Template-Type: ReDIF-Article 1.0
Author-Name: David Levine
Author-X-Name-First: David
Author-X-Name-Last: Levine
Title: Knowing and Acting: on uncertainty in economics
Abstract:
Economists who speak of uncertainty tend to attribute it to the
objective, external, world, which they sometimes describe as being
uncertain. However plausible this way of speaking about uncertainty, it
also causes problems. This essay explore some of these problems, which
have to do with what it means to attribute uncertainty to the state of the
world, particularly to bring in the flow of 'historical' time. The essay
advances the idea that uncertainty be understood not as an intrinsic
attribute of the flow of time, but in connection with a specific moment in
human history and the situation in which individuals find themselves at
that moment. The essay focuses attention on the status of the subject of
agent in economics, and the conditions under which knowing and acting are
possible. Special emphasis is placed on the implications for knowing and
acting on the distinction between traditional and modern society.
Journal: Review of Political Economy
Pages: 5-17
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000016
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000016
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:5-17
Template-Type: ReDIF-Article 1.0
Author-Name: David Andrews
Author-X-Name-First: David
Author-X-Name-Last: Andrews
Title: Sraffa on 'The Present Position of Economics'
Abstract:
Journal: Review of Political Economy
Pages: 19-36
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000017
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000017
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:19-36
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Kliman
Author-X-Name-First: Andrew
Author-X-Name-Last: Kliman
Title: Technological Disemployment in the Neoclassical Model
Abstract:
Journal: Review of Political Economy
Pages: 37-49
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000018
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000018
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:37-49
Template-Type: ReDIF-Article 1.0
Author-Name: Donald George
Author-X-Name-First: Donald
Author-X-Name-Last: George
Title: Self-management and Ideology
Abstract:
The paper discusses the ideological basis of self-management. It
considers whether self-management, as an economic system, is consistent
with ideologies of Marxism, Anarchism, and Democracy. It goes on to
consider the political question as to which groups are likely to oppose
and which to support the introduction of self-management into a modern
society.
Journal: Review of Political Economy
Pages: 51-62
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000019
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000019
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:51-62
Template-Type: ReDIF-Article 1.0
Author-Name: Ernesto Screpanti
Author-X-Name-First: Ernesto
Author-X-Name-Last: Screpanti
Title: Richard Murphy Goodwin, 1913-1996
Abstract:
Journal: Review of Political Economy
Pages: 63-66
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000020
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:63-66
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Nistico
Author-X-Name-First: Sergio
Author-X-Name-Last: Nistico
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 67-72
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000021
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000021
File-Format: text/html
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:67-72
Template-Type: ReDIF-Article 1.0
Author-Name: Henk Plasmeijer
Author-X-Name-First: Henk
Author-X-Name-Last: Plasmeijer
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 72-76
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000022
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000022
File-Format: text/html
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:72-76
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Holt
Author-X-Name-First: Richard
Author-X-Name-Last: Holt
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 76-78
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000023
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000023
File-Format: text/html
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:76-78
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Williams
Author-X-Name-First: Michael
Author-X-Name-Last: Williams
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 78-84
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000024
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000024
File-Format: text/html
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:78-84
Template-Type: ReDIF-Article 1.0
Author-Name: Young Back Choi
Author-X-Name-First: Young Back
Author-X-Name-Last: Choi
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 84-88
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000025
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000025
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:84-88
Template-Type: ReDIF-Article 1.0
Author-Name: Tidings Ndhlovu
Author-X-Name-First: Tidings
Author-X-Name-Last: Ndhlovu
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 88-91
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000026
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:88-91
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Gehrke
Author-X-Name-First: Christian
Author-X-Name-Last: Gehrke
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 91-96
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000027
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000027
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:91-96
Template-Type: ReDIF-Article 1.0
Author-Name: John Murray
Author-X-Name-First: John
Author-X-Name-Last: Murray
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 97-99
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000028
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000028
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:97-99
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Cristina Marcuzzo
Author-X-Name-First: Maria Cristina
Author-X-Name-Last: Marcuzzo
Title: Erratum
Abstract:
Journal: Review of Political Economy
Pages: 101-101
Issue: 1
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000029
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:1:p:101-101
Template-Type: ReDIF-Article 1.0
Author-Name: Hannah Kettler
Author-X-Name-First: Hannah
Author-X-Name-Last: Kettler
Title: The Emergence of Concentrated Ownership Structures in East Germany: the implications for enterprise restructuring
Abstract:
In the transitional economies of East and Central Europe, privatization
is widely considered essential for transforming the large state-owned
enterprises. However, eager to expose the public enterprises to 'hard
budget constraints', economists have neglected the importance of who the
owners are. Studies of ownership structures and post-privatization
restructuring in east Germany provide evidence that ownership matters for
transformation success. The adoption of west German institutions in the
east and the sale of state industrial property in concentrated shares to
'insider' investors seem to have created good conditions for the long-term
committed investments essential for the rebuilding of tangible and
intangible assets in east German enterprises. However, the control
structures of a sample of enterprises reveal a wide range of investment
strategies between types of corporate investors. Just as legal and
financial institutions set constraints on ownership structure, the
ownership structure sets constraints on the range of investment choices.
Whether committed investments occur will depend on constrained strategic
decisions of the new private owners.
Journal: Review of Political Economy
Pages: 117-149
Issue: 2
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000031
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000031
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:2:p:117-149
Template-Type: ReDIF-Article 1.0
Author-Name: Chris Doucouliagos
Author-X-Name-First: Chris
Author-X-Name-Last: Doucouliagos
Title: Unemployment and Workers' Control
Abstract:
The relationship between democratic workers' control and unemployment is
explored. When unemployment arises from labor market distortions, market
imperfections, or from information imperfections, labor-managed firms are
superior to capitalist firms. The firm's governance and decision making
structures then play an instrumental role in the level of unemployment.
However, when involuntary unemployment arises from effective demand
failures, then workers' control may not be able to maintain or to restore
full employment. In such cases, collective and coordinated efforts are
needed to reduce the level of involuntary unemployment.
Journal: Review of Political Economy
Pages: 151-179
Issue: 2
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000032
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000032
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:2:p:151-179
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Besomi
Author-X-Name-First: Daniele
Author-X-Name-Last: Besomi
Title: Statics and dynamics in harrod's trade cycle
Abstract:
Journal: Review of Political Economy
Pages: 181-209
Issue: 2
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000033
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000033
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:2:p:181-209
Template-Type: ReDIF-Article 1.0
Author-Name: J. Barkley Rosser
Author-X-Name-First: J. Barkley
Author-X-Name-Last: Rosser
Author-Name: Marina Vchershnaya Rosser
Author-X-Name-First: Marina Vchershnaya
Author-X-Name-Last: Rosser
Title: Schumpeterian Evolutionary Dynamics and the Collapse of Soviet-Bloc Socialism
Abstract:
The problem of the collapse of socialism within the former Soviet bloc is
examined from the perspective of a Schumpeterian view of technological
change and discontinuous evolutionary dynamics. The Schumpeterian
mechanism of 'creative destruction' was frustrated in the traditional
socialist system with revolutionary technological changes tending not to
be adopted. In largely capitalist economies Schumpeter saw these as being
adopted in clusters at critical points in long waves, but planned
socialism substantially reduces such cycles for output, if not quite as
much for investment. The crisis of Soviet-style socialism came with the
attempt to leap to the higher 'technique cluster' of information
technologies and broke down in the effort to do so as political changes
reflected conflict between the production requirements of that technology
with the central control of the planned socialist system.
Journal: Review of Political Economy
Pages: 211-223
Issue: 2
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000034
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000034
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:2:p:211-223
Template-Type: ReDIF-Article 1.0
Author-Name: Heather Boushey
Author-X-Name-First: Heather
Author-X-Name-Last: Boushey
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Title: The Economic Contributions of David M. Gordon
Abstract:
Throughout his too brief career, David Gordon made many contributions to
economics. His social structure of accumulation model sought to explain
the economic performance of the US based upon whether institutional
structures are conducive to profitability and growth. His work in labour
economics sought to explain slow productivity and wage growth in the US.
And his work in macroeconomics sought to compare and test different
macroeconometric models. Throughout all his work, David sought to develop
a radical alternative to mainstream economics and to build enduring
radical institutions.
Journal: Review of Political Economy
Pages: 225-245
Issue: 2
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000035
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000035
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:2:p:225-245
Template-Type: ReDIF-Article 1.0
Author-Name: David Andrews
Author-X-Name-First: David
Author-X-Name-Last: Andrews
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 247-251
Issue: 2
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000036
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000036
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:2:p:247-251
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Holt
Author-X-Name-First: Richard
Author-X-Name-Last: Holt
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 251-252
Issue: 2
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000037
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000037
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:2:p:251-252
Template-Type: ReDIF-Article 1.0
Author-Name: Mozaffar Qizilbash
Author-X-Name-First: Mozaffar
Author-X-Name-Last: Qizilbash
Title: Needs, Incommensurability and Well-being
Abstract:
Some have argued for the priority of needs in moral and development
theory, on the grounds that people have conflicting and incommensurable
values and conceptions of the good. In this paper, I concentrate on one
version of this view, that due to John Rawls. Rawls' view is that a
person's advantage should be evaluated in terms of certain primary goods
which are citizens' needs. I outline a variation on James Griffin's
account of well-being, which involves certain values that make any human
life better—prudential values. I argue that such values are
commensurable, and that the account is consistent with pluralism. The
discussion supports and helps us to understand various criticisms of
Rawls. It also suggests that one argument for the priority of needs in
development theory is invalid.
Journal: Review of Political Economy
Pages: 261-276
Issue: 3
Volume: 9
Year: 1997
X-DOI: 10.1080/751245295
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:3:p:261-276
Template-Type: ReDIF-Article 1.0
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: Keynes's Finance Motive: a re-assessment. Credit, liquidity preference and the rate of interest
Abstract:
This paper attempts to reconcile Keynes's post-General Theory writings on
the finance motive with the horizontalist approach, as advocated by Moore,
Lavoie, Kaldor and many proponents of the Franco-Italian Circuit school.
It is argued here that, as Keynes felt himself lsquo;gradually getting
into an outside positionrsquo; with respect to the General
Theory—which he saw as a transition away from classical
theory—he came to adopt many aspects of the horizontalist position
as well as that of the circuit approach, including the exogeneity of the
rate of interest and the view that rates do not necessarily increase
during economic expansions. Keynes's post-General Theory writings
therefore reject the theory of liquidity preference of the General Theory.
It is suggested that, in their attempt to construct an alternative to
orthodox monetary thought, post-Keynesians should abandon the confines of
the General Theory, and focus instead on the views Keynes developed after
the General Theory.
Journal: Review of Political Economy
Pages: 277-293
Issue: 3
Volume: 9
Year: 1997
X-DOI: 10.1080/751245296
File-URL: http://www.tandfonline.com/doi/abs/10.1080/751245296
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:3:p:277-293
Template-Type: ReDIF-Article 1.0
Author-Name: JesUs Zaratiegui
Author-X-Name-First: JesUs
Author-X-Name-Last: Zaratiegui
Title: Twin Brothers in Marshallian Thought: Knowledge and organization
Abstract:
The development of Marshallian thought in the realm of business theory
has contributed to the appearance of a new branch of economic theory:
Industrial Organization, as pioneered by Stigler. This theory relies, to a
large degree, on the idea that a mutually beneficial relationship is
produced in the industrial environment between the creation of new
information and the organizational improvement of related firms. This
symbiosis between knowledge and organization is the driving principle
behind the 'industrial districts' which Marshall announced a century ago,
and is most recently embodied in the contemporary industrial clusters such
as Silicon Valley. However, Marshall distances himself from his
equilibrium model when dealing with the issues of obtaining and managing
information within the firm itself, creating a weak link in his own
argument.
Journal: Review of Political Economy
Pages: 295-312
Issue: 3
Volume: 9
Year: 1997
X-DOI: 10.1080/751245297
File-URL: http://www.tandfonline.com/doi/abs/10.1080/751245297
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:3:p:295-312
Template-Type: ReDIF-Article 1.0
Author-Name: Clive Beed
Author-X-Name-First: Clive
Author-X-Name-Last: Beed
Author-Name: Cara Beed
Author-X-Name-First: Cara
Author-X-Name-Last: Beed
Title: Realism and a Christian Perspective on Economics
Abstract:
Beed & Beed (1996a) argued that a Christian philosophy and methodology
provide an alternative mode of thinking about economic matters than is
provided by secular economics. The Christian view is shown here to be a
form of realism, having affinity with the metaphysical realism propounded
by Trigg (1989, 1993), but differing from the critical realism of Bhaskar
(1989, 1994) and others, advocated by Lawson (1997) in economics. A brief
history and outline of realism are presented so it is clear what is being
compared with the Christian position. This is followed by comparison of
Christian realism with metaphysical and critical realism. Some
illustrations of how Christian realism might be applied to economic
questions are developed to show how it differs from the way in which
secular forms of realism might analyse the same questions. Applying
Christian realism to socio-economic matters requires an interdependent and
normative approach in the context of a given metaphysical worldview. It
takes the analysis of economic questions into territory unfamiliar to
secular economics and which the latter may well reject as not being
economics.
Journal: Review of Political Economy
Pages: 313-333
Issue: 3
Volume: 9
Year: 1997
X-DOI: 10.1080/751245298
File-URL: http://www.tandfonline.com/doi/abs/10.1080/751245298
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:3:p:313-333
Template-Type: ReDIF-Article 1.0
Author-Name: Emily Northrop
Author-X-Name-First: Emily
Author-X-Name-Last: Northrop
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 351-358
Issue: 3
Volume: 9
Year: 1997
X-DOI: 10.1080/751245299
File-URL: http://www.tandfonline.com/doi/abs/10.1080/751245299
File-Format: text/html
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:3:p:351-358
Template-Type: ReDIF-Article 1.0
Author-Name: Wendy Harcourt
Author-X-Name-First: Wendy
Author-X-Name-Last: Harcourt
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 358-360
Issue: 3
Volume: 9
Year: 1997
X-DOI: 10.1080/751245300
File-URL: http://www.tandfonline.com/doi/abs/10.1080/751245300
File-Format: text/html
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:3:p:358-360
Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence Moss
Author-X-Name-First: Lawrence
Author-X-Name-Last: Moss
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 360-368
Issue: 3
Volume: 9
Year: 1997
X-DOI: 10.1080/751245301
File-URL: http://www.tandfonline.com/doi/abs/10.1080/751245301
File-Format: text/html
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:3:p:360-368
Template-Type: ReDIF-Article 1.0
Author-Name: Andrej Susjan
Author-X-Name-First: Andrej
Author-X-Name-Last: Susjan
Author-Name: Marko Lah
Author-X-Name-First: Marko
Author-X-Name-Last: Lah
Title: Inflation in the Transition Economies: the post-Keynesian view
Abstract:
The article deals with the relevance of post-Keynesian theory of conflict
inflation for the transition economies. While the conflict inflation
theory does not have any explanatory tower for the performance of
socialist economies and for their immediate post-socialist behaviour. it
becomes relevant in later phases of their transition. The reason lies in
the development of labour market institutions and in the establishment of
collective bargaining. The inflation rate is determined by the real wage
aspiration gap and by the bargaining power of the capital and labour side.
The pervasive role of the state in setting target wage guidelines and a
weak position of employers' organizations and trade unions as typical
features of transitional tripartism lead to a relatively low rate of
conflict inflation. However, this type of inflation is not responsive to
monetarist anti-inflationary measures, which successfully cured the
hyperinflationary tendencies in early transitional stages.
Conflicting-claims inflation requires a more delicate approach. based on
incomes policy measures and growth incentives.
Journal: Review of Political Economy
Pages: 381-393
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000038
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000038
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:4:p:381-393
Template-Type: ReDIF-Article 1.0
Author-Name: John Smithin
Author-X-Name-First: John
Author-X-Name-Last: Smithin
Title: An Alternative Monetary Model of Inflation and Growth
Abstract:
This paper presents a simple model of a monetary economy in which
production takes time and is financed by loans from financial
intermediaries such as banks. The model is an example of a pure credit
economy, but does not contain the contentious Wicksellian construct of a
natural rate of interest. Rather, the main determining factor of economic
outcomes is the struggle over income distribution between finance
(Keynes's rentiers), industry, and labour. The model yields a number of
macroeconomic results, some of which are sharply at variance with those
obtained in more orthodox or mainstream, models. In particular, a
structural long-term Phillips-curve type relationship emerges in
inflation-growth space, for some demand-side and monetary policy changes.
In addition, the model is also able to identify other circumstances in
which the opposite cases of either stagflation or non-inflationary growth
can occur.
Journal: Review of Political Economy
Pages: 395-409
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000039
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:4:p:395-409
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Williams
Author-X-Name-First: Michael
Author-X-Name-Last: Williams
Author-Name: Geert Reuten
Author-X-Name-First: Geert
Author-X-Name-Last: Reuten
Title: The Contradictory Imperatives of Welfare and Economic Policy in the Mixed Economy
Abstract:
The abstract basis of the polity-economy relation is examined in order to
comprehend the current economic limitations upon feasible politics. It is
argued that contemporary mixed-economies have a deontological
(rights/obligations based) rather than a consequentialist (outcomes-based)
legitimation, expressing the conflict between the imperatives of the
market-regulated capitalist economy and free will. Yet the state has to be
concerned with the right to the particular existence of individuals,
neglected by the logic of the economy. The mixed economy is thus shown to
he contradictory, and policy to be concerned with the management of the
manifestations of contradiction that cannot he overcome without radical
social transformation. The contradictions of economic and social policy
are shown to manifest the domination of the value form over the effective
allocation of resources to the production and distribution of useful
objects in the capitalist economy. Oft alluded to but rarely argued for,
both the assumption of the separation of polity and economy and the
cyclical development of policy over time can then be accounted for. The
paper explains the inadequacies of rational choice theories of policy with
a narrowly instrumental view of human agency—both the 'new' welfare
economics and the 'new political economy'.
Journal: Review of Political Economy
Pages: 411-431
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000040
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Template-Type: ReDIF-Article 1.0
Author-Name: David Prychitko
Author-X-Name-First: David
Author-X-Name-Last: Prychitko
Title: Expanding the Anarchist Range: a critical reappraisal of Rothbard's contribution to the contemporary theory of anarchism
Abstract:
Anarchism is usually conceived as a libertarian rejection of the state
combined with a socialist rejection of the market. The ideal anarchist
system would be self-managed and comprehensively planned. Murray Rothbard,
a member of the Austrian School of economics, disagreed lie argued that
anarchism would work only as a free-market capitalist economy without a
state. The present paper examines, and rejects, Rothbard's
welfare-economics case against the state and also his theoretical case
against self-managed enterprise, Rothbardian, right-wing anarchism
correctly argues that contemporary left-wing anarchist theory (best
represented by Murray Bookchin) is flawed because it fails to recognize
the 'knowledge problem' that occurs when markets for the means of
production are abolished. But Rothbard's corresponding call for the
necessity of 'anarcho-capitalism' does not persuade. While the present
paper affirms, with Rothbard, that anarchism must be market-based, it also
seeks to expand the range of firms that operate within a market-anarchist
system, from the capitalist enterprises championed by the Right to the
self-managed and cooperative enterprises championed by the Left.
Journal: Review of Political Economy
Pages: 433-455
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000041
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Template-Type: ReDIF-Article 1.0
Author-Name: Alfredo Saad-Filho
Author-X-Name-First: Alfredo
Author-X-Name-Last: Saad-Filho
Title: Concrete and Abstract Labour in Marx's Theory of Value
Abstract:
This paper presents an alternative reading of Marx's theory of value,
which overcomes the dichotomy between production and circulation that
characterizes several other approaches. This reading recognises that the
subject of Capital is the capitalist economy, and it considers the
relationship between labour and value from the viewpoint of the
normalisation, synchronisation and homogenisation of labour. The formal
possibility of existence of valueless money is discussed.
Journal: Review of Political Economy
Pages: 457-477
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000042
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:4:p:457-477
Template-Type: ReDIF-Article 1.0
Author-Name: J. R. Presley
Author-X-Name-First: J. R.
Author-X-Name-Last: Presley
Author-Name: J. G. Sessions
Author-X-Name-First: J. G.
Author-X-Name-Last: Sessions
Title: Real Business Cycles: sectoral versus aggregate shocks and the elasticity of demand for income in terms of work effort
Abstract:
Real business cycle theory asserts that technological shocks are a major
root cause of cyclical fluctuation, but has yet to explain how a sector
technological change impacts upon other sectors of the economy to produce
aggregate fluctuations in output. This paper suggest that an appropriate
analytical framework with which to address the issue may be derived from
the long forgotten concept of the elasticity of demand for income in terms
of work effort. Our contention is that the concept could be usefully
employed by contemporary real business cycle theorists to explain the
macroeconomic repercussions of sectoral changes.
Journal: Review of Political Economy
Pages: 479-483
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000043
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:4:p:479-483
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Williams
Author-X-Name-First: Michael
Author-X-Name-Last: Williams
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 485-493
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000044
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:4:p:485-493
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Baker
Author-X-Name-First: Peter
Author-X-Name-Last: Baker
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 493-496
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000045
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000045
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:4:p:493-496
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Donoghue
Author-X-Name-First: Mark
Author-X-Name-Last: Donoghue
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 496-501
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000046
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259700000046
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Handle: RePEc:taf:revpoe:v:9:y:1997:i:4:p:496-501
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 501-506
Issue: 4
Volume: 9
Year: 1997
X-DOI: 10.1080/09538259700000047
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Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Pivetti
Author-X-Name-First: Massimo
Author-X-Name-Last: Pivetti
Title: Monetary versus Political Unification in Europe. On Maastricht as an exercise in 'vulgar' political economy
Abstract:
The original conceptions of the EMU project widely recognized that
removal of capital controls and centralization of monetary policy in
Europe could but be envisaged at the end of a more advanced process of
political integration. The Delors report and the Maastricht Treaty
departed markedly from this view, which has been replaced by a concept of
monetary integration as a 'catalyst' or 'stepping stone' to political
integration. Such a concept is criticized in the present article and the
contention is put forward that capital control, by allowing a country to
have the appropriate rate of interest, may allow it to achieve such goals
as a more equitable distribution of income, high levels of employment and
continuous improvements in the standard of living, as well as a low rate
of inflation. Only if these goals ceased to represent national concerns
and became instead overall European concerns, would it make sense for
individual countries not to struggle to preserve their monetary and fiscal
autonomy. But undiluted support for a regime of free international capital
mobility is not going to be easily disposed of, unless eventual
emancipation from current orthodoxy goes so far as to question some of its
very foundations.
Journal: Review of Political Economy
Pages: 5-26
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000045
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Template-Type: ReDIF-Article 1.0
Author-Name: Christof Ruhl
Author-X-Name-First: Christof
Author-X-Name-Last: Ruhl
Author-Name: David Laidler
Author-X-Name-First: David
Author-X-Name-Last: Laidler
Title: Perspectives on Modern Macroeconomic Theory and Its History: an interview with David Laidler
Abstract:
David Laidler's writings on monetary theory and policy are notable not
only for their clarity and insight but also for their appreciation of the
relevance of hte history of our discipline to current debates. The
following interview surveys the field of modern macroeconomics from the
perspective of one of its most thoughtful practitioners. The interview was
conducted at the University of Western Ontario on 28 November and 21
Decemberr 1995.
Journal: Review of Political Economy
Pages: 27-56
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000046
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Template-Type: ReDIF-Article 1.0
Author-Name: G. Michael Winkler
Author-X-Name-First: G. Michael
Author-X-Name-Last: Winkler
Author-Name: Eva Pichler
Author-X-Name-First: Eva
Author-X-Name-Last: Pichler
Title: Wage Parity and Patterns of Unionization
Abstract:
This paper is concerned with the microfoundation of union structure. We
investigate whether two (groups of) workers within the same firm do better
by forming separate unions, or by forming an encompassing union. Our main
assumption is that 'wage parity' holds: the firm knows ex ante that it
cannot pay different wages to equal workers. Therefore, wage concessions
to one group of workers carry over to the other group. We show that in
this case, workers will always form the encompassing union. This result is
in sharp contrast to the work of Horn & Wolinsky (1988), who investigated
the same question yet assumed the possibility of 'wage discrimination':
firms may pay different wages to workers. Their main result states that
the structure of unionization depends on the qualities of the production
function: if workers are complements, they benefit from forming separate
unions. If they are substitutes, higher wages are obtained in an
encompassing union. Our results deviate from Horn & Wolinsky's (1988)
findings as we reject the possibility that the firm pays different wages
to equal workers. With 'wage parity', an externality arises that weakens
the separate union's bargaining power: if one groups asks for higher
wages, the firm can argue that its position in negotiations with the other
group would be prejudiced. As a consequence, workers are never worse off
by forming the encompassing union.
Journal: Review of Political Economy
Pages: 57-71
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000047
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:57-71
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Keen
Author-X-Name-First: Steve
Author-X-Name-Last: Keen
Title: Answers (and Questions) for Sraffians (and Kaleckians)
Abstract:
Steedman's 'Questions for Kaleckians' is rightly critical of the lack of
attention paid by Kaleckian economists to the input-output nature of
production. However, his conclusions about Kaleckian mark-up pricing and
the irrelevance of dynamics are incorrect, for three reasons. First, his
rendition of a Kaleckian model with constant mark-ups is only
conditionally stable. Secondly, there is ample evidence that Kaleckian
mark-ups should vary inversely with sectoral profitability. Thirdly, given
variable mark-ups, and the other factors which must be considered in a
general multisectoral dynamical analysis of capitalism, it is almost
inevitable that the fixed points of such a system will be unstable.
Long-run conditions are therefore not equilibrium ones, and limitations on
mark-ups, etc, derived from equilibrium analysis are not applicable. The
Kaleckian focus upon the process of price setting is therefore justified
in both the short and long term, although this analysis should, as
Steedman asserts, be carried out in the context of explicitly
multisectoral models.
Journal: Review of Political Economy
Pages: 73-87
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000048
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:73-87
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Prasch
Author-X-Name-First: Robert
Author-X-Name-Last: Prasch
Title: Corporate Strategy and the American Standard of Living: reviewing David Gordon's Fat and Mean
Abstract:
Journal: Review of Political Economy
Pages: 89-96
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000049
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:89-96
Template-Type: ReDIF-Article 1.0
Author-Name: Tim Koechlin
Author-X-Name-First: Tim
Author-X-Name-Last: Koechlin
Title: Fat, Mean and Profitable
Abstract:
Journal: Review of Political Economy
Pages: 97-106
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000050
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:97-106
Template-Type: ReDIF-Article 1.0
Author-Name: Dova Poma
Author-X-Name-First: Dova
Author-X-Name-Last: Poma
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 107-110
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000051
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:107-110
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Rider
Author-X-Name-First: Christine
Author-X-Name-Last: Rider
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 110-114
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000052
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:110-114
Template-Type: ReDIF-Article 1.0
Author-Name: Sheila Dow
Author-X-Name-First: Sheila
Author-X-Name-Last: Dow
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 114-117
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000053
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:114-117
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Mongiovi
Author-X-Name-First: Gary
Author-X-Name-Last: Mongiovi
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 117-120
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000054
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:117-120
Template-Type: ReDIF-Article 1.0
Author-Name: William Brown
Author-X-Name-First: William
Author-X-Name-Last: Brown
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 120-123
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000055
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:120-123
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Dyer
Author-X-Name-First: Alan
Author-X-Name-Last: Dyer
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 123-126
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000056
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000056
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:123-126
Template-Type: ReDIF-Article 1.0
Author-Name: Ingrid Kubin
Author-X-Name-First: Ingrid
Author-X-Name-Last: Kubin
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 126-127
Issue: 1
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000057
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:1:p:126-127
Template-Type: ReDIF-Article 1.0
Author-Name: J. S. L. McCombie
Author-X-Name-First: J. S. L.
Author-X-Name-Last: McCombie
Title: 'Are There Laws of Production': an assessment of the early criticisms of the
Abstract:
This paper traces the development of the Cobb-Douglas production function
from its inception in 1927 and critically assesses its early hostile
reception. Further econometric evidence is also presented on these issues.
Some of the criticisms were easily dealt with, but other more serious ones
remained and, although equally relevant today, have been all but
forgotten. The original regressions of Cobb and Douglas using time-series
data produced some spectacularly good fits, with the estimates of the
output elasticities being virtually identical to the relevant factor
shares. (This was erroneously argued by Douglas, and others following him,
as providing strong empirical support for the neoclassical marginal
productivity theory of distribution.) It is shown that these results
collapse once account is taken of the existence of either outliers or
technical change, or both. There is some evidence that Douglas himself
realised this and his emphasis subsequently shifted to cross-industry
regressions. However, an important critique by Phelps Brown in 1957,
formalised later by Simon & Levy, demonstrated that all that was being
estimated was an accounting identity. This criticism was later generalised
by Shaikh to time-series estimations. These critiques have been largely
brushed aside and ignored in the literature. If they had not been, there
would perhaps be a greater appreciation of just how flimsy is the
theoretical basis of the production function.
Journal: Review of Political Economy
Pages: 141-173
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000023
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:141-173
Template-Type: ReDIF-Article 1.0
Author-Name: Ralf Eriksson
Author-X-Name-First: Ralf
Author-X-Name-Last: Eriksson
Title: Was Keynes a Realist?
Abstract:
Lawson (1989a) has interpreted Keynes as a philosophical realist,
adhering to the view that the economy has a constant inner structure.
Against this it is claimed below that, although Keynes speaks about
realism, it is not in this sense, but in the common sense way of referring
to actually observable entities of an economic model. In addition, it can
be shown that Keynes's views can be interpreted as
instrumentalist—he emphasises characteristics such as usefulness
and convenience, besides and instead of truth. Thus, truth and truthlike
concepts do not, in Keynes's thinking, have the paramount position that
they have in realist philosophy.
Journal: Review of Political Economy
Pages: 175-197
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000024
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000024
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:175-197
Template-Type: ReDIF-Article 1.0
Author-Name: Dimitri Papadimitriou
Author-X-Name-First: Dimitri
Author-X-Name-Last: Papadimitriou
Author-Name: L. Randall Wray
Author-X-Name-First: L. Randall
Author-X-Name-Last: Wray
Title: The Economic Contributions of Hyman Minsky: varieties of capitalism and institutional reform
Abstract:
The work of Hyman Minsky represents an important link between Post
Keynesians and Institutionalists. This essay begins with a brief summary
of Minsky's early work, including his well-known financial instability
hypothesis and his policy proposals designed to reform the financial
system. It then moves on to discuss other proposals that are less well
known, and developed after the publication of his Stabilizing an Unstable
Economy (1986) book. One of them in all the work of Minsky is his demand
that theory be institution-specific. Because there are a variety of
possible types of economies, theory must be appropriate to the specific
economy under analysis. His analysis concerned an evolving, developed,
big-government capitalist economy with complex and long-lived financial
arrangements. His policy recommendations were designed to promote a
successful, democratic form of capitalism given these financial
arrangements. These policies would have to 'constrain' instability through
creation of institutional 'ceilings and floors' while at the same time
addressing the behavioral changes induced by reduction of instability. The
policies would also have to promote rising living standards, expansion of
democratic principles, and enhancement of security for the average
household.
Journal: Review of Political Economy
Pages: 199-225
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000025
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:199-225
Template-Type: ReDIF-Article 1.0
Author-Name: Warren Samuels
Author-X-Name-First: Warren
Author-X-Name-Last: Samuels
Title: On the Labour Theory of Value as a Theory of Value: a note
Abstract:
Journal: Review of Political Economy
Pages: 227-232
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000026
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000026
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:227-232
Template-Type: ReDIF-Article 1.0
Author-Name: Kamran Nayeri
Author-X-Name-First: Kamran
Author-X-Name-Last: Nayeri
Title: The World Economic and Social Situation on the Eve of the 21st Century: a review essay
Abstract:
This review essay offers a critical assessment of the world economic and
social situation through an examination of two recent books by the United
Nations. It outlines the contours of the world economic crisis and makes
some suggestions about its probable causes. Next, the policy responses to
these conditions are critically examined. Finally, it is argued that
social progress presupposes economic growth, but economic growth is not a
sufficient condition for social progress.
Journal: Review of Political Economy
Pages: 233-244
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000027
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000027
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:233-244
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Gehrke
Author-X-Name-First: Christian
Author-X-Name-Last: Gehrke
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 245-251
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000028
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:245-251
Template-Type: ReDIF-Article 1.0
Author-Name: William Oliver Coleman
Author-X-Name-First: William Oliver
Author-X-Name-Last: Coleman
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 251-252
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000029
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000029
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:251-252
Template-Type: ReDIF-Article 1.0
Author-Name: David Andrews
Author-X-Name-First: David
Author-X-Name-Last: Andrews
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 252-255
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000030
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000030
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:252-255
Template-Type: ReDIF-Article 1.0
Author-Name: F. Cameron Maclachlan
Author-X-Name-First: F. Cameron
Author-X-Name-Last: Maclachlan
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 255-259
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000031
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000031
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:255-259
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dunn
Author-X-Name-First: Stephen
Author-X-Name-Last: Dunn
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 259-264
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000032
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000032
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:259-264
Template-Type: ReDIF-Article 1.0
Author-Name: Colin Rogers
Author-X-Name-First: Colin
Author-X-Name-Last: Rogers
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 264-269
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000033
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000033
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:264-269
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Perelman
Author-X-Name-First: Michael
Author-X-Name-Last: Perelman
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 269-271
Issue: 2
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000034
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000034
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:2:p:269-271
Template-Type: ReDIF-Article 1.0
Author-Name: Man-Seop Park
Author-X-Name-First: Man-Seop
Author-X-Name-Last: Park
Title: The Cambridge Theory of Income Distribution: a partial critique
Abstract:
In a multi-sector setting, the Cambridge theory of income
distribution—the argument that the condition of accumulation
determines normal income distribution—requires the assumption of
balanced growth for its unambiguous meaning. But consideration of
investment behaviour at the sectoral level, without assuming identical
sectoral investment behaviour, reveals incompatibility between balanced
growth at normal utilisation and uniformity in the rates of profit. This
result supplements some criticisms recently made by Sraffian authors.
Journal: Review of Political Economy
Pages: 277-298
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000035
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:277-298
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin Hoover
Author-X-Name-First: Kevin
Author-X-Name-Last: Hoover
Author-Name: Kevin Salyer
Author-X-Name-First: Kevin
Author-X-Name-Last: Salyer
Title: Technology Shocks or Coloured Noise? Why real-business-cycle models cannot explain actual business cycles
Abstract:
Typically real-business-cycle models are assessed by their ability to
mimic the covariances and variances of actual business cycle data.
Recently, however, advocates of RBC models have used them to fit the
historical path of real GDP using the Solow residual as a driving process.
We demonstrate that the success of RBC models at matching historical GDP
data does not confirm the validity of RBC models. Through simulations we
demonstrate that the Solow residual does not carry useful information
about technology shocks and that the RBC model does not add incremental
information about GDP. RBC models fit historical GDP data entirely because
the Solow Residual is itself just a noisy measure of GDP.
Journal: Review of Political Economy
Pages: 299-327
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000036
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:299-327
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Palley
Author-X-Name-First: Thomas
Author-X-Name-Last: Palley
Title: Macroeconomics with Conflict and Income Distribution
Abstract:
This paper presents a Post Keynesian model explaining the determination
of employment and income distribution. A major innovation is the
incorporation of the insider-outsider description of labor markets into a
macro framework. This introduces power and conflict into the macro
process. Microeconomic bargaining considerations are central to
macroeconomic outcomes. Endogenous government deflicits can sustain
profitability in an otherwise contractionary environment. Firm level
profit maximization may not produce macroeconomic profit maximization
because firms fail to internalize the effects of economic activity on
profitability.
Journal: Review of Political Economy
Pages: 329-342
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000037
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:329-342
Template-Type: ReDIF-Article 1.0
Author-Name: David Levine
Author-X-Name-First: David
Author-X-Name-Last: Levine
Title: Justice and Economic Democracy
Abstract:
This paper explores the relationship between justice and democracy with
special reference to economic democracy. Those who favor greater economic
democracy sometimes equate justice with democracy, seeing in greater
democracy the key to a more just society. The author presents a critique
of this idea, arguing that greater democracy does not mean greater
justice, but can easily lead in the opposite direction. The equation of
justice with democracy is often linked to communitarian ideals that
subordinate the individual to the group, and to concepts of politics that
blur the distinction between private and public, political and economic.
The paper explores the significance of group life for economic justice,
the concept of politics appropriate to normative theory in political
economy, and the problematic ideal of government that derives from
equating justice, democracy and government. The paper considers both
workplace democracy and the democratization of economic policy making.
Journal: Review of Political Economy
Pages: 343-363
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000038
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:343-363
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Author-Name: Elizabeth Durbin
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Durbin
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 365-371
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000039
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:365-371
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Author-Name: Gregory Nowell
Author-X-Name-First: Gregory
Author-X-Name-Last: Nowell
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 372-374
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000040
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000040
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:372-374
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Hants Mathews
Author-X-Name-First: Peter Hants
Author-X-Name-Last: Mathews
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 374-380
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000041
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000041
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:374-380
Template-Type: ReDIF-Article 1.0
Author-Name: Nancy Dubose
Author-X-Name-First: Nancy
Author-X-Name-Last: Dubose
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 380-382
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000042
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000042
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:380-382
Template-Type: ReDIF-Article 1.0
Author-Name: Jeff Konz
Author-X-Name-First: Jeff
Author-X-Name-Last: Konz
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 382-387
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000043
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000043
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:382-387
Template-Type: ReDIF-Article 1.0
Author-Name: Lynn Turgeon
Author-X-Name-First: Lynn
Author-X-Name-Last: Turgeon
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 387-390
Issue: 3
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000044
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000044
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:3:p:387-390
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Mongiovi
Author-X-Name-First: Gary
Author-X-Name-Last: Mongiovi
Title: Introduction
Abstract:
Journal: Review of Political Economy
Pages: 397-397
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000059
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:397-397
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Ciccarone
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Ciccarone
Title: Prices and Distribution in a Sraffian Credit Economy
Abstract:
Sraffa's suggestion regarding the monetary determination of the rate of
profits raises two fundamental questions addressed by this paper: (i) can
the money rates of interest be envisaged as variables set by the financial
system independently of the real sector of the economy? (ii) How can they
determine the general rate of profits and so allow for the determination
of natural prices and income distribution? To elaborate on the intuition
that the competitive process must link the rate of profits earned in the
financial sector (and ruled by the intermediaries' margin) to that earned
in the production sector, a long-period credit economy is constructed.
Unlike previous attempts, the system of equations describing such an
economy leaves Sraffa's (1960) original price equations unaffected. If
certain fairly unrestrictive conditions are met, the solution of this
system is shown to exist and to be economically meaningful, hence
supporting Sraffa's hint that the rates of interest are free to determine
the rate of profits outside of the system of production.
Journal: Review of Political Economy
Pages: 399-413
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000060
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000060
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:399-413
Template-Type: ReDIF-Article 1.0
Author-Name: Heinz Kurz
Author-X-Name-First: Heinz
Author-X-Name-Last: Kurz
Author-Name: Neri Salvadori
Author-X-Name-First: Neri
Author-X-Name-Last: Salvadori
Title: Reverse Capital Deepening and the Numeraire: a note
Abstract:
This note discusses the implication of reverse capital deepening for
neoclassical theory, placing special emphasis on the role of the
numeraire. It is shown that under certain assumptions, specified in the
note, a supply function of capital can be built up that is independent of
the demand function. The supply of capital is given in terms of the
consumption unit. Reverse capital deepening is reflected in upward sloping
segments of the corresponding demand function. A change in numeraire,
while generally affecting the shape of the demand function, does not
affect the stability property of equilibrium, because it will also affect
the shape of the supply function. Hence, what matters is not whether the
demand function is upward sloping or not, but whether it cuts the supply
function from above or from below. This property, however, is preserved
with a change in the numeraire.
Journal: Review of Political Economy
Pages: 415-426
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000061
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000061
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:415-426
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Bidard
Author-X-Name-First: Christian
Author-X-Name-Last: Bidard
Author-Name: Guido Erreygers
Author-X-Name-First: Guido
Author-X-Name-Last: Erreygers
Title: Sraffa and Leontief on Joint Production
Abstract:
This paper shows that results obtained in the Sraffian literature on
joint production are relevant for input—output economists working
in the tradition of Leontief. We concentrate upon the 'adjustment'
property, i.e. the ability of a system to cope with any variation in final
demand. We identify a number of systems which possess the adjustment
property, with special attention to economies using fixed capital goods.
Journal: Review of Political Economy
Pages: 427-446
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000062
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000062
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:427-446
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Lager
Author-X-Name-First: Christian
Author-X-Name-Last: Lager
Title: On the Notion of the Rate of Profit
Abstract:
This paper aims at a clarification of the classical notion of the rate of
profit with respect to the process of gravitation towards long period
positions. It is demonstrated that some existing definitions of that rate,
in particular 'synchronic' rates of profit which are based on a
revaluation of either the costs of production or of the value of outputs,
do not exhibit the relevant feature of a measure for the profitability of
a production process as they fail to serve as an indicator for diverting
liquid funds from less to more profitable employments. It is argued that
all elements of profits or losses including those which result from the
expected revaluation of capital or outputs respectively are to be taken
into account. Hence the 'diachronic' rate of profit is the proper measure
which guides the decisions of producers or capitalists to utilise one or
another method of production or to withdraw capital from less profitable
employments and invest into promising activities. That rate is uniform in
any arbitrage equilibrium, and is not a distinguishing characteristic of
long-run positions. The definition of the rate of profit is conditional on
individual expectations of future prices and is therefore either not
operable or is not general.
Journal: Review of Political Economy
Pages: 447-458
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000063
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:447-458
Template-Type: ReDIF-Article 1.0
Author-Name: Graham White
Author-X-Name-First: Graham
Author-X-Name-Last: White
Title: Disequilibrium Pricing and the Sraffa—Keynes Synthesis
Abstract:
Research over the last 10 to 15 years on the possibility of a
Sraffa—Keynes synthesis has, in part, been concerned with
clarifying the concept of a normal rate of capacity utilization, as well
as its role in price determination and its interdependence with relative
prices. This paper examines some of the key implications of the
interdependence between the normal rate of capacity utilization and
relative prices for disequilibrium pricing, specifically, target return
pricing. In particular, the question arises as to consistency between the
idea of a normal rate of utilization interpreted as a profit-maximizing
choice by producers and the notion of a predetermined target rate of
return. Interestingly, this issue of consistency raises the possibility
that far from conceiving of the Post-Keynesian and Sraffian approaches to
price theory as incompatible, they may instead be seen more appropriately
as representing an alternatively short-run and long-run focus on the
pricing decision. This view also carries with it implications about the
role for demand and supply conditions in disequilibrium pricing, where
this role takes the form of movements in demand relative to capacity
within and between sectors affecting relative prices.
Journal: Review of Political Economy
Pages: 459-475
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000064
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000064
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:459-475
Template-Type: ReDIF-Article 1.0
Author-Name: B. Davis John
Author-X-Name-First: B. Davis
Author-X-Name-Last: John
Title: Sraffa's Early Philosophical Thinking
Abstract:
This paper investigates a number of aspects of Piero Sraffa's early
philosophical thinking by placing him within the historical materialist
tradition of reasoning about the relation of ideas to the historical
process. It first distinguishes Alfred Marshall's views about the
historical development of ideas by addressing Marshall's responses to the
criticisms of William Cunningham of the English Historical School.
Marshall's concept of economics as a universal engine of discovery was
rejected by Sraffa in his early writings. Sraffa's critique of Marshall is
then argued to lead to two early philosophical commitments on Sraffa's
part: that deductivist modes of explanation are inappropriate in economics
and that economics aims to explain the underlying structures of causal
interaction that had been the concern of the classical political
economists. The paper closes with brief remarks on how Sraffa's later
philosophical thinking might be approached.
Journal: Review of Political Economy
Pages: 477-491
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000065
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:477-491
Template-Type: ReDIF-Article 1.0
Author-Name: Nerio Naldi
Author-X-Name-First: Nerio
Author-X-Name-Last: Naldi
Title: Some Notes on Piero Sraffa's Biography, 1917-1927
Abstract:
This paper examines the early years of Piero Sraffa's career. Its purpose
is to present new information that may improve our undersranding of his
life and work and to integrate or rectify what is already contained in the
biographical essays published during the fast two decades with new data
emerging from his personal papers at the Wren Library of Trinity College
and from other—often related—sources.
Journal: Review of Political Economy
Pages: 493-515
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000066
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000066
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:493-515
Template-Type: ReDIF-Article 1.0
Author-Name: Gennady Shkliarevsky
Author-X-Name-First: Gennady
Author-X-Name-Last: Shkliarevsky
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 517-521
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000067
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000067
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:517-521
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Isaac
Author-X-Name-First: Alan
Author-X-Name-Last: Isaac
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 521-527
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000068
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000068
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:521-527
Template-Type: ReDIF-Article 1.0
Author-Name: Lynn Turgeon
Author-X-Name-First: Lynn
Author-X-Name-Last: Turgeon
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 527-530
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000069
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000069
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:527-530
Template-Type: ReDIF-Article 1.0
Author-Name: Ingrid Rima
Author-X-Name-First: Ingrid
Author-X-Name-Last: Rima
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 530-532
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000070
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000070
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:530-532
Template-Type: ReDIF-Article 1.0
Author-Name: Luiz Paula
Author-X-Name-First: Luiz
Author-X-Name-Last: Paula
Author-Name: Joao Sicsu
Author-X-Name-First: Joao
Author-X-Name-Last: Sicsu
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 532-535
Issue: 4
Volume: 10
Year: 1998
X-DOI: 10.1080/09538259800000071
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259800000071
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Handle: RePEc:taf:revpoe:v:10:y:1998:i:4:p:532-535
Template-Type: ReDIF-Article 1.0
Author-Name: Mathew Forstater
Author-X-Name-First: Mathew
Author-X-Name-Last: Forstater
Title: Working Backwards: Instrumental analysis as a policy discovery procedure
Abstract:
Following up on suggestions of Adolph Lowe, the paper draws on the work
of Peirce, Polya and Michael Polanyi to elaborate the notion of Lowe's
instrumental analysis as a policy discovery procedure. It is argued that
such an interpretation of Lowe's instrumentalism may contribute to the
formulation of effective practical policies. It is also argued in the
paper that this interpretation throws light on some issues concerning
markets and planning that relate to the debate on socialist calculation
that has been revived in the name of the 'knowledge problem' by
contemporary Austrian economists. In particular, it is argued that Lowe's
Instrumentalism brings to the fore the role of discovery and
creativity-which are central to Austrian conceptions of entrepreneurial
activity in the market-in policy formulation. In this sense Lowe's work
may be seen as an antecedent to more recent work in planning that
critiques-and promotes nonessentialist alternatives to-optimal or rational
planning.
Journal: Review of Political Economy
Pages: 5-18
Issue: 1
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107147
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107147
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:1:p:5-18
Template-Type: ReDIF-Article 1.0
Author-Name: Elizabeth Webster
Author-X-Name-First: Elizabeth
Author-X-Name-Last: Webster
Title: Kalecki's ceteris paribus Dynamics
Abstract:
Kalecki's macrodynamic models should be regarded as a form of ceteris
paribus dynamics which follow through the logical consequences of given
behavioural relationships taken in isolation from unrelated events. His
models are not mechanistic but rather attempts to isolate the systematic
forces within the economy. If we accept this, two important conclusions
can be drawn from his models. First, we can see that it is not possible to
stabilise the economy at any given level. Fluctuations are an inherent
feature of the market economy. Secondly, the trend or centre of
gravitation level of activity is determined by the level of exogenous
expenditures such as the stable portion of capitalists' consumption, net
exports and net government spending Artificially stimulating investment
does not affect it. Only two behavioural postulates are required for these
outcomes. Both may be justified given the context of market uncertainty.
Journal: Review of Political Economy
Pages: 19-32
Issue: 1
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107156
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107156
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:1:p:19-32
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Kliman
Author-X-Name-First: Andrew
Author-X-Name-Last: Kliman
Author-Name: Ted McGlone
Author-X-Name-First: Ted
Author-X-Name-Last: McGlone
Title: A Temporal Single-system Interpretation of Marx's Value Theory
Abstract:
This paper presents an interpretation of the quantitative dimension of
Marx's value theory in which prices and values are determined
interdependently and within historical time. This interpretation is then
shown to refute allegations that his value theory suffers from internal
inconsistencies. Among the issues considered are Marx's law of the falling
rate of profit, the alleged redundancy of value, value determination under
joint production, and the 'transformation problem.' The 'single-system'
interpretation of values and prices as interdependent eliminates the
alleged inconsistencies that pertain to magnitude; the 'temporal'
interpretation of value and price magnitudes as determined in historical
time eliminates the alleged inconsistencies that pertain to determination.
Journal: Review of Political Economy
Pages: 33-59
Issue: 1
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107165
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107165
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:1:p:33-59
Template-Type: ReDIF-Article 1.0
Author-Name: Elias Khalil
Author-X-Name-First: Elias
Author-X-Name-Last: Khalil
Title: Institutions, Naturalism and Evolution
Abstract:
The paper recasts old and new institutionalist economics (OIE and NIE) in
light of naturalism. While OIE views institutions as 'paradigms' which
define the nature of the actor, NIE views institutions as 'conventions'
which act as insubstantial traits, i.e. products of optimization subject
to constraint. While the two conceptions are different, they are not
alternatives: each one is a special theory limited to one kind of
institution. In addition, the paper critically assesses the limits of OIE
with regard to the theory of evolution of paradigms. The paper advances a
developmentalist perspective of institutions which parallels non-Darwinian
biological theory.
Journal: Review of Political Economy
Pages: 61-81
Issue: 1
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107174
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107174
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:1:p:61-81
Template-Type: ReDIF-Article 1.0
Author-Name: Mary King
Author-X-Name-First: Mary
Author-X-Name-Last: King
Author-Name: Lisa Saunders
Author-X-Name-First: Lisa
Author-X-Name-Last: Saunders
Title: An Interview with Marianne Ferber: Founding feminist economist
Abstract:
Marianne Ferber, a 75 year old professor emerita at the University of
Illinois, Urbana-Champaign, has been a central figure in developing both
the literature and the institutions of feminist economics. She was one of
the first and most effective scholars to challenge Gary Becker's analysis
of the economics of the family. Her textbook, The Economics of Women, Men
and Work , co-authored with Francine Blau and Anne Winkler, is the
standard for courses on women in the economy. Her 400 page annotated
bibliography, Women and Work, Paid and Unpaid , published in 1987, is the
definitive source on economic research on women's work published up to
that point. Her anthology, Beyond Economic Man: feminist theory and
economics , co-edited with Julie Nelson, is the first to pull together the
exciting new work being done by people who have an explicitly feminist
perspective on economics. She was a member of the Committee on the Status
of Women in the Economics Profession in the 1970s, a founding member of
the International Association for Feminist Economics (IAFFE) and for 1995
and 1996 served as IAFFE's president. This interview was conducted in
January 1998.
Journal: Review of Political Economy
Pages: 83-98
Issue: 1
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107183
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107183
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:1:p:83-98
Template-Type: ReDIF-Article 1.0
Author-Name: John Kemp
Author-X-Name-First: John
Author-X-Name-Last: Kemp
Author-Name: Ted Wilson
Author-X-Name-First: Ted
Author-X-Name-Last: Wilson
Title: Monetary Regime Transformation: The scramble to gold in the late nineteenth century
Abstract:
The late nineteenth century saw a movement among nation states which led
to the widespread adoption of an international gold standard. So far,
research has failed to demonstrate any specific qualities of gold that
would explain its selection in preference to systems based upon silver or
bimetallism. Neither has it proved possible to account for this choice in
terms of any specific events in the historical record. The movement
appears to have occurred almost without volition. In this paper it is
suggested that the adoption of a 'socio-economic regime' such as the gold
standard might be explainable by an approach similar to that put forward
to explain 'technological' lock-in, where dominance can arise as a result
of the culmination of a series of individual, small and perhaps
unidentifiable accidents of history.
Journal: Review of Political Economy
Pages: 125-149
Issue: 2
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107084
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107084
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:2:p:125-149
Template-Type: ReDIF-Article 1.0
Author-Name: John Henry
Author-X-Name-First: John
Author-X-Name-Last: Henry
Title: Property Rights, Markets and Economic Theory: Keynes versus Neoclassicism - again
Abstract:
This essay has two main objectives. Initially, I specify the relationship
between neoclassical theory and the property rights regime on which that
theory rests. In this portion of the argument I show that the property
rights consistent with neoclassical theory are inconsistent with those of
a monetary (or capitalist) economy-the economy the theory purports to
explain. Further, I specify several contradictions in the theory itself
when it attempts to examine rational resource allocation, money and the
labor market. Secondly, I show that Keynes's General Theory rests on a
fundamentally different foundation than that of neoclassicism. His views
on money, the labor market, equilibrium, etc. are in radical opposition to
those of orthodoxy. In addition, his theory does not share the same
position on property rights. Because of these considerations, Keynes
cannot be understood by those economists holding the neoclassical
perspective.
Journal: Review of Political Economy
Pages: 151-170
Issue: 2
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107093
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107093
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:2:p:151-170
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Katzner
Author-X-Name-First: Donald
Author-X-Name-Last: Katzner
Title: Hysteresis and the Modeling of Economic Phenomena
Abstract:
Three definitions of hysteresis in dynamic economic models are considered
in order of their increasing ability to project history onto the present
in a significant way. The third of these definitions is based on the
substitution of 'historical' for 'logical' time in the model's dynamic
structure.
Journal: Review of Political Economy
Pages: 171-181
Issue: 2
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107101
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:2:p:171-181
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Sergio Levrero
Author-X-Name-First: Enrico Sergio
Author-X-Name-Last: Levrero
Title: Worker Bargaining Power and Real Wages from 1870 to 1913: Phelps Brown reconsidered
Abstract:
This paper discusses Phelps Brown's claims that (1) real wages in the
long run cannot be explained by a theory where distribution is determined
by the relative worker bargaining position, and (2) changes in real wages
would be strictly linked to changes in the average product per worker.
Journal: Review of Political Economy
Pages: 183-203
Issue: 2
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107110
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107110
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:2:p:183-203
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Donoghue
Author-X-Name-First: Mark
Author-X-Name-Last: Donoghue
Title: William Thomas Thornton on Trade Union Efficacy: A fraction too much friction
Abstract:
William T. Thornton's contribution to developments in late nineteenth
century political economy is generally associated with his criticism of
John Stuart Mill's 'supply and demand' theory of value and his attack on
Henry Fawcett's version of the wage fund doctrine. In a Fortnightly Review
article (published in May and June 1869) on Thornton's book, On Labour,
Mill publicly deferred to Thornton's criticism of the wage fund doctrine
but did not accept his criticism of the theory of value. There is another
aspect of Mill's review article, however, which historians of economic
thought seem to have overlooked: his enthusiastic discussion of Thornton's
treatment of trade union efficacy and industrial co-partnership. The
question explored in this paper is whether Thornton's work on labour
relations, trade union efficacy and cooperativism helped shape Mill's own
thinking on these subjects during the 1860s. We begin by documenting
Thornton's views on trade unionism and then examine Mill's evolving
sympathy toward trade unions-an important feature of his social reform
program. It is sometimes claimed that nineteenth century economists tended
to ignore the role played by trade unions in industrial society. This
paper points out that Mill and Thornton, two leading economists during the
second half of the nineteenth century, did not oppose trade unions and
were favourably impressed with the advantages for society of labour
combinations. Nonetheless, they looked forward to the gradual supplanting
of the system of collective bargaining by 'higher' cooperation.
Journal: Review of Political Economy
Pages: 205-219
Issue: 2
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107129
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107129
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:2:p:205-219
Template-Type: ReDIF-Article 1.0
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: Introduction
Abstract:
Journal: Review of Political Economy
Pages: 251-255
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106968
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106968
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:251-255
Template-Type: ReDIF-Article 1.0
Author-Name: Wlodzimierz Brus
Author-X-Name-First: Wlodzimierz
Author-X-Name-Last: Brus
Title: Great Debt and a Few Grievances: A note on Michal Kalecki as my adopted mentor
Abstract:
The aim of this note is to examine briefly the influence Kalecki exerted
on the author's way of thinking as a political economist. It is therefore
a highly subjective piece, written with the benefit of hindsight. The
great debt the author feels he owes Kalecki derives from Kalecki's
uncompromising rejection of any kind of dogmatism. This trait appears both
in Kalecki's seminal analysis of the macroeconomics of capitalism and in
his attempt to work out a theory of growth of a socialist economy. In both
cases one of the most inspiring features of Kaleckian economics was its
constant awareness of the need to combine rationality with a full
appreciation of its socio-political consequences. The author's
'grievances' focus on Kalecki's insufficient attention to microeconomics,
and hence to the role of market mechanisms and the supply side of the
economy.
Journal: Review of Political Economy
Pages: 257-260
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106977
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106977
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:257-260
Template-Type: ReDIF-Article 1.0
Author-Name: Jerzy Osiatynski
Author-X-Name-First: Jerzy
Author-X-Name-Last: Osiatynski
Title: Michal Kalecki, 1899-1970: Some nostalgic memories
Abstract:
Journal: Review of Political Economy
Pages: 261-266
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106986
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106986
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:261-266
Template-Type: ReDIF-Article 1.0
Author-Name: Ignacy Sachs
Author-X-Name-First: Ignacy
Author-X-Name-Last: Sachs
Title: Learning Political Economy with Michal Kalecki
Abstract:
This is a brief memoir of Kalecki as a teacher and collaborator, together
with a discussion of his approach to the economics of development and an
assessment of his contribution and its influence on subsequent thinking.
Journal: Review of Political Economy
Pages: 267-272
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106995
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106995
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:267-272
Template-Type: ReDIF-Article 1.0
Author-Name: Brian Tew
Author-X-Name-First: Brian
Author-X-Name-Last: Tew
Title: Kalecki's ''Essays in the Theory of Economic Fluctuations''
Abstract:
This paper compares Kalecki's 1939 book, 'Essays in the Theory of
Economic Fluctuations' with the analysis of Keynes in the 'General Theory'
and subsequent articles. It argues that the work of Kalecki lends strong
support to Keynes's crusade against contemporary macroeconomic theory;
where Keynes and Kalecki differed, it was generally due to the Keynesian
assumption of perfect competition, which Kalecki rejected.
Journal: Review of Political Economy
Pages: 273-282
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107002
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:273-282
Template-Type: ReDIF-Article 1.0
Author-Name: David Worswick
Author-X-Name-First: David
Author-X-Name-Last: Worswick
Title: Armaments and Full Employment
Abstract:
Michal Kalecki was in Oxford during the war and wrote the keynote essay
in The Economics of Full Employment , six studies in applied economics,
prepared at the Oxford University Institute of Statistics, and published
in 1944. His essay is about the use of fiscal and monetary policy to
achieve full employment in a capitalist economy. A year earlier he had
written an article warning that full employment policies might encounter
resistance from business leaders and industrialists. In the 1950s Kalecki,
who had returned to Poland, appeared to change his view whether full
employment under capitalism was a worthy and feasible objective. Two
lectures on Armaments and the Business Cycle which he gave in 1955, throw
light on this change of view, but they did not appear in English until the
series of volumes of his Collected Works started to come out in the 1990s.
The present note considers the arguments deployed in the lectures, and
goes on to re-examine his original fears of political resistance. It
concludes that he was right to stress such resistance, but argues that
changes in the structure of capitalist economies in the past half-century
have altered the nature of the politcal constraints.
Journal: Review of Political Economy
Pages: 283-290
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107011
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107011
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:283-290
Template-Type: ReDIF-Article 1.0
Author-Name: Julio Lopez
Author-X-Name-First: Julio
Author-X-Name-Last: Lopez
Author-Name: Tracy Mott
Author-X-Name-First: Tracy
Author-X-Name-Last: Mott
Title: Kalecki Versus Keynes on the Determinants of Investment
Abstract:
This paper explores the differences between the investment theories of
Michal Kalecki and John Maynard Keynes. We argue that Kalecki's ideas (and
empirical support for them) are necessary for Keynes's arguments regarding
the determination of the level of effective demand. Kalecki's theory of
the role of finance in investment also provides a fuller understanding of
the importance of liquidity concerns for Keynesian theory and connects the
theory of effective demand to the logic of capitalism.
Journal: Review of Political Economy
Pages: 291-301
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107020
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107020
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:291-301
Template-Type: ReDIF-Article 1.0
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: The Kaleckian Analysis and the New Millennium
Abstract:
This paper commemorates the centenary of Kalecki's birth through a
consideration of how Kalecki's macroeconomic analysis of capitalist
economies should be adapted in light of changes in such economies over the
50 years since the major elements of Kalecki's analysis of capitalism were
put into place. The main elements of Kalecki's analysis, in terms of the
key assumptions which he made, are outlined, and how well these
assumptions have survived is discussed. The next three sections consider
globalisation, the growth in the importance of financial markets and the
relationship between the real and the financial sectors, and the changing
relationship between workers and business (and the associated changes in
industrial relations practice and law) as areas where there have been
major changes in the past three decades and where Kalecki's analysis may
need to be modified to encapsulate those changes.
Journal: Review of Political Economy
Pages: 303-319
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107039
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107039
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:303-319
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Zak
Author-X-Name-First: Paul
Author-X-Name-Last: Zak
Title: Kaleckian Lags in General Equilibrium
Abstract:
The relationship between production lags and business cycles has a long
history in economics, but was first analyzed rigorously by Michal Kalecki
in 1935. In a linear delay differential equation model, Kalecki showed
that production delays can endogenously generate cycles. Whether this
result holds in general equilibrium has been an open question. An answer
is provided by examining the effect of Kaleckian lags in the Solow and
Cass-Koopmans growth models. It is shown that such models do produce
endogenous cycles, confirming that Kalecki's model relating lags to cycles
holds in general equilibrium settings.
Journal: Review of Political Economy
Pages: 321-330
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107048
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107048
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:321-330
Template-Type: ReDIF-Article 1.0
Author-Name: Ian Steedman
Author-X-Name-First: Ian
Author-X-Name-Last: Steedman
Title: Distribution, Prices and Choice of Technique in Kaleckian Theory
Abstract:
A Kaleckian mark-up theory of pricing implies a trade-off frontier
between mark-ups and wages, with the result that mark-ups and wages cannot
all be independently determined-by whatever processes. Wages in different
industries are just as much in conflict as are wages and mark-ups. The way
in which relative commodity prices change in response to changes in
relative mark-ups may be 'counter-intuitive'. When a choice of technique
is allowed for-and it must be-Kaleckian theory is found to give much
greater scope for the simultaneous use of alternative production processes
in a given industry than does a 'Sraffian' analysis; there are
'switchcurves' rather than mere 'switchpoints'. Techniques which would
appear to be dominated (economically irrelevant) in a 'Sraffian' analysis
might in fact be utilized in a Kaleckian system. This result re-emerges
when foreign trade is considered-and it must be considered in Kaleckian
theory. It is found once again that wages and mark-ups cannot be
independently determined. The central issue here, however, is just how the
patterns of production location and trade are taken to be determined
within the Kaleckian markup theory of pricing.
Journal: Review of Political Economy
Pages: 331-340
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107057
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107057
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:331-340
Template-Type: ReDIF-Article 1.0
Author-Name: Graham White
Author-X-Name-First: Graham
Author-X-Name-Last: White
Title: Rethinking Kalecki on the Trend and Cycle
Abstract:
This paper examines Kalecki's explanation of investment in his 1968 paper
'Trend and business cycles reconsidered' and his idea on the relationship
between the long-run trend and the business cycle. An important aspect of
that explanation is a comparison between actual and the so-called
'standard' rate of profit. However, when the influence of the cycle on
entrepreneurs' views of normal capacity utilization is allowed for, the
role of divergences between actual and standard profit rates in the
investment process becomes less clear. Exogenous influences on fixed
capital investment, particularly innovation, may then become more
important, especially in triggering those movements in investment that are
at the centre of Kalecki's explanation of the cycle. This suggests a much
closer link, via innovation, between the cycle and the long-run trend.
Journal: Review of Political Economy
Pages: 341-353
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107066
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107066
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:341-353
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Toporowski
Author-X-Name-First: Jan
Author-X-Name-Last: Toporowski
Title: Kalecki and the Declining Rate of Profit
Abstract:
In Kalecki's business cycle theory a fall in the rate of profit plays a
key role in the onset of recession, causing a fall in investment. This
paper shows how the falling rate of profit is an eventual corollary of the
steady rate of capital accumulation, which Keynes saw as the key to
securing full employment. The decline in the rate of profit may be avoided
by a shift to increasingly capital-intensive techniques of production, or
greater government indebtedness or foreign trade imbalances. It is
suggested that these disequilibrating factors lie behind the success of
rapidly growing capitalist economies in the second half of the 20th
century.
Journal: Review of Political Economy
Pages: 355-371
Issue: 3
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599107075
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599107075
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:3:p:355-371
Template-Type: ReDIF-Article 1.0
Author-Name: Edwin Dickens
Author-X-Name-First: Edwin
Author-X-Name-Last: Dickens
Title: A Political-Economic Critique of Minsky's Financial Instability Hypothesis: The case of the 1966 financial crisis
Abstract:
According to Minsky's financial instability hypothesis, financial crises
are caused by increasing debt burdens. The purpose of this paper is to
argue instead that financial crises are caused by class and intra-class
conflict. The 1966 financial crisis is particularly significant, from the
perspective of Minsky's financial instability hypothesis, because it
divides the postwar Golden Age of US capitalism from the current period of
recurrent financial crises. After showing that increasing debt burdens do
not account for the 1966 financial crisis, this paper explains the 1966
financial crisis in terms of class and intra-class conflict.
Journal: Review of Political Economy
Pages: 379-398
Issue: 4
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106850
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106850
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:4:p:379-398
Template-Type: ReDIF-Article 1.0
Author-Name: Gerald Epstein
Author-X-Name-First: Gerald
Author-X-Name-Last: Epstein
Title: A Comment on Dickens
Abstract:
There are two separate, but related aspects to Edwin Dickens' paper. One
concerns a specific historical event: what caused the financial crisis of
1966? The second draws out the implications of this case for the general
theory of financial instability developed most notably by Hyman Minsky and
applied by Martin Wolfson to the 1966 financial crisis. Dickens' study is
fascinating, both for the detailed, - indeed, almost blow by blow -
description of the unfolding action, and also for the unique theoretical
interpretation he brings to the events. This paper has made me think in
new ways about issues such as the etiology of financial crises, and the
interactions between private interests and the Federal Reserve. One of the
many things I very much liked about this paper was Dickens' method of
using very detailed historical analysis of a specific event, discussed
with detailed knowledge of the financial institutions and markets of the
time, which he then placed in a broader context of historical events all
in the process of shedding light on an important theoretical issue in
macroeconomics. While Dickens' theoretical and historical analyses are
very impressive, the empirical evidence for Dickens' assertions could be
stronger.
Journal: Review of Political Economy
Pages: 399-405
Issue: 4
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106869
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106869
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:4:p:399-405
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Wolfson
Author-X-Name-First: Martin
Author-X-Name-Last: Wolfson
Title: Financial Instability and the Credit Crunch of 1966
Abstract:
In an article in this journal, Edwin Dickens criticizes the financial
instability hypothesis of Hyman Minsky. He contends that ''financial
instability theorists'' explain the financial crisis in the US in 1966 as
due to the forced sale of securities by commercial banks, but that the
1966 crisis was not due to such sales. Therefore, he says that Minsky's
financial instability hypothesis is contradicted. In contrast, this
article argues that the 1966 crisis was initiated by the sale of
securities by banks, but that such a development was not due to increased
financial fragility, and thus was not a necessary aspect of the financial
instability hypothesis. While the specifics of the 1966 crisis are
somewhat of an exception, the general pattern of financial crisis in the
postwar period in the US is powerfully explained by Minsky's financial
instability hypothesis.
Journal: Review of Political Economy
Pages: 407-414
Issue: 4
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106878
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106878
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:4:p:407-414
Template-Type: ReDIF-Article 1.0
Author-Name: L. Randall Wray
Author-X-Name-First: L. Randall
Author-X-Name-Last: Wray
Title: The 1966 Financial Crisis: Financial instability or political economy?
Abstract:
The credit crunch of 1966 has long been recognized as the first
significant postwar financial crisis, and it was the first verification of
the ''financial instability hypothesis'' that Minsky had been developing
since the late 1950s. In the midst of the robust post-war expansion, the
Fed tightened monetary policy to the point at which profitability of
financial institutions was threatened. The Fed was forced to intervene to
save the muni bond market, which in effect validated practices that were
stretching liquidity. As a result of Fed intervention, the economy
continued to expand, new financial practices emerged and were validated,
leverage ratios increased, memories of the Great Depression faded, and
markets came to expect that big government and the Fed would come to the
rescue as needed. That 1966 crisis was only a minor speedbump on the road
to Minskian fragility - a transformation from a ''robust'' financial
system toward the current ''fragile'' financial system.
Journal: Review of Political Economy
Pages: 415-425
Issue: 4
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106887
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106887
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:4:p:415-425
Template-Type: ReDIF-Article 1.0
Author-Name: Edwin Dickens
Author-X-Name-First: Edwin
Author-X-Name-Last: Dickens
Title: Financial Instability, Crises and the Endogeneity Of Money: A rejoinder
Abstract:
Journal: Review of Political Economy
Pages: 427-430
Issue: 4
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106896
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106896
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:4:p:427-430
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Merrett
Author-X-Name-First: Stephen
Author-X-Name-Last: Merrett
Title: The Political Economy of Water Abstraction Charges
Abstract:
An important economic instrument in the management of a river catchment's
water resources is the charges made by government for the abstraction of
water from ground and surface sources. Abstraction charges are a form of
rent. However, the classical theory of differential rent has limited
application to abstraction prices because that theory's assumption of
competition in the supply of the natural resource does not hold in this
case. Here, the property rights of individual households and of
institutions to draw water are assigned by a state monopoly. In order to
understand the specific and contingent practices of government in
different countries, a taxonomy of charge-setting principles is proposed.
This paper sets out six principal fields of action for sustainable water
resource planning and, in that context, recommends full incentive charging
as the basis of catchment policy.
Journal: Review of Political Economy
Pages: 431-442
Issue: 4
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106904
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106904
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:4:p:431-442
Template-Type: ReDIF-Article 1.0
Author-Name: Annalisa Rosselli
Author-X-Name-First: Annalisa
Author-X-Name-Last: Rosselli
Title: The Origin of the Political Economy of Money
Abstract:
The rise of classical political economy has certainly marked a change in
the way economic theory dealt with monetary issues, as it combined the
microeconomic knowledge of the problems of metallic circulation with a
macroeconomic analysis of the causes of monetary disturbances (balance of
payments disequilibria, monetary policy). For the first time monetary
theory was put on a sound theoretical footing. However, the belief of
classical political economists in the self-correcting properties of
markets, translated into their policy prescriptions, has given rise to
interpretations that charge classical political economists of naivety: in
their desire to subject all markets to the laws of supply and demand, they
would have advocated a commodity-money and used the same analytical tools
for the markets of commodities as well for money. The paper argues that
there is no ground for such allegation. Rather, by looking into the works
of Ricardo and Thornton, it is argued that supply and demand play a
limited role in the explanation of monetary variables, since causality
relationships are carefully specified and the need for an institution that
'made the market function' is forcefully advocated.
Journal: Review of Political Economy
Pages: 443-454
Issue: 4
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106913
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106913
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:4:p:443-454
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Parsons
Author-X-Name-First: Stephen
Author-X-Name-Last: Parsons
Title: Economics and Reality: A philosophical critique of transcendental realism
Abstract:
In Economics and Reality Tony Lawson seeks to criticise and offer an
alternative to mainstream economic theorising. The book draws upon the
work of Bhaskar, advocating a form of realism termed transcendental
realism, in opposition to the empirical realism taken to underpin
mainstream theorising. However, the specific objections advanced by Lawson
against empirical realism are frequently confused and confusing. Lawson's
own appeal to structures suffers from lack of definition, and empirical
realism seems more applicable to Keynesian, not mainstream, economics. The
claim that the social sciences can be modelled on the natural sciences is
not particularly illuminating.
Journal: Review of Political Economy
Pages: 455-466
Issue: 4
Volume: 11
Year: 1999
X-DOI: 10.1080/095382599106922
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382599106922
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Handle: RePEc:taf:revpoe:v:11:y:1999:i:4:p:455-466
Template-Type: ReDIF-Article 1.0
Author-Name: Vivian Walsh
Author-X-Name-First: Vivian
Author-X-Name-Last: Walsh
Title: Smith After Sen
Abstract:
This paper makes the claim that it is possible to distinguish two phases
in the revival of classical theory during the twentieth century. The first
phase was severely minimalist, and looked back to David Ricardo for
inspiration, reinterpreting his work in terms of present day concepts and
formal methods. The second phase, on the other hand, seeks an enriched
present day classicism, and is appropriately inspired by the work of Adam
Smith. It is argued that already, before the beginning of the new
millenium, deeply significant work has been done which, once examined from
the present point of view, can be seen to herald the arrival of elements
of second stage classical theory. Thus certain contributions of Amartya
Sen can be seen to cast new light on the work of Adam Smith, and to link
up with the ideas of other theorists like Luigi Pasinetti whose work has
had features characteristic of second phase classical theory.
Journal: Review of Political Economy
Pages: 5-25
Issue: 1
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500106795
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500106795
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:1:p:5-25
Template-Type: ReDIF-Article 1.0
Author-Name: James Hartley
Author-X-Name-First: James
Author-X-Name-Last: Hartley
Title: Does the Solow Residual Actually Measure Changes in Technology?
Abstract:
Real business cycle models purport to explain the business cycle as the
result of technological change. This paper shows that the commonly used
measure of technological change, the Solow residual, does not capture
changes in the technology of the production function. The model used in
this paper is within the framework of models described in Hansen & Sargent
(1990, 1991). Technological change is modeled as a change in the value of
one of the 'deep' technology parameters in the production function. The
Solow residual is incapable of capturing the effects of this sort of
technological change. There is no consistent relationship between the
direction and size of a technological change and the sign and size of the
Solow residual. The Solow residual often moves in the wrong direction,
e.g. a negative technological shock causes a positive residual. Even when
the Solow residual has the right sign, its size is not consistent with the
size of the technological shock, e.g. a larger positive change in
technology does not necessarily cause a larger positive Solow residual.
Journal: Review of Political Economy
Pages: 27-44
Issue: 1
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500106803
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500106803
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:1:p:27-44
Template-Type: ReDIF-Article 1.0
Author-Name: Stavros Ioannides
Author-X-Name-First: Stavros
Author-X-Name-Last: Ioannides
Title: Austrian Economics, Socialism and Impure Forms of Economic Organisation
Abstract:
Modern supporters of the Austrian school of economics maintain that their
critical stance towards impure forms of economic organisation - such as
the mixed economy - grew out of the arguments of Mises and Hayek during
the socialist calculation debate of the 1930s. The paper assesses the two
theorists, contributions in the debate and argues that their ideas cannot
provide the basis for a general rejection of impure forms of economic
organisation. First of all, and contrary to most modern Austrians, who
consider the contributions of Mises and Hayek as essentially consistent,
it is argued that Hayek's critique of socialism is much more effective
than Mises' as it rests on his concept of tacit knowldge and on an
evolutionary account of the emergence of capitalist institutions. However,
the paper goes on to argue that, if Hayek's critique of state intervention
is to have any relevance for contemporary capitalist economies, it must be
in a position to show the non-viability not only of a fully centrally
planned economy of the Soviet type but also of the mixed economy. It is
argued that it is precisely in this that Hayek's evolutionism fails, for
his teleological approach is not persuasive in ruling out the possibility
of impure forms of capitalism in a manner that is consistent with truly
evolutionary - i.e. non-teleological - ideas.
Journal: Review of Political Economy
Pages: 45-71
Issue: 1
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500106812
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500106812
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Template-Type: ReDIF-Article 1.0
Author-Name: D. P. T. Young
Author-X-Name-First: D. P. T.
Author-X-Name-Last: Young
Title: Firms' Market Power, Endogenous Preferences and the Focus of Competition Policy
Abstract:
Conventional neoclassical views of dominance are generally restricted to
a concern for a firm's market power seen in terms of the ability to raise
and maintain prices above their marginal costs of production. A prime
example of this approach is the application of dominant firm price
leadership models, which has led to a restricted theoretical perception of
the nature of market power and to an incomplete view of the social costs
of monopoly power. This paper argues that a broader conception of a firm's
market power leads to a quite different perspective on its conduct. In
particular, if we allow dominance to involve the ability to influence
product demand patterns, then the theoretical analysis of firm behaviour
changes significantly. Specifically, it implies the endogeneity of
preferences which, it is argued, represents an important alternative to
mainstream analysis. It is suggested that we need to consider a firm's
dominance not so much in terms of its pricing in the context of a
particular market structure but to focus on its ability to gain advantage
over its rivals in terms of 'creating' an asymmetry in the demand for its
products. This has important implications for competition policy, for it
suggests a need to concentrate on the 'power' of firms and less on the
effects of a change in market structure. Likewise, we need to reconsider
the adequacy of defining markets in terms of product demand
characteristics.
Journal: Review of Political Economy
Pages: 73-87
Issue: 1
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500106821
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500106821
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:1:p:73-87
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Author-Name: Gale Summerfield
Author-X-Name-First: Gale
Author-X-Name-Last: Summerfield
Title: The Economic Contributions of Amartya Sen
Abstract:
This paper examines the major economic contributions of Amartya Sen.
Sen's contributions fall into three main areas: a philosophical critique
of traditional economic assumptions, an attempt to build a more realistic
economic science based on the notion of entitlements and human
capabilities, and a long series of practical contributions to welfare
economics that follow from the capabilities approach - how to measure
poverty and inequality better, how to understand famine and hunger, the
importance of gender in economic development, and the differences between
economic development and economic growth. The paper concludes with a brief
assessment of the significance of Sen's work.
Journal: Review of Political Economy
Pages: 89-113
Issue: 1
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500106830
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500106830
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:1:p:89-113
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Aspromourgos
Author-X-Name-First: Tony
Author-X-Name-Last: Aspromourgos
Title: Is an Employer-of-Last-Resort Policy Sustainable? A review article
Abstract:
A radical proposal to address decisively the problem of mass involuntary
unemployment, by way of a government committing itself to stand ready as
'employer of last resort', has recently been put forward by L. Randall
Wray and others. To the question of how such large-scale policies would be
financed, there has been a suggestion that issuing outside money would
suffice. This review employs some simple modelling to show the limits to
'printing money' as a means of financing such an employment policy. The
review also critically scrutinizes the claim that the policy can
simultaneously act as an antiinflationary device, as well as some other
aspects of the proposals.
Journal: Review of Political Economy
Pages: 141-155
Issue: 2
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500406477
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500406477
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:2:p:141-155
Template-Type: ReDIF-Article 1.0
Author-Name: Nerio Naldi
Author-X-Name-First: Nerio
Author-X-Name-Last: Naldi
Title: Keynes on the Nature of Capital: An interpretation of The General Theory's Chapter 16
Abstract:
Chapter 16 of The General Theory contains an analysis designed to
interpret the long-run effects of saving decisions and capital
accumulation on employment and aggregate income. In a discussion aimed at
providing a basis for this analysis, Keynes argued that the concept of
roundaboutness—or average period of production—did not
provide a general explanation of the origin of the return on capital and
was not a general description of capital itself. The alternative view put
forward by Keynes described capital as a set of heterogeneous commodities
yielding a return according to their scarcity.
Journal: Review of Political Economy
Pages: 157-169
Issue: 2
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500406486
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500406486
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:2:p:157-169
Template-Type: ReDIF-Article 1.0
Author-Name: Ingrid Rima
Author-X-Name-First: Ingrid
Author-X-Name-Last: Rima
Title: Sectoral Changes in Employment: An eclectic perspective on 'good' jobs and 'poor' jobs
Abstract:
The linkage Keynes established between the volume of employment that
business firms require to make a particular number of jobs available
provides an operational perspective about the way in which labor markets
work. The aggregate supply or Z function is, in fact, a job offer curve.
The most significant insight to derive from this curve is that job offers
are inseparable from the economy's aggregate expenditure (or demand)
level. This interdependency of aggregate supply and aggregate demand is
necessary to understand the functioning of labor markets in the real
world. This paper argues that a disaggregated model which encapsulates the
economy's price-taking and price-making sectors offers a promising
analytical tool to gain perspective about 'good jobs' and 'poor jobs' in
post-Fordist economies. It is maintained that the sectoral deployment of
workers reflects whether employing firms, as price-makers, can capture the
increasing returns inherent in modern technology.
Journal: Review of Political Economy
Pages: 171-190
Issue: 2
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500406495
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500406495
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:2:p:171-190
Template-Type: ReDIF-Article 1.0
Author-Name: Lars Magnusson
Author-X-Name-First: Lars
Author-X-Name-Last: Magnusson
Author-Name: Jan Ottosson
Author-X-Name-First: Jan
Author-X-Name-Last: Ottosson
Title: State Intervention and the Role of History - state and private actors in Swedish network industries
Abstract:
Three main theoretical positions towards state intervention and
regulation are discussed in relation to the case of Swedish
infrastructure. The positive, the normative, and the political transaction
cost approaches are examined in relation to the historic development of
regulatory systems in civil aviation, railroads, and telecommunications.
The authors show that governance regimes have historical roots, and
develop differently due to policies implemented by state agencies. Three
points are illuminated with a view to the interaction between state and
private actors in the transport and communication sector. First, the role
and function of the state agencies as well as the political system itself
point to the need for a more refined analysis of state action. The active
role of state agencies is also discussed emphasizing the difference
between political decisions and the implementation of such decisions.
Second, the role of a historical perspective is discussed, arguing that it
makes possible a better understanding of the reasons behind choices of
particular strategies. Finally, there might be good reason to expect the
state either to act solely as a rent seeker, or as a promoter of optimal
solutions.
Journal: Review of Political Economy
Pages: 191-205
Issue: 2
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500406503
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500406503
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:2:p:191-205
Template-Type: ReDIF-Article 1.0
Author-Name: Harilaos Mertzanis
Author-X-Name-First: Harilaos
Author-X-Name-Last: Mertzanis
Title: Capacity Utilization, Foreign Portfolio Investment and International Debts and Deficits
Abstract:
This paper develops a long-run equilibrium growth model, in the tradition
of Keynes, Kalecki and Steindl, involving international capital flows
between a debtor and a creditor country, and in which capacity utilization
is variable. This latter assumption implies that the shares of savings by
capitalists and workers will vary with capacity utilization. Profit rates
will also vary with capacity utilization rates, so that the establishment
of a common warranted rate of growth requires that the rates of profit in
the creditor and the debtor countries must vary inversely. The long-run
equilibrium shares of ownership of the two stocks of capital must
therefore vary as the utilization rates vary. Taking the international
interest rate as given, steady growth in each country at near full
employment is shown to be accommodated, to some extent, through variations
in the degree of capacity utilization. Even if income distribution remains
unchanged, the variability of capacity utilization allows the existence of
a range of growth rates consistent with the long-run equilibrium
conditions of the model.
Journal: Review of Political Economy
Pages: 207-218
Issue: 2
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500406512
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500406512
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:2:p:207-218
Template-Type: ReDIF-Article 1.0
Author-Name: Costas Lapavitsas
Author-X-Name-First: Costas
Author-X-Name-Last: Lapavitsas
Title: On Marx's Analysis of Money Hoarding in the Turnover of Capital
Abstract:
The formation of money hoards, which underpins the demand for money, is
typically treated by mainstream monetary theory as originating in the
motives of the rational individual. In contrast, Marx's discussion of
money hoarding treats hoard formation as a necessary tendency of
capitalist production and circulation rather than as a result of the
individual's predilections. Based on Marx's analysis, this article
identifies several structural reasons for money hoard formation in the
circuit of capital. It is also shown that Marx's discussion, despite its
insight, suffers from a technical error in analysing the overlapping of
production and circulation time in the circuit, and in drawing the
implications for hoarding. Finally, it is argued that the broader
significance of capitalist money hoarding lies in the foundations it
provides for the emergence of the credit system.
Journal: Review of Political Economy
Pages: 219-235
Issue: 2
Volume: 12
Year: 2000
X-DOI: 10.1080/095382500406521
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382500406521
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:2:p:219-235
Template-Type: ReDIF-Article 1.0
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: Introduction to an Unpublished Note by Nicholas Kaldor & Joan Robinson
Abstract:
Journal: Review of Political Economy
Pages: 261-265
Issue: 3
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050127436
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050127436
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:261-265
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas Kaldor
Author-X-Name-First: Nicholas
Author-X-Name-Last: Kaldor
Author-Name: Joan Robinson
Author-X-Name-First: Joan
Author-X-Name-Last: Robinson
Title: PROFIT MARGINS INQUIRY: Note on alternative hypotheses as to the determination of Profit Margins
Abstract:
Journal: Review of Political Economy
Pages: 267-271
Issue: 3
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050127445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050127445
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:267-271
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Flaschel
Author-X-Name-First: Peter
Author-X-Name-Last: Flaschel
Author-Name: Reiner Franke
Author-X-Name-First: Reiner
Author-X-Name-Last: Franke
Title: An Old-Keynesian Note on Destabilizing Price Flexibility
Abstract:
Tobin's (1975) macrodynamic model on 'recession and depression' is
extended by introducing two separate adjustment rules for money wages and
the price level. It turns out that sluggish prices and, under an
additional assumption, also sticky wages are favourable for local
stability of the long-run equilibrium, while a high degree of flexibility
tends to be destabilizing. In addition, a disposition to cyclical
behaviour is indicated.
Journal: Review of Political Economy
Pages: 273-283
Issue: 3
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050127454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050127454
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:273-283
Template-Type: ReDIF-Article 1.0
Author-Name: Jean-Francois Renaud
Author-X-Name-First: Jean-Francois
Author-X-Name-Last: Renaud
Title: The Problem of the Monetary Realization of Profits in a Post Keynesian Sequential Financing Model: Two solutions of the Kaleckian option
Abstract:
In a Post Keynesian theoretical framework with sequential financing, two
solutions to the problem of the monetary realization of profits are
presented. Both of these are consistent with the Kaleckian view, according
to which actual profits arise from the present expenditure of their
anticipated amount. These two solutions form the basis for a theoretical
reconsideration of the relationships among the creation of money,
consumption, savings and investment.
Journal: Review of Political Economy
Pages: 285-303
Issue: 3
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050127463
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050127463
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:285-303
Template-Type: ReDIF-Article 1.0
Author-Name: Lisa Saunders
Author-X-Name-First: Lisa
Author-X-Name-Last: Saunders
Author-Name: Mary King
Author-X-Name-First: Mary
Author-X-Name-Last: King
Title: An Interview with Barbara Bergmann: Leading feminist economist
Abstract:
Barbara Bergmann, Emerita Professor of Economics at both the American
University and the University of Maryland, has been a leader in the
development and establishment of feminist economics, in scholarly, policy
and organizational capacities. Professor Bergmann is particularly known
for her crowding model of discrimination. She is the author of an
excellent, accessible undergraduate textbook, The Economic Emergence of
Women (1986) . She has authored several policy-oriented books, including
In Defense of Affirmative Action (1996a), Saving Our Children from
Poverty: what the United States can learn from France (1996b) , and What
Child Care System for America? (2000). Professor Bergmann is past
president of the Society for the Advancement of Socioeconomics, the
Eastern Economic Association and the International Association for
Feminist Economics. She received her PhD in economics from Harvard in
1959. This interview was conducted at the ASSA meetings in Chicago on 4
January 1998.
Journal: Review of Political Economy
Pages: 305-316
Issue: 3
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050127472
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050127472
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:305-316
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lombard
Author-X-Name-First: Marc
Author-X-Name-Last: Lombard
Title: Restrictive Macroeconomic Policies and Unemployment in the European Union
Abstract:
This paper looks at the impact the European integration process has had
on the unemployment level of European Union member countries. While the
persistence of relatively high unemployment in Europe is often attributed
to supply-side factors, such as the rigidities of the labour market, this
study contends that the major cause for the rise of unemployment in the EU
has been the very macroeconomic policies of the EU itself. The paper
argues that the continuous pursuit of deflationary policies and the
macroeconomic constraint imposed first by the membership of the European
Monetary System and, secondly, by the convergence criteria of the
Maastricht Treaty, have been the real impediments to reducing
unemployment.
Journal: Review of Political Economy
Pages: 317-332
Issue: 3
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050127481
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050127481
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:317-332
Template-Type: ReDIF-Article 1.0
Author-Name: Russell Smyth
Author-X-Name-First: Russell
Author-X-Name-Last: Smyth
Author-Name: Dic Lo
Author-X-Name-First: Dic
Author-X-Name-Last: Lo
Title: Theories of the Firm and the Relationship between Different Perspectives on the Division of Labour
Abstract:
This paper explores the tension between the organisational learning,
market and hierarchies rationales for the firm. It is not clear, from the
organisational learning and market-hierarchies literatures, what role
exists for the different approaches. The paper suggests that this reflects
the fact that each paradigm is premised on a particular notion of the
division of labour but, at the same time, does not recognise that the
division of labour is multifaceted. The paper suggests one possible
approach to reconcile the various rationales for the firm. To do this, the
different paradigms are placed in the context of different growth patterns
that support different conceptions of the division of labour.
Journal: Review of Political Economy
Pages: 333-349
Issue: 3
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050127490
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050127490
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:333-349
Template-Type: ReDIF-Article 1.0
Author-Name: Ingrid Rima
Author-X-Name-First: Ingrid
Author-X-Name-Last: Rima
Title: The Pillars of Economic Understanding: A review essay
Abstract:
Journal: Review of Political Economy
Pages: 351-358
Issue: 3
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050127508
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050127508
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:3:p:351-358
Template-Type: ReDIF-Article 1.0
Author-Name: Don Goldstein
Author-X-Name-First: Don
Author-X-Name-Last: Goldstein
Title: Hostile Takeovers as Corporate Governance? Evidence from the 1980s
Abstract:
The notion that hostile takeovers must play a key role in corporate
governance, by bringing purportedly efficient financial market pressures
to bear on poorly performing managers, often underlies proposals for
financial sector reform. This paper tests the most influential explanation
of takeovers, the free cash flow theory of debt-financed restructuring,
against a comprehensive sample of large U.S. hostile takeovers from the
years 1978-89. The tests provide little support for the free cash flow
hypothesis: that over-retention of corporate resources, relative to
investment opportunities, would distinguish targets from other companies.
Firms with less debt are more likely to have been taken over. But this and
closely related evidence is more consistent with the idea that the
takeover and credit markets underwent a period of speculative overheating.
Thus the role played by hostile takeovers in the corporate restructuring
of the 1980s does not suggest that facilitating such activity should be a
goal of present day financial reforms, in Europe or elsewhere
Journal: Review of Political Economy
Pages: 381-402
Issue: 4
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050175091
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050175091
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:4:p:381-402
Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Bellofiore
Author-X-Name-First: Riccardo
Author-X-Name-Last: Bellofiore
Author-Name: Guglielmo Forges Davanzati
Author-X-Name-First: Guglielmo Forges
Author-X-Name-Last: Davanzati
Author-Name: Riccardo Realfonzo
Author-X-Name-First: Riccardo
Author-X-Name-Last: Realfonzo
Title: Marx Inside the Circuit: Discipline device, wage bargaining and unemployment in a sequential monetary economy
Abstract:
The aim of this paper is to show that Marxian labour theory of value can
be consistently interpreted in terms of the monetary circuit model, where
firms need initial finance to start production and where the money supply
is endogenous. In contrast to the recently revived Marxian monetary
models, in particular the New Interpretation, it is argued here that
although the money wage is bargained for on the labour market, the real
wage is determined by firms' choices, since firms autonomously determine
the structure of production and hence real consumption for the working
class as a whole. This does not mean that firms are able to set the real
wage without economic and social constraints. Starting from our circuitist
reading of the labour theory of value and distribution, a model is
developed in order to determine the level of employment and income
distribution, on the assumptions that (i) the industrial reserve army
affects wage bargaining and labour effort and that (ii) workers react to
the failure of their expectations on the real wage by reducing their work
intensity. In this context, it is shown that firms may increase their
share of profits over time only be means of innovations.
Journal: Review of Political Economy
Pages: 403-417
Issue: 4
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050175109
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050175109
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:4:p:403-417
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dunn
Author-X-Name-First: Stephen
Author-X-Name-Last: Dunn
Title: Fundamental Uncertainty and the Firm in the Long Run
Abstract:
Oliver Williamson claims that bounded rationality and 'behavioural
uncertainty' are principal factors influencing market-based transaction
costs. Post Keynesian economists typically distinguish between ergodic and
non-ergodic processes with the latter providing a technical definition of
'fundamental uncertainty'. Often, the salience of this fundamental
uncertainty has been ignored or conflated with bounded rationality and
behavioural uncertainty. Consequently, the richness and distinctness of
such concepts is much diminished. This paper shows that while bounded
rationality is a key behavioural assumption that may account for the
existence of high market-based transaction costs in an ergodic world, and
thus for the emergence of firms as distinct modes of economic
organisation, it may do so only in the short run. I demonstrate, however,
that non-ergodicity can be used to explain the existence of transaction
costs and thus firms in the long run.
Journal: Review of Political Economy
Pages: 419-433
Issue: 4
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050175118
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050175118
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:4:p:419-433
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Williams
Author-X-Name-First: Michael
Author-X-Name-Last: Williams
Title: Why Marx Neither Has Nor Needs a Commodity Theory of Money
Abstract:
This paper argues, contrary to the standard interpretation, that money in
Marx's theory is tied neither to bullion nor to any commodity basis. It is
rather the sole social form of value autonomous from use-value. This is
demonstrated by reference to Marx's account of the social functions of
money, and by showing that to subsume 'money' under 'commodity' commits a
category mistake within Marx's system. My argument is conceptual rather
than historical. It seeks to locate, not to deny, the role of 'gold' in
Marx's monetary theory. It has relevance to contemporary debates about the
need for some new 'gold-standard' to sustain the international monetary
system.
Journal: Review of Political Economy
Pages: 435-451
Issue: 4
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050175127
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050175127
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:4:p:435-451
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Flaschel
Author-X-Name-First: Peter
Author-X-Name-Last: Flaschel
Title: Keynes-Marx and Keynes-Wicksell Models of Monetary Growth: A framework for future analysis
Abstract:
This paper reconsiders and generalizes a dichotomizing two-sector real
growth model of Marglin which claims that the steady state of capitalist
economies is plagued by secular inflation. We show that this implication
need not be true from the perspective of a more general steady state
analysis and that the Marglin model can be embedded into a general
Keynes-Marx-Friedman or Keynes-Wicksell framework where money is
superneutral, where therefore inflation is due solely to excessive
monetary growth, where the private sector is basically asymptotically
stable and where there is a steady state rate of employment that differs
from the 'natural' rate of employment of monetarist models of inflation.
We consider this model a benchmark model that requires equally general
alternatives if the above implications are to be rejected.
Journal: Review of Political Economy
Pages: 453-468
Issue: 4
Volume: 12
Year: 2000
X-DOI: 10.1080/09538250050175136
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250050175136
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Handle: RePEc:taf:revpoe:v:12:y:2000:i:4:p:453-468
Template-Type: ReDIF-Article 1.0
Author-Name: James Forder
Author-X-Name-First: James
Author-X-Name-Last: Forder
Title: The Theory of Credibility and the Reputation-bias of Policy
Abstract:
The theory of policy credibility has been influential in both the design
of monetary policymaking institutions and in the implementation of policy.
In particular, the idea that 'reputation' is important has been widely
accepted. However, careful attention to the assumptions and implications
of the theory reveals many sources of doubt as to its empirical value.
First, the theory is implausible and, even if taken seriously, does not
point to many of the conclusions frequently supposed to be based on it.
Second, evidence suggests the theory is false. Third, even policymakers
who profess themselves concerned about the maintenance of credibility do
not behave consistently in the way the theory says they should. Although
many policy proposals ostensibly based on the theory of credibility
therefore seem to lack persuasive support, the idea of credibility still
poses a danger to effective policymaking since it creates motives for
excessively contractionary policy. Although it is frequently asserted that
monetary policy can have no long-term effects on economic performance, the
idea that a loss of 'reputation' will have lasting detrimental effects
appears to motivate much policy. In the absence of convincing arguments
that reputation - in its technical sense - is important, this would seem
to be undesirable and probably dangerous.
Journal: Review of Political Economy
Pages: 5-25
Issue: 1
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250150210559
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250150210559
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:5-25
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Philip
Author-X-Name-First: Bruce
Author-X-Name-Last: Philip
Title: Marxism, Neoclassical Economics and the Length of the Working Day
Abstract:
The intention of this paper is to provide an insight into historical and
contemporary conflict over the length of the working day by utilizing a
particular interpretation of Marx's theory of surplus-value.
Epistemological priority is given to labour time in examining conflict
over distribution and working conditions. Historical and recent evidence
is brought to bear to demonstrate the relevance of this conflict in the
context of recent debate over working hours in the EU in general and the
UK in particular.
Journal: Review of Political Economy
Pages: 27-39
Issue: 1
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250150210568
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250150210568
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:27-39
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Prasch
Author-X-Name-First: Robert
Author-X-Name-Last: Prasch
Title: The Economic Contributions of Robert A. Mundell
Abstract:
This is the second in a series of articles surveying the contributions of
recent recipients of the Nobel Memorial Prize in Economics. The 1999
recipient of the prize, Robert A. Mundell, has made important
contributions in several fields, including the theory of the monetary and
fiscal policy mix, the monetary approach to the balance of payments, the
theory of optimal currency areas and supply-side economics. This paper
provides an overview and critical evaluation of these contributions.
Journal: Review of Political Economy
Pages: 41-58
Issue: 1
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250150210577
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250150210577
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:41-58
Template-Type: ReDIF-Article 1.0
Author-Name: Theodore Burczak
Author-X-Name-First: Theodore
Author-X-Name-Last: Burczak
Title: Profit Expectations and Confidence: Some unresolved issues in the Austrian/Post-Keynesian debate
Abstract:
Austrian and Post-Keynesian economists both continue to make important
contributions to subjectivism in economics. Yet, as the ongoing debate
between members of the two schools demonstrates, Austrians and
Post-Keynesians have very different views about the possibility of
intertemporal coordination in a market economy. This paper returns to the
debate between Hayek and Keynes in order to respond to a contemporary
Austrian critique of Keynes's theory of expectations. The paper shows that
the fundamental difference between the two schools ultimately boils down
to the nature of conventional expectations and the question of confidence.
If the conventional expectation holds to assume the future will look
enough like the present to give investors confidence in their decisions,
Hayek's arguments about the possibility of intertemporal coordination
merit attention. If, however, this convention does not hold, as Keynes
thought was sometimes likely, the self-regulating potential of a market
economy is called into question.
Journal: Review of Political Economy
Pages: 59-80
Issue: 1
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250150210586
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250150210586
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:59-80
Template-Type: ReDIF-Article 1.0
Author-Name: Roger Koppl
Author-X-Name-First: Roger
Author-X-Name-Last: Koppl
Author-Name: William Butos
Author-X-Name-First: William
Author-X-Name-Last: Butos
Title: Confidence in Keynes and Hayek: Reply to Burczak
Abstract:
We agree with Burczak's identification of the crucial issues. We disagree
with his interpretation of them. We expand our defense of the claim that
Keynes was a rationalist. We introduce the "horizon principle" to critize
Keynes' dichotomy between short-term and long-term expectations. We
question the statistical simile guiding some Post Keynesian dsiscussions
of uncertainty. We point to the role of evolution in shaping conventions
that fit the economic environment in a world with novel events. We think
the evidence favors our view over Burczak's. Finally, we put in a plea for
framing the issues in a way that facilitates empirical testing.
Journal: Review of Political Economy
Pages: 81-86
Issue: 1
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250150210595
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250150210595
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:81-86
Template-Type: ReDIF-Article 1.0
Author-Name: Theodore Burczak
Author-X-Name-First: Theodore
Author-X-Name-Last: Burczak
Title: Response to Butos & Koppl: Expectations, exogeneity, and evolution
Abstract:
Journal: Review of Political Economy
Pages: 87-90
Issue: 1
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250150210603
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250150210603
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:87-90
Template-Type: ReDIF-Article 1.0
Author-Name: Warren Samuels
Author-X-Name-First: Warren
Author-X-Name-Last: Samuels
Title: Some Problems in the Use of Language in Economics
Abstract:
Journal: Review of Political Economy
Pages: 91-100
Issue: 1
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250150210612
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250150210612
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:91-100
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Runde
Author-X-Name-First: Jochen
Author-X-Name-Last: Runde
Title: On Stephen Parsons' Philosophical Critique of Transcendental Realism
Abstract:
This paper replies to Stephen Parsons' critique of Tony Lawson's
Economics and Reality recently published in this journal. The topics
addressed include Lawson's critique of empirical realism; Lawson's
definition of 'structures'; theories of truth; the relationship between
mainstream economics and empirical realism; and the possibility of
naturalism .
Journal: Review of Political Economy
Pages: 101-114
Issue: 1
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250150210621
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250150210621
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:101-114
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Parsons
Author-X-Name-First: Stephen
Author-X-Name-Last: Parsons
Title: A Response to the Claim 'There is no Problem for Transcendental Realism Here'
Abstract:
My review of Tony Lawson's book Economics and Reality sought to clarify
the nature of transcendental realism (TR) and indicate disagreements with
its claims. I thank Jochen Runde for taking the time and trouble to
respond to my review. Reading Runde's response made me aware that various
points in my initial review were possibly not as clearly formulated as
they could have been. I am thankful for the opportunity to remedy this
deficiency. I would like this response to be as constructive as possible.
To facilitate this, I will formulate a series of questions regarding areas
where I still feel clarification of the TR position would be beneficial.
Journal: Review of Political Economy
Pages: 115-123
Issue: 1
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250150210630
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250150210630
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:115-123
Template-Type: ReDIF-Article 1.0
Author-Name: S. Abu Turab Rizvi
Author-X-Name-First: S. Abu Turab
Author-X-Name-Last: Rizvi
Title: Preference Formation and the Axioms of Choice
Abstract:
Standard economic arguments assume that individual preferences satisfy
particular axioms of choice (e.g. transitivity or acyclicity). At the same
time, preferences are taken as given for purposes of analysis. However,
since preferences are formed, the process of formation will affect the
preferences created. This article argues that the process of preference
formation will not generally result in preferences satisfying the axioms
of choice. This result follows from considering preference formation as an
intrapersonal version of Sen's Paretian Liberal paradox. This result
requires a number of conditions, which are re-interpreted in the setting
of individual preference formation and are shown to be reasonable. Several
plausible examples show that the impossibility arises in uncontrived and
natural situations. The article then outlines the relation of these
arguments to other concerns about preference rankings. It concludes that
the burden carried in economics and in other disciplines by standard
preference rankings or utility functions is misplaced: such rankings are
likely to be available to individuals in straightforward circumstances. On
the other hand, these conclusions buttress arguments for a conception of
preferences that is richer than is possible in standard economics.
Journal: Review of Political Economy
Pages: 141-159
Issue: 2
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120036619
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120036619
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:2:p:141-159
Template-Type: ReDIF-Article 1.0
Author-Name: Heinz Kurz
Author-X-Name-First: Heinz
Author-X-Name-Last: Kurz
Author-Name: Neri Salvadori
Author-X-Name-First: Neri
Author-X-Name-Last: Salvadori
Title: Sraffa and von Neumann
Abstract:
This paper discusses the relationship between Piero Sraffa's 1960 book
and John von Neumann's 1937 paper on economic growth in the light of some
of the material contained in Sraffa's unpublished papers and
correspondence. It is argued that the two contributions share a similar
outlook and exhibit conceptual parallels; in fact, they can both be said
to belong to the 'classical' approach to the theory of value and
distribution. The latter is characterized, among other things, by an
asymmetric treatment of the distributive variables, the rate of return on
capital and the real wage rate. Sraffa's papers show that when he came
across the von Neumann model in the mid-1940s his own analysis was already
quite advanced, including his analysis of joint production. The paper also
contains an exchange of letters between John Richard Hicks and Sraffa on
some of the issues dealt with in the latter's book.
Journal: Review of Political Economy
Pages: 161-180
Issue: 2
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120036628
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120036628
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:2:p:161-180
Template-Type: ReDIF-Article 1.0
Author-Name: Rod Cross
Author-X-Name-First: Rod
Author-X-Name-Last: Cross
Author-Name: Douglas Strachan
Author-X-Name-First: Douglas
Author-X-Name-Last: Strachan
Title: Three Pillars of Conventional Wisdom
Abstract:
This paper considers three pillars of contemporary economic wisdom that
form part of the so-called 'Washington consensus': that free markets work
best; that price stability is a good thing; and that deregulated financial
markets work best. We argue that these propositions apply in certain
circumstances, but do not have general validity. After discussing the
circumstances in which these propositions do not hold we suggest how the
conventional policy wisdom should be revised.
Journal: Review of Political Economy
Pages: 181-200
Issue: 2
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120036637
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120036637
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:2:p:181-200
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Fleetwood
Author-X-Name-First: Steve
Author-X-Name-Last: Fleetwood
Title: Causal Laws, Functional Relations and Tendencies
Abstract:
This paper draws upon critical realism to argue that the widespread use
of functional relations and laws in economics is misconceived. This
misconception stems from the inappropriate use of a deductivist mode of
theorising; an empirical realist ontology; and a notion of causality as
mere regularity or constant conjunction, all of which are associated with
functional relations and laws. Not only does critical realism identify the
cause of the misconception, it sustains an alternative causal/explanatory
mode of theorising; a stratified ontology; a notion of causality as
powers; and an alternative notion of law as tendency. Marx's ideas on the
tendencies to employment and unemployment are used as an example of
economic theory consistent with these alternatives.
Journal: Review of Political Economy
Pages: 201-220
Issue: 2
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120036646
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120036646
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:2:p:201-220
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Tomass
Author-X-Name-First: Mark
Author-X-Name-Last: Tomass
Title: Incommensurability of Economic Paradigms: A case study of the monetary theories of Mises and Marx
Abstract:
Influenced by postmodern philosophy, economists have held that
substantive propositions made by rival schools of economics are parts of
'incommensurable paradigms'. The incommensurability thesis implies that
one cannot cross evaluate or adjudicate between substantive propositions
made within rival paradigms. This paper provides a framework to examine
the tenets of the incommensurability thesis through a comparative case
study of the rival monetary theories of Ludwig von Mises and Karl Marx.
Section 1 presents the case for the incommensurability of economic
paradigms as postmodernists and their predecessors assert. It defines
three elements that constitute an economic paradigm— starting
points, methodological procedures, and conceptual schemes. Sections 2, 3
and 4 examine whether the three paradigmatic elements in the monetary
theories of Mises and Marx are incommensurable. Section 5 concludes by
drawing implications for paradigm (in)commensurability.
Journal: Review of Political Economy
Pages: 221-243
Issue: 2
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120036655
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120036655
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:2:p:221-243
Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Signorino
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Signorino
Title: On the Limits to the Long-Period Method in Classical Economics: A note
Abstract:
On a first reading of Theory of Production, Kurz & Salvadori (1995)
appear to confine the empirical domain of the long-period models of the
classical theory of value and distribution to stationary economies with
non-constant returns to scale and to growing economies with constant
returns to scale. Such a reading is shown to be untenable since it merges
the two levels of exploring the extension of a model and of testing a
theoretical hypothesis. Conversely, the way Kurz & Salvadori tackle the
problems of price dynamics and returns to scale in growing economies is
shown to be compatible with what appears to be Sraffa's (implicit)
strategy of research.
