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on Post Keynesian Economics |
| By: | Bianco, Antonio |
| Abstract: | A stock-flow consistent and simple methodological account of the influence of financial markets over the real economy is here presented. Based on an original interpretation of the basic heterogeneity in relationship and shadow banking operations, often referred to as OTH vs. OTD banking models, this methodological article develops an accounting model that emphasizes the interdependencies in entrepreneurs’ variations in animal spirits, financial institutions’ liquidity risk management, and households’ effective demand. The model captures the idea that fluctuations in the composition of property incomes lead to fluctuations in borrowing for non-financial purposes that, in their turn, drive fluctuations in spending. The model is so devised as to allow a tidy comparison in the role played by relationship or shadow banking over the dynamism of a depressed economy. |
| Keywords: | depression, animal spirits, liquidity preference, effective demand, post-Keynesian, endogenous money, securitization, relationship vs. shadow banking, originate-to-hold vs. originate-to-distribute |
| JEL: | B52 E12 E20 E44 M40 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:65849&r=pke |
| By: | Guglielmo Forges Davanzati (University of Salento) |
| Abstract: | Nicholas Kaldor’s contribution to economic theory covers a wide range of topics, elaborated in different historical contexts, such as theories of economic growth and the balance of payments, studies on interregional divergences and monetary theory. In most cases, historians of economic thought have devoted their attention to single aspects of his contributions. This paper aims at integrating Kaldor’s monetary theory and his view of the relevance of increasing returns. His theory of endogenous money is very similar to the view proposed in the contemporary monetary theory of production, and, in this respect, Kaldor’s contribution can certainly be considered an “antecedent” of this line of thought. |
| Keywords: | endogenous money, aggregate demand, labour productivity. |
| JEL: | B3 E4 |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp1505&r=pke |
| By: | Daniyal Khan (Department of Economics, New School for Social Research) |
| Abstract: | After discussing and analyzing exploitation as an analytical category in The Economics of Imperfection Competition and An Essay on Marxian Economics, Joan Robinson hardly mentioned it in The Accumulation of Capital. Despite analyzing her contributions at length, the literature has completely failed to recognize this curious turn, let alone explain it. This paper explains the abandonment of exploitation by arguing that it was one way to resolve the tension between the inherently normative aspects of the concept and her increasing discomfort with conflation of ideology and analysis across the first two books mentioned above. |
| Keywords: | Joan Robinson, exploitation, theory of value, ideology |
| JEL: | B50 B22 B31 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:new:wpaper:1515&r=pke |
| By: | Jorg Bibow |
| Abstract: | The euro crisis remains unresolved and the euro currency union incomplete and extraordinarily vulnerable. The euro regime's essential flaw and ultimate source of vulnerability is the decoupling of central bank and treasury institutions in the euro currency union. We propose a "Euro Treasury" scheme to properly fix the regime and resolve the euro crisis. This scheme would establish a rudimentary fiscal union that is not a transfer union. The core idea is to create a Euro Treasury as a vehicle to pool future eurozone public investment spending and to have it funded by proper eurozone treasury securities. The Euro Treasury could fulfill a number of additional purposes while operating mainly on the basis of a strict rule. The plan would also provide a much-needed fiscal boost to recovery and foster a more benign intra-area rebalancing. |
| Keywords: | Economic and Monetary Union; Euro Crisis; Euro Treasury; Fiscal Union; Public Investment |
| JEL: | E32 E62 E63 H62 H63 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp_842&r=pke |
| By: | Aurélien Goutsmedt (Centre d'Economie de la Sorbonne); Erich Pinzon-Fuchs (Centre d'Economie de la Sorbonne); Matthieu Renault (Centre d'Economie de la Sorbonne); Francesco Sergi (Centre d'Economie de la Sorbonne) |
| Abstract: | The standard history of macroeconomics considers Lucas (1976)– “the Lucas Critique” –as a path-breaking innovation for the discipline. According to this view Lucas's article dismissed the traditional macroeconometric practice calling for new ways of conceiving the quantitative evaluation of economic policies. The Lucas Critique is considered, nowadays, as a fundamental principle of macroeconomic modeling (Woodford, 2003). The interpretation and the application of the Critique, however, represent still unsolved issues in economics (Chari et al., 2008). Even if the influence of Lucas's contribution cannot be neglected, something seems to be missing in the narrative: the reactions of the economists that were directly targeted by the Critique. Modeling practices of economic policy evaluation were not overthrown immediately after Lucas (1976), creating a divide between theoretical and applied macroeconomics (Brayton et al., 1977). The purpose of this paper is to study the reactions of the macroeconometricians criticized by Lucas. We focus especially on those