencing marked transformations due to rapid resource exploitation. Understanding the mechanisms shaping these frontiers is crucial for sustainability. Previous work focused mainly on explaining how active frontiers advance, in particular into tropical forests. Comparatively, our understanding of how frontiers emerge in territories considered marginal in terms of agricultural productivity and global market integration remains weak. We synthesize conceptual tools explaining resource and land-use frontiers, including theories of land rent and agglomeration economies, of frontiers as successive waves, spaces of territorialization, friction, and opportunities, anticipation and expectation. We then propose a new theory of frontier emergence, which identifies exogenous pushes, legacies of past waves, and actors anticipations as key mechanisms by which frontiers emerge. Processes of abnormal rent creation and capture and the built-up of agglomeration economies then constitute key mechanisms sustaining active frontiers. Finally, we discuss five implications for the governance of frontiers for sustainability. Our theory focuses on agriculture and deforestation frontiers in the tropics, but can be inspirational for other frontier processes including for extractive resources, such as minerals. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.12487&r=hme |