Journal: Review of Political Economy
Pages: 245-251
Issue: 2
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120036664
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120036664
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:2:p:245-251
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Carabelli
Author-X-Name-First: Anna
Author-X-Name-Last: Carabelli
Author-Name: Nicolo De Vecchi
Author-X-Name-First: Nicolo
Author-X-Name-Last: De Vecchi
Title: Hayek and Keynes: From a common critique of economic method to different theories of expectations
Abstract:
The methodological positions of Hayek and Keynes contain striking
similarities. Both authors opposed empiricist approaches to economics that
assign priority to mere observation as the source of knowledge. Both
emphasised intentionality, motivation and human agency. Notwithstanding
this common ground, they had different conceptions of how beliefs are
formed and had different explanations of thought and action in economics.
Hayek grounded his explanation on an evolutionary theory of the mind, i.e.
on psychological premises, whereas Keynes based his view of belief
formation on probable reasoning, where probability is a logical concept.
Starting from psychological premises Hayek maintained that individuals act
rationally only by following rules. As a consequence, he considered
conventional expectations to be the primary guide for agents in economic
life. Keynes agreed that conventional expectations actually guide economic
behaviour, but he maintained that they are justified only in situations of
total ignorance. In conditions of limited knowledge, agents can base their
action on reasonable expectations, independently of conventions. Moreover,
agents—particularly those institutions responsible for economic
policy—ought to shun conventional behaviour in order to counteract
its negative social consequences. We argue that Keynes's theory of
expectations is well grounded upon his theory of logical probability.
Hence his advocacy of discretionary policy is rationally justified.
Journal: Review of Political Economy
Pages: 269-285
Issue: 3
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120055140
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120055140
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:3:p:269-285
Template-Type: ReDIF-Article 1.0
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: Cambridge's Contribution to Endogenous Money: Robinson and Kahn on credit and money
Abstract:
It is often claimed by American Post Keynesians that the theories of
endogenous money originated in the mid-1950s as a result of articles
published by Nicholas Kaldor and Hyman Minsky. This paper offers another
possibility. It argues that, in the mid-1950s, both Joan Robinson and
Richard Kahn offered insights into the workings of a credit economy that
have been largely ignored by Post Keynesians and that are consistent with
Post Keynesian monetary theory.
Journal: Review of Political Economy
Pages: 287-307
Issue: 3
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120055159
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120055159
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:3:p:287-307
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Cronin
Author-X-Name-First: Bruce
Author-X-Name-Last: Cronin
Title: Productive and Unproductive Capital: A mapping of the New Zealand system of national accounts to classical economic categories, 1972-95
Abstract:
New Zealand has gained considerable international attention for the
neo-liberal economic reform programme it enacted from the mid-1980s; this
programme has served as a model for similar reform elsewhere. Within the
neoclassical framework of the reformers, the programme has produced many
improvements to the economy. Such fundamental indicators as lower
inflation, lower budget deficits and higher economic growth are cited as
evidence of the improved economic conditions. Yet unemployment remains
high, real interest rates are among the highest in the world, nominal
interest rates and business confidence fluctuate considerably, and the
balance of payments is deteriorating. Using a classical framework, this
paper examines the neo-liberal reform of the New Zealand economy to see if
there are alternative explanations for the persistence of these problems.
The methodology developed by Shaikh & Tonak (1994) is used to map official
national accounts data to classical economic categories for the 1972 to
1995 period. This approach is compared with earlier attempts at estimating
classical economic categories for New Zealand. This classical view of the
economic reforms is compared with the conventional view. The paper's main
results are that there was a large increase in unproductive economic
activity associated with the economic reforms in New Zealand; that the
improvement in economic fundamentals emphasised by the reformers reflects
this growth of unproductive activity; and that the persistence of other
economic indicators is related to the ongoing weakness of productive
activity.
Journal: Review of Political Economy
Pages: 309-327
Issue: 3
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120055168
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120055168
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:3:p:309-327
Template-Type: ReDIF-Article 1.0
Author-Name: Ghassan Dibeh
Author-X-Name-First: Ghassan
Author-X-Name-Last: Dibeh
Title: Time Delays and Business Cycles: Hilferding's model revisited
Abstract:
This paper develops a Marxian model of the business cycle based on
Hilferding's theory of disproportionality in capital accumulation in a
two-sector economy. The disproportionality arises from the existence of
time delays in production generated by the differential capital intensity
in the two sectors. The time delays produce an asymmetric price structure
that causes overproduction and crisis. The model is constructed using
delay-differential equations. Numerical simulations show that the model
produces an economy-wide business cycle phenomenon. The domain of the time
delay parameter is investigated, and shows that the model produces a wide
variety of dynamics from monotonic convergence to explosive oscillations.
Moreover, the solution shows that intersectoral investment flows transmit
the instability in capital accumulation and that longer time delays
produce higher cycle amplitudes.
Journal: Review of Political Economy
Pages: 329-341
Issue: 3
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120055177
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120055177
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:3:p:329-341
Template-Type: ReDIF-Article 1.0
Author-Name: Matias Vernengo
Author-X-Name-First: Matias
Author-X-Name-Last: Vernengo
Title: Sraffa, Keynes and 'The Years of High Theory'
Abstract:
This paper argues that Shackle's interpretation of 'the years of high
theory' is flawed. Shackle (1967) sees Sraffa's critique of the
Marshallian theory of value only as a step in the development of the
theory of imperfect competition. In the same vein, Shackle reduces the
message of Keynes's General Theory to the claim that unemployment results
from the existence of uncertainty and irrational expectations. Thus,
Shackle leaves open the possibility that both Sraffa's critique of
Marshall and Keynes's theory of effective demand do not question the
internal coherence of neoclassical theory, but instead merely assert that
market imperfections render it irrelevant for the analysis of the real
world. This paper argues, in contrast, that the theories of Sraffa and
Keynes should be interpreted as radical departures from marginalism, and
represent a return to the surplus approach of classical political economy.
Journal: Review of Political Economy
Pages: 343-354
Issue: 3
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120055186
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120055186
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:3:p:343-354
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Ravagnani
Author-X-Name-First: Fabio
Author-X-Name-Last: Ravagnani
Title: Notes on a Mischaracterization of the Classical Theory of Value
Abstract:
This paper discusses the widespread view that the classical determination
of relative prices is closely connected to the study of the conditions
allowing for the 'reproduction' of the economy. It is argued that this
view obscures the generality of Sraffa's contribution and, furthermore,
that it does not provide a solid criterion for distinguishing the
classical from the marginalist approach to the theory of value.
Journal: Review of Political Economy
Pages: 355-363
Issue: 3
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120055173
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120055173
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:3:p:355-363
Template-Type: ReDIF-Article 1.0
Author-Name: Duncan Foley
Author-X-Name-First: Duncan
Author-X-Name-Last: Foley
Title: Value, Distribution and Capital: A review essay
Abstract:
Journal: Review of Political Economy
Pages: 365-381
Issue: 3
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120055195
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120055195
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:3:p:365-381
Template-Type: ReDIF-Article 1.0
Author-Name: Deborah Figart
Author-X-Name-First: Deborah
Author-X-Name-Last: Figart
Title: Wage-setting under Fordism: The rise of job evaluation and the ideology of equal pay
Abstract:
The use of job evaluation techniques during the Fordist period has been
relatively neglected by political economists. Widely adopted in the 1940s
by the large manufacturing firms that constituted the dynamic sector of
industry, job evaluation helped to restructure relations between
management and labor. As mass production replaced craft production,
employers sought to pay their workers on the basis of 'deskilled' job
content. Job evaluation was also a not-so-subtle repudiation of bargaining
power, determining 'the rate for the job' on the basis of internal
hierarchies and market wage surveys rather than collective negotiations.
However, the practice of job evaluation also rested on a theory of wage
determination that set wages according to the principle of equal pay for
equal work. That is, wages were based on the attributes of the job rather
than the individual incumbent. The process of reconciling equal pay as
ideology with preexisting gender wage disparities resulted in a narrow
definition of equal work.
Journal: Review of Political Economy
Pages: 405-425
Issue: 4
Volume: 13
Year: 2001
X-DOI: 10.1080/0953825012009935
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825012009935
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:4:p:405-425
Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Stirati
Author-X-Name-First: Antonella
Author-X-Name-Last: Stirati
Title: Inflation, Unemployment and Hysteresis: An alternative view
Abstract:
This paper integrates ideas concerning the influence of the interest rate
on the rate of profits with an analysis of inflation and its relation with
unemployment. Inflation is regarded, as in Kaleckian contributions, as
resulting from inconsistent claims on income, but the approach taken leads
to different conclusions concerning the effects of inflation (or
deflation) on income distribution, and the circumstances giving rise to
acceleration of inflation. The approach followed in the paper also
provides explanations of phenomena that have appeared 'puzzling',
particularly the association of different unemployment rates with stable
inflation, and the persistence of high rates of unemployment.
Journal: Review of Political Economy
Pages: 427-451
Issue: 4
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120099944
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120099944
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:4:p:427-451
Template-Type: ReDIF-Article 1.0
Author-Name: George Argitis
Author-X-Name-First: George
Author-X-Name-Last: Argitis
Title: Intra-capitalist Conflicts, Monetary Policy and Income Distribution
Abstract:
This paper investigates Marx's monetary analysis of the role of the
interest rate in the distribution of surplus-value. It is argued that Marx
allowed the interest rate to directly influence the distribution of
surplus-value between enterprise profit and interest. Moreover, he thought
the interest rate to be subject to the conflict between industrial and
money capitalists. Recent developments in Sraffian and neo-Marxian
literature provide the foundations for a Marxian analytical framework that
allows intra-capitalist conflict, monetary policy and the interest rate to
affect the intra-capitalist and the inter-class income distribution.
Journal: Review of Political Economy
Pages: 453-470
Issue: 4
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120099953
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120099953
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:4:p:453-470
Template-Type: ReDIF-Article 1.0
Author-Name: David Laibman
Author-X-Name-First: David
Author-X-Name-Last: Laibman
Title: Non-constant Returns, Pareto Optimality and Competitive Equilibrium
Abstract:
Competitive equilibrium is not Pareto optimal if returns to scale are not
constant, except in special and accidental circumstances. This result is
demonstrated using a classical production model; it holds quite generally
and independently of all other sources of Pareto inefficiency, such as
externalities, imperfect information and quantity constraints. It
establishes a general and ubiquitous basis for critique of the 'invisible
hand' ideology, which still dominates both the textbooks and wider reaches
of social thought.
Journal: Review of Political Economy
Pages: 471-481
Issue: 4
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120099962
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120099962
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:4:p:471-481
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Walters
Author-X-Name-First: Bernard
Author-X-Name-Last: Walters
Author-Name: David Young
Author-X-Name-First: David
Author-X-Name-Last: Young
Title: Critical Realism as a Basis for Economic Methodology: A critique
Abstract:
This paper considers the claim that critical realism provides a
convincing critique of mainstream economics and offers a sound
methodological basis for an alternative approach. It argues that critical
realism presents a tendentious definition of positivism and a
characterisation of mainstream economics that is misleading, and that it
misrepresents the nature and purpose of the work of Hume and modern Humean
philosophers. It also argues that critical realism's bold ontological
claims lack epistemological support. The paper concludes that critical
realism does not provide a compelling basis for economic methodology.
Journal: Review of Political Economy
Pages: 483-501
Issue: 4
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120099971
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120099971
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:4:p:483-501
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Mongiovi
Author-X-Name-First: Gary
Author-X-Name-Last: Mongiovi
Title: The Cambridge Tradition in Economics: An interview with G. C. Harcourt
Abstract:
Geoffrey Colin Harcourt has devoted a long and fruitful career to the
development of themes associated with the Cambridge and Post-Keynesian
traditions in economics. He is perhaps best known for his survey of the
Cambridge capital theory debates (1972); but he has written widely on
growth and investment, on effective demand, on pricing and distribution,
and on the history of economics in the twentieth century. He has also
written extensively on policy (2001a) and was a 'back room boy' for the
Australian Labor Party for many years. During the Vietnam War, Harcourt
was a leader of the anti-war movement in South Australia. The following
interview focuses on the evolution of, and prospects for, the Cambridge
tradition that stems from the work of John Maynard Keynes, Piero Sraffa,
Joan Robinson, Richard Kahn, Nicholas Kaldor and Michal Kalecki. The
interview took place in Professor Harcourt's rooms in Jesus College,
Cambridge, on 5 September 2000.
Journal: Review of Political Economy
Pages: 503-521
Issue: 4
Volume: 13
Year: 2001
X-DOI: 10.1080/09538250120099980
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120099980
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:4:p:503-521
Template-Type: ReDIF-Article 1.0
Author-Name: David Levine
Author-X-Name-First: David
Author-X-Name-Last: Levine
Title: Political Economy and the Idea of Development
Abstract:
This paper explores the questions: what are the main organizing concepts
of the older political economy of Smith and Marx; and how do they differ
from those typical of more recent work in political economy? Special
emphasis is placed on the importance of an idea of development in the
older political economy, and on how that idea has been replaced in the
newer political economy by notions of power and interest. The paper
considers how the absence of a concept of development in the newer
versions of political economy limits the scope and depth of these
versions. Recent criticism of the idea of development is also considered.
In light of this criticism, the paper considers weaknesses in the concept
of development in the older political economy. However, rather than fully
accepting the critique of the idea of development, the paper suggests that
weaknesses in the classical construction can be corrected by paying closer
attention to how we understand the ends of the development process.
Journal: Review of Political Economy
Pages: 523-536
Issue: 4
Volume: 13
Year: 2001
X-DOI: 10.1080/0953825012009999
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825012009999
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Handle: RePEc:taf:revpoe:v:13:y:2001:i:4:p:523-536
Template-Type: ReDIF-Article 1.0
Author-Name: William Miles
Author-X-Name-First: William
Author-X-Name-Last: Miles
Title: The Barings Crisis in Argentina: The role of exogenous European money market factors
Abstract:
The Barings crisis of 1890 was a wrenching financial crash and recession
for Argentina. The episode is similar in many respects to the balance of
payments difficulties in emerging markets during the 1990s. In particular,
it serves as an example of the dangers of investment that is exogenous to
the capital-importing, developing country, as opposed to investment driven
by country-specific conditions. While some external factors, such as
competition among European merchant banks, have been examined for their
role in pushing capital into the South American nation, no paper has yet
examined the specific conditions in European money markets as the boom
began. This paper fills that gap. An examination of financial variables
reveals that returns were low and financial investment opportunities few
in England, which motivated capital to leave the country. This situation
resembles the early 1990s, when interest rates were low in the USA and
Japan, and capital went to emerging markets in search of higher
compensation. Likewise, British interest rates and other indicators were
low in the 1880s, providing motives for capital to go abroad. These
incentives were sufficiently strong that warning signs from Argentina were
ignored, thus leading to the crash.
Journal: Review of Political Economy
Pages: 5-29
Issue: 1
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250120102741
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120102741
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:1:p:5-29
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Dalziel
Author-X-Name-First: Paul
Author-X-Name-Last: Dalziel
Title: New Zealand's Economic Reforms: An assessment
Abstract:
New Zealand's economic policy between 1984 and 1996 is often hailed as an
example of comprehensive supply-side reform that successfully improved the
performance of a weak economy. In contrast, this paper presents
statistical evidence to show that: (1) New Zealand sacrificed a large
volume of real per capita gross domestic product after 1987; (2) its
average unemployment rate increased substantially after 1988; (3) labour
productivity growth declined after 1992; and (4) the per capita real
income of low-income households in 1996 was more than 3% lower in absolute
terms than it had been in 1984. The paper concludes that the economic
reform programme did not achieve the objectives expected at its launch.
Journal: Review of Political Economy
Pages: 31-46
Issue: 1
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250120102750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120102750
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:1:p:31-46
Template-Type: ReDIF-Article 1.0
Author-Name: Mathew Forstater
Author-X-Name-First: Mathew
Author-X-Name-Last: Forstater
Title: Bones for Sale: 'Development', environment and food security in East Africa
Abstract:
Maasai pastoralism has been characterized historically by highly
developed herd and rangeland management techniques and social and cultural
institutions at the intra- and inter-community levels that have provided
security against shocks such as drought, crop failure and epidemic
disease. Key to pastoral production was that herd management and milk
production were the domain of the individual domestic units--the household
or the homestead--while rights to pasture and water resources were
communal so as to guarantee access to both dry and wet season grazing. It
is this combination of individual and communal resources and inter- and
intra-community relations that enabled pastoralism to thrive for
millennia. It will be argued that the failure of colonial and neocolonial
'development' policies to recognize these key features of Maasai
pastoralism has been at the root of both the crisis of land degradation
and the undermining of Maasai and East African food security.
Journal: Review of Political Economy
Pages: 47-67
Issue: 1
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250120102769
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120102769
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:1:p:47-67
Template-Type: ReDIF-Article 1.0
Author-Name: Carolyn Heinrich
Author-X-Name-First: Carolyn
Author-X-Name-Last: Heinrich
Author-Name: Jeffrey Wenger
Author-X-Name-First: Jeffrey
Author-X-Name-Last: Wenger
Title: The Economic Contributions of James J. Heckman and Daniel L. McFadden
Abstract:
This paper analyzes the economic contributions of Daniel L. McFadden and
James J. Heckman, who were awarded the Nobel Prize in economic science in
2000. McFadden's analytical work on discrete choices and related theory
brings economic tools to bear on policy questions that previously had not
been empirically investigated. The multinomial logit and similar models
developed by McFadden enable researchers to empirically model factors that
affect individual choices (e.g. of travel mode, occupation or employment,
and residential location) with discrete outcomes. Heckman's research on
selective samples demonstrates the difficulty of achieving generalizable
results in analyses of choice-based behavior. In addition, his work on the
evaluation of social programs has challenged conventional beliefs about
the infallibility of experimental evaluation results and explored the
limits and potential of non-experimental methodologies in a range of
social science applications.
Journal: Review of Political Economy
Pages: 69-89
Issue: 1
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250120102778
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120102778
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:1:p:69-89
Template-Type: ReDIF-Article 1.0
Author-Name: Flavio Comim
Author-X-Name-First: Flavio
Author-X-Name-Last: Comim
Title: The Scottish Tradition in Economics and the Role of Common Sense in Adam Smith's Thought
Abstract:
This essay examines the notion of a 'Scottish Tradition' and the role of
common sense in Adam Smith's thought. It is a contribution to the
contemporary literature on the 'Scottish Approach' and on the historical
investigation of Adam Smith's intellectual background. It argues that a
notion of common sense was behind Smith's view of science and that it may
provide an epistemological foundation for the Scottish Tradition. The
essay attempts to show how the notion of common sense may be seen as a way
of emphasising the role of reason and judgement in the conceptualisation
of phenomena with pragmatic and aesthetic content.
Journal: Review of Political Economy
Pages: 91-114
Issue: 1
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250120102787
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120102787
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:1:p:91-114
Template-Type: ReDIF-Article 1.0
Author-Name: Tamotsu Nakamura
Author-X-Name-First: Tamotsu
Author-X-Name-Last: Nakamura
Title: 'The Principle of Increasing Risk': Kalecki's investment theory revisited
Abstract:
This paper reformulates Kalecki's investment models based on 'the
principle of increasing risk'. First, it is shown that in his model risk
can be interpreted as a conditional probability of bankruptcy of a firm,
or the 'hazard rate' in reliability theory. Secondly, a simple static
Kaleckian investment model is developed based on this interpretation. In
the model, a slightly modified Kaleckian optimality condition for
investment holds. It is also shown that, as Kalecki correctly pointed out,
the principle of falling marginal efficiency of capital (or investment) is
not required to obtain a finite level of investment. Finally, I consider
sequential investment in an intertemporal model. In this model, a modified
version of the Kaleckian optimality condition determines investment. In
addition, as Kalecki emphasized, his increasing risk limits the level of
investment even without increasing and convex adjustment costs associated
with investment, by which the finite rate of investment is derived in the
macroeconomics literature.
Journal: Review of Political Economy
Pages: 115-123
Issue: 1
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250120102796
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120102796
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:1:p:115-123
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Cesaratto
Author-X-Name-First: Sergio
Author-X-Name-Last: Cesaratto
Title: The Economics of Pensions: A non-conventional approach
Abstract:
This paper examines two alternative pension systems, pay-as-you-go
(PAYGS) and the capitalisation system (CS) in the light of alternative
economic theories. It starts from a critical discussion of the
insurance-fiction model of PAYGS proposed by Samuelson in 1958. The pros
and cons of that model are illustrated by taking into consideration the
non-orthodox views of Keynes, Lerner, Pechman, de Finetti and Eisner.
Next, the paper investigates the relationship between CS and the
marginalist capital theory. It is shown that, interpreted in a
neoclassical framework, CS presents endogenous mechanisms of adjustment to
demographic shocks. The problems of the transition between PAYGS and CS
are then examined. The paper then discusses some main features of the
current US policy debates on the Social Security system. Finally, the
alleged advantages of a wider adoption of CS are criticised in the light
of the Keynesian theory of effective demand reinforced by the Sraffian
criticism of neoclassical capital theory.
Journal: Review of Political Economy
Pages: 149-177
Issue: 2
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220126492
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220126492
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:2:p:149-177
Template-Type: ReDIF-Article 1.0
Author-Name: Korkut Erturk
Author-X-Name-First: Korkut
Author-X-Name-Last: Erturk
Title: Revisiting the Old Theory of Cyclical Growth: Harrod, Kaldor cum Schumpeter
Abstract:
This paper advances two main arguments. First, it argues that Harrodian
instability can be thought of as the motor force of long period expansions
and contractions. This means that the virtuous cycle of an ever-increasing
growth rate during the upturn of a long cycle can be seen as a process of
runaway expansion, caused by an actual growth rate above the warranted
rate. Likewise, the vicious cycle of an ever-deepening downsizing can be
interpreted as resulting from an actual growth rate below the warranted
rate. Secondly, by showing how a revised Harrodian model can yield a limit
cycle in the rate of accumulation, the paper argues that the turning
points in these long cycles can be explained by a nonlinear Kaldorian
savings function and a variable scrapping rate.
Journal: Review of Political Economy
Pages: 179-192
Issue: 2
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220126500
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220126500
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:2:p:179-192
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Dietrich
Author-X-Name-First: Michael
Author-X-Name-Last: Dietrich
Title: The Contested Sovereignty of the Firm
Abstract:
This paper suggests that the firm can be analysed as a regulated system
of contested sovereignty. The economic literature on the firm is
categorised in terms of four different perspectives on sovereignty
identified using the twin factors of power and authority. But rather than
any single perspective being identified as analytically superior, it is
argued that a system of contested sovereignty should be based on all four
perspectives. Following this, a Polanyi-inspired analysis of firm
regulation is presented in which the regulation of the firm emerges to
control the costs of free markets. However, this regulation depicts firm
sovereignty as complex and contested rather than simply an optimal
response to market failures.
Journal: Review of Political Economy
Pages: 193-209
Issue: 2
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220126519
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220126519
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:2:p:193-209
Template-Type: ReDIF-Article 1.0
Author-Name: Hansjorg Klausinger
Author-X-Name-First: Hansjorg
Author-X-Name-Last: Klausinger
Title: A Note on the Stability of Full Employment
Abstract:
This note investigates the stability properties of the Keynesian
macro-model under the assumption of slow adjustment of nominal wages and
expectations of inflation. First, the stability conditions of the
'flexible-interest-rate regime' are related to those derived by Cagan
(1956) and Tobin (1975), emphasising the potentially destabilising effect
of wage flexibility. Then, taking the restriction of a zero floor to the
nominal interest rate into account it is shown that the model exhibits
'corridor stability'. From this follows the conjecture that increasing the
rate of steady-state inflation makes it 'more probable' that the system
returns to full-employment after a shock of given size.
Journal: Review of Political Economy
Pages: 211-225
Issue: 2
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220126528
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220126528
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:2:p:211-225
Template-Type: ReDIF-Article 1.0
Author-Name: Bingyuang Hsiung
Author-X-Name-First: Bingyuang
Author-X-Name-Last: Hsiung
Author-Name: J. Patrick Gunning
Author-X-Name-First: J. Patrick
Author-X-Name-Last: Gunning
Title: Ronald Coase's Method of Building More Realistic Models of Choice
Abstract:
This paper argues that Ronald Coase's major contributions to economic
theory are best understood in terms of the distinct method he used to
build more realistic models of choice. We call his method the
benchmark-comparison method. It consists of building models of choice and
then using them as benchmarks in the further investigation of economic
interaction, either by comparing the benchmark models with observed
interaction or by building additional models of choice, which may
themselves function as benchmarks. The paper first describes the method
then demonstrates how Coase used it in his two most famous papers. We go
on to show how an understanding of the method confirms Coase's own
statements about the continuity of his thought. Finally, we assess Coase's
critique of Milton Friedman's positivist methodology and discuss a recent
paper on Coase's methodology.
Journal: Review of Political Economy
Pages: 227-239
Issue: 2
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220126537
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220126537
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:2:p:227-239
Template-Type: ReDIF-Article 1.0
Author-Name: Sven Larson
Author-X-Name-First: Sven
Author-X-Name-Last: Larson
Title: Uncertainty and Consumption in Keynes's Theory of Effective Demand
Abstract:
Keynesian uncertainty normally exercises influence over effective demand
via private investment. This paper expands the scope of influence of
uncertainty to comprise private consumption as well. When private spending
is explicitly made subject to uncertainty the individual consumer is
forced to take active steps to make the future predictable. Contracted,
sticky money prices are key tools in the consumer's efforts to keep
uncertainty at a minimum and match earnings with consumption costs.
However, even if prices are successfully contracted there is still need
for preparedness against contingencies. Consumers therefore regulate their
propensity to consume with reference to their confidence in the future:
the propensity to consume is high when confidence is strong and low when
confidence is weak. Because of its effect on the propensity to consume,
consumer confidence exercises a significant influence on macroeconomic
activity in general.
Journal: Review of Political Economy
Pages: 241-258
Issue: 2
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220126546
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220126546
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:2:p:241-258
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Donoghue
Author-X-Name-First: Mark
Author-X-Name-Last: Donoghue
Title: The Economic Writings of William Thomas Thornton: A review article
Abstract:
The Economic Writings of William Thomas Thornton makes available numerous
out-of-print books and articles by an important economist whose work has,
until recently, been neglected by historians of economic thought. The
collection, which is by no means complete, helps cement Thornton's
reputation and restores his rightful place in the history of economics.
This article discusses the collection's main strengths and weaknesses, and
draws particular attention to the contemporary relevance of Thornton's
work in the light of recent controversies surrounding his place in the
annals of economic science, and to certain aspects of his successful East
India Company career.
Journal: Review of Political Economy
Pages: 259-267
Issue: 2
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220126555
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220126555
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:2:p:259-267
Template-Type: ReDIF-Article 1.0
Author-Name: Heather Boushey
Author-X-Name-First: Heather
Author-X-Name-Last: Boushey
Title: Reworking the Wage Curve: Exploring the consistency of the model across time, space and demographic group
Abstract:
This paper extends Blanchflower & Oswald's (1994) work on the wage curve
to the 50 largest metropolitan areas in the United States. The wage curve
is more elastic in US metropolitan areas than prior research shows for the
nation as a whole, and the wage curve varies over the business cycle,
becoming more elastic in periods of higher unemployment. The most striking
finding is that black workers have a more elastic wage curve than do white
workers. Estimating the wage curve with the non-employment rate, a measure
of underemployment, shows elasticities that are substantially higher than
for wage curves estimated with the unemployment rate. This trend further
increases the negative effects on pay for blacks, who are more likely than
white workers to be underemployed.
Journal: Review of Political Economy
Pages: 293-311
Issue: 3
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220147859
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220147859
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:3:p:293-311
Template-Type: ReDIF-Article 1.0
Author-Name: David Spencer
Author-X-Name-First: David
Author-X-Name-Last: Spencer
Title: Shirking the Issue? Efficiency wages, work discipline and full employment
Abstract:
This paper assesses recent neoclassical and radical contributions to the
analysis of unemployment as a labour disciplinary device, in particular,
those of Shapiro & Stiglitz and Bowles & Gintis. These authors share a
common set of premises, notably on the conception of the effort decision,
that present severe obstacles to the understanding of productivity
constraints on full employment. The models of Shapiro & Stiglitz and
Bowles & Gintis identify a specific 'asymptote problem' in which the
achievement of full employment immediately triggers infinite (and hence
unsustainable) wage increases. The premise that workers find work
subjectively costly to perform effectively rules out the possibility for
full employment. But this view fails to take into account the actual
constitution of work motives. To the extent that work effort may be
induced independently of dismissal threats, high work intensity may in
fact be undermined by high unemployment. By taking work avoidance as
given, the labour extraction literature forecloses consideration of the
possibilities offered by alternative work organisation for removing
unemployment as a worker disciplinary device.
Journal: Review of Political Economy
Pages: 313-327
Issue: 3
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220147868
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220147868
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:3:p:313-327
Template-Type: ReDIF-Article 1.0
Author-Name: Fikret Adaman
Author-X-Name-First: Fikret
Author-X-Name-Last: Adaman
Author-Name: Pat Devine
Author-X-Name-First: Pat
Author-X-Name-Last: Devine
Title: A Reconsideration of the Theory of Entrepreneurship: A participatory approach
Abstract:
The aim of this paper is to further the understanding of the relationship
between entrepreneurial success and organisational form. The role of
entrepreneurship in the neoclassical, Austrian and competence theory
approaches is analysed and five recurring themes are identified: the tacit
nature of knowledge relevant for entrepreneurial activity; the presence of
tacit knowledge at both the individual and organisational levels; the
articulation of tacit knowledge through social processes; the distinction
between the entrepreneur and the capitalist; and the motivation for
engaging in entrepreneurial activity. Characteristics of the
organisational context that emerge as necessary for entrepreneurial
success are set out, an organisational framework promoting generalised
participation in entrepreneurial activity is outlined and this is then
evaluated in comparison with a capitalist system.
Journal: Review of Political Economy
Pages: 329-355
Issue: 3
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220147877
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220147877
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:3:p:329-355
Template-Type: ReDIF-Article 1.0
Author-Name: Harvey Gram
Author-X-Name-First: Harvey
Author-X-Name-Last: Gram
Title: Comment on 'Capacity Utilization, Foreign Portfolio Investment and International Debts and Deficits'
Abstract:
The linear structure of the model in Mertzanis (2000) points to errors in
his Table 1. In a number of cases, inequality constraints on the model's
endogenous variables are violated. Satisfying all constraints imposes
restrictions on the model's parameters. The focus here is on wage shares
which must be restricted to ensure a meaningful solution. Depending on
savings propensities, full utilization of capital at a higher interest
rate may require higher rather than lower wage shares in one or both
countries.
Journal: Review of Political Economy
Pages: 357-377
Issue: 3
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220147886
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220147886
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:3:p:357-377
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Hans Matthews
Author-X-Name-First: Peter Hans
Author-X-Name-Last: Matthews
Author-Name: Andreas Ortmann
Author-X-Name-First: Andreas
Author-X-Name-Last: Ortmann
Title: An Austrian (Mis)Reads Adam Smith: A critique of Rothbard as intellectual historian
Abstract:
Murray Rothbard's posthumous Economic Thought Before Adam Smith is
notable for its vilification of 'the quiet Scottish professor.' While
there is little disagreement that Smith was, at best, an ambivalent
champion of free markets, Rothbard's indictment of him as a proto-Marxist
is less than persuasive. We argue that Rothbard's book suffers from
logical flaws, selective and incomplete textual evidence, a
misunderstanding of Das Adam Smith Problem and the relevant literature,
and an unawareness of modern incentive-based theories of the firm and
state anticipated in Book V of The Wealth of Nations.
Journal: Review of Political Economy
Pages: 379-392
Issue: 3
Volume: 14
Year: 2002
X-DOI: 10.1080/09538250220147895
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250220147895
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:3:p:379-392
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Author-Name: Gale Summerfield
Author-X-Name-First: Gale
Author-X-Name-Last: Summerfield
Title: Sen and Capabilities
Abstract:
Journal: Review of Political Economy
Pages: 429-434
Issue: 4
Volume: 14
Year: 2002
X-DOI: 10.1080/0953825022000009889
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825022000009889
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:4:p:429-434
Template-Type: ReDIF-Article 1.0
Author-Name: Des Gasper
Author-X-Name-First: Des
Author-X-Name-Last: Gasper
Title: Is Sen's Capability Approach an Adequate Basis for Considering Human Development?
Abstract:
Sen's capability approach (SCA) has supported valuable work on Human
Development (HD). It has brought attention to a much wider range of
information on people's freedoms and well-being than in most earlier
economic planning; but it also has troubling features and requires
modification and enrichment. This paper first identifies the approach's
components, the contributions of the HD Reports, and the doubts about
whether SCA has a sufficient conception of human personhood to sustain
work on HD beyond finding indices superior to GDP. It then examines SCA's
central concepts. The concepts of capability and functioning lead us to
consider both possibilities and outcomes, but their definition and use has
been confusing. Besides Sen's opportunity concept of 'capability' we must
distinguish skills and potentials; and distinguish levels and types of
'functioning'. To understand both consumerism and what can motivate and
drive more humanly fulfilling development, we must elaborate different
aspects and sources of 'well-being' and the content and requirements of
'agency', more than in Sen's chosen strategy. SCA's priority category of
opportunity-capability must be read as a measure of personal advantage
relevant in many public policy situations, rather than as a theory of
well-being; and its concept of freedom must be partnered by concepts of
reason and need.
Journal: Review of Political Economy
Pages: 435-461
Issue: 4
Volume: 14
Year: 2002
X-DOI: 10.1080/0953825022000009898
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825022000009898
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:4:p:435-461
Template-Type: ReDIF-Article 1.0
Author-Name: Mozaffar Qizilbash
Author-X-Name-First: Mozaffar
Author-X-Name-Last: Qizilbash
Title: Development, Common Foes and Shared Values
Abstract:
There is considerable common ground among various positions--involving
needs, capabilities, prudential values and basic goods--in the literature
about advantage and development. The well-known debate about the relative
merits of various spaces relating to advantage, associated with Amartya
Sen, has tended to obscure this point. Differences among the relevant
positions often have to do with the context in which they are developed,
or strategies involved in dealing with common foes, rather than any
fundamental divergence in values. The various lists of the components of
advantage that these positions offer can, to some degree, be seen as
relating to different levels in our concern about the quality of life. To
this degree, they can be reconciled, and Sen's capability approach simply
highlights an important level. Furthermore, both differences, as well as
convergence, in the various lists, may be consistent with shared values.
Journal: Review of Political Economy
Pages: 463-480
Issue: 4
Volume: 14
Year: 2002
X-DOI: 10.1080/0953825022000009906
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825022000009906
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:4:p:463-480
Template-Type: ReDIF-Article 1.0
Author-Name: John Davis
Author-X-Name-First: John
Author-X-Name-Last: Davis
Title: Capabilities and Personal Identity: Using Sen to explain personal identity in Folbre's 'structures of constraint' analysis
Abstract:
Folbre's 'structures of constraint' analysis treats women as socially
embedded in 'multiple, often contradictory positions, because they belong
to multiple groups'. This paper addresses the problem of women's multiple
collective identities by arguing that Sen's capability framework offers a
means of explaining how women can maintain coherent personal identities.
Using Sen's real opportunities sense of capabilities, the paper argues
that women can acquire personal identities apart from their multiple
collective identities if they acquire the specific capability of being
able, freely and successfully, to negotiate their multiple group
involvements. Folbre's list of policies for a more egalitarian family is
reconsidered from this perspective.
Journal: Review of Political Economy
Pages: 481-496
Issue: 4
Volume: 14
Year: 2002
X-DOI: 10.1080/0953825022000009915
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825022000009915
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:4:p:481-496
Template-Type: ReDIF-Article 1.0
Author-Name: Severine Deneulin
Author-X-Name-First: Severine
Author-X-Name-Last: Deneulin
Title: Perfectionism, Paternalism and Liberalism in Sen and Nussbaum's Capability Approach
Abstract:
The aim of the paper is to analyse the theoretical foundations of human
development policies as found in Sen's and Nussbaum's capability approach
to development, and to examine to what extent undertaking policies
according to the capability approach respects people's freedom to pursue
their own conception of the good. The paper argues that policies
undertaken according to the capability approach have to be guided by a
perfectionist conception of the good; that is, they cannot avoid promoting
one certain conception of the human good. Such a perfectionist conception
of the human good, and the policies ensuing from it, has often been
qualified as paternalist, depriving the human being of choosing her own
conception of the good. The paper examines to what extent those fears of
paternalism that seem to underlie policies guided by a perfectionist
account of the good are legitimate, and to what extent the capability
approach can escape those charges of paternalism and respect each person's
freedom to pursue the human good as she conceives it.
Journal: Review of Political Economy
Pages: 497-518
Issue: 4
Volume: 14
Year: 2002
X-DOI: 10.1080/0953825022000009924
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825022000009924
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:4:p:497-518
Template-Type: ReDIF-Article 1.0
Author-Name: Edward Nell
Author-X-Name-First: Edward
Author-X-Name-Last: Nell
Title: On Realizing Profits in Money
Abstract:
A basic if neglected step in monetary theory is to show that a given
amount of money will enable all transactions to take place in money. But
if the money advanced is no more than current costs, how are profits to be
realized in money? The answer requires tracing the pattern of circulation,
which, in turn depends on the structure of production and distribution.
The sectors have different patterns of interdependence, so imply different
sequences of transactions. Borrowing is costly, so the amount of money
must be minimized. These issues have been brought into focus in the
interesting article of J-F Renaud.
Journal: Review of Political Economy
Pages: 519-530
Issue: 4
Volume: 14
Year: 2002
X-DOI: 10.1080/0953825022000009933
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825022000009933
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:4:p:519-530
Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Sotirchos
Author-X-Name-First: Georgios
Author-X-Name-Last: Sotirchos
Title: Automata, Joint Production and the Labour Theory of Value
Abstract:
In the case of semi-automatic production systems, the theorem by
Fillipini & Fillipini (1981) does not specify sufficient conditions for
positive labour values. An additional condition sufficient for the
positivity of labour values in semi-automatic production systems is
introduced and interpreted.
Journal: Review of Political Economy
Pages: 531-538
Issue: 4
Volume: 14
Year: 2002
X-DOI: 10.1080/0953825022000009942
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825022000009942
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Handle: RePEc:taf:revpoe:v:14:y:2002:i:4:p:531-538
Template-Type: ReDIF-Article 1.0
Author-Name: J. Barkley Rosser
Author-X-Name-First: J. Barkley
Author-X-Name-Last: Rosser
Title: A Nobel Prize for Asymmetric Information: The economic contributions of George Akerlof, Michael Spence and Joseph Stiglitz
Abstract:
This paper reviews the research related to the asymmetric information of
George Akerlof, Michael Spence and Joseph Stiglitz, for which they jointly
received the 2001 Nobel Prize in Economics. After recounting their overall
careers, the history of the asymmetric information idea is presented and
their key papers are discussed. This is followed by an examination of
various applications of the concept, including in industrial organization
and microeconomic dynamics, efficiency wage theories of unem ployment,
credit market rationing theory, and issues of economic development and
global stability. The degree to which these latter theories can be
considered to be truly Keynesian is also considered.
Journal: Review of Political Economy
Pages: 3-21
Issue: 1
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308445
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:1:p:3-21
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Title: Supply and Demand in the Theory of Long-run Growth: Introduction to a symposium on demand-led growth
Abstract:
Recent developments in growth theory have encouraged a revisionist
interpretation of the field. According to this interpretation long-run
growth should be, and always has been, interpreted as a supply-side
process. The focus of this symposium is the macro-economics of demand-led
growth. As a precursor to the contributions that follow, two central
insights of demand-led growth theory are highlighted. First, chronic
effective demand problems create a role for aggregate demand in
determining the utilization rates of productive resources, even in the
long run. Second, the demand-led actual rate of growth influences both the
accumulation and productivity of factor inputs, and hence the economy's
potential rate of growth.
Journal: Review of Political Economy
Pages: 23-32
Issue: 1
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308440
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308440
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:1:p:23-32
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Cesaratto
Author-X-Name-First: Sergio
Author-X-Name-Last: Cesaratto
Author-Name: Franklin Serrano
Author-X-Name-First: Franklin
Author-X-Name-Last: Serrano
Author-Name: Antonella Stirati
Author-X-Name-First: Antonella
Author-X-Name-Last: Stirati
Title: Technical Change, Effective Demand and Employment
Abstract:
Ricardo and Marx saw technological change as a possible cause of
long-period unemployment. Neoclassical and Schumpeterian economists regard
technological unem ployment as a transitory phenomenon. This paper argues
that the capital critique (i) demolishes the neoclassical claim that
market mechanisms will restore full employment whenever workers are
displaced by technical change, and (ii) rehabilitates the old Ricardian
argument that automatic compensation factors are generally absent. The
neo-Schumpeterian notion of autonomous investment is also rejected, in
favour of the view that, in the long period, all investment is induced. By
extending Keynes's theory of effective demand to the long period through a
model based on the supermultiplier, this paper suggests that the ultimate
engines of growth are located in the autonomous components of effective
demand--exports, government spending and autonomous con sumption.
Technical change plays a role in the accumulation process through its
effects on consumption patterns and the material input requirements.
However, the impact of technical change is now seen to depend upon
circumstances such as income distribution, the availability of bank
liquidity and exchange rate policy.
Journal: Review of Political Economy
Pages: 33-52
Issue: 1
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308444
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308444
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:1:p:33-52
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Title: Kaleckian Effective Demand and Sraffian Normal Prices: Towards a reconciliation
Abstract:
Sraffians and Kaleckians alike reject the belief that higher rates of
accumulation need be associated with lower real wage rates or higher
propensities to save. The rejection of this proposition is mainly based on
the endogeneity of the rate of capacity utilization, both in the short and
the long run. This endogeneity often relies on a discrepancy between the
realized and the normal rates of profit, or between the realized and the
target rate of capacity utilization, a discrepancy which some authors
believe is unwarranted in long run analysis. Various models that eliminate
this divergence are outlined. In all these models, the normal rate of
profit itself is taken as an endogenous variable. In the first two models,
the normal rate of profit depends either on the realized profit rate or
the rate of interest. Supply-led results may then reappear in long run
analysis. In the last model, one introduces the possibility of a
divergence between the rate of return as assessed and targeted by firms,
and the rate of return that is actually incorporated into prices. This
divergence arises because of the bargaining power of workers and their
real wage resistance. Under these conditions, the demand-led results of
the Kaleckian tradition are recovered in a model with definite solutions.
Journal: Review of Political Economy
Pages: 53-74
Issue: 1
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308443
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308443
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:1:p:53-74
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Palley
Author-X-Name-First: Thomas
Author-X-Name-Last: Palley
Title: Pitfalls in the Theory of Growth: An application to the balance of payments constrained growth model
Abstract:
Journal: Review of Political Economy
Pages: 75-84
Issue: 1
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308441
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308441
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:1:p:75-84
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Gehrke
Author-X-Name-First: Christian
Author-X-Name-Last: Gehrke
Title: On the Transition from Long-period to Short-period Equilibria
Abstract:
The paper examines the contributions of Myrdal, Lindahl, Hicks and Hayek
that initiated the transition from the traditional long-period method to
the methods of 'intertemporal' and 'temporary equilibria' in neoclassical
general equilibrium analyses. It is shown that in the early contributions
the idea of a tendency towards a long-period position was not completely
abandoned, and that the new 'dynamic' equilibrium concepts were conceived
by some of their originators as useful analytical devices for studying
transitions between long-period equilibria only.
Journal: Review of Political Economy
Pages: 85-106
Issue: 1
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308439
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308439
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:1:p:85-106
Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Perri
Author-X-Name-First: Stefano
Author-X-Name-Last: Perri
Title: The Counterfactual Method of Marx's Theory of Surplus
Abstract:
The aim of this paper is to show that Marx supports his theory of surplus
value by developing a counterfactual argument, that is, by comparing the
'normal' state of a capitalist economy against a hypothetical state in
which no surplus is produced. Marx then divides his analysis of value into
three successive steps. The first deals with the production of new value
in the sphere of production; the second with the process of creation of
surplus value, both in the sphere of production and in the sphere of
circulation; and the third with the process of equalisation of the rate of
profit, which is accomplished via capitalist competition in the sphere of
circulation. The paper proposes a formalisation of the three-step analysis
and of the counterfactual argument. Marx's three-step analysis is shown to
be a scientific analysis of the hidden connections between social
relations (expressed in labour flows) and commodity exchange; thus it is
not a useless detour.
Journal: Review of Political Economy
Pages: 107-124
Issue: 1
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308438
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308438
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:1:p:107-124
Template-Type: ReDIF-Article 1.0
Author-Name: Ernesto Screpanti
Author-X-Name-First: Ernesto
Author-X-Name-Last: Screpanti
Title: Value and Exploitation: A counterfactual approach
Abstract:
A deconstruction of the Marxian theories of value and exploitation is
attempted by arguing, first, that the labour theory of value is logically
and methodologically inconsistent as a basis for a theory of capitalist
exploitation and, second, that it is founded on an ontology of the social
being which is not plausibly justified. A counterfactual model economy is
then built, called Utopia, in which the workers receive the whole net
output while commodities exchange at labour values. This model is used as
a benchmark to evaluate a capitalist economy where commodities exchange at
production prices and workers are exploited. It is shown that the factor
of exploitation can be expressed as a ratio between the labour commanded
by, and the labour contained in, the net output, or between the value
added produced in a capitalist economy and that produced in Utopia. The
resulting theory of exploitation entails a weak ontology of the social
being, expressing a worker's point of view.
Journal: Review of Political Economy
Pages: 155-171
Issue: 2
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000064869
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000064869
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:2:p:155-171
Template-Type: ReDIF-Article 1.0
Author-Name: Mirghani Ahmed
Author-X-Name-First: Mirghani
Author-X-Name-Last: Ahmed
Author-Name: Robert Scapens
Author-X-Name-First: Robert
Author-X-Name-Last: Scapens
Title: The Evolution of Cost-based Pricing Rules in Britain: An institutionalist perspective
Abstract:
This paper illustrates how an institutionalist perspective can help us
understand the development of cost-based pricing rules in Britain. It
explores the historical development of rule-based procedures, such as
absorption costing and the cost allocation systems used by trade
associations and government departments in the first half of the last
century. The intention is to identify the institutional rationalities that
underpinned the evolution of these supposedly 'irrational' practices. A
case study of British Printers in the early years of the 20th century
illustrates how a rule-based system, collectively designed and built
around costing knowledge was used to promote stability and certainty in a
chaotic market. Similarly, the cost-based rules introduced and
administered by the British Government during the First and Second World
Wars were used to control overpricing and profiteering, and hence cost
measurement was seen as instrumental in bringing stability and control to
a market that was operating in an apparently unacceptable way. In the
post-war period, however, similar cost-based pricing rules and cost
allocations procedures were implicated in a variety of restrictive
practices.
Journal: Review of Political Economy
Pages: 173-191
Issue: 2
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000064878
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000064878
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:2:p:173-191
Template-Type: ReDIF-Article 1.0
Author-Name: Pasquale Commendatore
Author-X-Name-First: Pasquale
Author-X-Name-Last: Commendatore
Title: On the Post Keynesian Theory of Growth and 'Institutional' Distribution
Abstract:
The neo-Pasinetti model proposed by Nicholas Kaldor in 1966 represents a
significant theoretical departure from the canonical Post Keynesian
approach to growth and distribution. The most incisive objection to this
model, originally raised by Paul Davidson, questions Kaldor's 'valuation
theorem', which assigns to the rate of interest the role of equilibrating
the goods market. An alternative model is proposed here that reconciles
the equilibrating role of income distribution with the traditional Post
Keynesian approach to distribution. Two extensions of this model are
discussed. The first supposes that financial capitalists and workers have
different propensities to save out of dividends and capital gains. The
second allows for international capital movements in the context of a
two-country economy. It is shown that the equilibrium rate of profits and
the long-run pattern of income distribution depend on firms' and
households' portfolio and saving decisions, on the degree of financial
market imperfection and on the corporate system of ownership and control
in which shareholders happen to operate. A rationale for shareholders'
indifference between consumption out of dividends and capital gains is
also provided.
Journal: Review of Political Economy
Pages: 193-209
Issue: 2
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000064887
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000064887
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:2:p:193-209
Template-Type: ReDIF-Article 1.0
Author-Name: Ron Ayres
Author-X-Name-First: Ron
Author-X-Name-Last: Ayres
Author-Name: Manuela Torrijos Simon
Author-X-Name-First: Manuela Torrijos
Author-X-Name-Last: Simon
Title: Education, Poverty and Sustainable Livelihoods in Tamil Nadu: Inequalities, opportunities and constraints
Abstract:
Education has the potential to enable people to enhance their
capabilities and functionings and can contribute to the achievement of
sustainable livelihoods. The evidence for rural Tamil Nadu indicates a
complex relationship between education and poverty. Educational attainment
is strongly correlated with gender and caste and this study reveals that
educational exclusion is related to a range of economic, spatial,
institutional, social and cultural structures and processes. Statistical
correlations, however, provide only partial insight into a complex
problem. This study highlights the importance of the underlying conditions
of life, the existential realities of different socio-economic groups and
the contradictions and tensions families face in making decisions about
education. Entitlements and livelihood opportunities need to be analysed
holistically and the paper concludes with an assessment of the role of
education in poverty alleviation and a number of policy suggestions.
Journal: Review of Political Economy
Pages: 211-229
Issue: 2
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000064896
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000064896
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:2:p:211-229
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Boylan
Author-X-Name-First: Thomas
Author-X-Name-Last: Boylan
Author-Name: Paschal O'Gorman
Author-X-Name-First: Paschal
Author-X-Name-Last: O'Gorman
Title: Economic Theory and Rationality: A Wittgensteinian interpretation
Abstract:
In this paper we invoke Wittgenstein's later philosophy to facilitate a
number of methodological reflections on Paul Davidson's concept of
transmutability. We argue that, while Davidson addresses the economic
implications arising from his distinction between immutable and
transmutable theories of external economic reality, he does not explore
the more fundamental methodological implications of the concepts contained
in his distinction, particularly that of transmutability. Transmutability
is more fundamental and pervasive than Davidson had anticipated and
presents a number of challenges to economic methodology and economic
theorizing. Methodologically, the challenges require the consideration of
new philosophical perspectives along with the fundamental reconsideration
of widely accepted and influential modes of reasoning in economics. We
respond to these challenges by invoking Wittgenstein's later philosophy to
challenge the dominance of J. S. Mill's rationale for the immutability of
economic laws; to motivate the empirical study of complex transformative
processes; and to undermine the reductionist neoclassical theory of
rationality.
Journal: Review of Political Economy
Pages: 231-244
Issue: 2
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000064904
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000064904
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:2:p:231-244
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Perlman
Author-X-Name-First: Mark
Author-X-Name-Last: Perlman
Title: Robert H. Nelson on Romanism, Protestantism and American Economics: A review essay
Abstract:
Journal: Review of Political Economy
Pages: 245-255
Issue: 2
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000064913
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000064913
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:2:p:245-255
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Fontana
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Fontana
Title: Post Keynesian Approaches to Endogenous Money: A time framework explanation
Abstract:
Over the last two decades, work on the Post Keynesian theory of
endogenous money has been flourishing, and has prompted a rethinking of
the complex nature of money in modern economies. At the heart of the
debate between what have now been labelled the accommodationist (or
horizontalist) approach and the structuralist approach to endogenous money
are the issues of the slope of the supply curves of reserves and of credit
money, respectively. Using the distinction between a single period
analysis and a continuation analysis, similarities and differences between
those approaches are explained, and the suggestion is then made for
retaining and re-interpreting them into a more general theory.
Journal: Review of Political Economy
Pages: 291-314
Issue: 3
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308431
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308431
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:3:p:291-314
Template-Type: ReDIF-Article 1.0
Author-Name: Vivian Walsh
Author-X-Name-First: Vivian
Author-X-Name-Last: Walsh
Title: Sen after Putnam
Abstract:
Modern classical economic theory, originally austere and minimalist (as
in Sraffa and Neumann), has entered a second, more enriched phase.
Inspired by Adam Smith, Amartya Sen has drawn out the moral implications
of formal classical models. But Sen remains open to neoclassical attack on
the grounds that science must be value free. In his book The Collapse of
the Fact/Value Dichotomy and Other Essays , Hilary Putnam rebuts the view
that "fact is fact and value is value and never the twain shall meet".
This paper explores consequences of this argument for classical theory. It
explains the nature and significance of the entanglement of facts,
analysis and values; and the impact of this entanglement on the concept of
rationality, on capability theory, on the relationship between human needs
and Sraffa basics, on Pasinetti's transformational growth, and on Sen's
analysis of the disabled and most wretched. Supporting Sen's approach to
human development, it opens the possibility of an enriched classical
analysis, which can absorb Martha Nussbaum's analysis of tragedy using a
logically and morally coherent political economy.
Journal: Review of Political Economy
Pages: 315-394
Issue: 3
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308434
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308434
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:3:p:315-394
Template-Type: ReDIF-Article 1.0
Author-Name: Hilary Putnam
Author-X-Name-First: Hilary
Author-X-Name-Last: Putnam
Title: For Ethics and Economics without the Dichotomies
Abstract:
Journal: Review of Political Economy
Pages: 395-412
Issue: 3
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308432
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308432
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:3:p:395-412
Template-Type: ReDIF-Article 1.0
Author-Name: Martha Nussbaum
Author-X-Name-First: Martha
Author-X-Name-Last: Nussbaum
Title: Tragedy and Human Capabilities: A response to Vivian Walsh
Abstract:
Journal: Review of Political Economy
Pages: 413-418
Issue: 3
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308435
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308435
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:3:p:413-418
Template-Type: ReDIF-Article 1.0
Author-Name: Harvey Gram
Author-X-Name-First: Harvey
Author-X-Name-Last: Gram
Title: Openness versus Closedness in Classical and Neoclassical Economics
Abstract:
In contrast to Neoclassical general equilibrium theory, the Classical
theory of value is open with respect to both the distribution of income
and the composition of output. For this reason, a Sen-inspired theory of
capabilities, insofar as it can be used to explain or determine income
distribution and output composition, finds a natural home within the
Classical theory of value.
Journal: Review of Political Economy
Pages: 419-425
Issue: 3
Volume: 15
Year: 2003
X-DOI: 10.1080/09538250308433
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308433
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:3:p:419-425
Template-Type: ReDIF-Article 1.0
Author-Name: John King
Author-X-Name-First: John
Author-X-Name-Last: King
Title: Introduction
Abstract:
Journal: Review of Political Economy
Pages: 453-456
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121405
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121405
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:453-456
Template-Type: ReDIF-Article 1.0
Author-Name: Roger Backhouse
Author-X-Name-First: Roger
Author-X-Name-Last: Backhouse
Title: Concentric circles of limits to the rate of accumulation: an interpretation of Joan Robinson's theory of economic dynamics
Abstract:
In addition to her well-known contributions to the theory of capital,
Joan Robinson provided, in her Accumulation of Capital and Essays in the
Theory of Economic Growth, a theory about the determinants of the rate of
growth. The growth rate was limited by entrepreneurs' animal spirits.
Within that constraint, growth might be further limited by the inflation
barrier, which could occur either because of a floor to real wages or
because of full employment. This paper provides a series of simple dynamic
models that illustrate these situations, drawing attention to this
neglected aspect of her work and making it easier to compare her work with
the monetary growth models produced by her neoclassical contemporaries.
Journal: Review of Political Economy
Pages: 457-466
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121414
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121414
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:457-466
Template-Type: ReDIF-Article 1.0
Author-Name: Fletcher Baragar
Author-X-Name-First: Fletcher
Author-X-Name-Last: Baragar
Title: Joan Robinson on Marx
Abstract:
This paper examines Joan Robinson's writings on Marx in order, first, to
elucidate the nature of her interpretation of Marx, and, secondly, to
consider the significance of Marx for her own research agenda. By focusing
on the topics of value theory, effective demand and accumulation, the
paper argues that Robinson's numerous criticisms of Marx are best viewed
as being constructive, rather than destructive. She not only drew upon
Marx for inspiration, but also endeavoured to pull Marx back into a
position of prominence within economics so that his contributions can be
put to use by those seeking to augment our understanding of capitalism.
Journal: Review of Political Economy
Pages: 467-482
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121423
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121423
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:467-482
Template-Type: ReDIF-Article 1.0
Author-Name: Claude Gnos
Author-X-Name-First: Claude
Author-X-Name-Last: Gnos
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: Joan Robinson and Keynes: finance, relative prices and the monetary circuit
Abstract:
Joan Robinson's views on credit and money are discussed only rarely. Of
late, however, some Post-Keynesians have sought to revive these views,
claiming that Robinson was one of the original contributors to the theory
of endogenous money, post Keynes. This paper has two objectives. First, it
seeks to develop Robinson's views on credit, money and finance and to show
that not only did she have a clear understanding of the theory of
endogenous money, but that she also held views akin to the theory of the
monetary circuit. Second, the paper addresses Robinson's dismissal of the
problem of relative prices and the conventional theory of value. Once
again, it shows that Robinson's position is connected closely with the
model of the monetary circuit as a basis of her theory of accumulation.
Journal: Review of Political Economy
Pages: 483-491
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121432
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121432
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:483-491
Template-Type: ReDIF-Article 1.0
Author-Name: Harvey Gram
Author-X-Name-First: Harvey
Author-X-Name-Last: Gram
Title: Joan Robinson: classical revivalist or neoclassical critic?
Abstract:
The capital controversy began with Joan Robinson's famous critique of the
aggregate production function. She chose to include only the 'negative'
part in the second volume of her Collected Economic Papers. The
'constructive' part, which had attracted so much attention in subsequent
discussions of reswitching and reverse capital deepening, was peripheral
to her concern with the role of realized expectations in neoclassical
theory. The splitting of her famous paper into two parts raises a
question. In the context of the capital controversy, should Joan Robinson
be remembered as a classical economist in modern dress, or should she be
remembered mainly as a critic of neoclassical theory?
Journal: Review of Political Economy
Pages: 493-508
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121441
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121441
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:493-508
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Groenewegen
Author-X-Name-First: Peter
Author-X-Name-Last: Groenewegen
Title: On re-reading Joan Robinson's 'On re-reading Marx'
Abstract:
This paper offers some reflections inspired by a re-reading of Joan
Robinson's On Re-reading Marx on the 50th anniversary of its initial
publication. Robinson wrote the pamphlet in the light of Sraffa's
Introduction to Ricardo's Works and Correspondence, which suggested to her
that the concept of the rate of profit was essentially the same in
Ricardo, Marx, Marshall and Keynes. In addition to the connections among
Ricardo, Marx, Marshall and Keynes, Robinson also addresses the issues of
equilibrium and time, and the dogmatism of Marxism.
Journal: Review of Political Economy
Pages: 509-519
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121450
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121450
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:509-519
Template-Type: ReDIF-Article 1.0
Author-Name: Claudia Heller
Author-X-Name-First: Claudia
Author-X-Name-Last: Heller
Title: Technical progress in Joan Robinson's view: an attempt at systematisation and formalisation
Abstract:
This paper deals with Joan Robinson's contributions to the issue of
technical progress and her attempts at treating this subject in accordance
with the Keynesian theory of employment and income distribution, mainly in
the long run. The paper aims to review this aspect of her work and to
establish a systematisation and a formalisation of her approach. At the
same time, the paper exposes the problems she faced—but did not
always solve. Looking through her main contributions, the paper concludes
that she used different criteria for the classification of innovations and
that they depended on the specific situations described by the models in
which she used the classification.
Journal: Review of Political Economy
Pages: 521-544
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121469
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121469
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:521-544
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Cristina Marcuzzo
Author-X-Name-First: Maria Cristina
Author-X-Name-Last: Marcuzzo
Title: Joan Robinson and the three cambridge revolutions
Abstract:
Joan Robinson's association with three Cambridge
'revolutions'—imperfect competition, effective demand and capital
theory—is examined in the context of her personal and intellectual
partnership with Richard Kahn, John Maynard Keynes and Piero Sraffa.
Initially, imperfect competition appeared to have successfully extended
marginal analysis to all market forms. It also allowed Richard Kahn and
Joan Robinson to persuade Keynes to present the main argument of The
General Theory in terms of aggregate demand and aggregate supply. By the
early 1950s, however, Joan Robinson had rejected the Marshallian
methodology and had become a strenuous censor of neoclassical theory. In
this paper the origin of her critique is traced to her reading of Sraffa's
Introduction to Ricardo's Principles.
Journal: Review of Political Economy
Pages: 545-560
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121478
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121478
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:545-560
Template-Type: ReDIF-Article 1.0
Author-Name: Alex Millmow
Author-X-Name-First: Alex
Author-X-Name-Last: Millmow
Title: Joan Robinson's disillusion with economics
Abstract:
In her last public comments on the state of economics, Joan Robinson made
some extraordinary remarks that conveyed profound pessimism and
theoretical nihilism. To account for the bleakness of Robinson's later
views on economics and economic policy this article examines her last
decade. These years were marked by an array of reverses to the causes she
espoused. While ill health and a propensity to be provocative coloured her
disposition, her comment about economic theory disintegrating in her hands
was not made casually; it was, rather, an acknowledgement that her project
to integrate Keynes with the classical surplus theory had failed. This
acknowledgement crystallised into her rejection of the long-period
equilibrium interpretation of Keynes's theory of unemployment. At the end
of her life Robinson was willing only to embrace the more traditional
short-period Keynesian model grounded in uncertainty and expectations.
Journal: Review of Political Economy
Pages: 561-574
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121487
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121487
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:561-574
Template-Type: ReDIF-Article 1.0
Author-Name: Ingrid Rima
Author-X-Name-First: Ingrid
Author-X-Name-Last: Rima
Title: From profit margins to income distribution: Joan Robinson's odyssey from marginal productivity theory
Abstract:
The point of departure for this paper is a 1941 Note on profit margins
co-authored by Joan Robinson and Nicholas Kaldor that remained unpublished
until 2000. Robinson's reviews of Henry Clay's The Problem of Industrial
Relationships, Bresciani Turroni's The Economics of Inflation, and Roy
Harrod's Towards a Dynamic Economics, along with her 1965 Cambridge
Inaugural Lecture, may be interpreted as analogous documents that develop
her critique of neoclassical wage theory and identify the money wage as
the economy's 'key' price. These publications were critical steps toward
the wage mark-up hypothesis and Post-Keynesian support of incomes policy
to contain inflation. Robinson's Harrod review anticipated her later ideas
about economic growth. With Kalecki's notion of 'the degree of monopoly'
and her own concept of neo-mercantilism (from the Inaugural Lecture),
these themes are nascent in the Robinson-Kaldor Note on profit margins.
Journal: Review of Political Economy
Pages: 575-586
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121496
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121496
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:575-586
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Streeten
Author-X-Name-First: Paul
Author-X-Name-Last: Streeten
Title: Joan Robinson: a personal note
Abstract:
Journal: Review of Political Economy
Pages: 587-588
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121504
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121504
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:587-588
Template-Type: ReDIF-Article 1.0
Author-Name: A. M. C. Waterman
Author-X-Name-First: A. M. C.
Author-X-Name-Last: Waterman
Title: Joan Robinson as a teacher
Abstract:
Journal: Review of Political Economy
Pages: 589-596
Issue: 4
Volume: 15
Year: 2003
X-DOI: 10.1080/0953825032000121513
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000121513
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Handle: RePEc:taf:revpoe:v:15:y:2003:i:4:p:589-596
Template-Type: ReDIF-Article 1.0
Author-Name: Morris Altman
Author-X-Name-First: Morris
Author-X-Name-Last: Altman
Title: The Nobel Prize in behavioral and experimental economics: a contextual and critical appraisal of the contributions of Daniel Kahneman and Cernon Smith
Abstract:
Daniel Kahneman and Vernon Smith were the joint recipients of the 2002
Nobel Prize in Economics. Kahneman's work challenges the assumption that
individuals behave in a manner consistent with conventional economic
wisdom. He maintains that individuals tend to be systematically error
prone and possibly irrational. Smith, on the other hand, developed
experiments and experimental environments to test hypotheses emanating
from the conventional economic wisdom. Smith finds that, in spite of
Kahneman's work, economic agents are rational and that economies are
efficient. These differing views are discussed and placed in the context
of the methodological and public policy debates in economics.
Journal: Review of Political Economy
Pages: 3-41
Issue: 1
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825032000145445
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000145445
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:1:p:3-41
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Palley
Author-X-Name-First: Thomas
Author-X-Name-Last: Palley
Title: Asset-based reserve requirements: reasserting domestic monetary control in an era of financial innovation and instability
Abstract:
This paper argues for developing a new system of financial regulation
based upon asset-based reserve requirements (ABRRs). Such a system
represents a shift in regulatory focus away from the traditional concern
with the liability side of financial intermediaries' balance sheets. ABRRs
have both significant macroeconomic and microeconomic advantages. At the
macroeconomic level, they can provide policy makers with additional policy
instruments. This is particularly useful in light of recent concerns about
the dangers of asset price inflation and the potential need to target
asset prices. They can also help restore the traction of monetary policy
at a time when banks are becoming a smaller part of the financial
landscape. At the microeconomic level, they can be used to discourage
excessive risk taking by financial intermediaries. Finally, they can also
raise considerable seignorage. To be fully effective, a system of ABRRs
should be applied to all financial intermediaries.
Journal: Review of Political Economy
Pages: 43-58
Issue: 1
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825032000145454
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000145454
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:1:p:43-58
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Title: Is there an equilibrium rate of unemployment in the long run?
Abstract:
This paper examines the existence and stability of a long-run equilibrium
rate of unemployment in a Post-Keynesian growth model and contrasts it
with the NAIRU model. In the latter the equilibrium rate of unemployment
determines unanticipated inflation in the short run and actual
unemployment and output in the long run. The real balance effect plays the
pivotal role in the transition from the short run to the long run. For the
Keynesian model we take the Marglin-Bhaduri (1990) model as our starting
point and complement it by Okun's Law for the labor market and a wage
curve type of relation for distribution. The distinction between wage-led
and profit-led growth regimes in the Marglin-Bhaduri model turns out to be
crucial for the long-run equilibrium rate of unemployment. In the
profit-led regime, there is a stable equilibrium rate of unemployment
that, NAIRU-like, determines growth. In the wage-led regime, however, the
equilibrium rate of unemployment is not stable. The long run is thus but a
succession of short-run equilibria. Therefore the goods market dominates
the labor market even in the long run.
Journal: Review of Political Economy
Pages: 59-77
Issue: 1
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825032000145463
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000145463
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:1:p:59-77
Template-Type: ReDIF-Article 1.0
Author-Name: David Levine
Author-X-Name-First: David
Author-X-Name-Last: Levine
Title: Poverty, capabilities and freedom
Abstract:
The idea of poverty has played a central role in political economy since
the first pages of the Wealth of Nations, where Adam Smith distinguishes
between what he calls the civilized and savage states of man. Classical
economists connected the idea of poverty to the idea of subsistence, and
the idea of subsistence to the capacity to maintain a way of life of a
particular kind, appropriate to the occupant of a well-defined position in
society. The attempt to define poverty in this way runs into difficulty,
however, in a modern rather than subsistence-based economy. In this essay,
the idea of capabilities is developed in a specific direction to suggest a
way of thinking about poverty suitable to a modern society. Poverty is
defined as the opposing pole to freedom, and freedom is linked to
creativity in work. Creativity in work is considered the exercise of a
human capability, specifically the capability to do skilled labor. Poverty
results, then, either when this capability does not develop, or when the
opportunity to exercise it is unavailable.
Journal: Review of Political Economy
Pages: 101-115
Issue: 1
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825032000145481
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000145481
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:1:p:101-115
Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Azevedo Araujo
Author-X-Name-First: Ricardo Azevedo
Author-X-Name-Last: Araujo
Author-Name: Joanilio Rodolpho Teixeira
Author-X-Name-First: Joanilio Rodolpho
Author-X-Name-Last: Teixeira
Title: A Pasinettian approach to international economic relations: the pure labor case
Abstract:
In this paper, the pure labor version of Pasinetti's model of structural
change and economic dynamics is extended to consider international
economic relations. The conditions for full employment, full expenditure
of national income and trade balance equilibrium are established along
with solutions for the systems of physical quantities and prices in an
open economy. Analytical results concerning the benefits of international
trade and learning are studied with formal rigor. Then static and dynamic
aspects of the principle of comparative cost advantages are analyzed
considering the determinants of the level of specialization and
international prices.
Journal: Review of Political Economy
Pages: 117-129
Issue: 1
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825032000145490
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000145490
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:1:p:117-129
Template-Type: ReDIF-Article 1.0
Author-Name: Man-Seop Park
Author-X-Name-First: Man-Seop
Author-X-Name-Last: Park
Title: Credit money and Kaldor's 'institutional' theory of income distribution
Abstract:
This paper combines two major contributions by Kaldor: the view that the
supply of money, ensuing mainly from bank credit, is endogenous, and the
framework which assigns a crucial role to the saving and investment
behaviour of corporations in determining the general rate of profit (the
neo-Pasinetti theorem). Bank loans are introduced as another means of
financing investment by firms, in addition to retained profits and the new
issuance of shares. The proposed model provides a convenient framework in
which two different approaches in the money-endogeneity view are
classified. Kaldor's neo-Pasinetti theorem is shown to hold for only one
of these approaches and is then extended to include the influence of
banks.
Journal: Review of Political Economy
Pages: 79-99
Issue: 1
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825032000145472
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825032000145472
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:1:p:79-99
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Ciccarone
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Ciccarone
Title: Finance and the Cambridge equation
Abstract:
A profit-making financial system is introduced into the Pasinetti model
of growth and distribution with the aim of showing that Pasinetti's
formulation implicitly incorporated a well-defined theory of finance. In a
golden age, the financial sector must set the rates of interest below the
rate of profit to compensate for the remuneration of risks of enterprise
generated by expectations realized in the broad, but not at the level of
individual firms. If there exists a relationship between investment and
finance, intermediaries contribute to the determination of the rates of
profit and growth. Their decisions may not allow a competitive economy to
return to the golden age once pushed away from it.
Journal: Review of Political Economy
Pages: 163-177
Issue: 2
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000183172
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000183172
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:2:p:163-177
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Aspromourgos
Author-X-Name-First: Tony
Author-X-Name-Last: Aspromourgos
Title: Sraffian research programmes and unorthodox economics
Abstract:
This paper provides an overview of the main currents in the development
of the intellectual project inaugurated by Piero Sraffa's Production of
Commodities by Means of Commodities. Five research programmes are detailed
(together with some further extensions): the nature and significance of
long-period equilibria; the Cambridge Growth Equation and the monetary
determination of interest, as alternative theories of distribution; the
Sraffa-Keynes synthesis; and the critique of marginalism. The paper also
sketches the relations between the Sraffian project and other unorthodox
strands in economics. Future prospects for orthodoxy and non-orthodoxy are
canvassed. A substantial literature survey is included. Some day economics
may become a science. (attributed to J.M. Keynes, 1932: Rymes, 1989, p.
83)
Journal: Review of Political Economy
Pages: 179-206
Issue: 2
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000183181
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000183181
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:2:p:179-206
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Title: Financial fragility, effective demand and the business cycle
Abstract:
A shifting equilibrium model of effective demand is constructed, in which
the state of long run expectations is non-constant, and is affected by the
disappointment of short-run expectations. It is shown that this model
gives rise to cumulative expansions/contractions in nominal income.
Changes in the financial fragility of households and firms in the course
of these expansions/contractions are then allowed for, together with
commercial bank reactions to changing financial fragility. It is shown
that turning points in the expansions/contractions of nominal income can
arise, resulting in a model of aggregate fluctuations in which the
business cycle is aperiodic and of no fixed amplitude.
Journal: Review of Political Economy
Pages: 207-223
Issue: 2
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000183190
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000183190
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:2:p:207-223
Template-Type: ReDIF-Article 1.0
Author-Name: Eyup Ozveren
Author-X-Name-First: Eyup
Author-X-Name-Last: Ozveren
Title: Variations on a Schumpeterian theme: democracy, capitalism and civilizations in a turbulence zone
Abstract:
Since the fall of the Berlin Wall, debates over the future of democracy
and capitalism have not only gained a new momentum but also a new
direction. These debates are yet to be linked with a renewed concern over
the fate of civilizations. In this paper, Joseph Schumpeter's scheme of
analysis as proposed in his Capitalism, Socialism, and Democracy is the
point of departure for an analytical framework to assess the prospects of
democracy, capitalism and civilization in the 21st century. A global
dimension of analysis is superimposed upon the original Schumpeterian
scheme; civilization, capitalism and democracy are then conceptualized as
layers of a tripartite pyramid that represents the system whose historical
development and prospects we wish to understand. Afterwards, the
prospective relationships among different layers as this historical system
approaches its own limits are explored. This modified Schumpeterian
perspective provides a basis for arguing that what the future holds in
store for us may be the exact opposite of liberal utopia.
Journal: Review of Political Economy
Pages: 225-237
Issue: 2
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000183208
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000183208
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:2:p:225-237
Template-Type: ReDIF-Article 1.0
Author-Name: William Butos
Author-X-Name-First: William
Author-X-Name-Last: Butos
Author-Name: Roger Koppl
Author-X-Name-First: Roger
Author-X-Name-Last: Koppl
Title: Carabelli & de Vecchi on Keynes and Hayek
Abstract:
Carabelli & De Vecchi dispute competing interpretations of Keynes and
Hayek, including ours. They mistakenly impute to us the view that Keynes
was inconsistent. They deny that Keynes had a subjectivist theory of
expectations by noting his rationalist philosophy. We agree that Keynes
had a rationalist philosophy, but deny that this implies an objectivist
theory of economic expectations. We persist in viewing Keynes as a
subjectivist regarding expectations. This short paper reviews these issues
and a few other contentious matters regarding Keynes and Hayek.
Journal: Review of Political Economy
Pages: 239-247
Issue: 2
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000183217
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000183217
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:2:p:239-247
Template-Type: ReDIF-Article 1.0
Author-Name: Anna Carabelli
Author-X-Name-First: Anna
Author-X-Name-Last: Carabelli
Author-Name: Nicolo De vecchi
Author-X-Name-First: Nicolo
Author-X-Name-Last: De vecchi
Title: On Hayek and Keynes once again: a reply to Butos & Koppl
Abstract:
This note responds to Butos & Koppl's comment on Carabelli & De Vecchi
(2001a). We acknowledge the many points of agreement between our own views
on Keynes and Hayek and those of Butos & Koppl (especially as regards
Hayek). Here we clarify some points of ours which have been challenged by
Butos & Koppl, and introduce new arguments in support of our
interpretation of Keynes's rationalism.
Journal: Review of Political Economy
Pages: 249-256
Issue: 2
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000183226
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000183226
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:2:p:249-256
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Brown
Author-X-Name-First: Christopher
Author-X-Name-Last: Brown
Title: Does income distribution matter for effective demand? Evidence from the United States
Abstract:
This article examines the influence of income distribution in the
determination of effective demand in the US. A simple model is developed
to simulate the effects of changing income inequality on the aggregate
propensity to consume. The simulation results illustrate that income
inequality has a substantial negative impact on consumption when household
spending is assumed to be income-constrained. Econometric evidence is
presented that rising private sector wage inequality had a dampening
effect on the time path of consumption in the United States between 1978
and 2000. The methodology entails time series estimation of consumption
specifications with a measure of income inequality (the Theil index)
included among the explanatory variables. The argument is made that,
ceteris paribus, rising income inequality creates a need for greater
reliance on debt to sustain a given level of household spending.
Journal: Review of Political Economy
Pages: 291-307
Issue: 3
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000225607
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000225607
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:3:p:291-307
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Title: Keynes's multiplier in a two-sectoral framework
Abstract:
This paper endeavours to reinterpret one of the most fundamental concepts
of macroeconomics: the Keynesian investment multiplier. The multiplier is
not interpreted as a dynamic process (or quantity reaction of output) nor
as a logical relation (or ratio) between income and investment
expenditure, but as an equilibrium condition that prescribes the
proportionality between the two 'departments' of the economy (the
consumption-goods and the investment-goods sector) necessary for
'completely successful reproduction'. The Marxian concept of reproduction
schemes is combined with Keynes's 'fundamental psychological law' (which
states that the marginal propensity to consume is positive and less than
unity) to derive this result. This 'structural' view of the multiplier is
then used to analyse questions relating to economic growth, capital
accumulation and structural change.
Journal: Review of Political Economy
Pages: 309-334
Issue: 3
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000225616
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000225616
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:3:p:309-334
Template-Type: ReDIF-Article 1.0
Author-Name: Claude Gnos
Author-X-Name-First: Claude
Author-X-Name-Last: Gnos
Title: Is ex-ante ex-post analysis irrelevant to Keynes's theory of employment?
Abstract:
Ex-ante ex-post analysis has become a standard tool in macroeconomics.
Yet Keynes dismissed it. We argue that Keynes's dismissal of ex-ante
ex-post analysis is not an oddity but an indication of the originality of
his theory of employment compared to standard macroeconomics. First, the
principle of effective demand does not amount to a process that determines
employment and income at the point of intersection of the traditionally
defined ex ante supply and demand functions. Second, the finance motive
allowed Keynes to confirm the identity of aggregate supply and demand
already asserted in The General Theory. This latter conclusion is
puzzling, however, since the principle of effective demand presupposes the
possibility of a discrepancy between supply and demand. We suggest that
Keynes's theory of employment is linked to a theory of income distribution
whereby profits are a redistributed share of factor income which is
transferred to firms when prices exceed factor costs. The identity and the
equilibrium condition then relate to separate measurements of income and
output, factor cost and prices.
Journal: Review of Political Economy
Pages: 335-345
Issue: 3
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000225625
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000225625
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:3:p:335-345
Template-Type: ReDIF-Article 1.0
Author-Name: Rosaria Rita Canale
Author-X-Name-First: Rosaria Rita
Author-X-Name-Last: Canale
Title: A post-Keynesian model of output, employment and monetary demand
Abstract:
This paper presents a simple model based on three broad Post-Keynesian
hypotheses: (1) the economic process develops over time; (2) money is
endogenous; and (3) producers are price setters. To make the analysis
easier we also assume (4) that firms are vertically integrated. Producers
assess the expected demand and ask banks for credit in order to start
production; banks create credit at the request of producers to finance the
wage bill; workers buy goods sold by firms; firms must repay banks the
amount borrowed plus interest and earn a target rate of profit. Since
firms have created only as much purchasing power as they have advanced to
workers in the form of the wage fund, equilibrium requires that there is
an amount of autonomous monetary demand equal to profits and interest.
Furthermore, in order to make the value of supply equal to the value of
effective demand, firms will employ the number of workers necessary to
create the purchasing power which, when added to the anticipated
autonomous demand, enables all costs to be covered and the planned rate of
profits to be attained.
Journal: Review of Political Economy
Pages: 347-360
Issue: 3
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000225634
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000225634
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:3:p:347-360
Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Sardoni
Author-X-Name-First: Claudio
Author-X-Name-Last: Sardoni
Title: The contribution of Gerald Shove to the development of Cambridge Economics
Abstract:
Frank Gerald Shove was a close friend of Keynes and the other
protagonists of the economic debates in Cambridge during the 1920s and
1930s. Shove's influence on those debates is not well documented because
he published little and had all his notes destroyed after his death. This
paper looks at Shove's most significant contributions to the debates of
the 1930s. Attention is concentrated on the debates over increasing
returns and imperfect competition. Shove emphasized the complexity of
economic phenomena and the need to develop tools to deal with it. He found
his analytical and methodological inspiration in Marshall's work. This
position led him to clash with younger economists, in particular Joan
Robinson, whose work on imperfect competition and whose efforts to achieve
rigorous and 'precise' results failed, in his view, to capture the working
of actual markets. The final section of the paper discusses the similarity
of Shove's methodological outlook to that of Keynes. Both were well aware
of the need to go beyond Marshall, but they wanted to retain the richness,
complexity and realism of Marshall's approach.
Journal: Review of Political Economy
Pages: 361-375
Issue: 3
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000225643
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000225643
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:3:p:361-375
Template-Type: ReDIF-Article 1.0
Author-Name: M. C. Howard
Author-X-Name-First: M. C.
Author-X-Name-Last: Howard
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: The economic contributions of Paul Sweezy
Abstract:
This paper offers a critical appraisal of the work of Paul M. Sweezy
(1910-2004). After a brief biographical summary, the following sections
deal with Sweezy's early writings; his book, The Theory of Capitalist
Development; his thinking on socialism; his contribution as an historian
of events and of ideas; the Monopoly Capital, co-authored with Paul Baran;
and Sweezy's work after the death of Baran in 1964. The paper concludes
with an assessment of Sweezy's significance, and a comprehensive
bibliography of his writings.
Journal: Review of Political Economy
Pages: 411-456
Issue: 4
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000271624
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000271624
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:4:p:411-456
Template-Type: ReDIF-Article 1.0
Author-Name: Bharati Basu
Author-X-Name-First: Bharati
Author-X-Name-Last: Basu
Author-Name: Felix Famoye
Author-X-Name-First: Felix
Author-X-Name-Last: Famoye
Title: Domestic violence against women, and their economic dependence: A count data analysis
Abstract:
In examining the relation between violence against women and women's
economic dependence, existing literature treats the incidents of violence
either as a binary or as a continuous variable. However, the incidents of
violence is a count variable and, quite often, data on the number of
violent incidents is categorized. This paper estimates the relation
between violence against women and economic dependence by using a
categorized negative binomial regression model. The model is suitable for
categorized count data and thus provides a more accurate estimation of the
relation than what is provided in the literature. Data analyses in this
paper show that less economic dependence of women is associated with less
violence.
Journal: Review of Political Economy
Pages: 457-472
Issue: 4
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000256685
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000256685
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:4:p:457-472
Template-Type: ReDIF-Article 1.0
Author-Name: Pascal Ughetto
Author-X-Name-First: Pascal
Author-X-Name-Last: Ughetto
Title: Demand-side issues of the service economy
Abstract:
This paper examines the relevance of the demand-side approach to the
development of a service economy. Its starts by addressing some concerns
about the possibility of creating a growth regime based on services.
Discussion has mainly focused on the increasing share of services in
consumer spending; but equally important is the fact that most
products--goods and services alike--integrate a significant
service-to-the-client dimension. The paper considers the costs incurred by
strategies that aim to create value for the client and that require the
existence of a purchasing power likely to validate them.
Journal: Review of Political Economy
Pages: 473-483
Issue: 4
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000256694
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000256694
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:4:p:473-483
Template-Type: ReDIF-Article 1.0
Author-Name: David Colander
Author-X-Name-First: David
Author-X-Name-Last: Colander
Author-Name: Richard Holt
Author-X-Name-First: Richard
Author-X-Name-Last: Holt
Author-Name: Barkley Rosser
Author-X-Name-First: Barkley
Author-X-Name-Last: Rosser
Title: The changing face of mainstream economics
Abstract:
This article argues that economics is currently undergoing a fundamental
shift in its method, away from neoclassical economics and into something
new. Although that something new has not been fully developed, it is
beginning to take form and is centered on dynamics, recursive methods and
complexity theory. The foundation of this change is coming from economists
who are doing cutting edge work and influencing mainstream economics.
These economists are defining and laying the theoretical groundwork for
the fundamental shift that is occurring in the economics profession.
Journal: Review of Political Economy
Pages: 485-499
Issue: 4
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000256702
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000256702
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:4:p:485-499
Template-Type: ReDIF-Article 1.0
Author-Name: Marek Szydłowski
Author-X-Name-First: Marek
Author-X-Name-Last: Szydłowski
Author-Name: Adam Krawiec
Author-X-Name-First: Adam
Author-X-Name-Last: Krawiec
Title: A note on Kaleckian lags in the Solow model
Abstract:
Building on a contribution by Paul Zak, we consider the modified Solow
model with a time lag introduced in the Kaleckian spirit. This model
produces endogenous cycles that can be interpreted as economic
fluctuations. For reasonable parameter values it can generate empirically
relevant cyclic variations in output. We prove the existence of a Hopf
bifurcation and a limit cycle solution in the model. We find that there is
only one solution with a period longer than the production lag.
Additionally we calculate the period of this cycle.
Journal: Review of Political Economy
Pages: 501-506
Issue: 4
Volume: 16
Year: 2004
X-DOI: 10.1080/0953825042000256711
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000256711
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:4:p:501-506
Template-Type: ReDIF-Article 1.0
Author-Name: Mark White
Author-X-Name-First: Mark
Author-X-Name-Last: White
Title: Preaching to the choir: A response to Kaplow and Shavell's Fairness Versus Welfare
Abstract:
This note is a critical response to Louis Kaplow and Steven Shavell's
recent treatise on law and economics, Fairness Versus Welfare, in which
they argue that legal decision-making should be conducted with the sole
goal of welfare-maximization. After a brief summary of the book, this
paper focuses on three primary problems with its contents and approach.
First, the tautological nature of the authors' argument, which they
acknowledge but downplay is discussed. Second, it is argued that while the
authors give lip-service to 'tastes for fairness,' they refuse to
acknowledge the implications of such preferences for their conclusions and
then minimize their possible importance. Finally, this paper addresses
what is possibly the most disappointing aspect of this work: the
arrogance, condescension, and intolerance displayed throughout the book
toward those with dissenting views.
Journal: Review of Political Economy
Pages: 507-515
Issue: 4
Volume: 16
Year: 2004
X-DOI: 10.1080/revpoe0953825042000271720
File-URL: http://www.tandfonline.com/doi/abs/10.1080/revpoe0953825042000271720
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Handle: RePEc:taf:revpoe:v:16:y:2004:i:4:p:507-515
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Hans Matthews
Author-X-Name-First: Peter Hans
Author-X-Name-Last: Matthews
Title: Paradise lost and found? The econometric contributions of Clive W. J. Granger and Robert F. Engle
Abstract:
This paper provides a non-technical and illustrated introduction to the
econometric contributions of the 2003 Nobel Prize winners, Robert Engle
and Clive Granger, with a special emphasis on their implications for
heterodox economists.
Journal: Review of Political Economy
Pages: 1-28
Issue: 1
Volume: 17
Year: 2005
X-DOI: 10.1080/0953825042000313780
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000313780
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:1:p:1-28
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Trigg
Author-X-Name-First: Andrew
Author-X-Name-Last: Trigg
Author-Name: Frederic Lee
Author-X-Name-First: Frederic
Author-X-Name-Last: Lee
Title: Pasinetti, Keynes and the multiplier
Abstract:
This paper explores the relationship between the Keynesian multiplier and
Pasinetti's model of pure production. Key assumptions of Pasinetti's model
are its multisectoral structure, the definition of all income as a reward
to labouring activities and, as a consequence, the operation of a pure
labour theory of value. A translation between these models is effected by
introducing investment as an exogenous determinant. By drawing from Keynes
to apply his concept of the wage unit, it is possible to aggregate from
Pasinetti's multisectoral model to a genuinely macroeconomic multiplier.
This provides a way of using the scalar Keynesian multiplier without
making the restrictive one-commodity assumption. In addition, this formal
demonstration enhances our understanding of the relationship between the
wage unit and the labour theory of value. Finally, critics have argued
that Pasinetti downgrades the importance of institutional analysis; in
contrast, the derivation of a scalar Keynesian multiplier contributes to
an understanding of how relevant Pasinetti's approach is to the analysis
of a monetary production economy.
Journal: Review of Political Economy
Pages: 29-43
Issue: 1
Volume: 17
Year: 2005
X-DOI: 10.1080/0953825042000313799
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000313799
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:1:p:29-43
Template-Type: ReDIF-Article 1.0
Author-Name: Yasushi Suzuki
Author-X-Name-First: Yasushi
Author-X-Name-Last: Suzuki
Title: Uncertainty, financial fragility and monitoring: Will Basle-type pragmatism resolve the Japanese banking crisis?
Abstract:
This paper argues that the naive adoption of an Anglo-American approach
to the management of credit risk as the prescription for Japan's prolonged
financial slump would amount to a very risky strategy. The neoclassical
arguments for the adoption of Basle-type pragmatism and the adoption of
Anglo-American financial norms neglect the important question of how to
manage Japanese lenders' uncertainty, which affects their assessment of
credit risk. We point out that an ill-planned transition without
mechanisms for diversifying risk and uncertainty has encouraged herd
behavior in lending. We also argue that Japan's traditional rent-based
mode of financial intermediation and monitoring performed important
functions, including the incubation of new enterprises, and should have
been retained in alternative form rather than abandoned.
Journal: Review of Political Economy
Pages: 45-61
Issue: 1
Volume: 17
Year: 2005
X-DOI: 10.1080/0953825042000313807
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000313807
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:1:p:45-61
Template-Type: ReDIF-Article 1.0
Author-Name: Sandye Gloria-Palermo
Author-X-Name-First: Sandye
Author-X-Name-Last: Gloria-Palermo
Author-Name: Giulio Palermo
Author-X-Name-First: Giulio
Author-X-Name-Last: Palermo
Title: Austrian economics and value judgments: a critical comparison with Neoclassical Economics
Abstract:
This article points out the limits of Austrian economics as far as the
passage from positive to normative economics is concerned. We propose a
comparison with neoclassical economics and discuss the different
theoretical solutions adopted by these two schools of thought in their
legitimization of the normative discourse. The bridge from positive to
normative economics is analyzed as resting upon two interdependent
pillars, one of a technical nature, the other of an ethical one. In
neoclassical theory, these two pillars are, respectively, the Pareto
principle and the so-called minimal benevolence principle. In the case of
Austrian economics, they are the coordination principle and a set of value
judgments considered to be 'quasi-universal'. One problem for Austrian
economics is that the coordination principle turns out to be incompatible
with process analysis, the latter being a central tenet of the Austrian
theory. A second problem, which creates serious difficulties for both
schools, has to do with distribution. Our thesis is that whereas the
neoclassical solution of the distributive problem is formally consistent
(although deeply unrealistic), the Austrian solution is theoretically
untenable and based on strong, although implicit, value judgments.
Journal: Review of Political Economy
Pages: 63-78
Issue: 1
Volume: 17
Year: 2005
X-DOI: 10.1080/0953825042000313816
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000313816
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:1:p:63-78
Template-Type: ReDIF-Article 1.0
Author-Name: Bryan Caplan
Author-X-Name-First: Bryan
Author-X-Name-Last: Caplan
Author-Name: Edward Stringham
Author-X-Name-First: Edward
Author-X-Name-Last: Stringham
Title: Mises, bastiat, public opinion, and public choice
Abstract:
The political economy of Ludwig von Mises and Frederic Bastiat has been
largely ignored even by their admirers. We argue that Mises' and Bastiat's
views in this area were both original and insightful. While traditional
public choice generally maintains that democracy fails because voters'
views are rational but ignored, the Mises-Bastiat view is that democracy
fails because voters' views are irrational but heeded. Mises and Bastiat
anticipate many of the most effective criticisms of traditional public
choice to emerge during the last decade and point to many avenues for
future research.
Journal: Review of Political Economy
Pages: 79-105
Issue: 1
Volume: 17
Year: 2005
X-DOI: 10.1080/0953825042000313825
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000313825
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:1:p:79-105
Template-Type: ReDIF-Article 1.0
Author-Name: Amartya Sen
Author-X-Name-First: Amartya
Author-X-Name-Last: Sen
Title: Walsh on Sen after Putnam
Abstract:
This note responds to Vivian Walsh's 2003 essay, in this journal, on
aspects of my work.
Journal: Review of Political Economy
Pages: 107-113
Issue: 1
Volume: 17
Year: 2005
X-DOI: 10.1080/0953825042000313834
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000313834
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:1:p:107-113
Template-Type: ReDIF-Article 1.0
Author-Name: Ernesto Screpanti
Author-X-Name-First: Ernesto
Author-X-Name-Last: Screpanti
Title: Guglielmo Carchedi's 'art of fudging' explained to the people
Abstract:
In this note, I present a criticism of Guglielmo Carchedi's synthesis of
the Temporal Single System (TSS) approach to value theory. My main
criticisms are as follows. First, Carchedi adopts an essentialist, and
indeed rather mystical, interpretation of Marx's value theory; second, his
notion of 'labour-value' turns out to be just a redefinition of 'price',
which has nothing to do with the labour embodied; third, his
transformation procedure is inconsistent with the reproduction conditions
that Carchedi himself assumes.
Journal: Review of Political Economy
Pages: 115-126
Issue: 1
Volume: 17
Year: 2005
X-DOI: 10.1080/095382504200031843
File-URL: http://www.tandfonline.com/doi/abs/10.1080/095382504200031843
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:1:p:115-126
Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Carchedi
Author-X-Name-First: Guglielmo
Author-X-Name-Last: Carchedi
Title: Sapiens nihil affirmat quod non probat
Abstract:
This paper responds to Ernesto Screpanti's critique of Guglielmo
Carchedi's approach to Marx's transformation procedure. It argues that
there is no logical inconsistency in that procedure once one introduces
time, rather than denying it as Marx's critics do. Further, it examines
Screpanti's critique and argues that, while Marx's algebra is correct,
Screpanti's own 'refutation' of Marx is invalid because it balances
neither in physical nor in algebraic terms. It finally examines some old
critiques which, while presented by Screpanti as novel, are well-known
acquaintances which have already been shown to be invalid. Two conclusions
are reached. First, Screpanti concedes that the circularity critique does
not hold when time is introduced in the analysis and, second, Screpanti's
critique is an attempt to vindicate a method of inquiry (simultaneism)
which is unsuited to understanding what really matters, a temporal
situation, i.e. reality.
Journal: Review of Political Economy
Pages: 127-139
Issue: 1
Volume: 17
Year: 2005
X-DOI: 10.1080/0953825042000313852
File-URL: http://www.tandfonline.com/doi/abs/10.1080/0953825042000313852
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:1:p:127-139
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dunn
Author-X-Name-First: Stephen
Author-X-Name-Last: Dunn
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Title: The Economic Contributions of John Kenneth Galbraith
Abstract:
Galbraith's principal theoretical contribution is foreshadowed in
American capitalism and unfolds more clearly into view in his trilogy The
Affluent Society, The New Industrial State and Economics and the Public
Purpose. His thesis is that the economic ideas that once explained a world
of poverty have not adjusted to a world of affluence dominated by the
modern corporation. His main themes are the concentration of economic
power in the large corporation and the social and environmental imbalance
that results from the large corporation. Galbraith attempts to tease out
the implications of the uneven development of modern affluence and
outlines an emancipatory case for social change.
Journal: Review of Political Economy
Pages: 161-209
Issue: 2
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500067254
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500067254
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:2:p:161-209
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Perlman
Author-X-Name-First: Mark
Author-X-Name-Last: Perlman
Author-Name: Morgan Marietta
Author-X-Name-First: Morgan
Author-X-Name-Last: Marietta
Title: The politics of social accounting: public goals and the evolution of the national accounts in Germany, the United Kingdom and the United States
Abstract:
National social statistics have become one of the pervasive institutions
of modern economics and politics. However, less is known about the origins
of national accounting and the disagreements over its fundamental purpose
and design. Modern national accounts emerged in attempts by German
statistical entrepreneurs to understand the industrial economy and harness
production in the service of national goals. In the American context
national accounts emerged as a means for measuring social welfare, but
evolved in the direction of the German and then British efforts at
maximizing war production during the Second World War. The origins and
evolution of social accounting in the German, British and American
contexts illustrate the competing public goals served by our institutional
choices. Different normative purposes, driven by new national goals, may
require institutional change.
Journal: Review of Political Economy
Pages: 211-230
Issue: 2
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500067262
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500067262
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:2:p:211-230
Template-Type: ReDIF-Article 1.0
Author-Name: Oscar de-Juan
Author-X-Name-First: Oscar
Author-X-Name-Last: de-Juan
Title: Paths of accumulation and growth: Towards a Keynesian long-period theory of output
Abstract:
According to the principle of effective demand, the equilibrium level of
aggregate output is a multiple of the expected autonomous demand for the
period under consideration. Aggregate demand matches aggregate supply in
equilibrium, but the equilibrium may and usually does lie below the output
corresponding to full capacity and full employment. However, in the long
term firms are presumed to use capacity at the normal or desired degree.
Can the principle of effective demand be extrapolated to conclude that the
rate of growth of output will depend on the expected rate of growth of
autonomous demand? A positive answer would be a significant step towards a
Keynesian long-period theory of output. This paper attempts to make an
advance in that direction. Starting from a 'prospective accelerator' that
incorporates expected increases in autonomous demand and takes account of
an excess of capacity in order to eliminate it, this paper shows that the
path of autonomous demand determines both the actual and the warranted
rates of growth.
Journal: Review of Political Economy
Pages: 231-252
Issue: 2
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500067270
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500067270
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:2:p:231-252
Template-Type: ReDIF-Article 1.0
Author-Name: Ghassan Dibeh
Author-X-Name-First: Ghassan
Author-X-Name-Last: Dibeh
Title: A Kaleckian model of business cycle synchronization
Abstract:
A non-linear, two-country Kaleckian model of the business cycle was
developed for investigating business cycle synchronization. The model
includes three components: a country-specific business cycle-generating
equation, a transmission mechanism and time delays in the transmission
mechanism. The model constructed is a non-linear delay-differential
equation system. Solutions to the model without time delays in
transmission are derived using the averaging method. The solutions show
that the model produces limit cycles representing business cycles. The
model with time delays in transmission is then solved numerically in order
to investigate the role played by the coupling strength and coupling delay
in transforming otherwise independent country-specific cycles into a
synchronized business cycle. The degree of synchronization of the business
cycle is shown to be positively related to the coupling strength.
Moreover, coupling delays above a certain threshold play a desynchronizing
role.
Journal: Review of Political Economy
Pages: 253-267
Issue: 2
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500067304
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500067304
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:2:p:253-267
Template-Type: ReDIF-Article 1.0
Author-Name: Howard Petith
Author-X-Name-First: Howard
Author-X-Name-Last: Petith
Title: Marx's analysis of the falling rate of profit in the first version of Volume III of capital
Abstract:
This paper provides an analysis of the Hodgskin section of Theories of
Surplus Value and the general law section of the first version of Volume
III of Capital. It then considers Part III of Volume III, the evolution of
Marx's thought and various interpretations of his theory in the light of
this analysis. It is suggested that, as late as the 1870s, Marx had hoped
to be able to provide a demonstration that the rate of profit must fall.
The main conclusions are that (1) Marx's major attempt to show that the
rate of profit must fall occurred in the general law section, (2) Part III
does not contain a demonstration that the rate of profit must fall and (3)
Marx was never able to demonstrate that the rate of profit must fall and
he was aware of this.
Journal: Review of Political Economy
Pages: 269-290
Issue: 2
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500067312
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500067312
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:2:p:269-290
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Lewis
Author-X-Name-First: Paul
Author-X-Name-Last: Lewis
Title: Structure, agency and causality in post-revival Austrian economics: tensions and resolutions
Abstract:
This paper aims to illustrate the benefits that accrue from critical
realism's sustained, explicit reflection about ontological issues. The
paper pursues this aim by examining the work of radical subjectivist
Austrian economists as it has developed since the post-1974 revival in the
fortunes of the Austrian school, focusing in particular on their account
of the generation of socio-economic order in decentralized market
economies. Ambiguities and tensions can be discerned in the radical
subjectivist account of the causal forces at work in the market process.
It is argued that the conceptual resources required for resolving those
tensions and ambiguities are to be found in critical realism. The final
section of the paper draws out some of the broader implications of the
suggested resolution for radical subjectivist Austrian economics.
Journal: Review of Political Economy
Pages: 291-316
Issue: 2
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500067320
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500067320
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:2:p:291-316
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Gualerzi
Author-X-Name-First: Davide
Author-X-Name-Last: Gualerzi
Title: Stiglitz on Globalization and Development with an Eye to Keynes
Abstract:
Joseph Stiglitz has laid out many of the issues central to the debate on
globalization in a compelling story in a recent influential book.
Globalization has become a contentious issue because the economic policies
advocated for and, at times, almost imposed upon developing countries by
international organizations such as the International Monetary Fund, the
World Bank and the World Trade Organization are based on misconceptions
about how market systems work. Market fundamentalism underlies the entire
policy framework of the Washington Consensus. The limits of this approach
are nowhere clearer than in the examples presented by developing and
transition economies. Many policy missteps could have been avoided by
adopting the main insights of traditional Keynesian theory, the basic
lessons of which remain valid, even if it has been largely excised from
the IMF's recipe book. The results of 20 years of market fundamentalism
make it clear that globalization and development are distinct issues and
that the former does not necessarily entail the latter. In order to
understand how they are connected we need to supplement macroeconomic
analysis with studies of how international economic integration comes
about.
Journal: Review of Political Economy
Pages: 317-329
Issue: 2
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500067338
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500067338
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:2:p:317-329
Template-Type: ReDIF-Article 1.0
Author-Name: Neri Salvadori
Author-X-Name-First: Neri
Author-X-Name-Last: Salvadori
Title: Introduction
Abstract:
Journal: Review of Political Economy
Pages: 345-348
Issue: 3
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500147056
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500147056
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:3:p:345-348
Template-Type: ReDIF-Article 1.0
Author-Name: Marcello De Cecco
Author-X-Name-First: Marcello
Author-X-Name-Last: De Cecco
Title: Sraffa's lectures on Continental banking: A preliminary appraisal
Abstract:
Piero Sraffa delivered a course of lectures on Continental banking to
Cambridge undergraduates in the spring term of 1929 and 1930. He wrote
extensive lecture notes, from which this paper reconstructs the structure
and contents of the course. Sraffa emphasised the differences between the
British and Continental, particularly German, banking systems, stressing
the importance of the relations between banks and industry on the
Continent. He also underlined the different roles played by central banks
in the two systems. The lectures are particularly interesting for the
light they throw on large German banks in the 1920s and on the eve of
their great crisis. The role of the allies in trying to reconstruct the
German banking system after the defeat of Germany on lines which would
weaken the banks' links with industry is brought into relief, as are the
Allies' reduction of the Reichsbank's role as lender of last resort. Due
attention is paid to the role of foreign capital in German banking in the
1920s and to the crucial impact of the drying up of this resource at the
end of the 1920s.
Journal: Review of Political Economy
Pages: 349-358
Issue: 3
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500147072
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500147072
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:3:p:349-358
Template-Type: ReDIF-Article 1.0
Author-Name: Rodolfo Signorino
Author-X-Name-First: Rodolfo
Author-X-Name-Last: Signorino
Title: Piero Sraffa's lectures on the advanced theory of value 1928-31 and the rediscovery of the classical approach
Abstract:
Sraffa's Lectures on the Advanced Theory of Value 1928-1931 and his two
preparatory Notes of summer and November 1927 provide a wealth of
material, up to now unpublished, for a reconstruction of the early stage
of his inquiry into the cognate fields of pure economic theory and its
history. The three manuscripts show that in the late 1920s Sraffa rejected
the Marshallian constant-cost interpretation of classical economics, an
interpretation to which he had adhered in his 1925 and 1926 papers.
Moreover, in the Lectures, Sraffa presents for the first time his own
interpretation of classical economics based on the concepts of surplus,
physical real costs and asymmetric treatment of distributive variables.
Journal: Review of Political Economy
Pages: 359-380
Issue: 3
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500147080
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500147080
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:3:p:359-380
Template-Type: ReDIF-Article 1.0
Author-Name: Mathieu Marion
Author-X-Name-First: Mathieu
Author-X-Name-Last: Marion
Title: Sraffa and Wittgenstein: Physicalism and constructivism
Abstract:
After a brief review of facts and hypotheses concerning Piero Sraffa's
intellectual exchanges with the philosopher Ludwig Wittgenstein and their
content, a brief presentation of some of the basic ideas of Productions of
Commodities by Means of Commodities is given, on the basis of which I
argue, first, that Sraffa's 'objectivism' in economics is closely related
to the 'physicalism' towards which Wittgenstein moved soon after his
return to Cambridge and, secondly, that the mathematics of that book are
in line with Wittgenstein's constructivist stance, as it is already found
in his Tractatus Logico-Philosophicus.
Journal: Review of Political Economy
Pages: 381-406
Issue: 3
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500147114
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500147114
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:3:p:381-406
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Napolitano
Author-X-Name-First: Giorgio
Author-X-Name-Last: Napolitano
Title: Sraffa and Gramsci: A recollection
Abstract:
Journal: Review of Political Economy
Pages: 407-412
Issue: 3
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500147148
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500147148
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:3:p:407-412
Template-Type: ReDIF-Article 1.0
Author-Name: Heinz Kurz
Author-X-Name-First: Heinz
Author-X-Name-Last: Kurz
Author-Name: Neri Salvadori
Author-X-Name-First: Neri
Author-X-Name-Last: Salvadori
Title: Representing the production and circulation of commodities in material terms: On Sraffa's objectivism
Abstract:
The paper discusses Sraffa's interpretation of the classical economists
and, following their lead, his elaboration of an objectivist,
surplus-based theory of value and distribution. The emphasis is on the
twin concepts of physical real costs and social surplus on the one hand
and that of a circular flow of production on the other. In order to
determine relative prices within such an analytical scheme, the tool of
simultaneous equations is indispensable. It is then argued that fixed
capital turned out to be a formidable obstacle: whereas the circulating
part of capital allows one to entertain the idea of a material-cum-value
transmigration into the product, this idea loses much of its appeal with
regard to the durable part. Sraffa eventually overcame the difficulty in
terms of the joint-products approach.
Journal: Review of Political Economy
Pages: 413-441
Issue: 3
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500147189
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500147189
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:3:p:413-441
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Gehrke
Author-X-Name-First: Christian
Author-X-Name-Last: Gehrke
Title: Bringing the edition of Ricardo's works to completion: The making of the General Index, 1951-73
Abstract:
The paper documents the gestation of the General Index to Piero Sraffa's
edition of The Works and Correspondence of David Ricardo. The available
documents suggest that Sraffa made every effort to bring the editorial
task he had been entrusted with to completion without sacrificing his
standards of precision. They also show that he had good reasons for
rejecting earlier versions of the General Index.
Journal: Review of Political Economy
Pages: 443-464
Issue: 3
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500147221
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500147221
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:3:p:443-464
Template-Type: ReDIF-Article 1.0
Author-Name: Ian Steedman
Author-X-Name-First: Ian
Author-X-Name-Last: Steedman
Title: The comparative statics of industry-level produced-input-use in HOS trade theory
Abstract:
We consider the industry-level use of inputs, per unit of gross output,
in a Heckscher-Ohlin-Samuelson model in which not only land and labour but
the two produced commodities are used as inputs. The rate of interest is
zero throughout and all the standard assumptions are made. When
alternative equilibria are compared, the use of land (of labour) is always
lower when the real rent (real wage) is higher. But even the assumption of
Hicksian substitution everywhere does not permit comparable conclusions
concerning the use of produced inputs. This is because a produced input
can never become more expensive relative to all three other inputs (unlike
a primary input).
Journal: Review of Political Economy
Pages: 465-470
Issue: 3
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500147254
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500147254
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:3:p:465-470
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Nistico
Author-X-Name-First: Sergio
Author-X-Name-Last: Nistico
Author-Name: Giorgio Rodano
Author-X-Name-First: Giorgio
Author-X-Name-Last: Rodano
Title: Reflections on Sraffa's Legacy in Economics: A review essay
Abstract:
This paper reviews Heinz D. Kurz's edited collection of Critical Essays
on Piero Sraffa's Legacy in Economics. Besides providing an evaluation of
the various contributions to the volume, the paper discusses some broad
issues such as the notion of 'price' emerging from Sraffa's Production of
Commodities, the role of demand in Sraffa's theory, the classical approach
to political economy, the Hayek-Keynes-Sraffa debate and the capital
controversy.