macroeconometricians who worked on policy evaluation and who held an expertise position in governmental institutions. We categorize the different reactions to the Critique, in order to enrich the understanding of the evolution of modeling and expertise practices through the analysis of the debates–which have not yet been completely solved. In the first section, we propose a careful account of Lucas's argument and of some of the previous works anticipating the substantial outline of the Critique (like Frisch's notion of autonomy). Second, we bring our own interpretation of Lucas (1976). We think that we find two points of view in Lucas paper: a prescriptive one that tell you how to build a good macroeconometric model (it is the standard interpretation of the article); a positive one that relies on the fact that the Lucas critique could be seen as an attempt to explain a real-world phenomenon, the stagflation. Third, we classify the reactions of the Keynesian macroeconometricains following this line of interpretation. On the prescriptive side, the Keynesians protested against the New Classical solution to the Lucas critique (the use of the rational expectation hypothesis among other things). Klein, for instance, proposed an alternative microfoundational programme to study more empirically the formation of expectations. On the positive side, the Keynesians put into question the relevance of the Lucas Critique to explain the rise of both unemployment and inflation in the 1970s. They tried to test the impact of policy regime changes and of shifts in agents behaviour. According to us, in general, the explanation of the stagflation was elsewhere |
| Keywords: | History of macroeconomics; Keynesian economics; Lucas critique; Macroeconometrics; Rational expectations |
| JEL: | B22 B41 E60 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:15059&r=pke |
| By: | Sandra E. Black; Paul J. Devereux; Petter Lundborg; Kaveh Majlesi |
| Abstract: | Wealth is highly correlated between parents and their children; however, little is known about the extent to which these relationships are genetic or determined by environmental factors. We use administrative data on the net wealth of a large sample of Swedish adoptees merged with similar information for their biological and adoptive parents. Comparing the relationship between the wealth of adopted and biological parents and that of the adopted child, we find that, even prior to any inheritance, there is a substantial role for environment and a much smaller role for genetics. We also examine the role played by bequests and find that, when they are taken into account, the role of adoptive parental wealth becomes much stronger. Our findings suggest that wealth transmission is not primarily because children from wealthier families are inherently more talented or more able but that, even in relatively egalitarian Sweden, wealth begets wealth. |
| JEL: | G0 G11 J13 J62 |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21409&r=pke |
| By: | Lanzona, Leonardo Jr. A. |
| Abstract: | This paper argues that mainstreaming small and medium enterprises (SMEs) and social enterprises (SEs) into various international treaties will require the assumption of positive externalities, which markets cannot fully evaluate. To show this, the possible influence that SEs may have on SME development and, eventually, on employment will be discussed. SEs are small- and medium-sized commercial businesses providing valuable social service to customers and sustainable jobs and training for up to about 200 people. Their goal is to provide public goods to the communities, in the form of increased productivity and employment. What separates SEs from SMEs is that it addresses the social issues at the forefront. Through this paper, the importance of providing such public goods to SME development will be highlighted. This study shall provide inputs to the analytical framework for the Philippines' engagement in APEC under the priority theme of "Mainstreaming Small and Medium Enterprises and Employment Creation" and shall make concrete recommendations on how employment can be created through the formation of social enterprises or socially-inclusive companies. |
| Keywords: | poverty, Asia-Pacific Economic Cooperation (APEC), social enterprises (SEs), small and medium-scale enterprises |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:phd:rpseri:dp_2015-38&r=pke |
| By: | M. Mitka; K. Mumford; C. Sechel |
| Date: | 2015–07 |
| URL: | http://d.repec.org/n?u=RePEc:yor:yorken:15/10&r=pke |
| By: | Roy, Devesh; Munasib, Abdul; Guettabi, Mouhcine; Jordan, Jeffrey |
| Abstract: | Using Synthetic Control Method for comparative case studies, we estimate the causal impacts of the Massachusetts Health Care Reform (MHR) enacted in 2006 on the sources of insurance coverage. We find that MHR caused two main sources of expansions, viz., employer sponsored insurance (ESI) and Medicaid, with no evidence of crowding out. The expansion in ESI mirrors the economic cycles. The overall expansion in coverage of over half-a-million is distributed approximately 60:40 between ESI and Medicaid. Other sources of coverage such as direct purchase and Medicare, in a causal sense, were unaffected by MHR. |
| Keywords: | Massachusetts Health Reform, Insurance Mandate, Synthetic Control Method, Employer Provided Insurance, Medicaid, Medicare, Health Economics and Policy, Public Economics, I13, I18, R5, J38, |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea15:205581&r=pke |