Journal: Review of Political Economy
Pages: 471-487
Issue: 3
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500147304
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500147304
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:3:p:471-487
Template-Type: ReDIF-Article 1.0
Author-Name: Giancarlo Bertocco
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Bertocco
Title: The Role of credit in a Keynesian monetary economy
Abstract:
This paper describes the features of a monetary economy on the basis of
Keynes's distinction between a real exchange economy and a monetary
economy. In The General Theory, Keynes identifies the reasons for the
non-neutrality of money by highlighting the store of wealth function of
money; this approach has been adopted by most Keynesian economists. The
aim of this paper is to show that such an approach only partially explains
the reasons for money non-neutrality and that important elements which
demonstrate the relevance of monetary variables emerge when the means of
payment function of money is considered. Investigating the role of this
function requires that we deal explicitly with how spending decisions are
financed. The paper argues that the market for credit must be considered
separately from the market for money, and that a viable credit theory can
be built from Keynes's post-General Theory writings.
Journal: Review of Political Economy
Pages: 489-511
Issue: 4
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500252740
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500252740
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:4:p:489-511
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Vera
Author-X-Name-First: Leonardo
Author-X-Name-Last: Vera
Title: Can Recession Feed Inflation? A Conflicting Claims Framework
Abstract:
This paper develops a rationale for the recession-induced inflation
hypothesis. Within a conflicting claims framework we present a model in
which both price leaders and organized workers set their nominal prices on
the basis of a desired profit rate and a real wage target respectively. We
argue that an absolute cost advantage in concentrated industries (for
instance in fixed costs) may provide oligopolistic leaders sufficient
margin to raise prices and restore a desired level of profitability during
a recession. The resultizng unstable income distribution will set off an
inflationary spiral if the firm's advantage in selling its output imparts
an upward bias to the flexibility of input prices (specifically wages).
Taking into consideration different scenarios for workers' bargaining
power we present a simple simulation experiment to analyze the inflation
and real wage paths of the economy after a negative output shock. When we
endogenize output, we show that for a high degree of the bargaining power,
output is likely to converge to a higher steady-state value.
Journal: Review of Political Economy
Pages: 513-531
Issue: 4
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500252799
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500252799
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:4:p:513-531
Template-Type: ReDIF-Article 1.0
Author-Name: David Dequech
Author-X-Name-First: David
Author-X-Name-Last: Dequech
Title: Confidence and alternative Keynesian methods of asset choice
Abstract:
This article elaborates the analysis of asset choice proposed by Keynes
and later adopted by Post Keynesians such as Paul Davidson and Hyman
Minsky. The article incorporates the essential aspects of the theory of
confidence presented in Dequech (1999), first into an investigation of the
relation between confidence and the liquidity premium and then into the
broader theory of asset choice. Keynes considered two methods of
determining planned investment expenditures: one method is based on the
comparison between the marginal efficiency of capital and the interest
rate; the other is based on the comparison between the demand price and
the supply price of a particular capital good. Both methods can be
generalized for asset choice, with investment as a particular case. The
article refines and develops these two methods so as to specify more
precisely the influence of confidence and speculation on the determination
of liquidity premia and hence on the several assets' profitability.
Journal: Review of Political Economy
Pages: 533-547
Issue: 4
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500252922
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500252922
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:4:p:533-547
Template-Type: ReDIF-Article 1.0
Author-Name: Costas Lapavitsas
Author-X-Name-First: Costas
Author-X-Name-Last: Lapavitsas
Title: The Emergence of Money in Commodity Exchange, or Money as Monopolist of the Ability to Buy
Abstract:
Money's emergence in commodity exchange remains an unresolved issue
within economic theory. Current general equilibrium models offer an
explanation that rests on the economic advantages of a universally
accepted means of exchange that is partly established through social
custom. These models neither fully explain money's unique ability to buy,
nor theorise the customary practices required for money's emergence. They
are dominated by Menger's earlier analysis of money's emergence, which
pays more attention to the social foundations of money but is still
hampered by Austrian individualism. An alternative explanation is given
here, drawing on Marx's theory of value but involving a thorough reworking
of it. An analytical process is established through which money finally
emerges as monopolist of the ability to buy. Particular social custom,
whose determinants are consistent with the social underpinnings of
commodity exchange, plays a vital role in money's emergence.
Journal: Review of Political Economy
Pages: 549-569
Issue: 4
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500252823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500252823
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:4:p:549-569
Template-Type: ReDIF-Article 1.0
Author-Name: G. R. Steele
Author-X-Name-First: G. R.
Author-X-Name-Last: Steele
Title: Psychology, social evolution and liberalism: a Hayekian trinity
Abstract:
The work of Friedrich Hayek describes an extensive political economy,
with explicit consideration of the psychological limits to human
understanding, the market as a mechanism of information gathering and
social coordination, and the relationship between market processes and the
free society, where moral and political issues are relevant within a
framework of continuous adaptation. Although the survival characteristics
of social institutions largely defy rational enquiry, political liberalism
secures the diversity that is necessary for evolutionary social
adaptation.
Journal: Review of Political Economy
Pages: 571-586
Issue: 4
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500253466
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500253466
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:4:p:571-586
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Fleetwood
Author-X-Name-First: Steve
Author-X-Name-Last: Fleetwood
Title: A critical realist reply to Walters & Young
Abstract:
In a contribution to this journal, Bernard Walters & David Young offer a
brief sketch of critical realism and three objections to it. This reply
starts with three points of clarification to their sketch before going on
to tackle their objections.
Journal: Review of Political Economy
Pages: 587-600
Issue: 4
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500253482
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500253482
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:4:p:587-600
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Walters
Author-X-Name-First: Bernard
Author-X-Name-Last: Walters
Author-Name: David Young
Author-X-Name-First: David
Author-X-Name-Last: Young
Title: Further Reflections on Critical Realism
Abstract:
We deal with the main points of Fleetwood's response to our earlier paper
and argue that our main contentions remain intact. Critical Realism (CR)
remains epistemologically weak; its claims for the usefulness of
explanatory power are unconvincing; and, in particular, it provides little
help in assessing rival theories. Furthermore, its appreciation of
alternative theoretical accounts is underdeveloped because of the tendency
to use broad ontological claims to delineate a preferred type of theory.
Finally, we argue that the further elaboration of CR by Fleetwood serves
to illuminate rather than ameliorate its shortcomings.
Journal: Review of Political Economy
Pages: 601-607
Issue: 4
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500254043
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500254043
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:4:p:601-607
Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Reati
Author-X-Name-First: Angelo
Author-X-Name-Last: Reati
Title: Value and exploitation: a comment
Abstract:
This paper comments on a recent paper by Ernesto Screpanti (2003), in
this journal, on Marxian theories of value and exploitation. The paper
argues, in opposition to Screpanti, that the labour theory of value is the
most suitable foundation for a realistic and historically determined
vision of society; that labour values provide a unique coherent conceptual
framework for understanding the nature of profit; that the inconsistency
of labour values is only apparent, as it disappears with a judicious
choice of numeraire; and that prices of production explain much less than
labour values and are therefore an inadequate substitute for the latter.
Journal: Review of Political Economy
Pages: 609-617
Issue: 4
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500255750
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500255750
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:4:p:609-617
Template-Type: ReDIF-Article 1.0
Author-Name: Ernesto Screpanti
Author-X-Name-First: Ernesto
Author-X-Name-Last: Screpanti
Title: Value and Exploitation: a Rejoinder
Abstract:
Journal: Review of Political Economy
Pages: 619-619
Issue: 4
Volume: 17
Year: 2005
X-DOI: 10.1080/09538250500254050
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500254050
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Handle: RePEc:taf:revpoe:v:17:y:2005:i:4:p:619-619
Template-Type: ReDIF-Article 1.0
Author-Name: James Hartley
Author-X-Name-First: James
Author-X-Name-Last: Hartley
Title: Kydland and Prescott's Nobel Prize: the methodology of time consistency and real business cycle models
Abstract:
Finn Kydland and Edward Prescott won the 2004 Nobel Prize in Economics
for their work on time consistency and real business cycle models. What
united the work in these two papers is the method of modeling the economy.
In the mid-1970s, Kydland and Prescott set out to use optimal control
theory in a rational expectations model, and ended up being credited with
a sea change in the manner in which economists think about central
banking. In the early 1980s, Kydland and Prescott set out to look at the
effect of time-to-build and ended up being credited with a monumental
change in the manner in which economists study the macroeconomy. An
overview of their Nobel-meriting work both shows what they were trying to
accomplish and how well they accomplished their aim.
Journal: Review of Political Economy
Pages: 1-28
Issue: 1
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250500353993
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500353993
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Template-Type: ReDIF-Article 1.0
Author-Name: S. Charusheela
Author-X-Name-First: S.
Author-X-Name-Last: Charusheela
Author-Name: Colin Danby
Author-X-Name-First: Colin
Author-X-Name-Last: Danby
Title: A through-time framework for producer households
Abstract:
Taking as its central case urban producer households of a kind widely
found in the third world, this paper shows that the through-time analyses
of material activities developed by Marxist and Post Keynesian theorists
are as applicable to 'reproductive' household activities as they are to
market-directed production. Drawing on and extending work by Marxist
feminist theorists, it develops an internal critique of the
productive-reproductive divide by showing that if the material activities
of reproduction are taken as seriously as those of for-market production,
multiple and complex links between the two spheres become apparent. In
this framework insights from different theoretical traditions can be
brought into conversation with one another. These points are extended via
a critique of the assumption that households are bounded and discrete
units. Among other uses, the framework facilitates scrutiny of the
assumptions used by advocates for microcredit programs.
Journal: Review of Political Economy
Pages: 29-48
Issue: 1
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250500354108
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500354108
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:1:p:29-48
Template-Type: ReDIF-Article 1.0
Author-Name: Dell Champlin
Author-X-Name-First: Dell
Author-X-Name-Last: Champlin
Author-Name: Eric Hake
Author-X-Name-First: Eric
Author-X-Name-Last: Hake
Title: Immigration as industrial strategy in American meatpacking
Abstract:
This paper examines the connections linking recent changes in Latino
migration, the American meatpacking industry, and American immigration
policy. As the meatpacking industry has vertically integrated and shifted
to rural non-union areas throughout the South, it has grown increasingly
dependent on short-term low-skilled employees. This process can be
understood as the industrialization of meatpacking, where profitability
depends on continuous high-throughput production. To succeed, the
industrialization of meatpacking requires a large pool of easily
replaceable labor that has no control over the pace work on of the shop
floor. At the same time, as immigrants have been drawn to these new
company towns, American immigration policy has turned increasingly towards
border enforcement. We argue that the presence of illegal immigrants
within the factories reduces the bargaining power of shop workers and
increases employer control. Most studies of immigration have focused on
the supply of migrant labor, the immigrants attracted to higher paying
jobs. We argue that valuable insight is gained by looking at the
manufacturers' demand for cheap labor and the implementation of an
industrial strategy that requires it.
Journal: Review of Political Economy
Pages: 49-70
Issue: 1
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250500354140
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500354140
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:1:p:49-70
Template-Type: ReDIF-Article 1.0
Author-Name: Korkut Erturk
Author-X-Name-First: Korkut
Author-X-Name-Last: Erturk
Title: On the Tobin Tax
Abstract:
This paper clarifies why a transaction tax, such as the Tobin Tax, can
stabilize financial markets. In markets that are already fairly deep,
relatively small changes in trading volume are unlikely to have any impact
(positive or negative) on volatility. Thus, a Tobin Tax can potentially
have a stabilizing effect on international currency markets not because it
reduces the excessive volume of transactions of speculators, but because
it can slow down the speed with which market traders react to changes in
prices of currencies. Moreover, it can lower their elasticity of future
price expectations with respect to current price changes, which also has a
stabilizing effect. Thus, to the extent that a Tobin Tax causes traders in
financial markets to delay their decisions, a few 'grains of sand in the
wheels of international finance' can indeed be stabilizing. Whether or not
that is sufficient to prevent speculative attacks on currencies is a
different matter.
Journal: Review of Political Economy
Pages: 71-78
Issue: 1
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250500354173
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500354173
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:1:p:71-78
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Leeson
Author-X-Name-First: Peter
Author-X-Name-Last: Leeson
Author-Name: Christopher Coyne
Author-X-Name-First: Christopher
Author-X-Name-Last: Coyne
Author-Name: Peter Boettke
Author-X-Name-First: Peter
Author-X-Name-Last: Boettke
Title: Does the market self-correct? Asymmetrical adjustment and the structure of economic error
Abstract:
While both errors of overoptimism and errors of overpessimism are
possible in the face of imperfect information, the presence of option
value from deferring a decision to exchange causes trader errors to be
overpessimistically biased. This is problematic because, unlike errors of
overoptimism, errors of overpessimism are not 'automatically' revealed to
the agents who make them. Furthermore, owing to the 'bad news principle of
irreversible investment,' these errors are likely to persist. We show how
entrepreneurial activity corrects such errors and prevents their
persistence, creating a tendency towards market efficiency despite the
presence of imperfect information.
Journal: Review of Political Economy
Pages: 79-90
Issue: 1
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250500354181
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500354181
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:1:p:79-90
Template-Type: ReDIF-Article 1.0
Author-Name: Mohsen Bahmani-Oskooee
Author-X-Name-First: Mohsen
Author-X-Name-Last: Bahmani-Oskooee
Author-Name: Gour Goswami
Author-X-Name-First: Gour
Author-X-Name-Last: Goswami
Title: Political rights, civil liberties, and the black market premium on foreign exchange: Evidence from developing countries
Abstract:
Investigating the impact of institutional factors on macroeconomic
variables has gained momentum in recent years. In this paper we
investigate the impact of political rights and civil liberties on the
black market premium on foreign exchange. After taking account of other
important determinants of the black market premium, we show that less
political rights and less civil liberties result in a higher black market
premium. The empirical results are based on cross-sectional and panel
regressions using data from 63 developing countries over the period
1972-1998.
Journal: Review of Political Economy
Pages: 91-104
Issue: 1
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250500354199
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500354199
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:1:p:91-104
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Mearman
Author-X-Name-First: Andrew
Author-X-Name-Last: Mearman
Title: Eriksson on critical realism: a comment
Abstract:
This note offers a critique of Ralf Eriksson's treatment of Critical
Realism. Eriksson, in the context of an analysis of Keynes, makes several
mistaken claims about Critical Realism. Specifically, contrary to
Eriksson, Critical Realism does not claim that the world is independent of
consciousness, that isolation and closure are equivalent, that abstraction
and closure are equivalent, that Lawson employs double standards in the
possibility of closed systems, or that realist theories must be simple.
Eriksson attacks a vulgar form of realism, but not Critical Realism as it
currently stands. We also argue that Eriksson's misinterpretations may be
partially due to some ambiguous statements in the Critical Realist
literature.
Journal: Review of Political Economy
Pages: 105-112
Issue: 1
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250500254134
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:1:p:105-112
Template-Type: ReDIF-Article 1.0
Author-Name: Ralf Eriksson
Author-X-Name-First: Ralf
Author-X-Name-Last: Eriksson
Title: Eriksson on Critical Realism: a rejoinder
Abstract:
In this response to Andrew Mearman I argue that his critique suffers from
a series of misrepresentations of my paper. For example, Mearman
generalizes my arguments about Keynes to be about Critical Realism (CR),
and he challenges my criticism of Tony Lawson's arguments by claiming that
I have misrepresented CR. In fact the text of my 1998 paper does not
support Mearman's claims. Furthermore, since (i) the principal aim of my
paper was to question the interpretation of Keynes as a realist, and (ii)
Mearman does not present any arguments suggesting how CR in its current
form would refute my conclusions, his criticism must be judged doubly
misdirected.
Journal: Review of Political Economy
Pages: 113-118
Issue: 1
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250500255719
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250500255719
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:1:p:113-118
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Besomi
Author-X-Name-First: Daniele
Author-X-Name-Last: Besomi
Title: 'Marxism Gone Mad': Tugan-Baranovsky on crises, their possibility and their periodicity
Abstract:
Tugan-Baranovsky's theory of crises has two components: a theory of
markets, defining the condition under which expanded reproduction can take
place, and a theory of crises proper, explaining how any rupture of
equilibrium is amplified and extended to the whole system and gives rise
to periodical fluctuations. The former, based on the Marxian schemes of
reproduction, is logically preliminary to the latter, which relies on the
accumulation and depletion of loanable funds. In spite of Tugan's
insistence on this nexus, academic commentators have ignored Tugan's
theory of markets, while Marxist critics have focused exclusively on this
aspect and charged Tugan with upholding Say's Law. While this reading is
not entirely justified, there is indeed a deep difference between Tugan's
and Marx's interpretation of crises. While Marx considers crises as the
necessary corrective to the systematic and necessary breaches of
equilibrium, Tugan sees equilibrium as the norm and crises a deviation
from it, albeit recurring and periodical.
Journal: Review of Political Economy
Pages: 147-171
Issue: 2
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600571338
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600571338
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:2:p:147-171
Template-Type: ReDIF-Article 1.0
Author-Name: Keiran Sharpe
Author-X-Name-First: Keiran
Author-X-Name-Last: Sharpe
Title: Effective demand in a stylised Keynesian model of growth
Abstract:
This paper models an economy which suffers from a coordination failure
and lack of effective demand in the long run. Specifically, it shows that
an input-output economy, with or without credit rationing, converges to a
long-period growth path, but that this path is generally Pareto
sub-optimal. Yet, although Keynesian problems extend to the long run,
typical Keynesian solutions do not: the government seems generally
incapable of sustaining growth by demand management measures. The question
as to what the government can do to sustain growth is an open one.
Journal: Review of Political Economy
Pages: 173-191
Issue: 2
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600571353
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600571353
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:2:p:173-191
Template-Type: ReDIF-Article 1.0
Author-Name: Ramesh Chandra
Author-X-Name-First: Ramesh
Author-X-Name-Last: Chandra
Author-Name: Roger Sandilands
Author-X-Name-First: Roger
Author-X-Name-Last: Sandilands
Title: The role of pecuniary external economies and economies of scale in the theory of increasing returns
Abstract:
This paper investigates some issues relating to the phenomenon of
increasing returns: (1) What is the role of economies of scale in the
theory of increasing returns? (2) Do pecuniary external economies lead to
market failure and justify intervention in the market mechanism? (3) Are
increasing returns sector-specific or generalised, and if they are sector
specific, is it possible to identify and promote these sectors from a
policy point of view? We argue that economies of scale are incidental to
the broader phenomenon of increasing returns and therefore cannot
adequately explain their existence. On the second question, we argue that
the presence of pecuniary external economies is characteristic of a
well-functioning market system rather than an indication of its failure.
Finally, increasing returns are generalised, so that policies intended to
identify and promote specific sectors will tend to distort intersectoral
relationships. Sector-specific polices should not be based on the logic of
increasing returns, but should aim to correct sector-specific handicaps.
Journal: Review of Political Economy
Pages: 193-208
Issue: 2
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600571361
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600571361
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:2:p:193-208
Template-Type: ReDIF-Article 1.0
Author-Name: Usamah Uthman
Author-X-Name-First: Usamah
Author-X-Name-Last: Uthman
Title: Profit-sharing versus interest-taking in the Kaldor-Pasinetti theory of income and profit distribution
Abstract:
This paper reformulates the Kaldor-Pasinetti model of income and profit
distribution by introducing the interest rate from the very outset of the
model but maintaining other Kaldor-Pasinetti assumptions intact. It is
shown that the profit rate and the share of profits in national income are
not independent from either the capitalists' or workers' propensity to
save. Many contributors to the theory of income and profit distribution
have erred in attributing a potentially positive impact of the interest
rate upon profits. The interest rate is always and everywhere a tax on
functional and personal incomes together. This result explains
Schumpeter's observation that 'Interest acts as a tax upon profit.' In an
alternative model, workers receive a share of profits instead of fixed
contractual interest. It is shown that the profit rate and share are not
independent from either propensity to save. Furthermore, the workers'
share of profits has a positive impact on the rate and share of profits.
This implies that a profit sharing regime could be more conducive to
capital accumulation and job creation. It is found that Pasinetti's
Cambridge Equation is more akin to a profit sharing regime.
Journal: Review of Political Economy
Pages: 209-222
Issue: 2
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600571387
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600571387
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:2:p:209-222
Template-Type: ReDIF-Article 1.0
Author-Name: H. Sonmez Atesoglu
Author-X-Name-First: H. Sonmez
Author-X-Name-Last: Atesoglu
Author-Name: John Smithin
Author-X-Name-First: John
Author-X-Name-Last: Smithin
Title: Real wages, productivity and economic growth in the G7, 1960-2002
Abstract:
This paper investigates empirical real wage and productivity dynamics in
the G7 countries using annual data for 1960-2002. The findings suggest
that the level of labor productivity is positively related to GDP growth
in all countries, and real wages are positively related to growth in some
of them. The results tend to confirm the 'profit paradox'. This postulates
a positive relationship between economic growth and the aggregate profit
share, and suggests that the frequent support of business interests for
deflationary economic policies is a puzzle.
Journal: Review of Political Economy
Pages: 223-233
Issue: 2
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600571478
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600571478
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:2:p:223-233
Template-Type: ReDIF-Article 1.0
Author-Name: Mark White
Author-X-Name-First: Mark
Author-X-Name-Last: White
Title: A Kantian critique of neoclassical law and economics
Abstract:
This paper outlines a critique of neoclassical law and economics based on
the ethics of Immanuel Kant, focusing on four central topics: efficiency
as the sole evaluative criterion for policy-making, hypothetical
compensation in Kaldor-Hicks efficiency, the instrumental nature of rights
and the assumption of reciprocal causation, and the role of punishment to
both society and the individual. This overview addresses issues of concern
not just to Kantians, but to anyone dissatisfied with the utilitarian
foundations of law and economics and the amoral view of law upon which it
is based.
Journal: Review of Political Economy
Pages: 235-252
Issue: 2
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600571494
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600571494
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:2:p:235-252
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Koechlin
Author-X-Name-First: Timothy
Author-X-Name-Last: Koechlin
Title: Stiglitz and his discontent
Abstract:
Globalization and its Discontents is Joseph Stiglitz's attempt to
articulate to a wide audience his trenchant critique of the International
Monetary Fund, its vision of globalization and, in effect, the
organization of the world capitalist system. This paper argues that while
Globalization and its Discontents is deeply flawed, it is ultimately an
important book. Stiglitz's critique of IMF-style globalization is rooted
in mainstream economic theory, but its conclusions are quite radical.
Stiglitz argues that IMF policies favor the rich over the poor, stifle
development, undermine democracy, and promote financial instability and
crisis. His claims are by no means original. But no economist with
comparably impeccable mainstream credentials has asserted so forcefully
that globalization's critics are, on many crucial issues, correct. The
power of Stiglitz's book lies primarily not in its originality or insight,
but in its legitimization of popular criticisms of globalization.
Journal: Review of Political Economy
Pages: 253-264
Issue: 2
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600571551
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600571551
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:2:p:253-264
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Kliman
Author-X-Name-First: Andrew
Author-X-Name-Last: Kliman
Title: Screpanti versus Marx on exploitation: a comment
Abstract:
Ernesto Screpanti recently claimed to prove that Marx's value theory is
logically inconsistent. Jettisoning the value theory, he then
reconstructed Marx's theory of exploitation in a manner that supposedly
preserves the gist of the original. This note shows that Screpanti's proof
of inconsistency is invalid and that his reconstruction contradicts the
original theory of exploitation in significant ways, for instance by
implying that workers who perform surplus labor can exploit capitalists.
Journal: Review of Political Economy
Pages: 265-269
Issue: 2
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600571585
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600571585
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:2:p:265-269
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Cesaratto
Author-X-Name-First: Sergio
Author-X-Name-Last: Cesaratto
Title: Pensions in an ageing society: a symposium
Abstract:
Journal: Review of Political Economy
Pages: 295-299
Issue: 3
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600797677
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600797677
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:3:p:295-299
Template-Type: ReDIF-Article 1.0
Author-Name: Pierre Concialdi
Author-X-Name-First: Pierre
Author-X-Name-Last: Concialdi
Title: Demography, the cost of pensions and the move to pension funds
Abstract:
This article analyses the consequences of the so-called 'ageing' of the
population on the level of public pension expenditure. It provides
detailed figures for all countries of the European Union, with a
distinction between former member States and new member States. The
article first shows that there is a great heterogeneity across European
countries concerning the size of this demographic change. It also provides
a detailed analysis of various dependency ratios. The main conclusion of
this analysis is that the economic impact of structural changes that
European Countries will face in the future is not as bad as the use of
rather simplistic dependency ratios would have us believe. Assuming a
reasonable economic growth, the financing of pensions is affordable and
will not create an impossible burden for the economy. However, the
distribution of the annual increase in economic resources between the
economically active population and the overall dependent population will
change to a significant extent. This is mainly a political issue that
would require a full debate.
Journal: Review of Political Economy
Pages: 301-315
Issue: 3
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600797735
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600797735
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:3:p:301-315
Template-Type: ReDIF-Article 1.0
Author-Name: Carmelo Mesa-Lago
Author-X-Name-First: Carmelo
Author-X-Name-Last: Mesa-Lago
Title: Private and public pension systems compared: an evaluation of the Latin American experience
Abstract:
This article briefly explains the main features of public and private
pension systems, as well as structural and parametric pension reforms. Its
core compares performance, within Latin America, between private pension
systems in ten countries and public pension systems in eight countries,
based on nine indicators: labor force coverage, ages of retirement and
pension levels, gender equality, administrative costs, wage contributions,
compliance, portfolio diversification in investment of pension funds,
rates of returns of investment, and financial equilibrium. Contrary to
what is often maintained, the article concludes that public systems
perform better than private ones in most of those indicators.
Journal: Review of Political Economy
Pages: 317-334
Issue: 3
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600797768
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600797768
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:3:p:317-334
Template-Type: ReDIF-Article 1.0
Author-Name: Eladio Febrero
Author-X-Name-First: Eladio
Author-X-Name-Last: Febrero
Author-Name: Maria-Angeles Cadarso
Author-X-Name-First: Maria-Angeles
Author-X-Name-Last: Cadarso
Title: Pay-As-You-Go versus funded systems. Some critical considerations
Abstract:
Longer life expectancy and lower fertility rates will lead to an ageing
population in most Western countries. This is thought to make
earnings-based defined-benefit pay-as-you-go pension schemes unviable in
the near future. Some economists suggest shifting towards a capitalized
funded system grounding their proposal on the following advantages: (i) it
raises national saving, thus leading to a faster rate of accumulation and
a larger per capita income; (ii) it offers a higher rate of return on
savings; (iii) it is immune to demographic shifts. In this paper we
explore the fundamentals of these advantages, and conclude that the
theoretical basis supporting them is very weak. We base our theoretical
standpoint on the Sraffian-based capital critique and the theory of
endogenous money. Additionally, we defend a parametric reform of a
standard PAYG using figures that correspond to the Spanish economy for the
period 2001-70.
Journal: Review of Political Economy
Pages: 335-357
Issue: 3
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600797792
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600797792
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:3:p:335-357
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Contini
Author-X-Name-First: Bruno
Author-X-Name-Last: Contini
Author-Name: Roberto Leombruni
Author-X-Name-First: Roberto
Author-X-Name-Last: Leombruni
Title: From work to retirement: a tale of bumpy routes
Abstract:
This paper contributes to the debate on ageing with an empirical
assessment of how this issue has become evident in the Italian labour
market in recent decades. To set the stage, we describe the effects of
population ageing on the workforce, and how workforce ageing has been
dealt with by firms of different dimensions. Then we focus on the working
careers of older individuals, and particularly on the current modes of
transition from work to retirement. The stereotyped view is that
end-of-career percourses in Italy have been 'linear', with smooth
transitions from lifetime jobs to retirement. This paper challenges this
view, showing that the ends-of-career of an important share of the working
population is marked by irregular patterns of labour market activity, with
negative impacts on their wages and pensions. This has been true in recent
years also as a consequence of collective dismissals and early retirement
practices followed in the large-firm sector, and it may worsen in the
future. The paper argues that policy reforms aiming at the flexibilization
of retirement should adequately target the most vulnerable group of
workers, and that a revision of social security contributions is necessary
to reduce the fiscal wedge between the younger and the older generations.
Journal: Review of Political Economy
Pages: 359-378
Issue: 3
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600797842
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600797842
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:3:p:359-378
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Pivetti
Author-X-Name-First: Massimo
Author-X-Name-Last: Pivetti
Title: The 'principle of scarcity', pension policy and growth
Abstract:
The picture one is bound to form of the whole question of pensions
depends on whether one views it through the lens of the 'principle of
scarcity' or through that of the 'principle of the underutilisation of
productive resources in a market economy.' A generous PAYG system of the
defined-benefit type is here defended as the best retirement system one
can conceive of in light of the principle of underutilised resources. The
nature of the main obstacles that the implementation of such a system is
likely to encounter in the present set of historical conditions is
outlined in the final part of the paper.
Journal: Review of Political Economy
Pages: 379-390
Issue: 3
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600797875
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600797875
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:3:p:379-390
Template-Type: ReDIF-Article 1.0
Author-Name: L. Randall Wray
Author-X-Name-First: L. Randall
Author-X-Name-Last: Wray
Title: Social security in an aging society
Abstract:
Most of the recent claims that Social Security faces major financial
challenges in the years ahead rely on the recognition that the US
population is aging. Indeed, the coming wave of baby-boomer retirements
plays a continuing role in calls for 'reform' of the program. However, the
general aging of the population ensures that the problem will not go away
even when that generation passes on. This paper focuses on the demographic
trends facing the US (and world)—why is the population aging, and
how fast? Will this lead to an intolerable burden on future generations of
workers? While most of the public discussion focuses on Social Security's
long-term finances, what really matters is whether the economy will be
able to produce a sufficient quantity of real goods and services to
provide for both workers and dependents in, say, the year 2080. If it
cannot, then regardless of Social Security's finances, the real living
standards of Americans in 2080 will have to be lower than they are today.
Any reforms to Social Security made today should focus on increasing the
economy's capacity to produce real goods and services, rather than on
ensuring positive actuarial balances. It will be demonstrated that
projected demographic changes are surprisingly modest, and can be
accommodated at a measured pace with fairly small policy reforms.
Journal: Review of Political Economy
Pages: 391-411
Issue: 3
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600797925
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600797925
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:3:p:391-411
Template-Type: ReDIF-Article 1.0
Author-Name: Aldo Barba
Author-X-Name-First: Aldo
Author-X-Name-Last: Barba
Title: Viability of Pay-As-You-Go pension systems: a demand side perspective
Abstract:
We analyse the effects that changes in the scale of public pension
systems may exert on production and employment when there is some unused
productive capacity, and income distribution results from workers' and
capitalists' inconsistent claims on output shares. The essay calls
attention to the way in which pension schemes, functional income
distribution, and the principle of effective demand interact in the short
run.
Journal: Review of Political Economy
Pages: 413-425
Issue: 3
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600797966
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600797966
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:3:p:413-425
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Walker
Author-X-Name-First: Alan
Author-X-Name-Last: Walker
Author-Name: Liam Foster
Author-X-Name-First: Liam
Author-X-Name-Last: Foster
Title: Caught between virtue and ideological necessity. A century of pension policies in the UK
Abstract:
This article describes the introduction and subsequent development of old
age pensions in the UK. In accounting for nearly a century of pensions
history it eschews the idea of linear progression and, instead, charts the
interrelated histories that constitute the complex picture of retirement
income. These include public pension provision, starting in 1908, the
extension of social insurance in the late 1940s and the reform of pensions
from a neo-liberal perspective in the 1980s. It also charts the emergence
of occupational pension schemes and their impact on social stratification
in old age. The article emphasises that, despite changes in pension
provision over this long period and the transformation in work force
composition and family structure, many of the same issues that concerned
policy makers and campaigners in this field a 100 years ago are still
present today. Examples include the questions of how to encourage and
reward thrift, maintain financial viability and eradicate poverty. The
article includes some speculation about the future direction of pensions
policy in the UK and, finally, places this country in a European pensions
policy context.
Journal: Review of Political Economy
Pages: 427-448
Issue: 3
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600797990
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600797990
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:3:p:427-448
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Michl
Author-X-Name-First: Thomas
Author-X-Name-Last: Michl
Title: Capitalists, workers, and the burden of debt
Abstract:
This paper analyzes the burden of debt in a growth model that combines
overlapping generations of workers who save for life-cycle reasons and
dynastic agents who save for bequest reasons ('capitalists'). Ricardian
Equivalence prevails, but capitalists regard the debt serviced out of
taxes on workers as net wealth. In the long run, the Cambridge Theorem
holds: the relationship between the rate of profit and rate of growth is
determined by the capitalist saving function, independently of worker or
government saving. Two alternative closures are considered. Under
exogenous growth constrained by a fully employed labor force, debt and
deficits result in temporary effects on the distribution of income but
permanent effects on the distribution of wealth. Under endogenous growth
constrained by a fully utilized capital stock, debt and deficits result in
temporary effects on the growth rates of the components of wealth and
permanent effects on the level and distribution of capital.
Journal: Review of Political Economy
Pages: 449-467
Issue: 4
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600915626
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600915626
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:4:p:449-467
Template-Type: ReDIF-Article 1.0
Author-Name: John Sarich
Author-X-Name-First: John
Author-X-Name-Last: Sarich
Title: What do we know about the real exchange rate? A classical cost of production story
Abstract:
This paper argues that exchange rate models rooted in the theory of
Purchasing Power Parity (PPP) and balanced trade are fundamentally
mis-specified, as evidenced by the disjuncture between: (1) the empirical
evidence, which largely refutes PPP; and (2) the empirical result that
'real' productivity shocks are associated with observed secular trends in
exchange rates. In the former case we have a theory without convincing
evidence, and in the latter case we have empirical evidence in want of a
consistent theory. If looked at from the perspective of a 'cost of
production' theory of prices, such empirical results might not be so
theoretically anomalous. So-called 'real' variables (especially
productivity and unit labor costs), let in through the side door as
'shocks' to PPP equilibrium, may in fact be part and parcel of the
formation of prices of production on an international scale through
capitalist competition. The primary conclusion is that the empirical
evidence supports a cost of production theory of the terms of trade and
the real exchange rate. The empirical evidence in support of the
Balassa-Samuelson model of the exchange rate is re-interpreted in this
light. In this interpretation, parity holds only in terms of rates of
return on investment which, in the classical tradition, are presumed to
equalize across industries internationally.
Journal: Review of Political Economy
Pages: 469-496
Issue: 4
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600915642
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600915642
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:4:p:469-496
Template-Type: ReDIF-Article 1.0
Author-Name: Mario Cassetti
Author-X-Name-First: Mario
Author-X-Name-Last: Cassetti
Title: A note on the long-run behaviour of Kaleckian models
Abstract:
This paper discusses the mechanisms that drive Kaleckian models towards
their long-run equilibria. After an exposition of a recent version of the
Kaleckian model and of its medium-run solution, we show that the
utilization and profit rates may converge endogenously toward their normal
values. The model's stability conditions and the possibility of hysteresis
effects are then discussed. It turns out that the main Kaleckian results
can be extended to the long run.
Journal: Review of Political Economy
Pages: 497-508
Issue: 4
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600915683
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600915683
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:4:p:497-508
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Mann
Author-X-Name-First: Stefan
Author-X-Name-Last: Mann
Title: Merit goods in a utilitarian framework
Abstract:
Merit goods are defined here as goods for which government interference
with the aggregated willingness to pay increases utility. The paper argues
that three cases exist where consideration for merit goods would lead to a
Pareto improvement and where merit goods should therefore be reintegrated
into the public economics framework. The state may be better informed
about the conditions for the possibility of certain consumer wants. In
cases of multiple preference orders within one person, the state may need
to play a role if market preferences and reflective preferences are to
converge. And the state may be needed to internalize psychological
externalities. The inclusion of the merit goods concept may explain how
some policies, like schooling policy, may increase overall well-being,
whereas the classical public economics framework is unable to do so.
Journal: Review of Political Economy
Pages: 509-520
Issue: 4
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600915691
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600915691
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:4:p:509-520
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Garnett
Author-X-Name-First: Robert
Author-X-Name-Last: Garnett
Title: Paradigms and pluralism in heterodox economics
Abstract:
This paper seeks to reconcile two competing visions of heterodox
economics: a radical Kuhnian view in which the chief aim of heterodox
economists is to construct a unique, superior, and ultimately hegemonic
paradigm to replace the prevailing paradigm(s) of mainstream economics,
and an emerging pluralist view in which the principal goal of heterodox
economics is to promote intellectual tolerance and exchange among academic
economists at large. The author claims that leading heterodox economists
(some of whom profess to be pluralists) remain committed to the
paradigmist approach, but that heterodox economists would be better served
by a freedom-centered synthesis of paradigmism and pluralism: an
egalitarian pluralism that is committed to intellectual diversity as well
as to capabilities-enhancing reforms in economic education, scholarship,
and professional development. The author outlines a philosophical
framework and justification for this egalitarian pluralist economics,
combining McCloskey's vision of science as a pluralistic conversation with
Sen's capability-centered view of human development.
Journal: Review of Political Economy
Pages: 521-546
Issue: 4
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600915725
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600915725
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:4:p:521-546
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Perelman
Author-X-Name-First: Michael
Author-X-Name-Last: Perelman
Title: The neglect of replacement investment in keynesian economics
Abstract:
This article describes Keynes's early analysis of replacement investment
and his subsequent neglect of the subject, especially by his followers. It
goes on to explain how this deficiency helped to mislead later economists
who attempted to use Keynes as a guide for economic policy and theory and
the consequences of the errors of these economists.
Journal: Review of Political Economy
Pages: 547-559
Issue: 4
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600915741
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600915741
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:4:p:547-559
Template-Type: ReDIF-Article 1.0
Author-Name: Esteban Perez Caldentey
Author-X-Name-First: Esteban Perez
Author-X-Name-Last: Caldentey
Title: Harrod's interwar papers and correspondence: a review essay
Abstract:
This essay reviews Daniele Besomi's recently published three-volume
collection of Roy F. Harrod's interwar correspondence and writings.
Journal: Review of Political Economy
Pages: 561-569
Issue: 4
Volume: 18
Year: 2006
X-DOI: 10.1080/09538250600915766
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250600915766
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Handle: RePEc:taf:revpoe:v:18:y:2006:i:4:p:561-569
Template-Type: ReDIF-Article 1.0
Author-Name: Greg Hannsgen
Author-X-Name-First: Greg
Author-X-Name-Last: Hannsgen
Title: A Random Walk Down Maple Lane? A Critique of Neoclassical Consumption Theory with Reference to Housing Wealth
Abstract:
The development of the permanent income/life cycle consumption hypothesis
was a key blow to Keynesian and Kaleckian economics, and, according to
George Akerlof, it 'set the agenda' for modern neoclassical
macroeconomics. This paper focuses on the relationship of housing wealth
to neoclassical consumption theory and, in particular, the degree to which
homes can be treated collectively with other forms of 'permanent income.'
The neoclassical analysis will be evaluated as a partly normative and
partly positive one, in recognition of the dual function of the
neoclassical theory of rationality. The paper rests its critique primarily
on the distinctive role of homes in social life; theories that fail to
recognize this role jeopardize the social and economic goods at stake.
Since many families do not own large amounts of assets other than their
places of residence, these issues have important ramifications for the
relevance of consumption theory as a whole.
Journal: Review of Political Economy
Pages: 1-20
Issue: 1
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250601080719
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250601080719
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Template-Type: ReDIF-Article 1.0
Author-Name: Irene Van Staveren
Author-X-Name-First: Irene
Author-X-Name-Last: Van Staveren
Title: Beyond Utilitarianism and Deontology: Ethics in Economics
Abstract:
This article starts from a methodological position that fact and value
are mutually related, both in the real world and in economic analysis. It
then discusses deontological ethics. This approach is concerned with
equality and dignity, as expressed in right and norms, and how these
rights and norms constrain individual choices. Deontology is thus
different from the utility maximisation of utilitarian ethics, where
ethics appears in utility functions as moral preferences. The paper then
argues that, although deontology does better than utilitarianism in
analysing ethics in economics, it has its own weaknesses. These weaknesses
require another theory of ethics for economics, virtue ethics, which
emphasises the interrelatedness of agents and commitment to shared values
beyond the rules that a society has institutionalised. Virtue ethics
internalises morality not as a preference or a constraint, but through the
practices in which agents are related in their pursuit of value added.
Journal: Review of Political Economy
Pages: 21-35
Issue: 1
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250601080776
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250601080776
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:1:p:21-35
Template-Type: ReDIF-Article 1.0
Author-Name: Nuno Martins
Author-X-Name-First: Nuno
Author-X-Name-Last: Martins
Title: Ethics, Ontology and Capabilities
Abstract:
Amartya Sen's capability approach is concerned with the evaluation of
inequality, and in particular with the description of the space in which
equality should be assessed (the space of capabilities, or potential
functionings). I will argue that Sen's approach is a philosophical
exercise aimed at providing the ground for substantive theorising to
proceed, that it does not itself engage in substantive theorising, and
that it is mainly concerned with ontological description. Sen uses the
categories of capabilities and respectively functionings to describe
advantage and well-being. This ontological description can then be used
for ethical theorising. But, as will be argued, the main emphasis of Sen's
approach has been on the former, not on the latter. I will also argue that
ontological realism is essential to Sen's approach, and that much of the
persuasiveness of Sen's arguments spring from this (not explicitly
acknowledged) ontological dimension. Furthermore, I will argue that an
explicit recognition of this dimension is crucial for the development of
Sen's perspective.
Journal: Review of Political Economy
Pages: 37-53
Issue: 1
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250601080768
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250601080768
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:1:p:37-53
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Hayes
Author-X-Name-First: Mark
Author-X-Name-Last: Hayes
Title: The Point of Effective Demand
Abstract:
Keynes's principle of effective demand conceives competitive equilibrium
in terms of the choices of entrepreneurs, investors and consumers, rather
than of the optimal allocation of factors of production. In The General
Theory, effective demand is distinguished from aggregate demand and from
income, expected or realised, and there is no suggestion that equilibrium
means the convergence of expectations. Reconsideration of Keynes's use of
time and equilibrium periods leads to the conclusion that he treats
employment as in continuous equilibrium, at the point of effective demand,
determined by the state of expectation, the correctness of which is
strictly irrelevant. The nature of the equilibrium represented by the
point of effective demand is here described, not in terms of the
multiplier, but in terms of the continuous equilibrium of supply and
demand in short-term forward markets. This reading is faithful to Keynes's
conception of aggregate demand as dependent upon the expectations of
entrepreneurs, and it resolves the meaning of his 'long-period
employment.' Formal appendices identify the differences between Keynes and
Walras and the nature of the multiplier. The paper concludes that the
Keynesian cross and 'Swedish' analysis should be abandoned, and the
Walrasian conception recognised as only the limiting case of general
competitive equilibrium in a monetary economy.
Journal: Review of Political Economy
Pages: 55-80
Issue: 1
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250601080743
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250601080743
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:1:p:55-80
Template-Type: ReDIF-Article 1.0
Author-Name: James Yunker
Author-X-Name-First: James
Author-X-Name-Last: Yunker
Title: A Comprehensive Incentives Analysis of the Potential Performance of Market Socialism
Abstract:
This article evaluates the performance of contemporary capitalism
relative to that of a hypothetical alternative designated 'profit-oriented
market socialism.' In most respects, profit-oriented market socialism
would closely mimic contemporary market capitalism. The major difference
would be that most profits and interest generated by the operations of
publicly-owned business enterprises would be distributed to the general
public as a social dividend proportional to household wage and salary
income rather than in proportion to household financial assets. The basis
of the comparison is a small-scale but comprehensive computable general
equilibrium model, termed the 'els model' because it encompasses three
primary factors of production: capital management effort e, labor l and
saving s. Numerical solutions of the model suggest that the critical issue
is the numerical value of a parameter (ν) representing the output
elasticity of total capital management effort in the aggregate production
function. If this parameter value is relatively low, then profit-oriented
market socialism out-performs capitalism. If this parameter value is
relatively high, then capitalism out-performs profit-oriented market
socialism. The fundamental implication of the research is that the
relative performance of a profit-oriented market socialist economy is an
empirical question and not a theoretical question.
Journal: Review of Political Economy
Pages: 81-113
Issue: 1
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250601080669
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250601080669
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:1:p:81-113
Template-Type: ReDIF-Article 1.0
Author-Name: Louis Lefeber
Author-X-Name-First: Louis
Author-X-Name-Last: Lefeber
Author-Name: Thomas Vietorisz
Author-X-Name-First: Thomas
Author-X-Name-Last: Vietorisz
Title: The Meaning of Social Efficiency
Abstract:
Policy implementation calls for efficiency. But because policy concerns
range over broad social and political-economic areas, the efficient
pursuit of one particular goal may conflict with the realization of some
other, equally important social interest. Hence, efficiency for its own
sake cannot be a policy goal. Giving special attention to the development
process, the paper discusses the problems and contradictions that arise
when policymakers working in a framework of neoclassical economic theory
attempt to deal with issues of equity, stabilization, markets and trade.
Starting with the limitations of market efficiency when conventional
requirements of social welfare as well as social and environmental
sustainability are taken into account, it is argued that a more meaningful
concept of social efficiency can be obtained with the help of the human
development indicators elaborated by the United Nations Development
Program, augmented by the sustainability indicators developed by the
European Union and others during the last decade.
Journal: Review of Political Economy
Pages: 139-164
Issue: 2
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701256672
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701256672
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:2:p:139-164
Template-Type: ReDIF-Article 1.0
Author-Name: Bart Engelen
Author-X-Name-First: Bart
Author-X-Name-Last: Engelen
Title: Thinking Things Through: The Value and Limitations of James Buchanan's Public Choice Theory
Abstract:
James Buchanan, one of the founders of Public Choice theory, applies the
conceptual apparatus of economics to the public domain. This article
investigates which assumptions are crucial to Buchanan's project,
concentrating on methodological individualism and the Homo Economicus
model. It shows that Buchanan from time to time moves away from these
economic concepts, though only in minor ways. The article also focuses on
Buchanan's normative emphasis on the role of institutions in coordinating
self-interested individual actions in mutually beneficial ways.
Criticizing Buchanan's analysis, the article argues that a broader view of
the individual and of the role of institutions is necessary in a theory of
constitutional choice.
Journal: Review of Political Economy
Pages: 165-180
Issue: 2
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701256714
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701256714
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:2:p:165-180
Template-Type: ReDIF-Article 1.0
Author-Name: Hilary Putnam
Author-X-Name-First: Hilary
Author-X-Name-Last: Putnam
Author-Name: Vivian Walsh
Author-X-Name-First: Vivian
Author-X-Name-Last: Walsh
Title: Facts, Theories, Values and Destitution in the Works of Sir Partha Dasgupta
Abstract:
Partha Dasgupta (2005, p. 226) seriously misunderstands Hilary Putnam's
analysis of the entanglement of facts, theories and values, and claims
that Bergson-Samuelson provided economics with foundations amounting to 'a
broad, ethical structure.' Actually, Bergson-Samuelson were attempting to
provide economists with a way of avoiding ethical commitments altogether.
But it is not in Dasgupta's interest to make this attempt to avoid values,
and it clouds the understanding of his own major contributions to the
study of poverty, oppression, and destitution (Dasgupta, 1993, 2001),
which combine rigorous modeling with an up-to-date knowledge of moral
philosophy and with humane values. Of special interest to this Review, is
the fact that Dasgupta's major works give evidence of properties that have
been characteristic of the emerging second phase in the development of
present-day classical theory.
Journal: Review of Political Economy
Pages: 181-202
Issue: 2
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701256748
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701256748
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:2:p:181-202
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Title: Are Functional Relations Always the Alter Ego of Humean Laws?
Abstract:
It has recently been suggested in the pages of this journal that
'functional relations are the alter ego of Humean laws' (Fleetwood, 2001,
p. 205). Based on the identification of an open-systems, ceteris-paribus
(OSCP) approach to formal modelling, it is argued that this claim is true
only some of the time and problematic only some of the time that it is
true. The paper goes on to demonstrate that functional relations that are
consistent with the OSCP approach to formal modelling can provide useful
tools in various domains of the stratified ontology identified by critical
realists. The OSCP approach to formalism is contrasted with a second,
axiomatic approach to formalism that is identified as advising the
mainstream formal modelling project.
Journal: Review of Political Economy
Pages: 203-217
Issue: 2
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701256763
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701256763
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:2:p:203-217
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Sergio Levrero
Author-X-Name-First: Enrico Sergio
Author-X-Name-Last: Levrero
Title: Classical Theory and Policy Analysis: A Roundtable Discussion
Abstract:
Journal: Review of Political Economy
Pages: 219-220
Issue: 2
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701256797
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701256797
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:2:p:219-220
Template-Type: ReDIF-Article 1.0
Author-Name: Pierangelo Garegnani
Author-X-Name-First: Pierangelo
Author-X-Name-Last: Garegnani
Title: Professor Foley and Classical Policy Analysis
Abstract:
Journal: Review of Political Economy
Pages: 221-242
Issue: 2
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701256805
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701256805
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:2:p:221-242
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Pivetti
Author-X-Name-First: Massimo
Author-X-Name-Last: Pivetti
Title: Distribution, Inflation and Policy Analysis
Abstract:
Journal: Review of Political Economy
Pages: 243-247
Issue: 2
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701256813
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701256813
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:2:p:243-247
Template-Type: ReDIF-Article 1.0
Author-Name: Fernando Vianello
Author-X-Name-First: Fernando
Author-X-Name-Last: Vianello
Title: Reviewing a Review
Abstract:
Journal: Review of Political Economy
Pages: 249-261
Issue: 2
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701256821
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701256821
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:2:p:249-261
Template-Type: ReDIF-Article 1.0
Author-Name: Duncan K. Foley
Author-X-Name-First: Duncan K.
Author-X-Name-Last: Foley
Title: Response to Garegnani, Pivetti and Vianello
Abstract:
Journal: Review of Political Economy
Pages: 263-268
Issue: 2
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701256854
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701256854
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:2:p:263-268
Template-Type: ReDIF-Article 1.0
Author-Name: S. Abu Turab Rizvi
Author-X-Name-First: S. Abu Turab
Author-X-Name-Last: Rizvi
Title: Aumann's and Schelling's Game Theory: The Nobel Prize in Economic Science, 2005
Abstract:
Robert Aumann and Thomas Schelling won the Nobel Prize in Economic
Science in 2005. Their work in game theory shows two different approaches
to understanding strategic interaction. Schelling's work on the strategic
aspects of negotiations, focal points, and self-command is mathematically
informal and is based on experimental and inductive knowledge of players'
capabilities. Aumann's work on repeated games and common knowledge is
mathematically deductive, and assumes highly rational agents. An
exploration of their work allows for a comparison of these two approaches.
Journal: Review of Political Economy
Pages: 297-316
Issue: 3
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701452990
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701452990
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:3:p:297-316
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Felipe
Author-X-Name-First: Jesus
Author-X-Name-Last: Felipe
Author-Name: J. S. L. Mccombie
Author-X-Name-First: J. S. L.
Author-X-Name-Last: Mccombie
Title: On the Rental Price of Capital and the Profit Rate: The Perils and Pitfalls of Total Factor Productivity Growth
Abstract:
This paper considers the implications of the conceptual difference
between the rental price of capital, embedded in the neoclassical cost
identity (output equals the cost of labor plus the cost of capital), which
is used in growth accounting studies; and the accounting profit rate,
which can be derived from the National Income and Product Accounts (NIPA).
The neoclassical identity is a 'virtual' identity in that it depends on a
series of assumptions (constant returns to scale and perfectly competitive
factor markets). The income side of the NIPA also provides an accounting
identity for output as the sum of the wage bill plus the gross operating
surplus. This identity, however, is a 'real' one, in the sense that it
does not depend on any assumption and thus it always holds. It is shown
that because the neoclassical cost identity and the income accounting
identity according to the NIPA may be expressed as formally equivalent
expressions, estimations of aggregate production functions and growth
accounting studies are tautologies. Likewise, the test of the hypothesis
of competitive markets using Hall's (1988) framework gives rise to a null
hypothesis that cannot be rejected statistically. Finally, it is argued
that the NIPA identity does hold in constant prices, pace Denison (1972a,
1972b).
Journal: Review of Political Economy
Pages: 317-345
Issue: 3
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701453014
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701453014
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:3:p:317-345
Template-Type: ReDIF-Article 1.0
Author-Name: Rune Skarstein
Author-X-Name-First: Rune
Author-X-Name-Last: Skarstein
Title: Free Trade: A Dead End for Underdeveloped Economies
Abstract:
Critics of the free trade doctrine tend to argue that the theory of
comparative advantage is not wrong in itself, but that its assumptions are
not generally fulfilled in the real world, and hence that free trade is
desirable under 'ideal conditions.' By contrast, this paper argues that
the theory of comparative advantage does not hold even under 'ideal
conditions.' The theory, a variation on the story of static efficiency,
pays no attention to dynamic considerations, such as long-term technical
change and productivity growth, which are essential in economic
development. Starting from the 'growth laws' of Verdoorn and Kaldor, this
paper argues that dynamic efficiency is intimately related to industrial
growth. Moreover, because industrial goods have higher income elasticity
of demand than agricultural goods, there is a positive feedback mechanism
from international and domestic demand for industrial goods to the
Verdoorn-Kaldor 'laws' of productivity growth. The empirical evidence
indicates that poor countries do not have a comparative advantage in
agricultural goods, and that they have an absolute disadvantage in the
trade of agricultural as well as industrial goods. Further liberalisation
of trade in agricultural goods will therefore harm rather than help the
poorest countries. To achieve economic development, those countries need
the freedom to implement a strategy designed for that purpose, just as the
now-industrialised countries did.
Journal: Review of Political Economy
Pages: 347-367
Issue: 3
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701453022
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701453022
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:3:p:347-367
Template-Type: ReDIF-Article 1.0
Author-Name: Claude Gnos
Author-X-Name-First: Claude
Author-X-Name-Last: Gnos
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: The New Consensus and Post-Keynesian Interest Rate Policy
Abstract:
This paper outlines the fundamental arguments of the New Consensus,
critiques it from a Post-Keynesian perspective, and offers a
Post-Keynesian alternative to the Taylor Rule. While Post-Keynesian
economics provides a theory of endogenous money with exogenous interest
rates, it has no clear description of a central bank reaction function. We
attempt to remedy this oversight by identifying some of the difficulties
attached to developing a Post-Keynesian reaction function, and suggesting
an approach to the setting of interest rates that is more consistent than
the Taylor Rule with Keynes's General Theory.
Journal: Review of Political Economy
Pages: 369-386
Issue: 3
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701453071
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701453071
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:3:p:369-386
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Kriesler
Author-X-Name-First: Peter
Author-X-Name-Last: Kriesler
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Title: The New Consensus on Monetary Policy and its Post-Keynesian Critique
Abstract:
This paper seeks to look at the underlying framework of the New Consensus
models, providing a Post-Keynesian critique. In the light of this
critique, the model is reformulated, with its basic structure intact, but
with alternative post-Keynesian specifications of the Phillips curve being
considered. It is shown that such modifications, either allow a long run
trade-off between the rate of inflation and the level of output, the rate
of capacity utilization and, therefore, unemployment, or, in our preferred
specification, changes in output and capacity have no implications for
inflation over a large range of capacity utilization.
Journal: Review of Political Economy
Pages: 387-404
Issue: 3
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701453097
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701453097
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:3:p:387-404
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Title: Is There a Stabilizing Role for Fiscal Policy in the New Consensus?
Abstract:
This paper considers the possibility of using fiscal rather than monetary
policy as the instrument of stabilization policy in a new consensus
framework. Describing the conduct of fiscal policy in terms of a 'pseudo
Taylor rule', it is shown that fiscal policy is as, if not more, effective
than monetary policy as a tool for macroeconomic stabilization. The
conclusion reached is that the comparative neglect of fiscal policy as an
instrument of stabilization policy in new consensus macroeconomics is
unwarranted.
Journal: Review of Political Economy
Pages: 405-418
Issue: 3
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701453105
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701453105
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:3:p:405-418
Template-Type: ReDIF-Article 1.0
Author-Name: Dan Greenwood
Author-X-Name-First: Dan
Author-X-Name-Last: Greenwood
Title: Planning and Know-how: The Relationship between Knowledge and Calculation in Hayek's Case for Markets
Abstract:
Ludwig von Mises' calculation argument against socialism is of
fundamental importance to the modern-day case for the market. Yet it is to
Hayek that some Austrian-influenced theorists turn when responding to the
computational models for non-market price fixing proposed by some
socialists. Their reading of Hayek's epistemological argument for markets
as distinct from Mises' calculation argument needs to be questioned.
Hayek's emphasis upon the dispersal of knowledge across space and time is
consistent with Mises' position. In spite of his philosophical critique of
rationalist constructivism and his treatment of tacit knowledge, Hayek's
case for the market ultimately relies upon the Misean calculation
argument. Hayek's work is therefore best understood as a shift in emphasis
rather than as a philosophical departure from Mises' position.
Journal: Review of Political Economy
Pages: 419-434
Issue: 3
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701453113
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701453113
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:3:p:419-434
Template-Type: ReDIF-Article 1.0
Author-Name: Mathew Forstater
Author-X-Name-First: Mathew
Author-X-Name-Last: Forstater
Title: Technology as Transsubjective Structural Context: The Uncertainty of Investor Expectations
Abstract:
Journal: Review of Political Economy
Pages: 435-440
Issue: 3
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701453170
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701453170
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:3:p:435-440
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Cesaratto
Author-X-Name-First: Sergio
Author-X-Name-Last: Cesaratto
Title: Are PAYG and FF Pension Schemes Equivalent Systems? Macroeconomic Considerations in the Light of Alternative Economic Theories
Abstract:
Conventional wisdom holds that Fully Funded (FF) pension schemes would
better prepare the community for ongoing demographic change. Many critics
of FF schemes argue that these plans would encounter problems similar to
those that create financial difficulties to Pay-As-You-Go (PAYG) schemes.
More specifically, they maintain that, whereas in a PAYG scheme a decrease
in the working population with respect to an increasing elderly population
undermines the financial source of pension transfers, by the same token in
an FF scheme a diminished number of young savers would make the absorption
of the capital assets accumulated by the pension funds difficult. This
paper assesses the mainstream claim and its criticism in the light of the
neoclassical foundations of the dominant view. It will emerge that the
criticism is partially correct, but we arrive at this conclusion through
reasoning that does not bypass the theoretical foundations of the
mainstream claim. The capital theory critique is shown to be relevant in
this respect.
Journal: Review of Political Economy
Pages: 449-473
Issue: 4
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701622287
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701622287
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:4:p:449-473
Template-Type: ReDIF-Article 1.0
Author-Name: Paulette Olson
Author-X-Name-First: Paulette
Author-X-Name-Last: Olson
Title: On the Contributions of Barbara Bergmann to Economics
Abstract:
This paper examines the major economic contributions of Barbara R.
Bergmann. After presenting her personal background information, it gives
an overview of her theoretical framework. This is followed by her critique
of economic methodology and an examination of her major contributions in
micro-simulation, feminist analysis of labor markets and the family, and
policy-oriented work focused on improving the lives of women and children.
The essay concludes with a brief discussion of Bergmann's unique qualities
as an activist economist in the pursuit of social change.
Journal: Review of Political Economy
Pages: 475-496
Issue: 4
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701622303
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701622303
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:4:p:475-496
Template-Type: ReDIF-Article 1.0
Author-Name: Sharon Mastracci
Author-X-Name-First: Sharon
Author-X-Name-Last: Mastracci
Title: Redistributive Policy: Capacity and Outcomes over the Business Cycle
Abstract:
This paper tests predictions of redistributive policy theory. Lowi claims
that redistributive policy is not influenced by economic conditions.
Limited empirical evidence exists to confirm this prediction, and what
little evidence exists is indefinite. Policy theory also suggests that
such a policy need not produce actual outcomes, but rather, only possess
the capacity to produce outcomes. Do policy outcomes or the capacity to
redistribute vary over the business cycle? I posit that neither capacity
nor redistribution is affected by economic condition. This paper tests
this hypothesis using results from the General Social Survey and data from
the Current Population Survey. Revisiting one redistributive program
during a period of economic downturn—a US Department of Labor
initiative that was found to have produced measurable redistribution
during the economic growth of the 1990s—this study examines both
capacity and reallocation, and partially confirms that redistributive
policies are impervious to recession.
Journal: Review of Political Economy
Pages: 497-512
Issue: 4
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701622337
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701622337
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:4:p:497-512
Template-Type: ReDIF-Article 1.0
Author-Name: Alfredo Saad-Filho
Author-X-Name-First: Alfredo
Author-X-Name-Last: Saad-Filho
Title: Life beyond the Washington Consensus: An Introduction to Pro-poor Macroeconomic Policies
Abstract:
This article reviews the 'pro-poor' macroeconomic policy alternative to
the Washington consensus. The pro-poor approach draws heavily on heterodox
economic theory, and offers a compelling view of an alternative economic
strategy oriented primarily to the satisfaction of the basic needs of the
majority of the population, the equitable distribution of income, wealth
and power, and the preservation of macroeconomic stability. These aims
point to a specific set of fiscal, monetary, trade and exchange rate
policies. The paper argues that such policies should be supported by
social programmes designed to achieve the desired pro-poor outcomes as
rapidly as possible.
Journal: Review of Political Economy
Pages: 513-537
Issue: 4
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701622352
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701622352
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:4:p:513-537
Template-Type: ReDIF-Article 1.0
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Author-Name: Sergio Rossi
Author-X-Name-First: Sergio
Author-X-Name-Last: Rossi
Title: Central Banking and Post-Keynesian Economics
Abstract:
The Post-Keynesian theory of endogenous money has given much attention to
the role of the central bank in the money creation process. Circuit theory
has neglected this role, in so far as it has focused on the relationship
between banks and firms within a monetary production economy. The aim of
this paper is therefore twofold. First, it intends to fill this gap in
circuit theory, by providing a role for the central bank in settlement of
interbank debts. Secondly, it aims at reinforcing the Post-Keynesian
analysis of central bank money by considering both the money-purveying and
the credit-purveying roles of the settlement institution in the interbank
market. The result of this analysis is a more comprehensive theory of
endogenous money, where the lender-of-last-resort facilities of a central
bank are viewed as an endogenous phenomenon involving both a money
creation and a credit operation between the central bank and the domestic
banking system. In such a framework, monetary policy consists of setting
the base rate of interest at a level that enables banks to limit their
bilateral debt position in the interbank market, so as not to disrupt the
workings of the payment system by either an illiquidity or an insolvency
crisis.
Journal: Review of Political Economy
Pages: 539-554
Issue: 4
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701622402
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701622402
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:4:p:539-554
Template-Type: ReDIF-Article 1.0
Author-Name: Marcella Corsi
Author-X-Name-First: Marcella
Author-X-Name-Last: Corsi
Title: Thinking of Sylos Labini (or Sylos Labini's Thinking)
Abstract:
This note reflects upon the methodological principles that Paolo Sylos
Labini (1920-2005) brought to his work as a political economist. Sylos
Labini drew upon history, political science, sociology and philosophy in
order to explain economic processes, and he insisted that an
interdisciplinary approach was essential to formulating effective policy
responses to modern social problems.
Journal: Review of Political Economy
Pages: 555-562
Issue: 4
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701622451
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701622451
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:4:p:555-562
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Toporowski
Author-X-Name-First: Jan
Author-X-Name-Last: Toporowski
Title: Asset-based Reserve Requirements: Some Reservations
Abstract:
Thomas Palley's (2004) paper 'Asset-based reserve requirements:
reasserting domestic monetary control in an era of financial innovation
and instability' has radical implications for monetary policy and the
operations of central banks in the money markets. This comment argues that
Palley's proposal may be impractical today because it overlooks banks'
holding of excessive reserves (or claims on such reserves), and because
reserves allocated for particular kinds of business cannot be isolated in
bank balance sheets or markets. In particular, once differential reserves
are imposed on particular kinds of business, banks may respond to changes
in reserve requirements by varying their assets in less predictable ways
than the scheme suggests. A central bank's willingness to use differential
reserve requirements will be inhibited by the current policy doctrine that
emphasises control of a stable money market rate of interest. In any case,
it is doubtful if interest rates or reserve requirements could have the
specific targeted effects that Palley's model suggests.
Journal: Review of Political Economy
Pages: 563-573
Issue: 4
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701622501
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701622501
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:4:p:563-573
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Palley
Author-X-Name-First: Thomas
Author-X-Name-Last: Palley
Title: Asset-based Reserve Requirements: A Response
Abstract:
Journal: Review of Political Economy
Pages: 575-578
Issue: 4
Volume: 19
Year: 2007
X-DOI: 10.1080/09538250701622568
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701622568
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Handle: RePEc:taf:revpoe:v:19:y:2007:i:4:p:575-578
Template-Type: ReDIF-Article 1.0
Author-Name: Heather Boushey
Author-X-Name-First: Heather
Author-X-Name-Last: Boushey
Author-Name: Christian Weller
Author-X-Name-First: Christian
Author-X-Name-Last: Weller
Title: Has Growing Inequality Contributed to Rising Household Economic Distress?
Abstract:
The personal bankruptcy rate increased more than fourfold in the last
quarter century. Other measures of economic distress, particularly
foreclosure and credit default rates, also increased sharply. A possible
explanation for this is greater household indebtedness. Household debt
relative to income, however, did not even double over the same period,
suggesting that the aggregate increase in household economic distress was
disproportionate to the rise in household debt. We consider if the
simultaneous increase in income inequality has contributed to the rise in
household economic distress, Specifically, we hypothesize that greater
inequality led to a larger expansion of credit, especially in the form of
credit card debt, among low and moderate income households than among
higher income ones. This expansion of disproportionately more expensive
credit may have contributed to the growth in household economic distress.
Based on data from 1980 to 2004, we find robust evidence for a link
between inequality and credit card debt and between credit card debt and
economic distress.
Journal: Review of Political Economy
Pages: 1-22
Issue: 1
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701661764
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701661764
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:1:p:1-22
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Dimand
Author-X-Name-First: Robert
Author-X-Name-Last: Dimand
Title: Edmund Phelps and Modern Macroeconomics
Abstract:
Edmund Phelps, winner of the 2006 Nobel Prize in Economics, has been a
central figure in the development of macroeconomics since his 1961 article
'The Golden Rule of Accumulation' on optimal economic growth. His 1967-68
critique of the stability of the Phillips curve trade-off, together with
Friedman (1968), led to the expectations-augmented Phillips curve and the
natural rate hypothesis. His work on the choice-theoretic microeconomic
foundations of wage, price, and employment dynamics under imperfect
information, changed how economists do macroeconomics. Phelps subsequently
developed natural rate models in a non-monetary, structuralist direction
distinct from Friedman's monetarism and from New Classical economics,
analyzing the natural rate of unemployment as a function of the real
structure of the economy: real sectoral demands, factor supplies,
technology, taxes, subsidies, tariffs, and real interest and exchange
rates.
Journal: Review of Political Economy
Pages: 23-39
Issue: 1
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701661798
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701661798
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Template-Type: ReDIF-Article 1.0
Author-Name: Emily Chamlee-Wright
Author-X-Name-First: Emily
Author-X-Name-Last: Chamlee-Wright
Title: The Structure of Social Capital: An Austrian Perspective on its Nature and Development
Abstract:
As the literature on social capital has emerged over the past two
decades, both advocates and critics of the concept have grappled with the
question 'what is the nature of “social capital?”'. By
viewing this question through the lens of Austrian capital theory
(particularly under Lachmann's influence) we can understand social capital
as being structural in nature, made up of heterogeneous and often
complementary elements. This way of thinking about social capital opens
the door for understanding the role of the 'social entrepreneur' as
discovering new combinations within the social capital structure. By
carving out a role for the change agent, we see social capital development
as a process of social learning that extends the cognitive reach of
individuals beyond what they can know directly. An Austrian approach to
social capital advances the theoretical debate by linking the literature
on network analysis (in which the focus is on individualistic accumulation
of social capital) and broader questions of social capital embedded within
community-wide norms. Further, an Austrian understanding of social capital
informs policy debates, such as the question of whether social capital
development can be, or needs to be, part of a deliberate development
strategy.
Journal: Review of Political Economy
Pages: 41-58
Issue: 1
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701661806
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Template-Type: ReDIF-Article 1.0
Author-Name: Pier Francesco Asso
Author-X-Name-First: Pier Francesco
Author-X-Name-Last: Asso
Author-Name: Luca Fiorito
Author-X-Name-First: Luca
Author-X-Name-Last: Fiorito
Title: Was Frank Knight an Institutionalist?
Abstract:
This paper critically examines Geoffrey Hodgson's provocative claim that
Frank Knight was a member of the American institutionalist school in the
interwar years. In the first section of the paper we provide a definition
of institutionalism and emphasize its meaning from a historiographic point
of view. The second and third sections analyse the two main methodological
struggles between Knight and the institutionalists, namely, the debate
during the early 1920s over the use of instinct theory as an explanation
of economic behaviour, and the subsequent campaign led by Knight in the
late 1920s and early 1930s against the behaviourist wing of American
institutionalism a la Copeland and Ayres. The fourth section deals with
Knight's own brand of institutionalism. Our main conclusions are that,
even if Knight's approach to the study of economic behaviour shows
significant affinities with American institutionalism, he was
not—both sociologically and in terms of his philosophical
premises—an institutionalist.
Journal: Review of Political Economy
Pages: 59-77
Issue: 1
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701661822
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:1:p:59-77
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Ravagnani
Author-X-Name-First: Fabio
Author-X-Name-Last: Ravagnani
Title: Classical Theory and Exhaustible Natural Resources: Notes on the Current Debate
Abstract:
The treatment of exhaustible resources in the context of classical theory
is currently the object of intense debate. In particular, different views
are held as to whether the classical 'normal positions' can adequately
deal with the prices for the use of exhaustible resources (royalties), and
different procedures have been suggested for determining these
distributive variables. This paper undertakes a critical appraisal of the
relevant literature and suggests an alternative way of studying royalties
within the surplus approach. The first part focuses on the recent models
aimed at determining royalties in a classical framework and argues that
these formal contributions rely on unwarranted assumptions that
considerably reduce the scope of the analysis. The second examines the
interplay between resource owners and extraction companies in real-world
mineral industries. The historical record indicates that negotiations over
royalties have traditionally been regulated by stable conventional
arrangements and that the levels of royalty rates have been strongly
influenced by a variety of historically determined institutional factors.
In view of this evidence, it is finally suggested that royalties might be
appropriately determined within classical theory by means of a method
analogous to the one adopted for the 'natural' wage rate.
Journal: Review of Political Economy
Pages: 79-93
Issue: 1
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701661848
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701661848
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:1:p:79-93
Template-Type: ReDIF-Article 1.0
Author-Name: Matias Vernengo
Author-X-Name-First: Matias
Author-X-Name-Last: Vernengo
Title: The Political Economy of Monetary Institutions in Brazil: The Limits of the Inflation-targeting Strategy, 1999-2005
Abstract:
This paper suggests that the time-inconsistency approach is inadequate to
analyze the political economy of monetary policy in Brazil. The paper
develops an alternative theory that emphasizes distributive conflict, and
argues that building credibility with a fixed exchange rate and through
inflation-targeting was not central for stabilization. A contested-terrain
analysis of the Brazilian case suggests that the current monetary regime
benefits financial or rentier interests while the manufacturing sector and
workers bear the costs of this policy.
Journal: Review of Political Economy
Pages: 95-110
Issue: 1
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701661863
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701661863
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:1:p:95-110
Template-Type: ReDIF-Article 1.0
Author-Name: Eladio Febrero
Author-X-Name-First: Eladio
Author-X-Name-Last: Febrero
Title: The Monetization of Profits in a Monetary Circuit Framework
Abstract:
This paper offers an explanation of the realization of profits in money.
Following Edward Nell's lead, we place Marx's spheres of production and
circulation at the centre of the analysis. Production is represented a la
Sraffa-von Neumann while circulation is analysed following the basic
insights of the Franco-Italian theory of the monetary circuit. Once
production has taken place, money is created by banks ex nihilo and then
circulates through certain channels allowing the reproduction of the
system and monetizing profits plus the payment of interest on long-term
debts within one single circuit. The novelty of our approach lies in the
treatment of the financing of investment in fixed capacity.
Journal: Review of Political Economy
Pages: 111-125
Issue: 1
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701662002
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701662002
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:1:p:111-125
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Vitaletti
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Vitaletti
Title: The Optimal Lifetime of Capital Goods: a Restatement of Sraffa's Analysis of Fixed Capital
Abstract:
Determining the optimal life of capital constitutes an important problem
in economic analysis, one that has been extensively addressed in the
Sraffian literature. In Sraffa's system the lifetime of fixed capital is
posited as a given parameter. In the most recent literature on the topic,
the lifetime of capital goods becomes endogenous, the outcome of
entrepreneurial decisions concerning alternative techniques. This paper
concentrates on the problem as an issue separate from, but not
antithetical to, the choice of techniques. By changing some fundamental
aspects of Sraffa's framework, which is adopted as a point of departure, a
solution displaying interesting properties is worked out. In particular,
for the determination of commodity prices, the importance of an equation
emerges, in which only intermediate input and labour costs appear.
Journal: Review of Political Economy
Pages: 127-145
Issue: 1
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701622436
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701622436
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:1:p:127-145
Template-Type: ReDIF-Article 1.0
Author-Name: Irene Van Staveren
Author-X-Name-First: Irene
Author-X-Name-Last: Van Staveren
Title: Introduction to the Special Issue on Ethics and Economics
Abstract:
Journal: Review of Political Economy
Pages: 159-161
Issue: 2
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701819552
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701819552
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:2:p:159-161
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Lutz
Author-X-Name-First: Mark
Author-X-Name-Last: Lutz
Title: The 'Dismal Science' - Still? Economics and Human Flourishing
Abstract:
This paper is an attempt to evaluate critically standard economic theory
from the point of view of self-realization ethics and psychology. In doing
so, there is considerable reliance on Abraham Maslow's well-known theory
of personality development. According to his penetrating insight, it is
insecurity that keeps a person trapped in a world of materialism - be it a
desperate survival mentality, a preoccupation with excessive sexuality, or
an unabashed and omnipresent consumerism. Feeling secure, on the other
hand, opens the gates to psychological health and real personal autonomy.
Over time there has accumulated a considerable amount of empirical
evidence supporting such a Maslowian insecurity-materialism link. The
present paper surveys the problem of economic insecurity, especially the
anxiety of job loss. Since there is ample evidence that, in today's
globalized world, this problem is quite serious and increasingly
widespread, it would follow that Maslowian personality theory predicts a
large part of the population finding it increasingly hard to embark on a
life of personal flourishing. Economic theory, with its traditional
emphasis on competitive markets for both output and input, its unflagging
support of unregulated international trade and outsourcing, its tacit
consent for the new lean, mean, and flexible corporation, and its purely
instrumental treatment of work and workers, for all these reasons, must
share much of the blame for what appears to be a massive stunting of
personality development. In this regard, the dismal science of the
nineteenth century may still warrant the same designation today.
Journal: Review of Political Economy
Pages: 163-180
Issue: 2
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701819594
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701819594
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:2:p:163-180
Template-Type: ReDIF-Article 1.0
Author-Name: Deirdre Mccloskey
Author-X-Name-First: Deirdre
Author-X-Name-Last: Mccloskey
Title: Not by P Alone: A Virtuous Economy
Abstract:
Samuelsonian (mainstream) economics cannot even think of stepping beyond
its Max U, prudence-only model. But if we are going to have an economics
that works and that matters, as economists like Sen and Akerlof and
Hirschman have been saying, we need to admit that people do not live by
prudence alone. They love and hope, they are just or unjust, they are
temperate and courageous, faithless or faithful. Recognizing such virtues
and vices is not a betrayal of economics. It is a fulfillment of the
political economy of Adam Smith.
Journal: Review of Political Economy
Pages: 181-197
Issue: 2
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701819636
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701819636
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:2:p:181-197
Template-Type: ReDIF-Article 1.0
Author-Name: Vivian Walsh
Author-X-Name-First: Vivian
Author-X-Name-Last: Walsh
Title: Freedom, Values and Sen: Towards a Morally Enriched Classical Economic Theory
Abstract:
Journal: Review of Political Economy
Pages: 199-232
Issue: 2
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701819677
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701819677
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:2:p:199-232
Template-Type: ReDIF-Article 1.0
Author-Name: Des Gasper
Author-X-Name-First: Des
Author-X-Name-Last: Gasper
Title: From 'Hume's Law' to Problem- and Policy-Analysis for Human Development. Sen after Dewey, Myrdal, Streeten, Stretton and Haq
Abstract:
Much of Amartya Sen's work has been policy-related, but his methodology
of policy analysis has not been explained in detail. Action-related social
science involves value-imbued procedures that guide choices. This theme
was explored by Streeten and Stretton, and earlier by Dewey and Myrdal.
Assisted by Jean Dreze, Sen has evolved a form of policy analysis guided
by humanist values rather than those of mainstream economics. Features of
this methodology include the following: (1) a wider range of values
employed in valuation, with central attention on: how do and can people
live?; (2) conceptual investigation of the wider range of values; (3) use
of the wider range of values to guide choice of topics and boundaries of
analysis; (4) a focus on human realities, not an arbitrary slice of
reality selected according to commercial significance and convenience for
measurement; (5) using a wider range of values to guide other decisions in
analysis; thus, there is a focus on the socio-economic significance of the
result; and (6) a matching focus on a wide range of potential policy
means. This paper characterizes Sen's policy analysis methodology, its
roots in earlier work, and its relations to the UNDP Human Development
approach and kindred approaches.
Journal: Review of Political Economy
Pages: 233-256
Issue: 2
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701819701
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701819701
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:2:p:233-256
Template-Type: ReDIF-Article 1.0
Author-Name: Stephan Klasen
Author-X-Name-First: Stephan
Author-X-Name-Last: Klasen
Title: The Efficiency of Equity
Abstract:
In standard neoclassical economics, efficiency and equity issues are
largely treated as separate and separable issues. While this has been
challenged within and outside the neoclassical tradition for some time,
this paper argues that four recent strands of literature largely within
the neoclassical tradition provide a solid empirical foundation for this
challenge. These four strands refer to: (1) findings from the experimental
literature on the importance of equity or fairness; (2) the subjective
well-being literature on the importance of relative incomes and inequality
on subjective well-being; (3) the distribution-adjusted well-being
literature that combines measures of mean incomes with measures of income
inequality to derive welfare judgments across space and time; and (4) the
literature on the relationship between income and gender inequality and
economic growth. All of these literatures provide a sound empirical basis
for arguing that greater equity is critical for greater efficiency.
Journal: Review of Political Economy
Pages: 257-274
Issue: 2
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701819719
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701819719
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:2:p:257-274
Template-Type: ReDIF-Article 1.0
Author-Name: Mozaffar Qizilbash
Author-X-Name-First: Mozaffar
Author-X-Name-Last: Qizilbash
Title: Two Views of Corruption and Democracy
Abstract:
The pessimistic view of corruption and democracy sees democracy as either
corrupt or unlikely to deter corruption. This view can be traced to the
writings of Plato and Aristotle. The modern neoclassical and public choice
literatures advance a modern version of the pessimistic view. They suggest
that democracy is not likely, in itself, to deter corruption. Shleifer and
Vishny go further and suggest that the egalitarian tendencies in
democracies produce conditions conducive to corruption. Sen's work, in
contrast, supports the optimistic view that democracy can act as a
powerful corruption deterrent. Sen takes a broader view of democracy,
relaxes the self-interest assumption, allows for the influence of
democracy on value formation and stresses the importance of democratic
practice. However, a constitutive relationship also holds between
corruption and democracy because certain forms of corruption are
undemocratic in their very nature. This also involves an optimistic view
since, on this view, democratization and corruption-deterrence go hand in
hand.
Journal: Review of Political Economy
Pages: 275-291
Issue: 2
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701819727
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701819727
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:2:p:275-291
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Jerome
Author-X-Name-First: Robert
Author-X-Name-Last: Jerome
Author-Name: Kristina Terkun
Author-X-Name-First: Kristina
Author-X-Name-Last: Terkun
Author-Name: Robert Horn
Author-X-Name-First: Robert
Author-X-Name-Last: Horn
Author-Name: Bridget Butkevich
Author-X-Name-First: Bridget
Author-X-Name-Last: Butkevich
Title: Self-Flagellation and Utility Maximization
Abstract:
Economic models explain human behavior only to the degree that the
underlying assumptions of the model are fulfilled. Consumer theory of
rational choice has been applied to a wide array of situations. This paper
examines the results of the model when a consumer considers bundles of
goods, some of which may affect her self image. Under these conditions,
wrong decisions are not easily corrected, but can more easily be reversed
if the individual is able to forgive herself for having made the wrong
decision.
Journal: Review of Political Economy
Pages: 307-318
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170228
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802170228
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:307-318
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastien Charles
Author-X-Name-First: Sebastien
Author-X-Name-Last: Charles
Title: A Post-Keynesian Model of Accumulation with a Minskyan Financial Structure
Abstract:
Minsky's theory of financial instability is a strong alternative to
neoclassical theory. Many Post-Keynesian authors use this analysis in
order to elaborate models that give rise to crises or business cycles.
Nevertheless, none of them has directly linked growth and financial
structure. This article proposes a simple macroeconomic model linking the
accumulation of capital and the state of the financial structure as
defined by Minsky. The analysis shows how a capitalist economy may become
financially fragile, and it suggests that instability is apt to be the
rule.
Journal: Review of Political Economy
Pages: 319-331
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170236
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802170236
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:319-331
Template-Type: ReDIF-Article 1.0
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: Josef Steindl and the Instability of Capitalism
Abstract:
Josef Steindl's first substantive publication was a nine-page review of
Roy Harrod's book The Trade Cycle (1936), which appeared in the June 1937
issue of the Austrian journal, Zeitschrift fur Nationalokonomie. The
review reveals the Austrian - or, as he put it, the neo-Wicksellian -
roots of Steindl's early macroeconomic thinking. It also contains the
first mathematical formulation of what would later be known as the (Hicks)
super-multiplier. In this paper I summarise Steindl's critique of Harrod,
comparing his analysis of the multiplier-interaction with that of several
contemporaries. A translation of his review is given in the paper that
follows.
Journal: Review of Political Economy
Pages: 333-340
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170251
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802170251
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:333-340
Template-Type: ReDIF-Article 1.0
Author-Name: Josef Steindl
Author-X-Name-First: Josef
Author-X-Name-Last: Steindl
Title: The Trade Cycle
Abstract:
Journal: Review of Political Economy
Pages: 341-348
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170269
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802170269
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:341-348
Template-Type: ReDIF-Article 1.0
Author-Name: Wesley Marshall
Author-X-Name-First: Wesley
Author-X-Name-Last: Marshall
Title: Foreign Banks and Political Sovereignty: The Case of Argentina
Abstract:
This paper analyzes a seldom discussed aspect of Argentina's banking
crisis of 2001-2002: the conflict that arose between foreign banks and the
national government over the economic policies applied in response to the
banking crisis. In particular, the paper will examine the foreign banks'
strategy to dollarize the economy and to impede the national government's
strategy of pesofication.
Journal: Review of Political Economy
Pages: 349-366
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170392
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802170392
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:349-366
Template-Type: ReDIF-Article 1.0
Author-Name: Ian Wright
Author-X-Name-First: Ian
Author-X-Name-Last: Wright
Title: The Emergence of the Law of Value in a Dynamic Simple Commodity Economy
Abstract:
A dynamic computational model of a simple commodity economy is examined
and a theory of the relationship between commodity values, market prices
and the efficient division of social labour is developed. The main
conclusions are: (i) the labour value of a commodity is an attractor for
its market price; (ii) market prices are error signals that function to
allocate the available social labour between sectors of production; and
(iii) the tendency of prices to approach labour values is the monetary
expression of the tendency of a simple commodity economy to allocate
social labour efficiently. The model demonstrates that, in the special
case of simple commodity production, Marx's law of value can naturally
emerge from multiple local exchanges and operate 'behind the backs' of
actors solely via money flows that place budget constraints on their local
evaluations of commodity prices, which are otherwise subjective and
unconstrained.
Journal: Review of Political Economy
Pages: 367-391
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250701661889
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250701661889
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:367-391
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Cockshott
Author-X-Name-First: Paul
Author-X-Name-Last: Cockshott
Author-Name: Ajit Sinha
Author-X-Name-First: Ajit
Author-X-Name-Last: Sinha
Title: Can We Meaningfully Speak of Changes in Price under the Regime of Changes in Techniques?
Abstract:
This paper presents a simulation exercise on Sraffa's system under
various types of technical changes to show that the direction of changes
in prices of commodities is contingent on the choice of the numeraire.
Thus, such a comparison of prices in two systems turns out to be
meaningless. This result points to the arbitrary nature of the
neoclassical supply functions, as they inevitably compare prices across
several Sraffa systems on the basis of an arbitrarily chosen numeraire. We
anticipated such a result from our reading of Sraffa as part of his
'prelude to a critique of economic theory'.
Journal: Review of Political Economy
Pages: 393-403
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170418
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802170418
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:393-403
Template-Type: ReDIF-Article 1.0
Author-Name: Dany Lang
Author-X-Name-First: Dany
Author-X-Name-Last: Lang
Title: Why Economists should Choose their Inheritance: Physics and Path-independence in Economic Systems
Abstract:
This paper argues that economists would be well advised to do the work
that Jacques Derrida calls 'choosing one's inheritance'. This fundamental
task, which every heir must undertake, consists essentially of responding
to a twofold and contradictory injunction: reasserting a past that the
heir did not choose; and reinterpreting and transforming this past through
a process of critical rewriting. We argue that this task, particularly the
work of critical selection and rewriting, is too often neglected in
economics. The fact that the property of path-independence is embedded in
the great majority of economic models serves as an illustration of this
negligence. Because of their desire to emulate the natural sciences, the
neoclassical 'founding fathers' of modern economics bequeathed to their
successors this essential property of the physics of their time. A
consequence of this inheritance, coupled with the neglect of critical
selection and rewriting by economists, is that the properties of
path-independent systems - homeostasis and time-reversibility - continue
to thrive in the great majority of economic models.
Journal: Review of Political Economy
Pages: 405-420
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170426
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802170426
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Template-Type: ReDIF-Article 1.0
Author-Name: Man-Seop Park
Author-X-Name-First: Man-Seop
Author-X-Name-Last: Park
Title: Finance and the Cambridge Equation: A Comment
Abstract:
In a paper published in this journal, Giuseppe Ciccarone (2004) attempts
to show that the Pasinetti theorem allows for the profit-making financial
sector. In this effort, however, he ends up unwittingly associating the
theorem with the Wicksellian monetary theory. The present note traces the
origin of this uncomfortable association to his incomplete understanding
of the income of financial capitalists, and demonstrates that the
Pasinetti theorem is in the Post-Keynesian tradition of 'monetary
analysis', in contrast to the 'real analysis' of the Wicksellian theory.
Journal: Review of Political Economy
Pages: 421-432
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170442
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:421-432
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Ciccarone
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Ciccarone
Title: Finance and the Cambridge Equation: Again on the Rate of Profits of Financial Intermediaries
Abstract:
Journal: Review of Political Economy
Pages: 433-441
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170467
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802170467
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:433-441
Template-Type: ReDIF-Article 1.0
Author-Name: Giampaolo Garzarelli
Author-X-Name-First: Giampaolo
Author-X-Name-Last: Garzarelli
Title: The Organizational Approach of Capability Theory
Abstract:
Richard Langlois, Tony Yu & Paul Robertson (LYR) (2003) have assembled a
collection of previously published papers that move beyond textbook
production theory. This essay discusses work by Frank Knight and Hendrik
Houthakker not reproduced in LYR in relation to the capability theory of
economic organization. Knight identified the problem of organization as
the search for and the coordination of different dispersed capabilities.
Houthakker helps us to see more clearly that the benefits of
specialization are not brought at zero cost; whatever is the governance
structure employed, there will inevitably be coordination costs due to
differences in capabilities.
Journal: Review of Political Economy
Pages: 443-453
Issue: 3
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802170475
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802170475
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:3:p:443-453
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Title: John Kenneth Galbraith and the Post Keynesian Tradition in Economics
Abstract:
This paper discusses some of the key contributions of John Kenneth
Galbraith to economics and puts them into an historical context. It argues
that the work of Galbraith should be recognized as making major
contributions to the Post Keynesian paradigm. His work expands on the
contributions made by John Maynard Keynes and is consistent with the main
ideas of Post Keynesian thought. Much of his work can be thought of as a
Post Keynesian microeconomics that needs to be added on to the Post
Keynesian macroeconomics begun by Keynes. This work encompasses an
understanding of how people behave and how firms behave, a recognition of
the importance of uncertainty in the real world, and an emphasis on income
effects being more important than substitution effects. The paper then
points out how Galbraith has provided a Post Keynesian approach to key
macroeconomic issues. The paper concludes with a brief summary of the
other articles that make up this special issue to honor John Kenneth
Galbraith on the hundredth anniversary of his birth.
Journal: Review of Political Economy
Pages: 475-489
Issue: 4
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802354616
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802354616
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:4:p:475-489
Template-Type: ReDIF-Article 1.0
Author-Name: James Galbraith
Author-X-Name-First: James
Author-X-Name-Last: Galbraith
Title: The Abiding Economics of John Kenneth Galbraith
Abstract:
The work of John Kenneth Galbraith provides enduring markers for the
economics that still remains to be built. Herewith are brief reflections
on the guideposts and the task ahead.
Journal: Review of Political Economy
Pages: 491-499
Issue: 4
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802308877
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802308877
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:4:p:491-499
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Davidson
Author-X-Name-First: Paul
Author-X-Name-Last: Davidson
Author-Name: Stephen Dunn
Author-X-Name-First: Stephen
Author-X-Name-Last: Dunn
Title: J.K. Galbraith and the Nature of Modern Money
Abstract:
This paper considers John Kenneth Galbraith's views on the nature of
money and a monetary economy. Although recognised as a lifelong and
prominent Keynesian, to many, Galbraith's principal theoretical
contributions appear less concerned with the detail of financial sectors
or the nature of money per se than other leading Post Keynesians. However,
careful study suggests that Galbraith, like many Post Keynesians,
recognised the salience of the financial sector and the distinctive nature
of money. Galbraith presented an analysis of money and monetary
accumulation that recognised the importance of history, uncertainty,
distributional issues and the relevance of political and economic
institutions in determining the level of activity in an economy. His
contributions warrant further study and reflection.
Journal: Review of Political Economy
Pages: 501-526
Issue: 4
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802308885
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802308885
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:4:p:501-526
Template-Type: ReDIF-Article 1.0
Author-Name: Amitava Krishna Dutt
Author-X-Name-First: Amitava Krishna
Author-X-Name-Last: Dutt
Title: The Dependence Effect, Consumption and Happiness: Galbraith Revisited
Abstract:
In his analysis of the affluent society, Galbraith argued that
advertising and the sales promotion activities of firms create wants for
people, which makes them consume more without making them better off,
because their wants were artificially created. Thus, in the affluent
society, ever-increasing levels of production (and consumption) do not
increase welfare. This paper considers three criticisms of Galbraith's
analysis: first, firms cannot 'create' wants for consumers without their
consent, because consumers are not mere pawns in their hands; second, even
if people's wants are created, they may be better off by consuming more;
and third, that expansion of consumption can make people better off by
expanding aggregate demand. It draws on the recent literature on
consumption, income and happiness, and develops a simple model of growth
and distribution, to argue that Galbraith's analysis holds up against
these criticisms.
Journal: Review of Political Economy
Pages: 527-550
Issue: 4
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802308919
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802308919
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:4:p:527-550
Template-Type: ReDIF-Article 1.0
Author-Name: Charles Leathers
Author-X-Name-First: Charles
Author-X-Name-Last: Leathers
Author-Name: J. Patrick Raines
Author-X-Name-First: J. Patrick
Author-X-Name-Last: Raines
Title: John Kenneth Galbraith's Contributions to the Theory and Analysis of Speculative Financial Markets
Abstract:
Although separated from his systematic analyses of modern corporate
capitalism and its institutional culture, John Kenneth Galbraith's theory
of speculative manias that informed his analyses of the great bubbles of
1929 and 1987 stand as a vital part of his legacy to modern economics. In
this paper, we put his contributions to our understanding of speculative
financial markets into historical perspective, and explain how the current
relevance of the insights that he provided has been enhanced by the
combination of the growing dependency of the retirement plans of Americans
on fluctuating stock prices, institutional developments in the financial
sector, and government policies of financial deregulation and bailouts of
failing financial institutions and funds.
Journal: Review of Political Economy
Pages: 551-568
Issue: 4
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802308935
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:4:p:551-568
Template-Type: ReDIF-Article 1.0
Author-Name: Stephanie Laguerodie
Author-X-Name-First: Stephanie
Author-X-Name-Last: Laguerodie
Author-Name: Francisco Vergara
Author-X-Name-First: Francisco
Author-X-Name-Last: Vergara
Title: The Theory of Price Controls: John Kenneth Galbraith's Contribution
Abstract:
Price controls have always aroused controversy. Before the Second World
War, most economists saw them as either impossible to implement or unwise.
Even during wartime it was widely believed that prices should remain as
free as possible. Many economists saw benefits to price controls during
the war, but also identified numerous costs to these controls. They also
tended to favor limited price controls, applying to only those goods
needed to fight the war. John Kenneth Galbraith was generally sympathetic
to price controls during the war. He too supported limited controls, but
then changed his mind and supported more extensive price controls during
the Second World War. After the war, inflation tended to reappear long
before full-employment was reached, even when production and employment
were falling. From his wartime experiences, Galbraith tried to draw
lessons for peacetime inflation. He proposed price and wage monitoring for
a few hundred big companies and the unions with whom they negotiate.
Journal: Review of Political Economy
Pages: 569-593
Issue: 4
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802308950
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802308950
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:4:p:569-593
Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Lamdin
Author-X-Name-First: Douglas
Author-X-Name-Last: Lamdin
Title: Galbraith on Advertising, Credit, and Consumption: A Retrospective and Empirical Investigation with Policy Implications
Abstract:
Throughout his life, John Kenneth Galbraith wrote on a large range of
topics. One of the most important issues that he addressed was the role of
advertising and credit in stimulating consumer expenditure. This paper
examines Galbraith's view of how advertising and consumer credit help
drive consumption, and then examines subsequent empirical research on this
topic. This review reveals a limited recognition by researchers of
Galbraith's important contributions. Then, an empirical examination of US
aggregate time series shows that advertising and credit both have
economically and statistically significant positive influences on
consumption, consistent with Galbraith's hypothesis. The paper concludes
with some insights into how Galbraith would approach the current lack of
savings in the US and the sort of policies he might support to increase US
savings rates.
Journal: Review of Political Economy
Pages: 595-611
Issue: 4
Volume: 20
Year: 2008
X-DOI: 10.1080/09538250802308984
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Handle: RePEc:taf:revpoe:v:20:y:2008:i:4:p:595-611
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Allain
Author-X-Name-First: Olivier
Author-X-Name-Last: Allain
Title: Effective Demand and Short-term Adjustments in the General Theory
Abstract:
Keynes's principle of effective demand constitutes a pillar for Post
Keynesian theories. But Keynes's presentation remains difficult to
interpret, mainly because the aggregate demand function is based on
entrepreneurs' expectations. The problem is, then, to demonstrate how
these entrepreneurs (whose only concern is making profits) are led to
generate the effective demand (which partially results from the consumers'
and investors' behaviour). Previous studies by authors such as Weintraub
and Davidson highlight the trial-and-error procedure here involved. But
since their analyses are not built on a precise accounting of monetary
flows, they fail to demonstrate formally the coherence of the whole
adjustment process. The aim of this article is to provide such a formal
demonstration. We thus concentrate on verifying how the General Theory
constitutes a coherent framework to analyse temporary equilibriums (at the
end of every elementary period) and short-term dynamics (towards the
stationary equilibrium) which bring entrepreneurs towards the stationary
equilibrium. Our analysis rests on a distinction between the aggregate
demand and the global expenditure functions. We also distinguish between
two modes of price setting—ex ante price setting by entrepreneurs,
and ex post price setting by the market.
Journal: Review of Political Economy
Pages: 1-22
Issue: 1
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250802516917
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Template-Type: ReDIF-Article 1.0
Author-Name: Alfonso Palacio-Vera
Author-X-Name-First: Alfonso
Author-X-Name-Last: Palacio-Vera
Title: Capital Accumulation, Technical Progress and Labour Supply Growth: Keynes's Approach to Aggregate Supply and Demand Analysis Revisited
Abstract:
This paper addresses the effects on employment and the price level of a
range of factors including capital accumulation, technical progress and
money wage changes by formalising the aggregate supply and demand
framework posited by Keynes in his General Theory. We find that
labour-augmenting technical progress reduces the equilibrium level of
employment, thus lending support to Hansen's notion of technological
unemployment. We also find that capital accumulation and
capital-augmenting technical progress raise the level of employment
whereas, as argued by Keynes and several subsequent authors, money wage
cuts have an ambiguous effect on the level of employment. We discuss a
number of results as well as some aspects related to the adjustment of
aggregate demand to aggregate supply in the long run. We conclude that
Keynes's aggregate supply and demand framework provides a robust
explanation of the mechanism through which increases in potential output
lead over time to equiproportional increases in the level of aggregate
demand and that the mechanism of adjustment to increases in the labour
force in Keynes's theory differs markedly from that in classical theory.
Journal: Review of Political Economy
Pages: 23-49
Issue: 1
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250802516974
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802516974
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:1:p:23-49
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Rahim
Author-X-Name-First: Eric
Author-X-Name-Last: Rahim
Title: Marx and Schumpeter: A Comparison of their Theories of Development
Abstract:
This paper challenges Paul Samuelson's claim that the development
theories of Marx and Schumpeter have little in common. There are indeed
broad similarities between the two theories, arising principally from
Schumpeter's use of Marx's method (with some interesting modifications),
which he calls the 'economic interpretation of history'. This discussion
leads us to ask if we can incorporate into Marx's method some of the
insights suggested by Schumpeter's modifications. We show that Marx's
method is enriched by the insertion into it of an explicit, although
limited, role of the individual (human agency). The paper then turns to
the differences between the two theories, concerning the theory of value
and the analysis of social classes. We find an unresolved tension in
Schumpeter's system of thought, between his attempt to construct a model
of a dynamic, evolving economy on Marxian lines (albeit an alternative to
Marx's model), and his emphasis on the role of the individual, which he
inserts into an essentially static, Walrasian model.
Journal: Review of Political Economy
Pages: 51-83
Issue: 1
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250802516982
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802516982
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:1:p:51-83
Template-Type: ReDIF-Article 1.0
Author-Name: Fred Moseley
Author-X-Name-First: Fred
Author-X-Name-Last: Moseley
Title: Sraffa's Interpretation of Marx's Treatment of Fixed Capital
Abstract:
It is well known that Sraffa analyzed fixed capital as a 'joint product'
along with regular products, such that in each period a given machine
(together with other material and labor inputs) produces a regular product
plus a one-period-older machine of the same type. What is perhaps less
well known is that Sraffa attributed this same method of dealing with
fixed capital to Marx, and to Torrens, Malthus, and Ricardo. This paper
examines the textual evidence presented by Sraffa to support his
interpretation of Marx's treatment of fixed capital, and also examines
more comprehensive textual evidence from the three volumes of Capital not
considered by Sraffa. It is argued that Marx did not treat fixed capital
as a joint product in his theory of prices, but instead consistently
assumed a 'straight-line' method of depreciation, according to which a
constant fraction of the total value of the fixed capital is transferred
to the price of the product in each period, and the remaining value of the
fixed capital is not part of the value of the product, but instead
'remains fixed' in the capital goods.
Journal: Review of Political Economy
Pages: 85-100
Issue: 1
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250802517006
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802517006
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:1:p:85-100
Template-Type: ReDIF-Article 1.0
Author-Name: Mathieu Dufour
Author-X-Name-First: Mathieu
Author-X-Name-Last: Dufour
Author-Name: Ozgur Orhangazi
Author-X-Name-First: Ozgur
Author-X-Name-Last: Orhangazi
Title: The 2000-2001 Financial Crisis in Turkey: A Crisis for Whom?
Abstract:
In this paper, we study the consequences of the 2000-2001 financial
crisis in Turkey to identify the impacts of the crisis on capital and
labor. We uncover three significant empirical effects of this crisis.
First, international capital benefited from the crisis by increasing both
its total assets in Turkey and its income flows from these assets, while
large domestic financial capitalists also increased their profits in the
aftermath of the crisis. Second, industrial capital benefited via a
repression of labor. Third, the attempt to 'remedy' the economy by
imposing structural changes furthered the interests of capital in general.
Journal: Review of Political Economy
Pages: 101-122
Issue: 1
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250802517014
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802517014
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:1:p:101-122
Template-Type: ReDIF-Article 1.0
Author-Name: Joe Wallis
Author-X-Name-First: Joe
Author-X-Name-Last: Wallis
Author-Name: Brian Dollery
Author-X-Name-First: Brian
Author-X-Name-Last: Dollery
Author-Name: Lin Crase
Author-X-Name-First: Lin
Author-X-Name-Last: Crase
Title: Political Economy and Organizational Leadership: A Hope-based Theory
Abstract:
Unlike other disciplines in the humanities and social sciences, economics
has neglected leadership. This paper proposes that a distinctive
leadership role is to facilitate the development of hope so that
organizational members can sustain their commitments. The conceptual
grounding for this approach can be found in the work of Amaryta Sen,
Albert Hirschman and Jon Elster, who have tried to explain the effect of
commitment and emotions on behavior. It is also proposed here that the
authority organizational leaders have to call meetings gives them the
capacity both to influence social interactions to carry out this role, and
to gauge the organization's cultural strength and its members'
receptiveness to inspirational information that can shape the choice of
leadership styles.
Journal: Review of Political Economy
Pages: 123-143
Issue: 1
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250802517030
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802517030
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:1:p:123-143
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt Rothschild
Author-X-Name-First: Kurt
Author-X-Name-Last: Rothschild
Author-Name: John King
Author-X-Name-First: John
Author-X-Name-Last: King
Title: A Conversation with Kurt Rothschild
Abstract:
Kurt Rothschild was born in Vienna in 1914. In 1938 he came to Glasgow as
a refugee from the Nazis, and taught there until his return to Austria in
1947. Between 1947 and 1966 he was a researcher at the Austrian Economic
Research Institute in Vienna (WIFO), specialising in labour market and
trade issues; he still works for WIFO as a consultant. From 1966 until
1985 he was Professor of Economics at the University of Linz. Two volumes
of his collected papers appeared in the 1990s (Rothschild, 1993, 1995).
His recent publications include Rothschild (2004a, 2004b, 2006, 2007a,
2007b). This interview took place in Vienna on 1 November 2007.
Journal: Review of Political Economy
Pages: 145-155
Issue: 1
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250802517089
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802517089
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:1:p:145-155
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Fine
Author-X-Name-First: Ben
Author-X-Name-Last: Fine
Title: Enigma in the Origins of Paul Sweezy's Political Economy
Abstract:
Paul Sweezy's work on the history of the British coal industry gave rise
to his doctoral thesis and a published monograph at exactly the same time
that he was making the transition from mainstream economics to Marxist
political economy. This note explores the peculiar disappearance of this
work from his subsequent contributions despite its apparent influence upon
and consistency with it.
Journal: Review of Political Economy
Pages: 157-161
Issue: 1
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250802517113
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802517113
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:1:p:157-161
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Lewis
Author-X-Name-First: Paul
Author-X-Name-Last: Lewis
Author-Name: Elisabeth Allgoewer
Author-X-Name-First: Elisabeth
Author-X-Name-Last: Allgoewer
Author-Name: Paul Zarembka
Author-X-Name-First: Paul
Author-X-Name-Last: Zarembka
Author-Name: Jurriaan Bendien
Author-X-Name-First: Jurriaan
Author-X-Name-Last: Bendien
Author-Name: John Lodewijks
Author-X-Name-First: John
Author-X-Name-Last: Lodewijks
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Author-Name: William Tabb
Author-X-Name-First: William
Author-X-Name-Last: Tabb
Author-Name: William Tabb
Author-X-Name-First: William
Author-X-Name-Last: Tabb
Author-Name: Tae-Hee Jo
Author-X-Name-First: Tae-Hee
Author-X-Name-Last: Jo
Author-Name: Martin Gregor
Author-X-Name-First: Martin
Author-X-Name-Last: Gregor
Title: Book Reviews
Abstract:
Journal: Review of Political Economy
Pages: 163-189
Issue: 1
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250802517162
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250802517162
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:1:p:163-189
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Mongiovi
Author-X-Name-First: Gary
Author-X-Name-Last: Mongiovi
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Author-Name: John Smithin
Author-X-Name-First: John
Author-X-Name-Last: Smithin
Title: John Derek Pheby, October 24, 1949-October 21, 2008
Abstract:
Journal: Review of Political Economy
Pages: 191-193
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902833998
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902833998
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:191-193
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Veneziani
Author-X-Name-First: Roberto
Author-X-Name-Last: Veneziani
Title: Global Capitalism and Imperialism Theory: Methodological and Substantive Insights from Rosa Luxemburg
Abstract:
This paper analyses some issues raised by Rosa Luxemburg's theory of
imperialism that are central to current debates on globalisation.
Methodologically, despite widespread scepticism on the use of mathematics
in Marxist social science, Luxemburg's rigorous analysis of Marx's schemes
of reproduction forcefully shows the importance of theoretical abstraction
and formal modelling. Indeed, this paper analyses Luxemburg's theory by
means of an intertemporal generalisation of Roemer's (1983) economy with a
global capital market. It focuses in particular on two substantive issues:
the relation between capital accumulation and imperialism, and the role of
force and non-competitive distortions in imperialistic international
relations. It argues that differences in development and competitive
credit markets, rather than realisation problems, are important to
understand the emergence of international exploitation, whereas
extra-economic coercion may be important to understand its persistence.
Journal: Review of Political Economy
Pages: 195-211
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902834004
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902834004
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:195-211
Template-Type: ReDIF-Article 1.0
Author-Name: Kurt Rothschild
Author-X-Name-First: Kurt
Author-X-Name-Last: Rothschild
Title: Neoliberalism, EU and the Evaluation of Policies
Abstract:
Changes in GDP growth, unemployment and inflation are utilized as
indicators of the transition of nineteen OECD countries from Keynesian to
neoliberal policies in the period 1960 to 2007. The paper then shows how
evaluations of this change and of the success of the European Union can
vary depending on the value basis of the observer.
Journal: Review of Political Economy
Pages: 213-225
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902834038
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902834038
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:213-225
Template-Type: ReDIF-Article 1.0
Author-Name: Michele Alacevich
Author-X-Name-First: Michele
Author-X-Name-Last: Alacevich
Title: The World Bank's Early Reflections on Development: A Development Institution or a Bank?
Abstract:
Until the late 1960s, the World Bank presented itself as an institution
devoted to making sound and directly productive project loans. Yet, during
its early years, discussions took place within the Bank regarding the
possibility of issuing different types of loans, namely (i) loans aimed at
tackling social issues ('social loans'), and (ii) loans aimed at providing
foreign currency to address disequilibria in the balance of payments
('impact loans'). This paper brings together historical analysis and
theories of organization development to study the housing issue as a case
in point. The analysis reveals that the Bank was unwilling to lend for
housing programmes not because these were not sound - in fact, they were -
but because they were geared toward achieving social welfare objectives
and were not directly linked to productive investment projects, such as
dams, power stations, and railroads. This early decision had a significant
impact on the subsequent development of the Bank's view of policy-making:
it locked the institution into a particular lending pattern, and deprived
it of important intellectual resources. It was not until the late 1960s
that the Bank began to take social issues into consideration, rather late
compared with other multilateral institutions.
Journal: Review of Political Economy
Pages: 227-244
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902834046
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902834046
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:227-244
Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Author-Name: Lena Vogel
Author-X-Name-First: Lena
Author-X-Name-Last: Vogel
Title: Distribution and Growth in France and Germany: Single Equation Estimations and Model Simulations Based on the Bhaduri/Marglin Model
Abstract:
We analyse the relationship between functional income distribution and
economic growth in France and Germany from 1960 until 2005. The analysis
is based on a demand-driven distribution and growth model for an open
economy inspired by Bhaduri & Marglin (1990), which allows for profit- or
wage-led growth. First, we apply a single equation approach, estimating
the effects of redistribution on the demand aggregates and summing up
these effects in order to obtain the total effect of redistribution on GDP
growth. Since interactions between the demand aggregates are omitted from
this approach, we also apply a simulation approach taking into account
these interactions. In the single equation approach we find that growth in
France was wage-led, whereas the effect in Germany was undetermined. The
results of the simulation approach, however, suggest that the wage-led
nature of growth in France becomes even more pronounced when considering
the interactions between the demand aggregates, while in Germany the
simulations show a tendency towards wage-led growth in the longer run.
Journal: Review of Political Economy
Pages: 245-272
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902834053
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902834053
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:245-272
Template-Type: ReDIF-Article 1.0
Author-Name: Andrea Pacella
Author-X-Name-First: Andrea
Author-X-Name-Last: Pacella
Title: The Effects of Employment Insecurity on Demand, Productivity and Employment Levels
Abstract:
This paper investigates the effects of labour market deregulation on
demand, productivity and employment levels in the short term. The focus
will be on deregulation of labour contracts, i.e. on the transition from a
legal system that guarantees permanent employment to a system of formal
rules allowing for job insecurity. The idea is that the greater the
deregulation of labour contracts, the higher the productivity and the
lower the demand and employment levels.
Journal: Review of Political Economy
Pages: 273-289
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902834061
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902834061
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:273-289
Template-Type: ReDIF-Article 1.0
Author-Name: Hilary Putnam
Author-X-Name-First: Hilary
Author-X-Name-Last: Putnam
Author-Name: Vivian Walsh
Author-X-Name-First: Vivian
Author-X-Name-Last: Walsh
Title: Entanglement throughout Economic Science: The End of a Separate Welfare Economics
Abstract:
In the 1980s, Amartya Sen (1987, p. 51) complained of 'the impoverishment
of welfare economics'. By 1993, Sir Partha Dasgupta (1993, p. 71), citing
Hilary Putnam, had embraced the entanglement of theory, facts and values,
and presented a theoretically rigorous, factually based, and deeply
ethical social welfare function, which has rich non-utilitarian ethical
elements sharply distinguishing it from the old 'welfarist' construction,
and which he called a social evaluation function. Those things that the
'new' welfare economics had notoriously shied away from, above all
interpersonal comparisons, are in full flower in Dasgupta's concept, and
he is so confident of the moral support of his colleagues in the field
that he seldom discusses ethical issues. Could one ask for anything more?
We believe one can, and that framing this work as a separate branch of
economics called 'welfare theory' limits its reach and influence, and
offers its enemies an excuse for evading its message. What is more we
argue that the logical entailments of entanglement render the concept of a
separate 'welfare' economics meaningless.
Journal: Review of Political Economy
Pages: 291-297
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902834087
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902834087
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:291-297
Template-Type: ReDIF-Article 1.0
Author-Name: Mark White
Author-X-Name-First: Mark
Author-X-Name-Last: White
Title: In Defense of Deontology and Kant: A Reply to van Staveren
Abstract:
In this note, I respond to a recent article by Irene van Staveren (2007)
in this journal, where she presents a case for virtue ethics, rather than
deontology or consequentialism, as the most appropriate philosophical
foundation for economics. Rather than taking issue with her positive
arguments for virtue ethics, I argue in defense of deontology - or, more
specifically, the moral philosophy of Immanuel Kant. I argue that, when
properly understood, Kantian ethics should not be associated solely with
formal rules and obligation, but that Kant's moral system can accommodate
many of the concerns of virtue ethics, such as social relations,
real-world context, and human fallibility, as well as embodying a unique
emphasis on human dignity and judgment.
Journal: Review of Political Economy
Pages: 299-307
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902834103
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902834103
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:299-307
Template-Type: ReDIF-Article 1.0
Author-Name: Irene van Staveren
Author-X-Name-First: Irene
Author-X-Name-Last: van Staveren
Title: A Response to Mark D. White
Abstract:
In this response to Mark D. White, I agree with White's clear distinction
between Kant and deontology but reject the suggestion that I would have
implied that virtue ethics is a more appropriate ethical foundation for
economics than both utilitarianism and deontology. Moreover, I argue
against any attempt at creating a hierarchy in ethical foundations for
economics, including one that would put deontology first or a view,
apparently entertained by White, which would (almost) equate virtue with
moral duty, thereby reducing virtue ethics to deontology.
Journal: Review of Political Economy
Pages: 309-312
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902834111
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902834111
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:309-312
Template-Type: ReDIF-Article 1.0
Author-Name: Scott Carter
Author-X-Name-First: Scott
Author-X-Name-Last: Carter
Title: The Constitution of Capital: Essays on Volume I of Marx's Capital
Abstract:
Journal: Review of Political Economy
Pages: 313-315
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871527
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871527
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:313-315
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Whaples
Author-X-Name-First: Robert
Author-X-Name-Last: Whaples
Title: Gambling in America: Costs and Benefits
Abstract:
Journal: Review of Political Economy
Pages: 315-317
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871535
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871535
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:315-317
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Whaples
Author-X-Name-First: Robert
Author-X-Name-Last: Whaples
Title: Coal: A Human History
Abstract:
Journal: Review of Political Economy
Pages: 317-320
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871550
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871550
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:317-320
Template-Type: ReDIF-Article 1.0
Author-Name: Robin Neill
Author-X-Name-First: Robin
Author-X-Name-Last: Neill
Title: A Poverty of Reason: Sustainable Development and Economic Growth
Abstract:
Journal: Review of Political Economy
Pages: 320-322
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871600
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871600
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:320-322
Template-Type: ReDIF-Article 1.0
Author-Name: Stefan Kesting
Author-X-Name-First: Stefan
Author-X-Name-Last: Kesting
Title: Institutional Change and Globalization
Abstract:
Journal: Review of Political Economy
Pages: 322-324
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871626
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871626
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:322-324
Template-Type: ReDIF-Article 1.0
Author-Name: Mathew Bradbury
Author-X-Name-First: Mathew
Author-X-Name-Last: Bradbury
Title: IMF Essays from a Time of Crisis
Abstract:
Journal: Review of Political Economy
Pages: 324-326
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871642
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871642
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:324-326
Template-Type: ReDIF-Article 1.0
Author-Name: Oren Levin-Waldman
Author-X-Name-First: Oren
Author-X-Name-Last: Levin-Waldman
Title: Economic Origins of Dictatorship and Democracy
Abstract:
Journal: Review of Political Economy
Pages: 326-329
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871659
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871659
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:326-329
Template-Type: ReDIF-Article 1.0
Author-Name: Oren Levin-Waldman
Author-X-Name-First: Oren
Author-X-Name-Last: Levin-Waldman
Title: Ethical Codes and Income Distribution: A Study of John Bates Clark and Thorstein Veblen
Abstract:
Journal: Review of Political Economy
Pages: 329-331
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871667
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871667
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:329-331
Template-Type: ReDIF-Article 1.0
Author-Name: Brad Andrew
Author-X-Name-First: Brad
Author-X-Name-Last: Andrew
Title: The First Crash
Abstract:
Journal: Review of Political Economy
Pages: 332-333
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871675
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871675
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:332-333
Template-Type: ReDIF-Article 1.0
Author-Name: Brad Andrew
Author-X-Name-First: Brad
Author-X-Name-Last: Andrew
Title: The Economist's Tale: A Consultant Encounters Hunger and the World Bank
Abstract:
Journal: Review of Political Economy
Pages: 334-335
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871683
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871683
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:334-335
Template-Type: ReDIF-Article 1.0
Author-Name: Michel Bauwens
Author-X-Name-First: Michel
Author-X-Name-Last: Bauwens
Title: Political Economy from Below. Economic Thought in Communitarian Anarchism, 1840-1914
Abstract:
Journal: Review of Political Economy
Pages: 336-337
Issue: 2
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902871691
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902871691
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:2:p:336-337
Template-Type: ReDIF-Article 1.0
Author-Name: John King
Author-X-Name-First: John
Author-X-Name-Last: King
Author-Name: Gary Mongiovi
Author-X-Name-First: Gary
Author-X-Name-Last: Mongiovi
Title: Introductory Note
Abstract:
Journal: Review of Political Economy
Pages: 339-339
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903073354
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903073354
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:339-339
Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Palumbo
Author-X-Name-First: Antonella
Author-X-Name-Last: Palumbo
Title: Adjusting Theory to Reality: The Role of Aggregate Demand in Kaldor's Late Contributions on Economic Growth
Abstract:
This paper deals with the analysis of growth and development Nicholas
Kaldor formulated in the later part of his career, during the 1970s and
1980s. Kaldor's passage from a resource-constrained to a demand-driven
conception of growth was closely connected to his persistent effort to
make economic theory more realistic and relevant, and led him to a complex
vision of the growth process, with historical and institutional factors
playing a fundamental role. However, the particular formulation in which
Kaldor expressed his ideas about the strategic role of exports in the
growth process, namely the long-period foreign trade multiplier, cannot
fully capture the main characterisitcs of his vision of the growth
process, and is in some respects contradictory with that vision. A
critical role is played by Kaldor's conception of the determinants of
investment, which, as in his full-employment growth models, he treats as
entirely induced by output growth, and hence as not posing limits, in
normal conditions, on output expansion.
Journal: Review of Political Economy
Pages: 341-368
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903073362
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903073362
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:341-368
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Title: Cadrisme within a Post-Keynesian Model of Growth and Distribution
Abstract:
The 1990s, especially in the United States, witnessed an unprecedented
change in income distribution, with a large redistribution towards
rentiers on the one hand, and towards the upper ranks of the managerial
bureaucracy on the other hand, as became ever more obvious after the
financial scandals affecting large corporations such as Enron and
Worldcom. This has also been accompanied by large capital gains that
benefited top-file managers as well as shareholders. Ordinary employees
and workers, as a counterpart, have seen their real purchasing power
stagnate. Despite all this, and in contrast to the predictions of the
canonical Kaleckian growth model, many countries achieved respectable
growth rates of capital and output. The purpose of the present paper is to
explain this paradox and to provide a consistent post-Keynesian model of
growth that would model the main features identified above, making a
distinction between managerial labour, basically overhead labour, and
workers, essentially direct labour - a distinction that was recommended,
but never implemented by Kaldor. The model is based on target-return
pricing procedures. We then study the implications of cadrisme, a
managerial-friendly regime based on large pay packages for the managerial
class.
Journal: Review of Political Economy
Pages: 369-391
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903073396
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903073396
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:369-391
Template-Type: ReDIF-Article 1.0
Author-Name: Prabirjit Sarkar
Author-X-Name-First: Prabirjit
Author-X-Name-Last: Sarkar
Title: A Centre-Periphery Framework on Kaldorian Lines
Abstract:
This paper develops the seminal ideas of Nicholas Kaldor into a
Centre-Periphery framework of the world economy, where the Centre faces
the problem of surplus capacity and effective demand and the Periphery
faces a capacity constraint. In such a framework, a Harrod-type 'foreign
trade multiplier' works in a short-run partial equilibrium analysis: a
rise in the Periphery's output increases demand for output of the Centre.
There is some ambiguity in the short-run effect of the peripheral terms of
trade on the output of the Centre. In the long-run equilibrium growth of
the whole framework, the 'foreign trade multiplier' does not work. A rise
in factor productivity or the growth rate in the Periphery leads to a fall
in its terms of trade while the Centre remains unaffected. A rise in the
productivity in the Centre affects its factor income, not its terms of
trade.
Journal: Review of Political Economy
Pages: 393-401
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903073446
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903073446
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:393-401
Template-Type: ReDIF-Article 1.0
Author-Name: Leanne Ussher
Author-X-Name-First: Leanne
Author-X-Name-Last: Ussher
Title: Global Imbalances and the Key Currency Regime: The Case for a Commodity Reserve Currency
Abstract:
This paper considers Kaldor's 1964 proposal for a commodity reserve
currency (CRC) as a serious alternative to the current system, which has
the US dollar as the world reserve currency. It argues that the
reserve-currency status of the US dollar helped to create global
imbalances and financial fragility pre-empting the current crisis. The
primary goal of the CRC was to resolve the 1960 Triffin dilemma, which
remains a problem today. Following a brief history of alternative monetary
reform proposals, the CRC is outlined. Backed by a basket of 30 or so
commodities, the CRC would fix their price index in terms of the
international reserve and reduce the disorderly swings in individual
commodity prices. Sovereign governments would be free to fix or float
their national currencies to the CRC. With growing fears over global
warming and national resource security, particularly in the world's
poorest countries, the introduction of a CRC could reduce supply
constraints, stabilize costs of production, promote global effective
demand from the periphery and balance growth between periphery and core
countries.
Journal: Review of Political Economy
Pages: 403-421
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903073461
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903073461
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:403-421
Template-Type: ReDIF-Article 1.0
Author-Name: Sean Turnell
Author-X-Name-First: Sean
Author-X-Name-Last: Turnell
Author-Name: Leanne Ussher
Author-X-Name-First: Leanne
Author-X-Name-Last: Ussher
Title: A 'New Bretton Woods': Kaldor and the Antipodean Quest for Global Full Employment
Abstract:
In 1949 Nicholas Kaldor co-authored a report whose recommendations, if
implemented, would have revolutionized international economic
policy-making. National and International Measures for Full Employment
(NIFE) had been commissioned by the United Nations (UN). A capstone to
efforts throughout the 1940s to transform international economic
policy-making along Keynesian lines, NIFE was without precedent in the
importance it accorded global effective demand in determining employment
and trade outcomes, and in the commitments it required of governments -
not only to their own people, but to other nations as well. For this it
earned the enmity of many, including some prominent economists. In the end
NIFE fell victim to the independence of nations within the UN and to
changing world circumstances; the report was quietly shelved. Today it is
little known, and to the extent that NIFE continues to be commented on,
its ideas are presented as a step in the progressive shift of focus in
Kaldor's thinking from national to global macroeconomics. We argue that,
while Kaldor was the principal author of NIFE, credit for this global
Keynesian policy must be shared equally with his Australian co-authors.
Journal: Review of Political Economy
Pages: 423-445
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903073479
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903073479
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:423-445
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Boylan
Author-X-Name-First: Thomas
Author-X-Name-Last: Boylan
Author-Name: Paschal O'Gorman
Author-X-Name-First: Paschal
Author-X-Name-Last: O'Gorman
Title: Kaldor on Debreu: The Critique of General Equilibrium Reconsidered
Abstract:
This paper revisits Kaldor's methodological critique of orthodox
economics. The main target of his critique was the theory of general
equilibrium as expounded in the work of Debreu and others. Kaldor deemed
this theory to be seriously flawed as an empirically adequate description
of real-world economies. According to Kaldor, scientific progress was not
possible in economics without a major act of demolition, by which he meant
the destruction of the basic conceptual framework of the theory of general
equilibrium. We extend Kaldor's critique by recourse to major developments
in 20th century philosophy of mathematics, and then go on to demonstrate
that Debreu's work, based as it is on Bourbakist formalism and in
particular Cantorian set theory, is conceptually incompatible with
Kaldor's requirements for an empirical science. This aspect of Kaldor's
critique has not been explored, and as a consequence a major source of
substantiating his critique has remained undeveloped.
Journal: Review of Political Economy
Pages: 447-461
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903073495
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903073495
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:447-461
Template-Type: ReDIF-Article 1.0
Author-Name: Therese Jefferson
Author-X-Name-First: Therese
Author-X-Name-Last: Jefferson
Author-Name: John King
Author-X-Name-First: John
Author-X-Name-Last: King
Title: Nicholas Kaldor and Critical Realism
Abstract:
Kaldor was among the first Post Keynesians to be identified by Tony
Lawson as a forerunner of critical realism, and there are some insights to
be gained by considering why this was so. Kaldor's arguments about
stylised facts and theory building also provide an opportunity to consider
issues of research method. We suggest some criteria that might be used to
assess whether a research program is broadly consistent with a critical
realist agenda. We then examine Kaldor's contributions to see whether his
theoretical and empirical insights fit these criteria. In doing so, we
identify several key areas of interest that extend methodological
discussion in useful directions. We conclude that Lawson was broadly
correct: Kaldor was indeed a forerunner of critical realism.
Journal: Review of Political Economy
Pages: 463-480
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903073537
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903073537
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:463-480
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Dunn
Author-X-Name-First: Stephen
Author-X-Name-Last: Dunn
Title: Cambridge Economics, Heterodoxy and Ontology: An Interview with Tony Lawson
Abstract:
Over the past two decades the Cambridge economist Tony Lawson has been a
leading advocate for an ontological turn in economics, as well as a main
contributor to the specific methodological framework sometimes
systematised as critical realism. On a sunny afternoon on 17 June 2000,
Lawson and I talked at length in his Cambridge garden about his own
intellectual history, his interconnecting relationships with the Cambridge
Economics Faculty, his views on methodology and philosophy, and his
relation to the heterodox traditions in economics, focusing on Post
Keynesianism in particular. What follows is an edited and abridged version
of that discussion.
Journal: Review of Political Economy
Pages: 481-496
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250902834095
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250902834095
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:481-496
Template-Type: ReDIF-Article 1.0
Author-Name: Esteban Perez-Caldentey
Author-X-Name-First: Esteban
Author-X-Name-Last: Perez-Caldentey
Title: Economists in Cambridge. A Study through their Correspondence, 1907-1946
Abstract:
Journal: Review of Political Economy
Pages: 497-500
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903090424
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090424
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:497-500
Template-Type: ReDIF-Article 1.0
Author-Name: Ferudun Yilmaz
Author-X-Name-First: Ferudun
Author-X-Name-Last: Yilmaz
Title: Recent Developments in Institutional Economics
Abstract:
Journal: Review of Political Economy
Pages: 500-502
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903090234
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090234
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:500-502
Template-Type: ReDIF-Article 1.0
Author-Name: Alain Marciano
Author-X-Name-First: Alain
Author-X-Name-Last: Marciano
Title: Altruistically Inclined? The Behavioral Sciences, Evolutionary Theory, and the Origins of Reciprocity
Abstract:
Journal: Review of Political Economy
Pages: 502-505
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903090341
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090341
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:502-505
Template-Type: ReDIF-Article 1.0
Author-Name: Stavros Mavroudeas
Author-X-Name-First: Stavros
Author-X-Name-Last: Mavroudeas
Title: Marx's Theory of Money. Modern Appraisals
Abstract:
Journal: Review of Political Economy
Pages: 505-507
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903090366
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090366
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:505-507
Template-Type: ReDIF-Article 1.0
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: The Political Economy of the Living Wage: A Study of Four Cities
Abstract:
Journal: Review of Political Economy
Pages: 508-509
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903090242
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090242
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:508-509
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Whaples
Author-X-Name-First: Robert
Author-X-Name-Last: Whaples
Title: Changing the Guard: Private Prisons and the Control of Crime
Abstract:
Journal: Review of Political Economy
Pages: 510-511
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903090200
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090200
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:510-511
Template-Type: ReDIF-Article 1.0
Author-Name: Orly Lobel
Author-X-Name-First: Orly
Author-X-Name-Last: Lobel
Title: How the Other Half Works: Immigration and the Social Organization of Labor
Abstract:
Journal: Review of Political Economy
Pages: 511-514
Issue: 3
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903090317
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090317
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:3:p:511-514
Template-Type: ReDIF-Article 1.0
Author-Name: William Jackson
Author-X-Name-First: William
Author-X-Name-Last: Jackson
Title: Retirement Policies and the Life Cycle: Current Trends and Future Prospects
Abstract:
During the 20th century, pensions in developed countries were generally
payable from a statutory retirement age which provided a norm for
retirement behaviour and a threshold dividing older from younger age
groups. Governments, by setting fixed starting dates for work and
retirement, created a standardised life cycle with clearly delineated and
uniform boundaries between education, work and retirement stages. Over the
last 30 years or so, retirement behaviour has diverged from official norms
and moved towards earlier retirement, although pressures for later
retirement are now increasing as concerns over pension finance provoke
calls for older workers to remain economically active. Weaker retirement
norms have prompted speculation that working practices may be evolving
from a Fordist life cycle with fixed stages to post-Fordist life courses
with fluid and variable personal experiences. This paper assesses current
trends, asking whether they do indicate major changes in the life cycle,
and considers the flexibility of retirement, paying particular attention
to the influence of government and employers. Several ways in which
retirement could develop are identified, but few of them remove the
constraints on retirees: truly flexible retirement will not occur
spontaneously and will require explicit policies to safeguard retirement
choices.
Journal: Review of Political Economy
Pages: 515-536
Issue: 4
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903215823
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903215823
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:4:p:515-536
Template-Type: ReDIF-Article 1.0
Author-Name: Rouba Al-Fattal
Author-X-Name-First: Rouba
Author-X-Name-Last: Al-Fattal
Title: The Tragedy of the Commons: Institutions and Fisheries Management at the Local and EU Levels
Abstract:
Garrett Hardin's Tragedy of the Commons argument states that resources
held in common will inevitably suffer overexploitation and degradation.
However, recent contradicting evidence has led theorists to question the
soundness of this claim. This paper assesses the accuracy and predictive
success of the six essential assumptions of Hardin's approach. The aim of
the paper is to compare the functioning of the tragedy of the commons
approach at the local and the international levels, in order to
demonstrate that the context we choose affects the applicability of the
hypothesis in explaining policy outcomes. The paper compares the validity
of the tragedy of the commons hypothesis in three marine cases: California
fisheries, modern Oregon fisheries and European Union Common Fisheries
Policy. We find that at the local level the tragedy of the commons can be
mitigated when a co-management of institutions is achieved, while the EU
case shows that the tragedy of the commons is a realistic prediction when
dealing with international institutions.
Journal: Review of Political Economy
Pages: 537-547
Issue: 4
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903214834
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903214834
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:4:p:537-547
Template-Type: ReDIF-Article 1.0
Author-Name: Carol Connell
Author-X-Name-First: Carol
Author-X-Name-Last: Connell
Title: Method, Structure and Argument in Edith Penrose's Theory of Growth
Abstract:
Edith Penrose's The Theory of the Growth of the Firm proposed a process
theory of growth based on the pursuit and coordination of knowledge. From
1956 to 1973, Penrose began to focus on large international firms
operating in developing countries. She found government to be a continuous
input to the growth process. We argue here that Penrose was a heterodox
economist, who followed the methodological style and structure of her
Austrian mentor Fritz Machlup, embraced the neoclassical case study method
of Marshall, and articulated a viewpoint on international growth that is
much in line with Roy Harrod, Maurice Bye and Charles Kindleberger, who
devoted considerable attention to why governments find it necessary to
impose restraints on how such firms invest in their economies. The
background and development of Penrose's work has implications for theory
and policy, specifically for the Resource-based view which recognizes
Penrose as its founder.
Journal: Review of Political Economy
Pages: 549-566
Issue: 4
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903214842
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903214842
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:4:p:549-566
Template-Type: ReDIF-Article 1.0
Author-Name: Rudy Fichtenbaum
Author-X-Name-First: Rudy
Author-X-Name-Last: Fichtenbaum
Title: The Impact of Unions on Labor's Share of Income: A Time-Series Analysis
Abstract:
Early time-series studies that examined the impact of unions on labor's
share of income were primarily descriptive. They generally found that
unions did not impact labor's share of income. In contrast, later studies,
using either panel data or cross-section data, have produced mixed
results. This study adds to our understanding of this topic by first
developing an analytical model based on imperfect competition and then
testing the model using time-series data for the US manufacturing sector
from 1949-2006. The results demonstrate that unions have a positive impact
on labor's share of income. They show that for each one percentage point
reduction in union density, the proportion of income received by
production workers declines by about 0.2 percentage points, holding other
factors constant. From 1949 to 2006, labor's share of income declined
approximately 25 percentage points; around 28% of that decline is
explained by the decline in unionization. This paper is distinctive in
estimating the proportion of the decline in labor's share attributable to
declining unionization. It also has important implications for the
Employee Free Choice Act and sheds light on whether social or
institutional forces can affect the distribution of income.
Journal: Review of Political Economy
Pages: 567-588
Issue: 4
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903214859
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903214859
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:4:p:567-588
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Roberts
Author-X-Name-First: Bruce
Author-X-Name-Last: Roberts
Title: RICARDO: Standard Commodity : : MARX: ?
Abstract:
Sraffa's construct, the standard commodity, responds to Ricardo's search
for an 'invariable' measure of value, since it is a measurement unit
invariant to changes in distribution. But Sraffa suggests that there is no
'counterpart,' no analogous search or needed construct, for the 'problem'
of 'difference' as distinct from change ('why two commodities produced by
the same quantities of labour are not of the same exchangeable value').
Difference in this sense is crucial to Marx, who distinguishes value and
surplus-value from capitalist price and profit in part in order to
theorize differences as systematic value transfers. In that effort, Marx
repeatedly poses commodities and capitals as 'aliquot parts' of the whole,
so that profit is a redistributed share of aggregate surplus-value. This
paper shows that, when Marx's aliquot part imagery is formalized, the
resulting hypothetical system represents a meaningful 'counterpart,' a
construct with a function in Marx's analysis of difference comparable to
that of Sraffa's standard commodity in analyzing distributional change. A
Marxian 'standard system' posing each commodity as an aliquot part of the
social capital (a) defines the needed labor-time unit of social account by
homogenizing heterogeneous concrete labors as socially average
('abstract') labor while simultaneously (b) allowing the derivation of
exchange-value (e.g., capitalist production price) on that scale via
summation of directly and indirectly embodied labor. Indeed, Marx's
approach to production prices as resulting from an inter-industry
redistribution of aggregate surplus-value is shown to be algebraically
identical to the calculation of labor-embodied under 'aliquot part'
production conditions.
Journal: Review of Political Economy
Pages: 589-619
Issue: 4
Volume: 21
Year: 2009
X-DOI: 10.1080/09538250903214875
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903214875
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Handle: RePEc:taf:revpoe:v:21:y:2009:i:4:p:589-619
Template-Type: ReDIF-Article 1.0
Author-Name: Bruce Elmslie
Author-X-Name-First: Bruce
Author-X-Name-Last: Elmslie
Title: One Small Step for Man: Paul Krugman, the 2008 Nobel Laureate in Economics
Abstract:
Paul Krugman was awarded the 2008 Nobel Prize in Economics 'for his
analysis of trade patterns and location of economic activity'
(http://nobelprize.org). This article assesses the importance of Krugman's
contributions to both the state of our knowledge and methodology as a
profession. The focus of the article is on Krugman's contributions to
trade theory beginning with Krugman (1979a). This article had a major
direct impact on the direction of research on international trade while
also containing the seeds of his work 12 years later on economic
geography.
Journal: Review of Political Economy
Pages: 1-17
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903391855
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903391855
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:1-17
Template-Type: ReDIF-Article 1.0
Author-Name: Gilberto Tadeu Lima
Author-X-Name-First: Gilberto Tadeu
Author-X-Name-Last: Lima
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Title: Pricing Behaviour and the Cost-Push Channel of Monetary Policy
Abstract:
This paper examines the empirical and theoretical status of the cost-push
channel of monetary policy, according to which interest rates affect the
costs of production and hence pricing behaviour. Particular attention is
paid to modelling the cost-push channel in a manner consistent with
cost-plus pricing theory, which is identified as the canonical model of
pricing behaviour in heterodox economics. It is shown that different
variants of cost-plus pricing behaviour give rise to qualitatively
different specifications of the cost-push channel, with important
consequences for macrodynamics and the conduct of monetary policy.
Journal: Review of Political Economy
Pages: 19-40
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903391863
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903391863
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:19-40
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Palley
Author-X-Name-First: Thomas
Author-X-Name-Last: Palley
Title: The Relative Permanent Income Theory of Consumption: A Synthetic Keynes-Duesenberry-Friedman Model
Abstract:
This paper presents a theory of consumption that synthesizes the seminal
contributions of Keynes (1936), Duesenberry (1948), and Friedman (1957).
The model is labeled the 'relative permanent income' theory of
consumption. The key feature is that the share of permanent income devoted
to consumption is a negative function of household relative permanent
income. The model generates patterns of consumption spending consistent
with both long-run time series data for aggregate consumption and
empirical findings from cross-section data showing high-income households
have a higher propensity to save. The model also explains why consumption
inequality is less than income inequality.
Journal: Review of Political Economy
Pages: 41-56
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903391954
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903391954
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:41-56
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Peacock
Author-X-Name-First: Mark
Author-X-Name-Last: Peacock
Title: Starvation and Social Class: Amartya Sen on Markets and Famines
Abstract:
In his recent work, Amartya Sen assesses markets positively because they
contribute to freedom. His work on famines, however, harbours a critical
stance toward markets. In this paper, I compare Sen's 'two views' of
markets and argue that his positive assessment is untenable. Markets can
undermine freedom and, to show this, I examine the effects of
market-dependence in times of famine; I extend the purview of Sen's
analysis to include the manner in which subsistence producers who were
once relatively autonomous from markets for their survival become
dependent on markets. In conclusion, I examine the normative aspects of
Sen's work on famines.
Journal: Review of Political Economy
Pages: 57-73
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903391988
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903391988
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:57-73
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Besomi
Author-X-Name-First: Daniele
Author-X-Name-Last: Besomi
Author-Name: Giorgio Colacchio
Author-X-Name-First: Giorgio
Author-X-Name-Last: Colacchio
Title: Auguste Ott on Commercial Crises and Distributive Justice: An Early Input-Output Scheme
Abstract:
In 1851 the French Social economist Auguste Ott discussed the problem of
gluts and commercial crises, together with the issue of distributive
justice between workers in co-operative societies. He did so by means of a
'simple reproduction scheme' sharing some features with modern
intersectoral transactions tables, in particular in terms of their
graphical representation. This paper presents Ott's theory of crises
(which was based on the disappointment of expectations) and the context of
his model, and discusses its peculiarities, supplying a new piece for the
reconstruction of the prehistory of input-output analysis.
Journal: Review of Political Economy
Pages: 75-96
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903392101
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903392101
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:75-96
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Gualerzi
Author-X-Name-First: Davide
Author-X-Name-Last: Gualerzi
Author-Name: Edward Nell
Author-X-Name-First: Edward
Author-X-Name-Last: Nell
Title: Transformational Growth in the 1990s: Government, Finance and High-tech
Abstract:
Our aim is to understand how the process of transformational growth
during the 1990s shaped the boom and bust of the New Economy. From the
debate on new technologies and productivity growth, we move on to consider
the questions raised by technological developments of the 1990s. Our focus
is on the three-way relationship between the development of information
and communications technologies, structural change and economic growth, as
the key determinants of the cycle of expansion. This brings to the fore
the effects of private investment driven by high-technology but we also
need to consider the role played by finance and macro policy, and, in
particular, the government budget.
Journal: Review of Political Economy
Pages: 97-117
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903214867
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903214867
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:97-117
Template-Type: ReDIF-Article 1.0
Author-Name: Pierangelo Garegnani
Author-X-Name-First: Pierangelo
Author-X-Name-Last: Garegnani
Author-Name: Attilio Trezzini
Author-X-Name-First: Attilio
Author-X-Name-Last: Trezzini
Title: Cycles and Growth: A Source of Demand-Driven Endogenous Growth
Abstract:
This paper moves in a theoretical context in which the level of economic
activity is dependent on aggregate demand in both the long and the short
period. It shows that given two simple hypotheses, the economy will
exhibit a tendency to grow independently of any increase in the average
level of ongoing investment (or any other type of 'autonomous' demand)
over time. The two hypotheses are (a) that investment oscillates over time
and (b) that the community's marginal propensity to consume is lower when
income contracts in slumps than when it increases in booms. This points to
a source of growth that is as endogenous to the system, as trade cycles
are.
Journal: Review of Political Economy
Pages: 119-125
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903392119
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903392119
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:119-125
Template-Type: ReDIF-Article 1.0
Author-Name: Roy Grieve
Author-X-Name-First: Roy
Author-X-Name-Last: Grieve
Title: Pecuniary External Economies, Economies of Scale and Increasing Returns: A Note of Dissent
Abstract:
In a recent paper Chandra & Sandilands (2006) put forward three
contentious propositions concerning the 'mechanics' of the process of
economic growth: these propositions are to the effect (1) that 'pecuniary
external economies' should not be considered instances of market failure;
(2) that economies of scale are of little importance in accounting for
increasing returns, increasing returns being, it is alleged, attributable
to other factors such as external economies or 'industrial
differentiation'; and (3) that increasing returns are not 'sector
specific', implying that particular sectors should not therefore be
singled out for special promotion. This note investigates the arguments
advanced by Chandra & Sandilands in support of these propositions, and
finds that no convincing case is made for any of them. In particular, we
stress the invalidity of Chandra & Sandilands' contention that increasing
returns are largely independent of economies of scale.
Journal: Review of Political Economy
Pages: 127-140
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903214883
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903214883
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:127-140
Template-Type: ReDIF-Article 1.0
Author-Name: Ramesh Chandra
Author-X-Name-First: Ramesh
Author-X-Name-Last: Chandra
Author-Name: Roger Sandilands
Author-X-Name-First: Roger
Author-X-Name-Last: Sandilands
Title: Reply to Roy H. Grieve on Increasing Returns
Abstract:
Journal: Review of Political Economy
Pages: 141-150
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903214891
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903214891
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:141-150
Template-Type: ReDIF-Article 1.0
Author-Name: M. G. Hayes
Author-X-Name-First: M. G.
Author-X-Name-Last: Hayes
Title: The Fault Line between Keynes and the Cambridge Keynesians: A Review Essay
Abstract:
This essay reviews Michael Ambrosi's important but neglected book on the
formative period of Keynesian economics. The book traces the evolution of
a Cambridge macroeconomic tradition running from Marshall and Pigou to
Keynes, and interprets The General Theory as a response to Pigou's
analysis of unemployment. Ambrosi also argues that Keynes's disciples,
Richard Kahn, Nicholas Kaldor and Joan Robinson, were, in the 1930s,
wedded to a Pigovian methodology and did not immediately recognise that
Keynes had redefined the meaning of equilibrium in The General Theory.
Keynes's attempt to redefine the analytical basis of neoclassical
economics was thwarted, not merely by the neoclassical synthesis, but by
those who claimed to be the inheritors and guardians of his vision.
Journal: Review of Political Economy
Pages: 151-160
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903392127
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903392127
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:151-160
Template-Type: ReDIF-Article 1.0
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: A Measure of Fairness: The Economics of Living Wages and Minimum Wages in the United States
Abstract:
Journal: Review of Political Economy
Pages: 161-164
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903090291
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090291
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:161-164
Template-Type: ReDIF-Article 1.0
Author-Name: Christopher Niggle
Author-X-Name-First: Christopher
Author-X-Name-Last: Niggle
Title: Reinventing Functional Finance: Transformational Growth and Full Employment
Abstract:
Journal: Review of Political Economy
Pages: 165-168
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903090416
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090416
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:165-168
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Whaples
Author-X-Name-First: Robert
Author-X-Name-Last: Whaples
Title: Rethinking Pension Reform/What You Need to Know about the Economics of Growing Old (But Were Afraid to Ask): A Provocative Reference Guide to the Economics of Aging
Abstract:
Journal: Review of Political Economy
Pages: 168-170
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903090192
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090192
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:168-170
Template-Type: ReDIF-Article 1.0
Author-Name: Karl Widerquist
Author-X-Name-First: Karl
Author-X-Name-Last: Widerquist
Title: In Our Hands: A Plan to Replace the Welfare State
Abstract:
Journal: Review of Political Economy
Pages: 170-174
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903090218
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903090218
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:170-174
Template-Type: ReDIF-Article 1.0
Author-Name: Guinevere Liberty Nell
Author-X-Name-First: Guinevere Liberty
Author-X-Name-Last: Nell
Title: The Cambridge Companion to Hayek
Abstract:
Journal: Review of Political Economy
Pages: 174-176
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903392135
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903392135
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:174-176
Template-Type: ReDIF-Article 1.0
Author-Name: Matt Vidal
Author-X-Name-First: Matt
Author-X-Name-Last: Vidal
Title: The Great Financial Crisis: Causes and Consequences
Abstract:
Journal: Review of Political Economy
Pages: 177-180
Issue: 1
Volume: 22
Year: 2010
X-DOI: 10.1080/09538250903392143
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538250903392143
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:1:p:177-180
Template-Type: ReDIF-Article 1.0
Author-Name: Nahid Aslanbeigui
Author-X-Name-First: Nahid
Author-X-Name-Last: Aslanbeigui
Author-Name: Guy Oakes
Author-X-Name-First: Guy
Author-X-Name-Last: Oakes
Author-Name: Nancy Uddin
Author-X-Name-First: Nancy
Author-X-Name-Last: Uddin
Title: Assessing Microcredit in Bangladesh: A Critique of the Concept of Empowerment
Abstract:
Assessing microcredit programs by testing their contribution to the
empowerment of borrowers has been widely advocated and explored in the
literature on women and development. There is considerable debate on
whether microcredit empowers or disempowers women, and there are attempts
to reconcile conflicting conclusions based on heterogeneous samples or
data sets and grounded in a variety of methodologies. Although there is
little agreement on the relation between microcredit and empowerment and
no consensus on the meaning of the idea of empowerment itself, students of
gender and development seem to be at one in regarding empowerment as a
logically unproblematic concept. We argue that the idea of empowerment
employed in this literature is vulnerable to a number of logical
criticisms and cannot serve as a sound basis for determining the value of
microcredit to borrowers. Our research suggests that in assessing the
impact of microcredit, it is essential to consider generational and
inter-generational differences it makes in the lives of borrowers and
their families. Results of ethnographic work conducted in January 2008 on
long-term borrowers of the Grameen Bank inform the exposition of the
arguments.
Journal: Review of Political Economy
Pages: 181-204
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665446
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665446
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:181-204
Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Author-Name: Till Van Treeck
Author-X-Name-First: Till
Author-X-Name-Last: Van Treeck
Title: Financialisation and Rising Shareholder Power in Kaleckian/Post-Kaleckian Models of Distribution and Growth
Abstract:
We establish the link between rising shareholder power on the firm level,
increasing pressure on labour, and redistribution at the expense of wages,
with the macroeconomic effects on capacity utilisation, profits and
capital accumulation. Three channels of transmission of 'financialisation'
and increasing shareholder power, the 'preference channel', the 'finance
channel' and the 'distribution channel', are introduced into two different
variants of the Kaleckian distribution and growth model, the Kaleckian
model and the Post-Kaleckian model. Within these models, three potential
regimes of accumulation are derived, the 'contractive' regime, the
'profits without investment' regime, and the 'finance-led growth' regime.
Only the 'profits without investment' regime generates a strict
micro-macro identity, whereas the other two regimes are characterised by
fallacies of composition, a 'paradox of accumulation' in the 'finance-led
growth' regime and a 'paradox of profits' in the 'contractive' regime.
Journal: Review of Political Economy
Pages: 205-233
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665628
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665628
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:205-233
Template-Type: ReDIF-Article 1.0
Author-Name: Roger Koppl
Author-X-Name-First: Roger
Author-X-Name-Last: Koppl
Author-Name: E. James Cowan
Author-X-Name-First: E. James
Author-X-Name-Last: Cowan
Title: A Battle of Forensic Experts is not a Race to the Bottom
Abstract:
We apply concepts from the small, but growing literature on the economics
of experts to forensic science. An economic theory of experts must build
on the assumption that experts are no more or less influenced by
incentives than actors in other areas of human action. We suggest changes
in the organization of forensic science that will improve error
prevention, detection, and correction. In particular, a right of forensic
expertise for the defense would bring the adversarial process of criminal
courts closer to an 'equality of arms' and increase the probability that
the biases in the system will be neutralized, errors minimized, and truth
discovered. It is our contention that by including competing forensic
experts among a series of needed changes, we are wresting decision making
from the forensic experts and returning it to the finders of fact, the
judge or jury.
Journal: Review of Political Economy
Pages: 235-262
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665644
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665644
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:235-262
Template-Type: ReDIF-Article 1.0
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Author-Name: David Spencer
Author-X-Name-First: David
Author-X-Name-Last: Spencer
Title: Labour Supply, Employment and Unemployment in Macroeconomics: A Critical Appraisal of Orthodoxy and a Heterodox Alternative
Abstract:
The paper begins with a critical evaluation of the modelling of the
individual supply function of labour in orthodox economics. The varying
ways in which the aggregate labour supply curve has been represented in
macroeconomics texts is then outlined. A proposal for a simple
representation of the aggregate labour supply curve based on economic,
social and institutional realities is then provided. Finally the
implications of our discussion for macroeconomic analysis are drawn.
Journal: Review of Political Economy
Pages: 263-279
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665651
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665651
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:263-279
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan Marie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Marie
Title: Inflation in Argentina during the Second Peronist Period (1973-76): A Post-Keynesian Interpretation
Abstract:
This paper uses the Post-Keynesian approach to examine the surge of
inflation in Argentina between 1973 and 1976. The pattern of inflation is
compared with the changing course of the distributional conflict that
characterised the episode. A description of the prevailing political and
social context provides insight into Argentina's macroeconomic evolution.
Two sub-periods are identified: one from June 1973 to October 1974
characterised mainly by a slowdown in inflation and an upturn in economic
growth; a second, ending in the first quarter of 1976, during which the
distributional conflict flared up again partly because of the rise in
import prices and partly because the firms and workers involved enjoyed
substantial market power and bargaining power. This led to an escalation
of inflation and great variability in macroeconomic circumstances.
Journal: Review of Political Economy
Pages: 281-299
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665677
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665677
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:281-299
Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Reati
Author-X-Name-First: Angelo
Author-X-Name-Last: Reati
Title: The Structure of Post-Keynesian Economics. The Core Contributions of the Pioneers
Abstract:
Journal: Review of Political Economy
Pages: 301-304
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665768
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665768
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:301-304
Template-Type: ReDIF-Article 1.0
Author-Name: Collin Matton
Author-X-Name-First: Collin
Author-X-Name-Last: Matton
Title: Toward Globalization with a Human Face
Abstract:
Journal: Review of Political Economy
Pages: 304-306
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665792
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665792
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:304-306
Template-Type: ReDIF-Article 1.0
Author-Name: Dany Lang
Author-X-Name-First: Dany
Author-X-Name-Last: Lang
Title: Keynes and his Battles
Abstract:
Journal: Review of Political Economy
Pages: 306-309
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665800
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665800
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:306-309
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Scott
Author-X-Name-First: Robert
Author-X-Name-Last: Scott
Title: Poverty, Work and Freedom: Political Economy and the Moral Order
Abstract:
Journal: Review of Political Economy
Pages: 309-311
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665834
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665834
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:309-311
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Alejandra Madi
Author-X-Name-First: Maria Alejandra
Author-X-Name-Last: Madi
Author-Name: Jose Ricardo Goncalves
Author-X-Name-First: Jose Ricardo
Author-X-Name-Last: Goncalves
Title: Ideology and the International Economy. The Decline and Fall of Bretton Woods
Abstract:
Journal: Review of Political Economy
Pages: 311-313
Issue: 2
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665859
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665859
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:2:p:311-313
Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Title: Macroeconomic Policy Mix, Employment and Inflation in a Post-Keynesian Alternative to the New Consensus Model
Abstract:
New Consensus Models (NCMs) have been criticised by Post-Keynesians for a
variety of reasons, and amendments or alternatives have been presented.
The present paper attempts to provide a Post-Keynesian alternative model
to the NCM. The model consists of three classes: rentiers, firms and
workers. It has a short-run inflation barrier derived from distribution
conflict between these classes, which is endogenous in the medium run.
Distribution conflict affects not only inflation but also income shares.
On the demand side, the income classes have different saving propensities.
We apply a Kaleckian investment function with expected sales and internal
funds as major determinants. The paper analyses short-run stability and
includes medium-run endogeneity channels for the
Non-Accelerating-Inflation-Rate-of-Unemployment, or NAIRU: persistence
mechanisms in the labour market, adaptive wage and profit aspirations,
investment in capital stock and cost effects of interest rate changes.
From the model, Post-Keynesian policy rules are derived. We argue that
improved employment without increasing inflation will be possible if
macroeconomic policies are coordinated along the following lines: the
central bank targets distribution, wage bargaining parties target
inflation and fiscal policies are applied for short- and medium-run real
stabilisation purposes.
Journal: Review of Political Economy
Pages: 317-354
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.491283
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.491283
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:317-354
Template-Type: ReDIF-Article 1.0
Author-Name: Sinclair Davidson
Author-X-Name-First: Sinclair
Author-X-Name-Last: Davidson
Author-Name: Heath Spong
Author-X-Name-First: Heath
Author-X-Name-Last: Spong
Title: Positive Externalities and R&D: Two Conflicting Traditions in Economic Theory
Abstract:
This paper explores the early discussion of external economies in the
work of Alfred Marshall and Arthur Pigou. Marshall emphasized external
economies as a positive aspect of the market process. Pigou's
interpretation of externalities has become the standard public finance
argument on the existence of market failure, and provides the rationale
for proposed policy solutions. An examination of the differences between
the two perspectives is subsequently used as the base for a discussion of
the modern analysis of research and development, and of the difficulties
inherent in the standard Pigovian view. A final substantive section of the
paper reconsiders the Marshallian perspective, identifying recent
contributions to economic theory that have begun a return to Marshall's
original interpretation. The conclusion considers the significance of this
Marshallian tradition for industrial policy.
Journal: Review of Political Economy
Pages: 355-372
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.491284
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.491284
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:355-372
Template-Type: ReDIF-Article 1.0
Author-Name: Stephanie Seguino
Author-X-Name-First: Stephanie
Author-X-Name-Last: Seguino
Title: Gender, Distribution, and Balance of Payments Constrained Growth in Developing Countries
Abstract:
An unresolved debate in the development literature concerns the impact of
gender equality on economic growth. Previous studies have found that the
effect varies, depending on the measure of equality (wages or
capabilities). This paper expands that discussion by considering both the
short and long run, evaluating the effects of gender equality in two types
of economies—semi-industrialized economies (SIEs) and low-income
agricultural economies (LIAEs). Further, it incorporates gender effects on
the balance of payments constraint to growth. The results suggest that
gender wage and capabilities equality work in opposite directions in SIEs
and in the same (positive) direction in LIAEs. In the long-run analysis,
government macroeconomic management policies are shown to be necessary in
order to ratify movements towards gender equality.
Journal: Review of Political Economy
Pages: 373-404
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.491285
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.491285
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:373-404
Template-Type: ReDIF-Article 1.0
Author-Name: Emiliano Brancaccio
Author-X-Name-First: Emiliano
Author-X-Name-Last: Brancaccio
Title: On the Impossibility of Reducing the Surplus Approach to a Neoclassical 'Special Case': A Criticism of Hahn in a Solowian Context
Abstract:
We propose a new criticism of Frank Hahn's attempt to prove that the
surplus approach constitutes no more than a 'special case' of the
neoclassical model of intertemporal general equilibrium. In particular, we
show that Hahn's 'special case' is vitiated by the paradox of determining
the past as a function of the future. In order to make the communication
between schools of thought easier, we present our criticism of Hahn within
a mathematical framework drawn from the well-known Solow growth model.
Journal: Review of Political Economy
Pages: 405-418
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.491288
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.491288
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:405-418
Template-Type: ReDIF-Article 1.0
Author-Name: Ron Baiman
Author-X-Name-First: Ron
Author-X-Name-Last: Baiman
Title: The Infeasibility of Free Trade in Classical Theory: Ricardo's Comparative Advantage Parable has no Solution
Abstract:
In this paper, formal models of Ricardo's comparative advantage parable,
which include general forms of consumer price response behavior, are
constructed from a detailed textual exegesis of Ricardo's story. Using
these models, the comparative advantage parable is shown to be
mathematically over-determined and therefore generally unsolvable. To
reinforce this conclusion, a numerical solution is derived for a constant
elasticity version of the model. A necessary condition for the existence
of a solution to the constant elasticity model is that two price
elasticities of demand must be functions of the other two price
elasticities of demand. General formulas are derived expressing this
dependency. When realistic elasticities for wine are set, the model can
only be solved if Portuguese demand for English cloth is unrealistically
elastic. This demonstrates that sustainable and mutually beneficial trade
between England and Portugal can only be realized through managed trade.
Journal: Review of Political Economy
Pages: 419-437
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665693
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665693
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:419-437
Template-Type: ReDIF-Article 1.0
Author-Name: Michael McLure
Author-X-Name-First: Michael
Author-X-Name-Last: McLure
Title: Pareto's 'Chronicles' in Relation to his Sociology
Abstract:
The 'second series' of the Giornale degli Economisti commenced in 1890
and established itself as the leading Italian vehicle for the
dissemination of the new marginalist economics. From 1891 it also included
a special feature entitled 'cronaca', which critically chronicled
practical developments in Italian public policy, public finances and the
state of the economy. Vilfredo Pareto was the regular author of the
chronicles between 1893 and 1897. This study provides the context
necessary for an appreciation of the juxtaposition evident in Pareto's
chronicles between his radical-liberal critique of leading Italian
politicians and his relatively gentle commentary on some Italian leaders
associated with the extreme left. It also identifies attributes from
Pareto's chronicles that extended, albeit in a modified form, to his 1916
Trattato di Sociologia Generale. In both instances: the actual political
world is characterised on a similar basis; criticism is undertaken on a
brutal, sarcastic and often polemic manner; and the left-right political
divide is treated as a relatively low-order issue.
Journal: Review of Political Economy
Pages: 439-458
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665743
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665743
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:439-458
Template-Type: ReDIF-Article 1.0
Author-Name: Terry Peach
Author-X-Name-First: Terry
Author-X-Name-Last: Peach
Title: Wealth and Life: Essays on the Intellectual History of Political Economy in Britain, 1848-1914
Abstract:
Journal: Review of Political Economy
Pages: 459-462
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.491290
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.491290
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:459-462
Template-Type: ReDIF-Article 1.0
Author-Name: Emiliano Brancaccio
Author-X-Name-First: Emiliano
Author-X-Name-Last: Brancaccio
Title: General Equilibrium, Capital and Macroeconomics: A Key to Recent Controversies in Equilibrium Theory
Abstract:
Journal: Review of Political Economy
Pages: 462-467
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.491291
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.491291
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:462-467
Template-Type: ReDIF-Article 1.0
Author-Name: Cameron Weber
Author-X-Name-First: Cameron
Author-X-Name-Last: Weber
Title: The Origin and Development of Financial Markets and Institutions: From the Seventeenth Century to the Present
Abstract:
Journal: Review of Political Economy
Pages: 468-470
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.491292
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:468-470
Template-Type: ReDIF-Article 1.0
Author-Name: Gene Callahan
Author-X-Name-First: Gene
Author-X-Name-Last: Callahan
Title: Reason and Rationality
Abstract:
Journal: Review of Political Economy
Pages: 470-473
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538251003665826
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538251003665826
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:470-473
Template-Type: ReDIF-Article 1.0
Author-Name: Tae-Hee Jo
Author-X-Name-First: Tae-Hee
Author-X-Name-Last: Jo
Title: Welfare, Right, and the State: A Framework for Thinking
Abstract:
Journal: Review of Political Economy
Pages: 473-475
Issue: 3
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.491293
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.491293
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:3:p:473-475
Template-Type: ReDIF-Article 1.0
Author-Name: G. C. Harcourt
Author-X-Name-First: G. C.
Author-X-Name-Last: Harcourt
Title: Foreword to the Symposium
Abstract:
Journal: Review of Political Economy
Pages: 477-480
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510291
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510291
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:477-480
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Author-Name: A. P. Thirlwall
Author-X-Name-First: A. P.
Author-X-Name-Last: Thirlwall
Title: Macrodynamics for a Better Society: The Economics of John Cornwall
Abstract:
John Cornwall devoted his career to advancing macroeconomics with a view
to improving the societies in which we live. We identify three distinct
phases in Cornwall's mature scholarship, and analyse the substance of
each. The first and second phases, devoted to the analysis of growth and
inflation, respectively, reveal the three main cornerstones of Cornwall's
macrodynamics: the importance of demand (even in the long run), the
importance of institutions, and the path-dependent nature of economic
change. The third phase saw Cornwall building on these foundations to
develop and refine an evolutionary-Keynesian model of long-run capitalist
development.
Journal: Review of Political Economy
Pages: 481-498
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510312
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510312
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:481-498
Template-Type: ReDIF-Article 1.0
Author-Name: Philip Arestis
Author-X-Name-First: Philip
Author-X-Name-Last: Arestis
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: What Monetary Policy after the Crisis?
Abstract:
The objective of this paper is to reflect on some of the implications
that recent economic experience has for monetary and financial stability
policies. We contend that the financial crisis and the upsurge in
inflation 2007-08 have shown that the policy model based on the new
consensus in macroeconomics, which largely held sway over the past decade
or more, is broken. It is argued that inflation targeting cannot deliver
low inflation. We argue that fine-tuning through interest rates should not
be attempted, but rather a constant real interest rate target based on the
output growth rate should be adopted. The key objective of monetary policy
should be shifted to financial stability, the independence of central
banks should be brought to an end, and their decision making should be
coordinated with other macroeconomic policy initiatives.
Journal: Review of Political Economy
Pages: 499-515
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510313
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510313
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:499-515
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Fontana
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Fontana
Title: The Return of Keynesian Economics: A Contribution in the Spirit of John Cornwall's Work
Abstract:
This paper assesses the recent interest for Keynesian economics in
academia and policy-making circles. It examines the main features of
Keynesian economics vis-a-vis neoclassical economics, before presenting
the three-equation New Consensus Macroeconomics (NCM) model and its
Keynesian roots. Drawing on the work of John Cornwall, the main conclusion
of the paper is that the most important criticisms of the model are
related to the acceptance of the axiom of independence between aggregate
supply and aggregate demand by proponents of the NCM view.
Journal: Review of Political Economy
Pages: 517-533
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510314
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510314
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:517-533
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Michl
Author-X-Name-First: Thomas
Author-X-Name-Last: Michl
Title: Discounting Nordhaus
Abstract:
This paper evaluates Nordhaus's neoclassical complaints about the Stern
Review from the vantage point of classical growth theory. Nordhaus
criticizes the Stern Review because it uses a discount rate that is well
below the market rate of return on capital. From the perspective of
classical growth theory, Nordhaus's belief in choosing preference
parameters for the social planner based on observed market rates of return
is equivalent to assigning the preferences of the capitalist agents to the
social planner. This equivalence is an implication of the Cambridge
Theorem, which interprets the Ramsey equation as the saving function of
the capitalist agents.
Journal: Review of Political Economy
Pages: 535-549
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510316
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510316
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:535-549
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Lucas Grafl
Author-X-Name-First: Lucas
Author-X-Name-Last: Grafl
Title: Financial Uncertainty and Business Investment
Abstract:
The paper contributes to the empirical analysis of financial uncertainty
and investment from a Post Keynesian perspective. The paper uses the
volatility of the exchange rate, the volatility of the stock market index,
and the real gold price as indicators for financial uncertainty. An
increase in the volatility of a variable is a sufficient, but not a
necessary condition for an increase in uncertainty regarding this
variable. The effects of changes in uncertainty on investment are
investigated econometrically for the United States, the United Kingdom,
the Netherlands, Germany and France. Financial uncertainty, we find, has
significant negative effects in the US and the Netherlands.
Journal: Review of Political Economy
Pages: 551-568
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510317
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510317
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:551-568
Template-Type: ReDIF-Article 1.0
Author-Name: Moritz Cruz
Author-X-Name-First: Moritz
Author-X-Name-Last: Cruz
Author-Name: Peter Kriesler
Author-X-Name-First: Peter
Author-X-Name-Last: Kriesler
Title: International Reserves, Effective Demand and Growth
Abstract:
During the last decade, developing (and some developed) economies have
accumulated large amounts of international reserves, mainly for
precautionary reasons. This phenomenon has been coupled with insufficient
economic growth. The resources being amassed largely overwhelm protective
needs, there is an excess of resources that is being wasted, and which
could be utilised for alternative productive projects, namely to promote
growth. If insufficient aggregate demand can largely explain low growth,
it is clear that this excess of international reserves can be used to
stimulate aggregate demand. This paper argues that the excess of
international reserves represents a potential resource to boost growth.
Journal: Review of Political Economy
Pages: 569-587
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510318
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510318
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:569-587
Template-Type: ReDIF-Article 1.0
Author-Name: Wonik Kim
Author-X-Name-First: Wonik
Author-X-Name-Last: Kim
Title: Does Class Matter? Social Cleavages in South Korea's Electoral Politics in the Era of Neoliberalism
Abstract:
This paper analyzes class voting in South Korea under neoliberalism. The
class voting literature has paid too little attention to cases outside
Europe and North America, while the existing studies on South Korea's
elections and voting patterns have largely ignored the issue of class. The
lack of interest in class voting is due mainly to strong regionalism
prevalent in South Korea's electoral politics. However, the rapid and
profound neoliberalization after the 1997 financial crisis has generated
negative socioeconomic consequences, which may have increased the
importance of a class-based bloc as a salient electoral factor. Using
Goldthorpe's class schema, I test the validity of class voting in South
Korea, employing microlevel survey data of the two recent parliamentary
elections of 2000 and 2004. I pay particular attention to entrenched
conservatism that is historically rooted in South Korea's electoral and
representative systems. I formulate this vital issue in terms of a
possible connection between people's decisions on whether to vote (or for
that matter, nonvoting) and for whom they vote (their vote choice). The
empirical evidence in this paper suggests that people vote according to
their class positions in the context of the swift neoliberal restructuring
in South Korea.
Journal: Review of Political Economy
Pages: 589-616
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510320
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510320
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:589-616
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Tinel
Author-X-Name-First: Bruno
Author-X-Name-Last: Tinel
Title: The Political Economy of Work
Abstract:
Journal: Review of Political Economy
Pages: 617-619
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510322
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510322
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:617-619
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Dalziel
Author-X-Name-First: Paul
Author-X-Name-Last: Dalziel
Title: Regional Monetary Policy
Abstract:
Journal: Review of Political Economy
Pages: 620-622
Issue: 4
Volume: 22
Year: 2010
X-DOI: 10.1080/09538259.2010.510323
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510323
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Handle: RePEc:taf:revpoe:v:22:y:2010:i:4:p:620-622
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Earl
Author-X-Name-First: Peter
Author-X-Name-Last: Earl
Author-Name: Jason Potts
Author-X-Name-First: Jason
Author-X-Name-Last: Potts
Title: A Nobel Prize for Governance and Institutions: Oliver Williamson and Elinor Ostrom
Abstract:
This paper reviews the 2009 Nobel Prize in Economics jointly awarded to
Oliver Williamson for his work on governance in organizations and the
boundaries of the firm, and to Elinor Ostrom for her work on the
governance of common pool resources. We review the careers and the
research contributions of Williamson and Ostrom to the theory and analysis
of economic institutions of governance. Both winners of this Prize for
'economic governance' are thoroughly deserved, yet like the Hayek-Myrdal
Prize of 1974 their respective approaches, methods and findings are almost
diametrically opposed. Williamson offers a top-down contracts-based
solution to the incentive problems of opportunism in corporate governance,
whereas Ostrom offers a bottom-up communication-based solution to the
governance opportunities of community resources. We offer some critical
comments on Williamson's analytic work and discussion of the potential for
further application of Ostrom's case-study based experimental methodology.
We conclude with a suggested third nominee to make better sense of how
these two great scholars' works fit together, namely George Richardson.
Journal: Review of Political Economy
Pages: 1-24
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526291
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526291
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:1-24
Template-Type: ReDIF-Article 1.0
Author-Name: Heinz Kurz
Author-X-Name-First: Heinz
Author-X-Name-Last: Kurz
Title: Who is Going to Kiss Sleeping Beauty? On the 'Classical' Analytical Origins and Perspectives of Input-Output Analysis
Abstract:
The paper argues that input-output analysis existed long before it
received its name and Wassily Leontief made it popular as a tool of
empirical analysis and a foundation of economic policy. It grew out of an
attempt to ascertain the capacity of an economic system to reproduce
itself and generate a surplus that can be used for various purposes.
Primitive pronouncements are encountered in early civilizations, for
example Mesopotamia, in terms of the ratio of the amount of grain produced
and the amount of it used up, directly and indirectly. These ideas
reappeared in a more sophisticated form at the time of the inception of
systematic economic analysis in the 17th and 18th centuries in Europe and
found a two-sector expression in Francois Quesnay's Tableau economique.
The material input-output structure was then considered the core of the
economic system that contained one of the keys to basically all other
important economic phenomena and magnitudes. The way in which the
potentialities embodied in the input-output structure, conceived as a
system of production, have, or have not, been exploited over time define
both the problems and perspectives of contemporary input-output analysis.
Three aspects will be scrutinized more closely: the problem of value
added, the treatment of fixed capital and the problem of technical change.
Happily enough, while the problems are huge, the prospects are
encouraging. There is no fear that input-output analysts will soon have to
look for new fields of research because the old ones have been exhausted.
Journal: Review of Political Economy
Pages: 25-47
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526292
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526292
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:25-47
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Vercelli
Author-X-Name-First: Alessandro
Author-X-Name-Last: Vercelli
Title: A Perspective on Minsky Moments: Revisiting the Core of the Financial Instability Hypothesis
Abstract:
This paper aims to bridge the gap between theory and facts on the
so-called 'Minsky moments' by revisiting the financial instability
hypothesis (FIH). We limit the analysis to the core of the FIH, that is,
to its strictly financial part. The approach suggested here builds on
Minsky's contributions revisited in the light of the subprime mortgage
financial crisis. We start from a constructive criticism of the well-known
Minskyan taxonomy of economic units (hedge, speculative, and Ponzi), and
suggest a different approach that allows a continuous measure of the
units' financial conditions. We use this alternative approach to account
for the cyclical fluctuations of financial conditions that endogenously
generate instability and fragility. We may thus suggest a precise
definition of a Minsky moment as the starting point of a Minsky process,
the phase of a financial cycle when many economic units suffer from both
liquidity and solvency problems. Although the approach sketched here is
very simple and requires extensions in many directions, we may draw from
it a few policy insights on how to mitigate the financial cycle.
Journal: Review of Political Economy
Pages: 49-67
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526293
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526293
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:49-67
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Ramskogler
Author-X-Name-First: Paul
Author-X-Name-Last: Ramskogler
Title: Credit Money, Collateral and the Solvency of Banks: A Post Keynesian Analysis of Credit Market Failures
Abstract:
The discussion on endogenous money has led to a rich understanding of
banking. The determination of creditworthiness though remains a black box
in Post Keynesian economics. After a critique of the New Keynesian banking
literature this paper argues that creditworthiness to a large extent is
endogenous to the monetary economy and the credit system. It is argued
that a solvency multiplier exists that affects the willingness of banks to
grant credit. The multiplier works via the valuation of collateral goods.
It can accelerate the growth but also the contraction of credit and
explains both endogenous financial crises and credit rationing.
Journal: Review of Political Economy
Pages: 69-79
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526294
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526294
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:69-79
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Aspromourgos
Author-X-Name-First: Tony
Author-X-Name-Last: Aspromourgos
Title: Adam Smith and the Division of Labour among the Social Sciences
Abstract:
Adam Smith is one of the great founding figures of modern social science,
in a larger sense than that conveyed by the popular perception of him as
merely the founder of economics or political economy. He was aiming for a
quite comprehensive social science, and while this grand project wasn't
completed, substantial elements of it were. This paper is a reflection on
Smith's conception of the sciences pertaining to human society and its
relation to the modern demarcation of the social sciences. It affirms the
integrity of political economy as a separable but not thereby 'autonomous'
science, in Smith's understanding.
Journal: Review of Political Economy
Pages: 81-94
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526295
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526295
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:81-94
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Rahim
Author-X-Name-First: Eric
Author-X-Name-Last: Rahim
Title: The Concept of Abstract Labour in Adam Smith's System of Thought
Abstract:
This paper draws attention to the fact that in the Wealth of Nations
Smith conceptualises labour as a malleable, adaptable resource, capable of
undertaking whatever may be required of it as the economy evolves over
time. This conception, equivalent to Marx's 'abstract labour', differs
fundamentally from the neoclassical view of the labour force as comprised
of individual agents, each with a given endowment of capabilities. In
Smith's analysis, the flexible character of abstract labour is essential
to allow the progressive extension of division of labour in the course of
economic development. It is also an essential underpinning of Smith's
explanation of how 'natural balance' is maintained within the economy;
this implies an understanding of equilibrium values quite different from
that of the later neoclassical conception. Abstract labour is furthermore
a necessary element of Smith's claim that individual agents, pursuing
their own ends, promote the general interest of society, understood not in
terms of the attainment of an 'optimal', utility-maximising allocation of
given resources, but in terms of the promotion of capital accumulation and
economic development.
Journal: Review of Political Economy
Pages: 95-110
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526296
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526296
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:95-110
Template-Type: ReDIF-Article 1.0
Author-Name: Nuno Martins
Author-X-Name-First: Nuno
Author-X-Name-Last: Martins
Title: The Revival of Classical Political Economy and the Cambridge Tradition: From Scarcity Theory to Surplus Theory
Abstract:
Hilary Putnam and Vivian Walsh argue that Amartya Sen's contribution can,
like the writings of Piero Sraffa, be best interpreted as a revival of
classical political economy, in which Sen brings back into economics a
richer conception of the human agent, and a moral dimension. Sen
criticises the conception of rationality that underpins mainstream
microeconomic theory, and suggests an alternative framework that can
accommodate a variety of motivations, including moral motivations, as will
be argued here. Furthermore, the work of Sen, and other authors of the
Cambridge tradition who also devoted much time to the revival of classical
political economy, are complementary in many respects, and provide the
basic tools for an alternative economic theory, which is centred on the
economic, social and ethical analysis of the production and distribution
of the economic surplus, and not on the modelling of the activity of
optimising agents in a context of scarcity. While the notion of scarcity
is very important for the analysis of poverty and deprivation that Sen
undertakes, the central issue to address, in order to explain the causal
mechanisms behind scarcity, poverty and deprivation, concerns the study of
the production and distribution of the economic surplus.
Journal: Review of Political Economy
Pages: 111-131
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2010.510319
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510319
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:111-131
Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Migheli
Author-X-Name-First: Matteo
Author-X-Name-Last: Migheli
Title: Capabilities and Functionings: The Role of Social Capital for Accessing New Capabilities
Abstract:
This paper connects two relatively recent streams of research in social
science: the capabilities approach and the literature on social capital.
The aim is to show that these are strictly connected in a dynamic process
linking functionings and capabilities through social capital. The ability
to attain new capabilities is enhanced by the possession of social
capital; hence investing in its accumulation allows individuals to improve
their welfare. Furthermore, new capabilities allow the individual to
create new connections and access new networks, accruing his or her stock
of social capital and opening the door to the possibility of attaining new
capabilities. The paper hypothesizes that a dynamic spiral interweaves
social capital, capabilities and functionings.
Journal: Review of Political Economy
Pages: 133-142
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526297
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526297
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:133-142
Template-Type: ReDIF-Article 1.0
Author-Name: Oren Levin-Waldman
Author-X-Name-First: Oren
Author-X-Name-Last: Levin-Waldman
Title: Unjust Deserts: How the Rich are Taking Our Common Inheritance
Abstract:
Journal: Review of Political Economy
Pages: 143-146
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526298
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526298
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:143-146
Template-Type: ReDIF-Article 1.0
Author-Name: Oren Levin-Waldman
Author-X-Name-First: Oren
Author-X-Name-Last: Levin-Waldman
Title: From the Corn Laws to Free Trade: Interests, Ideas and Institutions in Historical Perspective
Abstract:
Journal: Review of Political Economy
Pages: 146-149
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526299
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526299
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:146-149
Template-Type: ReDIF-Article 1.0
Author-Name: Ivo Maes
Author-X-Name-First: Ivo
Author-X-Name-Last: Maes
Title: Euros and Europeans, Monetary Integration and the European Model of Society
Abstract:
Journal: Review of Political Economy
Pages: 149-151
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526300
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526300
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:149-151
Template-Type: ReDIF-Article 1.0
Author-Name: David Dequech
Author-X-Name-First: David
Author-X-Name-Last: Dequech
Title: Conflict and Cooperation: Institutional and Behavioral Economics
Abstract:
Journal: Review of Political Economy
Pages: 152-153
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526301
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526301
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:152-153
Template-Type: ReDIF-Article 1.0
Author-Name: Tung-Yi Kho
Author-X-Name-First: Tung-Yi
Author-X-Name-Last: Kho
Title: Capital Flight and Capital Controls in Developing Countries
Abstract:
Journal: Review of Political Economy
Pages: 154-156
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526302
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526302
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:154-156
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Rogers
Author-X-Name-First: Robert
Author-X-Name-Last: Rogers
Title: Competition Policy: Theory and Practice
Abstract:
Journal: Review of Political Economy
Pages: 156-158
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526303
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526303
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:156-158
Template-Type: ReDIF-Article 1.0
Author-Name: Lina Ochoa
Author-X-Name-First: Lina
Author-X-Name-Last: Ochoa
Title: Economics in Real Time. A Theoretical Reconstruction
Abstract:
Journal: Review of Political Economy
Pages: 158-159
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.526309
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.526309
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:158-159
Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Reati
Author-X-Name-First: Angelo
Author-X-Name-Last: Reati
Title: A Handbook of Alternative Monetary Economics
Abstract:
Journal: Review of Political Economy
Pages: 160-166
Issue: 1
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2010.510321
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2010.510321
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:1:p:160-166
Template-Type: ReDIF-Article 1.0
Author-Name: Scott Carter
Author-X-Name-First: Scott
Author-X-Name-Last: Carter
Title: C.E. Ferguson and the Neoclassical Theory of Capital: A Matter of Faith
Abstract:
In 1969 the American neoclassical economist C.E. Ferguson wrote that
reliance on neoclassical aggregate production and distribution theory is a
'matter of faith' to be sorted out (he says 'answered') by
econometricians. Ferguson was criticized on both sides of the debate for
invoking this religious metaphor. Using the methodological framework of
A.J. Cohen & G.C. Harcourt (2005), Introduction: capital theory
controversy: scarcity, production, equilibrium, and time, in: A. Cohen,
G.C. Harcourt & C. Bliss (Eds) Capital Theory, 3 Vols. Northampton, MA:
Edward Elgar, this paper argues that faith plays a recurring role in all
capital controversies and especially in modern theories of growth that
rely wholesale on the aggregate production function. Ferguson's faith
proves to be much more insightful than previously recognized.
Journal: Review of Political Economy
Pages: 339-356
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583818
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583818
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:339-356
Template-Type: ReDIF-Article 1.0
Author-Name: Richard Holt
Author-X-Name-First: Richard
Author-X-Name-Last: Holt
Author-Name: J. Barkley Rosser
Author-X-Name-First: J. Barkley
Author-X-Name-Last: Rosser
Author-Name: David Colander
Author-X-Name-First: David
Author-X-Name-Last: Colander
Title: The Complexity Era in Economics
Abstract:
This article argues that the neoclassical era in economics has ended and
is being replaced by a new era. What best characterizes the new era is its
acceptance that the economy is complex, and thus that it might be called
the complexity era. The complexity era has not arrived through a
revolution. Instead, it has evolved out of the many strains of
neoclassical work, along with work done by less orthodox mainstream and
heterodox economists. It is only in its beginning stages. The article
discusses the work that is forming the foundation of the complexity era,
and how that work will likely change the way in which we understand
economic phenomena and the economics profession.
Journal: Review of Political Economy
Pages: 357-369
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583820
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583820
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:357-369
Template-Type: ReDIF-Article 1.0
Author-Name: Eleonora Sanfilippo
Author-X-Name-First: Eleonora
Author-X-Name-Last: Sanfilippo
Title: The Short Period and the Long Period in Macroeconomics: An Awkward Distinction
Abstract:
The aim of this paper is to show that the meaning of the well-known
concepts of short period and long period is often unclear and may be
seriously misleading when applied to macroeconomic analysis. Evidence of
this confusion emerges through reappraisal of the interpretative debate of
the 1980s and 1990s, which aimed to establish whether Keynes's General
Theory should be considered a short- or long-period analysis of the
aggregate level of production. Further evidence is provided by the
ambiguous use that seems to be made of this distinction in macroeconomics
textbooks, as will be shown in the paper. Having explored some possible
explanations for the difficulties in defining and applying these
methodological tools at a 'macro' level, the conclusion is drawn that it
would be preferable to abandon this terminology in classifying different
aggregate models and simply to make explicit the given factors and the
independent and dependent variables in each model, exactly as Keynes did
in Chapter 18 of his major work.
Journal: Review of Political Economy
Pages: 371-388
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583821
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583821
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:371-388
Template-Type: ReDIF-Article 1.0
Author-Name: Harry Bloch
Author-X-Name-First: Harry
Author-X-Name-Last: Bloch
Author-Name: Jerry Courvisanos
Author-X-Name-First: Jerry
Author-X-Name-Last: Courvisanos
Author-Name: Maria Mangano
Author-X-Name-First: Maria
Author-X-Name-Last: Mangano
Title: The Impact of Technical Change and Profit on Investment in Australian Manufacturing
Abstract:
This paper combines W.E.G. Salter's analysis of capital-embodied
technical change with Kalecki's analysis of financing investment from
retained profits to provide a Post Keynesian model of investment with
process innovation, which is applied to data from Australian manufacturing
industries. The approach to process innovation taken in this study is to
identify new capital stock introduced through physical investment, which
results in the older vintage stock being decommissioned as technologically
obsolete. In the estimated model, the profit factor is used as a measure
of the ability to invest, and the rate of labour productivity growth
factor reveals the inducement to invest as this rate acts as a proxy for
technical change in the Kaleckian investment-ordering model. The two
factors combine to explain the accumulation process, both level and
variability, and its link to technical change. In conclusion, this paper
demonstrates that investment, incorporating technical change, enables
industries to become sustainable into the uncertain future with varying
states of investment instability. …technical progress cannot be
regarded as automatic and independent of accumulation. (Salter, 1966, p.
72)
Journal: Review of Political Economy
Pages: 389-408
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583827
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583827
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:389-408
Template-Type: ReDIF-Article 1.0
Author-Name: Dan Wheatley
Author-X-Name-First: Dan
Author-X-Name-Last: Wheatley
Author-Name: Irene Hardill
Author-X-Name-First: Irene
Author-X-Name-Last: Hardill
Author-Name: Bruce Philp
Author-X-Name-First: Bruce
Author-X-Name-Last: Philp
Title: 'Managing' Reductions in Working Hours: A Study of Work-time and Leisure Preferences in UK Industry
Abstract:
This paper, which is predicated on the view that reductions in work-time
are generally desirable, explores the working hours of managers and
professionals in UK industry. Managers and professionals are often grouped
together in empirical and theoretical work, e.g. in the literature on the
professional-managerial class, and Goldthorpe's 'Service Class'.
Nevertheless, there are differences: professionals, historically, are
autonomous workers; the role of managers, in contrast, is to extract work
from others on behalf of the organisation. Using data collected from the
2005 Labour Force Survey we establish there are statistically significant
empirical differences between managers and professionals; one of these
differences is in attitudes to work-time. We theorise that this is because
managers' roles align their attitudes with those desired by the firm or
organisation, and we conclude that, as a consequence, the 'voluntary'
nature of work-time regulation should be revisited.
Journal: Review of Political Economy
Pages: 409-420
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583832
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583832
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:409-420
Template-Type: ReDIF-Article 1.0
Author-Name: Stavros Mavroudeas
Author-X-Name-First: Stavros
Author-X-Name-Last: Mavroudeas
Author-Name: Alexis Ioannides
Author-X-Name-First: Alexis
Author-X-Name-Last: Ioannides
Title: Duration, Intensity and Productivity of Labour and the Distinction between Absolute and Relative Surplus-value
Abstract:
Marx recognized two distinct but also interrelated processes of
increasing surplus-value extraction: absolute and relative surplus-value.
Both these processes hinge upon the duration, the intensity and the
productivity of labour, albeit in different ways. The increase of the
duration of labour is indisputably related to absolute surplus-value and
the increase of labour productivity to relative surplus-value. However,
there is controversy regarding the position of the intensity of labour.
Marx's argument that it belongs to relative surplus-value is disputed by
many Marxists. This paper argues that Marx's thesis is correct because the
intensification of labour and the increase of its duration are ultimately
two opposing trends and thus should not be coupled in the same concept.
Journal: Review of Political Economy
Pages: 421-437
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583833
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583833
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:421-437
Template-Type: ReDIF-Article 1.0
Author-Name: Angelos Vouldis
Author-X-Name-First: Angelos
Author-X-Name-Last: Vouldis
Author-Name: Panayotis Michaelides
Author-X-Name-First: Panayotis
Author-X-Name-Last: Michaelides
Author-Name: John Milios
Author-X-Name-First: John
Author-X-Name-Last: Milios
Title: Emil Lederer and the Schumpeter-Hilferding-Tugan-Baranowsky Nexus
Abstract:
This paper focuses on the thinking of Emil Lederer, one of the leading
academic socialists of Germany in the 1920s. Lederer's views on economic
development, technical change, credit and business cycles are compared to
those of Schumpeter. The paper traces the roots of some of their ideas
back to the work of two prominent Marxists, Rudolf Hilferding and Mikhail
Ivanovich Tugan-Baranowsky. The paper concludes that although Lederer and
Schumpeter are traditionally classified in different schools of thought,
their theoretical views on many issues converge.
Journal: Review of Political Economy
Pages: 439-460
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583835
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583835
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:439-460
Template-Type: ReDIF-Article 1.0
Author-Name: S. A. Drakopoulos
Author-X-Name-First: S. A.
Author-X-Name-Last: Drakopoulos
Title: Wicksteed, Robbins and the Emergence of Mainstream Economic Methodology
Abstract:
Phillip Wicksteed's ideas played an important role in the history of
economic methodology, first, because his views represent the starting
point of the deliberate attempt to expel hedonism from marginalist
economic analysis, and secondly because his ideas influenced his prominent
disciple Lionel Robbins. The current mainstream view of an allegedly
value-free economic science can be traced to Robbins. The paper examines
Wicksteed's conception of economic science and the role of hedonism. His
views on the nature and the role of economic man, and his analysis of
egoism and of altruistic behaviour are also discussed. The paper assesses
Wicksteed's influence, via Robbins, on the formation of mainstream
methodological views.
Journal: Review of Political Economy
Pages: 461-470
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583837
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583837
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:461-470
Template-Type: ReDIF-Article 1.0
Author-Name: Gene Callahan
Author-X-Name-First: Gene
Author-X-Name-Last: Callahan
Title: The Invisible Hook: The Hidden Economics of Pirates
Abstract:
Journal: Review of Political Economy
Pages: 471-474
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583838
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583838
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:471-474
Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Forges Davanzati
Author-X-Name-First: Guglielmo Forges
Author-X-Name-Last: Davanzati
Title: Capitalists, Workers and Fiscal Policy. A Classical Model of Growth and Distribution
Abstract:
Journal: Review of Political Economy
Pages: 474-476
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583839
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583839
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:474-476
Template-Type: ReDIF-Article 1.0
Author-Name: M. G. Hayes
Author-X-Name-First: M. G.
Author-X-Name-Last: Hayes
Title: Money, Investment and Consumption: Keynes's Macroeconomics Rethought
Abstract:
Journal: Review of Political Economy
Pages: 476-478
Issue: 3
Volume: 23
Year: 2011
X-DOI: 10.1080/09538259.2011.583840
File-URL: http://www.tandfonline.com/doi/abs/10.1080/09538259.2011.583840
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:3:p:476-478
Template-Type: ReDIF-Article 1.0
Author-Name: G. C. Harcourt
Author-X-Name-First: G. C.
Author-X-Name-Last: Harcourt
Author-Name: Peter Kriesler
Author-X-Name-First: Peter
Author-X-Name-Last: Kriesler
Title: The Enduring Importance of The General Theory
Abstract:
This paper examines some features of The General Theory
that remain relevant 75 years after its publication. Keynes showed that
even in a competitive economy with perfectly flexible prices, wages and
interest rates, market prices could not guarantee full employment and that
the achievement of full employment would only be a fluke. In other words,
he showed that there was no natural mechanism to drive the economy to full
employment, and that the level of employment was determined by effective
demand rather than by the wage rate. He demonstrated this by using a
method that stressed the relationship between cause and effect in
determining key variables and relations in the economy. Keynes
demonstrated that monetary variables affected real variables, and real
variables affected monetary ones, in both the short run and long run. This
can be contrasted with mainstream theory, where the long-run neutrality of
money remains a key result. The paper proposes a rehabilitation of
Keynes's analysis of the supply and demand for money—away from its
original role in explaining domestic monetary influences and towards
providing an analysis of supply and demand for international money.
Journal: Review of Political Economy
Pages: 503-519
Issue: 4
Volume: 23
Year: 2011
Month: 10
X-DOI: 10.1080/09538259.2011.611616
File-URL: http://hdl.handle.net/10.1080/09538259.2011.611616
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:4:p:503-519
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Docherty
Author-X-Name-First: Peter
Author-X-Name-Last: Docherty
Title: Keynes's Analysis of Economic Crises and Monetary Policy in the General Theory: Its Relevance after 75 Years
Abstract:
This paper argues that Keynes's treatment of economic fluctuations and
monetary policy in the General Theory is still relevant
after 75 years. His treatment of severe economic crises provides
considerable insight into the possibility of crises emanating from
financial markets, and for understanding how financial disturbances may
have real economic effects. Keynes's insights into the potential
limitations of using monetary policy to deal with periods of crisis and
how these limitations may be addressed are also shown to be relevant to
the recent global financial crisis. The paper also argues that the
General Theory has insights to offer on the use of Taylor
rules and on the possibility of addressing persistent unemployment.
Journal: Review of Political Economy
Pages: 521-535
Issue: 4
Volume: 23
Year: 2011
Month: 10
X-DOI: 10.1080/09538259.2011.611617
File-URL: http://hdl.handle.net/10.1080/09538259.2011.611617
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:4:p:521-535
Template-Type: ReDIF-Article 1.0
Author-Name: Attilio Trezzini
Author-X-Name-First: Attilio
Author-X-Name-Last: Trezzini
Title: The Irreversibility of Consumption as a Source of Endogenous Demand-driven Economic Growth
Abstract:
In advanced capitalist economies, the asymmetry of aggregate consumption,
which decreases to a lesser extent during recessions than it increases
during expansions, implies an endogenous source of growth and
accumulation. This thesis, put forward in a previous paper co-authored
with Pierangelo Garegnani, is here scrutinized in detail and developed in
terms of more general assumptions. The connection with similar assumptions
on consumption to be found in the literature is also examined and some
implications of the hypothesis are drawn regarding the significance of the
savings rate.
Journal: Review of Political Economy
Pages: 537-556
Issue: 4
Volume: 23
Year: 2011
Month: 10
X-DOI: 10.1080/09538259.2011.611621
File-URL: http://hdl.handle.net/10.1080/09538259.2011.611621
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:4:p:537-556
Template-Type: ReDIF-Article 1.0
Author-Name: Rosaria Rita Canale
Author-X-Name-First: Rosaria Rita
Author-X-Name-Last: Canale
Title: Alternative Strategies for Monetary Policy
Abstract:
The aim of the paper is to emphasize the importance of the central bank's
alternative strategies for macroeconomic equilibrium. Using a constrained
maximization process founded on a behavioural equation, we underscore the
relevance, for monetary policy, of the assumptions adopted by policymakers
regarding how the economic system works. In particular, under a flexible
exchange rate regime, the relevant hypotheses are those concerning the
supply curve. Under a fixed exchange rate regime the relevant assumptions
are those related to the maintenance of the currency agreements and to the
internal sustainability of an interest rate setting policy. We demonstrate
that these hypotheses define the objective pursued and the strategy
followed. Furthermore, if they do not coincide with the actual
characteristics of the market, the adjustment dynamics of aggregate income
and inflation do not allow convergence toward equilibrium. We use the
tools of New Consensus Macroeconomics to discuss the implications of the
model and to offer an enhanced analytical framework for teaching
intermediate macroeconomics without necessarily adopting the mainstream
hypotheses.
Journal: Review of Political Economy
Pages: 557-571
Issue: 4
Volume: 23
Year: 2011
Month: 10
X-DOI: 10.1080/09538259.2011.611622
File-URL: http://hdl.handle.net/10.1080/09538259.2011.611622
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:4:p:557-571
Template-Type: ReDIF-Article 1.0
Author-Name: Giuseppe Eusepi
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Eusepi
Author-Name: Richard E. Wagner
Author-X-Name-First: Richard E.
Author-X-Name-Last: Wagner
Title: States as Ecologies of Political Enterprises
Abstract:
This paper seeks to overcome an antinomy within the theory of political
economy: while market outcomes are treated as resulting from polycentric
competition, political outcomes are treated as resulting from hierarchic
planning. We seek to overcome this antinomy by treating political outcomes
as likewise resulting from polycentric competition, taking due account of
relevant institutional differences. For example, a parliamentary assembly
is treated as an extra-ordinary form of investment bank that intermediates
between the sponsors of enterprises and those within the citizenry who
have means to support those enterprises. What results is a theory in which
political programs emerge in largely bottom-up fashion through complex
networks of transactions. Much of the inspiration for this paper arises
from the Italian School of Public Finance, particularly Mazzola,
Montemartini, Pantaleoni and de Viti de Marco.
Journal: Review of Political Economy
Pages: 573-585
Issue: 4
Volume: 23
Year: 2011
Month: 10
X-DOI: 10.1080/09538259.2011.611623
File-URL: http://hdl.handle.net/10.1080/09538259.2011.611623
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:4:p:573-585
Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Fiori
Author-X-Name-First: Stefano
Author-X-Name-Last: Fiori
Title: Forms of Bounded Rationality: The Reception and Redefinition of Herbert A. Simon's Perspective
Abstract:
First, the paper seeks to show that Herbert Simon's notion of bounded
rationality should be interpreted in light of its connection with
artificial intelligence. Second, offering four paradigmatic examples, the
article presents the view that recent approaches that draw upon Simon's
heterodox theory only partially accept the teachings of their inspirer,
splitting bounded rationality from the context of artificial intelligence,
and replacing it with different analytical tools that help give new
configurations to bounded rationality. The thesis is that these events can
be interpreted as an implicit (and ideal) challenge for redefining what
bounded rationality is.
Journal: Review of Political Economy
Pages: 587-612
Issue: 4
Volume: 23
Year: 2011
Month: 10
X-DOI: 10.1080/09538259.2011.611624
File-URL: http://hdl.handle.net/10.1080/09538259.2011.611624
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:4:p:587-612
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Title: Aggregate Demand and Aggregate Supply: Will the Real Keynes Please Stand Up?
Abstract:
Two recent articles in this journal present conflicting interpretations
of the Aggregate Demand/Aggregate Supply (D/Z) model contained in Chapter
3 of Keynes's General Theory. This paper evaluates the
two interpretations to determine which aligns more closely with Keynes's
own views.
Journal: Review of Political Economy
Pages: 613-618
Issue: 4
Volume: 23
Year: 2011
Month: 10
X-DOI: 10.1080/09538259.2011.611626
File-URL: http://hdl.handle.net/10.1080/09538259.2011.611626
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:4:p:613-618
Template-Type: ReDIF-Article 1.0
Author-Name: Terry Peach
Author-X-Name-First: Terry
Author-X-Name-Last: Peach
Title: Elgar Companion to Adam Smith
Journal: Review of Political Economy
Pages: 619-623
Issue: 4
Volume: 23
Year: 2011
Month: 10
X-DOI: 10.1080/09538259.2011.611632
File-URL: http://hdl.handle.net/10.1080/09538259.2011.611632
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:4:p:619-623
Template-Type: ReDIF-Article 1.0
Author-Name: Cameron M. Weber
Author-X-Name-First: Cameron M.
Author-X-Name-Last: Weber
Title: The Collected Works of F.A. Hayek, Vol. 12: The Pure Theory of Capital
Journal: Review of Political Economy
Pages: 623-626
Issue: 4
Volume: 23
Year: 2011
Month: 10
X-DOI: 10.1080/09538259.2011.611633
File-URL: http://hdl.handle.net/10.1080/09538259.2011.611633
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:4:p:623-626
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Flaschel
Author-X-Name-First: Peter
Author-X-Name-Last: Flaschel
Author-Name: Alfred Greiner
Author-X-Name-First: Alfred
Author-X-Name-Last: Greiner
Author-Name: Sigrid Luchtenberg
Author-X-Name-First: Sigrid
Author-X-Name-Last: Luchtenberg
Title: Labor Market Institutions and the Role of Elites in Flexicurity Societies
Abstract:
The paper argues that a process of capital accumulation exhibiting
recurrent mass unemployment—due to the conflict over income
distribution—does not represent a process that is adequate for a
democratic society in the long run. The paper develops a basic
macrodynamic framework where this process of cyclical growth is overcome
by an ‘employer of first resort’ (an entity that provides
employment security but not job security), added to an economic
reproduction process that is highly competitive (flexible). Such a
flexicurity system is characterized by high labor and capital mobility,
with fluctuations of employment in the private sector made socially
acceptable through a second labor market where all remaining workers are
able to find meaningful occupation and sufficient income. We study on this
basis a disaggregation of the labor market into skilled and high-skilled
labor, as well as professional and political elites. The stability and
sustainability propositions of the homogeneous labor case generalize to
this extended situation.
Journal: Review of Political Economy
Pages: 103-129
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636605
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:103-129
Template-Type: ReDIF-Article 1.0
Author-Name: David George
Author-X-Name-First: David
Author-X-Name-Last: George
Title: Is it Time to Bury Dead-Weight Loss?
Abstract:
The conventional argument to explain how taxes distort points out that
the relative mix of private goods is altered by taxes. This argument
breaks down, however, when it is recognized that a lump-sum alters the
relative mix of goods as long as goods differ their income elasticities.
This paper argues that claims of tax distortion rest on the assumption
that collective decisions to alter consumption do not alter marginal
benefits while private decisions to alter consumption do, and that this
assumption is problematic. The view of government as an external,
nondemocratic force is best understood as an outcome of the pre-democratic
roots of economic thinking as well as the skeptical public-choice view of
government as comprising self-interested actors.
Journal: Review of Political Economy
Pages: 1-13
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636595
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636595
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Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Ravagnani
Author-X-Name-First: Fabio
Author-X-Name-Last: Ravagnani
Title: The Classical Theory of Normal Prices and the Analysis of Economic Changes: A Comment
Abstract:
This paper examines the critical remarks that D'Orlando (2005) addresses
to the classical theory of value based on ‘normal’
positions, and briefly comments on the alternative dynamic analysis of
short-run prices that he recommends. The first part refutes D'Orlando's
considerations about the method traditionally adopted in classical
analysis and discusses the claim that the characteristic structure of
classical theory prevents consistent determination of the normal prices.
The second part moves on to consider the basic elements of D'Orlando's
proposed short-period analysis and argues that they are problematic on
both theoretical and methodological grounds.
Journal: Review of Political Economy
Pages: 131-143
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636609
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636609
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:131-143
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio D'Orlando
Author-X-Name-First: Fabio
Author-X-Name-Last: D'Orlando
Title: Reply to Ravagnani
Journal: Review of Political Economy
Pages: 145-150
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636604
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636604
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:145-150
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Ravagnani
Author-X-Name-First: Fabio
Author-X-Name-Last: Ravagnani
Title: Rejoinder
Journal: Review of Political Economy
Pages: 151-155
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636610
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636610
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:151-155
Template-Type: ReDIF-Article 1.0
Author-Name: Lorenzo Garbo
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Garbo
Title: Early Evolution of the Assumption of Non-satiation
Abstract:
The paper explores the mostly tacit transmission of the assumption of
non-satiation from the outset of classical political economy to the advent
of marginal analysis in Great Britain. The evolution of the assumption is
traced back to contributions to the philosophy of mind in the early
British enlightenment, which provided scientific ground not only to the
economic agent's insatiable nature but also to a delusional dynamic of
association that challenges the causality between acquisitiveness and
pleasure. The paper claims that, because there is evidence that such
delusional aspect was known to the early political economists, the
assumption of non-satiation might have become a mainstay in economics not
only for its scientific status but also as a result of a strategic choice
that can only be explained within the political, cultural, and social
context in which it was made. Had this been the case, the exportability of
the assumption through time and space must be further questioned. The
consistent inclusion of non-satiation in economic theories, policies, and
institutions may have had extraordinary consequences, and may have
nurtured rational behaviors that in fact fulfill the assumption itself.
Journal: Review of Political Economy
Pages: 15-32
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.617595
File-URL: http://hdl.handle.net/10.1080/09538259.2011.617595
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Template-Type: ReDIF-Article 1.0
Author-Name: G. C. Harcourt
Author-X-Name-First: G. C.
Author-X-Name-Last: Harcourt
Title: Keynes on Monetary Policy, Finance and Uncertainty. Liquidity Preference Theory and the Global Financial Crisis
Journal: Review of Political Economy
Pages: 157-161
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636597
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636597
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:157-161
Template-Type: ReDIF-Article 1.0
Author-Name: Spencer J. Pack
Author-X-Name-First: Spencer J.
Author-X-Name-Last: Pack
Title: A History of Heterodox Economics: Challenging the Mainstream in the Twentieth Century
Journal: Review of Political Economy
Pages: 161-164
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636600
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636600
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:161-164
Template-Type: ReDIF-Article 1.0
Author-Name: Robert E. Prasch
Author-X-Name-First: Robert E.
Author-X-Name-Last: Prasch
Title: Kalecki's Principle of Increasing Risk and Keynesian Economics
Journal: Review of Political Economy
Pages: 164-166
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636601
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636601
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:164-166
Template-Type: ReDIF-Article 1.0
Author-Name: Johann K. Jaeckel
Author-X-Name-First: Johann K.
Author-X-Name-Last: Jaeckel
Title: Zombie Economics: How Dead Ideas Still Walk Among Us
Journal: Review of Political Economy
Pages: 167-171
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636598
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636598
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:167-171
Template-Type: ReDIF-Article 1.0
Author-Name: Feridun Yılmaz
Author-X-Name-First: Feridun
Author-X-Name-Last: Yılmaz
Title: Thorstein Veblen and the Revival of Free Market Capitalism
Journal: Review of Political Economy
Pages: 171-173
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636602
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636602
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:171-173
Template-Type: ReDIF-Article 1.0
Author-Name: Scott L.B. McConnell
Author-X-Name-First: Scott L.B.
Author-X-Name-Last: McConnell
Title: Post Keynesian and Ecological Economics: Confronting Environmental Issues
Journal: Review of Political Economy
Pages: 174-177
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636599
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636599
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:174-177
Template-Type: ReDIF-Article 1.0
Author-Name: Brian D'Agostino
Author-X-Name-First: Brian
Author-X-Name-Last: D'Agostino
Title: Economics for the Rest of Us: Debunking the Science that Makes Life Dismal
Journal: Review of Political Economy
Pages: 178-181
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636596
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636596
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:178-181
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Gualerzi
Author-X-Name-First: Davide
Author-X-Name-Last: Gualerzi
Title: Towards a Theory of the Consumption--Growth Relationship
Abstract:
This paper is a contribution to the analysis of the growth process within
industrial market economies. It examines the connection between growth and
the composition of demand, in particular the consumption--growth
relationship. The focus is not on the trade-off between consumption and
growth but on the positive feedback between them which, via changes in the
composition of demand, shifts the constraint along which the trade-off
operates. The starting point of the theory of the Consumption-Growth
relationship put forward here is the early Keynesian growth theory which
sought to extend the principle of effective demand to the long-run. We
attempt to establish a systemic link between the transformation of
consumption patterns and the principle of effective demand, thus
contributing to a long-run theory of effective demand. Imbedded in the
relationship is a process that accounts for structural transformation and
the pattern of economic growth. The process of new market formation is
especially relevant for this relationship. That process is at the center
of a theoretical framework that aims to explain actual dynamics of an
industrial market economy. The framework presented here therefore
represents both a departure from the aims of Pasinetti's natural dynamics,
and a development of his work.
Journal: Review of Political Economy
Pages: 33-50
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636607
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636607
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Template-Type: ReDIF-Article 1.0
Author-Name: Roy H. Grieve
Author-X-Name-First: Roy H.
Author-X-Name-Last: Grieve
Title: Keynes, Sraffa and the Emergence of the General Theory
Abstract:
This paper considers the question of whether Sraffa had any significant
influence on Keynes's thinking in the period of preparation of The
General Theory. Questioning the negative view expressed by
Pasinetti (2007), we suggest there is a strong possibility that Sraffa, in
introducing the idea that there exist as many ‘natural’
rates of interest as there are commodities that can be lent or borrowed,
was instrumental in pointing Keynes to a way of escape from the
traditional ‘productivity and thrift’ conception of the rate
of interest; this new line of thought Keynes developed into the liquidity
preference explanation of interest on money.
Journal: Review of Political Economy
Pages: 51-67
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636606
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636606
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:51-67
Template-Type: ReDIF-Article 1.0
Author-Name: Theodore T. Koutsobinas
Author-X-Name-First: Theodore T.
Author-X-Name-Last: Koutsobinas
Title: Portfolio Allocation, Liquidity-Preference and the q Ratio: A Reassessment of the Contributions of Tobin and Kahn
Abstract:
This paper compares the implications of Tobin's q theory and Kahn's
Post-Keynesian monetary analysis for monetary policy formulation. In
recent years, monetary policy formation has taken account of expected
market evaluations of equity as well as the effect of long-term government
bonds. These evaluations are suggestive of Tobin's q theory as well as
Kahn's monetary theory. In contrast to the disparity of views between
Keynes and Hicks in 1937, the analysis conducted by Kahn and Tobin in the
1950s and 1960s was set in a multi-asset portfolio context that exhibited
a broader disagreement with regard to the influence of liquidity
preference. Thus, although q is an important variable in Tobin's analysis,
Kahn's introduction of the influence of liquidity premia of various assets
in asset demand and the effect of portfolio flows in response to changes
in relative liquidity preference across assets undermines the usefulness
of this ratio. The implications of Kahn's monetary theory are developed in
an analysis that presents them in terms of a comparable ratio to q. We
find that there are circumstances in which the adjustment of monetary
yields across assets and the underlying expectations reveal important
information for the formation of monetary policy. In addition, the term
structure of interest rates can convey substantial information when it
deviates from historical averages and it should be considered separately
from the q ratio. Moreover, if the assumptions associated with a monetary
theory of interest and production are retained, the q ratio does not need
to converge to unity in the long run.
Journal: Review of Political Economy
Pages: 69-86
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636608
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636608
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:69-86
Template-Type: ReDIF-Article 1.0
Author-Name: Fidel Aroche
Author-X-Name-First: Fidel
Author-X-Name-Last: Aroche
Author-Name: Marco Antonio Marquez
Author-X-Name-First: Marco Antonio
Author-X-Name-Last: Marquez
Title: Structural Integration, Exports and Growth in Mexico: An Input--Output Approach
Abstract:
In Input--Output analysis, the term ‘important
coefficients’ refers to direct intersectoral connections, behind
which lie substantial indirect connections, such that a small change in
one of those coefficients would have a large impact on the output of a
related sector. This paper employs important coefficients as indicators of
the level of integration between the industries in an economic structure.
An economic structure is defined as a set of interdependent sectors linked
by a set of intermediate demand flows. Such flows define the character of
the aforementioned structure. It is hypothesized that changes in the level
of integration affect the ability an economy has to provide welfare
opportunities to its population. The paper also shows that a reduction in
the degree of integration of an economy weakens its ability to achieve
steady growth, because of the loss of the propagating effects of an
expanding demand, even if exports expand at high rates. This might explain
the disappointing performance of the Mexican economy in regard to these
issues even after structural reforms have been adopted and exports growth
has become a central component of the development strategy.
Journal: Review of Political Economy
Pages: 87-101
Issue: 1
Volume: 24
Year: 2012
Month: 1
X-DOI: 10.1080/09538259.2011.636603
File-URL: http://hdl.handle.net/10.1080/09538259.2011.636603
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:1:p:87-101
Template-Type: ReDIF-Article 1.0
Author-Name: Ramaa Vasudevan
Author-X-Name-First: Ramaa
Author-X-Name-Last: Vasudevan
Title: Terms of Trade, Competitive Advantage, and Trade Patterns
Abstract:
This paper investigates the competitive determination of the pattern of
trade, seen as a choice of technique problem within a two-country,
two-commodity, circulating capital model. It seeks to re-examine the
analytical premises of the principle of comparative advantage. The
establishment of competitive advantage is addressed in a Sraffian
framework that allows the integration of the choice of technique problem
to issues of growth and distribution. The focus is on exploring the
validity of this principle when capital is internationally
immobile—the context in which the principle was first postulated.
Capital immobility imparts a degree freedom to the model. Closing the
model and establishing a trade outcome on the basis of the principle of
comparative advantage depends on the specification of appropriate boundary
conditions. These boundary conditions boil down to some specification of
relative scales of the trading partners and the scope for complete
specialization and mutually beneficial gains from trade is circumscribed.
Journal: Review of Political Economy
Pages: 183-202
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664324
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664324
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:183-202
Template-Type: ReDIF-Article 1.0
Author-Name: Alberto Botta
Author-X-Name-First: Alberto
Author-X-Name-Last: Botta
Author-Name: Gianni Vaggi
Author-X-Name-First: Gianni
Author-X-Name-Last: Vaggi
Title: A Post-Keynesian Model of the Palestinian Economy: The Economics of an Investment-Constrained Economy
Abstract:
The 60-year-old Israeli-Palestinian conflict has deeply influenced the
evolution of the Palestinian economy. In the last two decades political
instability and the Israeli closure policy have generated protracted
economic stagnation and poor capital formation. The paper describes the
consequences on the Palestinian economy of existing high transaction costs
and market fragmentation. We propose a simple one-sector Post-Keynesian
model that describes Palestine as a demand-driven economy. We show that
high transaction costs and market fragmentation discourage investment by
curtailing expected profitability, reducing the size of the market and
depressing entrepreneurs' animal spirits. In the short run, these two
factors induce low levels of capacity utilization and low rates of capital
accumulation. The situation is even more worrying in the long run when
entrepreneurs can revise their expectations. Depressed animal spirits and
low levels of capacity use give rise to a low-growth trap from which
Palestine can hardly escape. We also highlight the possible positive
impact of the removal of high transaction costs and of market
fragmentation, and the ensuing beneficial effects on the long-run
equilibrium values of capital accumulation and capacity use. The
conclusions place these analytical results into the historical situation
of the Palestinian economy, and consider what is needed, politically and
economically, in order to establish a sustained development process.
The division of labour is
limited by the extent of the market. (Adam Smith, Wealth
of Nations, Book I, chapter III)
Journal: Review of Political Economy
Pages: 203-226
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664332
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664332
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:203-226
Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Veronica Gabor
Author-X-Name-First: Daniela Veronica
Author-X-Name-Last: Gabor
Title: The Road to Financialization in Central and Eastern Europe: The Early Policies and Politics of Stabilizing Transition
Abstract:
Narratives of macroeconomic stabilization played an important part in the
financialization of the formerly planned economies. The excess demand
narrative, one of the least contested ‘problems’ of
post-socialist transformation, shaped central banks' liquidity policies
and thus translated the priorities of financialized capitalism into policy
goals and practices. The paper challenges the boundaries of the debates on
post-socialist economic developments, contextualizes the representation of
the stabilization ‘problem’ in those debates and
reinterprets them from the standpoint of financialization. If the excess
demand narrative is treated as a contested account of the stabilization
‘imperative’, its role as catalyst for the financialization
of the banking sector and the shift to impatient finance becomes apparent.
An alternative approach to stabilization is further outlined, drawing on
institutionalist conceptualizations of the role of money in capitalist
production.
Journal: Review of Political Economy
Pages: 227-249
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664333
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664333
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:227-249
Template-Type: ReDIF-Article 1.0
Author-Name: Özlem Onaran
Author-X-Name-First: Özlem
Author-X-Name-Last: Onaran
Title: The Effect of Foreign Affiliate Employment on Wages, Employment, and the Wage Share in Austria
Abstract:
This paper estimates the effects of outward Foreign Direct Investment
(employment in affiliates abroad) on employment, wages and the wage share
in Austria using panel data for the period 1996--2005. There is evidence
of significant negative effects of FDI on both employment and wages, and
consequently on the wage share. The results are not limited to workers in
low-skilled sectors. The negative employment effect is mainly due to the
rise in employment in the foreign affiliates in Eastern Europe. The
negative wage effects originate from affiliate employment in both Eastern
Europe and the developed countries in the industrial sector, but FDI in
Eastern Europe has positive wage effects in the services sector due to
possible scope effects.
Journal: Review of Political Economy
Pages: 251-271
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664335
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664335
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:251-271
Template-Type: ReDIF-Article 1.0
Author-Name: Alejandro Agafonow
Author-X-Name-First: Alejandro
Author-X-Name-Last: Agafonow
Title: The Austrian Dehomogenization Debate, or the Possibility of a Hayekian Planner
Abstract:
The aim of this paper is to explore the implications of the debate on the
dehomogenization of Hayek and Mises. The Misesian thesis about the
vulnerability of the Hayekian argument prevails, and that its implications
have thus far not been fully appreciated. These implications consist, on
the one hand, of the correct integration of the proto-Hayekian bases of
economic calculation into labor time accounting socialism and, on the
other, of the possibility of successfully integrating appraisement into a
Hayekian market socialism through a break with the unified control of the
factors of production. Our contribution will consist of providing a more
comprehensive exploration of these implications.
Journal: Review of Political Economy
Pages: 273-287
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664337
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664337
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:273-287
Template-Type: ReDIF-Article 1.0
Author-Name: Donald Nordberg
Author-X-Name-First: Donald
Author-X-Name-Last: Nordberg
Title: Return of the State? The G20, the Financial Crisis and Power in the World Economy
Abstract:
The Group of Twenty and the new world order it is meant to signify have
prompted a wave of triumphalism around the world from those who, like
French President Nicolas Sarkozy, bemoan the influences of
‘Anglo-Saxon capitalism’ and from neo-Marxists, who view the
economic crisis as a harbinger of the resurgence of states over markets. A
little over a decade ago, however, the late doyenne of international
political economists, Susan Strange, wrote eloquently about the reasons
why the state was in retreat, its structural power draining away in favour
of markets. Have the intervening dozen years, with their recurrent crises
in markets and corporate governance, demonstrated the need for a return of
the state? This analysis of the G20 London communiqu�, using criteria that
Strange advanced, suggests that far from asserting a return of the state,
the G20 signifies its persistent weakness and concludes that the G20
leaders, at least, sense a more complex network of power relationships,
and that structural power rests in the network.
Journal: Review of Political Economy
Pages: 289-302
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664340
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664340
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:289-302
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Author-Name: Frederic S. Lee
Author-X-Name-First: Frederic S.
Author-X-Name-Last: Lee
Title: Introduction
Journal: Review of Political Economy
Pages: 303-304
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664347
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664347
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:303-304
Template-Type: ReDIF-Article 1.0
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: Post Keynesians and Others
Abstract:
I begin by considering four alternative positions on the correct
relationship between Post Keynesians and mainstream economics: opposition,
cooperation, neglect and stealth; I argue that sustained opposition is the
only viable strategy. Next I discuss the appropriate relationship between
Post Keynesians and mainstream dissenters, concluding that relatively
little can be expected to come from it. I then assess the link between
Post Keynesians and other schools of heterodox economics, which I consider
to be one of friendly pluralism rather than fundamental unity. I conclude
that Post Keynesians should remain open to ideas from other heterodox
traditions, and might also benefit from becoming more inter-disciplinary.
Journal: Review of Political Economy
Pages: 305-319
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664353
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664353
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:305-319
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Title: Perspectives for Post-Keynesian Economics
Abstract:
The paper reviews and assesses the negative and positive advice which has
been offered by various fellow economists to heterodox economists in
general, and Post-Keynesian economists in particular, in light of changes
that have occurred within neoclassical economics and in light of the
rising hegemony of mainstream economics in economics departments. Various
strategies are considered, among which is more engagement with orthodox
dissenters, but it is concluded that the majority of heterodox economists
ought instead to engage more with other heterodox economists and possibly
other social sciences, developing and expanding their own agenda around
real-world problems.
Journal: Review of Political Economy
Pages: 321-335
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664356
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664356
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:321-335
Template-Type: ReDIF-Article 1.0
Author-Name: Frederic S. Lee
Author-X-Name-First: Frederic S.
Author-X-Name-Last: Lee
Title: Heterodox Economics and its Critics
Abstract:
Heterodox economics has its critics. Most of the criticisms are friendly
comments and analysis directed towards improving heterodox economic
theory. However, the critics and their criticisms that are the concern of
this article are the ones that challenge the existence of heterodox
economic theory and the community of heterodox economists as manifested
through their graduate programs, conferences, journals and identity. These
critics observe that the academic status quo in economics, as manifested
in its department and journal rankings, rules of academic engagement, and
its institutions and organizations, favor mainstream economics and that it
is unlikely to change in the future. Consequently, they argue that
heterodox economists can survive only if they become more like mainstream
economists. With focus on assimilation, the critics direct their
criticisms towards the social characteristics of the heterodox community
and to the personal characteristics of heterodox economists. This article
is a response to the critics.
Journal: Review of Political Economy
Pages: 337-351
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664360
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664360
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:337-351
Template-Type: ReDIF-Article 1.0
Author-Name: David Dequech
Author-X-Name-First: David
Author-X-Name-Last: Dequech
Title: Post Keynesianism, Heterodoxy and Mainstream Economics
Abstract:
After briefly presenting the concepts of orthodox, mainstream and
heterodox economics, and applying them to the contemporary period, this
article discusses the Post Keynesian school and its relation to
contemporary orthodox and mainstream economics. While opposed to the
neoclassical orthodoxy, the Post Keynesian school has some positive
unifying ideas, although some internal tensions remain. There are also
some overlaps between Post Keynesianism and other approaches, and a
careful combination of contributions from different approaches and
different disciplines is not only possible, but also necessary. Post
Keynesianism is located outside current mainstream economics, although
this argument partly depends on a more precise specification of the
concept of uncertainty. The non-mainstream character of Post Keynesian
economics has at least two types of important implications. The first
involves the approach's ability to influence the economy and the danger of
‘the scholastic fallacy’; the second refers to a
reproductive difficulty inside academia.
Journal: Review of Political Economy
Pages: 353-368
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664364
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664364
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:353-368
Template-Type: ReDIF-Article 1.0
Author-Name: Gene Callahan
Author-X-Name-First: Gene
Author-X-Name-Last: Callahan
Title: Perfecting Parliament: Constitutional Reform, Liberalism, and the Rise of Western Democracy
Journal: Review of Political Economy
Pages: 369-371
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664365
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664365
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:369-371
Template-Type: ReDIF-Article 1.0
Author-Name: Robert E. Prasch
Author-X-Name-First: Robert E.
Author-X-Name-Last: Prasch
Title: Taking Economics Seriously
Journal: Review of Political Economy
Pages: 371-374
Issue: 2
Volume: 24
Year: 2012
Month: 4
X-DOI: 10.1080/09538259.2012.664366
File-URL: http://hdl.handle.net/10.1080/09538259.2012.664366
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:2:p:371-374
Template-Type: ReDIF-Article 1.0
Author-Name: Natália M. Bracarense
Author-X-Name-First: Natália M.
Author-X-Name-Last: Bracarense
Title: Development Theory and the Cold War: The Influence of Politics on Latin American Structuralism
Abstract:
This paper analyzes the origins of economic development theory by
focusing on the work of Raúl Prebisch. When Prebisch put forward his
theoretical framework, he was faced with the challenges of creating a
foundation for development policies in the context of the Cold War.
Moreover, Prebisch was immersed in a determined mentalit�; he was part of
a social network and institutional setting that transformed his ideas into
an influential theory. The objective is to highlight that economic
theories do not rely on natural laws, and rather result from a historical
and social context and that economists are not passive, isolated
theoreticians; they are socialized and directly impact the issues on which
they theorize. To strengthen the argument, archival research on the
Prebisch Papers at the UN Archives as well as interviews from the UN Oral
History Project are included.
Journal: Review of Political Economy
Pages: 375-398
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701916
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701916
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:375-398
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Jossa
Author-X-Name-First: Bruno
Author-X-Name-Last: Jossa
Title: Cooperative Firms as a New Mode of Production
Abstract:
The importance of the notion of ‘the mode of production’ is
emphasised by all those scholars who hold that the
‘history-as-totality’ approach is the core of Marx's theory
of society. Among them, Gramsci argued that while scientific advancements
could shed little light on the issues with which philosophers and
economists had traditionally been concerned, concepts such as
‘social relations of production’ and ‘mode of
production’ had provided valuable insights for philosophical and
economic inquiry. Hence our interest in the question of whether a system
of producer cooperatives would actually lead to the establishment of a new
mode of production. Opinions in the matter diverge greatly, and major
implications stem from the distinction between worker managed firms (WMFs)
and labour managed firms (LMFs), where the latter strictly segregate
capital incomes from labour incomes. We conclude that LMF cooperatives do
implement a new mode of production because they reverse the typical
capital--labour relation right within a capitalistic system. An additional
major point addressed in some detail is the main contradiction in
capitalism.
Journal: Review of Political Economy
Pages: 399-416
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701915
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701915
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:399-416
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Flaschel
Author-X-Name-First: Peter
Author-X-Name-Last: Flaschel
Author-Name: Reiner Franke
Author-X-Name-First: Reiner
Author-X-Name-Last: Franke
Author-Name: Roberto Veneziani
Author-X-Name-First: Roberto
Author-X-Name-Last: Veneziani
Title: The Measurement of Prices of Production: An Alternative Approach
Abstract:
This paper analyzes the theoretical and methodological issues related to
the empirical measurement of prices of production and wage-profit curves.
A number of shortcomings of the standard approach are discussed, focusing
in particular on the neglect of capital stock matrices and on the
empirically objectionable assumption of uniform profit rates. An
alternative approach for the empirical analysis of wage-profit curves and
prices of production is proposed and its main properties are investigated
using a new dataset on the German economy (1991--99). It is suggested that
a Leontief-Bródy approach (augmented by profit rate differentials) is
more appropriate for the analysis of wage-profit curves and prices of
production than the purely theoretically oriented Sraffa-von Neumann
framework.
Journal: Review of Political Economy
Pages: 417-435
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701920
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701920
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:417-435
Template-Type: ReDIF-Article 1.0
Author-Name: Bertram Schefold
Author-X-Name-First: Bertram
Author-X-Name-Last: Schefold
Title: A Comment on ‘The Measurement of Prices of Production’ by Peter Flaschel, Reiner Franke & Roberto Veneziani
Abstract:
After giving a summary of the Cambridge debate, the comment criticizes
the proposal by Flaschel, Franke and Veneziani to base the classical
approach on systems of production with unequal rates of profit both
theoretically and on empirical grounds: The classical gravitation of
market prices towards normal prices is hard to defend, if there are
persistent differentials of profit rates, but the profit rate
differentials in the paper are not even stable. The comment further
defends the idea of representing states of knowledge about technology by
means of input-ouput tables against objections regarding the
transferability of methods between countries and discusses alternative
approaches to the treatment of fixed capital. It is shown that the data
used by the authors for capital stocks are not supported by the data of
the German Statistical Office. I agree with the authors in the most
essential point, however: Contrary to the position taken e.g. by Joan
Robinson, we all believe that the problems of capital theory raised in the
Cambridge debate must be analyzed not only in abstract theory but also at
the applied level. We all were surprised to find that empirical wage
curves tend to be close to straight lines so that double intersections of
such wage curves, hence reswitching and reverse capital deepening, must be
rare. This phenomenon needs to be explained; a possible explanation can be
derived from the random nature of the input-output matrices, and, so far,
no other explanation has been proposed.
Journal: Review of Political Economy
Pages: 437-444
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701921
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701921
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:437-444
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Flaschel
Author-X-Name-First: Peter
Author-X-Name-Last: Flaschel
Author-Name: Reiner Franke
Author-X-Name-First: Reiner
Author-X-Name-Last: Franke
Author-Name: Roberto Veneziani
Author-X-Name-First: Roberto
Author-X-Name-Last: Veneziani
Title: Reply to Bertram Schefold
Journal: Review of Political Economy
Pages: 445-447
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701923
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701923
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:445-447
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Author-Name: Frederic S. Lee
Author-X-Name-First: Frederic S.
Author-X-Name-Last: Lee
Title: Symposium on the Future of Post-Keynesian Economics and Heterodox Economics contra their Critics (Part 2)
Journal: Review of Political Economy
Pages: 449-449
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701926
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701926
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:449-449
Template-Type: ReDIF-Article 1.0
Author-Name: Peter E. Earl
Author-X-Name-First: Peter E.
Author-X-Name-Last: Earl
Author-Name: Ti-Ching Peng
Author-X-Name-First: Ti-Ching
Author-X-Name-Last: Peng
Title: Brands of Economics and the Trojan Horse of Pluralism
Abstract:
This paper examines the current status and prospects of heterodox
approaches to economics in relation to the problem of marketing ideas to
groups of potential users who see the world in very different ways. It
draws lessons from the changing status of behavioural economics and
highlights the marketing problems that arise between heterodox economists
whose perspectives overlap only partially. Its principal message is that
the best hope for heterodox economics may lie in taking a less openly
combative approach than hitherto when trying to win over mainstream
economists and instead using strategies of stealth based on the empirical
advantages of pluralistic applied research methods.
Journal: Review of Political Economy
Pages: 451-467
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701927
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701927
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:451-467
Template-Type: ReDIF-Article 1.0
Author-Name: Leonhard Dobusch
Author-X-Name-First: Leonhard
Author-X-Name-Last: Dobusch
Author-Name: Jakob Kapeller
Author-X-Name-First: Jakob
Author-X-Name-Last: Kapeller
Title: A Guide to Paradigmatic Self-Marginalization: Lessons for Post-Keynesian Economists
Abstract:
While many heterodox economists hope that the recent financial crisis
will lead to paradigmatic change in economics, we argue that
path-dependent processes and institutional factors within the economic
community hinder such a change. Focusing on the citation behavior of
economists in heterodox journals in general and in Post-Keynesian journals
in particular, we discuss structural reasons—connected to positive
feedback mechanisms within the institutional framework of the economics
discipline—for the marginalization of heterodox economic thought.
Journal: Review of Political Economy
Pages: 469-487
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701928
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701928
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:469-487
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara E. Hopkins
Author-X-Name-First: Barbara E.
Author-X-Name-Last: Hopkins
Title: The Institutional Barriers to Heterodox Pluralism
Abstract:
This paper applies the feminist concept of epistemological communities to
the project of promoting pluralism in the economics discipline. I argue
that the economics profession does not resemble a unified and coherent
epistemological community and is better viewed as many different yet
overlapping and intersecting smaller communities. I argue that this
reimaging of the community of economists implies a different conception of
pluralism. In an environment where theory is developed at different
intersections of epistemological communities, pluralism requires
distinguishing between the public process of debate that provides critical
evaluation of knowledge claims and the private process of determining what
is published and it requires different strategies for evaluating work for
publication.
Journal: Review of Political Economy
Pages: 489-501
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701929
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701929
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:489-501
Template-Type: ReDIF-Article 1.0
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Author-Name: Peter Docherty
Author-X-Name-First: Peter
Author-X-Name-Last: Docherty
Title: Engagement with the Mainstream in the Future of Post Keynesian Economics
Abstract:
This paper examines the reasons for the difficulties Post Keynesian
economics has had in supplanting mainstream neoclassical theory and for
its resulting marginalization. Three explanations are given: intellectual,
sociological and political, where the latter two are largely responsible
for the current relationship of Post Keynesian economics to the
mainstream. The paper also reviews various strategies for improving the
future of Post Keynesian economics, including a focus on methodological
issues by maintaining an ‘open systems’ approach; a strategy
of ‘embattled survival’; the development of a positive
alternative to mainstream economics; a strategy of ‘constructive
engagement’ with the mainstream; and a dialogue with policymakers.
While the global financial crisis has increased the potential for
constructive engagement with the mainstream, significant barriers remain
to the effectiveness of this approach. The crisis has, however, enhanced
the possibility of engaging directly with policymakers and gaining a
greater role in management education.
Journal: Review of Political Economy
Pages: 503-518
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701931
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701931
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:503-518
Template-Type: ReDIF-Article 1.0
Author-Name: Fred Moseley
Author-X-Name-First: Fred
Author-X-Name-Last: Moseley
Title: Theories of Value from Adam Smith to Piero Sraffa
Journal: Review of Political Economy
Pages: 519-527
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701933
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701933
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:519-527
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Sergio Levrero
Author-X-Name-First: Enrico Sergio
Author-X-Name-Last: Levrero
Title: Theories of Value from Adam Smith to Piero Sraffa
Journal: Review of Political Economy
Pages: 527-535
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701934
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701934
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:527-535
Template-Type: ReDIF-Article 1.0
Author-Name: Alex Millmow
Author-X-Name-First: Alex
Author-X-Name-Last: Millmow
Title: The Provocative Joan Robinson: The Making of a Cambridge Economist
Journal: Review of Political Economy
Pages: 536-540
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701935
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701935
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:536-540
Template-Type: ReDIF-Article 1.0
Author-Name: Collin G. Matton
Author-X-Name-First: Collin G.
Author-X-Name-Last: Matton
Title: The Confiscation of American Prosperity: from Right Wing Extremism and Economic Ideology to the Next Great Depression
Journal: Review of Political Economy
Pages: 540-542
Issue: 3
Volume: 24
Year: 2012
Month: 7
X-DOI: 10.1080/09538259.2012.701936
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701936
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:3:p:540-542
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Smith
Author-X-Name-First: Matthew
Author-X-Name-Last: Smith
Title: Demand-led Growth Theory: A Historical Approach
Abstract:
This paper builds upon the Keynesian theory of demand-led growth in order
to provide an analytical framework for explaining economic growth and
development in concrete terms, consistent with the fundamental idea that
growth in output and employment is determined by the growth in aggregate
demand. The framework employs a historical approach to identify the main
factors and their role in explaining demand-led growth and the
accumulation process. The theoretical model developed abandons
steady-state conditions by proposing that capacity utilisation varies in
the long run as well as in the short run to ensure output has the
elasticity to accommodate levels of autonomous demand free of any capacity
saving constraint. On the basis of our analytical framework, the paper
considers the main factors that explain the growth in aggregate demand:
first, by examining the variables that determine the
‘super-multiplier’ and what social, institutional and
technical conditions can cause its value to change over time; second, by
identifying the components of autonomous demand and the main forces
explaining their growth; and third, by considering the manner in which
technical progress promotes demand-led growth.
Journal: Review of Political Economy
Pages: 543-573
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.729931
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729931
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:543-573
Template-Type: ReDIF-Article 1.0
Author-Name: Jonathan P. Goldstein
Author-X-Name-First: Jonathan P.
Author-X-Name-Last: Goldstein
Title: Gender in American Tobacco Cards 1880--1920: The Role of Coercive Competition
Abstract:
This paper adds to the literature on Marxian coercive competition and its
negative economic and social outcomes. An historical and econometric
analysis of competitive intensity and the portrayal of women in one early
form of tobacco advertising is conducted using an original data set. The
historical analysis establishes the nature and intensity of competitive
relations. Estimation results for a multinomial logit model for various
portrayals of women show that a 1% increase in the market share of
independent producers caused a 0.35--0.7% and 2.5--4.5% increase in the
likelihood that women were included and treated exploitatively in ads in
early and late competitive periods, respectively.
Journal: Review of Political Economy
Pages: 575-605
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.701918
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701918
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:575-605
Template-Type: ReDIF-Article 1.0
Author-Name: Hiroshi Nishi
Author-X-Name-First: Hiroshi
Author-X-Name-Last: Nishi
Title: Household Debt, Dynamic Stability, and Change in Demand Creation Patterns
Abstract:
This paper examines dynamic stability and demand creation patterns of an
economy in the context of the augmentation of household debt. First, we
investigate the dynamic characteristics specific to an economy with
household borrowing. Second, we reveal how demand creation and economic
growth pattern change with the introduction of households' active
borrowing. Our results shows that it is more favorable for the stability
of an economy to politically control the interest rate on lending rather
than to leave it to be determined by private financial institutions. Our
results also indicate that even if the demand regime is wage-led,
paradoxically, a rise in wage share may not necessarily stimulate economic
growth. On the other hand, profit-led growth is more likely.
Journal: Review of Political Economy
Pages: 607-622
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.729933
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729933
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:607-622
Template-Type: ReDIF-Article 1.0
Author-Name: João Prates Romero
Author-X-Name-First: João Prates
Author-X-Name-Last: Romero
Author-Name: Frederico G. Jayme
Author-X-Name-First: Frederico G.
Author-X-Name-Last: Jayme
Title: Financial System, Innovation and Regional Development: The Relationship between Liquidity Preference and Innovation in Brazil
Abstract:
This paper discusses the Brazilian financial system and the impact of
liquidity preference on regional development in Brazil. In the
Post-Keynesian literature, endogenous money is introduced into economic
activity through the credit provided by banks. The degree to which banks
exhibit lower or higher liquidity preference is crucial to this process.
Here we estimate the effect of liquidity preference and other financial
variables on the number of Brazilian states' patents, in order to gauge
the importance of the bank system to technological progress and regional
development.
Journal: Review of Political Economy
Pages: 623-642
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.729934
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729934
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:623-642
Template-Type: ReDIF-Article 1.0
Author-Name: John H. Bradford
Author-X-Name-First: John H.
Author-X-Name-Last: Bradford
Title: Capital, the State, and the Monetary Mode of Power: A Review of Nitzan and Bichler's Capital as Power
Abstract:
In their recent book Capital as Power, Jonathan
Nitzan & Shimshon Bichler depict capitalism as a mode of power rather than
a mode of production, in which political and economic power are no longer
distinct. In addition, they argue, contrary to neoclassical theory, that
capital has nothing to do with productivity but instead represents power.
I make three broad criticisms: first, their elimination of the distinction
between economics and politics renders any empirical test of their
ostensible integration impossible; second, they do not adequately define
their main concepts, including capital, capitalization, capitalism, and
power; and third, they do not acknowledge the possibility that the
patterns they attribute to power may in fact be self-organized. This paper
argues that money is a claim to wealth, not wealth itself, that it
measures and distributes the power of payment, and that payments
redistribute the power of ownership, including the ownership of money.
Finally, I suggest that, in light of the global debt crisis, a theory of
capital-as-power should examine the power of finance, which entails the
privatization and concentration of the power to create money as
debt.
Journal: Review of Political Economy
Pages: 643-661
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.701932
File-URL: http://hdl.handle.net/10.1080/09538259.2012.701932
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:643-661
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Smith
Author-X-Name-First: Matthew
Author-X-Name-Last: Smith
Title: The Coming of Age of Information Technologies and the Path of Transformational Growth
Journal: Review of Political Economy
Pages: 663-665
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.729936
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729936
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:663-665
Template-Type: ReDIF-Article 1.0
Author-Name: Gene Callahan
Author-X-Name-First: Gene
Author-X-Name-Last: Callahan
Title: Toward a Truly Free Market: a Distributive Perspective on the Role of Government, Taxes, Health Care, Deficits, and More
Journal: Review of Political Economy
Pages: 665-667
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.729937
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729937
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:665-667
Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Forges Davanzati
Author-X-Name-First: Guglielmo Forges
Author-X-Name-Last: Davanzati
Title: Heterodox Macroeconomics. Keynes, Marx and Globalization
Journal: Review of Political Economy
Pages: 667-669
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.729938
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729938
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:667-669
Template-Type: ReDIF-Article 1.0
Author-Name: Oren M. Levin-Waldman
Author-X-Name-First: Oren M.
Author-X-Name-Last: Levin-Waldman
Title: After Adam Smith: A Century of Transformation in Politics and Political Economy
Journal: Review of Political Economy
Pages: 669-673
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.729939
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729939
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:669-673
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Title: Global Finance and Social Europe
Journal: Review of Political Economy
Pages: 674-676
Issue: 4
Volume: 24
Year: 2012
Month: 10
X-DOI: 10.1080/09538259.2012.729940
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729940
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Handle: RePEc:taf:revpoe:v:24:y:2012:i:4:p:674-676
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Boyer
Author-X-Name-First: Robert
Author-X-Name-Last: Boyer
Title: The Present Crisis. A Trump for a Renewed Political Economy
Abstract:
The new classical macroeconomics and mathematical finance have both
failed to anticipate the present crisis or explain why the present crisis
is so severe. This is because they only considered pure market economies
devoid of institutions and without concern for historical and structural
transformations in contemporary economies. This opens the door to a
political economy analysis of the transformations in socio-political
alliances since the demise of the Fordist growth regime. The shift toward
market-based financial systems, financial liberalization, and
globalization, gave unprecedented power to international financiers and
has led to the current economic and financial crisis. Controlling finance
requires resolute action by public authorities and the pressure of citizen
social movements. Financial re-regulation is closely related to the
relative bargaining power of nation-states and international finance.
International comparisons (e.g., North American and German capitalisms)
suggest that this is a possible path.
Journal: Review of Political Economy
Pages: 1-38
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.736262
File-URL: http://hdl.handle.net/10.1080/09538259.2013.736262
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:1-38
Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Boumans
Author-X-Name-First: Marcel
Author-X-Name-Last: Boumans
Author-Name: Esther-Mirjam Sent
Author-X-Name-First: Esther-Mirjam
Author-X-Name-Last: Sent
Title: A Nobel Prize for Empirical Macroeconomics: Assessing the Contributions of Thomas Sargent and Christopher Sims
Abstract:
This paper provides an assessment of the contributions of the 2011 Nobel
Prize winners, Thomas Sargent and Christopher Sims. They received the
prize ‘for their empirical research on cause and effect in the
macroeconomy’. The paper illustrates that Sargent entertained
different interpretations of rational expectations during distinct phases
of his research. And it shows that Sims shifted the focus from theoretical
identification restrictions to identifying the main characteristics of the
time series data, a shift of focus from theory to time series.
Journal: Review of Political Economy
Pages: 39-56
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737122
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737122
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:39-56
Template-Type: ReDIF-Article 1.0
Author-Name: John Weeks
Author-X-Name-First: John
Author-X-Name-Last: Weeks
Title: Open Economy Monetary Policy Reconsidered
Abstract:
The standard policy rule of the Mundell-Fleming model states that under a
flexible exchange rate regime with perfectly elastic capital flows,
monetary policy is effective and fiscal policy is not. The rule ignores
the effect of a change in the nominal exchange rate on the domestic price
level. The price level effect is noted in some textbooks, but not formally
analyzed. When subjected to a rigorous analysis, the interaction of the
exchange rate and the domestic price level substantially changes the
standard policy rule. The logically correct statement would be, with a
flexible exchange rate and perfectly elastic capital flows, the
effectiveness of monetary policy depends on the marginal import propensity
and the sum of the trade elasticities. Typical values for these parameters
suggest that the effectiveness of monetary policy under flexible exchange
rates can be low even if capital flows are perfectly elastic. Because
these same parameters have the opposite effect on fiscal policy, the
relative effectiveness of fiscal and monetary interventions under a
flexible exchange rate is an empirical issue that cannot be determined a
priori.
Journal: Review of Political Economy
Pages: 57-67
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737123
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737123
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:57-67
Template-Type: ReDIF-Article 1.0
Author-Name: Elisa Van Waeyenberge
Author-X-Name-First: Elisa
Author-X-Name-Last: Van Waeyenberge
Author-Name: Hannah Bargawi
Author-X-Name-First: Hannah
Author-X-Name-Last: Bargawi
Author-Name: Terry McKinley
Author-X-Name-First: Terry
Author-X-Name-Last: McKinley
Title: The IMF, Crises and Low-Income Countries: Evidence of Change?
Abstract:
This paper assesses the policy role of the IMF in Low-Income Countries
(LICs) in the wake of the global financial crisis and in response to its
own claims of policy redesign and increased flexibility. The assessment
focuses on the Fund's monetary and fiscal policy stance in a selection of
case study countries over the period 2008−2010. The paper finds
that while the IMF has allowed for modest and short-term fiscal and
monetary accommodation as an immediate response to the crisis, the Fund's
medium to long-term policy agenda has remained unchanged. Both theory and
evidence suggest that the Fund remains committed to its pre-crisis policy
priorities. Furthermore, the global financial crisis appears to have
enabled the Fund to reassert its role as guardian of an orthodox
macroeconomic order. These developments are particularly troublesome given
that the Fund's prevailing macroeconomic framework continues to be
inconsistent with the urgent development needs of LICs, where more
expansionary fiscal policies and more liquidity-focused monetary policies
are needed to support structural diversification, and foster sustainable
and equitable growth and development.
Journal: Review of Political Economy
Pages: 69-90
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737125
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737125
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:69-90
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Sergio Levrero
Author-X-Name-First: Enrico Sergio
Author-X-Name-Last: Levrero
Title: Marx on Absolute and Relative Wages and the Modern Theory of Distribution
Abstract:
This paper aims at clarifying some aspects of Marx's analysis of the
determinants of wages and of the peculiarity of labour as a commodity,
focusing on three related issues. The first is that of Marx's notion of
the subsistence (or natural) wage rate: the subsistence wage will be shown
to stem, according to Marx, from socially determined conditions of
reproduction of an efficient labouring class. The second issue refers to
the distinction between the natural and the market wage rate that can be
found in Marx, and his critique of Ricardo's analysis of the determinants
of the price of labour. Here the ‘law of population peculiar to the
capitalist mode of production’ (that is, Marx's industrial reserve
army mechanism) will be considered both with respect to cyclical
fluctuations of wages and to their trend over time. Moreover, a
classification of the social and institutional factors affecting the
average wage rate will be advanced. Finally, the last issue concerns
Marx's analysis of the effects of technical progress on both absolute and
relative wages (that is, the wage share). It will also be discussed by
relating it back to the longstanding debate on the Marxian law of the
falling rate of profit, and addressing some possible scenarios of the
trend of wages and distribution.
Journal: Review of Political Economy
Pages: 91-116
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737126
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737126
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:91-116
Template-Type: ReDIF-Article 1.0
Author-Name: Ariel Dvoskin
Author-X-Name-First: Ariel
Author-X-Name-Last: Dvoskin
Author-Name: Andr�s Lazzarini
Author-X-Name-First: Andr�s
Author-X-Name-Last: Lazzarini
Title: On Walras's Concept of Equilibrium
Abstract:
The view that Walras's equilibrium concept refers to a temporary general
equilibrium with stationary expectations has come to be the conventional
opinion within the history of economics. This interpretation overlooks
salient aspects of Walras's original equilibrium concept: (i) that it
refers to a centre of gravitation, thus equilibrium must be assessed
together with the adjustment mechanisms that are supposed to bring the
economy towards its position of rest; (ii) that it attempts to represent a
persistent position of the economic variables; and (iii) that it must not
be regarded as a mere artificial model disconnected from reality, but as a
device to understand how actual economies work. We therefore conclude that
the scope of Walras's work can be better grasped by interpreting his
equilibrium system as aiming to describe a long-period position of the
economy.
Journal: Review of Political Economy
Pages: 117-138
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737127
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737127
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:117-138
Template-Type: ReDIF-Article 1.0
Author-Name: Luca Fiorito
Author-X-Name-First: Luca
Author-X-Name-Last: Fiorito
Title: When Economics Faces the Economy: John Bates Clark and the 1914 Antitrust Legislation
Abstract:
The aim of this paper is to analyze John Bates Clark's influence in the
passing of the Clayton and Federal Trade Commission Acts of 1914. It is
argued that Clark was important to the passage of these acts in two ways.
First, he exercised an indirect influence by discussing in academic
journals and books problems concerning trusts, combinations, and the
measures necessary to preserve the working of competitive markets. At
least as importantly, Clark took an active role in the reform movement,
both contributing to draft proposals for the amendment of existing
antitrust legislation and providing help and advice during the
Congressional debates that led to the passage of the FTC and Clayton Acts.
Journal: Review of Political Economy
Pages: 139-163
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737129
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737129
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:139-163
Template-Type: ReDIF-Article 1.0
Author-Name: Robert F. Garnett
Author-X-Name-First: Robert F.
Author-X-Name-Last: Garnett
Title: The Economist's Oath: On the Need for and Content of Professional Economic Ethics
Journal: Review of Political Economy
Pages: 165-169
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737131
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737131
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:165-169
Template-Type: ReDIF-Article 1.0
Author-Name: M. G. Hayes
Author-X-Name-First: M. G.
Author-X-Name-Last: Hayes
Title: Money, Uncertainty and Time
Journal: Review of Political Economy
Pages: 169-172
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737132
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737132
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:169-172
Template-Type: ReDIF-Article 1.0
Author-Name: Oren M. Levin-Waldman
Author-X-Name-First: Oren M.
Author-X-Name-Last: Levin-Waldman
Title: Marx at the Margins: On Nationalism, Ethnicity, and Non-Western Societies
Journal: Review of Political Economy
Pages: 172-175
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737133
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737133
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:172-175
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Toporowski
Author-X-Name-First: Jan
Author-X-Name-Last: Toporowski
Title: The Elgar Companion to Hyman Minsky
Journal: Review of Political Economy
Pages: 175-177
Issue: 1
Volume: 25
Year: 2013
Month: 1
X-DOI: 10.1080/09538259.2013.737134
File-URL: http://hdl.handle.net/10.1080/09538259.2013.737134
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:1:p:175-177
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas I. Palley
Author-X-Name-First: Thomas I.
Author-X-Name-Last: Palley
Title: Keynesian, Classical and New Keynesian Approaches to Fiscal Policy: Comparison and Critique
Abstract:
The short-run macroeconomic effectiveness of fiscal policy
depends primarily on the effect of policy on aggregate demand (AD) and the
effect of AD on output. This paper examines how macroeconomic perspectives
(Keynesian, Post Keynesian, monetarist, classical, new classical, and new
Keynesian) describe the effect of AD on output, thereby making or denying
space for fiscal policy to impact output. The neo-Ricardian hypothesis
(NRH) concerns the effect of bond-financed deficits on AD. The NRH turns
on the microeconomic behavior of households and can therefore hold in
principle in both classical and Keynesian models. Recent new Keynesian
arguments about fiscal policy being effective at the zero lower bound
represent another capital market imperfection critique of the NRH.
Journal: Review of Political Economy
Pages: 179-204
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775821
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775821
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:179-204
Template-Type: ReDIF-Article 1.0
Author-Name: M. G. Hayes
Author-X-Name-First: M. G.
Author-X-Name-Last: Hayes
Title: The State of Short-term Expectation
Abstract:
The claim that Keynes makes a tacit assumption in Chapter 3
of The General Theory, that short-term expectations are
fulfilled, is unwarranted and unnecessary. Kregel's seminal 1976 paper and
its subsequent development by Chick and others have contributed to the
general acceptance of this claim; these contributions are critically
evaluated in the present paper. This critique clears the ground for a
recognition that Keynes instead adopted the assumption of judicious
foresight, which would now be called short-term rational expectations.
That recognition in turn should encourage a reappraisal of Keynes's
thought, by mainstream economists and others.
Journal: Review of Political Economy
Pages: 205-224
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2012.729929
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729929
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:205-224
Template-Type: ReDIF-Article 1.0
Author-Name: Graham White
Author-X-Name-First: Graham
Author-X-Name-Last: White
Title: Competition, Welfare and Macroeconomics: A Classical/Sraffian Perspective
Abstract:
The paper reflects on two phenomena seen by orthodoxy as key
defining characteristics of imperfect competition: product differentiation
and restricted mobility of resources. Product differentiation is first
considered in terms of its significance within a Sraffian price model.
This in turn allows one to consider the ‘welfare’
effects—considered here in terms of the impact on output per
worker—of a degree of monopoly power, to the extent this is
conferred on producers by product differentiation. Restricted mobility of
resources on the other hand is considered in terms of its impact on the
level and pattern of sectoral profit rates and via this on
income-expenditure multipliers and hence aggregate output per unit of
autonomous demand. Both parts of the analysis suggest that, at least from
a Sraffian standpoint, no hard and fast conclusions can be drawn about the
welfare effects of product differentiation or restricted mobility of
resources; in turn casting doubts on more orthodox claims about the
welfare impacts of imperfect competition.
Journal: Review of Political Economy
Pages: 225-253
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775824
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775824
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:225-253
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Tinel
Author-X-Name-First: Bruno
Author-X-Name-Last: Tinel
Title: Why and How Do Capitalists Divide Labour? From Marglin and Back again through Babbage and Marx
Abstract:
Nearly four decades ago, Stephen Marglin explored the origins
of hierarchy in capitalist production with a divide and conquer hypothesis
based on the idea that the monopolisation of knowledge about production
technology plays a major role in explaining how workers are deprived of
control over the labour process. Nevertheless, this explanation has some
shortcomings that Marx and Babbage had avoided. Those two authors provided
a highly accurate and convincing interpretation of the division of labour
that remains relevant. The present paper proposes a general synthesis of
their analysis. Two points are emphasised: (1) the division of labour
plays a major role in wage determination; and (2) the division of labour
largely determines the form of subjection of labour to capital.
Journal: Review of Political Economy
Pages: 254-272
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775825
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775825
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:254-272
Template-Type: ReDIF-Article 1.0
Author-Name: Shaianne T. Osterreich
Author-X-Name-First: Shaianne T.
Author-X-Name-Last: Osterreich
Title: Precarious Work in Global Exports: The Case of Indonesia
Abstract:
This paper relies on the global commodity chain framework and
the standards of Decent Work laid out by the International Labour
Organization to examine employment outcomes in export-oriented production
in Indonesia. The empirical model investigates the extent to which
industrial characteristics related to global production sharing explain
variability in employment outcomes in the Indonesian manufacturing sector.
The results suggest that export orientation, labor intensity, and female
crowding negatively affect the likelihood of decent work outcomes. In
addition, foreign direct investment has a positive affect, although it is
overwhelmed by the other factors.
Journal: Review of Political Economy
Pages: 273-293
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775826
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775826
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:273-293
Template-Type: ReDIF-Article 1.0
Author-Name: Wesley C. Marshall
Author-X-Name-First: Wesley C.
Author-X-Name-Last: Marshall
Title: The Causes and Consequences of the Misdiagnosis of the Financial Crisis in the United States
Abstract:
Using an analytical framework that divides banking crises
into ‘classic’ and ‘secondary’ crises, this
article analyzes the banking crisis that broke out in the United States in
the summer of 2007 and the response of US authorities. While quite simple
in itself, this framework allows for a novel interpretation of the
unfolding of the crisis and for evaluating US authorities in the design
and implementation of crisis resolution mechanisms. As suggested by the
title, the principal hypothesis of the article is that the crisis was
fundamentally misdiagnosed, leading to a flawed bailout that all but
guarantees its inefficacy in bringing the US financial system back to
health at a reasonable fiscal cost.
Journal: Review of Political Economy
Pages: 294-308
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775828
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775828
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:294-308
Template-Type: ReDIF-Article 1.0
Author-Name: Giancarlo Bertocco
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Bertocco
Title: On Keynes's Criticism of the Loanable Funds Theory
Abstract:
By accepting the claims of the loanable funds theory,
contemporary monetary theory distances itself from Keynes's view of the
rate of interest as a monetary phenomenon, and overlooks the arguments
Keynes used to respond to the criticism of supporters of the loanable
funds theory such as Ohlin and Robertson. This paper argues that the
explicit consideration of the finance motive and the role of banks in
financing investment does not imply acceptance of the loanable funds
theory, but instead facilitates the elaboration of an alternative to the
loanable funds theory. Associated with this alternative theory of credit
is an explanation of the monetary nature of the fluctuations in income and
employment, which is different from and more persuasive than accounts
based only on the liquidity preference theory.
Journal: Review of Political Economy
Pages: 309-326
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775829
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775829
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:309-326
Template-Type: ReDIF-Article 1.0
Author-Name: Gökçer Özgür
Author-X-Name-First: Gökçer
Author-X-Name-Last: Özgür
Author-Name: Korkut Alp Ertürk
Author-X-Name-First: Korkut Alp
Author-X-Name-Last: Ertürk
Title: Endogenous Money in the Age of Financial Liberalization
Abstract:
The paper reports that no statistically significant empirical
relationship can be shown between total bank credit and the US broad money
supply in the period after 1995. It argues that the growing prevalence of
non-bank deposits in the form of mutual money market funds and asset
securitization are the main culprits for this result. Prior to financial
liberalization, the connection between total bank credit and broad money
supply was simple enough: new bank deposits were created when banks made
loans and were extinguished when loans were paid back. In banks'
consolidated balance sheet, total deposits made up total liabilities and
were basically equal to the broad money supply. However, in the age of
financial liberalization not all deposits bank loans created returned as
deposits, whether in banks or non-banks, as deposits could be swapped for
non-deposit liabilities without a corresponding draw down on the asset
side. Moreover, loans could be extinguished in banks' balance sheets
through asset securitization.
Journal: Review of Political Economy
Pages: 327-347
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2012.729928
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729928
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:327-347
Template-Type: ReDIF-Article 1.0
Author-Name: Bill Lucarelli
Author-X-Name-First: Bill
Author-X-Name-Last: Lucarelli
Title: Endogenous Money: A Note on Some Post-Keynesian Controversies
Abstract:
Keynes's theory of liquidity preference sought to illuminate
the essential properties of money under the conditions of uncertainty that
often lead to involuntary unemployment. Subsequent Post-Keynesian
literature built upon this concept to show that a deregulated financial
system could induce phases of endemic financial instability and crises.
Keynes's finance motive provides an important starting point in
Post-Keynesian theories of endogenous money. This article examines the
controversies between two major contending analytical approaches, the
Horizontalist and Structuralist schools.
Journal: Review of Political Economy
Pages: 348-359
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775830
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775830
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:348-359
Template-Type: ReDIF-Article 1.0
Author-Name: John Berdell
Author-X-Name-First: John
Author-X-Name-Last: Berdell
Title: Casualties of Credit: The English Financial Revolution, 1620--1720
Journal: Review of Political Economy
Pages: 360-363
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775831
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775831
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:360-363
Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Lederman
Author-X-Name-First: Jacob
Author-X-Name-Last: Lederman
Title: Argentina's Economic Growth and Recovery: The Economy in a Time of Default
Journal: Review of Political Economy
Pages: 363-366
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775822
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775822
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:363-366
Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Sardoni
Author-X-Name-First: Claudio
Author-X-Name-Last: Sardoni
Title: A Modern Guide to Keynesian Macroeconomics and Economic Policies
Journal: Review of Political Economy
Pages: 366-371
Issue: 2
Volume: 25
Year: 2013
Month: 4
X-DOI: 10.1080/09538259.2013.775823
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775823
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:2:p:366-371
Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Boianovsky
Author-X-Name-First: Mauro
Author-X-Name-Last: Boianovsky
Title: The Economic Commission for Latin America and the 1950s' Debate on Choice of Techniques
Abstract:
The paper investigates how the United Nations Economic
Commission for Latin America (CEPAL) fits into the 1950s' international
debate about investment criteria and choice of techniques in development
planning. In some of their documents, CEPAL economists expressed a
preference for projects with low capital-labour ratios, in line with the
conclusions of A.E. Kahn and Hollis Chenery's 'social marginal
productivity' of capital criterion for investment in countries relatively
short of capital. However, one may also find CEPAL economists proposing an
increasing participation of heavy industries in total investment during
the acceleration phase of economic growth, an approach that was supported
by Maurice Dobb's and Amartya Sen's argument for capital-intensive
projects. This double perspective is explained by the distinction between
static and dynamic scenarios in CEPAL's framework, which sheds new light
on the treatment of capital accumulation and technology as part of
import-substituting industrialization policy in underdeveloped areas.
Journal: Review of Political Economy
Pages: 373-398
Issue: 3
Volume: 25
Year: 2013
Month: 7
X-DOI: 10.1080/09538259.2013.775827
File-URL: http://hdl.handle.net/10.1080/09538259.2013.775827
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:3:p:373-398
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio D'Orlando
Author-X-Name-First: Fabio
Author-X-Name-Last: D'Orlando
Title: Electronic Resources and Heterodox Economics
Abstract:
The idea of measuring scientific relevance by counting
citations is gaining influence among economists, and thanks to the
electronic bibliographic resources now available the procedure has become
relatively simple and fast. However, when it comes to putting the idea
into practice many problems emerge. This paper uses four of the principal
bibliographic electronic resources (EconLit, JSTOR, Web of Science and
Scopus) to test the practical applicability of this method to the case of
the five theoretical schools classified as 'Current Heterodox Approaches'
in JEL code B5.
Journal: Review of Political Economy
Pages: 399-425
Issue: 3
Volume: 25
Year: 2013
Month: 7
X-DOI: 10.1080/09538259.2012.729941
File-URL: http://hdl.handle.net/10.1080/09538259.2012.729941
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:3:p:399-425
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Nisticò
Author-X-Name-First: Sergio
Author-X-Name-Last: Nisticò
Title: Financing Pay-as-you-go Public Pension Systems: Some Notes in the Light of the Classical-type Theory of Income Distribution
Abstract:
The paper uses a Sraffa-type two-sector model to study how
the presence of retired workers interacts with the distribution of the
surplus between workers and capitalists (firms). In particular, the paper
investigates how the ongoing diminution of the ratio between active and
retired workers affects the wage-profits-pensions frontier, which is
defined after allowing that a social security tax, which reduces the
claims of active workers and capitalists on the surplus of the economy,
finances the pensions distributed each year to retired workers. Finally,
it is argued that the different impact of defined-benefit and
defined-contribution pay-as-you-go pension schemes depends on the actual
incidence of payroll taxes.
Journal: Review of Political Economy
Pages: 426-443
Issue: 3
Volume: 25
Year: 2013
Month: 7
X-DOI: 10.1080/09538259.2013.807670
File-URL: http://hdl.handle.net/10.1080/09538259.2013.807670
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:3:p:426-443
Template-Type: ReDIF-Article 1.0
Author-Name: Florence Jany-Catrice
Author-X-Name-First: Florence
Author-X-Name-Last: Jany-Catrice
Author-Name: Dominique M�da
Author-X-Name-First: Dominique
Author-X-Name-Last: M�da
Title: Well-being and the Wealth of Nations: How are They to Be Defined?
Abstract:
Questions relating to well-being have recently returned to
the limelight, notably with the publication in September 2009 of the
Stiglitz-Sen-Fitoussi commission report on the measurement of economic
performance and social progress. Has this commission changed the terms of
the debate on what a society's wealth and well-being are? Has it proposed
new paradigms? In accepting the limitations of GDP as a key indicator of
well-being, has it developed a new theoretical foundation and new
evaluation criteria suited to a very different situation and to very
different priorities from those that prevailed at the time when GDP first
became established as a measure of national economic performance? These
are the main questions raised and reviewed by this paper.
Journal: Review of Political Economy
Pages: 444-460
Issue: 3
Volume: 25
Year: 2013
Month: 7
X-DOI: 10.1080/09538259.2013.807671
File-URL: http://hdl.handle.net/10.1080/09538259.2013.807671
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:3:p:444-460
Template-Type: ReDIF-Article 1.0
Author-Name: Edouard Cottin-Euziol
Author-X-Name-First: Edouard
Author-X-Name-Last: Cottin-Euziol
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: Circuit with Multi-period Credit
Abstract:
We develop a circuit model in which firms finance part of
their investment using bank credit issued and reimbursed over several
periods. The model has three main properties: profits originate in the
overlap of investments financed by bank credit that remain to be repaid;
Say's Law is not verified, even when households do not save within a
period; and the rate of investment must increase and then level off over
time to avoid an overproduction crisis.
Journal: Review of Political Economy
Pages: 461-475
Issue: 3
Volume: 25
Year: 2013
Month: 7
X-DOI: 10.1080/09538259.2013.807672
File-URL: http://hdl.handle.net/10.1080/09538259.2013.807672
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:3:p:461-475
Template-Type: ReDIF-Article 1.0
Author-Name: Renato Panicci�
Author-X-Name-First: Renato
Author-X-Name-Last: Panicci�
Author-Name: Paolo Piacentini
Author-X-Name-First: Paolo
Author-X-Name-Last: Piacentini
Author-Name: Stefano Prezioso
Author-X-Name-First: Stefano
Author-X-Name-Last: Prezioso
Title: Total Factor Productivity or Technical Progress Function? Post-Keynesian Insights for the Empirical Analysis of Productivity Differentials in Mature Economies
Abstract:
The dominant supply-side foundation for explanations of the
growth potential of an economy is losing its persuasive power in the face
of persistent losses in output and employment experienced by mature
economies in the aftermath of the financial crisis. There is now an
opening for eclectic approaches that consider the interaction between
supply-side and demand-side factors in shaping macroeconomic outcomes. In
this paper, we develop a model that reflects such an approach to
interpreting differential productivity growth over the long run, and then
present empirical results for several countries. On the supply-side, the
model considers the linkage between the intensity and efficacy of the
accumulation process and the gains of productivity in terms of a Kaldorian
Technical Progress Function. Then, drawing on the Evsey Domar's Keynesian
notion of dynamic equilibrium as the growth rate that reconciles additions
to capacity with the absorption of aggregate output by demand, we derive a
locus for a 'Domar equilibrium path'. Imbalances caused by excess
aggregate supply or demand, and by the effects of 'shocks' are presented
and discussed using a simple graphical framework. In the empirical
analysis, an error-correction model is applied to the fundamental
relationship between the rate of growth of product per work-hour and the
rate of capital accumulation. The results suggest that the differences in
productivity growth among countries are can be explained in terms of the
efficiency of their 'accumulation paths'.
Journal: Review of Political Economy
Pages: 476-495
Issue: 3
Volume: 25
Year: 2013
Month: 7
X-DOI: 10.1080/09538259.2013.807673
File-URL: http://hdl.handle.net/10.1080/09538259.2013.807673
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:3:p:476-495
Template-Type: ReDIF-Article 1.0
Author-Name: Lino Sau
Author-X-Name-First: Lino
Author-X-Name-Last: Sau
Title: Instability and Crisis in Financial Complex Systems
Abstract:
This paper contrasts the Efficient Markets Hypothesis with
Hyman Minsky's Financial Instability Hypothesis (FIH), taking into account
the dynamic complexity of financial markets. This approach offers
analytical tools that can account for crisis through processes endogenous
to contemporary economies. Recent work, notably by J. Barkley Rosser, has
suggested that complex dynamics is a strong foundations for Keynesian
models and results. Group dynamics enter into the analysis in at least two
ways: they provide an independent source of fundamental uncertainty which,
as discussed by Keynes himself, can lead to speculative bubbles in asset
markets, and they can cause overreactions in both lenders' and borrowers'
attitudes toward risk. These aspects can lead to financial fragility and
instability following a variety of complex dynamics. I shall argue that a
financially complex system is, according to the FIH, inherently flawed and
unstable: in the absence of adequate economic policy boom and bust
phenomena, in financial markets which are fuelled by credit booms and
busts, may generate endogenous instability and systemic crisis, such as
the recent sub-prime mortgage crisis.
[O]ur economic leadership does not seem to be aware that
the normal functioning of our economy leads to financial
trauma and crisis, inflation, currency depreciations, unemployment, and
poverty in the midst of what could be virtually universal affluence--in
short, that financially complex capitalism is inherently
flawed. (Minsky, 1986, p. 287; our emphasis)
Journal: Review of Political Economy
Pages: 496-511
Issue: 3
Volume: 25
Year: 2013
Month: 7
X-DOI: 10.1080/09538259.2013.807674
File-URL: http://hdl.handle.net/10.1080/09538259.2013.807674
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:3:p:496-511
Template-Type: ReDIF-Article 1.0
Author-Name: Jerome Maucourant
Author-X-Name-First: Jerome
Author-X-Name-Last: Maucourant
Author-Name: Sebastien Plociniczak
Author-X-Name-First: Sebastien
Author-X-Name-Last: Plociniczak
Title: The Institution, the Economy and the Market: Karl Polanyi's Institutional Thought for Economists
Abstract:
This paper aims to clarify the logical structure of Karl
Polanyi's concept of institution, especially with regard to his most
important contribution to political economy--the conception of
self-regulating markets as institutions. Although Polanyi did not provide
a well-developed concept of institution, this article argues that such a
concept exists in his work. Moreover, there is in Polanyi's work a
sophisticated institutionalist account of the self-regulating market that
has been largely overlooked as Polanyi does not present it explicitly.
Analyzing the economy as an institutionalized process, as Polanyi does,
reveals that the market is neither a natural nor a spontaneous
phenomenon--a conclusion that runs counter to conventional economic
thinking. Polanyi's approach enables us to view capitalism (the 'market
society' in Polanyi's language) through a highly specific cultural fact:
the fiction of the self-regulating market. This institutional perspective
needs to be reassessed beyond new-institutionalist theoretical
constructions.
Journal: Review of Political Economy
Pages: 512-531
Issue: 3
Volume: 25
Year: 2013
Month: 7
X-DOI: 10.1080/09538259.2013.807675
File-URL: http://hdl.handle.net/10.1080/09538259.2013.807675
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:3:p:512-531
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Title: The Review of Political Economy at 25: Past, Present and Future
Journal: Review of Political Economy
Pages: 533-543
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.830366
File-URL: http://hdl.handle.net/10.1080/09538259.2013.830366
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:533-543
Template-Type: ReDIF-Article 1.0
Author-Name: P. Sai-Wing Ho
Author-X-Name-First: P. Sai-Wing
Author-X-Name-Last: Ho
Title: Does Mill's case for infant industry protection capture Hamilton's and List's arguments for promoting industrial development?
Abstract:
AbstractMill's case for
infant-industry protection is widely regarded as capturing the arguments
by Hamilton and List. This paper argues that they are actually
analytically different. While all three were influenced by Smith's Wealth
of Nations, Mill took from it something different than the other two. His
endorsement passage for protection refers to a standalone industry.
Hamilton and List attached significance to the pin-making type of division
of labor at the economy-level but they emphasized the development of that
division as the activation of backward and forward production linkages, �
la Hirschman, with increasing diversification and differentiation of
occupations and industries. Mill only considered employing customs duties
in his passage, although in some personal correspondence in the 1860s he
mentioned a subsidy. Contrary to mainstream misrepresentations, Hamilton
and List did not restrict themselves to proposing customs duties, but
suggested both trade and non-trade interventions to activate linkages.
Mill's formulation focuses attention on very simple learning by doing to
establish the standalone industry. Thanks to their conception of the
development process, Hamilton and List appreciated the complexity of
technology acquisitions and devoted far more attention to that subject.
The implications of these differences for future research and policy
considerations are briefly discussed.
Journal: Review of Political Economy
Pages: 546-571
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837323
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837323
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:546-571
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Kinsella
Author-X-Name-First: Stephen
Author-X-Name-Last: Kinsella
Title: Was Ireland's Celtic Tiger Period Profit-led or Wage-led?
Abstract:
This paper examines the macroeconomic
performance of the Irish economy in the years leading up to the Celtic
Tiger period and afterward, from 1980 to 2011. The goal of the paper is to
determine how a severe recession in the 1980s could be followed so quickly
by the unprecedented boom years of the Celtic Tiger, and followed again by
the marked economic downturn since 2007. I build a Keynesian model of
growth that integrates effective demand and productivity regimes to allow
for the possibility that a redistribution of income can either spur or
retard growth, depending on whether the regime is wage-led or profit-led.
Using data for the Irish economy I test this model for wage-led or
profit-led growth, finding plausible evidence that the Celtic Tiger years
were, in fact, profit led.
Journal: Review of Political Economy
Pages: 572-585
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837324
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837324
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:572-585
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy P. Sharpe
Author-X-Name-First: Timothy P.
Author-X-Name-Last: Sharpe
Title: A Modern Money Perspective on Financial Crowding-out
Abstract:
AbstractThe withdrawal of
discretionary fiscal stimulus and a renewed emphasis on institutional and
'self-imposed' budgetary constraints are evidence that the imperative of
fiscal sustainability and sound accounting fundamentals continue to drive
fiscal policymaking within many advanced economies. To buttress the
urgency for fiscal sustainability, neo-liberals often draw upon financial
crowding-out theory. Despite an extensive literature, empirical
applications are often misspecified due to their failure to account for
different institutional arrangements. However, the policy responses of
national governments to the Global Financial Crisis have highlighted the
institutional disparities, presenting a unique opportunity for a rigorous
empirical investigation. This paper develops panel vector error correction
models for both sovereign and non-sovereign economies over the period 1999
to 2010 to examine financial crowding-out. The empirical evidence reveals
crowding-out effects in non-sovereign economies, but not within sovereign
economies.
Journal: Review of Political Economy
Pages: 586-606
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837325
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837325
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:586-606
Template-Type: ReDIF-Article 1.0
Author-Name: Georgios Argitis
Author-X-Name-First: Georgios
Author-X-Name-Last: Argitis
Author-Name: Yannis Dafermos
Author-X-Name-First: Yannis
Author-X-Name-Last: Dafermos
Title: Finance, Monetary Policy and the Institutional Foundations of the Phillips Curve
Abstract:
AbstractThe purpose of this
paper is to examine the influence of financial commitments on the
short-run Phillips curve, under different institutional structures of the
labour and product market, degrees of euphoria and ratios of firms' to
workers' outstanding debt. We develop a Post-Keynesian conflicting-claims
model that explicitly incorporates the impact of workers' and firms'
financial commitments on distribution conflict and inflation. We propose
different versions of the short-run Phillips curve for a debt-financed
economy. We explore the impact of monetary policy on the shape and the
position of the Phillips curve. We show that the inflation effects of
monetary policy cannot be identified without prior knowledge about the
institutional and financial structures of the economy, as well as about
borrowers' desired margins of safety.
Journal: Review of Political Economy
Pages: 607-623
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837326
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837326
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:607-623
Template-Type: ReDIF-Article 1.0
Author-Name: Thanasis Maniatis
Author-X-Name-First: Thanasis
Author-X-Name-Last: Maniatis
Author-Name: Costas Passas
Author-X-Name-First: Costas
Author-X-Name-Last: Passas
Title: Profitability Capital Accumulation and Crisis in the Greek Economy 1958--2009: a Marxist Analysis
Abstract:
AbstractThis study examines
the behavior of the main Marxian variables in the postwar Greek economy.
The different phases of the capital accumulation process are distinguished
and analyzed according to the movement of the rate of profit. The 'golden
age' of the 1958--74 period of high profitability and strong growth was
followed by the stagflation crisis of the 1970s and early 1980s. After
1985, and especially after 1991, the 'neoliberal solution' to the crisis
resulted in a modest recovery of profitability, capital accumulation and
output growth based exclusively on the huge increase in the rate of
exploitation for labor. When the stimulus to aggregate demand provided
from debt driven personal consumption and state deficit spending was
removed, the underlying structural crisis in the real economy manifested
itself fully in 2009 and after.
Journal: Review of Political Economy
Pages: 624-649
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837327
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837327
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:624-649
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Allain
Author-X-Name-First: Olivier
Author-X-Name-Last: Allain
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Author-Name: M.G. Hayes
Author-X-Name-First: M.G.
Author-X-Name-Last: Hayes
Title: Introduction to the Symposium
Journal: Review of Political Economy
Pages: 650-652
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837328
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837328
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:650-652
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Allain
Author-X-Name-First: Olivier
Author-X-Name-Last: Allain
Title: Effective Demand: Securing the Foundations
Abstract:
AbstractThis paper is one
of three contributions to a symposium commenting on papers previously
published by the other authors. My analysis of Chapter 3 of the General
Theory is that it built a bridge between the entrepreneurs' behaviour at
the microeconomic level and the closure of the system at the macroeconomic
level. I agree with Hartwig (2007) in many respects. The main divergence
between us concerns entrepreneurs' expectations, which can be related to
the overall economic situation (Hartwig's interpretation) or to their own
situation (my interpretation). Hayes (2007a), while he focused on
overlapping production periods, proposes a detailed analysis of the
entrepreneurs' behaviour. As a result, it seems to me that he doesn't
focus enough on the system closure aspects of the principle of effective
demand.
Journal: Review of Political Economy
Pages: 653-660
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837331
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837331
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:653-660
Template-Type: ReDIF-Article 1.0
Author-Name: M.G. Hayes
Author-X-Name-First: M.G.
Author-X-Name-Last: Hayes
Title: Effective Demand: Securing the Foundations
Abstract:
AbstractThis paper is one
of three contributions to a symposium commenting on papers previously
published by the other authors. Allain (Allain, O. (2009) Effective demand
and short-term adjustments in the General Theory, Review of
Political Economy, 21, pp. 1--22) argues that Keynes elides a
distinction between aggregate demand and global expenditure that is
necessary to explain the formation of price expectations by individual
entrepreneurs. Allain's conclusions depend upon redefinitions of aggregate
and effective demand and the consumption function. Hartwig (Hartwig, J.
(2007) Keynes vs. the Post Keynesians on the principle of effective
demand, European Journal of the History of Economic
Thought, 14, pp. 725--739) argues that entrepreneurs must take
into account the state of the economy as a whole, in order to form price
expectations independently and not as a market equilibrium determined by
aggregate supply and demand. This leaves demand price expectations to be
determined outside the principle of effective demand. Neither author does
full justice to Keynes's own treatment. We still need to agree by what
mechanism individual entrepreneurs form a collective and mutually
consistent state of expectation in The General Theory.
Journal: Review of Political Economy
Pages: 661-671
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837329
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837329
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:661-671
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Title: Effective Demand: Securing the Foundations
Abstract:
AbstractThis paper is one
of three contributions to a symposium commenting on papers previously
published by the other authors. I basically agree with Allain's (2009)
reconstruction of Keynes's model of effective demand from Chapter 3 of
The General Theory, except that I think that
entrepreneurs take the overall economic situation into account when
forming expectations as to how much demand will be forthcoming to them. I
also agree with Hayes (2007a) on the most important--and most
controversial--issues surrounding the principle of effective demand. Some
disagreement remains on the merits of the 'Swedish' method of comparing ex
ante expectations with ex post results and on the 'nature' of the
equilibrium represented by the point of effective demand: for Hayes, it is
a market equilibrium, while I regard it to be an expectational equilibrium
in the minds of entrepreneurs.
Journal: Review of Political Economy
Pages: 672-678
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837330
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837330
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:672-678
Template-Type: ReDIF-Article 1.0
Author-Name: Robert E. Prasch
Author-X-Name-First: Robert E.
Author-X-Name-Last: Prasch
Title: Aristotle, Adam Smith and Karl Marx: On Some Fundamental Issues in 21st Century Political Economy
Journal: Review of Political Economy
Pages: 679-682
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837321
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837321
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:679-682
Template-Type: ReDIF-Article 1.0
Author-Name: Gene Callahan
Author-X-Name-First: Gene
Author-X-Name-Last: Callahan
Title: Rethinking the Keynesian Revolution: Keynes, Hayek, and the Wicksell Connection
Journal: Review of Political Economy
Pages: 682-685
Issue: 4
Volume: 25
Year: 2013
Month: 10
X-DOI: 10.1080/09538259.2013.837322
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837322
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Handle: RePEc:taf:revpoe:v:25:y:2013:i:4:p:682-685
Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Reati
Author-X-Name-First: Angelo
Author-X-Name-Last: Reati
Title: Economic Policy for Structural Change
Abstract:
Starting from a conceptualization of
structural change as an uneven phenomenon punctuated by technological
revolutions that give rise to long-term movements of real and monetary
variables, i.e. long waves, this paper puts forth an explanation of
radical technical change. Then, drawing upon Post-Keynesian theory, the
neo-Schumpeterian school of techno-economic paradigms, and the work of
Luigi L. Pasinetti, we suggest guidelines for economic policy to manage
structural change and its consequences. While economic policy cannot by
itself fully tame the dynamics of structural change, it can ameliorate its
disruptive effects, firstly by helping us to manage the stagnation phase
of the long wave in order to avoid a deep depression; secondly by
preparing the way for a new long-wave and, thirdly, by facilitating the
establishment of the institutional conditions for the diffusion of the new
technological paradigm. The paper concludes by comparing these suggested
policies with those pursued by the dominant western economies after the
Second World War. We find that three broad factors-a misdiagnosis of the
nature of the crisis that began in the 1970s; a shift in power relations
that was strongly unfavorable to the working class; and the rise of
neoliberal ideology-led to the adoption of policies that had disastrous
social and economic consequences.
Journal: Review of Political Economy
Pages: 1-22
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2014.874180
File-URL: http://hdl.handle.net/10.1080/09538259.2014.874180
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:1-22
Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Boianovsky
Author-X-Name-First: Mauro
Author-X-Name-Last: Boianovsky
Author-Name: Ricardo Sol�s
Author-X-Name-First: Ricardo
Author-X-Name-Last: Sol�s
Title: The Origins and Development of the Latin American Structuralist Approach to the Balance of Payments, 1944-1964
Abstract:
The paper offers an historical account of
the origins and development of the Latin American structuralist approach
to the balance of payments between 1944 and 1964. We focus on the
contributions by Raul Prebisch, Celso Furtado and Juan Noyola, all of them
members of the United Nations Economic Commission for Latin America
(CEPAL) during the 1950s. Prebisch used the foreign trade multiplier
concept to distinguish the business cycle mechanisms at the 'centre' and
at the 'periphery'. Noyola introduced the notion of external
disequilibrium as a feature of the industrialization process. This was
further elaborated by Prebisch's formula connecting the relative rates of
growth to the ratio of income-elasticities of import. Furtado examined the
implications of the external demand constraint for economic growth, an
important element of the two-gap models of the 1960s. The main piece of
empirical structuralist research was the CEPAL 1957 report about Mexican
external disequilibrium elaborated by Furtado and Noyola, not published at
the time; we discuss that report in the context of the Mexican devaluation
of 1954.
Journal: Review of Political Economy
Pages: 23-59
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2013.874191
File-URL: http://hdl.handle.net/10.1080/09538259.2013.874191
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:23-59
Template-Type: ReDIF-Article 1.0
Author-Name: J. Felipe
Author-X-Name-First: J.
Author-X-Name-Last: Felipe
Author-Name: J.S.L. McCombie
Author-X-Name-First: J.S.L.
Author-X-Name-Last: McCombie
Title: The Aggregate Production Function: 'Not Even Wrong'
Abstract:
The foundations of the aggregate
production function were long ago thrown into doubt by problems of
aggregation and the Cambridge capital theory controversies. Yet the
aggregate production function, whether in the familiar form of the
Cobb-Douglas, the CES, or the translog, continues to be widely used in
both theoretical and applied analysis. The reason for its continued use
rests on the instrumental position that 'it works'. The aggregate
production function sometimes yields good statistical fits with plausible
estimates of the coefficients. However, for some time, it has been
realised that the existence of an underlying accounting identity can
explain the regression results, even if the aggregate production function
does not exist. This argument has been widely ignored. This paper, drawing
on a rhetorical approach, assesses why this is the case. It shows that the
few criticisms that have been made of the critique involve fundamental
misunderstandings that represent a failure of the economic method.
Journal: Review of Political Economy
Pages: 60-84
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2013.874192
File-URL: http://hdl.handle.net/10.1080/09538259.2013.874192
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:60-84
Template-Type: ReDIF-Article 1.0
Author-Name: James Yunker
Author-X-Name-First: James
Author-X-Name-Last: Yunker
Title: Capital Wealth Taxation: Theory and Application
Abstract:
Using an ls model
analysis, the economic effects of implementing a modest taxation rate on
capital wealth (3%) are found to be basically favorable: slightly higher
output, lower inequality as measured by various Gini coefficients, and
higher social welfare according to the three major social welfare
functions-Bentham, Nash and Rawls. Implementing capital wealth taxation
enables a compensating reduction in the labor-income taxation rate. The
single most important consequence of this change is increased labor output
among the wealthiest households, whose labor productivity is highest. Even
though labor output is reduced among less-wealthy households, the overall
effect on aggregate output is positive.
Journal: Review of Political Economy
Pages: 85-110
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2013.874193
File-URL: http://hdl.handle.net/10.1080/09538259.2013.874193
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:85-110
Template-Type: ReDIF-Article 1.0
Author-Name: Nuno O. Martins
Author-X-Name-First: Nuno O.
Author-X-Name-Last: Martins
Title: Sraffa on Fixed Capital, Money and the Phases of Capitalism
Abstract:
In this paper I address some elements in
Piero Sraffa's thinking that are connected to his conceptualization of the
phases of capitalism. Sraffa describes various stages of capitalism using
similar categories to the ones employed in the model of the economy
provided in Production of Commodities. This is done by distinguishing the
role of population, land and (circulating, intermediate and fixed) capital
in each stage. Sraffa changed his conceptualization of fixed capital over
the years, until he reached its final formulation. The conceptualizations
of fixed capital that Sraffa discusses, together with his remarks on money
which are made through an analogy with circulating and fixed capital,
provide some elements that shed light on Sraffa's view of the dynamics of
capitalism.
Journal: Review of Political Economy
Pages: 111-127
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2013.874194
File-URL: http://hdl.handle.net/10.1080/09538259.2013.874194
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:111-127
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Veronese Passarella
Author-X-Name-First: Marco Veronese
Author-X-Name-Last: Passarella
Title: Financialization and the Monetary Circuit: A Macro-accounting Approach
Abstract:
This paper aims to cross-breed the
standard monetary circuit accounting model with elements from the
Post-Keynesian literature. The goals are: (i) to analyse the implications
of credit-based household consumption fed by capital asset inflation for
the soundness of a pure credit-money economy of production; and (ii) to
provide a more sophisticated description of the working of modern
financial systems than the one grounded in the usual 'bank-based vs.
market based' distinction.
Journal: Review of Political Economy
Pages: 128-148
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2013.874195
File-URL: http://hdl.handle.net/10.1080/09538259.2013.874195
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:128-148
Template-Type: ReDIF-Article 1.0
Author-Name: Angelo Reati
Author-X-Name-First: Angelo
Author-X-Name-Last: Reati
Title: Structural Dynamics and Economic Growth
Journal: Review of Political Economy
Pages: 149-154
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2013.837332
File-URL: http://hdl.handle.net/10.1080/09538259.2013.837332
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:149-154
Template-Type: ReDIF-Article 1.0
Author-Name: Frank Roosevelt
Author-X-Name-First: Frank
Author-X-Name-Last: Roosevelt
Title: The Middle Class Fights Back: How Progressive Movements Can Restore Democracy in America
Journal: Review of Political Economy
Pages: 154-157
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2013.874196
File-URL: http://hdl.handle.net/10.1080/09538259.2013.874196
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:154-157
Template-Type: ReDIF-Article 1.0
Author-Name: Johann K. Jaeckel
Author-X-Name-First: Johann K.
Author-X-Name-Last: Jaeckel
Title: Capital, Exploitation and Economic Crisis
Journal: Review of Political Economy
Pages: 158-160
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2013.874197
File-URL: http://hdl.handle.net/10.1080/09538259.2013.874197
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:158-160
Template-Type: ReDIF-Article 1.0
Author-Name: Annalisa Rosselli
Author-X-Name-First: Annalisa
Author-X-Name-Last: Rosselli
Title: The Return to Keynes
Journal: Review of Political Economy
Pages: 160-164
Issue: 1
Volume: 26
Year: 2014
Month: 1
X-DOI: 10.1080/09538259.2013.874190
File-URL: http://hdl.handle.net/10.1080/09538259.2013.874190
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:1:p:160-164
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Dimitris P. Sotiropoulos
Author-X-Name-First: Dimitris P.
Author-X-Name-Last: Sotiropoulos
Title: Europe in Crisis: Introduction
Journal: Review of Political Economy
Pages: 167-170
Issue: 2
Volume: 26
Year: 2014
Month: 4
X-DOI: 10.1080/09538259.2014.881012
File-URL: http://hdl.handle.net/10.1080/09538259.2014.881012
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:2:p:167-170
Template-Type: ReDIF-Article 1.0
Author-Name: John Weeks
Author-X-Name-First: John
Author-X-Name-Last: Weeks
Title: Euro Crises and Euro Scams: Trade not Debt and Deficits Tell the Tale
Abstract:
The euro crisis has been typically presented as excessive fiscal
deficits leading to the accumulation of unsustainable public debts. This
debt and deficit diagnosis applied most notably in Greece and Italy, but
also in Portugal and Spain (the 'PIGS'). Implicit in much of the analysis,
and occasionally explicit, is the suggestion that these were not only
profligate but also lazy PIGS that spent beyond their means and abandoned
a commitment to international competitiveness. This article demonstrates
that the German export-led growth strategy generated large trade and
current account deficits throughout the eurozone in the 2000s. When the
global financial crisis struck the continent in 2008, these trade-based
deficits proved unsustainable. With the exception of Greece, neither
public debts nor fiscal deficits represented a major problem among
eurozone countries prior to 2008. The analysis leads to measures that
could have avoided the crisis of sovereign debt entirely, as well as
corrected the unsustainable trade balances in the euro zone. These
policies were not seriously considered, with the result that in the second
decade of the 21st century the future of the common currency is in
doubt.
Journal: Review of Political Economy
Pages: 171-189
Issue: 2
Volume: 26
Year: 2014
Month: 4
X-DOI: 10.1080/09538259.2014.881009
File-URL: http://hdl.handle.net/10.1080/09538259.2014.881009
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:2:p:171-189
Template-Type: ReDIF-Article 1.0
Author-Name: Daniela Gabor
Author-X-Name-First: Daniela
Author-X-Name-Last: Gabor
Title: Learning from Japan: The European Central Bank and the European Sovereign Debt Crisis
Abstract:
What shapes central banks' learning from the policy experiments of
their peers? Both economic ideas and organizational interests play
important roles. Thus, New Keynesian ideas led central banks to interpret
Japan's experience with quantitative easing (2001-2006) through the impact
on risk spreads, although the Japanese central bank never intended such
effects. In turn, scholars and policy-makers alike ignored one critical
lesson: successful policy innovations depend on banks' funding models. It
is argued here that this was a crucial omission because the shift to
market-based funding impairs the effectiveness of the traditional crisis
toolkit. Central banks must intervene directly in asset markets of
systemic importance for funding conditions, as the Bank of Japan did by
buying government bonds. Hence, market-based finance engenders a trade-off
between financial stability and institutional stability defined through
central bank independence. During critical periods, central banks cannot
preserve both. The ECB illustrates this trade-off well. Early in the
crisis, it outsourced financial stability to a (largely) market-dependent
banking system to protect its independence. With the introduction of
Outright Monetary Transactions in September 2012, the Bank recognized that
the market-based nature of European banking required outright purchases of
sovereign bonds. This new instrument gave the ECB additional powers to
shape national fiscal decisions in the name of an independence that no
longer has theoretical justifications.
Journal: Review of Political Economy
Pages: 190-209
Issue: 2
Volume: 26
Year: 2014
Month: 4
X-DOI: 10.1080/09538259.2014.881010
File-URL: http://hdl.handle.net/10.1080/09538259.2014.881010
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:2:p:190-209
Template-Type: ReDIF-Article 1.0
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Author-Name: Dimitris P. Sotiropoulos
Author-X-Name-First: Dimitris P.
Author-X-Name-Last: Sotiropoulos
Title: Rebalancing the Euro Area: The Costs of Internal Devaluation
Abstract:
This paper investigates the economic costs of rebalancing current
account positions in the Euro area by means of internal devaluation.
Internal devaluation relies on wage suppression in the deficit countries.
Based on an old Keynesian model we estimate a current account equation, a
wage-Phillips curve and an Okun's Law equation. All estimations are
carried out for a panel of twelve Euro area members. From the estimation
results we calculate the output costs of reducing current account
deficits. Greece, Ireland, Italy, Portugal and Spain (GIIPS) had, on
average, current account deficits of 8.4% of GDP in 2007. To eliminate
these current account deficits, a reduction of GPD by some 47% would be
necessary. Trade imbalances can be resolved in two ways: deflationary
adjustment in the deficit countries or inflationary adjustment in the
surplus countries. The economic costs of deflationary adjustment to those
countries are equivalent to the output loss of the Great Depression. An
adjustment of the surplus countries would increase growth and it would
come with higher inflation, but it would allow rebalancing without a Great
Depression in parts of Europe.
Journal: Review of Political Economy
Pages: 210-233
Issue: 2
Volume: 26
Year: 2014
Month: 4
X-DOI: 10.1080/09538259.2014.881011
File-URL: http://hdl.handle.net/10.1080/09538259.2014.881011
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:2:p:210-233
Template-Type: ReDIF-Article 1.0
Author-Name: Nadia Garbellini
Author-X-Name-First: Nadia
Author-X-Name-Last: Garbellini
Author-Name: Ariel Luis Wirkierman
Author-X-Name-First: Ariel Luis
Author-X-Name-Last: Wirkierman
Title: Pasinetti's 'Structural Change and Economic Growth': A Conceptual Excursus
Abstract:
A clear and organic exposition of Pasinetti's theoretical
framework of Structural Change and Economic Growth has
been prevented by misunderstandings and ambiguities concerning basic
categories and terminology. The pre-institutional character of the
approach, the nature of its equilibrium paths and the significance-and
normative character-of the 'natural' economic system are some of the most
controversial issues. The aim of this article is to present a conceptual
excursus of the model to establish a solid foundation for fruitful
discussions to be held with other Classical approaches.
Journal: Review of Political Economy
Pages: 234-257
Issue: 2
Volume: 26
Year: 2014
Month: 4
X-DOI: 10.1080/09538259.2014.881671
File-URL: http://hdl.handle.net/10.1080/09538259.2014.881671
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:2:p:234-257
Template-Type: ReDIF-Article 1.0
Author-Name: Gilberto Tadeu Lima
Author-X-Name-First: Gilberto Tadeu
Author-X-Name-Last: Lima
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Title: The Cost Channel of Monetary Transmission and Stabilization Policy in a Post-Keynesian Macrodynamic Model
Abstract:
This paper develops a macrodynamic model that takes into account
the potentially inflationary consequences of interest rate manipulations
through the cost channel of monetary transmission. Evaluations of the
macroeconomic implications of the cost channel are common in the
mainstream literature. But this literature uses supply-determined macro
models and provides standard optimizing microfoundations for the various
ways in which the interest rate can affect mark-ups, prices and ultimately
the form of the Phillips curve. Our purpose is to study the implications
of different Phillips curves, each embodying the cost channel and derived
from Post-Keynesian, cost-based-pricing microfoundations, in a
monetary-production economy. We focus on the impact of these Phillips
curves on macroeconomic stability and the consequent efficacy of
stabilization policy. Ultimately, our results suggest that the presence of
the cost channel is less significant for stabilization policy than the
general orientation of the policy regime. These results corroborate
earlier findings that, in a monetary-production economy, more orthodox
policy regimes are inimical to macro stabilization.
Journal: Review of Political Economy
Pages: 258-281
Issue: 2
Volume: 26
Year: 2014
Month: 4
X-DOI: 10.1080/09538259.2014.884358
File-URL: http://hdl.handle.net/10.1080/09538259.2014.884358
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:2:p:258-281
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Jossa
Author-X-Name-First: Bruno
Author-X-Name-Last: Jossa
Title: Marx, Lenin and the Cooperative Movement
Abstract:
Drawing upon the writings of Marx and Lenin, this article refutes
the widely shared but incorrect assumption that Marx and Lenin rejected
cooperation even as a mode of production for the transitional period. It
reviews Marx's belief that cooperatives would gradually supplant
capitalistic firms, and that the generalised growth of cooperation would
give rise to a new mode of production; the article also analyses Lenin's
1923 article on cooperation in which not only is cooperation described as
a major step in the transition to socialism, but even equated with
socialism at large. The hypotheses of this article are supported through a
close reading of these works and also shed light on numerous implications
arising from this reading.
Journal: Review of Political Economy
Pages: 282-302
Issue: 2
Volume: 26
Year: 2014
Month: 4
X-DOI: 10.1080/09538259.2014.881649
File-URL: http://hdl.handle.net/10.1080/09538259.2014.881649
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:2:p:282-302
Template-Type: ReDIF-Article 1.0
Author-Name: Nicholas M. Trebat
Author-X-Name-First: Nicholas M.
Author-X-Name-Last: Trebat
Author-Name: Carlos Aguiar De Medeiros
Author-X-Name-First: Carlos Aguiar
Author-X-Name-Last: De Medeiros
Title: Military Modernization in Chinese Technical Progress and Industrial Innovation
Abstract:
This paper assesses the impact of military-related programs on
Chinese technical progress since 1980. We argue that efforts to modernize
weapons production and integrate the civilian and military sectors of the
economy have increased China's innovation potential and led to an
improvement in the country's overall technological capabilities. Although
it is still too early to draw sweeping conclusions, China appears to be
following a road taken by other great powers before it, where the pursuit
of modern defense systems stimulates the development of advanced
technologies.
Journal: Review of Political Economy
Pages: 303-324
Issue: 2
Volume: 26
Year: 2014
Month: 4
X-DOI: 10.1080/09538259.2014.890461
File-URL: http://hdl.handle.net/10.1080/09538259.2014.890461
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:2:p:303-324
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Farrant
Author-X-Name-First: Andrew
Author-X-Name-Last: Farrant
Author-Name: Edward McPhail
Author-X-Name-First: Edward
Author-X-Name-Last: McPhail
Title: Can a Dictator Turn a Constitution into a Can-opener? F.A. Hayek and the Alchemy of Transitional Dictatorship in Chile
Abstract:
Commenting on the Pinochet regime,
Friedrich Hayek famously claimed in 1981 that he would prefer a 'liberal'
dictator to 'democratic government lacking liberalism.' Hayek's defense of
a transitional dictatorship in Chile was not an impromptu response. In
late 1960, in a little known BBC radio broadcast, Hayek suggested that a
dictatorial regime may be able to facilitate a transition to stable
limited democracy. While Hayek's comments about Pinochet have generated
much controversy, this paper neither provides a blanket condemnation of
his views (he did not advocate dictatorship as a first-best 'state of the
world') nor tries to excuse his failure to condemn the Pinochet junta's
human rights abuses, but instead provides a critical assessment of Hayek's
implicit model of transitional dictatorship.
Journal: Review of Political Economy
Pages: 331-348
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.932063
File-URL: http://hdl.handle.net/10.1080/09538259.2014.932063
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:331-348
Template-Type: ReDIF-Article 1.0
Author-Name: Guinevere Nell
Author-X-Name-First: Guinevere
Author-X-Name-Last: Nell
Title: The Alchemy of the Can Opener: How an Austrian Economist Found Himself Supporting Dictatorial Imposition of a Liberal Order
Abstract:
Why would Hayek, the great critic of
'rational constructivism' and defender of spontaneous orders, think a
transitional dictatorship could work? Here I attempt to dissect the
alchemy of 'turning a constitution into a can opener' as Farrant & McPhail
(2014) put it. Hayek argues against the imposition by an external source
of order upon a society. He stresses the importance of an evolving culture
and tradition, noting that they should be spontaneous orders not command
systems, and that the culture of a society must be accepting and
supportive of its institutions. Sometimes the culture is more important
than the formal institutions of a society for efficiency. So why would
Hayek argue that a transitional dictator could impose a constitution upon
the people? It will be argued here that if Hayek had pursued the
theoretical line set out in his Constitution of Liberty, he might have
responded to the situation in Chile differently.
Journal: Review of Political Economy
Pages: 349-357
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.932064
File-URL: http://hdl.handle.net/10.1080/09538259.2014.932064
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:349-357
Template-Type: ReDIF-Article 1.0
Author-Name: John Meadowcroft
Author-X-Name-First: John
Author-X-Name-Last: Meadowcroft
Author-Name: William Ruger
Author-X-Name-First: William
Author-X-Name-Last: Ruger
Title: Hayek, Friedman, and Buchanan: On Public Life, Chile, and the Relationship between Liberty and Democracy
Abstract:
This article places recent evidence of
Hayek's public defense of the Pinochet regime in the context of the work
of the other great twentieth-century classical liberal economists, Milton
Friedman and James M. Buchanan. Hayek's view that liberty was only
instrumentally valuable is contrasted with Buchanan's account of liberty
situated in the notion of the inviolable individual. It is argued that
Hayek's theory left him with no basis on which to demarcate the legitimate
actions of the state, so that conceivably any government action could be
justified on consequentialist grounds. Furthermore, Friedman's account of
freedom and discretionary power undermines Hayek's proposal that a
transitional dictatorship could pave the way for a genuinely free society.
It is contended that Hayek's defense of Pinochet follows from pathologies
of his theories of liberty and democracy.
Journal: Review of Political Economy
Pages: 358-367
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.932066
File-URL: http://hdl.handle.net/10.1080/09538259.2014.932066
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:358-367
Template-Type: ReDIF-Article 1.0
Author-Name: Theodore Burczak
Author-X-Name-First: Theodore
Author-X-Name-Last: Burczak
Title: Dictating Liberty
Abstract:
Andrew Farrant and Edward McPhail
demonstrate Hayek's willingness to support, under certain circumstances, a
transitional dictator who seeks to implement an institutional structure
conducive to liberty, understood to mean economic freedom. This comment
links this support to Hayek's mistaken rejection of democracy as a
constitutive component of freedom, which is the result of his
overestimation of the epistemological abilities of judges.
Journal: Review of Political Economy
Pages: 368-371
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.932069
File-URL: http://hdl.handle.net/10.1080/09538259.2014.932069
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:368-371
Template-Type: ReDIF-Article 1.0
Author-Name: Jon D. Wisman
Author-X-Name-First: Jon D.
Author-X-Name-Last: Wisman
Title: The Financial Crisis of 1929 Reexamined: The Role of Soaring Inequality
Abstract:
The financial crisis of 1929 that
triggered the Great Depression has been endlessly studied. Still there is
little consensus regarding what caused it. This article claims that wage
stagnation and exploding inequality fueled three dynamics that set the
stage for a financial crisis. First, consumption was constrained by the
smaller share of total income accruing to workers, thereby restricting
investment opportunities in the real economy. Flush with greater income
and wealth, the elite flooded financial markets with credit, helping keep
interest rates low and encouraging the creation of new credit instruments,
some of which recycled the rich's surplus assets as debt to those less
well off. Second, greater inequality pressured households to find ways to
consume more in order to maintain their relative social status, resulting
in reduced household saving, greater household debt, and possibly longer
work hours. Third, as the rich took larger shares of income and wealth,
they gained relatively more command over everything, including ideology.
Reducing taxes on the rich, favoring business over labor, and failing to
regulate newly evolving credit instruments flowed out of this ideology.
Journal: Review of Political Economy
Pages: 372-391
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.915153
File-URL: http://hdl.handle.net/10.1080/09538259.2014.915153
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:372-391
Template-Type: ReDIF-Article 1.0
Author-Name: Alexis Stenfors
Author-X-Name-First: Alexis
Author-X-Name-Last: Stenfors
Title: LIBOR as a Keynesian Beauty Contest: A Process of Endogenous Deception
Abstract:
This paper uses the Keynesian Beauty
Contest as a theoretical framework to analyse the London Interbank Offered
Rate (LIBOR) fixing mechanism, where the actual money market rate is seen
as a fundamental value towards which the LIBOR should aim. By treating the
LIBOR as the outcome of a particular kind of p-beauty contest game, in
which players (LIBOR banks) are guided by higher order beliefs, a process
is created whereby they are not solely dependent on their own incentives
and constraints. Instead, potential deception is generated endogenously
though the fixing process itself, resulting in systematic deviations of
the LIBOR from its fundamental value.
Journal: Review of Political Economy
Pages: 392-407
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.917824
File-URL: http://hdl.handle.net/10.1080/09538259.2014.917824
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:392-407
Template-Type: ReDIF-Article 1.0
Author-Name: Motohiro Okada
Author-X-Name-First: Motohiro
Author-X-Name-Last: Okada
Title: A Reassessment of Marx's Thought on Labour Exchange
Abstract:
This article reassesses Marx's thought on
labour exchange and illuminates its worth. In the Grundrisse and
subsequent pre-Capital writings, Marx presented arguments that attached
importance to worker subjectivity towards labour performance based on the
distinction between labour capacity and labour. This afforded insights
into the peculiarities of labour exchange that preclude market
determination of wages and other working conditions and necessitate the
intervention of class struggle and other socio-political factors in their
settlement. The significance of Marx's perspective is further elucidated
when compared with the classical tradition and the position of
neoclassical economics. Although his emphasis on worker autonomy receded
in Capital, his earlier arguments on labour exchange, it is posited,
remain highly relevant to understanding industrial relations in today's
capitalist economy.
Journal: Review of Political Economy
Pages: 408-425
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.923592
File-URL: http://hdl.handle.net/10.1080/09538259.2014.923592
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:408-425
Template-Type: ReDIF-Article 1.0
Author-Name: Kristina Spantig
Author-X-Name-First: Kristina
Author-X-Name-Last: Spantig
Title: Keynesian Dominance in Crisis Therapy
Abstract:
The 1930s' debate about the short-run
Keynesian response to crisis and Hayek's critique of its long-run
consequences has significant contemporary parallels. This article
examines, from a historical perspective, the Keynes-Hayek debate by
considering the development of Keynesian economic theory, its ascension
and application during financially sound times, the Hayekian critique, the
monetary counter-revolution, and the Keynesian renaissance in the wake of
the global financial crisis. It is shown that Keynesian fiscal measures
prevail over the Hayekian approach in the midst of a crisis leading to
rising inflation and public debt, depressed long-run growth and a new
crisis.
Journal: Review of Political Economy
Pages: 426-448
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.929235
File-URL: http://hdl.handle.net/10.1080/09538259.2014.929235
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:426-448
Template-Type: ReDIF-Article 1.0
Author-Name: John A. Cotsomitis
Author-X-Name-First: John A.
Author-X-Name-Last: Cotsomitis
Title: Demand-Side Characteristics of the Learning Economy: A Preliminary Assessment
Abstract:
The aim of the paper is to redress the
almost exclusive supply-side focus of the existing studies on the learning
economy. We first survey those strands of the economic literature that
highlight the importance of the demand-side for long-term growth,
following which we narrow our focus to a specific aspect of contemporary
aggregate demand-consumer demand for quality amenity-and the role it plays
in the emergence of the learning economy. We then go on to examine some
previously not considered preconditions that fuel the growth of the
learning economy, namely on the demand-side and dynamic feedback loops
between supply and demand.
Journal: Review of Political Economy
Pages: 449-473
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.937898
File-URL: http://hdl.handle.net/10.1080/09538259.2014.937898
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:449-473
Template-Type: ReDIF-Article 1.0
Author-Name: Zdravka Todorova
Author-X-Name-First: Zdravka
Author-X-Name-Last: Todorova
Title: Economics and Diversity
Journal: Review of Political Economy
Pages: 474-475
Issue: 3
Volume: 26
Year: 2014
Month: 7
X-DOI: 10.1080/09538259.2014.932059
File-URL: http://hdl.handle.net/10.1080/09538259.2014.932059
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:3:p:474-475
Template-Type: ReDIF-Article 1.0
Author-Name: John Davis
Author-X-Name-First: John
Author-X-Name-Last: Davis
Title: 'Pluralism' In Economics? A Symposium
Journal: Review of Political Economy
Pages: 477-478
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.950462
File-URL: http://hdl.handle.net/10.1080/09538259.2014.950462
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:477-478
Template-Type: ReDIF-Article 1.0
Author-Name: Amitava Krishna Dutt
Author-X-Name-First: Amitava Krishna
Author-X-Name-Last: Dutt
Title: Dimensions of Pluralism in Economics
Abstract:
Recent debates about the nature and desirability of pluralism in economics
suffer from a lack of clarity about the meaning of pluralism. This paper
attempts to remedy some aspects of this problem by distinguishing between
different dimensions of pluralism, that is, epistemological, ontological,
methodological, normative and prescriptive dimensions. Although, in
principle, these dimensions are distinct, they are difficult to keep apart
because of the relations that exist in terms of choices made in the
different dimensions. It is argued that the recognition of these
distinctions and relations allows for a resolution of some of the debates
about pluralism.
Journal: Review of Political Economy
Pages: 479-494
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.950461
File-URL: http://hdl.handle.net/10.1080/09538259.2014.950461
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:479-494
Template-Type: ReDIF-Article 1.0
Author-Name: John Davis
Author-X-Name-First: John
Author-X-Name-Last: Davis
Title: Pluralism and Anti-pluralism in Economics: The Atomistic Individual and Religious Fundamentalism
Abstract:
This short paper examines a possible connection between religion and
economics in terms of the parallelism between the atomistic individual
doctrine and the individual soul doctrine. The paper explores whether
resistance to pluralism in economics as a methodological practice might be
illuminated in terms of this connection. On this view, resistance to
pluralism in economics is not a matter of economists holding
methodological views about economics practice that are contrary to
pluralism, but is rather a kind of anti-pluralism reflecting an
intransigent defense of the atomistic individual view as a kind of core or
'untouchable' deep doctrine. Two arguments are advanced to demonstrate the
parallelism between the atomistic individual doctrine and the individual
soul doctrine.
Journal: Review of Political Economy
Pages: 495-502
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.950459
File-URL: http://hdl.handle.net/10.1080/09538259.2014.950459
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:495-502
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Skott
Author-X-Name-First: Peter
Author-X-Name-Last: Skott
Title: Pluralism, the Lucas Critique, and the Integration of Macroeconomics and Microeconomics
Abstract:
Mainstream macroeconomics has pursued 'micro founded' models based on the
explicit optimization by representative agents. The result has been a long
and wasteful detour. But elements of the Lucas critique are relevant, also
for heterodox economists. Challenging common heterodox views on
microeconomics and formalization, this paper argues that (i) economic
models should not be based purely on empirically observed regularities,
(ii) heterodox economists must be able to tell an integrated story about
goal-oriented micro behavior in a specific macro environment, and (iii)
relatively simple analytical models have an essential role to play.
Journal: Review of Political Economy
Pages: 503-515
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.950463
File-URL: http://hdl.handle.net/10.1080/09538259.2014.950463
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:503-515
Template-Type: ReDIF-Article 1.0
Author-Name: David Colander
Author-X-Name-First: David
Author-X-Name-Last: Colander
Title: The Wrong Type of Pluralism: Toward a Transdisciplinary Social Science
Abstract:
When heterodox economists talk of pluralism they are generally talking
about pluralism within the economics profession-they are asking: how can
we have a more pluralistic economics profession? This paper argues that
another, perhaps more useful, way to think of pluralism and economics is
from the perspective of all the social sciences. When considered in
reference to the social science profession rather than in reference to the
economics profession, the amount of pluralism increases significantly,
since different social sciences follow quite different methodologies. But
looking at pluralism from the social science perspective reveals a
different type of pluralism problem in social science. While there may be
plenty of pluralism within social science as a whole, there is a serious
question about whether it is appropriately distributed. This paper argues
that heterodox economists' agenda should be a greater blending of all the
social science departments. It summarizes proposals to do so on both the
undergraduate level and graduate level, and explains why supporting
variations of these proposals would be a strategy that would further the
objectives of most heterodox economists more than would their current
strategy of pushing for more pluralism in economics.
Journal: Review of Political Economy
Pages: 516-525
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.950460
File-URL: http://hdl.handle.net/10.1080/09538259.2014.950460
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:516-525
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Vera
Author-X-Name-First: Leonardo
Author-X-Name-Last: Vera
Title: The Simple Post-Keynesian Monetary Policy Model: An Open Economy Approach
Abstract:
Monetary policy with an inflation targeting rule is analyzed through a
simple small-scale Post-Keynesian model that incorporates open economy
issues. In contrast with previous Post-Keynesian attempts, the model
embodies policy authorities that are committed not only to hitting
inflation and/or output targets, but also to the achievement of the
external balance. To take account of the external balance objective, we
model the real exchange rate as an endogenous and moving target, with the
nominal exchange rate being the instrument of that target. The model shows
that in response to an adverse external shock the central bank has to
consider first the required real exchange rate adjustment that will
preserve the external balance, and secondly the level at which the
interest rate must be set in order to maintain inflation stabilization.
Keeping inflation to target requires higher interest rates and strong
reliance on the unemployment channel which, under certain circumstances,
also has adverse side effects on income distribution. We show that to deal
with an exogenous external shock a policy mix of real exchange rate
targeting and income distribution targeting outperforms inflation
targeting.
Journal: Review of Political Economy
Pages: 526-548
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.969547
File-URL: http://hdl.handle.net/10.1080/09538259.2014.969547
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:526-548
Template-Type: ReDIF-Article 1.0
Author-Name: Theodore Mariolis
Author-X-Name-First: Theodore
Author-X-Name-Last: Mariolis
Title: Falling Rate of Profit and Mass of Profits: A Note
Abstract:
This paper shows that the mass of profits may be strictly increasing even
when the rate of profit is strictly decreasing. Thus, a recent 'long-wave
version' of the falling rate of profit theory of crisis is called into
question.
Journal: Review of Political Economy
Pages: 549-556
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.969546
File-URL: http://hdl.handle.net/10.1080/09538259.2014.969546
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:549-556
Template-Type: ReDIF-Article 1.0
Author-Name: Germ�n David Feldman
Author-X-Name-First: Germ�n David
Author-X-Name-Last: Feldman
Title: Money, Prices and the Silver Industry during the Price Revolution
Abstract:
The discovery of American silver has been commonly viewed in the
literature as the moving force behind the sustained rise of prices
experienced by Western Europe from the early 16th to the mid-17th century.
However, the mechanical connection between the money supply and the
general price level implied by the Quantity Theory oversimplifies the
analysis of a period characterized by different trends, some of which
cannot be easily explained by the monetarist story: (i) Central Europe
silver mining boomed between 1451 and 1540 following a phase of scarcity
of money that was especially severe between the end of the 14th century
and the beginning of the 15th century; (ii) European prices started to
rise before American silver was significantly imported to the Continent;
(iii) the rapid expansion of American mining coincided with the decline of
the European silver industry (1540-1618); and finally (iv) Mexican and
Peruvian bullion production evidenced a downward course during the period
1628-1697, but no alteration in the rising trend of European prices
occurred in response. It is argued instead that the classical theory of
value and distribution, emphasizing costs of production as determinants of
the 'natural' value of commodities including precious metals, can
accommodate the facts in a more consistent manner than the monetarist
view.
Journal: Review of Political Economy
Pages: 557-573
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.969545
File-URL: http://hdl.handle.net/10.1080/09538259.2014.969545
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:557-573
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Aspromourgos
Author-X-Name-First: Tony
Author-X-Name-Last: Aspromourgos
Title: Keynes, Employment Policy and the Question of Public Debt
Abstract:
This article provides a simple formalization of income-expenditure
equilibrium in accordance with the Principle of Effective Demand, but
augmented to explicitly incorporate public debt. This is utilized to
explore the conditions required for simultaneous achievement of
full-employment growth and a sustainable public debt trajectory-the latter
understood as stabilization of the ratio of public debt to aggregate
income, at some desired level. In the spirit of Keynes's economics,
demand-led, full-employment growth, driven by government spending, is
reconciled with public debt sustainability so understood. The policy
implications, illustrative of Keynes's policy views, are then drawn out.
Journal: Review of Political Economy
Pages: 574-593
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.938440
File-URL: http://hdl.handle.net/10.1080/09538259.2014.938440
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:574-593
Template-Type: ReDIF-Article 1.0
Author-Name: Kevin P. Gallagher
Author-X-Name-First: Kevin P.
Author-X-Name-Last: Gallagher
Title: The Economics of Regulating Cross-border Finance: Two New Views
Abstract:
For much of the 20th century the dominant view in macroeconomics was that
cross-border finance needed to be regulated in order to balance the
'impossible trinity' first sketched by John Maynard Keynes in his two
books on monetary theory. The dominant view in development economics
during the same period was that cross-border capital flows need to be
regulated for similar reasons but also to mobilize domestic resources for
economic development. The view that capital mobility was something to be
constrained fell out of favor in mainstream economics by the 1980s and
1990s. The experience of numerous financial crises in the past 20 years
has spawned new economic theories that reintroduce the notion that
cross-border finance can cause financial instability. One strand of new
theory in this realm picks up from Ragnar Nurkse, Hyman Minsky, and
others, and has become popular in many emerging market capitals and in the
United Nations system. Another strand of new theory comes from modern
welfare economics and is gaining ground in mainstream economics, central
banks, and the Bretton Woods institutions. This paper examines these new
breakthroughs and traces them to their origins in economic thought.
Coupled with new econometric evidence on the efficacy of capital account
regulation, the regulation of capital flows is justified now more than
ever.
Journal: Review of Political Economy
Pages: 594-617
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.952904
File-URL: http://hdl.handle.net/10.1080/09538259.2014.952904
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:594-617
Template-Type: ReDIF-Article 1.0
Author-Name: Ernesto Screpanti
Author-X-Name-First: Ernesto
Author-X-Name-Last: Screpanti
Title: Progressive Taxation and the Distribution of Freedom
Abstract:
Freedom of choice in consumption activity can be represented by
opportunity sets that are bounded by both budget and time constraints. I
argue that, in a society in which income is distributed more unequally
than leisure time, a government aiming at leaving freedom distribution
unaltered should apply progressive taxation. Since incomes bind freedom
only partially when this is bound by time constraints, taxing the rich
reduces her/his freedom proportionally less than the reduction in freedom
caused by taxation of the poor. The degree of tax progressiveness will be
higher if the government aims at redistributing freedom from the rich to
the poor.
Journal: Review of Political Economy
Pages: 618-627
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.954345
File-URL: http://hdl.handle.net/10.1080/09538259.2014.954345
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:618-627
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Garnett
Author-X-Name-First: Robert
Author-X-Name-Last: Garnett
Author-Name: Kimmarie Mcgoldrick
Author-X-Name-First: Kimmarie
Author-X-Name-Last: Mcgoldrick
Title: A 'Big Think' Approach to Government Debt: Promoting Significant Learning in Introductory Macroeconomics
Abstract:
Drawing on Dee Fink's theory of significant learning, the authors present
a 'big think' learning module to supplement fiscal policy discussions in
introductory macroeconomics courses. Students are asked to consider a
salient, contentious question that can be addressed in meaningful ways
based on principles-level concepts and models, namely: 'In your judgment,
does the recent steep rise in the US debt-to-GDP ratio pose a serious
threat to the US economy? Why or why not?' To enhance students'
willingness and ability to engage this big think question, the module
provides open-ended preparatory exercises amenable to courses taught from
heterodox or mainstream perspectives. Unlike standard textbook treatments
which inadvertently thwart exploratory thinking and provide little support
for analyzing case-specific burdens and benefits of government borrowing,
the big think unit motivates students to think logically and creatively
about the debt-GDP relationship in the current US context.
Journal: Review of Political Economy
Pages: 628-647
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.955353
File-URL: http://hdl.handle.net/10.1080/09538259.2014.955353
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:628-647
Template-Type: ReDIF-Article 1.0
Author-Name: N. Cachanosky
Author-X-Name-First: N.
Author-X-Name-Last: Cachanosky
Author-Name: P. Lewin
Author-X-Name-First: P.
Author-X-Name-Last: Lewin
Title: Roundaboutness is Not a Mysterious Concept: A Financial Application to Capital Theory
Abstract:
We apply the EVA terminology to the concepts of roundaboutness and average
period of production in capital theory. By doing this we show that these
terms have a clear and well understood financial interpretation. A
financial application to capital theory helps to clarify obscure and
controversial economic terms.
Journal: Review of Political Economy
Pages: 648-665
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.957475
File-URL: http://hdl.handle.net/10.1080/09538259.2014.957475
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:648-665
Template-Type: ReDIF-Article 1.0
Author-Name: James Parisot
Author-X-Name-First: James
Author-X-Name-Last: Parisot
Title: Geopolitical Economy: After US Hegemony, Globalization and Empire
Journal: Review of Political Economy
Pages: 666-670
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.950446
File-URL: http://hdl.handle.net/10.1080/09538259.2014.950446
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:666-670
Template-Type: ReDIF-Article 1.0
Author-Name: Rosolino Candela
Author-X-Name-First: Rosolino
Author-X-Name-Last: Candela
Title: Institutional Diversity and Political Economy: The Ostroms and Beyond
Journal: Review of Political Economy
Pages: 670-674
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.950447
File-URL: http://hdl.handle.net/10.1080/09538259.2014.950447
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:670-674
Template-Type: ReDIF-Article 1.0
Author-Name: John Lodewijks
Author-X-Name-First: John
Author-X-Name-Last: Lodewijks
Title: Failure by Design: The Story Behind America's Broken Economy
Journal: Review of Political Economy
Pages: 674-676
Issue: 4
Volume: 26
Year: 2014
Month: 10
X-DOI: 10.1080/09538259.2014.950889
File-URL: http://hdl.handle.net/10.1080/09538259.2014.950889
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Handle: RePEc:taf:revpoe:v:26:y:2014:i:4:p:674-676
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas I. Palley
Author-X-Name-First: Thomas I.
Author-X-Name-Last: Palley
Title: Money, Fiscal Policy, and Interest Rates: A Critique of Modern Monetary Theory
Abstract:
This paper examines modern monetary theory (MMT). MMT is a restatement of
established Keynesian monetary macroeconomics and so there is nothing new
warranting a separate nomenclature. MMT over-simplifies the challenges of
attaining non-inflationary full employment by ignoring dilemmas posed by
the Phillips curve, maintaining real and financial sector stability, and
an open economy. Its policy recommendations take little account of
political economy difficulties, while its interest rate policy
recommendation would likely generate instability. On the plus side, MMT's
advocacy of expansionary fiscal policy is useful at a time when too many
policymakers are being drawn toward mistaken fiscal austerity.
Journal: Review of Political Economy
Pages: 1-23
Issue: 1
Volume: 27
Year: 2015
Month: 1
X-DOI: 10.1080/09538259.2014.957466
File-URL: http://hdl.handle.net/10.1080/09538259.2014.957466
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:1:p:1-23
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Tymoigne
Author-X-Name-First: Eric
Author-X-Name-Last: Tymoigne
Author-Name: L. Randall Wray
Author-X-Name-First: L. Randall
Author-X-Name-Last: Wray
Title: Modern Money Theory: A Reply to Palley
Abstract:
Modern Money Theory (MMT) has explained why monetarily sovereign
governments have a very flexible policy space that is unconstrained by
hard financial limits. It has provided institutional and theoretical
insights about the workings of economies with monetarily sovereign and
non-sovereign governments. It has also provided policy insights with
respect to financial stability, price stability and full employment. Yet
there have been many critics of MMT, including Palley (2014). Critiques of
MMT can be grouped into five categories: views about the origins of money
and the role of taxes in the acceptance of government currency, views
about fiscal policy, views about monetary policy, the relevance of MMT
conclusions for developing economies, and the validity of the policy
recommendations of MMT. This paper addresses Palley's criticism of MMT
using the circuit approach and national accounting identities, and by
progressively adding additional economic sectors.
Journal: Review of Political Economy
Pages: 24-44
Issue: 1
Volume: 27
Year: 2015
Month: 1
X-DOI: 10.1080/09538259.2014.957471
File-URL: http://hdl.handle.net/10.1080/09538259.2014.957471
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:1:p:24-44
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas I. Palley
Author-X-Name-First: Thomas I.
Author-X-Name-Last: Palley
Title: The Critics of Modern Money Theory (MMT) are Right
Abstract:
Eric Tymoigne and Randall Wray's (2014) defense of MMT leaves the MMT
emperor even more naked than before (excuse the Yogi Berra-ism). The
criticism of MMT is not that it has produced nothing new. The criticism is
that MMT is a mix of old and new, the old is correct and well understood,
while the new is substantially wrong. Among many failings, T&W fail to
provide an explanation of how MMT generates full employment with price
stability; lack a credible theory of inflation; and fail to justify the
claim that the natural rate of interest is zero. MMT currently has appeal
because it is a policy polemic for depressed times. That makes for good
politics but, unfortunately, MMT's policy claims are based on
unsubstantiated economics.
Journal: Review of Political Economy
Pages: 45-61
Issue: 1
Volume: 27
Year: 2015
Month: 1
X-DOI: 10.1080/09538259.2014.957473
File-URL: http://hdl.handle.net/10.1080/09538259.2014.957473
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:1:p:45-61
Template-Type: ReDIF-Article 1.0
Author-Name: Mimoza Shabani
Author-X-Name-First: Mimoza
Author-X-Name-Last: Shabani
Author-Name: Jan Toporowski
Author-X-Name-First: Jan
Author-X-Name-Last: Toporowski
Title: A Nobel Prize for the Empirical Analysis of Asset Prices
Abstract:
The 2013 Nobel Memorial Prize in Economics was awarded to Eugene Fama,
Robert Shiller, and Lars Peter Hansen for their empirical analysis of
asset prices. The paper reviews critically the work of the three
economists and highlights the differing conclusions that the three
researchers reached on the relatively narrow question of the rationality
of individual investors. The paper argues that there is a time
inconsistency in the idea that markets reveal information about the future
and concludes that, despite the sophistication of their statistical
analysis, the laureates have been unable to demonstrate how a
sophisticated financial economy can produce their empirical results.
Journal: Review of Political Economy
Pages: 62-85
Issue: 1
Volume: 27
Year: 2015
Month: 1
X-DOI: 10.1080/09538259.2014.961283
File-URL: http://hdl.handle.net/10.1080/09538259.2014.961283
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:1:p:62-85
Template-Type: ReDIF-Article 1.0
Author-Name: Emily Northrop
Author-X-Name-First: Emily
Author-X-Name-Last: Northrop
Title: The Climate Casino: Risk, Uncertainty, and Economics for a Warming World
Journal: Review of Political Economy
Pages: 86-89
Issue: 1
Volume: 27
Year: 2015
Month: 1
X-DOI: 10.1080/09538259.2014.974932
File-URL: http://hdl.handle.net/10.1080/09538259.2014.974932
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:1:p:86-89
Template-Type: ReDIF-Article 1.0
Author-Name: Michael E. Bradley
Author-X-Name-First: Michael E.
Author-X-Name-Last: Bradley
Title: The Darwin Economy: Liberty, Competition, and the Common Good
Journal: Review of Political Economy
Pages: 89-94
Issue: 1
Volume: 27
Year: 2015
Month: 1
X-DOI: 10.1080/09538259.2014.981069
File-URL: http://hdl.handle.net/10.1080/09538259.2014.981069
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:1:p:89-94
Template-Type: ReDIF-Article 1.0
Author-Name: Javier L�pez Bernardo
Author-X-Name-First: Javier
Author-X-Name-Last: L�pez Bernardo
Title: Private Equity at Work. When Wall Street Manages Main Street
Journal: Review of Political Economy
Pages: 94-96
Issue: 1
Volume: 27
Year: 2015
Month: 1
X-DOI: 10.1080/09538259.2015.981070
File-URL: http://hdl.handle.net/10.1080/09538259.2015.981070
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:1:p:94-96
Template-Type: ReDIF-Article 1.0
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: The Handbook of the Political Economy of Financial Crises
Journal: Review of Political Economy
Pages: 97-102
Issue: 1
Volume: 27
Year: 2015
Month: 1
X-DOI: 10.1080/09538259.2014.982349
File-URL: http://hdl.handle.net/10.1080/09538259.2014.982349
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:1:p:97-102
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Cesaratto
Author-X-Name-First: Sergio
Author-X-Name-Last: Cesaratto
Author-Name: Gary Mongiovi
Author-X-Name-First: Gary
Author-X-Name-Last: Mongiovi
Title: Pierangelo Garegnani, the Classical Surplus Approach and Demand-led Growth: Introduction to the Symposium
Journal: Review of Political Economy
Pages: 103-110
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1026092
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1026092
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:103-110
Template-Type: ReDIF-Article 1.0
Author-Name: Pierangelo Garegnani
Author-X-Name-First: Pierangelo
Author-X-Name-Last: Garegnani
Title: The Problem of Effective Demand in Italian Economic Development: On the Factors that Determine the Volume of Investment
Journal: Review of Political Economy
Pages: 111-133
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1026096
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1026096
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:111-133
Template-Type: ReDIF-Article 1.0
Author-Name: Massimo Pivetti
Author-X-Name-First: Massimo
Author-X-Name-Last: Pivetti
Title: Marx and the Development of Critical Political Economy
Abstract:
Although relevant analytical developments were provided over time by the
critique of economic theory, they did not succeed in inhibiting the
occurrence of a full-fledged revival of the neoclassical interpretation of
capitalism. The development of critical economics and its capability of
checking the influence of the dominant economic culture have been
especially prejudiced by the failed integration between the analyses of
Marx and Keynes. Following Keynes, once the 'inducement to invest' had
been singled out as the central question for the explanation of output
levels, one should have promptly acknowledged that on this very question
Marx's analysis was significantly richer and more relevant than
Keynes's--the richness and relevance of the former ultimately resting on
the great attention Marx dedicated to the complex question of the
influence of income distribution on the capitalists' incentive to invest.
It is argued in the article that through the study of this influence Marx
succeeded in putting together the essential elements of a critical theory
of effective demand, based on the principles and mechanisms that govern
the distribution of income between profits and wages.
Journal: Review of Political Economy
Pages: 134-153
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1010706
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1010706
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:134-153
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Cesaratto
Author-X-Name-First: Sergio
Author-X-Name-Last: Cesaratto
Title: Neo-Kaleckian and Sraffian Controversies on the Theory of Accumulation
Abstract:
Non-orthodox economists generally share the Keynesian Hypothesis of the
independence of investment from capacity savings, in the long run no less
than in the short run. This hypothesis marks an essential point of
difference from neoclassical theory. Keynes showed that within the limits
of the existing capacity utilisation, investment determines savings rather
than the other way around. How best to extend this conclusion to the long
run is the object of the current paper. The paper assesses the controversy
on demand-led growth that has taken place since the mid-1980s between
neo-Kaleckian and Sraffian authors. The Sraffian front may be divided into
a first and a second Sraffian position, the latter being the Sraffian
supermultiplier approach. I shall argue that this second approach is the
most promising framework for analysing economic growth.
Journal: Review of Political Economy
Pages: 154-182
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1010708
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1010708
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:154-182
Template-Type: ReDIF-Article 1.0
Author-Name: Attilio Trezzini
Author-X-Name-First: Attilio
Author-X-Name-Last: Trezzini
Title: Growth without Normal Capacity Utilization and the Meaning of the Long-Run Saving Ratio
Abstract:
The ratio of saving to income over a long period is analyzed here in a
theoretical context that takes account of the role of aggregate demand in
the growth process, and in which it is not assumed that the economy must
operate at a normal rate of capacity utilization in the long run. The very
notion of the long-run saving rate is therefore redefined with respect to
the one found in the literature where normal utilization is assumed. We
argue that the long-run saving ratio must be conceived as the result of
the interaction of many different influences and can therefore be similar
in radically different circumstances and different in similar
circumstances with respect both to the incentive to accumulate and to the
pattern of saving decisions.
Journal: Review of Political Economy
Pages: 183-200
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1010817
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1010817
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:183-200
Template-Type: ReDIF-Article 1.0
Author-Name: Eloy Fisher
Author-X-Name-First: Eloy
Author-X-Name-Last: Fisher
Title: The Crucible of Debt and Welfare Spending: Evidence from State-level Welfare Expenditures in the United States
Abstract:
This paper argues that financial pressures affect state public welfare
expenditures, controlling for economic effects, financial constraints
faced by state administrations and general economic conditions. It
develops a series of panel models for 17 states with the largest muni
markets (representing 71 per cent of all state-level public welfare
spending in the US or $326 billion) from 1998 to 2010. As economic
conditions worsen, government revenues decline. Coupled with marginal
increases in social spending, state governments face higher debt and
binding budget constraints. As investors realize the situation, muni bond
prices drop, yields increase and higher finance costs compel state
governments to decrease expenditures. These cuts are generally focused on
public welfare expenditures. Between 1998 and 2010, one percentage point
increases in short (1y), medium (5y) and longer (10y) bonds yields are
associated with 0.01 per cent, 0.03 per cent and 0.04 per cent decreases
in public welfare expenditures relative to gross state output.
Journal: Review of Political Economy
Pages: 201-217
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1012791
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1012791
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:201-217
Template-Type: ReDIF-Article 1.0
Author-Name: A.M.C. Waterman
Author-X-Name-First: A.M.C.
Author-X-Name-Last: Waterman
Title: Moral Philosophy or Economic Analysis? The Oxford Handbook of Adam Smith
Journal: Review of Political Economy
Pages: 218-229
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1021147
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1021147
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:218-229
Template-Type: ReDIF-Article 1.0
Author-Name: Edwin Dickens
Author-X-Name-First: Edwin
Author-X-Name-Last: Dickens
Title: Piketty's Capital in the Twenty-First Century: A Review Essay
Journal: Review of Political Economy
Pages: 230-239
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1026656
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1026656
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:230-239
Template-Type: ReDIF-Article 1.0
Author-Name: Johann K. Jaeckel
Author-X-Name-First: Johann K.
Author-X-Name-Last: Jaeckel
Title: Inside the Capitalist Firm: An Evolutionary Theory of the Principal-Agent Relation
Journal: Review of Political Economy
Pages: 240-242
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1010741
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1010741
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:240-242
Template-Type: ReDIF-Article 1.0
Author-Name: Martin Jones
Author-X-Name-First: Martin
Author-X-Name-Last: Jones
Title: A Cooperative Species: Human Reciprocity and Its Evolution
Journal: Review of Political Economy
Pages: 242-247
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1010749
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1010749
File-Format: text/html
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:242-247
Template-Type: ReDIF-Article 1.0
Author-Name: Dirk Ehnts
Author-X-Name-First: Dirk
Author-X-Name-Last: Ehnts
Title: Economics After the Crisis: Objectives and Means
Journal: Review of Political Economy
Pages: 247-250
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1010765
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1010765
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:247-250
Template-Type: ReDIF-Article 1.0
Author-Name: Joachim G�ntzel
Author-X-Name-First: Joachim
Author-X-Name-Last: G�ntzel
Title: Complexity and the Art of Public Policy: Solving Society's Problems from the Bottom Up
Journal: Review of Political Economy
Pages: 250-253
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1010767
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1010767
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:250-253
Template-Type: ReDIF-Article 1.0
Author-Name: Stavros A. Drakopoulos
Author-X-Name-First: Stavros A.
Author-X-Name-Last: Drakopoulos
Title: The Prosperity of Vice: A Worried View of Economics
Journal: Review of Political Economy
Pages: 254-256
Issue: 2
Volume: 27
Year: 2015
Month: 4
X-DOI: 10.1080/09538259.2015.1010768
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1010768
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:2:p:254-256
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Freitas
Author-X-Name-First: Fabio
Author-X-Name-Last: Freitas
Author-Name: Franklin Serrano
Author-X-Name-First: Franklin
Author-X-Name-Last: Serrano
Title: Growth Rate and Level Effects, the Stability of the Adjustment of Capacity to Demand and the Sraffian Supermultiplier
Abstract:
The paper presents a simple but complete formal version of the Sraffian
supermultiplier model in which (i) growth is led by the autonomous
components of demand that do not create capacity; (ii) private productive
investment is an induced expenditure; and (iii) income distribution is
exogenous. We show that the main results of the long-period and fully
adjusted versions of the model in terms of growth rate and level effects
are quite similar and therefore that such results in no way require the
full adjustment of capacity to demand. We then analyze a simple set of
sufficient dynamic local stability conditions that allow the long-period
positions to gravitate towards the fully adjusted position in which
capacity is adjusted to demand and that also provide the upper limit to
demand-led growth paths. Finally, we show how some critics of the model
have misinterpreted it as being supply-led and how this has led to a
further confusion between the analysis of the tendency towards a constant
value of the capacity-saving-determined warranted rate of growth and the
proper stability analysis of the opposite process of adjusting capacity to
demand (which tends to adjust the warranted rate endogenously to the
growth rate of autonomous demand).
Journal: Review of Political Economy
Pages: 258-281
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1067360
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1067360
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:258-281
Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Palumbo
Author-X-Name-First: Antonella
Author-X-Name-Last: Palumbo
Title: Studying Growth in the Modern Classical Approach: Theoretical and Empirical Implications for the Analysis of Potential Output
Abstract:
The main characteristics of the modern classical approach to growth are
studied with particular reference to the notion of 'potential output'. In
contrast to mainstream approaches, which consider potential output to be
exogenous and supply-determined, it is here regarded as endogenous and
path-dependent. A tentative analysis is carried out of the implications of
such a conception in empirical research, with special reference to the
effects of the crisis on potential growth. Mainstream estimation methods
(especially those used by international institutions) are shown to be
deeply influenced by theory, but also to provide dubious and puzzling
results. Very different empirical results and policy implications may be
obtained from the standpoint of the alternative theoretical framework
provided by the modern classical approach. On this basis, the paper
proposes that the long-term policy target should be set in terms of the
rate of unemployment rather than potential output or potential growth.
Journal: Review of Political Economy
Pages: 282-307
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1067366
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1067366
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:282-307
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Petri
Author-X-Name-First: Fabio
Author-X-Name-Last: Petri
Title: Neglected Implications of Neoclassical Capital-Labour Substitution for Investment Theory: Another Criticism of Say's Law
Abstract:
Recent mainstream macroeconomic models take Say's Law for granted. This
paper argues that the justification for this assumption is not found in
general equilibrium theory but in the 'neoclassical-synthesis' (and then
monetarist) criticism of Keynes, which relies in a fundamental way on a
treatment of investment that turns out to depend not only on neoclassical
capital-labour substitution (called into questioned by the Cambridge
controversies) but also on an assumption of full labour employment that on
the contrary should be a result of the analysis. This paper first
criticizes the attempt to justify a negative interest-elastic investment
function through adjustment costs, that is, without relying on traditional
neoclassical capital-labour substitution, with special attention on the
treatment in Romer's advanced textbook. Then it proceeds to its new
contribution, the demonstration that an endogenous determination of labour
employment raises questions about the capacity of decreases in the real
wage to raise employment even accepting neoclassical capital-labour
substitution, because when the latter is correctly understood the rate of
interest does not suffice to determine investment; hence, there is an
inevitable role for the accelerator (and Say's Law is thereby undermined).
This was perceived by Dornbusch and Fischer but they did not realize that
then reductions of real wages will reduce investment instead of raising
it. Thus, the 'neoclassical synthesis' reply to Keynes is undermined even
apart from the inconsistencies of neoclassical capital theory. So the
paper exposes a deficiency of the neoclassical arguments in support of a
tendency toward full employment, additional to the inconsistencies
revealed by the capital critique.
Journal: Review of Political Economy
Pages: 308-340
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1067367
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1067367
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:308-340
Template-Type: ReDIF-Article 1.0
Author-Name: Myeong Hwan Kim
Author-X-Name-First: Myeong Hwan
Author-X-Name-Last: Kim
Author-Name: Yongseung Han
Author-X-Name-First: Yongseung
Author-X-Name-Last: Han
Title: Investigating the Empirical Relationship between Polity and Economic Growth
Abstract:
The long-run relationship between polity change and economic growth has
been considered by a number of researchers, yet no clear consensus has
emerged concerning the causal link between these two important measures of
progress. This study used various estimation methods based on different
assumptions of the unknown error structure to investigate this
relationship in 154 countries from 1961 to 2007. First, we found no
globally significant relationship between polity change and economic
growth. However, we found several significant relationships at the local
level, including (a) a positive relationship in the 1980s and in Africa
and (b) a negative relationship in the 1970s and in Europe. Second, we
found that previous economic growth hinders democracy, albeit slightly; in
contrast, the influence of democracy on economic growth is negligible.
Journal: Review of Political Economy
Pages: 341-368
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1039296
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1039296
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:341-368
Template-Type: ReDIF-Article 1.0
Author-Name: Alexander Ebner
Author-X-Name-First: Alexander
Author-X-Name-Last: Ebner
Title: Marketization: Theoretical Reflections Building on the Perspectives of Polanyi and Habermas
Abstract:
The concept of marketization denotes the expansion of market coordination
into non-market coordinated social domains as well as its intensification
in already market-dominated settings. This article sets out to reconstruct
an institutionalist theory of marketization. As a point of departure, it
critically examines the related contributions of Karl Polanyi and J�rgen
Habermas. The analytical strength of Polanyi's theory of marketization
lies in the discussion of the contested embeddedness of markets and the
view of marketization as a politically shaped process of institutional
change. This concern with the societal expansion of markets is further
developed in the Habermasian thesis of the 'colonisation of the
lifeworld'. However, both Polanyi and Habermas lack a specification of the
social substance of markets and thus tend to underestimate the complexity
of marketization. To address this issue, the present article utilizes the
concept of collective goods to introduce new arguments about the
institutional dynamics of marketization in the diverse fields of society.
Journal: Review of Political Economy
Pages: 369-389
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1072315
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1072315
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:369-389
Template-Type: ReDIF-Article 1.0
Author-Name: Zdravka Todorova
Author-X-Name-First: Zdravka
Author-X-Name-Last: Todorova
Title: Social Provisioning within a Culture-Nature Life Process
Abstract:
Social provisioning is an amalgamation of social processes within a
broader culture-nature life process. This article contributes to the
literature on developing the concept of 'social provisioning' and explores
its scope by presenting theoretical and methodological contexts for social
provisioning. Then it delineates three categories of processes: biological
and geographical processes, processes that are usually analyzed as
personal characteristics or social categories (e.g., gender), and
processes defined around social activities (e.g., consumption). The system
of processes presented allows for diverse entry points to an analysis of
social provisioning beyond consumption, production and distribution.
Further, the system of processes transcends the culture-economy,
nature-economy, nature-culture and micro-macro dualisms in heterodox
economic theory.
Journal: Review of Political Economy
Pages: 390-409
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1058090
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1058090
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:390-409
Template-Type: ReDIF-Article 1.0
Author-Name: Chiara Piovani
Author-X-Name-First: Chiara
Author-X-Name-Last: Piovani
Author-Name: Nursel Aydiner-Avsar
Author-X-Name-First: Nursel
Author-X-Name-Last: Aydiner-Avsar
Title: The Gender Impact of Social Protection Policies: A Critical Review of the Evidence
Abstract:
Over the course of the neoliberal era, social protection policies have
been transformed dramatically; these changes have had profound gender
implications. Since the early 1980s, welfare state regimes around the
world have shifted away from 'universalism' towards 'targeting'. More
recently, there has been a further shift--especially in industrialized
countries--away from the male-breadwinner to the adult worker model.
Despite the progressivity implied by this latter shift, important issues
of gender inequality remain unresolved (even in Nordic countries where
levels of gender equity are higher than elsewhere). This paper presents a
critical review of social protection policies, examined from a gender
perspective. The analysis presents a conceptual framework on gender and
the welfare state, and examines the experience of major industrialized and
developing countries in engendering social policy. In particular, this
paper provides a careful examination of care-related programs, since this
domain is particularly important to understanding the gendered effects of
social protection policies. Finally, the gendered implications of the
global crisis and subsequent policy measures are examined.
Journal: Review of Political Economy
Pages: 410-441
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1063311
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1063311
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:410-441
Template-Type: ReDIF-Article 1.0
Author-Name: Satya prasad Padhi
Author-X-Name-First: Satya prasad
Author-X-Name-Last: Padhi
Title: The Role of Aggregate Demand in Kaldor's Late Contributions to Economic Growth: A Comment on Palumbo
Journal: Review of Political Economy
Pages: 442-449
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1076254
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1076254
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:442-449
Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Palumbo
Author-X-Name-First: Antonella
Author-X-Name-Last: Palumbo
Title: The Role of Aggregate Demand in Kaldor's Late Contributions to Economic Growth: A Reply
Journal: Review of Political Economy
Pages: 450-456
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1076258
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1076258
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:450-456
Template-Type: ReDIF-Article 1.0
Author-Name: Fabio Petri
Author-X-Name-First: Fabio
Author-X-Name-Last: Petri
Title: Post-Keynesian Economics: New Foundations
Journal: Review of Political Economy
Pages: 457-463
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1067031
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1067031
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:457-463
Template-Type: ReDIF-Article 1.0
Author-Name: Brad Andrew
Author-X-Name-First: Brad
Author-X-Name-Last: Andrew
Title: Exorbitant Privilege
Journal: Review of Political Economy
Pages: 463-466
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1067027
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1067027
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:463-466
Template-Type: ReDIF-Article 1.0
Author-Name: Jo Michell
Author-X-Name-First: Jo
Author-X-Name-Last: Michell
Title: The Collected Works of F. A. Hayek, Volume 7: Business Cycles Part I; The Collected Works of F. A. Hayek, Volume 8: Business Cycles Part II
Journal: Review of Political Economy
Pages: 466-471
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1067029
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1067029
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:466-471
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen Parsons
Author-X-Name-First: Stephen
Author-X-Name-Last: Parsons
Title: Freedom, Responsibility and Economics of the Person
Journal: Review of Political Economy
Pages: 471-475
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1067030
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1067030
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:471-475
Template-Type: ReDIF-Article 1.0
Author-Name: Ozan İsler
Author-X-Name-First: Ozan
Author-X-Name-Last: İsler
Title: The Price of Inequality: How Today's Divided Society Endangers Our Future
Journal: Review of Political Economy
Pages: 475-479
Issue: 3
Volume: 27
Year: 2015
Month: 7
X-DOI: 10.1080/09538259.2015.1067028
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1067028
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:3:p:475-479
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Boyer
Author-X-Name-First: Robert
Author-X-Name-Last: Boyer
Title: A World of Contrasted but Interdependent Inequality Regimes: China, United States and the European Union
Abstract:
A number of contemporary paradoxes warrant explanation. First, in China,
economic development has reduced poverty but dramatically increased
inequalities. Second, the finance-led growth regime of North America has
brought about a rupture with the Fordist Golden Age, causing a surge of
inequality because of quite specific spill-over effects from the economy
to policy. Third, the Eurozone crisis is often perceived as reflecting the
limits of welfare states and the ideal of social equality, but some
countries continue to exhibit an extended welfare system, moderate
inequalities and a dynamic innovation and production system. To explain
these paradoxes, this article applies a socio-economic approach based upon
the concept of inequality regimes. Conventional interpretations stress the
universality of the mechanisms that widen individual inequalities within
each nation-state but reduce the hierarchy of national standards of
living. This analysis, however, concludes that China, North America and
Europe do not follow the same trajectory at all, since they have developed
contrasting regimes of inequality that co-evolve and are largely
complementary at the global level. This suggests an alternative to the
hypothesis of an irreversible globalization of inequality.
Journal: Review of Political Economy
Pages: 481-517
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1065573
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1065573
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:481-517
Template-Type: ReDIF-Article 1.0
Author-Name: Jamie Morgan
Author-X-Name-First: Jamie
Author-X-Name-Last: Morgan
Title: Is Economics Responding to Critique? What do the UK 2015 QAA Subject Benchmarks Indicate?
Abstract:
The Quality Assurance Agency for Higher Education provides subject
benchmarks which inform but do not determine the content of university and
college academic programmes in the United Kingdom. These are revised every
few years and have recently been completed in economics for the first time
since the global financial crisis. Given the extensive criticism of
mainstream economics since the crisis, one might anticipate the benchmark
revisions to be extensive. However, this has not been the case. This
article explores why this is so. The analysis may also be considered of
broader significance because the conditions under which the review has
occurred involve general processes that will be familiar, albeit with
local variation, to heterodox economists elsewhere. In the conclusion, a
more fundamental reconstruction of the benchmarks is provided. These will
also be of interest as general orienting statements for a different kind
of economics.
Journal: Review of Political Economy
Pages: 518-538
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1084774
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1084774
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:518-538
Template-Type: ReDIF-Article 1.0
Author-Name: Bo Alles�e Christensen
Author-X-Name-First: Bo Alles�e
Author-X-Name-Last: Christensen
Title: Valuing Nature: Connecting Eco-Economy and the Capability Approach
Abstract:
This article analyses Kitchen and Marsden's eco-economy by asking whether
it manages to dissolve the untenable dualism of facts and values
associated with the positivistic distinction between normative and
positive economy. The analysis shows that a tension still exists within
eco-economy between accepting normative considerations and operating with
certain welfare-economic assumptions not embracing the entanglement
between facts and values. This tension is sought to be dissolved by
connecting eco-economy with Amartya Sen's capability approach, thereby
contributing to the future development of eco-economy exemplified by the
notion of entrepreneurism and policy-making.
Journal: Review of Political Economy
Pages: 539-564
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1084727
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1084727
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:539-564
Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Forges DavanzatI
Author-X-Name-First: Guglielmo Forges
Author-X-Name-Last: DavanzatI
Author-Name: Andrea Pacella
Author-X-Name-First: Andrea
Author-X-Name-Last: Pacella
Author-Name: Rosario Patalano
Author-X-Name-First: Rosario
Author-X-Name-Last: Patalano
Title: The Keynesian Features of Graziani's Monetary Theory of Production and Some Unresolved Issues
Abstract:
The aim of this article is twofold. First, it seeks to verify the elements
of affinity between Graziani's approach to the Monetary Theory of
Production and Keynes' Treatise on Money and his General Theory. It is
shown that two important theoretical elements, from the Treatise on Money,
enter Graziani's basic schema, namely the view of endogenous money supply
and the distribution process. At the same time, uncertainty and aggregate
demand--conceived as a crucial variable in the General Theory--can play a
significant role in the basic schema of the Monetary Theory of Production.
Second, the article sets out a critical reconstruction of Graziani's basic
schema emphasising the existence of 'open issues'- such as bank behaviour
and the 'paradox of profits'--relating to internal and external
inconsistencies.
Journal: Review of Political Economy
Pages: 565-584
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1082710
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1082710
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:565-584
Template-Type: ReDIF-Article 1.0
Author-Name: Iara Vigo de Lima
Author-X-Name-First: Iara
Author-X-Name-Last: Vigo de Lima
Author-Name: Danielle Guizzo
Author-X-Name-First: Danielle
Author-X-Name-Last: Guizzo
Title: An Archaeology of Adam Smith's Epistemic Context
Abstract:
Adam Smith played a key role in Foucault's archaeology of political
economy. This archaeology, which Foucault accomplished in The Order of
Things, is the focus of this article. Foucault may have disagreed with the
writings of the classical political economists but he widens our
perspective through new possibilities of understanding. It is very
illuminating to understand Smith's thinking as following a discursive
practice that economic thought shared with the knowledge of living beings
(natural history) and language (grammar). Foucault's archaeology
highlights some ontological and epistemological conditions that shed light
on some of the pillars of Smith's thinking: the centrality of exchange,
the division of labour and the labour theory of value. The proximity
between Newton and Smith is also examined in ontological and
epistemological terms which can be understood through an investigation of
that interdiscursivity practice. Beyond testing Foucault's considerations,
our aim is to demonstrate their potential for the current scholarship of
Smith's works. Foucault's archaeology of knowledge offers a range of
elements that warrants greater analysis by historians of economic thought.
Journal: Review of Political Economy
Pages: 585-605
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1082819
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1082819
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:585-605
Template-Type: ReDIF-Article 1.0
Author-Name: Andy Denis
Author-X-Name-First: Andy
Author-X-Name-Last: Denis
Title: Economic Calculation: Private Property or Several Control?
Abstract:
As the centenary of the 1917 Russian revolution approaches, it is worth
reviewing the past 100 years' discussion amongst economists on the
possibility--or otherwise--of economic planning under socialism. The
socialist calculation debate is of fundamental importance, not merely as a
specialist application of economic ideas, but as an investigation of the
foundations of economic activity. Every economic action is premised upon
calculation, every choice depends upon an assessment of the costs and
benefits of each alternative between which the agent must choose. The view
of that choice and its attendant calculation is constitutive of the
schools of thought--Marxian, neoclassical and Austrian--which have
contributed to the debate. An understanding of the calculation debate is
therefore required to understand how these paradigms stand in relation to
each other. This article addresses one aspect of that debate--the claim by
Austrian economists that socialism is impossible because the absence of
private property in the means of production precludes economic
calculation. The article suggests that several control rather than private
property is required for economic calculation, and that several control is
consistent with public ownership of the means of production. The Austrian
argument on this point, therefore, is without force.
Journal: Review of Political Economy
Pages: 606-623
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1083189
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1083189
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:606-623
Template-Type: ReDIF-Article 1.0
Author-Name: Gabriel A. Gim�nez Roche
Author-X-Name-First: Gabriel A.
Author-X-Name-Last: Gim�nez Roche
Author-Name: Albert Lwango
Author-X-Name-First: Albert
Author-X-Name-Last: Lwango
Author-Name: Guillaume Vuillemey
Author-X-Name-First: Guillaume
Author-X-Name-Last: Vuillemey
Title: Entrepreneurial Miscalculation and Business Cycles: How Interest Rate Targeting Distorts Capital Budgeting
Abstract:
This article, using Austrian Business Cycle Theory, shows how
entrepreneurs and business managers are vulnerable to central bank
monetary policies targeting interest rates. These policies distort market
signals used as inputs in widely used capital budgeting metrics. Their
reliance on nominal cash flows--together with their dependence on
market-based discount rates, themselves directly or indirectly influenced
by central bank policy--induces entrepreneurs to misestimate the real
future profitability and feasibility of investment projects. Based on
distorted market signals, entrepreneurs and business managers ignite an
unsustainable economic boom. The divergence between ex ante and ex post
profitable investment projects is widened because of business
miscalculation leading to a cluster of errors that eventually results in
the bursting of an economic boom. Therefore, although the exogenous
distortion of market signals is a necessary condition of a business cycle,
its ignition is purely endogenous.
Journal: Review of Political Economy
Pages: 624-644
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1084729
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1084729
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:624-644
Template-Type: ReDIF-Article 1.0
Author-Name: Bruno Jossa
Author-X-Name-First: Bruno
Author-X-Name-Last: Jossa
Title: Historical Materialism and Democratic Firm Management
Abstract:
This article starts from the premise that the precondition for the
unreserved acceptance of historical materialism and, hence, Marxism is the
belief that a new production mode will arise and take the place of
capitalism after its suppression. From this perspective, however, the new
production mode to rise from the ashes of capitalism is not the
Soviet-type central planning model, but a system of democratically managed
firms. If socialism is equated with worker control of firms, it is
contended, Marxism will become more viable than ever, although it will
need to be approached from a different viewpoint.
Journal: Review of Political Economy
Pages: 645-665
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1072314
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1072314
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:645-665
Template-Type: ReDIF-Article 1.0
Author-Name: Saverio M. Fratini
Author-X-Name-First: Saverio M.
Author-X-Name-Last: Fratini
Title: A Note on Reswitching and Intertemporal Prices
Abstract:
Bliss (Capital Theory and Distribution of Income,
Amsterdam/New York: North-Holland/Elsevier) claims that reswitching is
nothing but an 'optical illusion' due to the exclusion of non-stationary
price sequences from the analysis. This note develops this point. The
standard case for choice of techniques and reswitching is reformulated in
terms of Arrow-Debreu intertemporal prices and the conditions making these
prices stationary are highlighted separately. It is then shown that the
analysis of the choice of techniques in terms of 'switch points' requires
stationary conditions.
Journal: Review of Political Economy
Pages: 666-678
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1090762
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:666-678
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew Cole
Author-X-Name-First: Matthew
Author-X-Name-Last: Cole
Title: The Fissured Workplace: Why Work Became So Bad for So Many and What Can Be Done to Improve It
Journal: Review of Political Economy
Pages: 679-682
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1080469
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1080469
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:679-682
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Bianco
Author-X-Name-First: Antonio
Author-X-Name-Last: Bianco
Title: Casualties of Credit: The English Financial Revolution, 1620-1720
Journal: Review of Political Economy
Pages: 682-685
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1080468
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1080468
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:682-685
Template-Type: ReDIF-Article 1.0
Author-Name: Ramzi Mabsout
Author-X-Name-First: Ramzi
Author-X-Name-Last: Mabsout
Title: The Society of Equals
Journal: Review of Political Economy
Pages: 685-689
Issue: 4
Volume: 27
Year: 2015
Month: 10
X-DOI: 10.1080/09538259.2015.1080470
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1080470
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Handle: RePEc:taf:revpoe:v:27:y:2015:i:4:p:685-689
Template-Type: ReDIF-Article 1.0
Author-Name: Vladimir Smirnov
Author-X-Name-First: Vladimir
Author-X-Name-Last: Smirnov
Author-Name: Andrew Wait
Author-X-Name-First: Andrew
Author-X-Name-Last: Wait
Title: Contracts, incentives and organizations: Hart and Holmström Nobel Laureates
Abstract:
This article reviews the contribution of Hart and Holmström, the 2016 Nobel Laureates in economics. Holmström's work on the principal-agent problem answered questions as to what should (and should not) be included in an incentive contract. His work helped explain the simple structure of incentive contracts we typically observe in the real world. The models he developed have been used to address questions of CEO compensation, organizational design and optimal regulation. A key element of Hart's research focused on the question of what are the optimal boundaries of a firm (and indeed, what a firm actually is). In doing so he developed the incomplete-contracts framework, which has subsequently been used to explain many economic phenomena whenever renegotiation is important, including authority and decision-making structures in firms, why financial contracts look the way they do, and various questions in international trade and public policy.
Journal: Review of Political Economy
Pages: 493-522
Issue: 4
Volume: 29
Year: 2017
Month: 10
X-DOI: 10.1080/09538259.2017.1367142
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1367142
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:4:p:493-522
Template-Type: ReDIF-Article 1.0
Author-Name: Francisco A. Martínez-Hernández
Author-X-Name-First: Francisco A.
Author-X-Name-Last: Martínez-Hernández
Title: The Political Economy of Real Exchange Rate Behavior: Theory and Empirical Evidence for Developed and Developing Countries, 1960–2010
Abstract:
Empirical results of testing the PPP hypothesis have constantly shown that relative prices do not converge to the same level, either in the short or the long run. Therefore, the PPP explanation of the real exchange rate does not provide a reasonable measure of competitiveness at the international level. This article puts forth a different approach based on the works of Ricardo, Marx, Harrod and Shaikh. It argues that the real relative unit labor cost is the main factor explaining the long-run behavior of the real exchange rate. The second section of the article explains the theoretical underpinnings of our approach. The third section analyzes the role of the real interest rate differential in explaining real exchange rate misalignments. In the fourth section, we present a graphical analysis of the interrelation among the real effective exchange rate, the real unit labor cost ratio, the short-run real interest rate differential and the trade balance for 16 OECD countries, Taiwan and three developing countries for the period 1960–2010. The fifth section investigates the long-run relationship between the latter three indexes through co-integrating and error correction models using the ARDL–ECM framework. The last section provides our conclusions.
Journal: Review of Political Economy
Pages: 566-596
Issue: 4
Volume: 29
Year: 2017
Month: 10
X-DOI: 10.1080/09538259.2017.1382060
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1382060
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:4:p:566-596
Template-Type: ReDIF-Article 1.0
Author-Name: John Davis
Author-X-Name-First: John
Author-X-Name-Last: Davis
Title: Is Mainstream Economics a Science Bubble?
Abstract:
This article uses George Soros’ theory of boom–bust cycles to argue that mainstream economics, as built on Samuelson’s Foundations, followed a similar boom-bust cycle. It underwent a reflexive, positive feedback pattern of development before 1980 followed by a reflexive, negative feedback pattern of development after 1980, making it a science bubble. The positive feedback pattern was associated with the ‘misconception’ that when economics is framed as a natural science as per Samuelson, it improves its descriptive capacities as a science; the negative feedback pattern was associated with increasing recognition that this was a ‘misconception’ and the emergence of mainstream economics’ performative ambition—the idea that economics aims to construct the world in its own image rather than describe it. The article discusses how this latter aim is embodied in later game theory, ‘new’ behavioral economics and mechanism-design theory. Yet the vision of economics as a performative science is inconsistent with Samuelson’s natural science model of economics. Thus, mainstream economics turns out to be a science bubble much like many other mistaken, superseded research programs in the history of science.
Journal: Review of Political Economy
Pages: 523-538
Issue: 4
Volume: 29
Year: 2017
Month: 10
X-DOI: 10.1080/09538259.2017.1388983
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1388983
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:4:p:523-538
Template-Type: ReDIF-Article 1.0
Author-Name: Ramaa Vasudevan
Author-X-Name-First: Ramaa
Author-X-Name-Last: Vasudevan
Title: The Rise of the Global Corporation and the Polarization of the Managerial Class in the US
Abstract:
This article seeks to understand the sharp divergence in the earnings of top managerial executives in the US since the 1980s, within the historical context of the evolution and transformation of the corporate landscape through the 20th century. In particular, as US multinational corporations expanded their reach to the global market at the end of the 20th century and offshoring increased, globally dispersed US multinational corporations began to draw a rising share of their surpluses from their overseas affiliates. The article argues that this development is key to understanding the growing disparity between the earnings of the executives at the top of the managerial hierarchy and those lower down. The disproportionate rise of top managers’ wage income reflects their claim to a larger share of globally produced surplus. Discussions of the rising earnings of the managerial elite in the US need to take this historical process into account.
Journal: Review of Political Economy
Pages: 539-565
Issue: 4
Volume: 29
Year: 2017
Month: 10
X-DOI: 10.1080/09538259.2017.1406225
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1406225
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:4:p:539-565
Template-Type: ReDIF-Article 1.0
Author-Name: Sang B. Hahn
Author-X-Name-First: Sang B.
Author-X-Name-Last: Hahn
Author-Name: Dong-Min Rieu
Author-X-Name-First: Dong-Min
Author-X-Name-Last: Rieu
Title: Generalizing the New Interpretation of the Marxian Value Theory: A Simulation Analysis with Stochastic Profit Rate and Labor Heterogeneity
Abstract:
This article elucidates the relation between price and labor content in the context of generalizing the New Interpretation of Marxian value theory. We examine a generalized New Interpretation in a linear economic model introducing a differential value-creating capacity of different concrete labors, which regards price, value and the profit rate as random variables. Simulations are performed by constructing stochastic models with labor heterogeneity in two comparable ways. Considering that the standard New Interpretation suffers from the indeterminacy of the skilled labor reduction criterion without the assumption of an equalized rate of surplus value, it is hoped that the results of this analysis provide a research guideline for bridging the theoretical gap.
Journal: Review of Political Economy
Pages: 597-612
Issue: 4
Volume: 29
Year: 2017
Month: 10
X-DOI: 10.1080/09538259.2018.1424067
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1424067
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:4:p:597-612
Template-Type: ReDIF-Article 1.0
Author-Name: Jaylson Jair da Silveira
Author-X-Name-First: Jaylson Jair
Author-X-Name-Last: da Silveira
Author-Name: Gilberto Tadeu Lima
Author-X-Name-First: Gilberto Tadeu
Author-X-Name-Last: Lima
Title: Employee Profit-sharing and Labor Extraction in a Classical Model of Distribution and Growth
Abstract:
This article sets out a classical model of economic growth in which the distribution of income features the possibility of profit-sharing with workers, as firms choose periodically between two labor-extraction compensation strategies. Workers are homogeneous with regard to labor power, and firms choose to compensate them with either only a conventional wage or a share of profits on top of this conventional wage. Empirical evidence shows that labor productivity (i.e. labor extraction) in profit-sharing firms is higher than labor productivity in non-sharing firms. The frequency distribution of labor-extraction employee compensation strategies and labor productivity across firms is time-variant, being driven by satisficing imitation dynamics from which we derive two significant results. First, heterogeneity in labor-extraction compensation strategies across firms, and hence earnings inequality across workers can be a stable long-run equilibrium outcome. Second, although convergence to a long-run equilibrium may occur with either a falling or increasing proportion of profit-sharing firms, the share of net profits in income and the rates of net profit, capital accumulation and economic growth nevertheless all converge to the highest possible long-run equilibrium values.
Journal: Review of Political Economy
Pages: 613-635
Issue: 4
Volume: 29
Year: 2017
Month: 10
X-DOI: 10.1080/09538259.2018.1429149
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1429149
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:4:p:613-635
Template-Type: ReDIF-Article 1.0
Author-Name: Motohiro Okada
Author-X-Name-First: Motohiro
Author-X-Name-Last: Okada
Title: Revisiting the Böhm-Bawerk–Edgeworth Controversy: Early Neoclassical Economists and Labour Exchange
Abstract:
This article revisits the controversy between Böhm-Bawerk and Edgeworth. The crux of this debate revolving around value and cost lay in their views on labour exchange. Böhm-Bawerk and Edgeworth did not disagree on the basic principles underlying the causality between labour exchange and value-cost. Böhm-Bawerk stressed a decisive influence of social power relationships on labour time and Edgeworth apparently agreed. Böhm-Bawerk’s and Edgeworth’s observations on actual industrial relations and their theoretical arguments informing the controversy had variances. Such observation–theory discrepancies also appeared in their other work and were shared by other early neoclassical economists. Their efforts, with this contradiction, contributed to the moulding of a principle that de-individuates labour exchange. At the root of this process lay the fact that, despite their subjectivist approach, they failed to comprehend the distinctiveness of capitalistic labour exchange arising from worker subjectivity towards labour performance and employer countermeasures. The Böhm-Bawerk–Edgeworth controversy typically illustrates this crucial moment for the establishment of the neoclassical paradigm.
Journal: Review of Political Economy
Pages: 636-651
Issue: 4
Volume: 29
Year: 2017
Month: 10
X-DOI: 10.1080/09538259.2018.1442782
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1442782
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:4:p:636-651
Template-Type: ReDIF-Article 1.0
Author-Name: Katherine A. Moos
Author-X-Name-First: Katherine A.
Author-X-Name-Last: Moos
Title: The Facts and the Values of the Lucas Critique
Abstract:
In his influential 1976 paper, ‘Econometric Policy Evaluation: A Critique,’ Robert E. Lucas, Jr. presented the policy non-invariance argument, also known as the Lucas critique (LC). Drawing on the work of Putnam and Walsh, this paper discusses how the LC, like all works of scientific inquiry, contains values entangled with scientific facts, and argues that the Lucas critique devalued and revalued the highest values in macroeconomic science, a process known as ‘transvaluation.’ Most importantly, the LC worked to operationalize a shift in values that undermined belief in economists’ ability and responsibility to make meaningful interventions in the economy. Employing the language and concepts of continental philosophy, this paper discusses the meaning and effect of the LC on the values embedded in contemporary macroeconomic science.
Journal: Review of Political Economy
Pages: 1-25
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1586363
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1586363
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:1-25
Template-Type: ReDIF-Article 1.0
Author-Name: Tony Aspromourgos
Author-X-Name-First: Tony
Author-X-Name-Last: Aspromourgos
Title: What Is Supply-and-Demand? The Marshallian Cross Versus Classical Economics
Abstract:
This study argues that the supply-and-demand apparatus of the ‘Marshallian cross’ is an unsatisfactory representation of actual supply and demand forces, which are better characterized in the manner of the classical economists. Most particularly the rising supply function but also the conventional demand function, are shown to have no compelling general theoretical justification. There is no plausible basis for a presumption in favour of the former—other than the marginal productivity theory of factor pricing, which is itself unsatisfactory. Multiple reasons are suggested for the rise of the apparatus of supply-and-demand functions, notwithstanding its intrinsic implausibility. The classical conception of supply-and-demand is restated and reaffirmed.
Journal: Review of Political Economy
Pages: 26-41
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2018.1537646
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1537646
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:26-41
Template-Type: ReDIF-Article 1.0
Author-Name: Anders Fremstad
Author-X-Name-First: Anders
Author-X-Name-Last: Fremstad
Author-Name: Mark Paul
Author-X-Name-First: Mark
Author-X-Name-Last: Paul
Author-Name: Anthony Underwood
Author-X-Name-First: Anthony
Author-X-Name-Last: Underwood
Title: Work Hours and CO2 Emissions: Evidence from U.S. Households
Abstract:
The degrowth movement proposes worktime reduction policies to help high-income countries meet their climate goals while supporting full employment. However, the work hours elasticity of carbon emissions remains uncertain despite a growing number of empirical analyses. This paper estimates the impact of work hours on emissions using household data from the United States. We calculate the carbon intensity of goods using input-output tables from the Bureau of Economic Analysis, which we combine with spending data from the Bureau of Labor Statistics to estimate carbon footprints for a representative sample of U.S. households. There is strong evidence that households with longer work hours emit more CO2, but our household-level estimate of the work hours elasticity of carbon emissions is lower than most country-level estimates. Our results suggest that differences in work hours account for a small fraction of differences in per capita carbon footprints across high-income countries.Highlights
Households with longer work hours have significantly larger carbon footprints.Our estimated household-level work hours elasticity is smaller than most country-level estimates.Work hour reduction policies likely generate modest reductions in carbon emissions.
Journal: Review of Political Economy
Pages: 42-59
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1592950
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1592950
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:42-59
Template-Type: ReDIF-Article 1.0
Author-Name: Iara Vigo de Lima
Author-X-Name-First: Iara Vigo de
Author-X-Name-Last: Lima
Title: Foucault on the Marginal Revolution in Economics: Language and the Cartesian Legacy
Abstract:
Scholars have long debated the ‘revolutionary’ character of the ‘Marginal Revolution’ in economics, focusing on theoretical foundations, methodological devices, social context and political aspects. This article offers a new perspective by investigating ontological and epistemological conditions of that intellectual movement. This requires, in turn, a characterization of those conditions, for which purpose we will draw on Foucault's configurations of thought into ‘epistemes’ in The Order of Things. Although not mentioning those conditions, there have been few references in economics to Foucault's approach. They have mainly claimed that he neglected its importance because he did not see it as a ‘revolution’ in The Order of Things. It is argued here that he actually considered it a ‘revolution’ in The Archaeology of Knowledge. A revision of Foucault's account provides some ideas regarding deep philosophical conditions of the emergence of neoclassical theory and defies some usual interpretations of the circumstances that led to the mathematization of economics. The main conclusion is that its revolutionary character did not stem from a change of ontological beliefs, but—just as many historians of economics have defended—it was a methodological revolution. This study suggests a reinterpretation of that event, claiming that it resulted from a new conception of language and a crisis of Descartes's project of a mathematical unifying science. Going beyond that debate, these reflections proffer ideas that deserve an appraisal in economics.
Journal: Review of Political Economy
Pages: 60-74
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1586364
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1586364
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:60-74
Template-Type: ReDIF-Article 1.0
Author-Name: Graham White
Author-X-Name-First: Graham
Author-X-Name-Last: White
Title: Some Issues in the Sraffian View of Competition: Starting from Clifton
Abstract:
The article seeks to advance discussion about the nature of competition and of the ‘firm’ consistent with a classical-Sraffian perspective on relative prices and distribution. Discussion focuses primarily on the work of James Clifton published from the late 1970's. Clifton's insights have a direct bearing on issues at the heart of broader Sraffian research: how relative prices are anchored by the mobility of capital; whether the rate of profit should be interpreted as the exogenous distributive variable in the Sraffian price system; and, the forces which govern the ‘normal’ rate of profit, including the causal significance of the rate of growth. While Clifton's approach lends support to the interpretation of the rate of profit as a target rate of return, the article takes issue with Semmler's explanation as being endogenous to the price system. An alternative exogenous explanation of the target rate by reference to the rate of growth from Eichner is also considered, but rejected, despite the similarities between the insights of Clifton and Eichner into corporate pricing. Some useful implications from Clifton's analysis—as to the modeling of classical competition and gravitation—are also drawn out.
Journal: Review of Political Economy
Pages: 75-94
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2018.1530842
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1530842
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:75-94
Template-Type: ReDIF-Article 1.0
Author-Name: Giancarlo de Vivo
Author-X-Name-First: Giancarlo
Author-X-Name-Last: de Vivo
Title: Marx and Sraffa: A Comment on Gehrke and Kurz
Abstract:
This comment focuses on the assertion by Gehrke and Kurz (2018) that the origin of the equations which formed the backbone of Sraffa’s Production of Commodities by Means of Commodities is not related in any way to Marx, and particularly Marx’s reproduction schemes, as argued by the late Giorgio Gilibert and myself. This comment argues that the 2018 article by Gehrke and Kurz makes significant—but unacknowledged—retreats from positions previously presented by the authors, and that the relevance of Marx and his reproduction schemes for the origin of Sraffa’s (1960) work for Production of Commodities is beyond reasonable doubt.
Journal: Review of Political Economy
Pages: 95-99
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1530839
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1530839
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:95-99
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Gehrke
Author-X-Name-First: Christian
Author-X-Name-Last: Gehrke
Author-Name: Heinz D. Kurz
Author-X-Name-First: Heinz D.
Author-X-Name-Last: Kurz
Author-Name: Neri Salvadori
Author-X-Name-First: Neri
Author-X-Name-Last: Salvadori
Title: On the ‘Origins’ of Sraffa’s Production Equations: A Reply to de Vivo
Abstract:
In this rejoinder to de Vivo’s comment on Gehrke and Kurz (2018, ‘Sraffa’s constructive and interpretive work, and Marx.’ Review of Political Economy) we first ask what could possibly be meant by seeking to identify the ‘origins’ of Sraffa’s production equations. We then show that in his comment de Vivo has abandoned his original view, according to which the magnitudes in Sraffa’s ‘first equations’ are to be interpreted in Marxian (labour) value terms, without advising the reader. In addition, we show that his ‘new’ view is not supported by evidence from Sraffa’s papers. De Vivo misconstrues several propositions of Sraffa and misunderstands his ‘reduction method’ by means of which the values of commodities are reduced to some basic product or to labour. The criticisms de Vivo levels at the interpretation advocated by us are without any foundation.
Journal: Review of Political Economy
Pages: 100-114
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1530838
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1530838
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:100-114
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Sergio Levrero
Author-X-Name-First: Enrico Sergio
Author-X-Name-Last: Levrero
Title: On Sinha’s View of Sraffa’s Revolution in Economic Theory: A Review Essay
Abstract:
This review essay focuses on the interpretation by Sinha (2016) of the price system developed by Sraffa in Production of Commodities by Means of Commodities (PCMC). Contrary to the views put forward by Sinha, it shows that neither analytical aspects of PCMC nor Sraffa's unpublished manuscripts can be used to argue that Sraffa (1960) departs from the classical notion of normal prices.
Journal: Review of Political Economy
Pages: 115-123
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1592302
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1592302
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:115-123
Template-Type: ReDIF-Article 1.0
Author-Name: Ric Holt
Author-X-Name-First: Ric
Author-X-Name-Last: Holt
Title: The Age of Monopoly Capital: The Selected Correspondence of Paul A. Baran and Paul M. Sweezy, 1949–1964
Journal: Review of Political Economy
Pages: 124-127
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1592299
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1592299
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:124-127
Template-Type: ReDIF-Article 1.0
Author-Name: Randall G. Holcombe
Author-X-Name-First: Randall G.
Author-X-Name-Last: Holcombe
Title: James M. Buchanan and Liberal Political Economy: A Rational Reconstruction
Journal: Review of Political Economy
Pages: 127-130
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1591777
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1591777
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:127-130
Template-Type: ReDIF-Article 1.0
Author-Name: Ioana Negru
Author-X-Name-First: Ioana
Author-X-Name-Last: Negru
Title: The Oxford Handbook of Professional Economic Ethics
Journal: Review of Political Economy
Pages: 131-134
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1591772
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1591772
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:131-134
Template-Type: ReDIF-Article 1.0
Author-Name: Eugene Callahan
Author-X-Name-First: Eugene
Author-X-Name-Last: Callahan
Title: Competition, Economic Planning, and the Knowledge Problem
Journal: Review of Political Economy
Pages: 134-137
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1596566
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1596566
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:134-137
Template-Type: ReDIF-Article 1.0
Author-Name: Philippe van Basshuysen
Author-X-Name-First: Philippe
Author-X-Name-Last: van Basshuysen
Title: Radical Markets: Uprooting Capitalism and Democracy for a Just Society
Journal: Review of Political Economy
Pages: 137-141
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1596564
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1596564
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:137-141
Template-Type: ReDIF-Article 1.0
Author-Name: Larry Allen
Author-X-Name-First: Larry
Author-X-Name-Last: Allen
Title: The Foundations of Real-World Economics: What Every Student Needs to Know
Journal: Review of Political Economy
Pages: 142-144
Issue: 1
Volume: 31
Year: 2019
Month: 1
X-DOI: 10.1080/09538259.2019.1596565
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1596565
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:1:p:142-144
Template-Type: ReDIF-Article 1.0
Author-Name: Markus P. A. Schneider
Author-X-Name-First: Markus P. A.
Author-X-Name-Last: Schneider
Title: Angus Deaton’s Nobel Prize for Confronting Theory with Facts
Abstract:
Angus Deaton, recipient of the 2015 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is broadly recognized as an outstanding applied economist who is well deserving of the prize. He has made a myriad of important contributions—alone and with renowned co-authors—across many fields. In this review of his work, I argue that it is his methodological consistency and focus on the two-way connection between empirics and theory, together with his attention to detail of how things are measured, that support his recognition by his peers. Informed by a career of doing careful econometric work using household surveys—especially on consumption, development, well-being and health—in his popular writing, Deaton chooses to focus on the importance of institutions, history and other disciplines.
Journal: Review of Political Economy
Pages: 467-487
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1231865
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1231865
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:467-487
Template-Type: ReDIF-Article 1.0
Author-Name: Vítor Neves
Author-X-Name-First: Vítor
Author-X-Name-Last: Neves
Title: What Happened to Kapp’s Theory of Social Costs? A Case of Metatheoretical Dispute and Dissent in Economics
Abstract:
In the early 1970s Wilfred Beckerman and K. William Kapp engaged in a serious dispute. Although it focused on social costs, the dispute raised issues about the very foundations of economics. The differences in approach to social costs that this dispute exposed were so deep-rooted as to preclude (or at least hinder) any possibility of constructive dialogue. This article argues that the subsequent ‘conspiracy of silence’ against Kapp should be understood in terms of Kapp’s very different conception of economics as a social science. This issue is relevant to a broader discussion about the boundaries of pluralism in economics—how these boundaries are drawn and the conditions for a constructive dialogue among economists and with other social scientists.
Journal: Review of Political Economy
Pages: 488-503
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1208896
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1208896
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:488-503
Template-Type: ReDIF-Article 1.0
Author-Name: Matthew McCaffrey
Author-X-Name-First: Matthew
Author-X-Name-Last: McCaffrey
Title: Good Judgment, Good Luck: Frank Fetter’s Neglected Theory of Entrepreneurship
Abstract:
Frank Fetter’s contributions to entrepreneurship and the theory of the firm are usually overlooked although his original treatments are relevant to both the history of economic thought and contemporary entrepreneurship research. This article highlights three ways in which Fetter’s work adds to our understanding of the entrepreneurial process. First, entrepreneurs direct their enterprises through the careful delegation of authority to managers, thereby maintaining residual control over the firm; similar views were pioneered by Frank Knight and the Austrian economists who continue to study cognate problems like judgmental decision making and proxy-entrepreneurship. Second, Fetter foreshadows Knight’s influential distinction between risk and uncertainty by arguing that entrepreneurs bear uncertainty through their investment decisions. However, Fetter extends Knight’s work by explicitly considering the role that chance and luck play in entrepreneurial success, a problem still debated in entrepreneurship studies. Third, Fetter argues that scarcity implies the active investment of resources, and thus the need for entrepreneurship. This view hints at current research on entrepreneurial bricolage as well as work emphasizing investment rather than opportunity as the defining concept of entrepreneurship. It also provides the microfoundations for strategic entrepreneurship research.
Journal: Review of Political Economy
Pages: 504-522
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1207870
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1207870
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:504-522
Template-Type: ReDIF-Article 1.0
Author-Name: Daniele Girardi
Author-X-Name-First: Daniele
Author-X-Name-Last: Girardi
Author-Name: Riccardo Pariboni
Author-X-Name-First: Riccardo
Author-X-Name-Last: Pariboni
Title: Long-run Effective Demand in the US Economy: An Empirical Test of the Sraffian Supermultiplier Model
Abstract:
The Sraffian supermultiplier is a model of demand-led growth that stresses the importance of the autonomous components of aggregate demand (exports, public spending and autonomous consumption). This article tests empirically some major implications of the model employing macroeconomic data for the United States. In particular, we study the long-run relation between autonomous demand and output through cointegration analysis. The results suggest that autonomous demand and output are cointegrated and that autonomous demand exerts a long-run effect on output. There is also some evidence of simultaneous causality, especially in the short-run. Movements in autonomous demand and in the investment share are also found to be positively related, with Granger-causality going from Z to I/Y.
Journal: Review of Political Economy
Pages: 523-544
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1209893
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1209893
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:523-544
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael S. M. Ribeiro
Author-X-Name-First: Rafael S. M.
Author-X-Name-Last: Ribeiro
Author-Name: John S. L. McCombie
Author-X-Name-First: John S. L.
Author-X-Name-Last: McCombie
Author-Name: Gilberto Tadeu Lima
Author-X-Name-First: Gilberto Tadeu
Author-X-Name-Last: Lima
Title: Exchange Rate, Income Distribution and Technical Change in a Balance-of-Payments Constrained Growth Model
Abstract:
This article develops a formal model that accounts for the net effect of an exchange rate devaluation on the long-term balance-of-payments constrained growth rate. Such a model investigates how a currency devaluation impacts on the home country non-price competitiveness via changes in income distribution and the rate of technological innovation. The model is built upon two plausible hypotheses. First, it is assumed that the rate of technological innovation is directly related to the income elasticity of demand for exports and inversely related to the income elasticity of demand for imports. Second, it is assumed that a redistribution of income between labor and capital has an ambiguous direct impact on the income elasticities ratio. The model shows that the net impact of a currency devaluation on growth can go either way depending on the institutional framework of the economy.
Journal: Review of Political Economy
Pages: 545-565
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1205819
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1205819
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:545-565
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Keil
Author-X-Name-First: Jan
Author-X-Name-Last: Keil
Title: Depreciated Depreciation Methods? Alternatives to Sraffa’s Take on Fixed Capital
Abstract:
This article discusses the treatment of fixed capital in the classical theory of price. Sraffa uses non-linear depreciation of ‘physical’ capital that equalizes all annual profit rates individually, but violates the proportionality of monetary machine value reduction and physical use-up on an annual basis. One alternative is to apply simple linear depreciation that has equal annual fixed capital costs. The key for consistency is that the internal rate of return on fixed capital investments throughout the fixed asset lifetime must be equated with the normal profit rate. A second alternative is to use ‘monetary’ capital, where the ‘correct’ amortization charges depend on the ability of the accumulated depreciation fund to earn interest. Among these valid alternative methods are the original proposals of Marx and Torrens, which were dismissed falsely and prematurely by Neo-Ricardian economists. These alternatives are shown here to imply fundamentally different prices of production. For all methods, the formulas for deriving amortization charges and fixed capital prices of all vintages are derived. The article also illustrates how the system of Sraffian price equations can be modified to incorporate these methods.
Journal: Review of Political Economy
Pages: 566-589
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1222786
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1222786
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:566-589
Template-Type: ReDIF-Article 1.0
Author-Name: Brett Fiebiger
Author-X-Name-First: Brett
Author-X-Name-Last: Fiebiger
Title: Fiscal Policy, Monetary Policy and the Mechanics of Modern Clearing and Settlement Systems
Abstract:
Thomas Palley, Eric Tymoigne and Randall Wray recently debated neo-Chartalism in this journal. This article argues that the mechanics of modern clearing and settlement systems is important to understanding this debate. In the neo-Chartalist framework taxes and bond issuance function as part of monetary policy; it is an alternative method for draining reserves to obtain the overnight target rate. Abba Lerner’s Chartalist framework is much clearer on public finance, noting that the federal government can use alternative financing methods to pay for expenditures. Palley’s concerns with central bank ‘money financing’ and inflation are unpersuasive. The Old Keynesian ‘budget restraint– high-powered money relation’ offers limited insight into modern clearing and settlement systems. The article concludes that policymakers should embrace Lerner’s advice and view ‘money printing’ as a normal policy instrument to support functional finance.
Journal: Review of Political Economy
Pages: 590-608
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1225445
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1225445
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:590-608
Template-Type: ReDIF-Article 1.0
Author-Name: John Smithin
Author-X-Name-First: John
Author-X-Name-Last: Smithin
Title: Endogenous Money, Fiscal Policy, Interest Rates and the Exchange Rate Regime: Correction
Abstract:
This note suggests two corrections that might usefully be made to the analysis in an earlier article with the same title. The corrections have no direct bearing on the original argument (which had to do with disputes about modern money theory, or MMT) but do seem important for the future development of an alternative monetary theory.
Journal: Review of Political Economy
Pages: 609-611
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1225341
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1225341
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:609-611
Template-Type: ReDIF-Article 1.0
Author-Name: Jamie Morgan
Author-X-Name-First: Jamie
Author-X-Name-Last: Morgan
Title: Understanding Piketty’s capital in the twenty-first century
Journal: Review of Political Economy
Pages: 612-618
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1173967
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1173967
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:612-618
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Toporowski
Author-X-Name-First: Jan
Author-X-Name-Last: Toporowski
Title: Europe in Question and What to Do about It
Journal: Review of Political Economy
Pages: 618-622
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1173950
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1173950
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:618-622
Template-Type: ReDIF-Article 1.0
Author-Name: Collin G. Matton
Author-X-Name-First: Collin G.
Author-X-Name-Last: Matton
Title: Bankocracy
Journal: Review of Political Economy
Pages: 622-624
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1180896
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1180896
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:622-624
Template-Type: ReDIF-Article 1.0
Author-Name: C.R. McCann
Author-X-Name-First: C.R.
Author-X-Name-Last: McCann
Title: The Metaphysics of Capitalism
Journal: Review of Political Economy
Pages: 624-629
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1190498
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1190498
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:624-629
Template-Type: ReDIF-Article 1.0
Author-Name: Matias Vernengo
Author-X-Name-First: Matias
Author-X-Name-Last: Vernengo
Title: Crisis and Cycles in Economic Dictionaries and Encyclopaedias
Journal: Review of Political Economy
Pages: 630-631
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1199635
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1199635
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:630-631
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: A Note of Thanks
Journal: Review of Political Economy
Pages: 632-632
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1209894
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1209894
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:632-632
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Editorial Board
Journal: Review of Political Economy
Pages: ebi-ebi
Issue: 4
Volume: 28
Year: 2016
Month: 10
X-DOI: 10.1080/09538259.2016.1249138
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1249138
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:4:p:ebi-ebi
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Title: A System with Zero Reserves and with Clearing Outside of the Central Bank: The Canadian Case
Abstract:
In a number of ways, implementing monetary policy in Canada stands apart from monetary policy in most other industrial countries. Commercial banks and other participants to the main clearinghouse – the large-value transfer system (LVTS) – hold no reserves at the central bank. Clearing and settlement is both in real time and net, while only settlement occurs on the books of the central bank. The Bank of Canada does not conduct open-market operations and rarely intervenes in the repo market; and despite this, the collateralized overnight rate always remains within 2 or 3 basis points of the target interest rate. The paper explains why this is so by describing the setup of the Canadian clearing and settlement system, including the rules that have been put forward in case a bank defaults on its due payments before settlement occurs. Some puzzles that arose through the years are also discussed, as well as the unlikely prospect of introducing blockchain technology in the Canadian clearing and settlement system.
Journal: Review of Political Economy
Pages: 145-158
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1616922
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1616922
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:145-158
Template-Type: ReDIF-Article 1.0
Author-Name: Darrin Downes
Author-X-Name-First: Darrin
Author-X-Name-Last: Downes
Author-Name: Tarron Khemraj
Author-X-Name-First: Tarron
Author-X-Name-Last: Khemraj
Title: Foreign Exchange Pressure in Barbados: Monetary Approach or Monetary Dependence?
Abstract:
This paper tests competing ideas that account for the foreign exchange (FX) losses in Barbados in recent years. The conventional monetary and absorption approaches have motivated the explanation and policy proposals to date. However, this paper illustrates that the conventional theories fail to completely account for the external forces determining FX pressure. We propose a theory of monetary dependency by integrating the basic insight of the Prebisch–Singer hypothesis into an institutionally consistent monetary framework. The model implies that the narrow policy space in the short run is overwhelmed by the falling FX supply in the long term — hence the long-term FX constraint which prevents complete adjustment as predicted by the reflux mechanism. Although Barbados is the case study — given its recent program with the IMF — the model of monetary dependence is applicable, in general, to other small open developing and emerging economies. The econometric results indicate tenuous support for the monetarist theory, but stronger evidence in favor of the monetary dependency theory, and indirect support for the absorption approach. Consistent with the idea of external determination, the trade-weighted American dollar exchange rate and its conditional volatility are the strongest determinants.
Journal: Review of Political Economy
Pages: 159-177
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1621504
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1621504
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:159-177
Template-Type: ReDIF-Article 1.0
Author-Name: Eric Kam
Author-X-Name-First: Eric
Author-X-Name-Last: Kam
Author-Name: John Smithin
Author-X-Name-First: John
Author-X-Name-Last: Smithin
Author-Name: Aqeela Tabassum
Author-X-Name-First: Aqeela
Author-X-Name-Last: Tabassum
Title: The Long-Run Non-Neutrality of Monetary Policy: A General Statement in a Dynamic General Equilibrium Model
Abstract:
This paper provides an explanation of the long-run non-neutrality of monetary policy in a dynamic general equilibrium (DGE) model with microfoundations. If the rate of time preference is endogenous there is no natural rate of interest. Therefore, if the central bank follows an interest rate rule this will affect the real rate of interest in financial markets and thereby the real economy. In principle, there is a negative relationship between the real rate of interest and the rate of inflation. This turns out to be nothing other than the historical forced savings effect, or the 20th century Mundell-Tobin effect.
Journal: Review of Political Economy
Pages: 178-193
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1642551
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1642551
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:178-193
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Palley
Author-X-Name-First: Thomas
Author-X-Name-Last: Palley
Title: Unemployment and Growth: Putting Unemployment into Post Keynesian Growth Theory
Abstract:
Post Keynesian (PK) growth models typically fail to model unemployment. That shows up in the absence of an equilibrium condition requiring the growth of employment to equal labor-supply growth. Consequently, the models can have an imploding or exploding unemployment rate. The underlying analytical problem is failure to resolve the Harrod (1939)–Solow (1956) knife-edge problem. This paper shows how that knife-edge problem can be resolved via a Kaldor–Hicks technological progress function. It applies the concept to several different PK growth models. In the Harrod, super-multiplier, Cambridge, and neo-Kaleckian models the warranted rate rules the roost and natural rate forces have no impact on the equilibrium growth rate. However, in a modified neo-Kaleckian model, with labor market distribution conflict, both warranted rate and natural rate forces impact steady state growth.
Journal: Review of Political Economy
Pages: 194-215
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1644729
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1644729
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:194-215
Template-Type: ReDIF-Article 1.0
Author-Name: Sandye Gloria
Author-X-Name-First: Sandye
Author-X-Name-Last: Gloria
Title: From Methodological Individualism to Complexity: The Case of Ludwig Lachmann
Abstract:
It is argued in this paper that strict methodological individualism (MI) is a limit to progress in Austrian economics. It is possible to find already in Menger, in the older Hayek, and in the next generation of radical subjectivists led by Lachmann, the seeds of a distinct ontological and methodological position that may offer an interesting prospect of developing this school of thought. This alternative path suggests the replacement of strict MI with institutional individualism, compatible with the concept of emergence and all its ontological and methodological implications. It implies redefining the Mengerian project as part of the complexity economics paradigm. Lachmann is the Austrian author whose project is the most explicitly oriented toward this possibility. This paper does not aim to rediscover the relevance and originality of Lachmann's work, the second Austrian revival of the new millennium has indeed a lachmannian flavor. The aim is rather to provide a coherent framework for the dispersed recent work, which more or less explicitly links Austrian economics with complexity.
Journal: Review of Political Economy
Pages: 216-232
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1662153
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1662153
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:216-232
Template-Type: ReDIF-Article 1.0
Author-Name: C. Sardoni
Author-X-Name-First: C.
Author-X-Name-Last: Sardoni
Title: Investment and Saving in a Dynamic Context: The Contributions of Athanasios (Tom) Asimakopulos
Abstract:
In the 1980s, Asimakopulos criticized both Kalecki and Keynes for the way they dealt with the problem of the investment multiplier. Kalecki's and Keynes's insufficient attention to the time dimension of the multiplier process led them to overlook some aspects of the relation between saving and investment and underestimate the importance of financing investment, especially with regard to the problem of the conversion of the firms' short-term loans into long-term loans. The paper looks at these problems by carrying out the analysis in a more formal way than Asimakopulos did. In a dynamic analytical context which takes explicit account of the time dimension of processes, the economy's propensity to save can affect investment through its effect on the long-term interest rate. Acknowledging this, however, does not imply the rejection of the view that investment ‘comes first’: it is not saving that determines investment, but the other way around.
Journal: Review of Political Economy
Pages: 233-246
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1662144
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1662144
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:233-246
Template-Type: ReDIF-Article 1.0
Author-Name: P. Sai-wing Ho
Author-X-Name-First: P.
Author-X-Name-Last: Sai-wing Ho
Title: Re-Examining the Development of Hirschman’s Linkage Analysis with Detection of Smithian Flavor
Abstract:
Hirschman’s production linkage (PL) framework has enjoyed a revival of interest since the 1980s, but its complexity and richness have been continually underappreciated. This paper clarifies these, especially the role played by joint PLs, and includes some Smithian flavor, in that the activation of PLs is analogous to extending the division of labor in an economy, and can raise productivity and augment wealth accumulation à la Smith. Consumption linkages (CLs) add demand-side considerations and could reinforce the cumulative nature of joint PL by endogenizing market-size expansion. Barriers posed by ‘technological strangeness’ could prevent PL activation and warrant the use of industrial/technology policies. Hirschman also recommended sensible import substitution, interweaved with export promotion. These policies are examples of fiscal linkages that accord a role for the state to support PL and CL activation. Brief comparisons and contrasts are made with the global value chain research framework. Applying Hirschman’s framework to conduct case studies entails interdisciplinary research into details of socioeconomic settings associated with the success or failure of development. The concepts of complementarities and external economies are central, although there are additional dimensions to be studied and interfaces between them to be explored.
Journal: Review of Political Economy
Pages: 247-270
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1635366
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1635366
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:247-270
Template-Type: ReDIF-Article 1.0
Author-Name: Olivier Blanchard
Author-X-Name-First: Olivier
Author-X-Name-Last: Blanchard
Author-Name: Emiliano Brancaccio
Author-X-Name-First: Emiliano
Author-X-Name-Last: Brancaccio
Title: Crisis and Revolution in Economic Theory and Policy: A Debate
Abstract:
The following is the transcript of a debate, entitled ‘Pensare un’alternativa’ (Thinking of an Alternative), between Olivier Blanchard, former Chief Economist of the International Monetary Fund and a leading exponent of mainstream macroeconomics, and Emiliano Brancaccio, author of the book Anti-Blanchard and advocate of ‘The Economists’ Warning’ against European deflationary policies. The debate examines, from two different theoretical perspectives, the global great recession, the Eurozone crisis, the effects of austerity and deflation, increased social inequality, and political conflict. It took place at the Giangiacomo Feltrinelli Foundation in Milan, Italy, on 19 December 2018, and was moderated by the journalist Pietro Raitano.
Journal: Review of Political Economy
Pages: 271-287
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1644730
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1644730
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:271-287
Template-Type: ReDIF-Article 1.0
Author-Name: Paul May
Author-X-Name-First: Paul
Author-X-Name-Last: May
Title: The Vanishing Middle Class: Prejudice and Power in a Dual Economy
Journal: Review of Political Economy
Pages: 288-290
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1644732
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:288-290
Template-Type: ReDIF-Article 1.0
Author-Name: Michalis Nikiforos
Author-X-Name-First: Michalis
Author-X-Name-Last: Nikiforos
Title: Financial Deepening and Post-Crisis Development in Emerging Markets: Current Perils and Future Dawns
Journal: Review of Political Economy
Pages: 290-295
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1644733
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1644733
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:290-295
Template-Type: ReDIF-Article 1.0
Author-Name: Paul May
Author-X-Name-First: Paul
Author-X-Name-Last: May
Title: The Great Convergence: Information Technology and the New Globalization
Journal: Review of Political Economy
Pages: 295-297
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1644736
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1644736
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:295-297
Template-Type: ReDIF-Article 1.0
Author-Name: Shaianne T. Osterreich
Author-X-Name-First: Shaianne T.
Author-X-Name-Last: Osterreich
Title: Feminism, Capitalism, and Critique: Essays in Honor of Nancy Fraser
Journal: Review of Political Economy
Pages: 297-299
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1644737
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:297-299
Template-Type: ReDIF-Article 1.0
Author-Name: Edwin Dickens
Author-X-Name-First: Edwin
Author-X-Name-Last: Dickens
Title: Banks and Finance in Modern Macroeconomics: A Historical Perspective
Journal: Review of Political Economy
Pages: 299-304
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1644742
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1644742
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:299-304
Template-Type: ReDIF-Article 1.0
Author-Name: Charles M. A. Clark
Author-X-Name-First: Charles M. A.
Author-X-Name-Last: Clark
Title: Pope Francis and the Caring Society
Journal: Review of Political Economy
Pages: 304-311
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1644743
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1644743
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:304-311
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Review of Political Economy
Pages: 313-313
Issue: 2
Volume: 31
Year: 2019
Month: 4
X-DOI: 10.1080/09538259.2019.1694796
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1694796
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:2:p:313-313
Template-Type: ReDIF-Article 1.0
Author-Name: Federico Bassi
Author-X-Name-First: Federico
Author-X-Name-Last: Bassi
Title: Aggregate demand, sunk costs and discontinuous adjustments in an amended new consensus model
Abstract:
In standard new consensus macroeconomics models, the impact of shocks disappears until the economy reaches a time-independent steady-state equilibrium. Introducing sunk costs and capital indivisibilities in capacity adjustment decisions implies the rejection of asymptotic stability and a reconsideration of the relevance and usefulness of traditional steady-state analysis based on a fixed and exogenous ‘center of gravity’. Moreover, effective demand and Keynesian discretionary policies regain a central role in economic policy by determining the transient equilibriums that emerge endogenously.
Journal: Review of Political Economy
Pages: 313-335
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1199397
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1199397
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:313-335
Template-Type: ReDIF-Article 1.0
Author-Name: Noah Quastel
Author-X-Name-First: Noah
Author-X-Name-Last: Quastel
Title: Ecological Political Economy: Towards a Strategic-Relational Approach
Abstract:
This article identifies three distinct traditions in what might be described as ‘ecological political economy’. First, a ‘Promethean’ approach posits that capitalism has a relentless drive towards growth and bears responsibility for the wholesale transformation of nature. Second, critics of sustainable capitalism acknowledge the possibility of capitalist futures with a better management of natural resources and carbon emissions. The Strategic Relational Approach, developed by Bob Jessop and Ngai-Ling Sum, points to a unique third type of ecological political economy. Each approach is shown to have distinct views concerning the commodification of nature, the role of the state and ways to understand ecological and social transitions. The Strategic Relational Approach points to the possibility of counter-hegemonic strategies and collective mobilization to transform the state and so redirect, control and contain capitalist relations with nature.
Journal: Review of Political Economy
Pages: 336-353
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1145382
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1145382
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:336-353
Template-Type: ReDIF-Article 1.0
Author-Name: Brett Fiebiger
Author-X-Name-First: Brett
Author-X-Name-Last: Fiebiger
Title: Rethinking the Financialisation of Non-Financial Corporations: A Reappraisal of US Empirical Data
Abstract:
This article assesses the claims of the shareholder value literature of the effects of financialisation on non-financial corporations and, particularly, the claim that fixed capital accumulation in the United States has been impeded by the increasing financial payments of non-financial corporations, and also by these firms transforming themselves into rentiers. The financialisation explanation of macro patterns assumes that trends in the 1970s and early 1980s are representative of the pre-financialisation era but that is not so. Another complication is the global sphere. The vast expansion of majority-owned foreign affiliates from the mid-1990s suggests that the managers of US non-financial corporations did not abandon growth objectives. Claims about rentieralisation also require further investigation. On the one hand, it is misleading to treat all external investment as a financial asset and to assume that corporate dividends provide a robust proxy for financialisation. On the other hand, the shift to external accumulation by US non-financial corporations is obscured due in part to the conceptual limitations of direct investment data, and the widespread strategy of forming non-bank holding companies to funnel cross-border activities.
Journal: Review of Political Economy
Pages: 354-379
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1147734
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1147734
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:354-379
Template-Type: ReDIF-Article 1.0
Author-Name: Lefteris Tsoulfidis
Author-X-Name-First: Lefteris
Author-X-Name-Last: Tsoulfidis
Author-Name: Constantinos Alexiou
Author-X-Name-First: Constantinos
Author-X-Name-Last: Alexiou
Author-Name: Persefoni Tsaliki
Author-X-Name-First: Persefoni
Author-X-Name-Last: Tsaliki
Title: The Greek economic crisis: causes and alternative policies
Abstract:
The Greek economic crisis is primarily structural and the result of an international economic impasse that developed in 2007, with devastating implications for the struggling peripheral economies of Europe. This article suggests that falling profitability led to the stagnation of profits, which in turn discouraged new investment, decreased production and increased unemployment. The resulting recessionary economic environment, in conjunction with the mounting public debt and the austerity policies imposed on the Greek economy by the so-called ‘troika’ of creditors in 2010, has decimated the Greek economy even further, causing one of the worst economic crises since the Second World War. The article also provides some broad guidelines for an alternative economic policy.
Journal: Review of Political Economy
Pages: 380-396
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1163819
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1163819
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:380-396
Template-Type: ReDIF-Article 1.0
Author-Name: Sherry Yu
Author-X-Name-First: Sherry
Author-X-Name-Last: Yu
Title: The effect of political factors on sovereign default
Abstract:
This aricle examines the effect of political factors on sovereign default. Using a theoretical model, we find that political instability increases the likelihood of default. To test this theoretical implication, we use a panel logit model to estimate the effect of long- and short-run political factors, along with other macroeconomic variables, on the probability of default. Data from 68 developed and developing countries between 1970 and 2010 is used to conduct the study. Our findings suggest that a country is more likely to default when (i) it has a relatively younger political regime in place; (ii) it faces a higher chance of political turnover; and (iii) it has a less democratic political system. Economic factors are also vital; a country with stronger growth and less external debt is less likely to experience sovereign default. Robustness tests using alternative measures of political risk, trade balance and EMBI sovereign bond spreads also support the baseline findings.
Journal: Review of Political Economy
Pages: 397-416
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1200245
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1200245
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:397-416
Template-Type: ReDIF-Article 1.0
Author-Name: Marcel Boumans
Author-X-Name-First: Marcel
Author-X-Name-Last: Boumans
Title: Methodological institutionalism as a transformation of structural econometrics
Abstract:
I agree with Nell and Errouaki that an econometrics based on neoclassical economic theory fails to develop any insight into deep structures. But my methodology differs slightly from theirs because of my view that an econometrics based on any economic theory would fail in this sense. Economics is an inexact science, incapable of providing a complete set of causal factors to explain any economic phenomenon. I arrive at a different call for more fieldwork in econometrics due to a somewhat different reading of the criticisms of Trygve Haavelmo, Wassily Leontief, the young Tjalling Koopmans and Oskar Morgenstern. These economists not only shared the idea that economic structure is different in nature from natural laws and that statistical analysis alone is not enough to arrive at knowledge of this structure, but also that economic theory as an additional source of knowledge would not be sufficient either. Another additional source of knowledge is needed—that is, field expertise.
Journal: Review of Political Economy
Pages: 417-425
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1154752
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1154752
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:417-425
Template-Type: ReDIF-Article 1.0
Author-Name: Aris Spanos
Author-X-Name-First: Aris
Author-X-Name-Last: Spanos
Title: Transforming structural econometrics: substantive vs. statistical premises of inference
Abstract:
How could one transform structural econometrics with a view to deliver empirical models that generate reliable inferences and trustworthy evidence for or against theories or claims, as well as provide trustable guidance for economic policy makers? Nell and Errouaki, in Rational Econometric Man: Transforming Structural Econometrics, put forward their proposal on how to achieve that, by discussing the effectiveness of alternative proposals in the literature. There is a lot to agree with in this book, but the primary aim of this note is to initiate the dialogue on issues where opinions differ on how to transform structural econometrics. The discussion focuses on what I consider a crucial aspect of empirical modeling—statistical adequacy—but the authors question its practical usefulness for empirical modeling. I will attempt to make a case that ‘methodological institutionalism’ cannot be properly implemented without employing the notion of statistical adequacy.
Journal: Review of Political Economy
Pages: 426-437
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1154756
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1154756
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:426-437
Template-Type: ReDIF-Article 1.0
Author-Name: Lawrence A. Boland
Author-X-Name-First: Lawrence A.
Author-X-Name-Last: Boland
Title: Econometrics and equilibrium models
Abstract:
In Rational Econometric Man, Edward Nell and Karim Errouaki present a welcome and timely case for the view that econometrics and econometric model-building may not be the magic tools to solve all empirical questions despite what many seem to have thought they were in the 1960s. Here I examine some possible problems with econometric models that have to do with their usually taking the form of equilibrium models. Some of these problems were recognized by Trygve Haavelmo decades ago. And as Aris Spanos has recently discussed, the problems are often the result of what we say in our textbooks. Some problems have to do with what we mean by econometric parameters and others with how we use probabilities.
Journal: Review of Political Economy
Pages: 438-447
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1154757
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1154757
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:438-447
Template-Type: ReDIF-Article 1.0
Author-Name: Edward J. Nell
Author-X-Name-First: Edward J.
Author-X-Name-Last: Nell
Author-Name: Karim Errouaki
Author-X-Name-First: Karim
Author-X-Name-Last: Errouaki
Title: Modeling and Measuring Economic Reality: Reply to the Reviews
Abstract:
To begin with, we'd like to express our appreciation to our three commentators for their thoughtful and helpful reviews. Like the founders of the subject, we believe, and our reviewers seem to agree, that structural econometrics has the potential to enable us to develop serious working models of how different economies actually operate, and also to tell us something about the changing patterns of their growth and transformation. But both we and our reviewers agree that there is a great deal wrong with the way econometrics is practiced today.
Journal: Review of Political Economy
Pages: 448-463
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1154758
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1154758
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:448-463
Template-Type: ReDIF-Article 1.0
Author-Name: Katherine A. Moos
Author-X-Name-First: Katherine A.
Author-X-Name-Last: Moos
Title: Finding Time: The Economics of Work–Life Conflict
Journal: Review of Political Economy
Pages: 464-466
Issue: 3
Volume: 28
Year: 2016
Month: 7
X-DOI: 10.1080/09538259.2016.1201368
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1201368
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:3:p:464-466
Template-Type: ReDIF-Article 1.0
Author-Name: Leila Davis
Author-X-Name-First: Leila
Author-X-Name-Last: Davis
Title: Financialization, Shareholder Orientation and the Cash Holdings of US Corporations
Abstract:
Growth in the cash holdings of US nonfinancial corporations (NFCs) has received considerable attention in recent years. These cash holdings constitute a primary component of the growth in firm-level financial asset holdings often highlighted in analyses of the ‘financialization’ of NFCs. In this article, I use a panel of US corporations to empirically analyze two links between corporate cash holdings and the literature on financialization. First, I find a small but positive relationship between cash holdings and shareholder value ideology among large corporations. I capture the growing entrenchment of shareholder ideology using average industry-level stock repurchases, to proxy for industry-level norms encouraging managers to target stock price-based indicators of firm performance. Second, I find a positive relationship between a firm's cash holdings and a measure of the differential it earns between interest income and expense. Given that cash is classified with short-term marketable (and, therefore, interest-bearing) securities on firm balance sheets, this result lends empirical support to the hypothesis that traditionally nonfinancial firms are increasingly engaged in borrowing and lending for profit.
Journal: Review of Political Economy
Pages: 1-27
Issue: 1
Volume: 30
Year: 2018
Month: 1
X-DOI: 10.1080/09538259.2018.1429147
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1429147
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Template-Type: ReDIF-Article 1.0
Author-Name: Donald A. R. George
Author-X-Name-First: Donald A. R.
Author-X-Name-Last: George
Title: Economic Growth with Institutional Saving and Investment
Abstract:
This article develops a two-sector growth model in which institutional investors play a significant role. A necessary and sufficient condition is established under which these investors own the entire capital stock in the long run. The dependence of the long-run growth rate on the behaviour of such investors and the effects of a productivity increase are analysed.
Journal: Review of Political Economy
Pages: 28-40
Issue: 1
Volume: 30
Year: 2018
Month: 1
X-DOI: 10.1080/09538259.2018.1439556
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1439556
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:1:p:28-40
Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Author-Name: Petra Dünhaupt
Author-X-Name-First: Petra
Author-X-Name-Last: Dünhaupt
Author-Name: Ayoze Alfageme
Author-X-Name-First: Ayoze
Author-X-Name-Last: Alfageme
Author-Name: Marta Kulesza
Author-X-Name-First: Marta
Author-X-Name-Last: Kulesza
Title: A Kaleckian Perspective on Financialisation and Distribution in Three Main Eurozone Countries before and after the Crisis: France, Germany and Spain
Abstract:
The purpose of this article is twofold. First, we examine if, and to what extent, a general Kaleckian analysis of the potential effects of financialisation on income shares in advanced capitalist economies is of relevance for the three Eurozone countries under investigation—France, Germany and Spain—in the period before the recent financial and economic crisis. Second, we study changes in the financialisation–distribution nexus that have occurred in the course of and after the financial and economic crisis. We find that the countries examined here have shown broad similarities regarding redistribution before the crisis, although there are some differences in the underlying determinants. These differences have continued during the period after the crisis and have led to different results in the development of distribution since then.
Journal: Review of Political Economy
Pages: 41-71
Issue: 1
Volume: 30
Year: 2018
Month: 1
X-DOI: 10.1080/09538259.2018.1442784
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1442784
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:1:p:41-71
Template-Type: ReDIF-Article 1.0
Author-Name: Colin Rogers
Author-X-Name-First: Colin
Author-X-Name-Last: Rogers
Title: The Conceptual Flaw in the Microeconomic Foundations of Dynamic Stochastic General Equilibrium Models
Abstract:
First-generation dynamic stochastic general equilibrium (DSGE) models have been criticized for their lack of financial markets but, more perceptively, for their barter properties. This note explains why the second of these criticisms is fundamental. All DSGE models are built on frictionless, perfect barter, Walrasian microeconomic foundations. Introducing money and banks into such models converts them into a ‘friction’ contra the fundamental principle that monetary exchange is more efficient than barter. This insoluble difficulty with the microeconomic foundations of DSGE models arises because theorists ignore the Hahn problem that applies to all monetary models based on Walrasian general equilibrium (GE) microeconomic foundations. The Hahn problem reveals three things. First, a perfect barter GE solution always exists in any ‘monetary’ model erected on Walrasian GE microeconomic foundations. Second, inessential monetary features are easily attached to perfect barter microeconomic foundations but as easily removed, leaving the perfect barter solution intact. Third, attaching such inessential additions leads to logical error; the misuse of language that produces invalid conclusions. A second-generation DSGE model that is intended to increase understanding of financial crises is then examined to show that it suffers from the Hahn problem; it converts banking and financial markets into ‘frictions’, and words and economic concepts take on different meanings. That renders the new DSGE model impossible to interpret or use as a basis for advice on monetary policy.
Journal: Review of Political Economy
Pages: 72-83
Issue: 1
Volume: 30
Year: 2018
Month: 1
X-DOI: 10.1080/09538259.2018.1442894
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1442894
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:1:p:72-83
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Gualerzi
Author-X-Name-First: Davide
Author-X-Name-Last: Gualerzi
Title: The Stagnation Tendencies of Neoliberalism: A Review Essay
Abstract:
In his 2012 book, From Financial Crisis to Stagnation, Thomas Palley argued that the financial crisis of 2008 would be likely to result in a period of long-term stagnation. Both the crisis and the predicted stagnation, Palley argued, were the outcomes of policies pursued since the 1980s; the persistence of those policies explains the stagnation. Underpinning the policies and their consequences are the flaws of the neoliberal macro model and the particular role played by finance in that model. The rejection of Keynesianism meant the abandonment of the commitment to full employment. The neoliberal paradigm rests upon a foundation of ‘bad ideas’ that are located in political philosophy as much as in economic theory. Palley’s argument has a bearing on recent discussions among mainstream macroeconomists, whose interest in secular stagnation has been revived by the ‘ongoing crisis’. These discussions have left mostly unanswered the question of the causes of stagnation. The present essay argues that Palley’s concept of ‘structural Keynesianism’ can benefit from a closer association with the analysis of structural transformation and its effects on policy regimes and stagnation tendencies.
Journal: Review of Political Economy
Pages: 84-93
Issue: 1
Volume: 30
Year: 2018
Month: 1
X-DOI: 10.1080/09538259.2018.1450181
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1450181
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:1:p:84-93
Template-Type: ReDIF-Article 1.0
Author-Name: Pablo Paniagua Prieto
Author-X-Name-First: Pablo
Author-X-Name-Last: Paniagua Prieto
Title: Elinor Ostrom: an intellectual biography
Journal: Review of Political Economy
Pages: 94-97
Issue: 1
Volume: 30
Year: 2018
Month: 1
X-DOI: 10.1080/09538259.2018.1450183
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1450183
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:1:p:94-97
Template-Type: ReDIF-Article 1.0
Author-Name: Edwin Dickens
Author-X-Name-First: Edwin
Author-X-Name-Last: Dickens
Title: Financialization: The Economics of Finance Capital Domination
Journal: Review of Political Economy
Pages: 97-101
Issue: 1
Volume: 30
Year: 2018
Month: 1
X-DOI: 10.1080/09538259.2018.1450185
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1450185
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:1:p:97-101
Template-Type: ReDIF-Article 1.0
Author-Name: Johann K. Jaeckel
Author-X-Name-First: Johann K.
Author-X-Name-Last: Jaeckel
Title: Trekonomics: The Economics of Star Trek
Journal: Review of Political Economy
Pages: 101-105
Issue: 1
Volume: 30
Year: 2018
Month: 1
X-DOI: 10.1080/09538259.2018.1450187
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1450187
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:1:p:101-105
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Title: Frederic Lee and Post-Keynesian Pricing Theory
Abstract:
Frederic Lee has been a major contributor to post-Keynesian economics, mainly to its theory of pricing. This article summarizes his objections to the neoclassical view of the firm and pricing, as well as his view that changes in quantities, rather than in prices, provide the important information to firms. It also outlines Lee's views on competition, and examines the three pricing doctrines Lee carefully analyzed—markup pricing (associated with Kalecki), normal-cost pricing or full-cost pricing (associated with Andrews), and target-return or administered pricing (associated with Means). The article then discusses the relationship between Lee and three strands of post-Keynesianism: Kaleckian, Sraffian and Eichnerian pricing theories. It explains why Lee objected to some features of each of these. The article concludes by discussing why, towards the end of his life, Lee felt (mistakenly) that his ideas had been dismissed by heterodox economists.
Journal: Review of Political Economy
Pages: 169-186
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2016.1149375
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1149375
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:169-186
Template-Type: ReDIF-Article 1.0
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Title: Symposium on Piketty's Capital: An Introduction
Journal: Review of Political Economy
Pages: 187-189
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2016.1150559
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1150559
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:187-189
Template-Type: ReDIF-Article 1.0
Author-Name: Javier López-Bernardo
Author-X-Name-First: Javier
Author-X-Name-Last: López-Bernardo
Author-Name: Félix López-Martínez
Author-X-Name-First: Félix
Author-X-Name-Last: López-Martínez
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Title: A Post-Keynesian Response to Piketty's ‘Fundamental Contradiction of Capitalism’
Abstract:
In Capital in the Twenty-First Century, Thomas Piketty presents a rich set of data that deals with income and wealth distribution, output-wealth dynamics and rates of return. He also proposes some ‘laws of capitalism’. At the core of his argument lies the ‘fundamental inequality of capitalism’, an empirical regularity stating that the rate of return on wealth is greater than the growth rate of the economy. This simple construct allows him to conclude that increasing wealth (and income) inequality is an inevitable outcome of capitalism. While we share some of his conclusions, we will highlight some shortcomings of his approach based on a Cambridge post-Keynesian growth-and-distribution model. The paper makes four points. First, r > g is not necessarily associated with increasing inequality in functional distribution. Second, Piketty succumbs to a fallacy of composition when he claims that a necessary condition for r > g is that capitalists save a large share of their capital income. Third, post-Keynesians can learn from Piketty's insights about personal income distribution and incorporate them into their models. Fourth, we reiterate the post-Keynesian argument that a well-behaved aggregate production function does not exist and cannot explain income distribution.
Journal: Review of Political Economy
Pages: 190-204
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2015.1060057
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1060057
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:190-204
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas R. Michl
Author-X-Name-First: Thomas R.
Author-X-Name-Last: Michl
Title: Capitalists, Workers and Thomas Piketty's
Abstract:
This paper interprets Piketty's influential work through the lens of structuralist macroeconomic theory, which is a synthesis of the classical, Marxian and Keynesian traditions. It shows that Piketty's key inequality, $r \gt g$r>g (the rate of profit is greater than the rate of growth) measures the influence of capitalist consumption on capital accumulation in the context of a growth model with capitalists and workers in the tradition of Nicholas Kaldor and Luigi Pasinetti. The paper shows how in the structuralist model the connections Piketty makes between growth and inequality become more transparent and less confusing than they are in the neoclassical theory he resorts to using. The paper also examines his data with emphasis on two central paradoxes of neoliberalism: with all the upward redistribution of income, there is surprisingly little concentration of the wealth distribution; and with a higher profit rate, there has been no corresponding increase in growth. The hypothesis suggested by structuralist growth theory is that neoliberal capitalism has transformed Marx's ‘accumulate, accumulate' into ‘consume, consume.' The political-economic implications of this hypothesis are significant.
Journal: Review of Political Economy
Pages: 205-219
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2015.1060059
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1060059
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:205-219
Template-Type: ReDIF-Article 1.0
Author-Name: Gérard Duménil
Author-X-Name-First: Gérard
Author-X-Name-Last: Duménil
Author-Name: Dominique Lévy
Author-X-Name-First: Dominique
Author-X-Name-Last: Lévy
Title: Thomas Piketty's Historical Macroeconomics: A Critical Analysis
Abstract:
There has been a great deal of interest in the data on income and wealth inequality collected by Thomas Piketty. This paper does not question that data; rather, it questions the framework of Piketty's analysis, both theoretically and empirically—namely the alleged upward tendency of the ratio of wealth to national income and the rise of wealth inequality. First, in the mechanism put forward, wealth can only grow as a result of savings, thus ruling out any form of price effect (as in urban land). Second, Piketty’s second law defines an asymptotical trajectory, in which variables grow in parallel, something incompatible with the rise of the ratio between two variables. In addition, Piketty’s model does not match data for the USA. The historical profile of the ratio of wealth/national income is actually the inverted image of the productivity of capital (the ratio of output/firms’ fixed capital). Doubts are also expressed concerning the dramatic fall of the ratio of wealth/national income in Europe around World War I.
Journal: Review of Political Economy
Pages: 220-232
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2015.1076280
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1076280
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:220-232
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Jones
Author-X-Name-First: Peter
Author-X-Name-Last: Jones
Title: Devaluation and Marx's Law of the tendential fall in the rate of profit
Abstract:
Marx's law of the tendential fall in the rate of profit predicts that the rate of profit will decline over the long term as the forces of production develop, and move cyclically in a way that explains crises and economic recoveries. This interpretation is substantiated with textual evidence, and with a method for measuring the dynamic of devaluation and revaluation which Marx uses to explain the profit rate cycle. This method is shown to be consistent with temporalism, meaning it avoids the transformation problem created by dual system interpretations, and the problem of the Okishio Theorem created by simultaneist interpretations. The article also includes a temporalist way to estimate the Monetary Expression of Labour Time, and empirical results for the effect of devaluation on the stock of fixed assets in the United States since 1930.
Journal: Review of Political Economy
Pages: 233-250
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2016.1142714
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1142714
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:233-250
Template-Type: ReDIF-Article 1.0
Author-Name: Michael Osborne
Author-X-Name-First: Michael
Author-X-Name-Last: Osborne
Author-Name: Ian Davidson
Author-X-Name-First: Ian
Author-X-Name-Last: Davidson
Title: The Cambridge capital controversies: contributions from the complex plane
Abstract:
This article takes a fresh look at reswitching. When two production techniques are compared, reswitching occurs when one technique is more viable than the other at a high interest rate, switches to being less viable at a lower rate, and reswitches to being more viable again at even lower rates. For some, reswitching undermines the foundations of neoclassical economics because it belies the idea of a monotonic relationship between relative capital values and factor price. The reswitching equation is an nth degree polynomial having n roots, implying the existence of n interest rates. Conventional analysis uses one interest rate but ignores the others. We argue that the others should not be ignored because all rates are determined simultaneously, and when one rate shifts, all rates shift. We demonstrate that the Samuelson reswitching model possesses a ‘dual’ expression containing every interest rate, the rates being compressed into a composite, interest-rate variable, thereby establishing a role for interest rates previously thought lacking in use and meaning. The relationship between this composite interest rate and capital value does not exhibit reswitching. The notion of a composite interest rate has implications for economics beyond reswitching.
Journal: Review of Political Economy
Pages: 251-269
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2015.1129751
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1129751
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:251-269
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Burlamaqui
Author-X-Name-First: Leonardo
Author-X-Name-Last: Burlamaqui
Author-Name: Rainer Kattel
Author-X-Name-First: Rainer
Author-X-Name-Last: Kattel
Title: Development as leapfrogging, not convergence, not catch-up: towards schumpeterian theories of finance and development
Abstract:
Our aim is to demark a pathway towards Schumpeterian theories of finance and development. To do this, we offer four basic propositions for discussion. First, we suggest that ‘convergence’ and ‘catch-up’ are, from a Schumpeterian perspective, theoretically inadequate concepts as they frame development narratives similarly to the Rostovian idea of a linear path towards some sort of ‘equilibrium imposed on history’. Leapfrogging by means of innovation and finance is put forward as a better approach to analyzing development trajectories. Second, we contend that rather than the often-assumed convergence among nations, history shows that ‘divergence’ is a more common result of development trajectories; this is especially visible in the last half a century. Third, we outline the key features of this Schumpeterian framework, centered on the concept of leapfrogging through innovation and finance. We conclude by highlighting the essential roles of finance and financial governance within this alternative framework for understanding successful development trajectories, and posit that this construct may be labeled a Schumpeterian entrepreneurial state.
Journal: Review of Political Economy
Pages: 270-288
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2016.1142718
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1142718
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:270-288
Template-Type: ReDIF-Article 1.0
Author-Name: Antonios Patidis
Author-X-Name-First: Antonios
Author-X-Name-Last: Patidis
Title: A Micro-Approach for Testing Marx's LTRPF: Evidence from Greece, 2000 and 2009
Abstract:
This article develops a novel micro-approach for the empirical evaluation of Marx's law of the tendency of the rate of profit to fall. Contrary to the traditional method which uses national macroeconomic data, this approach utilises data taken directly from company reports and accounts. The principal advantage of this approach is that it provides an accurate measurement of the value composition of capital, devoid of the measurement limitations of the traditional method regarding variable capital which stem from the inability to distinguish productive from unproductive labour. A disadvantage, however, is that this approach does not cover the entire national economy. The application of the proposed micro-approach to the ongoing Greek crisis yields results which are congruent with the traditional method and reinforce other recent studies linking the current crisis with low profitability.
Journal: Review of Political Economy
Pages: 289-306
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2016.1142719
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1142719
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:289-306
Template-Type: ReDIF-Article 1.0
Author-Name: G.C. Harcourt
Author-X-Name-First: G.C.
Author-X-Name-Last: Harcourt
Title: Microfoundations: a personal historical note
Journal: Review of Political Economy
Pages: 307-308
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2016.1156933
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1156933
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:307-308
Template-Type: ReDIF-Article 1.0
Author-Name: Stavros D. Mavroudeas
Author-X-Name-First: Stavros D.
Author-X-Name-Last: Mavroudeas
Title: Contending Economic Theories: Neoclassical, Keynesian and Marxian
Journal: Review of Political Economy
Pages: 309-312
Issue: 2
Volume: 28
Year: 2016
Month: 4
X-DOI: 10.1080/09538259.2015.1080471
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1080471
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:2:p:309-312
Template-Type: ReDIF-Article 1.0
Author-Name: J.E. King
Author-X-Name-First: J.E.
Author-X-Name-Last: King
Title: The Literature on Piketty
Abstract:
The extensive critical literature on Thomas Piketty’s Capital in the Twenty-First Century is surveyed under nine headings. The first deals with the conservative argument that inequality in the distribution of wealth does not matter, since a rising tide lifts all boats. Second, it is claimed that Piketty’s prediction of continuously increasing inequality and the return of ‘patrimonial capitalism’ is unjustified. Third, the quality of the empirical evidence that he cites is questioned, on a number of quite different grounds. Fourth, some critics object that Piketty’s explanation of long-run trends in the distribution of wealth is too general and too theoretical. Fifth is the argument that he has used the correct (neoclassical) theory incorrectly, exaggerating the elasticity of substitution of capital for labour. Against this, post-Keynesian critics claim, sixthly, that Piketty is using the wrong theory, and should have drawn on the Kaldor–Pasinetti model of distribution and growth, and not the discredited neoclassical analysis. Seventh, Piketty has been criticised for ignoring the distribution of wealth in developing countries. Eighth, there is a wide range of objections to his most striking policy proposal, for a progressive global wealth tax. Finally, several critics from outside economics complain that Piketty has neglected a number of non-economic dimensions of inequality. I conclude by welcoming both the book and the critical literature, and calling for the distribution of wealth to be placed back on the political agenda.
Journal: Review of Political Economy
Pages: 1-17
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1173425
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1173425
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:1-17
Template-Type: ReDIF-Article 1.0
Author-Name: Anwar Shaikh
Author-X-Name-First: Anwar
Author-X-Name-Last: Shaikh
Title: Income Distribution, Econophysics and Piketty
Abstract:
Piketty, Atkinson and Saez have put the analysis of income distribution back on center stage. The distinction between property income and labor income plays a central role in this framework. Property income derives from the rate of return on stocks of income-earning wealth and is more unequally distributed than labor income. Piketty argues that, because the rate of return (r) is generally greater than the rate of growth of the economy (g), property income tends to grow more rapidly than labor income, so that rising income inequality is an intrinsic tendency of capitalism despite interruptions due to world wars and great depressions. This article argues the exact opposite. The rise of unions and the welfare state were the fruits of long-term historical gains made by labor, and the postwar constraints on real and financial capital arose in sensible reaction to the Great Depression. The ‘neoliberal’ era beginning in the 1980s significantly rolled back all of these. The article uses the econophysics two-class argument of Yakovenko to show that we can explain the empirical degree of inequality using two factors alone: the profit share and the degree of financialization of income. The rise of inequality in the neoliberal era then derives from a reduction in the wage share (rise in the profit share) in the face of assaults on labor and the welfare state, and a sharp increase in the financialization of incomes as financial controls are weakened. These are inherently socio-political outcomes, and what was lost can be regained. Hence, there is no inevitable return to Piketty’s ‘patrimonial capitalism’.
Journal: Review of Political Economy
Pages: 18-29
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1205295
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1205295
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:18-29
Template-Type: ReDIF-Article 1.0
Author-Name: George Mechling
Author-X-Name-First: George
Author-X-Name-Last: Mechling
Author-Name: Stephen Miller
Author-X-Name-First: Stephen
Author-X-Name-Last: Miller
Author-Name: Ron Konecny
Author-X-Name-First: Ron
Author-X-Name-Last: Konecny
Title: Do Piketty and Saez Misstate Income Inequality? Critiquing the Critiques
Abstract:
A large body of literature points to sharply growing income inequality over the past half century. The Piketty and Saez dataset that measures income distribution provides empirical support for this claim. Our article evaluates three prominent criticisms of this dataset as well as the responses of Piketty and Saez to these criticisms. One key argument against using their dataset is that Piketty and Saez do not control for income shifting by top income earners in response to the Tax Reform Act of 1986 (TRA86) and thus overstate income inequality. In evaluating this criticism we find that a segment of their dataset likely understates income inequality; this is just the opposite of what critics assert. This implies that the Piketty–Saez dataset is a valuable resource for income inequality research and that scholars can use it to build more refined, accurate and insightful measures of income inequality.
Journal: Review of Political Economy
Pages: 30-46
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2017.1255439
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1255439
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:30-46
Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Stirati
Author-X-Name-First: Antonella
Author-X-Name-Last: Stirati
Title: Wealth, Capital and the Theory of Distribution: Some Implications for Piketty’s Analysis
Abstract:
Thomas Piketty’s Capital in the Twenty-First Century (2014) has been spectacularly successful. One reason for this is that while it often challenges received views and supports a non-apologetic interpretation of capitalism, at the same time it relies on mainstream economics. This theoretical framework, however, is not always conducive to consistency and interpretative accuracy. This paper points out some of the book’s analytical weaknesses and shows that some empirical evidence, a clearer distinction between wealth and capital, and a different theoretical perspective, could lead to questioning some of the book’s claims. In particular, it argues that the increase in the wealth-to-output ratio (but not the capital-to-output ratio) cannot explain the observed changes in income shares. It also contends that non-mainstream perspectives on income distribution and growth suggest that changes in income distribution are due more to policy and power relations than to the factors Piketty identifies.
Journal: Review of Political Economy
Pages: 47-63
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1237819
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1237819
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:47-63
Template-Type: ReDIF-Article 1.0
Author-Name: Gregor Semieniuk
Author-X-Name-First: Gregor
Author-X-Name-Last: Semieniuk
Title: Piketty’s Elasticity of Substitution: A Critique
Abstract:
This article examines Thomas Piketty’s explanation of a falling wage share. Piketty explains rising income inequality between labor and capital as a result of one parameter of a production function: an elasticity of substitution, σ, between labor and capital greater than one. This article reviews Piketty’s elasticity argument, which relies on a non-standard definition of capital. In light of the theory of land rent, it discusses why the non-standard capital definition is a measure of wealth, not capital and is problematic for estimating elasticities. It then presents simple long-run estimates of σ in constant elasticity of substitution functions for Piketty’s data as well as for a subset of his capital measure that comes closer to the standard definition of productive capital. The estimation results cast doubt on Piketty’s hypothesis that σ is greater than one.
Journal: Review of Political Economy
Pages: 64-79
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1244916
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1244916
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:64-79
Template-Type: ReDIF-Article 1.0
Author-Name: Felipe Almeida
Author-X-Name-First: Felipe
Author-X-Name-Last: Almeida
Author-Name: Eduardo Angeli
Author-X-Name-First: Eduardo
Author-X-Name-Last: Angeli
Author-Name: Renato Pontes
Author-X-Name-First: Renato
Author-X-Name-Last: Pontes
Title: An Institutional Explanation for Economists’ Theoretical and Methodological Choices
Abstract:
Scientific research in general and economics research in particular is a social act. More specifically, schools of economic thought as well as associations, research groups and conferences are expressions of social organizations within the realm of economics. Historically, studies investigating the methodologies used in economics have focused on the strengths of these social organizations. This study aims to analyze the key roles played by individuals within social organizations in building and reinforcing economics and, in turn, their influence on these individuals. To achieve this goal, we use an institutionalist approach in a broad sense. We show how economics as an academic environment can be presented as an institutional entanglement and how an institutionalist approach can enhance an understanding of why economists adopt a particular theoretical and methodological perspective. It is argued that habits, observations and cognitive abilities should be seriously considered to understand the logic and decision making of economic researchers. We discuss also the importance of forming groups in the process of institutionalizing elements relevant to an economic researcher’s logic and decision making and present an interpretation of mainstream economics in terms of the analytical approach of our study.
Journal: Review of Political Economy
Pages: 80-92
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1257015
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1257015
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:80-92
Template-Type: ReDIF-Article 1.0
Author-Name: Tadashi Hirai
Author-X-Name-First: Tadashi
Author-X-Name-Last: Hirai
Author-Name: Yukio Ikemoto
Author-X-Name-First: Yukio
Author-X-Name-Last: Ikemoto
Title: Sen’s Economics in : Induction vs Deduction
Abstract:
In The Idea of Justice, Amartya Sen revealingly differentiates his capability approach from the mainstream in terms of structure: comparative vis-à-vis transcendental. Instead of constructing models based on fundamental principles and questing for perfection, Sen seeks to compare feasible options and to choose one from among them. What lies behind this strategy is respect for a plurality of values and reasoning in society. In this context, description plays a key role in this approach, given that plural values and reasoning can be reflected only in an inductive manner which requires rich description. The purpose of this article is to examine how Sen’s approach is related to the Cambridge tradition, which typically embraces inductive methods of reasoning, with a particular focus on the influence of Maurice Dobb. In relation to this, some possible extensions of his approach will be discussed.
Journal: Review of Political Economy
Pages: 93-110
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1259873
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1259873
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:93-110
Template-Type: ReDIF-Article 1.0
Author-Name: Lefteris Tsoulfidis
Author-X-Name-First: Lefteris
Author-X-Name-Last: Tsoulfidis
Author-Name: Dimitris Paitaridis
Author-X-Name-First: Dimitris
Author-X-Name-Last: Paitaridis
Title: Monetary Expressions of Labour Time and Market Prices: Theory and Evidence from China, Japan and Korea
Abstract:
This article presents estimates of labour values and prices of production following two approaches: the first is based on the classical and Marxian theory of value and distribution; the second on the so-called ‘new solution’ to the ‘transformation problem’ and its variant, the Temporary Single-System Interpretation (TSSI). The major advantage of the latter approach is its simplicity, along with the relatively low data requirements. Our empirical findings from the economies of China, Japan and South Korea suggest that both approaches give estimates of labour values and prices of production which are extremely close to each other as well as to actual market prices. On further examination, however, we conclude that our empirical findings are absolutely consistent with the theoretical requirements of the classical approach and contradict those of the TSSI.
Journal: Review of Political Economy
Pages: 111-132
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1260804
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1260804
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:111-132
Template-Type: ReDIF-Article 1.0
Author-Name: R. E. Greenblatt
Author-X-Name-First: R. E.
Author-X-Name-Last: Greenblatt
Title: On the Estimation of Skill Coefficients for Heterogeneous Labor
Abstract:
Many economists have questioned the existence of a solution to the problem of reducing the value of skilled to unskilled labor, consistent with the assumptions of the labor theory of value. This article presents a model to account quantitatively for an important component of the reduction—the relation between skills and earnings. The model contains an educational attainment graph and a multivariate linear function, which maps time to labor content. We then compare the resulting relative skill coefficients to earnings relative to an unskilled labor reference. The predictions of the model substantially agree with the empirical data.
Journal: Review of Political Economy
Pages: 133-147
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1243285
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1243285
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:133-147
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Gualerzi
Author-X-Name-First: Davide
Author-X-Name-Last: Gualerzi
Title: Growth, Normal Capacity Utilization and the Long-Run Saving Ratio: A Comment
Abstract:
In a recent paper Attilio Trezzini presents an explanation of the saving ratio that does not rely on normal capacity utilization positions. Trezzini instead focuses on the fluctuations of consumption and investment. But that very focus, I argue, requires a different kind of approach. Once the traditional theory of saving is discarded, the ‘indeterminacy’ of the saving ratio opens the way to an analysis of the evolution of consumption, and of how that evolution affects aggregate demand. The generation and evolution of autonomous demand are matters of obvious relevance to the classical Keynesian approach to the analysis of growth. The present comment takes James Duesenberry’s criticism of demand theory as the starting point for an examination of the evolving standard of consumption and autonomous (‘innovative’) investment, therefore addressing directly the investment–consumption relationship. There are of course a number of complicated questions involved and they have not yet been satisfactorily analysed. They are part of the necessary task of articulating a theory of consumption consistent with demand-led growth and forward-looking investment decisions.
Journal: Review of Political Economy
Pages: 148-156
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1243689
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1243689
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:148-156
Template-Type: ReDIF-Article 1.0
Author-Name: Attilio Trezzini
Author-X-Name-First: Attilio
Author-X-Name-Last: Trezzini
Title: The Social Significance of Consumption and the Elasticity of Output to Demand in the Long Run: A Reply to Gualerzi
Abstract:
Gualerzi's comment on Trezzini’s 2015 article (‘Growth without Normal Capacity Utilization and the Meaning of the Long-Run Saving Ratio.’) underestimates the role played by the long-run elasticity of output with respect to changes in aggregate demand in my analysis and in the demand-led processes of growth.
Journal: Review of Political Economy
Pages: 157-161
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1243690
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1243690
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:157-161
Template-Type: ReDIF-Article 1.0
Author-Name: Fletcher Baragar
Author-X-Name-First: Fletcher
Author-X-Name-Last: Baragar
Title: Is Marx’s Theory of Profit Right? The Simultaneist-Temporalist Debate
Journal: Review of Political Economy
Pages: 162-164
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1243686
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1243686
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:162-164
Template-Type: ReDIF-Article 1.0
Author-Name: Andres F. Cantillo
Author-X-Name-First: Andres F.
Author-X-Name-Last: Cantillo
Title: G. L. S. Shackle
Journal: Review of Political Economy
Pages: 164-167
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1243687
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1243687
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:164-167
Template-Type: ReDIF-Article 1.0
Author-Name: Ross B. Emmett
Author-X-Name-First: Ross B.
Author-X-Name-Last: Emmett
Title: Bourgeois Equality: Ideas, Not Capital or Institutions, Enriched the World
Journal: Review of Political Economy
Pages: 167-170
Issue: 1
Volume: 29
Year: 2017
Month: 1
X-DOI: 10.1080/09538259.2016.1243688
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1243688
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:1:p:167-170
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Schoder
Author-X-Name-First: Christian
Author-X-Name-Last: Schoder
Title: A Critical Review of the Rationale Approach to the Microfoundation of Post-Keynesian Theory
Abstract:
While modeling macroeconomic interactions, post-Keynesians propose rationales to verbally motivate the choice of behavioral equations. This informal approach to microfoundation results in inconsistencies and fuzzy arguments. The rationales for different behavioral rules are mutually inconsistent, require strong and nontransparent assumptions, or refer to highly endogenous variables that are not part of the model. The postulated behavioral rules are invariant to endogenous changes in the microenvironment, whereas the rationales imply that they adjust endogenously. The prevailing assumption of purely backward-looking expectations is neither theoretically nor empirically satisfying. The article concludes that revisiting the issue of microfoundation within the post-Keynesian framework may be a rewarding line of research. Furthermore, post-Keynesians should be open to various microfoundations as long as models feature the core of post-Keynesian theory—the principle of effective demand.
Journal: Review of Political Economy
Pages: 171-189
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2017.1315932
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1315932
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:171-189
Template-Type: ReDIF-Article 1.0
Author-Name: Lowell Jacobsen
Author-X-Name-First: Lowell
Author-X-Name-Last: Jacobsen
Title: P.W.S. Andrews' Revisited
Abstract:
P.W.S. Andrews (1914–1971) was a remarkable industrial economist at Oxford University, prominently as a member of the Oxford Economists’ Research Group (OERG) and Nuffield College. In the final few years of his life, he held a professorship at Lancaster University. As a self-described ‘practical theorist’, Andrews thought economists, particularly in the 1930s, inappropriately extended Marshall in a more formal, technical manner whereby the detailed reality of industrial economics was overshadowed. Such a ‘methodological mistake’ of a priori reasoning trumping the inductive method was countered by the OERG’s emphasis on grounded empiricism featuring extensive primary research on real businesses. A product of this research was Andrews’ Manufacturing Business that proffers a novel theory of the business firm. This article revisits Andrews’ signature book, paying particular attention to its apparent curiously harsh reviews by Austin Robinson and Arnold Plant, two distinguished Marshallian industrial economists. Moreover, Manufacturing Business is considered as a possible precursor of business strategy, a nascent discipline in the 1960s.
Journal: Review of Political Economy
Pages: 190-208
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2017.1311095
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1311095
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:190-208
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Keil
Author-X-Name-First: Jan
Author-X-Name-Last: Keil
Title: Explaining the Concentration-Profitability Paradox
Abstract:
This paper explains an empirical paradox which is often found, but generally ignored: a significant negative econometric relationship between profitability and market share concentration. The phenomenon can appear when there is a negative correlation between market share and costs—for example due to economies of scale. I show that concentration becomes an indicator for the cost competitiveness of direct rivals within an industry. Profitability of a given firm is undermined if price correlates positively with average industry costs (Classical natural prices) and frictions like sunk costs make an industry exit expensive for firms. This idea also explains the frequent findings of highly persistent profit rate differentials.
Journal: Review of Political Economy
Pages: 209-231
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2017.1295945
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1295945
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:209-231
Template-Type: ReDIF-Article 1.0
Author-Name: Dell P. Champlin
Author-X-Name-First: Dell P.
Author-X-Name-Last: Champlin
Author-Name: Janet Knoedler
Author-X-Name-First: Janet
Author-X-Name-Last: Knoedler
Title: Contingent Labor and Higher Education
Abstract:
Over the past 30 years, the profession of college professor in the US has been changing from a high-status occupation, where faculty have extensive control over their job responsibilities, to a low-status contingent job in the peripheral labor market. This change mirrors the drift toward nonstandard employment in other sectors of the economy. Contingent and part-time faculty have grown at 10 times the rate of growth for tenure-track faculty, leading to a fundamental transformation in the nature of the professoriate. We review data related to these changes as well as the conventional explanations for this transformation. We conclude that the current system of academic labor is best understood within the core–periphery model of nonstandard employment. We conclude with some brief prospects for the future of the academic labor market and higher education.
Journal: Review of Political Economy
Pages: 232-248
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2017.1316054
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1316054
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:232-248
Template-Type: ReDIF-Article 1.0
Author-Name: Marta Podemska-Mikluch
Author-X-Name-First: Marta
Author-X-Name-Last: Podemska-Mikluch
Author-Name: Richard E. Wagner
Author-X-Name-First: Richard E.
Author-X-Name-Last: Wagner
Title: Economic Coordination across Divergent Institutional Frameworks: Dissolving a Theoretical Antinomy
Abstract:
Economic theory contains a significant theoretical antinomy. Markets are thought to secure coordination in self-organized fashion. In contrast, polities are portrayed as securing coordination through planning and administration. Doing this is to commit what Michael Resnick calls the ‘centralized mindset’, which is to attribute an observed order to some ordering agent. This article seeks to dissolve this theoretical antinomy by explaining how the same coordinative principles are at work throughout a society. All societies operate in generally coordinated fashion, due to the operation of transactional processes within societies. Markets and polities both operate through transactional relationships, though political transactions are constructed somewhat differently than market transactions. This article sets forth an approach to explaining coordination throughout a societal ecology where that coordination is achieved through different forms of transaction.
Journal: Review of Political Economy
Pages: 249-266
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2016.1269425
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1269425
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:249-266
Template-Type: ReDIF-Article 1.0
Author-Name: Vitor Eduardo Schincariol
Author-X-Name-First: Vitor Eduardo
Author-X-Name-Last: Schincariol
Title: Joan Robinson on Population Growth
Abstract:
Joan Robinson’s views on population growth have received scant attention. The aim of this article is to summarize and evaluate aspects of Robinson’s perspectives on population. The population question is considered in terms of four specific topics: the problem of growth, the labor market, effective demand and economic development. The article also interprets Robinson’s approach in light of the endogenous theory of economic growth in order to more explicitly elucidate Robinson’s own statements. It is concluded that an economic interpretation of population growth based on Robinson’s approach requires some specific adaptations if it is to be feasible. It is hoped that this line of approach is useful to scholars of the history of economic thought, economic development or theory of economic growth.
Journal: Review of Political Economy
Pages: 267-281
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2016.1257026
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1257026
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:267-281
Template-Type: ReDIF-Article 1.0
Author-Name: Leonardo Costa Ribeiro
Author-X-Name-First: Leonardo Costa
Author-X-Name-Last: Ribeiro
Author-Name: Leonardo Gomes de Deus
Author-X-Name-First: Leonardo Gomes
Author-X-Name-Last: de Deus
Author-Name: Pedro Mendes Loureiro
Author-X-Name-First: Pedro Mendes
Author-X-Name-Last: Loureiro
Author-Name: Eduardo Da Motta Albuquerque
Author-X-Name-First: Eduardo Da Motta
Author-X-Name-Last: Albuquerque
Title: Profits and Fractal Properties: Notes on Marx, Countertendencies and Simulation Models
Abstract:
There are new reasons for revisiting Marx’s elaboration on the rate of profit because contemporary debates provide findings from the MEGA Project, long-term data on the rate of profit, and tools for dealing with complexity and non-equilibrium systems. This article proposes that the interplay between the tendency and the countertendencies of the rate of profit to fall can be translated into a simple system of equations, one based on each chapter of Section Three of Capital—as if Marx sought to mathematically formalise his insights. This article reviews previous debates, presents data and runs a simulation model, showing that the rate of profit behaves as fractals.
Journal: Review of Political Economy
Pages: 282-306
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2016.1265823
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1265823
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:282-306
Template-Type: ReDIF-Article 1.0
Author-Name: Renaud Fillieule
Author-X-Name-First: Renaud
Author-X-Name-Last: Fillieule
Title: Intertemporal Choice, Saving and Investment, and Interest Rate: Contributions from a Neglected Hayekian Model
Abstract:
Hayek’s ‘Utility analysis and interest’ expounds a graphical model of intertemporal choice that has not received the attention it deserves. This model is important in that it can be used as a basic macroeconomic model and can therefore perform for the Austrian School the role that the Solow model plays for the standard neo-classical paradigm. This article provides an in-depth presentation of the Hayekian model, and then applies the model to key theoretical issues in macroeconomics; namely, the effects upon intertemporal equilibrium and upon the interest rate of a change in time preference, of the implementation of a technical development and of an increase in the supply of labor.
Journal: Review of Political Economy
Pages: 307-328
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2017.1316565
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1316565
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:307-328
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Sergio Levrero
Author-X-Name-First: Enrico Sergio
Author-X-Name-Last: Levrero
Title: Towards a New Understanding of Sraffa
Journal: Review of Political Economy
Pages: 329-335
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2017.1331885
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1331885
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:329-335
Template-Type: ReDIF-Article 1.0
Author-Name: Paul May
Author-X-Name-First: Paul
Author-X-Name-Last: May
Title: Global Inequality: A New Approach for the Age of Globalization
Journal: Review of Political Economy
Pages: 336-338
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2017.1331884
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1331884
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:336-338
Template-Type: ReDIF-Article 1.0
Author-Name: Aleksandr V. Gevorkyan
Author-X-Name-First: Aleksandr V.
Author-X-Name-Last: Gevorkyan
Title: The End of Alchemy: Money, Banking, and the Future of the Global Economy
Journal: Review of Political Economy
Pages: 338-341
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2017.1331883
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1331883
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:338-341
Template-Type: ReDIF-Article 1.0
Author-Name: Brian D’Agostino
Author-X-Name-First: Brian
Author-X-Name-Last: D’Agostino
Title: Cooperatives Confront Capitalism: Challenging the Neoliberal Economy
Journal: Review of Political Economy
Pages: 341-344
Issue: 2
Volume: 29
Year: 2017
Month: 4
X-DOI: 10.1080/09538259.2017.1331882
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1331882
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:2:p:341-344
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Boyer
Author-X-Name-First: Robert
Author-X-Name-Last: Boyer
Title: A World of Contrasted but Interdependent Inequality Regimes: The Latin America Paradox
Abstract:
The previous issue of this journal published an explanation of three contemporary paradoxes: dramatically increased inequalities in China despite economic development reducing poverty; the excessively large costs incurred by the state following a surge of inequality in the finance-led growth regime of the United States (US); and, within Europe, some social democratic countries continue to exhibit a complementarity between and extended welfare system, more moderate inequalities and a dynamic innovation and production system. This analysis concluded that the US, Chinese and European inequality regimes are different but they express complementary growth patterns. Applying the same socio-economic approach, based upon the concept of inequality regimes, this article addresses another contemporary paradox. Latin America, previously the continent with the highest inequality, has reversed the former dynamics to exhibit a growth pattern based upon inequality reduction, while still relying heavily upon a strong international demand for commodities. This analysis investigates the durability and likelihood of the Latin American U-turn and concludes that there is a possible alternative to the hypothesis of an irreversible globalization of inequality because China, North America, Europe and Latin America do not follow the same trajectory, having developed contrasting regimes of inequality that co-evolve and are largely complementary at the global level. Consequently the future of more inclusive Latin American (and other) economies depends on the interaction between new domestic democratic advances and the reconfiguration of the international economy.
Journal: Review of Political Economy
Pages: 1-22
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2015.1065578
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1065578
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:1-22
Template-Type: ReDIF-Article 1.0
Author-Name: Mika Kato
Author-X-Name-First: Mika
Author-X-Name-Last: Kato
Title: Jean Tirole, Nobel Prize Winner
Abstract:
The Royal Swedish Academy of Sciences awarded the Nobel Prize in Economic Sciences for 2014 to Jean Tirole, Toulouse School of Economics (TSE), Toulouse, France ‘for his analysis of market power and regulation’. What commonly characterizes Jean Tirole's work is a combination of rigorous scientific analysis of markets and provision of useful scientific insights and policy guidance for regulation and competition policy in such markets. This paper focuses on two of Tirole's papers, both co-written with Jean-Charles Rochet, which probably best exemplify his policy-oriented research. It summarizes and then explains how the theory that these papers develop led to the implementation of a new policy regulating the payment card industry in the European Union.
Journal: Review of Political Economy
Pages: 23-44
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2016.1089098
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1089098
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:23-44
Template-Type: ReDIF-Article 1.0
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Author-Name: Yun K. Kim
Author-X-Name-First: Yun K.
Author-X-Name-Last: Kim
Author-Name: Jeremy Rees
Author-X-Name-First: Jeremy
Author-X-Name-Last: Rees
Title: Inequality, Debt Servicing and the Sustainability of Steady State Growth
Abstract:
We investigate the claim that the way in which debtor households service their debts matters for macroeconomic performance. A Kaleckian growth model is modified to incorporate working households who borrow to finance consumption that is determined, in part, by the desire to emulate the consumption patterns of more affluent households. The impact of this behavior on the sustainability of the growth process is then studied by means of a numerical analysis that captures various dimensions of income inequality. When compared with previous contributions to the literature, our results show that the way in which debtor households service their debt has both quantitative and qualitative effects on the economy's macrodynamics.
Journal: Review of Political Economy
Pages: 45-63
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2015.1072919
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1072919
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:45-63
Template-Type: ReDIF-Article 1.0
Author-Name: John Smithin
Author-X-Name-First: John
Author-X-Name-Last: Smithin
Title: Endogenous Money, Fiscal Policy, Interest Rates and the Exchange Rate Regime: A Comment on Palley, Tymoigne and Wray
Abstract:
One of the main collective contributions of the various heterodox schools of monetary thought, such as circuit theory, Post Keynesian theory, modern money theory (MMT) and others, has been to stress the importance of the endogeneity of money via bank credit creation. It is necessary to stress the notion of a collective contribution because of the various claims and counter-claims to academic priority made in the literature. The recent exchange between T.I. Palley and E. Tymoigne and L.R. Wray in this journal provides a clear example of this. This response examines the differences between these writers in some detail.
Journal: Review of Political Economy
Pages: 64-78
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2015.1092780
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1092780
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:64-78
Template-Type: ReDIF-Article 1.0
Author-Name: C. Sardoni
Author-X-Name-First: C.
Author-X-Name-Last: Sardoni
Title: A note on the sustainability of full employment in the presence of budget deficits
Abstract:
In a recent issue of this journal, Tymoigne and Wray, as well as Palley, discussed whether economies can experience stable full-employment equilibria with persistent public budget deficits. This implies continuous growth of a stock-variable: high-powered money and/or government bonds in the hands of the private sector. Their discussion assumed a stationary state. The question is whether such a situation can be regarded as sustainable over time. This paper argues that a satisfactory solution to the problem can be found only by abandoning the hypothesis of stationary state and considering the effects that different compositions of public expenditure have on the rate of growth. To have a stable full-employment equilibrium with budget deficits, the economy must grow. Since the economy is assumed to be in full employment, the growth of aggregate output must be entirely due to the growth of productivity, which can be realized by changing the composition of public spending in favor of productive expenditures.
Journal: Review of Political Economy
Pages: 79-89
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2015.1101828
File-URL: http://hdl.handle.net/10.1080/09538259.2015.1101828
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:79-89
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Toporowski
Author-X-Name-First: Jan
Author-X-Name-Last: Toporowski
Author-Name: Andy Denis
Author-X-Name-First: Andy
Author-X-Name-Last: Denis
Title: Microfoundations: Introduction
Journal: Review of Political Economy
Pages: 90-91
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2016.1108127
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1108127
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:90-91
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Toporowski
Author-X-Name-First: Jan
Author-X-Name-Last: Toporowski
Title: Microfoundations, Minsky and Classical Political Economy
Abstract:
The microfoundations discourse originated as a critique of modelling abstracted from theory, in the sense of an explanation of the economic decisions that are supposed to give rise to particular economic outcomes. However, reduction of theory to individual choices and optimisation, integrated by prices and markets, overlooks the key role played by the circular flow of income in integrating individual choices, noted by Schumpeter and Marx, and the key distinction between households and firms that underlies Keynesian macroeconomics and the theories of Minsky, because the expenditure decisions of firms determine aggregate incomes.
Journal: Review of Political Economy
Pages: 92-98
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2016.1108128
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1108128
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:92-98
Template-Type: ReDIF-Article 1.0
Author-Name: Victoria Chick
Author-X-Name-First: Victoria
Author-X-Name-Last: Chick
Title: On Microfoundations and Keynes’ Economics
Abstract:
Most mainstream economists regard the principles of ‘rational choice’ theory as the only foundation of economics and insist that macroeconomics be based on those principles. These include certainty or certainty-equivalence, which followers of Keynes reject. Macrofoundations of microeconomics are often proposed instead. We argue that the issue is more complex and explain why it is unlikely that a logically watertight fit between the two levels of analysis will ever be achieved. The complex interactions within and between the two levels suggest that it is unhelpful to assign foundational status to either level. We examine Keynes’ General Theory is examined as an example and compromises are found to fit the two together. It is argued that compromise is inevitable and that good theorising entails defending the compromises made.
Journal: Review of Political Economy
Pages: 99-112
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2016.1108130
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1108130
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:99-112
Template-Type: ReDIF-Article 1.0
Author-Name: Anthony J. Evans
Author-X-Name-First: Anthony J.
Author-X-Name-Last: Evans
Author-Name: Paul Dragos Aligica
Author-X-Name-First: Paul Dragos
Author-X-Name-Last: Aligica
Title: The Microfoundations of Austrian Economics through a New Classical Theoretical Lens
Abstract:
This paper is an attempt to contribute to the microfoundations debate by discussing the distinctive methodological characteristics of the Austrian school, and how they relate to different conceptions of equilibrium and general equilibrium models. Further, we shall focus on one specific branch of the Austrian school (those who see markets as exhibiting equilibrating tendencies) and one specific branch of neoclassical economics (the New Classical School) to highlight some hitherto overlooked points of tangency. Indeed, we shall use the monetary theories of Hayek and Lucas to argue that the limitations of New Classical models may lead to Austrian solutions.
Journal: Review of Political Economy
Pages: 113-133
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2016.1108131
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1108131
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:113-133
Template-Type: ReDIF-Article 1.0
Author-Name: Andy Denis
Author-X-Name-First: Andy
Author-X-Name-Last: Denis
Title: Microfoundations
Abstract:
This paper argues that the microfoundations programme can be understood as an implementation of an underlying methodological principle—methodological individualism—and that it therefore shares a fundamental ambiguity with that principle, viz, whether the macro must be derived from and therefore reducible to, or rather consistent with, micro-level behaviours. The pluralist conclusion of the paper is not that research guided by the principle of microfoundations is necessarily wrong, but that the exclusion of approaches not guided by that principle is indeed necessarily wrong. The argument is made via an examination of the advantages claimed for dynamic stochastic general equilibrium models, the relationship between parts and wholes in social science, and the concepts of reduction, substrate neutrality, the intentional stance and hypostatisation.
Journal: Review of Political Economy
Pages: 134-152
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2016.1108132
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1108132
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:134-152
Template-Type: ReDIF-Article 1.0
Author-Name: Alessandro Vercelli
Author-X-Name-First: Alessandro
Author-X-Name-Last: Vercelli
Title: Microfoundations, Methodological Individualism and Alternative Economic Visions
Abstract:
This article analyzes the standard descriptive and prescriptive uses of the phrase ‘microfoundations of macroeconomics’ as practised since the early 1970s within the discipline of economics. From a descriptive point of view, we maintain that generally this phrase is used to mean a very specific and idiosyncratic way of conceiving the relationship between individual and collective economic behaviour. From a prescriptive point of view, we argue that the requirement for robust macroeconomics that must repose on this particular approach is unjustified and dogmatic. The rapid and widespread adherence by the most influential economists and economic institutions to this approach since the early 1970s deeply transformed macroeconomics by inhibiting the systematic pursuit of alternative approaches. We claim that this extreme form of reductionism greatly restricts the empirical scope and policy efficacy of macroeconomics. We conclude that the relationship between individual and collective economic behaviour is a crucial issue that has to be pursued without any dogmatic a priori imperatives.
Journal: Review of Political Economy
Pages: 153-167
Issue: 1
Volume: 28
Year: 2016
Month: 1
X-DOI: 10.1080/09538259.2016.1108133
File-URL: http://hdl.handle.net/10.1080/09538259.2016.1108133
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Handle: RePEc:taf:revpoe:v:28:y:2016:i:1:p:153-167
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Persky
Author-X-Name-First: Joseph
Author-X-Name-Last: Persky
Title: Say’s Law, Marxian Crisis Theory and the Interconnectedness of the Capitalist Economy
Abstract:
Scholars have long debated exactly why Marx felt that general gluts were not just possible, but inevitable. This article argues that Theories of Surplus Value anchored that necessity in the complex interconnectedness that characterizes capitalist production. There, Marx’s criticism of Say’s Law builds on a version of crisis theory that begins with raw material shortages in a leading sector. The disturbance is then transmitted through the many inter-industry linkages in the capitalist economy. What starts as a supply-side shock in a leading sector is transformed into a broad crisis of aggregate demand as workers are laid off and businesses fall into insolvency. This article argues that Marx’s later discussion of other types of crises in Capital can be read as consistent with this approach. A severe profit squeeze in a leading sector (whether originating in intermediate good prices, market demand, rising wages or rising use of fixed capital) necessarily turns into a general glut. In this context, Say’s Law becomes an irrelevant theorem concerning an imaginary economy. What Marx sees as fundamentally new under capitalism is not the use of money and the separation of sale and purchase, but massive interconnectedness.
Journal: Review of Political Economy
Pages: 269-283
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1439575
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1439575
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:269-283
Template-Type: ReDIF-Article 1.0
Author-Name: Robert Boyer
Author-X-Name-First: Robert
Author-X-Name-Last: Boyer
Title: Marx's Legacy, Theory and Contemporary Capitalism
Abstract:
The 2008 financial crisis has challenged the merits of standard economic theories and sparked surprising references to Marxist analyses. A monetary economy is prone to crises, the interaction of competition with capital–labour relations launches relentless accumulation and over-accumulation crises exacerbate the built-in contradictions of the capitalist mode of production. Nevertheless, until now, these imbalances have not unfolded into its rapid and complete collapse. From the social and political struggles of labour and citizens, the 1929 crisis and finally the Second World War, new configurations emerge for the wage–labour nexus, the form of competition and the monetary and credit regime. These delineate an unprecedented accumulation regime, Fordism. In turn, Fordism enters a structural crisis and a dramatic change in institutionalized compromises favours a still different accumulation regime (finance-led) that evolved from one speculative boom to another till the 2008 American financial collapse. Thus the mobilization of Marx's foundational hypotheses by Régulation theory allows a better understanding than most alternative theories of major contemporary stylized facts: productivity slow-down and social polarization in mature economies, tensions between capitalism and democracy, new industrial capitalisms and limits to globalization.
Journal: Review of Political Economy
Pages: 284-316
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1449480
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1449480
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:284-316
Template-Type: ReDIF-Article 1.0
Author-Name: M. C. Howard
Author-X-Name-First: M. C.
Author-X-Name-Last: Howard
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: MARX@200
Abstract:
The article begins by outlining the philosophic anthropology that Marx derived from his reading of Hegel. We continue by arguing that this formed the basis of his materialist conception of history and his analysis of the political economy of the capitalist mode of production, with particular reference being made to Marx’s theory of value and his account of the economic contradictions of the capitalist system. We then discuss his views on the nature of post-capitalist society, concluding with a critical but broadly positive account of the relevance of his ideas to modern capitalism. Marx, we suggest, should not be regarded as a purely 19th-century thinker, as some recent biographers have maintained.
Journal: Review of Political Economy
Pages: 317-338
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1449478
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1449478
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:317-338
Template-Type: ReDIF-Article 1.0
Author-Name: Ben Fine
Author-X-Name-First: Ben
Author-X-Name-Last: Fine
Author-Name: Alfredo Saad-Filho
Author-X-Name-First: Alfredo
Author-X-Name-Last: Saad-Filho
Title: Marx 200: The Abiding Relevance of the Labour Theory of Value
Abstract:
Marxist political economy is alive and well, and not just because of the habitual turn to Marx in response to any crisis of capitalism. Both through Capital and through the continuing evolution of Marxism, Marxist political economy offers valuable insights that can illuminate the modalities of social and economic reproduction and the relationships between (different aspects of) the economic and the non-economic. Marxism’s presence has been felt through its own internal debates and debates with other approaches to political economy, and even through its influence on those reacting against Marxism. The key to the continuing relevance and analytical strengths of Marxist political economy lies in its capacity to provide a framework of analysis for unifying disparate insights into and critiques of the contradictions of capitalism across the social sciences. The instrument for forging that unity is Marx’s theory of value, the potential of which is examined and illustrated with reference to the Sraffian critique and two key concepts in Marxian political economy: the value of labour power and financialisation. They are explored in the light of the processes of commodification, commodity form and commodity calculation.
Journal: Review of Political Economy
Pages: 339-354
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1424068
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1424068
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:339-354
Template-Type: ReDIF-Article 1.0
Author-Name: Barbara Harriss-White
Author-X-Name-First: Barbara
Author-X-Name-Last: Harriss-White
Title: Awkward Classes and India's Development
Abstract:
Marx's model of capital and labour, dynamised by contradictions and the compulsion to accumulate, leaves deviations from the polar classes of capital and labour ignored, regarded as outliers or as headed for extinction. But the two considered here, petty commodity production (and trade and services) and merchant’s or commercial capital, persist widely. Here, their structure and dynamics are discussed in general and in the contemporary Indian case. They are argued to be ‘awkward’, both analytically and politically. Petty production overlaps with both wage-labour and small capitalist firms; it reproduces and expands by multiplication, not accumulation; it does not mobilise in a politically coherent way. Commercial capital is in turn suffused with productive activity; it encompasses petty trade and accumulating enterprises that pursue a reactive opportunistic politics that preserves their independence. Further awkwardness results from the disjuncture between analytically useful categories and the policy concepts used by the state.
Journal: Review of Political Economy
Pages: 355-376
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1478507
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1478507
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:355-376
Template-Type: ReDIF-Article 1.0
Author-Name: Jamie Morgan
Author-X-Name-First: Jamie
Author-X-Name-Last: Morgan
Title: Species Being in the Twenty-First Century
Abstract:
In this article, I focus on what is implicitly the more humanist aspect of Marx’s work. That is, species being and alienation. I do so informed by a commitment to pluralism and based on a background in social ontology. I argue that species being and alienation continue to provide insight into the nature of the modern world. They are integral components to Marx’s exploration and constructive critique of capitalism and help to make sense of how potential is shaped for a social entity who can be harmed and who can flourish. However, the way in which one relates to Marx as still relevant regarding these matters can cover a range. I then set out how species being provides useful insight in the twenty-first century at a time of anticipated major social and economic change.
Journal: Review of Political Economy
Pages: 377-395
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1498583
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1498583
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:377-395
Template-Type: ReDIF-Article 1.0
Author-Name: Terrence McDonough
Author-X-Name-First: Terrence
Author-X-Name-Last: McDonough
Author-Name: Cian McMahon
Author-X-Name-First: Cian
Author-X-Name-Last: McMahon
Title: Marxism, Crypto-Marxism and the Political Economy of Capitalism
Abstract:
This article conducts groundwork for a discussion of Marx’s influence through examining the boundaries of the specifically Marxian school of economics. This Marxian school extends well beyond the bounds of the self-identified Marxian school. Marx’s influence, Marxian themes and effectively Marxian theory can be found in several important heterodox traditions of economics, though this is often unacknowledged. A consideration of the proper boundaries of the Marxian school of economics is essential for a full understanding of Marx’s legacy and could contribute to the emergence of a more unified heterodoxy in economics.
Journal: Review of Political Economy
Pages: 396-415
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1495350
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1495350
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:396-415
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Toporowski
Author-X-Name-First: Jan
Author-X-Name-Last: Toporowski
Title: Marx, Finance and Political Economy
Abstract:
Shortly after the publication of Volume I of Capital, the financial requirements of capitalist enterprise forced the financial innovation of bond and stock finance for joint stock companies. Marx intended to re-write Capital in order to incorporate this change. He did not achieve this. The economic analysis of capitalism with long-term finance was undertaken by Hilferding in his Finance Capital. Thereafter, a strand of economic analysis of production and distribution emerged in the work of the Austro-Marxists, Veblen, Keynes, Kalecki, Steindl and Sweezy, and the Italian Kaleckians, Joseph Halevi and Riccardo Bellofiore, which incorporated the change made to the structure and dynamics of capitalism by long-term finance. However, this shift in capitalist financing has largely been ignored in economic theory, while much of the heterodox analysis that seeks to challenge the role of finance in contemporary capitalism has not integrated finance consistently. The change from the classic capitalism to finance capital raises important questions about the meaning and relevance of Marx’s work today.
Journal: Review of Political Economy
Pages: 416-427
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1496549
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1496549
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:416-427
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Gehrke
Author-X-Name-First: Christian
Author-X-Name-Last: Gehrke
Author-Name: Heinz D. Kurz
Author-X-Name-First: Heinz D.
Author-X-Name-Last: Kurz
Title: Sraffa’s Constructive and Interpretive Work, and Marx
Abstract:
This article provides a summary account of Piero Sraffa’s constructive and interpretive work on the classical approach to the theory of value and distribution and its relationship with Marx’s contributions. It is shown that in the early phase of his constructive work Sraffa developed his equation systems by adopting a ‘physical real cost’ approach and a strictly objectivist point of view, and completely eschewed Marx’s labour-based approach and the related Marxian concepts. Only at a later stage did he explore systematically the relationship between his own modern re-formulation of the surplus approach to the theory of value and distribution and Marx’s contribution. He considered Marx’s most important analytical contribution to the further development of the surplus approach to consist of the re-integration of circular production relations, which allowed him to see the existence of a maximum rate of profits and its role in an analysis of accumulation and technical change.
Journal: Review of Political Economy
Pages: 428-442
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1442783
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1442783
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:428-442
Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Tregenna
Author-X-Name-First: Fiona
Author-X-Name-Last: Tregenna
Title: Sectoral Structure and Change: Insights from Marx
Abstract:
At the time of Marx’s birth two centuries ago, the Industrial Revolution was well underway, and the economic and social changes which it wrought formed the backdrop to Marx’s own ideas. The advanced economies of the world were then industrialising, yet today most countries are deindustrialising. What light can a Marxist analysis shed on sectoral structure, sectoral specificity and sectoral change in the early 21st century? A Marxist approach is distinctive and valuable in how it approaches these sectoral issues, and the following interrelated aspects are discussed here: classifying activities in the first instance according to position in the circuit of capital rather than by sectors; a non-phenomenological approach to classifying activities; a non-physicalist conception of commodities; underscoring the extent of intra-sectoral heterogeneity; recognising the importance of manufacturing and of industrialisation; and implications for analysing changes in sectoral structure.
Journal: Review of Political Economy
Pages: 443-460
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1483105
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1483105
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:443-460
Template-Type: ReDIF-Article 1.0
Author-Name: Ramaa Vasudevan
Author-X-Name-First: Ramaa
Author-X-Name-Last: Vasudevan
Title: Shadow Money in the 19th Century: Is Marx Relevant for Understanding Contemporary Shadow Money?
Abstract:
The growth of shadow money, since the 1980s, has implications for both central bank policy and the theorization of money. However, modern shadow money has a historical analogue in the private bill market of 19th century England This article explores the relevance of Marx’s logical and historical analysis of the evolution of the forms and functions of money in capitalist economies, and his concrete analysis of the bill market in order to understand shadow money today.
Journal: Review of Political Economy
Pages: 461-483
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1478509
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1478509
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:461-483
Template-Type: ReDIF-Article 1.0
Author-Name: Simon Derpmann
Author-X-Name-First: Simon
Author-X-Name-Last: Derpmann
Title: Money as a Generic Particular: Marx and Simmel on the Structure of Monetary Denominations
Abstract:
This article is concerned with the structure of monetary denominations of economic value. Marx and Simmel analyze this structure by means of references to objects of mere catallactic validity. These objects are ontologically atypical insofar as they are particulars of the genus commodity. Understanding money through generic particulars elucidates the conceptual link between money as a unit of account and money as a means of payment. This initially perplexing idea captures a fundamental characteristic of money without committing to either a commodity theory or a claim theory of money. A modification of the notion ‘commodity’ allows for a conception of money as a generic particular that is consistent with contemporary accounts of money as abstract purchasing power residing in different forms of liabilities and claims denominated in a common quantitative scale.
Journal: Review of Political Economy
Pages: 484-501
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1464768
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1464768
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:484-501
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: A Note of Thanks
Journal: Review of Political Economy
Pages: 502-503
Issue: 3
Volume: 30
Year: 2018
Month: 7
X-DOI: 10.1080/09538259.2018.1513235
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1513235
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:3:p:502-503
Template-Type: ReDIF-Article 1.0
Author-Name: Emiliano Brancaccio
Author-X-Name-First: Emiliano
Author-X-Name-Last: Brancaccio
Author-Name: Francesco Saraceno
Author-X-Name-First: Francesco
Author-X-Name-Last: Saraceno
Title: Evolutions and Contradictions in Mainstream Macroeconomics: The Case of Olivier Blanchard
Abstract:
This article traces the complex intellectual path of Olivier Blanchard, a personification of the controversial evolution of macroeconomic research over the last three decades. After contributing to consolidation of the core of mainstream macroeconomics, Blanchard recently suggested ‘rethinking’ some of its key aspects to take stock of the lessons of the 2008 Great Recession, which he witnessed as the International Monetary Fund’s Chief Economist. This welcome discussion, which according to Blanchard should open mainstream macroeconomics to heterodox thinking, has so far produced a certainly interesting albeit theoretically contradictory synthesis and limited policy consequences. The most paradigmatic aspect of this rethinking of macroeconomics is represented by the abandonment in teaching of aggregate supply and demand in favor of a revival of the IS–LM model complemented by the Phillips curve. While this change of perspective does allow for the instability of ‘natural’ equilibrium to be emphasized, a deeper reading may prove incompatible with the neoclassical foundations of the mainstream approach.
Journal: Review of Political Economy
Pages: 345-359
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1330378
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1330378
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:345-359
Template-Type: ReDIF-Article 1.0
Author-Name: Jochen Hartwig
Author-X-Name-First: Jochen
Author-X-Name-Last: Hartwig
Title: The Comparative Statics of Effective Demand
Abstract:
Keynes introduces the term ‘effective demand’ in Chapter 3 of the General Theory as designating the point of intersection of two functions: the ‘aggregate demand function’ (D) and the ‘aggregate supply function’ (Z). For the first time in the literature, I here use specific functional forms for the D and Z functions and run numerical simulations which allow study of the comparative statics of the model in the face of various ‘shocks’. The demonstration of how the D/Z model actually works will hopefully prove useful for future students of the economics of Keynes.
Journal: Review of Political Economy
Pages: 360-375
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1352191
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1352191
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:360-375
Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Barradas
Author-X-Name-First: Ricardo
Author-X-Name-Last: Barradas
Title: Financialisation and Real Investment in the European Union: Beneficial or Prejudicial Effects?
Abstract:
This article presents an empirical analysis of the relationship between financialisation and real investment for non-financial corporations using panel data composed of 27 European Union countries over 19 years (1995 to 2013). On the one hand, financialisation leads to a rise in financial investments, diverting funds from real investments (‘crowding out’ effect); on the other, pressures from shareholders to intensify financial payments restrict the funds available for new real investments. We estimate an aggregate investment equation with the traditional variables (lagged investment, profitability, debt, cost of capital, corporate savings and output growth) and two further measures of financialisation (financial receipts and financial payments). The findings demonstrate that financialisation has damaged real investment in European Union countries, mainly through the channel of financial payments, either by interest or dividend payments. It is also found that the prejudicial effects of financialisation on investment were more severe in the pre-2007 crisis period. It is concluded that financialisation contributed to a slowdown of real investment by 1 to 8 per cent in the full and pre-crisis period, respectively. During the pre-crisis period, financialisation was the main driver of the slowdown of investment in the European Union.
Journal: Review of Political Economy
Pages: 376-413
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1348574
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1348574
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:376-413
Template-Type: ReDIF-Article 1.0
Author-Name: Per L. Bylund
Author-X-Name-First: Per L.
Author-X-Name-Last: Bylund
Author-Name: G.P. Manish
Author-X-Name-First: G.P.
Author-X-Name-Last: Manish
Title: Private Property and Economic Calculation: A Reply to Andy Denis
Abstract:
Two years ago, in an article in this journal, Andy Denis revisited and added to the Socialist Calculation Debate, one of the 20th century’s greatest debates in economic theory. Denis argued that Austrian economists draw unsupported conclusions from their argument in claiming that private rather than several property is necessary for economic calculation. We note in this article that Denis’ argument rests on two key points: first, that the legal owners of capital, or the capitalists, play a purely passive role in the resource allocation process, and, second, that it is the managers who bear the entire burden of speculative decision making and economic calculation. We then proceed to criticize both points. Key to our argument is the fundamental insight of Austrian economics that the market is an open-ended process of discovery, coordination and value creation, where resource ownership and allocation is impossible to sever from entrepreneurship due to the inherent uncertainty of the future. We argue that, from the Austrian market process perspective, economic calculation indeed requires private property, and not simply several control, because entrepreneurship under competitive discovery must be subject to both the lure of profit and the risk of loss.
Journal: Review of Political Economy
Pages: 414-431
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1352193
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1352193
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:414-431
Template-Type: ReDIF-Article 1.0
Author-Name: Andy Denis
Author-X-Name-First: Andy
Author-X-Name-Last: Denis
Title: Private Property or Several Control: A Rejoinder
Abstract:
Following Mises’s foundational paper, ‘Economic Calculation in the Socialist Commonwealth’, first published in 1920, writers in the Austrian tradition have argued that socialism is impossible, because under socialism there would be no private property in the means of production, and without that private property economic calculation could not take place. In the article ‘Economic Calculation: Private Property or Several Control?’, published in this journal in 2015, I argued that this was mistaken. Not private property, but several control, was required for economic calculation, and since several control is consistent with public ownership, this argument for the impossibility of socialism fails. Another article, ‘Private Property and Economic Calculation: A Reply to Andy Denis’, by Bylund and Manish, published in this issue of the Review of Political Economy, defends the traditional interpretation of Austrian reasoning, contending that my argument fails. My rejoinder re-states the issues, addressing, and, ultimately rejecting, the Bylund and Manish critique.
Journal: Review of Political Economy
Pages: 432-439
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1359383
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1359383
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:432-439
Template-Type: ReDIF-Article 1.0
Author-Name: Robert L. Vienneau
Author-X-Name-First: Robert L.
Author-X-Name-Last: Vienneau
Title: The Choice of Technique with Multiple and Complex Interest Rates
Abstract:
This article clarifies the relationships between internal rates of return (IRR), net present value (NPV), and the analysis of the choice of technique in models of production analyzed during the Cambridge capital controversy. Multiple and possibly complex roots of polynomial equations defining the IRR are considered. An algorithm, using these multiple roots to calculate the NPV, justifies the traditional analysis of reswitching.
Journal: Review of Political Economy
Pages: 440-453
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1346039
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1346039
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:440-453
Template-Type: ReDIF-Article 1.0
Author-Name: Christine Ngoc Ngo
Author-X-Name-First: Christine Ngoc
Author-X-Name-Last: Ngo
Title: Political Economy of Industrial Development in Vietnam’s Telecommunications Industry: A Rent Management Analysis
Abstract:
This article contributes to the current debate in economics on the uses and benefits of rents and rent seeking. On the one hand, public choice and neoliberal scholars highlight the redistributive and damaging aspects of rent seeking, thus rendering the policy suggestion to completely eradicate rents and rent seeking in an economy. On the other hand, institutional and development economists point out the inherent theoretical inconsistencies shown in the earlier models, and suggest that certain types of rent and rent seeking could be growth-enhancing. Using the Developmental Rent Management Analysis, this article assesses the industrial development of the telecommunications industry in Vietnam using two case studies. Qualitative research points out a number of rent management factors contributing both to the industry’s failure before the early 2000s and its subsequent success thereafter. The successful development of the telecommunications industry was fundamentally based on (i) favorable political support for rent creation, (ii) an effective structure of rent allocation and implementation, and (iii) credible incentives and pressures that encouraged local firms’ industrial upgrading. The Vietnamese experience suggests that rents can be developmental, conceivably side-by-side with rent seeking, cronyism and corruption.
Journal: Review of Political Economy
Pages: 454-477
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1339436
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1339436
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:454-477
Template-Type: ReDIF-Article 1.0
Author-Name: Carl Wennerlind
Author-X-Name-First: Carl
Author-X-Name-Last: Wennerlind
Title: An Age of Risk: Politics and Economy in Early Modern Britain
Journal: Review of Political Economy
Pages: 478-480
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1352127
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1352127
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:478-480
Template-Type: ReDIF-Article 1.0
Author-Name: Scott Scheall
Author-X-Name-First: Scott
Author-X-Name-Last: Scheall
Title: Hume: An Intellectual Biography
Journal: Review of Political Economy
Pages: 480-484
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1352130
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1352130
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:480-484
Template-Type: ReDIF-Article 1.0
Author-Name: Phil Armstrong
Author-X-Name-First: Phil
Author-X-Name-Last: Armstrong
Title: The Oxford Handbook of Post-Keynesian Economics, Volume 1, Theory and Origins / The Oxford Handbook of Post-Keynesian Economics, Volume 2, Critiques and Methodology
Journal: Review of Political Economy
Pages: 484-491
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1352132
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1352132
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:484-491
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: A Note of Thanks
Journal: Review of Political Economy
Pages: 492-492
Issue: 3
Volume: 29
Year: 2017
Month: 7
X-DOI: 10.1080/09538259.2017.1357926
File-URL: http://hdl.handle.net/10.1080/09538259.2017.1357926
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Handle: RePEc:taf:revpoe:v:29:y:2017:i:3:p:492-492
Template-Type: ReDIF-Article 1.0
Author-Name: Marcella Corsi
Author-X-Name-First: Marcella
Author-X-Name-Last: Corsi
Author-Name: Carlo D'Ippoliti
Author-X-Name-First: Carlo
Author-X-Name-Last: D'Ippoliti
Author-Name: Giulia Zacchia
Author-X-Name-First: Giulia
Author-X-Name-Last: Zacchia
Title: A Case Study of Pluralism in Economics: The Heterodox Glass Ceiling in Italy
Abstract:
Quantitative measures of supposed scientific ‘quality’ (or ‘impact’) based on bibliometric indicators are used as the primary or exclusive tools of research evaluation in a growing number of countries. The negative impact of this method of evaluation on pluralism in economic teaching and research has been documented in Italy, France, Australia and the United Kingdom. We provide new evidence for Italy by investigating the CVs and publications of all candidates for the ‘national scientific qualification’, which is needed to access all tenured Italian academic positions. With respect to past evidence, we focus on the homologation of research topics and methods as well as the delegitimization of particular publication outlets. Our analysis has relevant implications internationally. First, research evaluation aimed at identifying ‘excellence’ often boils down to (as in the case of Italy) the adoption of rankings of supposedly top journals, which systematically discriminate against heterodox journals. Second, the legitimacy of academic research published in the form of books and book chapters must be reclaimed. Third, heterodox economists risk discrimination not so much because of their methods or policy recommendations, but because of the topics and research fields they investigate.
Journal: Review of Political Economy
Pages: 172-189
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1423974
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1423974
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:172-189
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Mearman
Author-X-Name-First: Andrew
Author-X-Name-Last: Mearman
Author-Name: Danielle Guizzo
Author-X-Name-First: Danielle
Author-X-Name-Last: Guizzo
Author-Name: Sebastian Berger
Author-X-Name-First: Sebastian
Author-X-Name-Last: Berger
Title: Whither Political Economy? Evaluating the CORE Project as a Response to Calls for Change in Economics Teaching
Abstract:
This article offers a critique of a major recent initiative in economics teaching: the CORE project. CORE emerged in the wake of the global financial crisis, which was also something of a crisis for economics. The article deploys four evaluative criteria to pose four questions of CORE that address the demands of the student movement. CORE claims to be innovative and responsive to criticism. However, the article concludes that its reforms are relatively minor and superficial. CORE, like curricula that preceded the global financial crisis, still exhibits limited pluralism, ignores power and politics, and ignores key educational goals. Despite its opportunity to do so, CORE has not opened up space within economics for the teaching of political economy.
Journal: Review of Political Economy
Pages: 241-259
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1426682
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1426682
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:241-259
Template-Type: ReDIF-Article 1.0
Author-Name: Bernard Chavance
Author-X-Name-First: Bernard
Author-X-Name-Last: Chavance
Author-Name: Agnès Labrousse
Author-X-Name-First: Agnès
Author-X-Name-Last: Labrousse
Title: Institutions and ‘Science’: The Contest about Pluralism in Economics in France
Abstract:
For a long time, France was a country in which various approaches to economics coexisted. This pluralism began to dwindle in the mid-1990s. Since then, France has witnessed the increasing and now overwhelming domination of mainstream economics. This article, drawing on a study of the evolution of the recruitment of professors of economics in France, documents the situation and links the observed trends to the changing institutions governing the discipline (a centralized system evolving under the influence of international norms and instruments). It is demonstrated that far from being fair and neutral devices, the rules and instruments governing economics—notably the ranking lists of economic journals—incorporate specific worldviews strongly biasing the assessment of research toward the mainstream. This article documents the tentative use of ‘voice and exit’ by the French Association of Political Economy to reform the economics discipline. Furthermore, it discusses the arguments proclaimed by Jean Tirole to prevent the French Ministry of Higher Education from creating a new university section called ‘Economy and Society’ to reinstate pluralism: they fall back on a monistic view of science that is questioned notably by developments—both factual and conceptual—in science studies and epistemology.
Journal: Review of Political Economy
Pages: 190-209
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1449472
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1449472
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:190-209
Template-Type: ReDIF-Article 1.0
Author-Name: Florentin Glötzl
Author-X-Name-First: Florentin
Author-X-Name-Last: Glötzl
Author-Name: Ernest Aigner
Author-X-Name-First: Ernest
Author-X-Name-Last: Aigner
Title: Orthodox Core–Heterodox Periphery? Contrasting Citation Networks of Economics Departments in Vienna
Abstract:
The notion of an ‘orthodox core–heterodox periphery’ structure and the extent of interdisciplinary links have been widely discussed, and partially investigated bibliometrically, within economic discourse. We extend this research by applying tools from social network analysis to citation data of three economics departments located in Vienna, two mainstream and one non-mainstream, to assess their relative citation patterns. We show that both mainstream economics departments follow the asserted core–periphery pattern and have a mono-disciplinary research focus, while the citation network of the non-mainstream department has a polycentric structure and is both more heterodox and interdisciplinary. These findings suggest that discussions about the future of heterodox economics should pay more attention to the organizational level and seek allies from other disciplines.
Journal: Review of Political Economy
Pages: 210-240
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1449619
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1449619
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:210-240
Template-Type: ReDIF-Article 1.0
Author-Name: Gregory P. Nowell
Author-X-Name-First: Gregory P.
Author-X-Name-Last: Nowell
Title: Keynes: Useful Economics for the World Economy
Journal: Review of Political Economy
Pages: 260-263
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1450190
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1450190
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:260-263
Template-Type: ReDIF-Article 1.0
Author-Name: Antonio Calcara
Author-X-Name-First: Antonio
Author-X-Name-Last: Calcara
Title: Critical Methods in Political and Cultural Economy
Journal: Review of Political Economy
Pages: 266-267
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1450191
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1450191
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:266-267
Template-Type: ReDIF-Article 1.0
Author-Name: Collin G. Matton
Author-X-Name-First: Collin G.
Author-X-Name-Last: Matton
Title: Just One More Hand: Life in the Casino Economy
Journal: Review of Political Economy
Pages: 263-265
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1456771
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1456771
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:263-265
Template-Type: ReDIF-Article 1.0
Author-Name: Cédric Durand
Author-X-Name-First: Cédric
Author-X-Name-Last: Durand
Author-Name: Maxime Gueuder
Author-X-Name-First: Maxime
Author-X-Name-Last: Gueuder
Title: The Profit–Investment Nexus in an Era of Financialisation, Globalisation and Monopolisation: A Profit-Centred Perspective
Abstract:
During recent decades, the link between profits and domestic investment has weakened in the largest high-income economies. In this article, we explore this attenuation of the profit–investment nexus through a profit-centred perspective. Focusing on the impact of the origins and uses of profits, we study the investment behaviour of non-financial corporations in relation to their profits at the macro level since 1970, a period marked by financialisation, globalisation and, more recently, monopolisation. We contrast and discuss four competing hypothese—the revenge of the rentiers, the financial turn of accumulation, globalisation and monopolisation—and related stylised facts for France, Germany, Japan, the United Kingdom and the United States.
Journal: Review of Political Economy
Pages: 126-153
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1457211
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1457211
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:126-153
Template-Type: ReDIF-Article 1.0
Author-Name: Bill Gibson
Author-X-Name-First: Bill
Author-X-Name-Last: Gibson
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Title: Intermediation, Money Creation, and Keynesian Macrodynamics in Multi-agent Systems
Abstract:
This paper offers a simple computational model of monetary creation, derived from individual agent behavior, that provides additional support for the well-known and more or less universally accepted idea that money creation is inevitable in demand-driven Keynesian economies. The endogeneity of money is linked to asynchronous production, in which investment is set autonomously by a combination of animal spirits and capacity utilization, while savings adjusts to bring about macroeconomic equilibrium. It is seen that once these Keynesian motifs are translated into the agent-based framework, endogenous money arises as a natural consequence of the model. The contribution of the paper is twofold. First, it links endogenous money creation to decision making in real historical time—two shibboleths of post-Keynesian macroeconomics. Second, it suggests a fruitful cross-fertilization between post-Keynesian economics and the methods of agent-based modeling.
Journal: Review of Political Economy
Pages: 154-171
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1458494
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1458494
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:154-171
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Review of Political Economy
Pages: 268-268
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1482993
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1482993
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:268-268
Template-Type: ReDIF-Article 1.0
Author-Name: Peter E. Earl
Author-X-Name-First: Peter E.
Author-X-Name-Last: Earl
Title: Richard H. Thaler: A Nobel Prize for Behavioural Economics
Abstract:
This paper provides an overview of Richard Thaler’s career and the contributions to behavioural economics that earned him the 2017 Nobel Memorial Prize in Economic Sciences. It focuses on his role in exposing and making sense of empirical anomalies in orthodox economics, his analysis of mental accounting, and his work with Cass Sunstein on the notion of libertarian paternalism and the ‘nudge’-based behavioural approach to economic policy. It then considers his contributions critically and explores how, unlike previous behavioural economics, Thaler succeeded in getting his new approach to behavioural economics accepted by mainstream economists.
Journal: Review of Political Economy
Pages: 107-125
Issue: 2
Volume: 30
Year: 2018
Month: 4
X-DOI: 10.1080/09538259.2018.1513236
File-URL: http://hdl.handle.net/10.1080/09538259.2018.1513236
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Handle: RePEc:taf:revpoe:v:30:y:2018:i:2:p:107-125
Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Deleidi
Author-X-Name-First: Matteo
Author-X-Name-Last: Deleidi
Author-Name: Mariana Mazzucato
Author-X-Name-First: Mariana
Author-X-Name-Last: Mazzucato
Title: Putting Austerity to Bed: Technical Progress, Aggregate Demand and the Supermultiplier
Abstract:
The paper investigates the determinants of private investment and economic growth from a theoretical perspective. We start with a critical analysis of the crowding-out effect and we present a new version of the Sraffian Supermultiplier: a model that accounts for both the multiplier and accelerator effects. We focus on different types of fiscal policies: generic ones and ‘mission-oriented’ ones that set a new direction for the economy. We show that mission-oriented policies have the potential to generate the largest positive effect on investments and output growth as well as on innovation processes and labour productivity growth.
Journal: Review of Political Economy
Pages: 315-335
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2019.1687146
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1687146
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:315-335
Template-Type: ReDIF-Article 1.0
Author-Name: Anders Fremstad
Author-X-Name-First: Anders
Author-X-Name-Last: Fremstad
Author-Name: Luke Petach
Author-X-Name-First: Luke
Author-X-Name-Last: Petach
Author-Name: Daniele Tavani
Author-X-Name-First: Daniele
Author-X-Name-Last: Tavani
Title: Climate Change, Innovation, and Economic Growth: The Contributions of William Nordhaus and Paul Romer
Abstract:
William Nordhaus and Paul Romer shared the 2018 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their work on long-run macroeconomic analysis. Nordhaus adapted the neoclassical growth model to study climate change, while Romer developed a model of innovation-based growth. The authors provide two distinct explanations of what drives growth, and employ contrasting methodologies for interpreting the results of their mathematical models. Macroeconomic policy in general, and climate policy in particular, would benefit from better integrating the theory and methods of these two laureates.
Journal: Review of Political Economy
Pages: 336-355
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2019.1663635
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1663635
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:336-355
Template-Type: ReDIF-Article 1.0
Author-Name: Stefanos Ioannou
Author-X-Name-First: Stefanos
Author-X-Name-Last: Ioannou
Author-Name: Dariusz Wójcik
Author-X-Name-First: Dariusz
Author-X-Name-Last: Wójcik
Author-Name: Gary Dymski
Author-X-Name-First: Gary
Author-X-Name-Last: Dymski
Title: Too-Big-To-Fail: Why Megabanks Have Not Become Smaller Since the Global Financial Crisis?
Abstract:
More than ten years after the global financial crisis, what has happened to the ‘too-big-to-fail’ (TBTF) banks whose reckless behavior was among its preconditions, but which received public support and guarantees in the midst of that crisis? Insofar as this too-big-to-fail status helped create the crisis and then imposed costs on the rest of society, we would expect these banks to have shrunk. We investigate the evolution of 31 global-TBTF banks and find that their overall size has hardly recorded any substantial change. However, there is no sense of urgency in the flourishing post-crisis literature on TBTF banks about the need to contain their size; the prevalent view therein is that if properly regulated, the risks that arise from a financial system dominated by TBTF banks are manageable. This view rests on the same overly narrow theoretical underpinnings whose flaws were exposed in the crisis. We argue that too-big-to-fail banking is embedded in a set of self-reinforcing policies—consolidation, balance-sheet support through quantitative easing, favorable regulations, bank lobbying, and geo-economic and geo-political considerations—which explain why these banks have not shrunk and why they remain a threat to financial stability, well after the lessons of the crisis should have been learned.
Journal: Review of Political Economy
Pages: 356-381
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2019.1674001
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1674001
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:356-381
Template-Type: ReDIF-Article 1.0
Author-Name: Giancarlo Bertocco
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Bertocco
Author-Name: Andrea Kalajzić
Author-X-Name-First: Andrea
Author-X-Name-Last: Kalajzić
Title: Great Recession and Macroeconomic Theory: A Useless Crisis?
Abstract:
The global financial crisis of 2007–08 and the subsequent Great Recession have pushed many economists to acknowledge a fundamental limit in the theoretical models elaborated after the monetarist counter-revolution: these models disregard the financial system. The years following the Great Recession have thus been marked by the development of what can be called the ‘Financial Frictions Approach’, a theoretical approach based on the addition of the financial system to the New Keynesian DSGE model. The results of this line of research are beginning to appear also in macroeconomics textbooks. Significant examples are the publication of the seventh edition of Blanchard’s textbook, and the publication of the third edition of the textbook co-authored by Blanchard, Amighini and Giavazzi. The objective of this work is twofold: (i) to show that the new model presented by Blanchard, Amighini and Giavazzi, which reflects the results of the ‘Financial Frictions Approach’, does not allow to elaborate a coherent explanation of the Great Recession and (ii) to present the pillars of an alternative theoretical model based on the lessons of Keynes, Schumpeter and Minsky.
Journal: Review of Political Economy
Pages: 382-406
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2020.1714202
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1714202
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:382-406
Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Cordonnier
Author-X-Name-First: Laurent
Author-X-Name-Last: Cordonnier
Author-Name: Thomas Dallery
Author-X-Name-First: Thomas
Author-X-Name-Last: Dallery
Author-Name: Vincent Duwicquet
Author-X-Name-First: Vincent
Author-X-Name-Last: Duwicquet
Author-Name: Jordan Melmies
Author-X-Name-First: Jordan
Author-X-Name-Last: Melmies
Author-Name: Franck Van de velde
Author-X-Name-First: Franck
Author-X-Name-Last: Van de velde
Title: The (Over)Cost of Capital: Financialization and Nonfinancial Corporations in France (1961–2011)
Abstract:
The term ‘financialization’ is often used to describe the major changes that occurred in the macroeconomic regimes of most developed and, to a lesser extent, emerging economies since the beginning of the 1980s. In the present paper, we propose a reappraisal of the notion of the cost of capital and subsequently argue that financialization in France has increased the cost of capital for nonfinancial corporations with new standards of financial profitability. We introduce a measurement for what could be called the over-cost of capital and describe how the evolution of this additional financial burden may explain the slowdown in the pace of capital accumulation, and thus the drop in French macroeconomic performance observed for the past 30 years.
Journal: Review of Political Economy
Pages: 407-429
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2019.1706265
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1706265
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:407-429
Template-Type: ReDIF-Article 1.0
Author-Name: Joseph Persky
Author-X-Name-First: Joseph
Author-X-Name-Last: Persky
Title: Von Thünen’s Political Economy of Justice
Abstract:
While von Thünen has been much praised for his agricultural economics and his contributions to marginal productivity theory, his political economy of justice has only rarely been taken seriously. Thünen’s political economy puts forth a normative theoretical structure, a positive analysis of the real world barriers that prevent that structure from emerging, and a reform program to begin addressing the issues of distributional justice in a capitalist economy. He deserves recognition as one of the first economists to attempt a rigorous description of economic justice in a market context. Whatever its mathematical errors, his theory of natural wages is a path breaking attempt to formalize a normative theory of justice. Moreover his discussion in the European context of the practical barriers to achieving a more just distribution represents an important and nuanced positive contribution. The final component of Thünen’s political economy of justice is his practical reform program. While that program may fall short of the more elaborate suggestions put forward by his contemporary, John Stuart Mill, it shows a sincere sensitivity to the welfare of the working classes.
Journal: Review of Political Economy
Pages: 430-444
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2019.1692464
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1692464
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:430-444
Template-Type: ReDIF-Article 1.0
Author-Name: Ramesh Chandra
Author-X-Name-First: Ramesh
Author-X-Name-Last: Chandra
Title: Nicholas Kaldor on Adam Smith and Allyn Young
Abstract:
Nicholas Kaldor was much influenced by the Smith-Young view of increasing returns. The objective of this paper is to critically examine Kaldor’s interpretation of Smith and Young. In particular, five questions are addressed: (1) Does Smith’s Wealth of Nations have nothing much to contribute in terms of disequilibrium theory or increasing returns after the middle of chapter four? (2) Did Smith and Young have a sectoral view of increasing returns in the sense that they saw increasing returns being confined to manufacturing only? (3) Does the Youngian growth mechanism need to be supplemented with Keynesian aggregate demand so that growth does not fizzle out? (4) What are the important policy differences between Kaldor and the Smith-Young analysis of increasing returns? (5) Finally, what explains Kaldor’s interventionist bent of mind and his dirigiste approach to policy making?
Journal: Review of Political Economy
Pages: 445-463
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2019.1685798
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1685798
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:445-463
Template-Type: ReDIF-Article 1.0
Author-Name: Nina Eichacker
Author-X-Name-First: Nina
Author-X-Name-Last: Eichacker
Title: Rethinking the Theory of Money, Credit, and Macroeconomics: A Review Essay
Abstract:
This essay presents an overview and assessment of John Smithin's 2018 book Rethinking the Theory of Money, Credit, and Macroeconomics. Smithin continues the projects of Keynes and Minsky with the aim of providing a general account what how the macroeconomy actually works. The essay evaluates Smithin's alternative monetary model of the economy in the light of several key Post-Keynesian themes.
Journal: Review of Political Economy
Pages: 464-471
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2019.1698193
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1698193
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:464-471
Template-Type: ReDIF-Article 1.0
Author-Name: Phil Armstrong
Author-X-Name-First: Phil
Author-X-Name-Last: Armstrong
Title: Rethinking the Theory of Money, Credit, and Macroeconomics
Journal: Review of Political Economy
Pages: 472-474
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2019.1698194
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1698194
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:472-474
Template-Type: ReDIF-Article 1.0
Author-Name: Kirstin Munro
Author-X-Name-First: Kirstin
Author-X-Name-Last: Munro
Title: Birth Strike: The Hidden Fight over Women’s Work / Full Surrogacy Now: Feminism against the Family
Journal: Review of Political Economy
Pages: 474-478
Issue: 3
Volume: 31
Year: 2019
Month: 7
X-DOI: 10.1080/09538259.2019.1698195
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1698195
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Handle: RePEc:taf:revpoe:v:31:y:2019:i:3:p:474-478
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Herndon
Author-X-Name-First: Thomas
Author-X-Name-Last: Herndon
Title: Liar’s Loans, Mortgage Fraud, and the Great Recession
Abstract:
This paper contributes to research on misrepresentation in private residential mortgage-backed securities by using new data on losses from foreclosure to estimate higher than expected losses associated with income overstatement and adverse selection in no/low documentation loans, using full documentation loans as a counterfactual. Overall, no/low documentation loans account for $350 billion of the $500 billion lost from 2007 to 2012. No/low documentation loans lost an additional $5200 per loan, implying $97 billion of total no/low documentation losses were higher than expected. I also find underwriting exceptions differentially predict loss by documentation type, which provides evidence consistent with originator-led adverse selection.
Journal: Review of Political Economy
Pages: 479-508
Issue: 4
Volume: 31
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1747746
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1747746
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Handle: RePEc:taf:revpoe:v:31:y:2020:i:4:p:479-508
Template-Type: ReDIF-Article 1.0
Author-Name: Rod O’Donnell
Author-X-Name-First: Rod
Author-X-Name-Last: O’Donnell
Title: Some Misunderstood Aspects of the Final Chapter of Keynes’s General Theory
Abstract:
Some seriously misunderstood issues arise in three paragraphs in the last chapter of Keynes’s General Theory concerning the relationship between his theory and orthodox theory. That these passages permit a form of theoretical reconciliation is a view shared by prominent commentators of opposing persuasions. Joan Robinson and John Eatwell strongly criticised Keynes for inconsistency and for opening the door to neoclassical elements that undermine his theorising, while Paul Samuelson made Keynes’s comments the foundation of his textbook neoclassical synthesis. The reconciliation view, however, is based on hasty non-contextual readings and is mistaken. More careful analysis leads to three conclusions: neither internal inconsistency nor neoclassical appeasement exists; Keynes’s paragraphs are aligned with the theoretical positions previously advanced in the General Theory; and what is actually deployed is a complementarity view relating his macro-theory to one particular part of orthodox micro-theory. Rejecting the dominant view, however, does not remove the issue of the absence in Keynes’s work of an adequately exposited micro-theory to accompany his macro-theory.
Journal: Review of Political Economy
Pages: 509-527
Issue: 4
Volume: 31
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1751473
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1751473
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Handle: RePEc:taf:revpoe:v:31:y:2020:i:4:p:509-527
Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Bellofiore
Author-X-Name-First: Riccardo
Author-X-Name-Last: Bellofiore
Title: Augusto Graziani and the Marx-Schumpeter-Keynes ‘Cycle of Money Capital’: A Personal Look at the Early Italian Circuitism from an Insider
Abstract:
The paper goes back to the origins of the theory of the monetary circuit in its Italian incarnation. Focus is on the evolution of Augusto Graziani's thinking between mid-1970s and mid-1980s, considering: (i) how Graziani connected (positively or polemically) with Keynesianism and Post-Keynesianism, both in its Cambridge and US incarnations; (ii) how Graziani interpreted the contributions of Keynes proposing a continuity between the Treatise on Money, the General Theory, and the articles on finance published after the 1936 book; (iii) how beneath the research programme of Italian circuitism (Graziani) we may recognise a peculiar Marxian inspiration, later on pursued for a while by some participants to the Seminar in Monetary Theory that Graziani coordinated in Naples (1981–85). Since the mid-1970s Graziani — who already had a profound knowledge of Neoclassical Theory; and who was deeply aware of the role of institutions — developed more and more his heretical stance into what we may label as a ‘structural Keynesian' approach, inserting Keynes’ views about finance to production and effective demand into a Schumpeterian vision of the capitalist process, and leading to Marxian conclusions about value and distribution. The early forays into circuitism by Graziani were not only critical towards the Neoclassical Synthesis, Monetarism, or New Classical Macroeconomics. They were also grounded in an intense confrontation with other contemporary heterodox currents. The outcome was the construction of an original scheme of thought which amounted to nothing less than a macro-monetary theory of capitalist production.
Journal: Review of Political Economy
Pages: 528-558
Issue: 4
Volume: 31
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1748306
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1748306
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Handle: RePEc:taf:revpoe:v:31:y:2020:i:4:p:528-558
Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Deleidi
Author-X-Name-First: Matteo
Author-X-Name-Last: Deleidi
Author-Name: Giuseppe Fontana
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Fontana
Title: Money Creation in the Eurozone: An Empirical Assessment of the Endogenous and the Exogenous Money Theories
Abstract:
The aim of this paper is to strengthen our understanding of the money creation process in the Eurozone for 1999–2016 period, through an empirical assessment of two main monetary theories, namely the (Post Keynesian) endogenous money theory and the (Monetarist) exogenous money theory. By applying a VAR and VECM methodology, we analyse the causal relationship among monetary reserves (or monetary base), bank deposits and bank loans. Our empirical analysis supports several propositions of the Post Keynesian endogenous money theory since (i) bank loans determine bank deposits, and (ii) bank deposits in turn determine monetary reserves.
Journal: Review of Political Economy
Pages: 559-581
Issue: 4
Volume: 31
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1737390
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1737390
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Handle: RePEc:taf:revpoe:v:31:y:2020:i:4:p:559-581
Template-Type: ReDIF-Article 1.0
Author-Name: Cristiano Boaventura Duarte
Author-X-Name-First: Cristiano Boaventura
Author-X-Name-Last: Duarte
Title: Alternative Monetary Targets, Instruments and Future Monetary Policy Frameworks
Abstract:
This article expands on the debate of whether merely controlling inflation can be considered a good outcome in terms of monetary policy, discussing proposals for adopting alternative monetary targets (e.g., price level, nominal GDP), alternative instruments (e.g., monetary finance, central bank digital currencies), for enlarging central banks' mandates (e.g., incorporating employment, wages, inequality, environmental objectives) and for the design of future monetary policy frameworks.We argue that in the coming years, central banks should not simply maintain their pre-2008 standards by de-implementing unconventional monetary policies. Instead, they must take advantage of their past and recent experiences in order to improve, under an evolutionary perspective, future monetary policy and financial stability frameworks. Based on this, measures implemented since the 2008 crisis would have three possible treatments in new frameworks: i) be discarded, due to their predominantly adverse effects; ii) not be regularly implemented, but be used as backstop mechanisms if needed; iii) be incorporated as regular measures of monetary policy/financial stability frameworks. Accordingly, monetary and financial stability authorities will increasingly need to evolve and engage in a continuously adaptive and innovative process in order to face challenges posed by financial markets that are becoming more dynamic, innovative, complex, interconnected and globalised.
Journal: Review of Political Economy
Pages: 582-601
Issue: 4
Volume: 31
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1730606
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1730606
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Handle: RePEc:taf:revpoe:v:31:y:2020:i:4:p:582-601
Template-Type: ReDIF-Article 1.0
Author-Name: Gilbert L. Skillman
Author-X-Name-First: Gilbert L.
Author-X-Name-Last: Skillman
Title: Marx, Sraffa, and Surplus: Observations Prompted by Garegnani (2018)
Abstract:
In a posthumously published article, Pierangelo Garegnani (2018. ‘On the Labour Theory of Value in Marx and in the Marxist Tradition.’) depicts Marx’s project in Capital as that of ‘developing systematically the theory of Ricardo and [the] implications of social conflict’ implied by Ricardo’s ‘surplus approach to value and distribution’. This paper argues to the contrary that Marx’s theory of surplus value and exploitation differs from (neo-)Ricardian surplus theory in fundamental ways, and modifies Garegnani’s simple Sraffian model to illustrate the distinctive implications of Marx’s theory.
Journal: Review of Political Economy
Pages: 602-620
Issue: 4
Volume: 31
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1724694
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1724694
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Handle: RePEc:taf:revpoe:v:31:y:2020:i:4:p:602-620
Template-Type: ReDIF-Article 1.0
Author-Name: Edwin Dickens
Author-X-Name-First: Edwin
Author-X-Name-Last: Dickens
Title: A Century of Wealth in America
Journal: Review of Political Economy
Pages: 621-625
Issue: 4
Volume: 31
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2019.1698196
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1698196
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Handle: RePEc:taf:revpoe:v:31:y:2020:i:4:p:621-625
Template-Type: ReDIF-Article 1.0
Author-Name: Ad van Riet
Author-X-Name-First: Ad
Author-X-Name-Last: van Riet
Title: Do Central Banks Serve the People?
Journal: Review of Political Economy
Pages: 625-628
Issue: 4
Volume: 31
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2019.1698199
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1698199
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Handle: RePEc:taf:revpoe:v:31:y:2020:i:4:p:625-628
Template-Type: ReDIF-Article 1.0
Author-Name: Emiliano Brancaccio
Author-X-Name-First: Emiliano
Author-X-Name-Last: Brancaccio
Author-Name: Fabiana De Cristofaro
Author-X-Name-First: Fabiana
Author-X-Name-Last: De Cristofaro
Author-Name: Raffaele Giammetti
Author-X-Name-First: Raffaele
Author-X-Name-Last: Giammetti
Title: A Meta-analysis on Labour Market Deregulations and Employment Performance: No Consensus Around the IMF-OECD Consensus
Abstract:
The so-called ‘IMF-OECD consensus’ suggests that labour market deregulations increase employment and reduce unemployment. This paper presents a meta-analysis of research on this topic based on MAER-NET guidelines. We examine the relation between Employment Protection Legislation indexes on one hand, and employment and unemployment on the other. Among 53 academic papers published between 1990 and 2019, only 28 per cent support the consensus view, while the remaining 72 per cent report results that are ambiguous (21 per cent) or contrary to the consensus (51 per cent). The decline in support for the consensus view is particularly evident in the last decade. Our results are independent of the citations of papers examined, the impact factor of journals and the techniques used. A FAT-PET meta-regression model confirms these outcomes.
Journal: Review of Political Economy
Pages: 1-21
Issue: 1
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1759245
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1759245
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:1:p:1-21
Template-Type: ReDIF-Article 1.0
Author-Name: Matteo Deleidi
Author-X-Name-First: Matteo
Author-X-Name-Last: Deleidi
Author-Name: Enrico Sergio Levrero
Author-X-Name-First: Enrico Sergio
Author-X-Name-Last: Levrero
Title: The Price Puzzle and the Hysteresis Hypothesis: SVEC Analysis for the US Economy
Abstract:
This paper shows that monetary policy tightening may lead to an increase in the level of prices. To demonstrate this, we apply SVEC modelling to US monthly data for the 1959–2018 period and endorse the ‘hysteresis hypothesis’ which assumes that monetary policy produces long-lasting effects on unemployment and prices. Contrary to what has been argued by Hanson (2004. ‘The “Price Puzzle” Reconsidered.’ Journal of Monetary Economics 51 (7): 1385–1413) and Castelnuovo and Surico (2010. ‘Monetary Policy, Inflation Expectations and the Price Puzzle.’ The Economic Journal 120 (549): 1262–1283), the phenomenon known as the ‘price puzzle’ or ‘Gibson paradox’ is confirmed both in the pre-1979 and post-1982 periods, showing that the paradox is independent of the active/passive behaviour of the Central Bank. Our findings detect a cost channel of monetary policy demonstrating that a change in the interest rates by monetary authorities may have an effect on income distribution.
Journal: Review of Political Economy
Pages: 22-29
Issue: 1
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1759244
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1759244
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:1:p:22-29
Template-Type: ReDIF-Article 1.0
Author-Name: Giulio Guarini
Author-X-Name-First: Giulio
Author-X-Name-Last: Guarini
Title: The Macroeconomic Impact of the Porter Hypothesis: Sustainability and Environmental Policies in a Post-Keynesian Model
Abstract:
The aim of the paper is to propose a post-Keynesian analysis of the Porter Hypothesis (PH) according to which regulation policies can bring about new economic opportunities by generating ‘green’ environmental innovations. Firstly, I illustrate the main features of the PH. Secondly, a Post-Keynesian growth model is developed by focusing on the macroeconomic impact of the PH. Finally, two equations of the model are estimated, an investment function and a green productivity function, by applying the GMM for panel data to European countries, over the period 1999–2012. The theoretical findings concern the potential rebound effect of regulation if its multiplier effect is greater than its innovation effect and the need for a policy mix to achieve environmental and socio-economic goals together. The empirical section verifies both the weak version of the PH, according to which environmental policies can stimulate green productivity, and (indirectly) the strong version of the PH by estimating the positive impact of green productivity dynamics on private investment.
Journal: Review of Political Economy
Pages: 30-48
Issue: 1
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1748308
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1748308
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:1:p:30-48
Template-Type: ReDIF-Article 1.0
Author-Name: Fabrizio Antenucci
Author-X-Name-First: Fabrizio
Author-X-Name-Last: Antenucci
Author-Name: Matteo Deleidi
Author-X-Name-First: Matteo
Author-X-Name-Last: Deleidi
Author-Name: Walter Paternesi Meloni
Author-X-Name-First: Walter
Author-X-Name-Last: Paternesi Meloni
Title: Kaldor 3.0: An Empirical Investigation of the Verdoorn-augmented Technical Progress Function
Abstract:
Consistent with neoclassical theory, the recent slowdown in labour productivity is generally regarded as one of the main causes of the current phase of economic stagnation. By contrast, post-Keynesian economics looks at productivity growth as positively affected by the rate of growth of output in the long run as well. By focusing on this alternative perspective, in our exploration we deal with an extended version of the Kaldorian technical progress function in which the trend growth rate of productivity is endogenously shaped by the dynamics of both output and capital−labour ratio. We empirically verify such a relationship for the total economy and the manufacturing sector through a structural vector autoregressive (SVAR) model for G7 countries (1970–2017). Our findings support the validity of a technical progress function, which admits increasing returns to scale, thus indicating that both the rate of growth of output and the process of capital intensification exert positive effects on productivity growth, even beyond the business cycle.
Journal: Review of Political Economy
Pages: 49-76
Issue: 1
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1744936
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1744936
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:1:p:49-76
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgio Colacchio
Author-X-Name-First: Giorgio
Author-X-Name-Last: Colacchio
Author-Name: Guglielmo Forges Davanzati
Author-X-Name-First: Guglielmo
Author-X-Name-Last: Forges Davanzati
Title: Modern Money Theory: A Critical Assessment and a Proposal for the State As Innovator of First Resort
Abstract:
Modern Money Theory (MMT) describes the functioning of a pure credit economy, assuming that the state can finance public spending via monetisation on the part of the central bank: in this light MMT proponents maintain that taxation and bond issues are irrelevant to public deficit financing. Another feature peculiar to MMT is the belief that expansionary fiscal policies can guarantee full employment in a condition where the state acts as an employer of last resort (ELR). The aim of this paper is threefold: (a) to understand and rationalise the logical framework of MMT (Section 2.1); (b) to address some of the controversial issues of this approach, with particular regard to the ELR programme proposal and to the actual role played by taxation and bonds in public deficit financing (Section 2.2); (c) to propose an extension of the ELR programme, arguing that it can be used for the application of innovations by the state (Section Three).
Journal: Review of Political Economy
Pages: 77-98
Issue: 1
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1741893
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1741893
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:1:p:77-98
Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Di Bucchianico
Author-X-Name-First: Stefano
Author-X-Name-Last: Di Bucchianico
Title: A Note on Krugman’s Liquidity Trap and Monetary Policy at the Zero Lower Bound
Abstract:
Krugman's ‘liquidity trap’ model constituted a ground-breaking contribution by attributing the long-lasting Japanese stagnation to a negative natural interest rate. Our critique to such a proposal will focus on three aspects. First, we will question the logical structure of the model, providing an alternative interpretation of its closure and arguing that aggregate demand has no crucial role in it. Second, we will argue that a negative natural interest rate can emerge only after a series of overtly restrictive assumptions in a model that does not treat capital and avoids long-run equilibrium analysis. Finally, we will discuss the mainstream literature which followed up until the recent rediscovery of the Secular Stagnation Theory. Within that line of literature, the key features of the ‘liquidity trap’ model continue to occupy a prominent role, thereby letting the critical issues that have been singled out resurface. Our conclusion is that the ‘liquidity trap’ explanation did not provide a satisfying rationale for Japan’s stagnation and cannot describe later economic predicaments either. A comparison with Post-Keynesian models shows their ability to offer insightful policy prescriptions without relying on those shaky theoretical foundations.
Journal: Review of Political Economy
Pages: 99-120
Issue: 1
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1731119
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1731119
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:1:p:99-120
Template-Type: ReDIF-Article 1.0
Author-Name: José Luis Oreiro
Author-X-Name-First: José Luis
Author-X-Name-Last: Oreiro
Author-Name: Luiz Fernando de Paula
Author-X-Name-First: Luiz Fernando
Author-X-Name-Last: de Paula
Author-Name: João Pedro Heringer Machado
Author-X-Name-First: João Pedro
Author-X-Name-Last: Heringer Machado
Title: Liquidity Preference, Capital Accumulation and Investment Financing: Fernando Cardim de Carvalho’s Contributions to the Post-Keynesian Paradigm
Abstract:
This paper assesses the main theoretical contributions by Fernando Cardim de Carvalho to the post-Keynesian Economics Paradigm: his elucidation of the fundamental principles that define the concept of a monetary production economy; his analysis of decision-making under non-probabilistic uncertainty; his development of a portfolio choice theory in which the decision to invest is regarded as one of possible wealth accumulation strategies; his liquidity preference theory, including its application to banks’ portfolio allocations under uncertainty; and finally his analysis of the finance-funding circuit and its implications for the functioning of monetary economies.
Journal: Review of Political Economy
Pages: 121-139
Issue: 1
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1766795
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1766795
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:1:p:121-139
Template-Type: ReDIF-Article 1.0
Author-Name: Guillaume Vallet
Author-X-Name-First: Guillaume
Author-X-Name-Last: Vallet
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Title: Economics and Sociology: An Introduction
Journal: Review of Political Economy
Pages: 141-148
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2020.1803599
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1803599
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:141-148
Template-Type: ReDIF-Article 1.0
Author-Name: Stephen D. Parsons
Author-X-Name-First: Stephen D.
Author-X-Name-Last: Parsons
Title: Entrepreneurs and Uncertainty: Max Weber and the Sociology of Economic Action
Abstract:
In Economy and Society, Max Weber develops a sociological analysis of economic action, drawing upon ideas developed in the Austrian School of Economics. Despite this Austrian influence, Weber is quite clear his sociological analysis does not constitute an exercise in economic theory. Weber’s account of entrepreneurial action makes it possible to appreciate the distinctness of his sociological analysis of economic action. Weber argues that entrepreneurs make production decisions under conditions of uncertainty, where the goals of action are subject to choice and where consumer wants can be formed through entrepreneurial action. In developing his account of entrepreneurial decision-making, Weber offers an account of economic action that is distinct from the account of economic action dominant in mainstream economics and Austrian economic theory. For Weber, entrepreneurial goals are imagined, and reason does not determine actions but assesses likely consequences of different possibilities for action. A monetary economy allows this assessment to proceed in a more rational manner. This argument is significant for his criticisms of centrally planned economies.
Journal: Review of Political Economy
Pages: 149-162
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2019.1689634
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1689634
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:149-162
Template-Type: ReDIF-Article 1.0
Author-Name: Erwin Dekker
Author-X-Name-First: Erwin
Author-X-Name-Last: Dekker
Author-Name: Blaž Remic
Author-X-Name-First: Blaž
Author-X-Name-Last: Remic
Author-Name: Carolina Dalla Chiesa
Author-X-Name-First: Carolina
Author-X-Name-Last: Dalla Chiesa
Title: Incentives Matter, But What Do They Mean? Understanding the Meaning of Market Coordination
Abstract:
This article argues that the discussion of incentives in economics neglects a crucial question: why are some incentives felt as powerful reasons to alter actions, while other incentives have little, or even counterproductive, effect? We argue that an answer to this question can be found in recent empirical work in economic sociology, institutional economics and Austrian economics. This work studies the meaning of incentives in particular social settings and shows that incentives become meaningful in relation to those settings. We demonstrate that it illuminates why certain incentives are perceived as powerful reasons for action, while others are mostly ignored. We also explain why incentives are typically tied to certain social roles that can be identified through ideal-type analysis, and why situations of high uncertainty are of particular use for studying the activity of actors. In order to understand entrepreneurial action, financial markets, and why monetary rewards and market exchange are sometimes perceived as the wrong type of incentive, research should focus on how an uncertain future is understood by actors. We identify four building blocks in the work of Alfred Schutz, and suggest they yield a constructive research program at the intersection between economics and sociology.
Journal: Review of Political Economy
Pages: 163-179
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2019.1628341
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1628341
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:163-179
Template-Type: ReDIF-Article 1.0
Author-Name: Samuel Klebaner
Author-X-Name-First: Samuel
Author-X-Name-Last: Klebaner
Author-Name: Matthieu Montalban
Author-X-Name-First: Matthieu
Author-X-Name-Last: Montalban
Title: Cross-Fertilizations Between Institutional Economics and Economic Sociology: The Case of Régulation Theory and the Sociology of Fields
Abstract:
This article deals with actual collaborations and cross-fertilization between Régulation Theory — a French institutional economics school — and the Bourdieusian sociology of fields, together with that of Neil Fligstein. First, we show that Régulation Theory has slowly incorporated several concepts and methods of the sociology of fields, due to their similar research agenda. Indeed, using a genetic structuralist method, both approaches have sought to analyze the reproduction and the endogenous changes of institutions, and this by focusing on the one hand on capitalism and on the other upon social fields. Second, we show that the sociology of fields provides relevant frameworks for studying the competitive and institutional dynamics of sectors. Indeed, it can even provide powerful insights for understanding the transformations of accumulation regimes.
Journal: Review of Political Economy
Pages: 180-198
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2019.1674484
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1674484
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:180-198
Template-Type: ReDIF-Article 1.0
Author-Name: Angeliki Papadopoulou
Author-X-Name-First: Angeliki
Author-X-Name-Last: Papadopoulou
Author-Name: Giorgos Gouzoulis
Author-X-Name-First: Giorgos
Author-X-Name-Last: Gouzoulis
Title: Social Structures of Accumulation in Greece, 1980–2014
Abstract:
This paper examines the domestic and transnational social structures of accumulation (SSA) of Greece’s development process over the period 1980–2014. Our historical analysis suggests that the Greek growth model was based on three social accords: (1) the Terms of International Trade and Finance accord, i.e., the liberalisation of international trade, capital mobility and finance within the EU; (2) the State-Capital accord, which included the liberalised labour and industrial relations, and the tolerance to elite tax evasion; and (3) the State-Citizen accord, which involved the relative expansion of the welfare state. The latter aspect suggests that the Greek growth model of the last three decades has been hybrid, rather than typical neoliberal. Our econometric findings provide robust evidence that trade openness, the liberalisation of international financial institutions, and the wage share have been increasing the rate of net capital accumulation in Greece since 1980, while public social spending has been decreasing it. Therefore, the Greek crisis was initially triggered by the breakdown of international trade and finance flows within the EU after the 2008 financial crisis. The subsequent collapse of the State-Citizen accord, due to the EU-imposed austerity programmes further induced the demise of the post-1980 Greek SSA.
Journal: Review of Political Economy
Pages: 199-215
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2020.1769281
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1769281
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:199-215
Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Pariboni
Author-X-Name-First: Riccardo
Author-X-Name-Last: Pariboni
Author-Name: Walter Paternesi Meloni
Author-X-Name-First: Walter
Author-X-Name-Last: Paternesi Meloni
Author-Name: Pasquale Tridico
Author-X-Name-First: Pasquale
Author-X-Name-Last: Tridico
Title: When Melius Abundare Is No Longer True: Excessive Financialization and Inequality as Drivers of Stagnation
Abstract:
The apparently never-ending phase of economic slowdown that advanced economies have been experiencing in recent decades has recently contributed to the resurrection of the hoary old argument of ‘secular stagnation’. In this paper, situated intellectually within the strand of research documenting the negative impact on growth of inequality and financialization, we elaborate on the idea that such a prolonged period of stagnation is associated with a new paradigm of socio-economic policy, known as ‘finance-dominated capitalism’.In this way, we distance ourselves from the mainstream ‘secular stagnation’ narrative, adopting instead a post-Keynesian perspective that allows us to discuss the links between financialization and inequality, on one hand, and economic performance, on the other. Then, we submit our arguments to empirical scrutiny by undertaking an econometric analysis of 21 OECD countries between 1990 and 2016. The evidence indicates that excessive levels of financialization, along with high inequality and weak labor market institutions, have a negative impact on real growth.Based on our findings, we propose possible demand-side policies, to be implemented through expansionary fiscal measures, which could help sustain GDP growth and employment in the current context of stagnation, mitigating income inequality and sustaining an inclusive recovery at the same time.
Journal: Review of Political Economy
Pages: 216-242
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2020.1769282
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1769282
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:216-242
Template-Type: ReDIF-Article 1.0
Author-Name: Tilman Hartley
Author-X-Name-First: Tilman
Author-X-Name-Last: Hartley
Author-Name: Jeroen van den Bergh
Author-X-Name-First: Jeroen
Author-X-Name-Last: van den Bergh
Author-Name: Giorgos Kallis
Author-X-Name-First: Giorgos
Author-X-Name-Last: Kallis
Title: Policies for Equality Under Low or No Growth: A Model Inspired by Piketty
Abstract:
GDP growth is declining in industrial economies, and there is increasing evidence that growth may be environmentally unsustainable. If growth falls below returns to wealth then inequalities increase, as Thomas Piketty recently showed. This poses a challenge to managing slow and/or negative growth. Here, we examine policies that have been proposed to solve the problem of increasing income inequality in slow- or non-growing economies, including redistribution, taxation, and employment reforms. We construct a simple model, expanding Piketty’s recent work, to evaluate the parameter ranges within which these different policies can be effective. Our analysis leads to two main findings. First, except in the case of complete wealth equality, any strategy to prevent increasing income inequality must reduce returns to wealth below the rate of growth. Second, several strategies may prevent an increase in income inequality during periods of low growth and may slow rising inequality, but not prevent it, in non-growing economies.
Journal: Review of Political Economy
Pages: 243-258
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2020.1769293
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1769293
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:243-258
Template-Type: ReDIF-Article 1.0
Author-Name: Niroj Bhattarai
Author-X-Name-First: Niroj
Author-X-Name-Last: Bhattarai
Author-Name: Alexandra Bernasek
Author-X-Name-First: Alexandra
Author-X-Name-Last: Bernasek
Author-Name: Anita Alves Pena
Author-X-Name-First: Anita Alves
Author-X-Name-Last: Pena
Title: Factors Affecting School Attendance and Implications for Student Achievement by Gender in Nepal
Abstract:
Gender–sensitive secondary school attendance and achievement data in developing countries is limited. We conduct an original survey of 8th, 9th and 10th grade students in urban and rural Nepal. We examine factors affecting attendance rates and document associations across genders. For both genders, we find higher attendance in urban compared with rural areas, with home ownership (a proxy for wealth), and with fines for absence from school; conversely, we find lower attendance with more students per school computer. For girls, we find lower attendance with age (at an increasing rate) and higher attendance for those with younger siblings. For boys, important factors include higher attendance with number of cars in the family (related to wealth and transportation), with time spent studying and with having an educated mother; boys have lower attendance with more siblings and the number of motorcycles. We link attendance to test scores and find evidence supporting a positive relationship, confirming linkages from attendance to human capital and capabilities. Finally, we provide qualitative evidence from a complementary focus group on cultural attitudes and practices. Our results point to specific gender–neutral and gender sensitive factors for making progress towards providing all children quality education in Nepal.
Journal: Review of Political Economy
Pages: 259-282
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2020.1769296
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1769296
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:259-282
Template-Type: ReDIF-Article 1.0
Author-Name: Santiago José Gahn
Author-X-Name-First: Santiago
Author-X-Name-Last: José Gahn
Title: Is There a Declining Trend in Capacity Utilization in the US Economy? A Technical Note
Abstract:
Recent contributions have mentioned the possibility of a declining trend in capacity utilization in the US since the 1970s. However, no consensus has emerged on the empirical evidence. The aim of this paper is to identify if such a declining trend in capacity utilization exists in the US economy: New empirical evidence is shown confirming that this is the case, at least since 1989.
Journal: Review of Political Economy
Pages: 283-296
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2020.1769906
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1769906
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:283-296
Template-Type: ReDIF-Article 1.0
Author-Name: William Jefferies
Author-X-Name-First: William
Author-X-Name-Last: Jefferies
Title: Stolen: How to Save the World from Financialisation
Journal: Review of Political Economy
Pages: 297-301
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2019.1698197
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1698197
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:297-301
Template-Type: ReDIF-Article 1.0
Author-Name: Guglielmo Forges Davanzati
Author-X-Name-First: Guglielmo
Author-X-Name-Last: Forges Davanzati
Title: Roy Harrod
Journal: Review of Political Economy
Pages: 302-304
Issue: 2
Volume: 32
Year: 2020
Month: 4
X-DOI: 10.1080/09538259.2019.1698198
File-URL: http://hdl.handle.net/10.1080/09538259.2019.1698198
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:2:p:302-304
Template-Type: ReDIF-Article 1.0
Author-Name: Paolo Trabucchi
Author-X-Name-First: Paolo
Author-X-Name-Last: Trabucchi
Title: Capital as a Single Magnitude and the Orthodox Theory of Distribution in Some Writings of the Early 1930s
Abstract:
Some writings of the early 1930s by Dennis Robertson and John Hicks present, with a clarity not easily found elsewhere, the reasons why marginalist economists, who until recent decades normally treated capital as a single magnitude, were in fact compelled to do so. This paper focuses on a first reason that emerges from these writings: namely the fact that only this treatment of capital can lend plausibility to the notion of substitutability between factors of production on which the orthodox theory of distribution is built.
Journal: Review of Political Economy
Pages: 169-188
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561550
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561550
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:169-188
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Dallery
Author-X-Name-First: Thomas
Author-X-Name-Last: Dallery
Author-Name: Till van Treeck
Author-X-Name-First: Till
Author-X-Name-Last: van Treeck
Title: Conflicting Claims and Equilibrium Adjustment Processes in a Stock-flow Consistent Macroeconomic Model
Abstract:
We revisit the old but still vibrant Post-Keynesian debate over ‘fully-adjusted positions’, defined by the long-run equality of actual and standard utilisation rates. The central proposition of this paper is that in a world where different groups inside and outside firms have different objectives, the equality of actual and standard utilisation should not be treated as the only possible long-run equilibrium condition. The argument is illustrated in a model of target return pricing with conflict inflation, building on the work of Marc Lavoie. A ‘common language’ for the conflicting claims by shareholders, managers and workers is developed in terms of target profit rates, and it is shown that these contradictory claims can be partly reconciled through variations in the utilisation rate. The analysis unifies history and equilibrium in the sense that the nature of final equilibrium position and the adjustment to it depend on the objectives of the dominant social groups. We distinguish a ‘Fordist regime’ and a ‘financialisation regime’ and produce simulation results within a simple stock-flow consistent model that are broadly consistent with the stylised facts of these distinct historical phases of capitalism.
Journal: Review of Political Economy
Pages: 189-211
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561557
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561557
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:189-211
Template-Type: ReDIF-Article 1.0
Author-Name: Henk K. van Tuinen
Author-X-Name-First: Henk K.
Author-X-Name-Last: van Tuinen
Title: The Ignored Manipulation of the Market: Commercial Advertising and Consumerism Require New Economic Theories and Policies
Abstract:
One of mainstream economic theory's blind spots is its neglect of the manipulation of preferences, for example through advertising. Another flaw concerns the market economy's ineffectiveness at increasing welfare in affluent societies. Indeed, a principle reason for this ineffectiveness is the loss in consumer sovereignty caused by the dominance of commercial preference manipulation. This article outlines a theory of preference manipulation, and describes a policy framework to restore consumer sovereignty by creating countervailing power against commercial manipulation. The suggested policy will improve the welfare outcomes of affluent economies and reconfigure the balance between consumerist and non-consumerist attitudes in modern democracies.
Journal: Review of Political Economy
Pages: 213-231
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561558
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561558
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:213-231
Template-Type: ReDIF-Article 1.0
Author-Name: John Meadowcroft
Author-X-Name-First: John
Author-X-Name-Last: Meadowcroft
Title: Economic and Political Solutions to Social Problems: The Case of Second-hand Smoke in Enclosed Public Places
Abstract:
This article utilises a case study of the problem of second-hand smoke in enclosed public places to examine economic and political solutions to social problems. The responses of economic actors to this problem are examined via review of a number of pre-existing case studies of private arrangements in bars and restaurants prior to the introduction of smoking bans. The responses of political actors are examined via a study of the legislative process that led to the ban on smoking in enclosed public places introduced in England in 2007. This empirical evidence supports the view that economic decision-making leads to a plurality of different accommodations of different preferences, suggestive of inter-subjective learning, whereas political decision-making leads to exclusive, all-or-nothing solutions indicative of an adversarial approach to decision-making and the imposition of one group's preferences on the whole population.
Journal: Review of Political Economy
Pages: 233-248
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561559
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561559
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:233-248
Template-Type: ReDIF-Article 1.0
Author-Name: Roberta Patalano
Author-X-Name-First: Roberta
Author-X-Name-Last: Patalano
Title: Resistance to Change: Historical Excursus and Contemporary Interpretations
Abstract:
The concept of resistance to change made its appearance in the literature more than six decades ago. The paper analyses how the concept was introduced in the 1950s and how it was integrated in economic analysis by Kenneth E. Boulding. Secondly, we discuss the recent literature on the topic in order to identify the multifaceted meanings that the concept has taken on in three main areas of research: problem solving, organizational studies and institutional economics. Finally, we turn to methodological issues; the historical nature of change will be considered in order to clarify the relationship between resistance to change and path dependence.
Journal: Review of Political Economy
Pages: 249-266
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561561
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561561
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:249-266
Template-Type: ReDIF-Article 1.0
Author-Name: Ernesto Screpanti
Author-X-Name-First: Ernesto
Author-X-Name-Last: Screpanti
Title: Freedom of Choice in the Production Sphere: The Capitalist and the Self-managed Firm
Abstract:
A formula for measuring freedom of choice in the production sphere is proposed. Then a capitalist firm and a worker self-managed firm are compared in terms of freedom distribution. It is shown that the workers have little freedom, if any at all, in a capitalist firm, whilst the capitalist enjoys a great deal of freedom. In a self-managed firm, on the other hand, the amount of freedom enjoyed by the workers is positive and often even greater than that of the capitalist. The analysis is further developed by the introduction of asymmetric information. It is argued that, based on plausible hypotheses of monitoring costs, the difference between the amount of freedom enjoyed by self-managed workers and that enjoyed by the capitalist increases.
Journal: Review of Political Economy
Pages: 267-279
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561562
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561562
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:267-279
Template-Type: ReDIF-Article 1.0
Author-Name: Fiona Tregenna
Author-X-Name-First: Fiona
Author-X-Name-Last: Tregenna
Title: What Does the ‘Services Sector’ Mean in Marxian Terms?
Abstract:
The services sector has grown as a share of GDP and employment in most countries in recent years, and there has been increasing interest in understanding this sector and in its growth potential. This article analyses the meaning and nature of the ‘services sector’ from a Marxian perspective. Marx did not analyse ‘services’ as such (although he did discuss certain types of activities that are currently classified as services), and ‘sectors’ are not the units of his economic analysis. From a Marxian approach, an activity needs to be analysed in terms of its location in the circuit of capital and its relationship with the production of surplus-value. The ‘services sector’ includes activities that are highly heterogeneous in these terms, including activities in which surplus-value is directly produced, activities that facilitate the production of surplus-value elsewhere (or increase the rate at which it is produced), and activities that stand outside of the circuit of capital. Marxian tools of analysis yield particular insights into the nature of various types of service activities, and these insights are helpful in understanding sectoral structure and the potential implications of changes therein.
Journal: Review of Political Economy
Pages: 281-298
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561563
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561563
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:281-298
Template-Type: ReDIF-Article 1.0
Author-Name: Christian Gehrke
Author-X-Name-First: Christian
Author-X-Name-Last: Gehrke
Title: The Joint Production Method in the Treatment of Fixed Capital: A Comment on Moseley
Abstract:
This paper re-examines P. Sraffa's ‘References to the literature’ in Appendix D of Production of Commodities by Means of Commodities (Cambridge: Cambridge University Press, 1960) on precursors of the joint production method in the treatment of fixed capital. It is shown that Moseley's view, according to which Sraffa's attribution of the joint production method to Torrens, Ricardo, Malthus and Marx is ‘misleading at best and totally wrong at worst’ (F. Moseley, 2009, ‘Sraffa's interpretation of Marx's treatment of fixed capital’, Review of Political Economy, 21, p. 99), is difficult to sustain. Moseley's argument is based on the absurd premise that Sraffa's attribution of the joint production method to the four classical authors mentioned would only be justified if it could be shown that they had used the joint production method in the same way and for the same purpose as Sraffa did.
Journal: Review of Political Economy
Pages: 299-306
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561565
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561565
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:299-306
Template-Type: ReDIF-Article 1.0
Author-Name: Fred Moseley
Author-X-Name-First: Fred
Author-X-Name-Last: Moseley
Title: Reply to Gehrke
Abstract:
This paper responds to Christian Gehrke's comment, and argues that the main conclusion of my earlier paper is sustained—that, contrary to Sraffa, Marx did not ‘adopt’ in any sense of the word the joint product method of treating fixed capital. It agrees with Gehrke that Torrens adopted a form of the joint product method, and that Malthus seems to have followed Torrens in this regard. However, it argues that Ricardo did not adopt the joint product method, not even in the one instance cited by Sraffa. Finally, it argues briefly that Marx's ‘transformation of value’ method of treating fixed capital and depreciation is superior to Sraffa's joint product method.
Journal: Review of Political Economy
Pages: 307-315
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561566
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561566
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:307-315
Template-Type: ReDIF-Article 1.0
Author-Name: Paul Lewis
Author-X-Name-First: Paul
Author-X-Name-Last: Lewis
Title: The Road to Serfdom: Text and Documents. The Definitive Edition (The Collected Works of F. A. Hayek, Volume II)
Journal: Review of Political Economy
Pages: 317-322
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561567
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561567
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:317-322
Template-Type: ReDIF-Article 1.0
Author-Name: Collin G. Matton
Author-X-Name-First: Collin G.
Author-X-Name-Last: Matton
Title: How We Decide
Journal: Review of Political Economy
Pages: 322-324
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561568
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561568
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:322-324
Template-Type: ReDIF-Article 1.0
Author-Name: Gene Callahan
Author-X-Name-First: Gene
Author-X-Name-Last: Callahan
Title: Rationality in Economics: Constructivist and Ecological Forms
Journal: Review of Political Economy
Pages: 325-327
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561569
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561569
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:325-327
Template-Type: ReDIF-Article 1.0
Author-Name: Robert E. Prasch
Author-X-Name-First: Robert E.
Author-X-Name-Last: Prasch
Title: Meltdown Iceland: Lessons on the World Financial Crisis from a Small Bankrupt Island
Journal: Review of Political Economy
Pages: 327-330
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561570
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561570
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:327-330
Template-Type: ReDIF-Article 1.0
Author-Name: Robert E. Prasch
Author-X-Name-First: Robert E.
Author-X-Name-Last: Prasch
Title: The Big Short: Inside the Doomsday Machine
Journal: Review of Political Economy
Pages: 330-332
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561571
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561571
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:330-332
Template-Type: ReDIF-Article 1.0
Author-Name: Matías Vernengo
Author-X-Name-First: Matías
Author-X-Name-Last: Vernengo
Title: The Myth of the Rational Market: A History of Risk, Reward, and Delusion on Wall Street
Journal: Review of Political Economy
Pages: 332-334
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561572
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561572
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:332-334
Template-Type: ReDIF-Article 1.0
Author-Name: Cameron M. Weber
Author-X-Name-First: Cameron M.
Author-X-Name-Last: Weber
Title: Castles, Battles, and Bombs: How Economics Explains Military History
Journal: Review of Political Economy
Pages: 334-336
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.561573
File-URL: http://hdl.handle.net/10.1080/09538259.2011.561573
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:334-336
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Erratum
Journal: Review of Political Economy
Pages: 337-337
Issue: 2
Volume: 23
Year: 2011
Month: 4
X-DOI: 10.1080/09538259.2011.579022
File-URL: http://hdl.handle.net/10.1080/09538259.2011.579022
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Handle: RePEc:taf:revpoe:v:23:y:2011:i:2:p:337-337
Template-Type: ReDIF-Article 1.0
Author-Name: Ingrid Harvold Kvangraven
Author-X-Name-First: Ingrid Harvold
Author-X-Name-Last: Kvangraven
Title: Nobel Rebels in Disguise — Assessing the Rise and Rule of the Randomistas
Abstract:
Abhijit Banerjee, Esther Duflo and Michael Kremer were awarded the 2019 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for their pioneering of randomized control trials (RCTs) to find reliable answers about the best ways to fight global poverty. This article unpacks the laureates’ theoretical and methodological approach to development economics in order to evaluate to what extent their approach signifies a break from broader trends in the field. In particular, it investigates the role RCTs have played in both generating knowledge about development interventions and in shaping development policy debates more broadly. Finally, the article argues that despite their rebellious and radical façade, the randomista enterprise has led to a more exclusive development economics, while at the same time failing to improve our ability to fight poverty.
Journal: Review of Political Economy
Pages: 305-341
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1810886
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1810886
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:305-341
Template-Type: ReDIF-Article 1.0
Author-Name: Steve Keen
Author-X-Name-First: Steve
Author-X-Name-Last: Keen
Title: Emergent Macroeconomics: Deriving Minsky’s Financial Instability Hypothesis Directly from Macroeconomic Definitions
Abstract:
Though Minsky developed a compelling verbal model of the ‘Financial Instability Hypothesis' (FIH), he abandoned his early attempts to build a mathematical model. I show that the essential characteristics of Minsky's hypothesis are emergent properties of a complex systems macroeconomic model which is derived directly from macroeconomic definitions, augmented by the simplest possible assumptions for relations between system states, and the simplest possible behavioural postulates. I also show that credit is an essential component of aggregate demand and aggregate income, given that bank lending creates money. Minsky's Financial Instability Hypothesis is thus derived from sound macrofoundations. This stylized complex-systems model reproduces both the core predictions of Minsky's verbal hypothesis, and empirical properties of the real world which have defied Neoclassical understanding, which were not predictions of Minsky's verbal model: the occurrence of a ‘Great Moderation' — a period of diminishing cycles in employment, inflation, and economic growth — prior to a ‘Minsky Moment' crisis; and a tendency for inequality to rise over time. The simulations in this paper use the Open Source system dynamics programme Minsky, which was named in Minsky’s honour.
Journal: Review of Political Economy
Pages: 342-370
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1810887
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1810887
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:342-370
Template-Type: ReDIF-Article 1.0
Author-Name: Adrien Faudot
Author-X-Name-First: Adrien
Author-X-Name-Last: Faudot
Title: The European Payments Union (1950–58): the Post-War Episode of Keynes’ Clearing Union
Abstract:
This article deals with the European Payments Union (EPU), which has garnered little academic interest to this day. The EPU operated from 1950 to 1958. It involved 18 countries and was hailed as a successful experience of European integration. Owing to the international clearing procedures that characterized the institution, the EPU is usually considered to be inspired by the Keynes plan, which was the ambitious reform that the British representative unsuccessfully upheld at Bretton Woods. This article seeks to determine signs of Keynesian thought in EPU rules and the operations of this clearing union. The article also provides an assessment of the Union’s economic performance. Additionally, it aims to examine the process that resulted in dismantling the Union in 1958.
Journal: Review of Political Economy
Pages: 371-389
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1776959
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1776959
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:371-389
Template-Type: ReDIF-Article 1.0
Author-Name: Giancarlo Bertocco
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Bertocco
Author-Name: Andrea Kalajzić
Author-X-Name-First: Andrea
Author-X-Name-Last: Kalajzić
Title: A Keynes + Schumpeter Model to Explain the Relationship Between Money, Development and Crises
Abstract:
Over the years, many economists have underlined the opportunity to integrate the lessons of Keynes and Schumpeter. Recently, Dosi and his co-authors have developed a ‘Keynes + Schumpeter’ model that describes a ‘complex evolving system’. This work presents a different version of a K + S model that highlights the role of bank money in the introduction of innovations, an essential part of Schumpeter’s analysis neglected by Dosi and his co-authors. The aim of this work is to integrate the visions of Keynes and Schumpeter in a way allowing: (i) to elaborate a monetary theory of production that highlights the relationship between money, development and crises; (ii) to show that the explanation of the relationship between money and crises derived from our K + S model is sounder than the explanations developed by Keynes in The General Theory, which is based on the liquidity preference theory, and by Schumpeter in Business Cycles, which, instead, is based on the concept of creative destruction.
Journal: Review of Political Economy
Pages: 390-413
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1783874
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1783874
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:390-413
Template-Type: ReDIF-Article 1.0
Author-Name: Corrado Andini
Author-X-Name-First: Corrado
Author-X-Name-Last: Andini
Title: Marx Meets Keynes in the Classroom: Teaching a Simple Model of Modern Capitalism
Abstract:
This paper presents a pedagogical model of the way modern capitalism works, which can be taught by using one single graph. Specifically, we extend earlier research by introducing features of the monetary theory of production [Graziani 1994. La Teoria Monetaria Della Produzione. Montepulciano: Editori del Grifo; Graziani 2003. The Monetary Theory of Production. Cambridge: Cambridge University Press] and distribution [Pivetti 1991. An Essay on Money and Distribution. London: Macmillan] into an existing model of the principle of effective demand [Andini 2009. ‘Teaching Keynes’s Principle of Effective Demand Within the Real Wage Vs. Employment Space.’ Forum for Social Economics 38 (2–3): 209–228.]. The resulting framework can be used for teaching a number of relevant economic propositions, which are consistent with the Marxian/Keynesian tradition in political economy. Among these, it is argued that both labour exploitation and ‘final finance’ loans play a fundamental role for the capitalist system to be money-profitable on aggregate.
Journal: Review of Political Economy
Pages: 414-432
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1785675
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1785675
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:414-432
Template-Type: ReDIF-Article 1.0
Author-Name: Sébastien Charles
Author-X-Name-First: Sébastien
Author-X-Name-Last: Charles
Author-Name: Jonathan Marie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Marie
Title: A Note on the Competing Causes of High Inflation in Bulgaria during the 1990s: Money Supply or Exchange Rate?
Abstract:
This note aims at analyzing Bulgaria’s high inflation regime during the 1990s. Two competing causes of high inflation are explored: changes in the rate of growth of the money supply in the economy and changes in the foreign exchange rate. Both correspond to traditional theoretical explanations: the monetarist view and the balance of payments approach. Evidence suggests that a variation in the exchange rate is significant in explaining the high inflation regime in Bulgaria whereas monetary growth appears to be insignificant. Consequently, the paper underlines the importance of stabilizing the exchange rate in the short run in order to avoid high inflation.
Journal: Review of Political Economy
Pages: 433-443
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1787002
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1787002
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:433-443
Template-Type: ReDIF-Article 1.0
Author-Name: Ajit Sinha
Author-X-Name-First: Ajit
Author-X-Name-Last: Sinha
Title: A Response to ‘On Sinha’s View of Sraffa’s Revolution in Economic Theory’
Journal: Review of Political Economy
Pages: 444-449
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1785683
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1785683
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:444-449
Template-Type: ReDIF-Article 1.0
Author-Name: Enrico Sergio Levrero
Author-X-Name-First: Enrico Sergio
Author-X-Name-Last: Levrero
Title: On Sraffa’s Prices: A Rejoinder to Sinha
Journal: Review of Political Economy
Pages: 450-458
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1785684
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1785684
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:450-458
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Author-Name: Gennaro Zezza
Author-X-Name-First: Gennaro
Author-X-Name-Last: Zezza
Title: A Simple Stock-Flow Consistent Model with Short-Term and Long-Term Debt: A Comment on Claudio Sardoni
Abstract:
In a recent article of this journal, Claudio Sardoni ([2019]. ‘Investment and Saving in a Dynamic Context: The Contribution of Athanasios (Tom) Asimakopulos.’ Review of Political Economy 31 (2): 233–246) made four claims: (1) An increase in the propensity to save will lower the long-term interest rate; (2) A higher preference for bonds will lead to lower long-term interest rates; (3) A higher level of investment will lead to a higher long-term interest rate; (4) A larger (exogenous) supply of money will lead to a lower long-term interest rate. We confront these four claims with the help of a simple stock-flow consistent (SFC) model which includes firms, banks and households, with the latter holding either bank deposits or bonds issued by firms, while these firms invest in fixed capital and in inventories. We find that higher investment leads to higher interest rates on bonds in the short run, but not in the medium or long run. Similarly, a higher desired inventories-to-output ratio ends up leading to lower interest rates both in the short and the long run. We conclude that using SFC models is particularly adequate when dealing with issues that integrate real and financial variables.
Journal: Review of Political Economy
Pages: 459-473
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1787616
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1787616
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:459-473
Template-Type: ReDIF-Article 1.0
Author-Name: Claudio Sardoni
Author-X-Name-First: Claudio
Author-X-Name-Last: Sardoni
Title: Saving and Investment Financing: Different Approaches
Abstract:
Lavoie and Zezza (2020. “A Simple Stock-Flow Consistent Model with Short-Term and Long-Term Debt.” Review of Political Economy, forthcoming.) present a stock-flow consistent model which critically refers to a recent work of mine (Sardoni, C. 2019. “Investment and Saving in a Dynamic Context: The Contributions of Athanasios (Tom) Asimakopulos.” Review of Political Economy 31 (2): 233–246.) concerned with the complex relation between saving, interest rates, finance and investment. This paper comments on Lavoie’s and Zezza’s interpretation of Sardoni’s position and results and, in turn, presents some critical observations about Lavoie’s and Zezza’s own model. The focus is on the relation between the marginal propensity to save and the long-term interest rate.
Journal: Review of Political Economy
Pages: 474-480
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1799608
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1799608
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:474-480
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Cristina Marcuzzo
Author-X-Name-First: Maria Cristina
Author-X-Name-Last: Marcuzzo
Title: The US Financial System and its Crises. From the 1907 Panic to the 2007 Crash
Journal: Review of Political Economy
Pages: 481-483
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1785685
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1785685
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:481-483
Template-Type: ReDIF-Article 1.0
Author-Name: Randy Priem
Author-X-Name-First: Randy
Author-X-Name-Last: Priem
Title: The ABCs of Capitalism
Journal: Review of Political Economy
Pages: 483-485
Issue: 3
Volume: 32
Year: 2020
Month: 7
X-DOI: 10.1080/09538259.2020.1785686
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1785686
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:3:p:483-485
Template-Type: ReDIF-Article 1.0
Author-Name: Natalia Bracarense
Author-X-Name-First: Natalia
Author-X-Name-Last: Bracarense
Title: The Aptly or Wrongly Named Development Economics: An Introduction to New Perspectives and Models
Journal: Review of Political Economy
Pages: 1-6
Issue: 1
Volume: 33
Year: 2021
Month: 01
X-DOI: 10.1080/09538259.2021.1855008
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1855008
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:1-6
Template-Type: ReDIF-Article 1.0
Author-Name: Celso Furtado
Author-X-Name-First: Celso
Author-X-Name-Last: Furtado
Title: Underdevelopment and Dependence: The Fundamental Connections
Journal: Review of Political Economy
Pages: 7-15
Issue: 1
Volume: 33
Year: 2021
Month: 01
X-DOI: 10.1080/09538259.2020.1827549
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1827549
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:7-15
Template-Type: ReDIF-Article 1.0
Author-Name: Celso Furtado
Author-X-Name-First: Celso
Author-X-Name-Last: Furtado
Title: The Myth of Economic Development and the Future of the Third World
Journal: Review of Political Economy
Pages: 16-27
Issue: 1
Volume: 33
Year: 2021
Month: 01
X-DOI: 10.1080/09538259.2020.1827552
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1827552
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:16-27
Template-Type: ReDIF-Article 1.0
Author-Name: Pedro Loureiro
Author-X-Name-First: Pedro
Author-X-Name-Last: Loureiro
Author-Name: Fernando Rugitsky
Author-X-Name-First: Fernando
Author-X-Name-Last: Rugitsky
Author-Name: Alfredo Saad-Filho
Author-X-Name-First: Alfredo
Author-X-Name-Last: Saad-Filho
Title: Celso Furtado and the Myth of Economic Development: Rethinking Development from Exile
Abstract:
This article introduces two previously unpublished working papers by the Brazilian economist Celso Furtado (1920–2004). Following a brief outline of his life and ideas, the arguments in the two papers are examined, taking into account their context and place in Furtado’s evolving body of work. These two papers represent a crucial turning point in Furtado’s thinking, highlighting his critical perspective on (under)development and laying the basis for four books that he would publish in rapid sequence. We stress Furtado’s growing scepticism with the prospects for international development and global convergence, and his attempt to reimagine the meaning of development and the potential paths to development by peripheral countries. Furtado’s approach to global capitalism in these two papers shed an even more critical light on its structure and evolution than his better-known works from the 1950s. Finally, the contemporary relevance of his ideas is illustrated by reference to their relationship with the current heterodox literature.
Journal: Review of Political Economy
Pages: 28-43
Issue: 1
Volume: 33
Year: 2021
Month: 01
X-DOI: 10.1080/09538259.2020.1827546
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1827546
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:28-43
Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Alencar
Author-X-Name-First: Douglas
Author-X-Name-Last: Alencar
Author-Name: Frederico G. Jayme
Author-X-Name-First: Frederico G.
Author-X-Name-Last: Jayme
Author-Name: Gustavo Britto
Author-X-Name-First: Gustavo
Author-X-Name-Last: Britto
Title: Growth, Distribution, and External Constraints: A Post-Kaleckian Model Applied to Brazil
Abstract:
The purpose of this research is to analyze whether the Brazilian economy behaved under a wage-led or profit-led regime between 1960 and 2011, considering a Post-Kaleckian model in a context of external constraints. The time span is limited by data availability (i.e., 2011). To answer the question of whether the Brazilian economy works under a wage-led or profit-led regime, we propose a simple Post-Kaleckian model. The model suggests that a profit-led regime is more probable for Brazil. Moreover, a wage-led regime occurs when a balance of payments constrained growth model is taken into consideration. Likewise, the real exchange rate has a positive impact on economic growth through the export channel. This result is a novelty in the recent literature about the relationship between real exchange rate and economic growth within a Post-Kaleckian model. The Brazilian economy was chosen as it is one of the biggest economies in Latin America.
Journal: Review of Political Economy
Pages: 44-66
Issue: 1
Volume: 33
Year: 2021
Month: 1
X-DOI: 10.1080/09538259.2020.1720149
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1720149
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:44-66
Template-Type: ReDIF-Article 1.0
Author-Name: Marcos Vinícius Isaias Mendes
Author-X-Name-First: Marcos Vinícius Isaias
Author-X-Name-Last: Mendes
Title: The Limitations of International Relations Regarding MNCs and the Digital Economy: Evidence from Brazil
Abstract:
Multinationals (MNCs) have been considered a relevant research topic for International Relations since the emergence of the field of International Political Economy in the 1970s. Nowadays, MNCs are undergoing deep changes in their business models and global strategies due to the digital economy. This has considerable implications for the international system. For instance, the rise of information and communication technology (ICT) MNCs to the top of market value lists globally. Nonetheless, IR scholars have been slow in grasping the importance of ICT MNCs and the digital economy. In this paper, I justify this statement by evaluating the inclusion of MNCs and ICT MNCs in Brazilian IR scholarship. The method used is a bibliometric mapping of the scientific production of Brazilian IR scholars, supported by a systematic literature review. The results showcase that, in spite of the impact of digitalization on Brazil's economy and politics, IR scholars have conducted few studies on MNCs and practically no studies on ICT MNCs. This case illustrates the emergence of new dynamics in global value chains triggered by digitalization. It also illustrates the challenges for developing countries such as Brazil to engage in global production networks within the highly competitive ICT sector.
Journal: Review of Political Economy
Pages: 67-87
Issue: 1
Volume: 33
Year: 2021
Month: 1
X-DOI: 10.1080/09538259.2020.1730609
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1730609
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:67-87
Template-Type: ReDIF-Article 1.0
Author-Name: Fábio Henrique Bittes Terra
Author-X-Name-First: Fábio Henrique Bittes
Author-X-Name-Last: Terra
Author-Name: Fernando Ferrari Filho
Author-X-Name-First: Fernando
Author-X-Name-Last: Ferrari Filho
Author-Name: Pedro Cezar Dutra Fonseca
Author-X-Name-First: Pedro Cezar Dutra
Author-X-Name-Last: Fonseca
Title: Keynes on State and Economic Development
Abstract:
This article has two purposes. On the one hand, it develops Keynes’s concept of economic development. On the other hand, it presents Keynes’s ideas about the role of State, chiefly the State Agenda. Keynes believed that the stage of economic development would only be attained if the State Agenda was in practice. In turn, to Keynes the economic development would be a stage in which the economic problems of society have been surpassed, and the motto of the individual behavior has been changed from the love of money to the love of living.
Journal: Review of Political Economy
Pages: 88-102
Issue: 1
Volume: 33
Year: 2021
Month: 01
X-DOI: 10.1080/09538259.2020.1823072
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1823072
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:88-102
Template-Type: ReDIF-Article 1.0
Author-Name: Roberto Lampa
Author-X-Name-First: Roberto
Author-X-Name-Last: Lampa
Title: Capital Flows to Latin America (2003–17): A Critical Survey from Prebisch’s Business Cycle Theory
Abstract:
The economic literature on capital flows to developing countries has shared two important commonalities since the 1990s. Published works (whether they focus on the external situation or stress the domestic determinants of capital flows) tend to assume a beneficial effect of capital inflows, which leads to an improvement of peripheral institutions, whose deficiencies are ostensibly the main cause of economic turmoil and/or failure in attracting capital flows, in continuity with New Institutional Economics. In doing so, mainstream economists deliberately overlook the asymmetric characteristics of the international monetary system and the persisting hegemony of dollar. Raul Prebisch’s pioneering work on business cycles in Latin America provide an alternative view, one capable of amending the existing mainstream literature. On the one hand, Prebisch stressed the destabilizing role of capital inflows on Latin American economies, particularly short-term speculative capital. On the other hand, Prebisch designed a set of counter cyclical monetary policies in order to contrast capital volatility, particularly during downturns. An analysis of stylized facts shows that, when correctly updated, Prebisch’s theory has remarkable explanatory potential when applied to Latin America’s current economic and financial situation.
Journal: Review of Political Economy
Pages: 103-125
Issue: 1
Volume: 33
Year: 2021
Month: 01
X-DOI: 10.1080/09538259.2020.1846872
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1846872
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:103-125
Template-Type: ReDIF-Article 1.0
Author-Name: Alex Wilhans Antonio Palludeto
Author-X-Name-First: Alex Wilhans Antonio
Author-X-Name-Last: Palludeto
Author-Name: Roberto Alexandre Zanchetta Borghi
Author-X-Name-First: Roberto Alexandre Zanchetta
Author-X-Name-Last: Borghi
Title: Institutions and Development From a Historical Perspective: the Case of the Brazilian Development Bank
Abstract:
This paper analyzes the role played by the Brazilian Development Bank (BNDES) in different periods of Brazil’s development process since its founding in 1952. The bank’s history is nonlinear, varying with socio-economic and political changes over time. Four major periods in its history are: (i) from its creation to the debt crisis in the 1980s, a period known as ‘developmentalism’; (ii) the neoliberal movement of the 1990s; (iii) the reintroduction of the BNDES as a relevant tool for development in the 2000s; and (iv) a new neoliberal movement that arose beginning in mid-2016. Each of these periods is characterized by certain development conventions that shape how institutions, such as the BNDES, operate, and at the same time are shaped by them. In contrast to mainstream economics, which focuses on a one-size-fits-all institution for development, this paper evaluates the interactions between development and institutions as historical processes, with an emphasis on the prevailing development conventions. The trajectory and different roles assumed by the BNDES over time exemplify this permanent relationship, rejecting the idea that particular types of institutions are related to development.
Journal: Review of Political Economy
Pages: 126-144
Issue: 1
Volume: 33
Year: 2021
Month: 1
X-DOI: 10.1080/09538259.2020.1720144
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1720144
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:126-144
Template-Type: ReDIF-Article 1.0
Author-Name: Kalpana Khanal
Author-X-Name-First: Kalpana
Author-X-Name-Last: Khanal
Author-Name: Natalia Bracarense
Author-X-Name-First: Natalia
Author-X-Name-Last: Bracarense
Title: Institutional Change in Nepal: Liberalization, Maoist Movement, Rise of Political Consciousness and Constitutional Change
Abstract:
Contradicting the rest of the world’s promptness to discredit communism as an alternative and Francis Fukuyama’s (1992) teleological account of ‘the end of history,’ Nepal witnessed a Maoist revolution between 1996 and 2006. Such a ‘deviation’ from what Fukuyama and others have viewed as the path of development raises questions about the linear progression of history and its implicit dualism of market vs. government. As several Original Institutional Economists have discussed, analytical dichotomies lead to a simplistic understanding of transformation that disregards the multilayered nature of society and, thus, concludes that history unfolds linearly to arrive at a predetermined and homogeneous end. This paper analyzes the social transformation of Nepal that preceded the Maoist revolution, through the lens of Feminist Institutionalism, utilizing a multidisciplinary approach to understand the complexity of the impacts of liberalism-protectionism political changes on Nepali institutions.
Journal: Review of Political Economy
Pages: 145-166
Issue: 1
Volume: 33
Year: 2021
Month: 01
X-DOI: 10.1080/09538259.2020.1812197
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1812197
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:1:p:145-166
Template-Type: ReDIF-Article 1.0
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Author-Name: Marcin Czachor
Author-X-Name-First: Marcin
Author-X-Name-Last: Czachor
Author-Name: Gracjan Bachurewicz
Author-X-Name-First: Gracjan
Author-X-Name-Last: Bachurewicz
Title: Introduction: Kalecki and Kaleckian Economics
Journal: Review of Political Economy
Pages: 487-491
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1844963
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1844963
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:487-491
Template-Type: ReDIF-Article 1.0
Author-Name: Jerzy Osiatyński
Author-X-Name-First: Jerzy
Author-X-Name-Last: Osiatyński
Title: Remembering Kalecki: 22/05/1899–18/04/1970
Abstract:
In this memoir article, I reminisce on the life of Michał Kalecki, a distinguished scholar, self-taught economist, strong intellectual, loving husband and a rigorous teacher. Kalecki is often portraited as being rather timid and modest in personal relations. Nonetheless, he was a bright and self-confident speaker when presenting his own ideas and challenging those of others. I first met Kalecki in 1963 when I was a graduate student of economics at the Main School of Planning and Statistics (today known as the Warsaw School of Economics). At that time, Kalecki was an undisputable intellectual leader and the economic guru for many young economists, myself included. However, in 1968, due to political pressures and the rising antisemitism in Poland, Kalecki resigned from his professorship at the Main School. A few months after his death, in 1970, with no prospects of doing economic research in Poland, I decided to move to England. Joan Robinson helped me get a guest-fellowship in Clare Hall, Cambridge, where I spent the next two years. Eventually, with the help and invaluable support from Ada Kalecka, Tadeusz Kowalik and Włodzimierz Brus, I became the editor of Kalecki’s Collected Works.
Journal: Review of Political Economy
Pages: 492-499
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1841426
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1841426
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:492-499
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Cristina Marcuzzo
Author-X-Name-First: Maria Cristina
Author-X-Name-Last: Marcuzzo
Title: Kalecki and Cambridge
Abstract:
This paper discusses Michał Kalecki’s impact on Cambridge’s major protagonists and, in turn, the impact they had on him during the time he spent in Cambridge. It concentrates on the criticisms he was met with on the part of Keynes, Kahn and Robinson, especially on his notion of the ‘degree of monopoly’. This was the reason for his departure from Cambridge, although he continued to receive support from his Cambridge friends. The rift between him and Cambridge can be explained by the fact that, Sraffa excepted, Keynes, Kahn and Robinson were (at the time) thinking within the Marshallian framework of price determination and—quite rightly—found Kalecki’s approach to be incompatible with it. Robinson later became converted to an approach to prices and distribution which has Kalecki, alongside Sraffa, as one of the contributors and now it is part of what she herself had christened post-Keynesian economics.
Journal: Review of Political Economy
Pages: 500-510
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1832391
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1832391
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:500-510
Template-Type: ReDIF-Article 1.0
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Author-Name: Won Jun Nah
Author-X-Name-First: Won Jun
Author-X-Name-Last: Nah
Title: Overhead Labour Costs in a Neo-Kaleckian Growth Model with Autonomous Non-Capacity Creating Expenditures
Abstract:
A notable feature of income distribution is the widening wage differential among workers: there is a redistribution in favour of managers at the detriment of ordinary workers. The paper incorporates this distinction between overhead managerial labour and direct labour into a neo-Kaleckian growth model with target-return pricing, where an autonomously growing demand component ultimately determines the long-run path of an economy. Our aim is to explore the role of overhead labour costs in the coevolution of income distribution and economic growth. We find that the profit share becomes an increasing function of the rate of capacity utilization, implying that empirical research based on the post-Kaleckian specification of investment is likely to be biased in finding a profit-led regime. Our model also features convergence to a fully adjusted position. We examine the parametric conditions under which the model achieves a wage-led growth regime in the long run, in the restricted sense that both the average rates of accumulation and utilization decrease during the transitional dynamics arising from an upward adjustment of the normal profit rate. Moreover, it is shown that a more equitable wage distribution between managers and ordinary workers will strengthen the wage-led nature of the economy.
Journal: Review of Political Economy
Pages: 511-537
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1810875
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1810875
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:511-537
Template-Type: ReDIF-Article 1.0
Author-Name: Amit Bhaduri
Author-X-Name-First: Amit
Author-X-Name-Last: Bhaduri
Title: Reforming Capitalist Democracies: Which Way?
Abstract:
The debate about how to reconcile political with economic democracy is translated within the framework of wage and profit-led growth in this article. The inherent tension between providing sufficient profit incentive to motivate investment by the capitalist class and maintaining electoral accountability to the economically less privileged majority is examined through an analysis of the effectiveness of policies to raise the social wage. This article shows how wider circumstances characterizing regimes as wage- or profit-led matter for reconciling a higher profit share with a higher social wage.
Journal: Review of Political Economy
Pages: 538-547
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1810878
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1810878
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:538-547
Template-Type: ReDIF-Article 1.0
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: Kalecki on Budget Deficits and the Possibilities for Full Employment
Abstract:
This paper revisits the writings of Michal Kalecki which relate to issues of fiscal policy, budget deficits and securing full employment in capitalist economies. It seeks to relate those writings to the recent fiscal policy debates after the global financial crises. It covers the issues of the financing and funding of public expenditure and private expenditure. The relationship between the scale of budget deficit and the achievement of full employment is considered. Kalecki’s approach to the ‘burden’ of debt is elaborated. The social and political constraints on the achievement of full employment are revisited.
Journal: Review of Political Economy
Pages: 548-562
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1831203
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1831203
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:548-562
Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Author-Name: Judith Martschin
Author-X-Name-First: Judith
Author-X-Name-Last: Martschin
Title: The Eurozone in Crisis — A Kaleckian Macroeconomic Regime and Policy Perspective
Abstract:
The current Covid-19 Crisis 2020 has hit the Eurozone in a highly fragile situation, with a weak and asymmetric recovery from the Great Financial Crisis, the Great Recession and the following Eurozone Crisis. These crises have revealed the weaknesses of the macroeconomic policy institutions and strategies of the Eurozone based on New Consensus Macroeconomics (NCM). Applying a Kaleckian/post-Keynesian analysis of the demand and growth regimes to the EA-12 countries, we show that the internal imbalances within the EA-12 before the Eurozone have been externalised since then. Most of the countries and the EA-12 as a whole have now turned export-led mercantilist and thus highly vulnerable to fluctuations in world demand. For an economic policy alternative we turn towards Kalecki’s macroeconomic policy proposals for achieving and maintaining full employment in a capitalist economy by government deficit expenditures, in combination with re-distribution policies in favour of labour and low-income households, assisted by central banks targeting low interest rates. This approach is then applied to the Eurozone, in order to derive a policy mix which should contribute to a more rapid recovery from the Covid-19 Crisis and to a medium- to long-run non-inflationary full employment domestic demand-led regime.
Journal: Review of Political Economy
Pages: 563-588
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1831202
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1831202
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:563-588
Template-Type: ReDIF-Article 1.0
Author-Name: Jerzy Osiatyński
Author-X-Name-First: Jerzy
Author-X-Name-Last: Osiatyński
Title: The Relevance of Kalecki for Financial Capitalism of the 2020s
Abstract:
The paper focuses on four critical differences between capitalism of the Keynes-Kalecki times and the present-day financial capitalism. The first follows from the wholesale globalisation and liberalisation of financial and capital markets which drastically changed the nature of political opposition against full employment. The second results from changes in income and wealth distribution and in access to basic public services like health, education, and social security. The third is the evolution of the Schumpeterian entrepreneurial innovators to financial rent-seekers and speculators. The fourth relates to the question whether economic dynamics and business fluctuations are of Kaleckian nature, i.e. resulting from the feedback between the income generating effect, and the productive capacity augmenting effect, of private investment in fixed capital, or are they of Minskian financial instability nature. And if the latter is true, what is the room for any countercyclical policy that Keynes and Kalecki recommended. The essay ends with the question on how to include the Minskian financial instability of the present-day capitalism into Kalecki's canonical profit equation on which his theory of economic dynamics and business fluctuations is founded.
Journal: Review of Political Economy
Pages: 589-595
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1840044
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1840044
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:589-595
Template-Type: ReDIF-Article 1.0
Author-Name: Jan Toporowski
Author-X-Name-First: Jan
Author-X-Name-Last: Toporowski
Title: Debt Management and the Fiscal Balance
Abstract:
This paper presents a method for integrating debt management into fiscal policy using principles derived from the work of Kalecki. It proposes dividing the government budget into a functional budget containing taxes and expenditure that may affect expenditures in the non-financial economy, and a financial budget containing taxes on wealth and higher incomes that do not affect expenditures in the real economy but do affect the liquidity of wealth portfolios. This gives the government two more or less independent instruments to manage economic growth and government debt. The respective balances between the functional and financial budgets then affect the fiscal multiplier showing how cases of expansionary fiscal contraction, contractionary fiscal expansion, expansionary financial instability, and deflationary financial instability may arise. The analysis applies to domestically financed debt.
Journal: Review of Political Economy
Pages: 596-603
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1841429
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1841429
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:596-603
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Kriesler
Author-X-Name-First: Peter
Author-X-Name-Last: Kriesler
Author-Name: Joseph Halevi
Author-X-Name-First: Joseph
Author-X-Name-Last: Halevi
Title: Kalecki and Marx Reconnected
Abstract:
The paper considers the nature that Kalecki’s contributions represent a significant contribution to the Marxist tradition. While we argue that the underlying method of both Marx and Kalecki — their vision of society and its dynamics — and much of their analysis is fundamentally the same, differences arise because of the development of capitalism and the different stages of society each is analysing. For Kalecki, developed capitalist economies have reached a stage of capital accumulation where the existing capital stock is sufficient to employ all the economy's labour. Associated with this is the rise of imperfectly competitive firms. The economic dynamics of capitalism have evolved as a result, with growth and employment being determined by different factors.
Journal: Review of Political Economy
Pages: 604-614
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1842433
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1842433
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:604-614
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Cristina Barbieri Góes
Author-X-Name-First: Maria Cristina
Author-X-Name-Last: Barbieri Góes
Title: Personal Income Distribution and Progressive Taxation in a Neo-Kaleckian Model: Insights from the Italian Case
Abstract:
This paper develops a stylized short-run neo-Kaleckian model incorporating personal income inequality and income taxes. The main goal is to investigate how changes in income taxes and personal income distribution affect output growth. The theoretical discussion of the stylized model is then empirically assessed using data for Italy retrieved from the Survey of Household Income and Wealth published by the Bank of Italy. The empirical analysis confirms both the heterogeneity of the propensities to consume of Italian households and the dominance of absolute income effects in the Italian consumer behavior that assures the negative trade-off between inequality and aggregate demand. More specifically, it is shown that, overall, Italians are still income constrained, not allowing for a compensation of the demand-depressing effects of raising inequality via debt and wealth-based consumption. Likewise, it is argued that decreasing personal income inequality via progressive income tax reforms would have positive effects on aggregate demand, utilization, and growth.
Journal: Review of Political Economy
Pages: 615-639
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1821999
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1821999
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:615-639
Template-Type: ReDIF-Article 1.0
Author-Name: Eckhard Hein
Author-X-Name-First: Eckhard
Author-X-Name-Last: Hein
Title: Gender Issues in Kaleckian Distribution and Growth Models: On the Macroeconomics of the Gender Wage Gap
Abstract:
We introduce a gender wage gap into basic one-good textbook versions of the neo-Kaleckian distribution and growth model for a developed capitalist economy and examine the effects of improving gender wage equality on income distribution, aggregate demand, capital accumulation and productivity growth. For the closed economy model, reducing the gender wage gap has no effect on the profit share, and a gender equality-led regime requires the propensity to save out of female wages to fall short of the propensity to save out of male wages. For the open economy model, this condition is modified by the effects of improved gender wage equality on exports, and – through changes of the profit share – on domestic demand. Finally, for the open economy with productivity growth we find an unambiguously expansionary effect of narrowing the gender wage gap on long-run equilibrium capital accumulation and productivity growth if the demand growth regime is gender equality-led. A gender equality-burdened demand growth regime, however, may generate different long-run effects of improving gender wage equality on capital accumulation and productivity growth: expansionary, intermediate or contractionary.
Journal: Review of Political Economy
Pages: 640-664
Issue: 4
Volume: 32
Year: 2020
Month: 10
X-DOI: 10.1080/09538259.2020.1836811
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1836811
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Handle: RePEc:taf:revpoe:v:32:y:2020:i:4:p:640-664
Template-Type: ReDIF-Article 1.0
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: A Word from the Editor
Journal: Review of Political Economy
Pages: 167-169
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2021.1882734
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1882734
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:167-169
Template-Type: ReDIF-Article 1.0
Author-Name: Giulia Zacchia
Author-X-Name-First: Giulia
Author-X-Name-Last: Zacchia
Title: What Does It Take to Be Top Women Economists? An Analysis Using Rankings in RePEc
Abstract:
Women are substantially under-represented in the field of economics: their progress is slow and just few women reach top positions. From the 1980s, studies document the clear barriers and implicit biases in publishing, promotion, and tenure that women face. The paper aims at studying gender differences focusing on ‘excellence'. Using RePEc as a dataset, I test how different definitions of excellence can systematically advantage or disadvantage women’s visibility in rankings of top economists and how it impacts on their probability to receive rightful recognition in academia. I found that, even among top economists, being a woman significantly reduces the probability of reaching the top of the profession. The results also underline a problematic relationship between gender and excellence that sets the bar higher for women in reaching the top of the academic career. Women economists, despite their efforts, tend to receive less recognition than men in terms of promotion to full-professorship based on the criterion of excellence in which they excel. Challenging the assumption about gender neutral excellence is a first important step to disrupt power hierarchical patriarchal structures in the economics profession and to advance the representation of women and diverse individuals in apical roles in economics.
Journal: Review of Political Economy
Pages: 170-193
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1848624
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1848624
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:170-193
Template-Type: ReDIF-Article 1.0
Author-Name: Eduardo Crespo
Author-X-Name-First: Eduardo
Author-X-Name-Last: Crespo
Author-Name: Ariel Dvoskin
Author-X-Name-First: Ariel
Author-X-Name-Last: Dvoskin
Author-Name: Guido Ianni
Author-X-Name-First: Guido
Author-X-Name-Last: Ianni
Title: Exclusion in ‘Ricardian’ Trade Models
Abstract:
In the so-called ‘Ricardian’ trade models, exclusion from trade is impossible because a country can always compensate its technological backwardness with low wages. This result is ensured in these models due to the very restrictive assumption that production requires unassisted labor alone. The present paper shows that the moment conditions of production realistically consider (a) the presence of capital goods and (b) a positive interest rate under international capital mobility, the likelihood of exclusion can no longer be neglected.We develop a model in which imported means of production may impose the presence of a positive lower bound to production costs even if there were no limits to the fall in the rate of domestic real wages. Exclusion is, therefore, the result of this lower bound being higher than the prevailing international price, both for capital and consumption-goods sectors. We finally examine the connection between hypotheses (a) and (b) and the existence of this positive lower bound, both in the model and under alternative assumptions about technology and show that under the hypothesis of technical dependency it is possible that a country is excluded from trade even if there is no capital mobility.
Journal: Review of Political Economy
Pages: 194-211
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1817669
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1817669
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:194-211
Template-Type: ReDIF-Article 1.0
Author-Name: Davide Villani
Author-X-Name-First: Davide
Author-X-Name-Last: Villani
Title: The Rise of Corporate Net Lending Among G7 Countries: A Firm-Level Analysis
Abstract:
In recent decades, corporate net lending has been increasing in several developed countries. This paper discusses the impact of financialisation and income distribution on the level of net lending of listed non-financial corporations in G7 countries. We argue that financialisation affects the level of corporate net lending through firms' re-organisation towards a model of accumulation based on the maximisation of ‘shareholder value’ and through its negative impact on investment. Moreover, the reduction in the wage share can increase corporate capacity for liquidity accumulation, thus increasing the gap between corporate savings and investment, contributing to the rise in net lending. We test our hypotheses using panel data of publicly listed non-financial corporations for the period 1990–2015. According to our findings the process of financialisation has a positive impact on the level of net lending after 2001, while the wage share at the firm level has a strong negative impact on the level of net lending throughout the whole period.
Journal: Review of Political Economy
Pages: 212-235
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1860305
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1860305
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:212-235
Template-Type: ReDIF-Article 1.0
Author-Name: Soumya Datta
Author-X-Name-First: Soumya
Author-X-Name-Last: Datta
Title: Monetary Policy Under Steindlian Mark-up Dynamics
Abstract:
We formulate a macrodynamic model of interaction between a post-Keynesian investment function with endogenous capacity utilization and pro-cyclical mark-up over wage costs in a demand-constrained closed economy. The main objective of the study is to examine whether, in the absence of effective collective bargaining by the workers, monetary policy can resolve class conflict and maintain social stability. We consider a modified version of the counter-cyclical Taylor-type interest-rate rules that targets income distribution through the rate of capacity utilization. We explore the extent to which a combination of pro-cyclical mark-up dynamics and counter-cyclical interest-rate rules can stabilize potentially unstable investment dynamics. We also examine the effectiveness of monetary policy in the form of interest-rate rules in stabilizing output and income distribution.
Journal: Review of Political Economy
Pages: 236-260
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1824757
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1824757
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:236-260
Template-Type: ReDIF-Article 1.0
Author-Name: Ariel Dvoskin
Author-X-Name-First: Ariel
Author-X-Name-Last: Dvoskin
Author-Name: Germán David Feldman
Author-X-Name-First: Germán David
Author-X-Name-Last: Feldman
Title: On the Role of Finance in the Sraffian System
Abstract:
We critically review the previous attempts to introduce money and finance into Sraffa's price system and identify the coexistence of two different notions of the interest rate that have not been properly disentangled: the interest rate as an opportunity cost and as an effective cost of production. We argue that the former must be present for the validity of the Monetary Theory of Distribution (MTD), while the latter is necessary to address the influence of the banking sector on income distribution. We then present a possible formalization of the banking sector that considers those specific features that distinguish its normal costs of production from other capitalist sectors of the economy.
Journal: Review of Political Economy
Pages: 261-277
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1819013
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1819013
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:261-277
Template-Type: ReDIF-Article 1.0
Author-Name: Antonella Stirati
Author-X-Name-First: Antonella
Author-X-Name-Last: Stirati
Author-Name: Carlo Zappia
Author-X-Name-First: Carlo
Author-X-Name-Last: Zappia
Title: Introduction to the STOREP symposium
Journal: Review of Political Economy
Pages: 278-279
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2021.1896653
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1896653
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:278-279
Template-Type: ReDIF-Article 1.0
Author-Name: Alan Kirman
Author-X-Name-First: Alan
Author-X-Name-Last: Kirman
Title: Walras or Pareto: Who is to Blame for the State of Modern Economic Theory?
Abstract:
Walras and Pareto are considered founders of the Ecole de Lausanne. However, their points of view on economics as a science were at considerable variance and their appreciation of each other was limited. On the path from Adam Smith’s Invisible Hand to Arrow and Debreu’s proof of the existence of equilibrium, Walras is thought of as having formulated the general equilibrium model and Pareto as having improved upon and advanced theory and economics down the path that Walras had envisaged. The purpose of this article is to suggest that this is too simple a picture, that the road to an adequate explanation of the Invisible Hand petered out and Pareto’s contribution was instrumental in its demise. Paradoxically, the almost technical generalization of the Walrasian model that Pareto developed locked pure economic theory and modern macroeconomics, which has based itself on that theory, into a dead end. Both their different scientific visions and their antagonistic personal relationship meant that, while their interests coincided for a period, they could hardly be regarded as having a common project and thus the Ecole de Lausanne is a misnomer.
Journal: Review of Political Economy
Pages: 280-302
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2021.1889173
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1889173
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:280-302
Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Di Bucchianico
Author-X-Name-First: Stefano
Author-X-Name-Last: Di Bucchianico
Title: The Impact of Financialization on the Rate of Profit
Abstract:
This work investigates some channels through which financialization may impact the normal rate of profit by making use of the ‘integrated wage-commodity sector’ methodology. We analyse the effect of technical innovations in the financial sector, a higher financial sector’s share of profits and GDP, rising household indebtedness and socio-political factors that reduce workers’ bargaining power. We find that during the financialization era, the first factor did not impact normal profitability since it mostly regarded instruments such as derivatives. The second should in principle not affect the normal rate of profit although it may impact aggregate income shares. The third, as far as its effect on aggregate demand is concerned, does not have an impact on the normal rate of profit. The fourth turns out to be the main factor that drives the normal rate of profit upwards through its impact on functional income distribution.
Journal: Review of Political Economy
Pages: 303-326
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1835109
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1835109
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:303-326
Template-Type: ReDIF-Article 1.0
Author-Name: Emanuele Citera
Author-X-Name-First: Emanuele
Author-X-Name-Last: Citera
Author-Name: Lino Sau
Author-X-Name-First: Lino
Author-X-Name-Last: Sau
Title: Reflexivity, Financial Instability and Monetary Policy: A ‘Convention-Based’ Approach
Abstract:
The aim of this paper is to provide a theoretical analysis of the role of social conventions as emergent phenomena in financial markets, the latter being thought of as dynamically complex systems. Combining complexity and reflexivity with Keynes’s view of financial markets, we develop a ‘convention-based’ approach which shows how conventions can only temporarily stabilize the system, inevitably leading to financial instability and crises. Then, we adopt this framework to investigate a central banking agenda to act ‘against the tide’ (i.e., the prevailing convention) in the build-up of a speculative bubble, which calls for macroprudential policy and financial regulation. In this respect, we analyze the moral suasion channel that allows the central monetary authority to ‘talk down’ the market through asset-price management and the unconventional monetary policy toolkit.
Journal: Review of Political Economy
Pages: 327-343
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1815960
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1815960
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:327-343
Template-Type: ReDIF-Article 1.0
Author-Name: Andrej Svorenčík
Author-X-Name-First: Andrej
Author-X-Name-Last: Svorenčík
Title: The Driving Forces Behind the Rise of Experimental Economics
Abstract:
This paper analyzes key motives and pivotal experiences—which I label driving forces—that turned non-experimental economists into early pioneers of experimental economics and kick-started a continuous style of experimentation in the 1960s and 1970s.The first driving force, integrity—the augmentation of what types of data are available to economists by introducing experimental data and advocating its advantages—is illustrated by the story of James Cox. The second, proximity, denoting the personal collection of data under controlled conditions, is illustrated by the experiences of Charles Plott. The third, data-theory symmetry, deals with the placing of experimental data on a par with economic theory and is illustrated by John Ledyard. Finally, the driving force of a virtuous circle—the realization that experimental research is most potent when it goes in tandem with economic theory—is introduced by Reinhard Selten’s discovery of sub-game perfect equilibrium that eventually led to his Nobel Prize in 1994.These four protagonists, derived from an extensive oral history of experimental economists, were chosen to illustrate the driving forces. Their described experiences played no small part in the experimental life that they eventually embarked on.
Journal: Review of Political Economy
Pages: 344-361
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1841384
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1841384
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:344-361
Template-Type: ReDIF-Article 1.0
Author-Name: John E. King
Author-X-Name-First: John E.
Author-X-Name-Last: King
Title: Post-Keynesian monetary theory: selected essays
Journal: Review of Political Economy
Pages: 362-363
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2021.1889172
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1889172
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:362-363
Template-Type: ReDIF-Article 1.0
Author-Name: Tracey Freiberg
Author-X-Name-First: Tracey
Author-X-Name-Last: Freiberg
Title: Unbound: How Inequality Constricts our Economy and What We Can Do about It
Journal: Review of Political Economy
Pages: 364-366
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1785688
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1785688
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:364-366
Template-Type: ReDIF-Article 1.0
Author-Name: Artyom H. Tonoyan
Author-X-Name-First: Artyom H.
Author-X-Name-Last: Tonoyan
Title: Transition Economies: Transformation, Development, and Society in Eastern Europe and the former Soviet Union
Journal: Review of Political Economy
Pages: 366-369
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2020.1785689
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1785689
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:366-369
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Ferreiro
Author-X-Name-First: Jesus
Author-X-Name-Last: Ferreiro
Title: In Memoriam Eugenia Correa
Journal: Review of Political Economy
Pages: 370-371
Issue: 2
Volume: 33
Year: 2021
Month: 04
X-DOI: 10.1080/09538259.2021.1907934
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1907934
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:2:p:370-371
Template-Type: ReDIF-Article 1.0
Author-Name: Riccardo Bellofiore
Author-X-Name-First: Riccardo
Author-X-Name-Last: Bellofiore
Title: The Winters of Our Discontent and the Social Production Economy
Abstract:
The economic policy reaction to the Covid-19 crisis has been considered from different angles. Here I will remind only the positions by Draghi (looking at this historical conjuncture comparing it to ‘war times’), Tooze (seeing in it the definitive closure of the ‘political economy of inflation’ as well as ‘the first crisis of Anthropocene’), Kregel (proposing ‘central controls for social provisioning’ as the pertinent macroeconomic policy). The pandemic could inaugurate a game change in European economic policy; and even unlikely quarters suggested in the last year a retreat from neoliberalism as we knew it. However, the health crisis is not an exogenous shock: it is inherent in the capitalist social form of production and consumption. The pathological state of affairs that takes our breath away reveals the hidden reality of the society where we work and consume. Confronting the current and future virus outbreaks (as well as climate change) obliges us to go back to the founding themes of macroeconomics, which needs to consider not just the level of employment, but also what employment is for. In this logic, we are forced to radicalise the notion of the ‘socialisation of investment’ into that of a ‘social production economy’: the challenge in front of us is indeed about the ‘how’, ‘what’, ‘how much’ and ‘for whom’ to produce.
Journal: Review of Political Economy
Pages: 394-413
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2021.1894818
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1894818
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:394-413
Template-Type: ReDIF-Article 1.0
Author-Name: Douglas Alencar
Author-X-Name-First: Douglas
Author-X-Name-Last: Alencar
Author-Name: Frederico G. Jayme
Author-X-Name-First: Frederico G.
Author-X-Name-Last: Jayme
Author-Name: Gustavo Britto
Author-X-Name-First: Gustavo
Author-X-Name-Last: Britto
Author-Name: Cláudio Puty
Author-X-Name-First: Cláudio
Author-X-Name-Last: Puty
Title: Distribution and Productivity Growth: An Empirical Exercise Applied to Selected Latin American Countries
Abstract:
The paper investigates whether productivity growth is affected by the rate of growth of income and by that of employment for a representative sample of Latin American countries from the 1980s to the early 2010s. Having post-Kaleckian models as background, the paper empirically assesses the relationship between these variables, which are believed to be behind the underdeveloped trap, low productivity growth, high income concentration and low-income growth. The results show a positive impact of the rate of growth of income over productivity, the so called Kaldor-Verdoorn coefficient. However, the vast majority of the sample, the effect of employment growth on productivity growth was not significant. The latter results are consistent to the interpretation offered by the Latin American Structuralist School, who has long argued that one of the hallmarks of underdetermine is uneven spread of the productivity gains though the economy. This is the framework used to interpret the results.
Journal: Review of Political Economy
Pages: 487-510
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2020.1815961
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1815961
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:487-510
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Cristina Barbieri Góes
Author-X-Name-First: Maria Cristina
Author-X-Name-Last: Barbieri Góes
Author-Name: Ettore Gallo
Author-X-Name-First: Ettore
Author-X-Name-Last: Gallo
Title: Infection Is the Cycle: Unemployment, Output and Economic Policies in the COVID-19 Pandemic
Abstract:
This paper seeks to capture the dynamic interaction between the epidemiological evolution of COVID-19 and its effect on the macroeconomy, in absence of widespread vaccination. We do that by building a stylized two-equations dynamical system in the COVID-19 positivity rate and the unemployment rate. The solution of the system makes the case for an endemic equilibrium of COVID-19 infections, thus producing waves in the two variables in the absence of widespread immunity through vaccination. Furthermore, we model the impact of the pandemic-driven unemployment shock on output, showing how the emergence of cyclical downswings could determine a L-shaped recession in the medium run, in absence of adequate stimulus policies. Moreover, we simulate the model, calibrating it for the US. The simulation highlights the effects on unemployment and on overall economic activity produced by recurrent waves of COVID-19, which risk to jeopardize the coming back to the pre-crisis trend in the medium run.
Journal: Review of Political Economy
Pages: 377-393
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2020.1861817
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1861817
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:377-393
Template-Type: ReDIF-Article 1.0
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: Economic Policies and the Coronavirus Crisis in the UK
Abstract:
The focus of this article is the economic policies pursued in the UK in response to the coronavirus pandemic in the first twelve months of that crisis (February 2020 to January 2021). The measures of lockdown, quarantine, limitations on travel and so on are discussed as relevant to economic policies. The timeline of the policy responses to coronavirus, the evolution of the infections, and of economic activity is briefly outlined. The main fiscal policy responses in terms of development of policy programmes and the evolving budget deficit are considered, as are the policies of the Bank of England. There is a brief discussion of the financing and funding of public expenditure, and of post-pandemic budgetary policies. The failures of public procurement policies during the pandemic are reviewed, particularly in relation to the interface between public and private sectors. This is followed by consideration of aspects of inequalities and the coronavirus pandemic.
Journal: Review of Political Economy
Pages: 414-431
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2021.1897254
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1897254
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:414-431
Template-Type: ReDIF-Article 1.0
Author-Name: Gary Dymski
Author-X-Name-First: Gary
Author-X-Name-Last: Dymski
Author-Name: Danielle Guizzo
Author-X-Name-First: Danielle
Author-X-Name-Last: Guizzo
Title: Theoretical Practice and the Foundational Level of Macroeconomic Analysis: Reflections on the Work of Fernando Cardim de Carvalho
Abstract:
This paper celebrates the contributions to Keynesian theory of the late Brazilian economist Fernando Cardim de Carvalho (1953–2018). We use Carvalho’s 12 refereed English-language papers on Keynesian theory — the first published in 1983, the last in 2016 — as a point of departure for reflecting on two questions confronting macroeconomists today. First, what is the work of the economist — in what does economic analysis consist? Second, in this post-crisis era, how might macroeconomics — and specifically Keynesian macroeconomics — be rebuilt? Carvalho’s writings show that the work of the economist can be as much about understanding the raw elements of human behavior in the real world — what we will call the foundational level of analysis — as about constructing models depicting the momentum of economic systems incorporating these behaviors. Adopting this approach to the practice of theory leads to insights and frameworks that would be lost if macroeconomic theorizing were equated with formal model building: it will enrich exchanges among economists, deepen the conceptual roots of Post Keynesian macroeconomics, and facilitate interdisciplinary exchange.
Journal: Review of Political Economy
Pages: 511-528
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2020.1841369
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1841369
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:511-528
Template-Type: ReDIF-Article 1.0
Author-Name: Sebastien Charles
Author-X-Name-First: Sebastien
Author-X-Name-Last: Charles
Author-Name: Thomas Dallery
Author-X-Name-First: Thomas
Author-X-Name-Last: Dallery
Author-Name: Jonathan Marie
Author-X-Name-First: Jonathan
Author-X-Name-Last: Marie
Title: Teaching the Economic Impact of COVID-19 with a Simple Short-run Macro-model: Simultaneous Supply and Demand Shocks
Abstract:
This short note has one main ambition. It seeks to provide students with a very simple macroeconomic framework to deal with the short-term economic impact of the COVID-19 pandemic. The explanation for the unprecedented magnitude of the recession over a short span of time is to be found in the peculiar form of the shock due to the various lockdowns. Indeed, the 2020 crisis is specific in that it involved two recessive shocks simultaneously: a demand shock superimposed on a supply shock. This model is original in that although it is driven by demand it is capable of dealing with supply issues without entailing any additional technical difficulties.
Journal: Review of Political Economy
Pages: 462-479
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2021.1893045
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1893045
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:462-479
Template-Type: ReDIF-Article 1.0
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Author-Name: Mario Seccareccia
Author-X-Name-First: Mario
Author-X-Name-Last: Seccareccia
Title: What Have We Yet to Learn From the COVID-19 Crisis?
Journal: Review of Political Economy
Pages: 373-376
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2021.1899515
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1899515
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:373-376
Template-Type: ReDIF-Article 1.0
Author-Name: The Editors
Title: Correction
Journal: Review of Political Economy
Pages: i-ii
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2021.1920146
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1920146
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:i-ii
Template-Type: ReDIF-Article 1.0
Author-Name: Rosa Canelli
Author-X-Name-First: Rosa
Author-X-Name-Last: Canelli
Author-Name: Giuseppe Fontana
Author-X-Name-First: Giuseppe
Author-X-Name-Last: Fontana
Author-Name: Riccardo Realfonzo
Author-X-Name-First: Riccardo
Author-X-Name-Last: Realfonzo
Author-Name: Marco Veronese Passarella
Author-X-Name-First: Marco Veronese
Author-X-Name-Last: Passarella
Title: Are EU Policies Effective to Tackle the Covid-19 Crisis? The Case of Italy
Abstract:
In response to the economic crisis unleashed by the Covid-19 pandemic, the EU authorities have launched extraordinary fiscal and monetary measures in support of member states. The impact of these measures is of great significance for Italy, the EU third-largest economy, which as a result of the pandemic has suffered a dramatic decline in GDP, and a further rise in the government debt to GDP ratio. Building on a stock-flow consistent, structural macro-econometric model, this paper shows that the currently planned EU measures are insufficient to boost the recovery of the Italian economy, and to ensure the sustainability of its government debt. The paper also assesses two potential alternative policies. A fiscal consolidation (i.e. austerity) policy would exacerbate the decline in GDP and further deteriorate the government debt to GDP ratio. By contrast, a money-financed fiscal stimulus policy could lead the Italian economy on a path of sustainable growth, with positive outcomes for employment and government finances.
Journal: Review of Political Economy
Pages: 432-461
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2021.1876477
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1876477
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:432-461
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas R. Michl
Author-X-Name-First: Thomas R.
Author-X-Name-Last: Michl
Title: Notes on Covid-19, Potential GDP, and Hysteresis
Abstract:
This note provides a model framework for thinking about stabilization policies in the presence of hysteresis after a negative shock like the Covid-19 pandemic. Headline measures of the so-called potential GDP published by the Congressional Budget Office represent only one of many possible inflation-neutral trajectories for output. The term potential GDP is misleading since potential implies a unique limit on output. It is much more accurate to consider a range of possible trajectories or multiple equilibria. Repairing the damages from a shock will require overshooting the inflation target and running the economy above its inflation-neutral equilibrium in order to restore the status quo ante level of output and employment. The model assumes constant trend growth so that path dependence takes the form of pure output-level effects.
Journal: Review of Political Economy
Pages: 480-486
Issue: 3
Volume: 33
Year: 2021
Month: 07
X-DOI: 10.1080/09538259.2021.1911478
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1911478
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:3:p:480-486
Template-Type: ReDIF-Article 1.0
Author-Name: Valerio Filoso
Author-X-Name-First: Valerio
Author-X-Name-Last: Filoso
Author-Name: Carlo Panico
Author-X-Name-First: Carlo
Author-X-Name-Last: Panico
Author-Name: Erasmo Papagni
Author-X-Name-First: Erasmo
Author-X-Name-Last: Papagni
Author-Name: Francesco Purificato
Author-X-Name-First: Francesco
Author-X-Name-Last: Purificato
Author-Name: Marta Vázquez Suárez
Author-X-Name-First: Marta
Author-X-Name-Last: Vázquez Suárez
Title: Timing Does Matter: Institutional Flaws and the European Debt Crisis
Abstract:
Financial crises are complex phenomena. Yet, at the cost of some simplifications, the literature has identified two main elements causing the crises: macroeconomic imbalances and institutional design flaws. Economists recognise that both play some role, but disagree on their strength. Using Bai and Perron’s technique and an EGARCH model we contribute to the debate on the European debt crisis by identifying break dates and changes in volatility in daily values of 10-year public bond interest rates for Greece, Italy and Spain. The results are then related to key political and institutional events. The results of our econometric exercise uncover the following facts: the crisis began in May 2010; worsened after summer 2011, as the European authorities hastened to restructure the Greek debt; improved during summer 2012, when the ECB approved the OMTs, a new programme for the purchase of bonds. On the whole, the results are compatible with an interpretation of the crisis that considers the institutional flaws as the main cause.
Journal: Review of Political Economy
Pages: 769-792
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2020.1859717
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1859717
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:769-792
Template-Type: ReDIF-Article 1.0
Author-Name: Marco Missaglia
Author-X-Name-First: Marco
Author-X-Name-Last: Missaglia
Title: Understanding Dollarisation: A Keynesian/Kaleckian Perspective
Abstract:
What does ‘dollarisation’ mean in a world of endogenous money, i.e., in a world where money is not (only) created by printing pieces of paper, but (mainly) by making loans? Is it true that dollarisation only constitutes a limitation of sovereignty in the short run (making it harder to run standard stabilisation macro policies) or can it also slow a country’s growth process? To answer these questions, the paper builds a theoretical Keynesian-Kaleckian growth model for a dollarised economy within a framework of endogenous money. We will show that, ceteris paribus, the steady-state medium-term growth rate of a dollarised economy is lower than that of a country with its own currency. We will also show that a dollarised economy is more likely to be unstable than an economy with its own currency, in the specific sense that, everything else being equal, it is more likely for a dollarised economy to fall into a debt trap.
Journal: Review of Political Economy
Pages: 656-686
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2020.1869401
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1869401
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:656-686
Template-Type: ReDIF-Article 1.0
Author-Name: Mauro Boianovsky
Author-X-Name-First: Mauro
Author-X-Name-Last: Boianovsky
Title: Reacting to Samuelson: Early Development Economics and the Factor-Price Equalization Theorem
Abstract:
Paul Samuelson’s 1948 factor-price equalization theorem was his main contribution to international trade theory. He demonstrated conditions under which trade in goods would lead to full equalization of the remuneration of productive factors across countries. In practice, general factor-price equalization has not been a feature of the international economy, as Samuelson acknowledged. His theorem came out when development economics was starting to emerge as a new field of research and policy, largely based on observed international income asymmetries between poor and rich countries. The present paper provides an historical investigation into how development economists reacted mostly (but not always) critically to that theorem, with attention to the methodological issues involved and to Samuelson’s own perception of the theorem’s relevance.
Journal: Review of Political Economy
Pages: 631-655
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2020.1815969
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1815969
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:631-655
Template-Type: ReDIF-Article 1.0
Author-Name: Robert W. Dimand
Author-X-Name-First: Robert W.
Author-X-Name-Last: Dimand
Title: Keynes, Knight, and Fundamental Uncertainty: A Double Centenary 1921–2021
Abstract:
John Maynard Keynes’s Treatise on Probability (1921) and Frank Knight’s Risk, Uncertainty and Profit (1921) independently stressed the distinction between insurable risk and uninsurable fundamental uncertainty (in Knight’s terminology), inspiring two literatures that have engaged with each other only intermittently. I explore the relationship between what Keynes wrote about uncertainty in his Treatise and what Knight published the same year, and consider what contributions by Truman Bewley and by Kiyohiko Nishimura and Hiroyuki Ozaki on Knightian uncertainty and Knightian decision theory have to offer for furthering understanding of Keynes on uncertainty, particularly as suggesting a response to Alan Coddington’s critique of the risk/uncertainty distinction.
Journal: Review of Political Economy
Pages: 570-584
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2021.1924470
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1924470
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:570-584
Template-Type: ReDIF-Article 1.0
Author-Name: Erik Bengtsson
Author-X-Name-First: Erik
Author-X-Name-Last: Bengtsson
Author-Name: Engelbert Stockhammer
Author-X-Name-First: Engelbert
Author-X-Name-Last: Stockhammer
Title: Wages, Income Distribution and Economic Growth: Long-Run Perspectives in Scandinavia, 1900–2010
Abstract:
This article views analysis of the influence of capital–labour income distribution on economic growth from a historical perspective, using data from 1900 onwards. We study the three Scandinavian countries of Sweden, Denmark and Norway, where conventional accounts of the postwar growth miracles in these small, open economies have emphasized the role of wage restraint, favouring profits and investment over consumption. Instead, we show that the 1950s and 1960s saw growing wage shares, and use the Bhaduri–Marglin model to econometrically analyse the effects on consumption, investment, exports and imports and the total effects on GDP. Furthermore, we estimate the effects of wage pressure on labour productivity. Growing wage shares have had a small positive effect on GDP growth in Sweden, Denmark and Norway, and the positive effect was larger in the postwar period than in other times. However, the positive growth effects of wage pressure were modest as the demand was only weakly wage-led. In contrast, supply side effects were large. Labour productivity was stimulated by vigorous wage increases, as argued by the Swedish Rehn–Meidner model as well as by post-Keynesian economists. The present investigation opens several further avenues for research on the distribution–growth nexus.
Journal: Review of Political Economy
Pages: 725-745
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2020.1860307
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1860307
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:725-745
Template-Type: ReDIF-Article 1.0
Author-Name: Barry Eichengreen
Author-X-Name-First: Barry
Author-X-Name-Last: Eichengreen
Title: Bretton Woods After 50
Abstract:
This paper reviews the operation of the Bretton Woods international monetary system 50 years after the United States closed the Gold Window linking the dollar to gold in August 1971. It argues that Bretton Woods operated as successfully as it did owing to three special circumstances: low international capital mobility, tight financial regulation, and the dominant economic and financial position of the United States and the dollar. There can be no more straightforward an explanation for why nothing like Bretton Woods will be restored in the foreseeable future.
Journal: Review of Political Economy
Pages: 552-569
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2021.1952011
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1952011
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:552-569
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew B. Trigg
Author-X-Name-First: Andrew B.
Author-X-Name-Last: Trigg
Title: Reconstructing Marx’s Theory of Credit and Payment Crises under Simple Circulation
Abstract:
There is general agreement amongst scholars of Marx that his monetary theory is incomplete, especially in his most detailed writings on credit in the third volume of Capital. Moreover, in these unfinished notes Marx takes sides with the banking school approach, notable for its opacity compared to the clear axioms of its currency school counterpart. A reconstruction is proposed based on Marx’s step-by-step method, commencing with a critique of Say’s Law under simple commodity circulation, these foundations formalised here using the model of pure labour developed by Pasinetti (1993). Piecing together the fragments, and filling in some of the gaps in Marx’s writings on money, the analysis builds from commodity money and private debt contracts, to the modelling of pure credit and pure banking systems. Adapting the Pasinetti model of a real economy, its endogenous money requirements provide an alternative to the exogenous money approach of the currency school: a streamlined analytical core to the banking school approach, as interpreted by Marx. In addition, the structure of payment crises — as an extension of Marx’s possibility theory of crises — is examined with money as a means of payment required to settle debts between producers and the banking system.
Journal: Review of Political Economy
Pages: 746-768
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2021.1897751
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1897751
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:746-768
Template-Type: ReDIF-Article 1.0
Author-Name: Rod O’Donnell
Author-X-Name-First: Rod
Author-X-Name-Last: O’Donnell
Title: Keynes's Treatise on Probability: The First Century
Abstract:
On the centenary of the Treatise on Probability's publication, this paper explores six related topics: varieties of realism; Ramsey's critique; Keynes's response; radical uncertainty; the continuity/discontinuity question regarding Keynes's philosophy and economics; and the possibility of a non-Platonic interpretation of logical probability. Several new perspectives are presented.
Journal: Review of Political Economy
Pages: 585-610
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2021.1936926
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1936926
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:585-610
Template-Type: ReDIF-Article 1.0
Author-Name: Stefano Di Bucchianico
Author-X-Name-First: Stefano
Author-X-Name-Last: Di Bucchianico
Title: Negative Interest Rate Policy to Fight Secular Stagnation: Unfeasible, Ineffective, Irrelevant, or Inadequate?
Abstract:
This paper discusses three explanations for Secular Stagnation: Summers’s demand-side Secular Stagnation Theory, Palley’s Investment Saturation Hypothesis, and Gordon’s supply-side Secular Stagnation Theory. All three involve a judgement on the efficacy of a negative interest rate policy (NIRP) in tackling stagnation: according to the first it is unfeasible, according to the second it is ineffective (and even dangerous), and according to the third it is irrelevant. First, we argue that these theories face the fundamental difficulty constituted by the use of a (negative) natural (or equilibrium) rate of interest. We propose an original critique of the negative equilibrium rate of interest determined by the marginal efficiency of capital. Second, we claim that the negative interest rate policy is an inadequate tool to fight stagnation. While monitoring and fostering financial stability should be a fundamental role of monetary authorities, monetary policy is unable to stimulate growth, whereas fiscal policy is better suited to the task.
Journal: Review of Political Economy
Pages: 687-710
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2020.1837546
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1837546
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:687-710
Template-Type: ReDIF-Article 1.0
Author-Name: Theo Santini Antunes
Author-X-Name-First: Theo Santini
Author-X-Name-Last: Antunes
Author-Name: Ricardo Azevedo Araujo
Author-X-Name-First: Ricardo Azevedo
Author-X-Name-Last: Araujo
Title: A Structural Economic Dynamics Approach to ‘Stagnationist’ Unbalanced Growth
Abstract:
Our inquiry offers an analysis of ‘stagnationist’ unbalanced growth through making use of a Structural Economic Dynamic (SED) approach. What we intend to establish are some of the advantages associated with treating William Baumol’s unbalanced growth model as a particular case of Luigi Pasinetti’s framework. One such advantage involves challenging assumptions behind the model by scrutinising the conditions under which Baumol’s result is valid. Another advantage consists of extending the analysis to an arbitrary number of sectors to consider quasi-proportional growth and full dynamics – cases considered by Pasinetti. As suggested by Nicholas Oulton and drawing from the SED framework, we then expand the model to consider intermediate inputs, through using the concept of vertical integration. This leads us to confirm the remark advanced by Oulton; namely, that in the presence of intermediate goods, the aggregate growth rate of productivity might not slow down sufficiently to converge towards the lower productivity growth sector, as advocated by Baumol. In sum, the point we seek to establish is that the ‘stagnationist’ outcome depends on an intricate relation between supply and demand. The multi-sectoral approach that considers intermediate inputs suggests that a disaggregated analysis of well-established results can indeed offer novel insights.
Journal: Review of Political Economy
Pages: 611-630
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2020.1814543
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1814543
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:611-630
Template-Type: ReDIF-Article 1.0
Author-Name: Gregorio Vidal
Author-X-Name-First: Gregorio
Author-X-Name-Last: Vidal
Title: Recession, Financial Instability, Social Inequality and the Health Crisis
Abstract:
Advanced economies and several emerging market economies have had poor production growth for years. The problem has been address by economic and financial organizations. Faced with this, economic policies have been implemented to allow market mechanisms to operate and, to promote productive activity, including extraordinarily loose monetary policies. Central bank and government actions in the context of the pandemic are an extension of such previously applied policies. In the past, after the international financial crisis of 2008–9, these measures allowed banks to recover and for large companies to rely on significant profits. However, there was no significant growth in investment, let alone policies attempting to reduce social inequality. Such trajectories have gained strength during the pandemic.
Journal: Review of Political Economy
Pages: 711-724
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2021.1943933
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1943933
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:711-724
Template-Type: ReDIF-Article 1.0
Author-Name: Matías Vernengo
Author-X-Name-First: Matías
Author-X-Name-Last: Vernengo
Title: The Consolidation of Dollar Hegemony After the Collapse of Bretton Woods: Bringing Power Back in
Abstract:
Conventional views on the collapse of Bretton Woods suggest that it resulted from its own limitations. The inability of the United States to manage the system given the growing imbalances associated to the need of persistent current account deficits to provide liquidity in dollars, and the resulting inflationary pressures on the one hand, and the increasing disproportion of dollars and gold reserves, on the other, would bring about the end of the system. In other words, the Triffin Dilemma was ultimately correct, and the exorbitant privilege came with a high price tag. The limitations of the dominant view about Bretton Woods are discussed and it is argued that the end of Bretton Woods was a political decision that led to the consolidation of dollar hegemony. The limitations of the conventional view are ultimately tied to mainstream economics.
Journal: Review of Political Economy
Pages: 529-551
Issue: 4
Volume: 33
Year: 2021
Month: 10
X-DOI: 10.1080/09538259.2021.1950966
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1950966
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Handle: RePEc:taf:revpoe:v:33:y:2021:i:4:p:529-551
Template-Type: ReDIF-Article 1.0
Author-Name: Phil Armstrong
Author-X-Name-First: Phil
Author-X-Name-Last: Armstrong
Title: Why Minsky Matters: An Introduction to the Work of a Maverick Economist
Journal: Review of Political Economy
Pages: 181-184
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1912487
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912487
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:181-184
Template-Type: ReDIF-Article 1.0
Author-Name: Laurent Baronian
Author-X-Name-First: Laurent
Author-X-Name-Last: Baronian
Author-Name: Matari Pierre
Author-X-Name-First: Matari
Author-X-Name-Last: Pierre
Title: From Orchestra Conductor to Principal's Agent: How Internal Financialization of Top Management Has Enabled External Financialization of the Firm
Abstract:
This paper analyzes the evolution of internal management work within large corporations from the end of the nineteenth century to the late 1960s. It argues that internal financialization is the prior condition for external financialization, as expressed notably in the shareholder value that is the focus of most theoretical and empirical analyses of financialization of corporate governance. Starting from the twofold nature of management work, our analysis examines how top managers of large corporations have become progressively disassociated from the production process. Through an exploration of the history of business accounting, we show how the evolution of management work has progressively financialized the functions of top managers. One of our main conclusions is that the alliance between shareholders and top managers around the nature and purpose of the firm is the result of an endogenous process. Therefore, the origin of shareholder-value-based corporate governance not only has to be situated before the rise of institutional investors and financial liberalization in the 1970s, but must also be seen as an internal process setting the conditions for the emergence of this management model.
Journal: Review of Political Economy
Pages: 23-44
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2020.1869400
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1869400
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:23-44
Template-Type: ReDIF-Article 1.0
Author-Name: Rafael S. M. Ribeiro
Author-X-Name-First: Rafael S. M.
Author-X-Name-Last: Ribeiro
Author-Name: Stefan D’Amato
Author-X-Name-First: Stefan
Author-X-Name-Last: D’Amato
Author-Name: Wallace M. Pereira
Author-X-Name-First: Wallace M.
Author-X-Name-Last: Pereira
Title: The Inflation-Distribution Nexus: A Theoretical and Empirical Approach
Abstract:
There are two unconnected strands of the inflation-distribution literature, one that studies the impact of inflation on income distribution and the other the impact of distribution on inflation. This paper is an attempt to fill a gap in this literature, by taking into account the simultaneous determination between inflation and income distribution. We set forth a Post-Keynesian model in which inflation and income distribution are jointly determined in a dynamical system of difference equations. Then, we conducted an empirical investigation of the relationship between inflation and distribution using a Panel Vector Autoregressive (PVAR) model since this econometric technique is robust to reverse causality. Our findings corroborate our theoretical model by showing that increases in the wage share tend to exert a downward pressure in future inflation.
Journal: Review of Political Economy
Pages: 146-164
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1882195
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1882195
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:146-164
Template-Type: ReDIF-Article 1.0
Author-Name: Jacob Assa
Author-X-Name-First: Jacob
Author-X-Name-Last: Assa
Title: The Elgar Companion to John Maynard Keynes
Journal: Review of Political Economy
Pages: 184-187
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1912491
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912491
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:184-187
Template-Type: ReDIF-Article 1.0
Author-Name: Cristina Fróes de Borja Reis
Author-X-Name-First: Cristina Fróes de
Author-X-Name-Last: Borja Reis
Author-Name: José Paulo Guedes Pinto
Author-X-Name-First: José Paulo Guedes
Author-X-Name-Last: Pinto
Title: Center–periphery Relationships of Pharmaceutical Value Chains: A Critical Analysis based on Goods and Knowledge Trade Flows
Abstract:
This article provides new evidence on center–periphery relationships in the pharmaceutical value chains from the new-structuralist perspective. Our contribution examines the foreign insertion of countries into pharmaceutical value chains. It is based on extensive indicators, such as world trade in gross terms, production and employment structure, and also on intensive indicators, such as trade in value-added, price per kilo of pharmaceuticals imported and exported, pharmaceutical industry wage shares, and intellectual property rights’ flows. We show that pharmaceutical value chains are concentrated in regions, whose centers are basically the US in America and Switzerland and Germany in Europe. Moreover, there are several countries from the global peripheries that are weakly integrated into pharmaceutical value chains, such as Brazil, Russia, Saudi Arabia. Finally, some countries, such as Mexico, India, Hungary, Poland, and even China, have undergone a maquiladora process in their roles in the international division of labor: they have become large exporters of pharmaceuticals with low prices per kilogram and a high content of imported added value, paying low salaries and maintaining deficits in intellectual property rights’ charges.
Journal: Review of Political Economy
Pages: 124-145
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1882192
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1882192
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:124-145
Template-Type: ReDIF-Article 1.0
Author-Name: José A. Pérez-Montiel
Author-X-Name-First: José A.
Author-X-Name-Last: Pérez-Montiel
Author-Name: Riccardo Pariboni
Author-X-Name-First: Riccardo
Author-X-Name-Last: Pariboni
Title: Housing is NOT ONLY the Business Cycle: A Luxemburg-Kalecki External Market Empirical Investigation for the United States
Abstract:
We study the residential investment-economic activity nexus in the United States during the period 1960–2020. We find evidence of symmetric and asymmetric frequency-domain Granger causality running unidirectionally from residential investment (RES) to output. This unidirectional causal relationship is both permanent and transitory: transitory shocks in RES have transitory effects on GDP, while permanent shocks in RES have permanent effects on GDP. Our results validate the hypothesis of Fiebiger [2018. ‘Semi-Autonomous Household Expenditures as the Causa Causans of Postwar US Business Cycles: The Stability and Instability of Luxemburg-Type External Markets.’ Cambridge Journal of Economics 42 (1): 155–175] and Fiebiger and Lavoie [2019. ‘Trend and Business Cycles with External Markets: Non-Capacity Generating Semi-Autonomous Expenditures and Effective Demand.’ Metroeconomica 70 (2): 247–262], who state that housing investment in the US can be analogous to a Luxemburg-Kalecki external market. Our findings can also be read through the lenses of the recent autonomous demand-led growth literature. In particular, we single out a specific component of autonomous demand and describe its prominent role in the US variety of capitalism. Thus, we conclude that residential investment, despite constituting a small overall share of GDP, is not only the cycle but is also the trend of the US economy.
Journal: Review of Political Economy
Pages: 1-22
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2020.1859718
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1859718
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:1-22
Template-Type: ReDIF-Article 1.0
Author-Name: Rod O’Donnell
Author-X-Name-First: Rod
Author-X-Name-Last: O’Donnell
Title: Keynes and Smith, Opponents or Allies? Part I: Keynes on Smith
Abstract:
This paper is the first of a two-part investigation of a topic that has received little attention: the relationships between Keynes and Smith in economic theory and policy. Due to its wide scope and the need for careful discussion of primary sources, two papers are presented. Part I focuses on Keynes and examines all his remarks concerning Smith to address two central questions. Did Keynes classify Smith as a ‘classical economist’ and hence as an exponent of the views he rejected? And how was Smith, and the ‘invisible hand’, treated in Keynes’s writings from 1910 to 1946? The second paper focuses on Smith, and the parallels between the economic arguments of these master-economists.
Journal: Review of Political Economy
Pages: 69-92
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1882185
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1882185
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:69-92
Template-Type: ReDIF-Article 1.0
Author-Name: Marcella Corsi
Author-X-Name-First: Marcella
Author-X-Name-Last: Corsi
Title: The Age of Fragmentation / Gender Challenges
Journal: Review of Political Economy
Pages: 191-194
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1912493
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912493
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:191-194
Template-Type: ReDIF-Article 1.0
Author-Name: Jalal Qanas
Author-X-Name-First: Jalal
Author-X-Name-Last: Qanas
Author-Name: Hamid Raza
Author-X-Name-First: Hamid
Author-X-Name-Last: Raza
Title: Does Securitisation Make Monetary Policy Less Effective?
Abstract:
We re-examine the role of monetary policy and its transmission mechanism through the credit channel while focusing on securitisation. We empirically investigate the interactions between securitisation activities and monetary policy using data from 1995 to 2015 for a panel of 10 European countries. We employ a panel VAR model, and estimate it using a GMM system. Our findings indicate that a contractionary monetary policy shock immediately increases securitisation activities and decreases the growth rate of traditional (non-securitised) loans. The evidence supports the argument that merely raising interest rate is not sufficient to control credit booms, but, on the contrary, may induce credit intermediation, which in turn can increase system risk. Any modern central bank should re-examine and redefine its role as a ‘banker’s bank’ taking into consideration the future developments in shadow banking and financial innovation in order to ensure financial stability.
Journal: Review of Political Economy
Pages: 107-123
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1882190
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1882190
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:107-123
Template-Type: ReDIF-Article 1.0
Author-Name: Charles M. A. Clark
Author-X-Name-First: Charles M. A.
Author-X-Name-Last: Clark
Title: The Selected Letters of John Kenneth Galbraith
Journal: Review of Political Economy
Pages: 187-190
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1912492
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912492
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:187-190
Template-Type: ReDIF-Article 1.0
Author-Name: Güney Işıkara
Author-X-Name-First: Güney
Author-X-Name-Last: Işıkara
Author-Name: Patrick Mokre
Author-X-Name-First: Patrick
Author-X-Name-Last: Mokre
Title: Price-Value Deviations and the Labour Theory of Value: Evidence from 42 Countries, 2000–2017
Abstract:
The relationship between prices and labour values has been the source of fruitful controversy since the earliest Classical Political Economists. The alleged refutation of the labour theory of value was an integral part of the marginalist attack against Classical and Marxist analysis. However, statistical analysis of price-value relationships made possible by the data available since the later 20th century suggest considerable empirical strength of the labour theory of value. We trace the intellectual history of the price-value relationship and its inseparable link to capitalist competition through Smith, Ricardo, Marx and Sraffa. Following Shaikh and Ochoa, we present an empirical model of testing their hypotheses that (1) labour values regulate prices of production and (2) serve as gravitational centres for market prices. The analysis of a large dataset of 42 countries and 15 years reveal only small and stable deviations and thus lend support to the Classical Political Economic analysis. With a sample of over 36,000 price vectors, we provide the most comprehensive empirical application of its class and generalize the results that have been established in the relevant literature.
Journal: Review of Political Economy
Pages: 165-180
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1904648
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1904648
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:165-180
Template-Type: ReDIF-Article 1.0
Author-Name: J. E. King
Author-X-Name-First: J. E.
Author-X-Name-Last: King
Title: Keynes and Marx Reconsidered: The Case of Maurice Dobb
Abstract:
After an introduction outlining the issues at stake in the study of Dobb's intellectual relationship to Keynes, I begin with a (necessarily brief) account of Keynes's attitude towards Dobb. I then discuss the much more extensive evidence concerning Dobb's reaction to Keynes, published and unpublished, in three sections that terminate respectively with the death of Keynes (in 1946), with the writing of Dobb's autobiographical notes (in 1965), and with his own death (in 1977). A brief conclusion draws some inferences on what Dobb's career can tell us about the broader relationship between Marxian and Keynesian economics.
Journal: Review of Political Economy
Pages: 93-106
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2021.1882189
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1882189
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:93-106
Template-Type: ReDIF-Article 1.0
Author-Name: Peter Kriesler
Author-X-Name-First: Peter
Author-X-Name-Last: Kriesler
Title: Geoffrey Colin Harcourt
Journal: Review of Political Economy
Pages: 195-196
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2022.2026677
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2026677
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:195-196
Template-Type: ReDIF-Article 1.0
Author-Name: Andrew Mearman
Author-X-Name-First: Andrew
Author-X-Name-Last: Mearman
Author-Name: Sebastian Berger
Author-X-Name-First: Sebastian
Author-X-Name-Last: Berger
Author-Name: Danielle Guizzo
Author-X-Name-First: Danielle
Author-X-Name-Last: Guizzo
Title: How Different is Heterodox Economists’ Thinking on Teaching? A Contrastive Evaluation of Interview Data
Abstract:
This paper explores how differently heterodox and mainstream economists think about teaching. It draws on data from interviews with sixteen leading heterodox economists, which we analyse according to the principles of thematic analysis. We find considerable variety in heterodoxy. Further, we find evidence that suggests at least some heterodox economists share some elements with mainstream counterparts: on pedagogical practice, the role of their teachers, and scant explicit knowledge of educational philosophy. However, we discover different heterodox educational goals when compared to mainstream peers, mainly clustered around a concern for more radical open-mindedness and free-thinking. Also, some of our respondents showed a commitment to pluralism and critical approach to reality in teaching. Our interviews suggest that heterodox pedagogy is a reaction against and struggle within a uniquely hierarchical and monist discipline, pointing to the sociology and ideology of the economics profession as a shaping factor. We conclude that these characteristics make heterodox pedagogy better suited to foster understanding of complex real-world economic crises associated with global warming, pandemics, and financial meltdown.
Journal: Review of Political Economy
Pages: 45-68
Issue: 1
Volume: 34
Year: 2022
Month: 01
X-DOI: 10.1080/09538259.2020.1869402
File-URL: http://hdl.handle.net/10.1080/09538259.2020.1869402
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:1:p:45-68
Template-Type: ReDIF-Article 1.0
Author-Name: Wesley C. Marshall
Author-X-Name-First: Wesley C.
Author-X-Name-Last: Marshall
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: Understanding Full Investment and the Potential Role of Public Banks
Abstract:
In this paper, we argue that Keynes correctly diagnosed the principles of ‘sound finance' as limiting human progress, but did not map out a viable alternate solution of ‘full investment', and seems to even warn against it. E.F. Schumacher critiqued Keynes's position that until the problem of production is solved, only following ‘the money motive' could lead humanity out of the tunnel of economic need. Now a half century since Schumacher’s critiques, the production problem can be seen in a new light, and the debate surrounding the money motive can be reevaluated with greater context. We build upon the debate and the lessons of recent history, and within the context of other thinkers such as Veblen and Polanyi, to argue that the money motive does not need to be abandoned, but rather placed within a reformed institutional and monetary framework. We argue that full investment can only be properly addressed by shifting the overall objective of economic activity from production to human advancement. We conclude the paper by offering several considerations on why public banks are ideal institutions to shepherd a transformation of mentality into the creation of new markets and activities dedicated to human advancement.
Journal: Review of Political Economy
Pages: 340-355
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.2013633
File-URL: http://hdl.handle.net/10.1080/09538259.2021.2013633
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:340-355
Template-Type: ReDIF-Article 1.0
Author-Name: Régis Marodon
Author-X-Name-First: Régis
Author-X-Name-Last: Marodon
Title: Can Development Banks Step Up to the Challenge of Sustainable Development?
Abstract:
Public development banks (PDBs) — at sub-national, national, regional or international level — can cooperate and become central in the implementation of sustainable economic models. PDBs are over 500 globally. They are both providers of public funding and enablers to leverage private finance. PDBs need to acquire ‘sustainable development analytical tools’ to select operations on the basis of criteria other than purely financial ones. This paper explores why development banks can play a leading role. It proposes five recommendations for decision-makers: (1) Streamline into financing decisions the need to transition towards low-carbon and equitable economies. (2) Mobilise and encourage the private sector such that all stakeholders reach convergence on sustainable development. (3) Use development banks to channel funds for transition purposes into concrete projects, programmes consistent with international agreements signed by their governments. (4) Support emergence of a responsible demand, given that PDBs themselves are not originators of projects. (5) Build a global coalition of PDBs, to tackling global problems.
Journal: Review of Political Economy
Pages: 268-285
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1977542
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1977542
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:268-285
Template-Type: ReDIF-Article 1.0
Author-Name: Sergio Gusmão Suchodolski
Author-X-Name-First: Sergio Gusmão
Author-X-Name-Last: Suchodolski
Author-Name: Adauto Modesto Junior
Author-X-Name-First: Adauto
Author-X-Name-Last: Modesto Junior
Author-Name: Cinthia Helena de Oliveira Bechelaine
Author-X-Name-First: Cinthia Helena de Oliveira
Author-X-Name-Last: Bechelaine
Author-Name: Leila Maria Bedeschi Costa
Author-X-Name-First: Leila Maria Bedeschi
Author-X-Name-Last: Costa
Title: From Global to Local: Subnational Development Banks in the Era of Sustainable Development Goals
Abstract:
Financing the implementation of the seventeen Sustainable Development Goals (SDGs) has been a development challenge since the establishment of the 2030 Agenda — especially under the unequal circumstances imposed by COVID-19. This paper aims to better inform this debate by highlighting the nature of Subnational Development Banks (SDBs) in the context of sustainable finance and how they operate within development networks. To this end, the research method addresses a comparative study among countries that stand out for the number of subnational institutions in their development systems, Brazil and Vietnam. After comparing the Brazilian and Vietnamese particularities, we present concrete examples of SDBs working to connect local needs to the 2030 Agenda investments. As final conclusions, the study allows to demonstrate that, by being the last mile specialist on the ground, in different localities with particular backgrounds and contexts, SDBs could be available channels to international resources to address the financial needs of local firms and governments, improving both efficiency and effectiveness of development programs and funds. Highlighting the potential of SDBs, this analysis leaves possibilities for a future research agenda on more integrated national development finance systems focused on local impact.
Journal: Review of Political Economy
Pages: 318-339
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1977545
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1977545
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:318-339
Template-Type: ReDIF-Article 1.0
Author-Name: David M. Fields
Author-X-Name-First: David M.
Author-X-Name-Last: Fields
Title: The Deficit Myth, Modern Monetary Theory and the Birth of the People’s Economy
Journal: Review of Political Economy
Pages: 391-392
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1912494
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912494
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:391-392
Template-Type: ReDIF-Article 1.0
Author-Name: Stephany Griffith-Jones
Author-X-Name-First: Stephany
Author-X-Name-Last: Griffith-Jones
Author-Name: Shari Spiegel
Author-X-Name-First: Shari
Author-X-Name-Last: Spiegel
Author-Name: Jiajun Xu
Author-X-Name-First: Jiajun
Author-X-Name-Last: Xu
Author-Name: Marco Carreras
Author-X-Name-First: Marco
Author-X-Name-Last: Carreras
Author-Name: Natalya Naqvi
Author-X-Name-First: Natalya
Author-X-Name-Last: Naqvi
Title: Matching Risks with Instruments in Development Banks
Abstract:
This paper explores how development banks should deploy appropriate financial instruments to encourage real economic risk-taking while minimizing financial engineering risks. We distinguish real economic risks from financial engineering or intermediary risks and argue that using complex financial instruments to leverage additional private financing may undermine policy steer and lead to too much risk being taken by development banks. We then explore comparative advantages of different financial instruments such as loans, guarantees, equity, and insurance in tackling risks in normal times. Then we synthesize common features of development banks’ responses to the COVID-19 crisis. Finally, we propose future research directions.
Journal: Review of Political Economy
Pages: 197-223
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1978229
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1978229
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:197-223
Template-Type: ReDIF-Article 1.0
Author-Name: Thomas Marois
Author-X-Name-First: Thomas
Author-X-Name-Last: Marois
Title: A Dynamic Theory of Public Banks (and Why it Matters)
Abstract:
Public banks are pervasive, with more than 900 worldwide, and powerful, having assets nearing $49 trillion. Yet they are too often perceived as static financial institutions, based on economic theories that begin from fixed notions of what it is to be a publicly owned bank. This has given rise to polarized debate wherein public banks are characterized as being either essentially good or bad. This is unrealistic and unhelpful as we seek ways to confront the crises of finance and of climate finance. We need instead to rethink public banks as dynamic and contested institutions within the public spheres of states. In this view, public ownership itself predetermines nothing but it does open up a particular public realm of possibilities. Change becomes possible and is a result of social forces making it so, if within the structural confines of gendered, racialized, and class-divided capitalist society. A dynamic theory of public banks provides a novel theoretical alternative and a practical pathway towards financing green and just transitions in the public interest.
Journal: Review of Political Economy
Pages: 356-371
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1898110
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1898110
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:356-371
Template-Type: ReDIF-Article 1.0
Author-Name: Diana V. Barrowclough
Author-X-Name-First: Diana V.
Author-X-Name-Last: Barrowclough
Author-Name: Thomas Marois
Author-X-Name-First: Thomas
Author-X-Name-Last: Marois
Title: Public Banks, Public Purpose, and Early Actions in the Face of Covid-19
Abstract:
With the outbreak of the global Covid-19 pandemic and associated lockdowns, economic activity came to a grinding halt as demands for financial support in health, business, and government skyrocketed. In spring 2020 we assembled a team of experts to conduct rapid response research on how public banks worldwide responded to the Covid-19 crisis. The team employed case study methods to examine cases in the global north and south. A synthesis of our findings is presented here. We conclude that the most promising public bank responses to the crisis were those substantively guided by public purpose. Where public purpose had a more challenging relationship to public bank responses, the responses were more ambiguous and more difficult to differentiate from private banks. This rapid response study also points to promising lessons for how public banks can help to catalyse momentum to ‘build forward better’ and it raises a series of questions in need of further research.
Journal: Review of Political Economy
Pages: 372-390
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1996704
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1996704
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:372-390
Template-Type: ReDIF-Article 1.0
Author-Name: José Antonio Ocampo
Author-X-Name-First: José Antonio
Author-X-Name-Last: Ocampo
Author-Name: Victor Ortega
Author-X-Name-First: Victor
Author-X-Name-Last: Ortega
Title: The Global Development Banks’ Architecture
Abstract:
This paper looks at the role, evolution, and regional coverage of the system of multilateral and national development banks (MDBs and NDBs). It analyzes the roles that development banks should play to correct the market failures that characterize financial systems, particularly in emerging and developing countries. It concludes that MDBs should be capitalized to better support emerging and developing countries’ recovery after the COVID-19 crisis. They should also be aligned with the Sustainable Development Goals, and enhance their role in promoting innovation and structural transformation, and supporting climate change mitigation and adaptation. It underscores that the development banks should work as a system and that better networking between MDBs and NDBs is essential and should be systematically monitored. Finally, it points out that MDBs should support the development of strong NDBs in the regions where these institutions are underrepresented.
Journal: Review of Political Economy
Pages: 224-248
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1977543
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1977543
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:224-248
Template-Type: ReDIF-Article 1.0
Author-Name: Timothy Koechlin
Author-X-Name-First: Timothy
Author-X-Name-Last: Koechlin
Title: What is Heterodox Economics? Conversations with Leading Economists
Journal: Review of Political Economy
Pages: 392-396
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1912501
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912501
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:392-396
Template-Type: ReDIF-Article 1.0
Author-Name: Ricardo Gottschalk
Author-X-Name-First: Ricardo
Author-X-Name-Last: Gottschalk
Author-Name: Lavinia B. Castro
Author-X-Name-First: Lavinia B.
Author-X-Name-Last: Castro
Author-Name: Jiajun Xu
Author-X-Name-First: Jiajun
Author-X-Name-Last: Xu
Title: Should National Development Banks be Subject to Basel III?
Abstract:
We address the question: What are the potential impacts of Basel III capital framework for National Development Banks (NDBs) upon their ability to fulfil their developmental mandate? We compare three large NDBs’ experiences with Basel III implementation: Brazilian Development Bank, China Development Bank and Germany’s KfW. We find that the biggest constraint from Basel III comes less from its levels of comprehensiveness and complexity and more from tightening the levels of capital requirements and demanding better capital quality. The disincentive to the use of internal models and changes in the method for the calculation of operational risks may result in a substantial increase in required capital. Meanwhile, the new large exposure rule may dilute the banks’ focus on large, infrastructure projects; the high-risk weights for exposures to project finance and equity may hinder NDBs from using these financing modalities extensively to support large and complex projects and activities that involve innovation financing.
Journal: Review of Political Economy
Pages: 249-267
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1977541
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1977541
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:249-267
Template-Type: ReDIF-Article 1.0
Author-Name: Maria Alejandra Riaño
Author-X-Name-First: Maria Alejandra
Author-X-Name-Last: Riaño
Author-Name: Jihane Boutaybi
Author-X-Name-First: Jihane
Author-X-Name-Last: Boutaybi
Author-Name: Damien Barchiche
Author-X-Name-First: Damien
Author-X-Name-Last: Barchiche
Author-Name: Sébastien Treyer
Author-X-Name-First: Sébastien
Author-X-Name-Last: Treyer
Title: Scaling Up Public Development Banks’ Transformative Alignment with the 2030 Agenda for Sustainable Development
Abstract:
Public development banks (PDBs) can accelerate SDGs implementation, by coupling their leverage capacity with systemic and cross-cutting 2030 Agenda alignment practices that catalyse real transformations in their behaviours and investments. This new research assesses how PDBs — from different sizes and geographies — have interpreted and are including sustainable development priorities in their day-to-day discussions, processes and operations. It shows that most PDBs have the interest and willingness to take the necessary steps to mainstream SDG priorities into their strategies and operations. Nonetheless, findings suggest that both strategic and operational endeavours are at the early stages of alignment. Identified innovative practices by PDBs leading the way, should now be shared among their peers in a view of harmonisation and coherence, as a crucial prerequisite to a scaled-up alignment. As for governments, shareholders and other stakeholders, they should also contribute to this alignment endeavour by an enhanced political backing and support to PDBs.
Journal: Review of Political Economy
Pages: 286-317
Issue: 2
Volume: 34
Year: 2022
Month: 04
X-DOI: 10.1080/09538259.2021.1977544
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1977544
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:2:p:286-317
Template-Type: ReDIF-Article 1.0
Author-Name: Evangelos Bekiaris
Author-X-Name-First: Evangelos
Author-X-Name-Last: Bekiaris
Author-Name: Irene Daskalopoulou
Author-X-Name-First: Irene
Author-X-Name-Last: Daskalopoulou
Title: Satisfaction with Democracy and Social Capital: Multi-Level Model Evidence for the Pre- and Post-Crisis Era
Abstract:
We analyze the relationship between social capital and satisfaction with democracy (SWD) levels. We consider SWD to denote regime support and we operationalize social capital in two different ways so as to discern between individual (micro) and country (macro) level effects. At the individual level, we operationalize social capital as composed of trust (generalized and institutional), human values (altruism, equality, tolerance, humanitarianism), and participatory behavior (political engagement, associations, activism). At the country level, we control for the effect of national culture (power distance, development, masculinity, individualism) upon SWD levels. Individual level data are drawn from the European Social Survey (ESS) Rounds 4 (2008) and 8 (2016). The two periods of time have been chosen to allow for the analysis of the effects that the recent financial crisis has had upon the social capital and SWD relationship. Data on the macro level indicators are drawn from the UN. Our estimation procedures involve the application of multi-level model techniques. Robust evidence is provided of that individual and country level factors interact and shape respondents’ levels of SWD. The dynamic nature of this interaction is also verified in light of the evidence regarding the pre and post crisis periods.
Journal: Review of Political Economy
Pages: 468-503
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2021.1894807
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1894807
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:468-503
Template-Type: ReDIF-Article 1.0
Author-Name: Jesus Felipe
Author-X-Name-First: Jesus
Author-X-Name-Last: Felipe
Author-Name: Scott Fullwiler
Author-X-Name-First: Scott
Author-X-Name-Last: Fullwiler
Title: How ‘Monetization’ Really Works — Examples from Three Asian Nations’ Responses to Covid-19
Abstract:
The severe economic downturn caused by the COVID-19 pandemic has forced governments worldwide to increase spending while tax revenues simultaneously collapsed. Concurrent with this, central banks in several of these countries are financing a significant percent of their direct income support through direct lending or purchases of government bonds in primary and/or secondary markets. Many oppose this for their alleged negative consequences on the economy, inflation in particular. This paper describes the actual workings of what most people (including many economists) often call monetization of government debt and its major implication, namely, that it leads to printing money and, consequently, to inflation. We show that the reality is very different: once one knows how modern central banks manage monetary policy (i.e. through a corridor interest rate targeting system), and how they coordinate their daily operations with their Treasuries, monetization does not occur as it is often described, and it is not nearly as dangerous as its critics argue (and not as useful as its supporters claim). The examples of the Philippines, Singapore, and the People’s Republic of China clarify this.
Journal: Review of Political Economy
Pages: 397-419
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2021.1908777
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1908777
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:397-419
Template-Type: ReDIF-Article 1.0
Author-Name: Emilio Carnevali
Author-X-Name-First: Emilio
Author-X-Name-Last: Carnevali
Title: A New, Simple SFC Open Economy Framework
Abstract:
The paper presents a simple Stock-Flow Consistent open economy model with flexible exchange rates. It can reproduce the same dynamics and results of the flexible exchange rates ‘benchmark’ model by Godley and Lavoie [2007b. Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth. London, UK: Palgrave MacMillan]. The latter is considered the ‘centre of gravity’ of SFC open economy literature. Yet the new model uses only one-third of the equations of the original one and features a different mechanism of determination of the exchange rate. Its small size and its flexibility make the model suitable both for didactic purposes and for extensions with further building blocks to address a variety of research topics.
Journal: Review of Political Economy
Pages: 504-533
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2021.1899518
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1899518
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:504-533
Template-Type: ReDIF-Article 1.0
Author-Name: Bill Jefferies
Author-X-Name-First: Bill
Author-X-Name-Last: Jefferies
Title: How the World Works: The Story of Human Labor from Prehistory to the Modern Day
Journal: Review of Political Economy
Pages: 599-603
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2021.1912496
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912496
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:599-603
Template-Type: ReDIF-Article 1.0
Author-Name: Giorgos Galanis
Author-X-Name-First: Giorgos
Author-X-Name-Last: Galanis
Title: The Origins of Capitalism as a Social System: The Prevalence of an Aleatory Encounter
Journal: Review of Political Economy
Pages: 598-599
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2021.1912495
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912495
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:598-599
Template-Type: ReDIF-Article 1.0
Author-Name: Najib Khan
Author-X-Name-First: Najib
Author-X-Name-Last: Khan
Title: Does Inflation Targeting Really Promote Economic Growth?
Abstract:
Inflation targeting, as a monetary-policy framework, is said to promote economic growth. Yet, when evaluating the macroeconomic performance of inflation-targeting regime, the existing literature only emphasizes the dynamics of inflation and the costs associated with taming inflation. There is hardly any assessment of the growth claim. To fill the gap and to measure the causal impact of inflation-targeting adoption on economic growth, we compare the dynamics of output growth and long-term unemployment between countries that have adopted inflation targeting and the non-adopting countries. Our findings seem to refute the growth claim, and paint a bleak picture of inflation targeting: when compared to the countries that did not adopt inflation targeting, there is a significant reduction in the average growth rate among the inflation-targeting adopters by over ½ percentage point. Additionally, long-term unemployment significantly rises among the inflation-targeting countries by over 1½ percentage points as compared to the non-adopters. These results are robust to both the exclusion of the outlier observations and to the sensitivity tests recommended for such analysis.
Journal: Review of Political Economy
Pages: 564-584
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2021.1902165
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1902165
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:564-584
Template-Type: ReDIF-Article 1.0
Author-Name: Luis Mireles-Flores
Author-X-Name-First: Luis
Author-X-Name-Last: Mireles-Flores
Title: The Evidence for Free Trade and Its Background Assumptions: How Well-Established Causal Generalisations Can Be Useless for Policy
Abstract:
In this article, I offer a methodological analysis of the empirical research on the causal effects of trade liberalisation, and assess whether such studies can be of any use for guiding policy prescriptions in real-world economies. The analysis focuses on the mainstream economic research that has been used to support arguments in favour of trade liberalisation during the last decades. Even though there are empirical results that could be taken as valid evidence for a causal connection between free trade and economic gains, none of the existing evidence licences trustworthy inferences about the policy effectiveness of trade liberalisation reforms in real-world cases. There are three aspects of the empirical literature that make it highly problematic for making reliable policy inferences: (a) the criteria used to define the notion of ‘free trade’, (b) the background assumptions embedded in the econometric techniques used for estimating causal effects, and (c) the widespread desire among academic economists to attain scientific results in terms of universally valid generalisations. The analysis exposes a worrisome mismatch between, on the one hand, the research aims and outcomes of scientific economics and, on the other, the kind of evidence that would be useful for guiding actual policy deliberations.
Journal: Review of Political Economy
Pages: 534-563
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2021.1912484
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912484
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:534-563
Template-Type: ReDIF-Article 1.0
Author-Name: Matheus R. Grasselli
Author-X-Name-First: Matheus R.
Author-X-Name-Last: Grasselli
Title: Monetary Policy Responses to Covid-19: A Comparison with the 2008 Crisis and Implications for the Future of Central Banking
Abstract:
The policy responses of major central banks to the Covid-19 financial and economic crisis were faster, larger, and broader in scope than those in response to the 2008 global financial crisis. This article explains in detail the conventional and unconventional measures adopted by the U.S. Federal Reserve and reviews similar measures adopted by the Bank of England, the Bank of Canada, the European Central Bank and the Bank of Japan. Apart from lowering interest rates and acting as lenders of last resort to financial institutions, these central banks embraced large scale asset purchases as a core crisis fighting tool, with the corresponding expansion in balance sheet that they entail. The article connects this change in emphasis in central bank intervention to the normalization of shadow banking, or market-based financial intermediation, that happened between the two crises. Other extensions of the role of central banks made possible by the scope of the policy responses to Covid-19, including direct support to sectors beyond the financial industry, are also explored.
Journal: Review of Political Economy
Pages: 420-445
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2021.1908778
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1908778
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:420-445
Template-Type: ReDIF-Article 1.0
Author-Name: Rod O’Donnell
Author-X-Name-First: Rod
Author-X-Name-Last: O’Donnell
Title: Keynes and Smith, Opponents or Allies? Part II: Smith, and Keynes-Smith Parallels
Abstract:
In investigating Keynes–Smith relationships, this paper discusses Smith and the parallels between the mature contributions of these two philosopher-economists. It begins by carefully examining Smith’s economic theory and policy, summarising his core argument in a clarifying syllogism, and exploring his invisible hand remarks. It then turns to the largely unexplored parallels between their major economic works. In theoretical terms, their core arguments have similar structures and analytical characteristics. In policy terms, both proposed new institution-based systems serving individual and social interests, considerable socio-economic restructuring and non-minimalist roles for the state. The paper concludes with a syllogism summarising Keynes’s parallel position, and comparative comments on some recent analyses of Smith’s thought.
Journal: Review of Political Economy
Pages: 446-467
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2021.1882186
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1882186
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:446-467
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Author-Name: Riccardo Bellofiore
Author-X-Name-First: Riccardo
Author-X-Name-Last: Bellofiore
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Author-Name: Mario Seccareccia
Author-X-Name-First: Mario
Author-X-Name-Last: Seccareccia
Author-Name: Hassan Bougrine
Author-X-Name-First: Hassan
Author-X-Name-Last: Bougrine
Author-Name: Massimo Cingolani
Author-X-Name-First: Massimo
Author-X-Name-Last: Cingolani
Author-Name: Thomas Ferguson
Author-X-Name-First: Thomas
Author-X-Name-Last: Ferguson
Author-Name: James K. Galbraith
Author-X-Name-First: James K.
Author-X-Name-Last: Galbraith
Author-Name: Alicia Girón
Author-X-Name-First: Alicia
Author-X-Name-Last: Girón
Author-Name: Joseph Halevi
Author-X-Name-First: Joseph
Author-X-Name-Last: Halevi
Author-Name: Wesley Marshall
Author-X-Name-First: Wesley
Author-X-Name-Last: Marshall
Author-Name: Edward Nell
Author-X-Name-First: Edward
Author-X-Name-Last: Nell
Author-Name: John Smithin
Author-X-Name-First: John
Author-X-Name-Last: Smithin
Author-Name: Pavlina Tcherneva
Author-X-Name-First: Pavlina
Author-X-Name-Last: Tcherneva
Author-Name: Slim Thabet
Author-X-Name-First: Slim
Author-X-Name-Last: Thabet
Title: A Tribute to Alain Parguez 1940–2022
Journal: Review of Political Economy
Pages: 604-611
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2022.2076349
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2076349
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:3:p:604-611
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Author-Name: Lilia Costabile
Author-X-Name-First: Lilia
Author-X-Name-Last: Costabile
Title: Continuity and Change in the International Monetary System: The Dollar Standard and Capital Mobility
Abstract:
Addressing the issue of continuity and change in the international monetary system, this article makes two points. First, the dollar standard — as defined by Keynes — did not have to wait until the end of Bretton Woods to be born. It finds its roots in the 1920s and is still with us after a century. While most commentators content themselves with the statement that the dollar officially became fiat money in 1971–3, I make the less obvious point that, in substance, the transition occurred much earlier, and document the multiple monetary and intervention techniques used to maintain the dollar standard in existence. Second, as widely recognized, the main element differentiating Bretton Woods from its successor is the demise of capital controls. I argue that stability requires that some form of control is reintroduced, particularly if the international monetary system evolves in a multipolar direction.
Journal: Review of Political Economy
Pages: 585-597
Issue: 3
Volume: 34
Year: 2022
Month: 07
X-DOI: 10.1080/09538259.2022.2038438
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2038438
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# input file: CRPE_A_2040907_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Thomas I. Palley
Author-X-Name-First: Thomas I.
Author-X-Name-Last: Palley
Title: The Macroeconomics of Government Spending: Distinguishing Between Government Purchases, Government Production, and Job Guarantee Programs
Abstract:
This paper reconstructs the Keynesian income—expenditure (IE) model to include distinctions between government purchases of private sector output, government production, and government job guarantee program (JGP) employment. Analytically, including those distinctions transforms the model from a single sector model into a multi-sector model. It also surfaces the logic behind the automatic stabilizer property of JGP employment. The model is then extended to include Kaleckian income distribution effects which contribute to explaining why expenditure multipliers vary by type of fiscal expenditure. The Kaleckian version generates a new balanced budget multiplier driven by changed composition of government spending. It also illuminates some macroeconomic implications of privatization of government produced services.
Journal: Review of Political Economy
Pages: 692-708
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2022.2040907
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2040907
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:4:p:692-708
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# input file: CRPE_A_1912502_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Daniele Tori
Author-X-Name-First: Daniele
Author-X-Name-Last: Tori
Title: Democratizing the Economics Debate. Pluralism and Research Evaluation
Journal: Review of Political Economy
Pages: 807-810
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2021.1912502
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912502
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:4:p:807-810
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# input file: CRPE_A_1912504_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Ermanno C. Tortia
Author-X-Name-First: Ermanno C.
Author-X-Name-Last: Tortia
Title: Labour and Value: Rethinking Marx’s Theory of Exploitation
Journal: Review of Political Economy
Pages: 810-812
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2021.1912504
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912504
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:4:p:810-812
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# input file: CRPE_A_2096799_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Ivan Moscati
Author-X-Name-First: Ivan
Author-X-Name-Last: Moscati
Author-Name: Paolo Paesani
Author-X-Name-First: Paolo
Author-X-Name-Last: Paesani
Author-Name: Antonella Stirati
Author-X-Name-First: Antonella
Author-X-Name-Last: Stirati
Title: Introduction
Journal: Review of Political Economy
Pages: 613-614
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2022.2096799
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2096799
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# input file: CRPE_A_1897750_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Christine Ngoc Ngo
Author-X-Name-First: Christine
Author-X-Name-Last: Ngoc Ngo
Author-Name: Marco R. Di Tommaso
Author-X-Name-First: Marco R.
Author-X-Name-Last: Di Tommaso
Author-Name: Mattia Tassinari
Author-X-Name-First: Mattia
Author-X-Name-Last: Tassinari
Author-Name: John Marcus Dockerty
Author-X-Name-First: John Marcus
Author-X-Name-Last: Dockerty
Title: The Future of Work: Conceptual Considerations and a New Analytical Approach for the Political Economy
Abstract:
This paper investigates the changing nature of quality employment in the United States, considering the social and economic consequences of neoliberal policies on the quality and availability of good jobs. Neoliberalism and its policies have profoundly influenced the American economy and impaired the socioeconomic landscape. Access to quality employment is a critical component of the future of work, as it shapes worker identities and empowers them to meet household needs. Quality employment can curb rising inequality, reduce job polarization, close urban-rural divides, and halt the corrosion of trust in American social democracy. This paper proposes a new conceptual and analytical approach to evaluating trends and structural changes in quality employment across American industries. The analytical framework involves a composite indicator — the Quality Employment Index (QEI) — that measures industries’ capacity to offer quality employment relative to one another. We use the QEI to rank fifteen American manufacturing industries from 2001 to 2018, and evaluate them in the context of the U.S. political economy.
Journal: Review of Political Economy
Pages: 735-765
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2021.1897750
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1897750
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# input file: CRPE_A_2096285_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Bruna Ingrao
Author-X-Name-First: Bruna
Author-X-Name-Last: Ingrao
Author-Name: Francesco Ruggeri
Author-X-Name-First: Francesco
Author-X-Name-Last: Ruggeri
Author-Name: Claudio Sardoni
Author-X-Name-First: Claudio
Author-X-Name-Last: Sardoni
Title: Are Shadow Moneys Money Proper? A Critical Discussion from the Perspective of the History of Monetary Theory
Abstract:
We address the issue of whether some financial instruments produced by financial innovation, like the so-called shadow moneys, can be regarded as proper money. This is done by examining some past contributions (by Menger, Jevons, Keynes and Hicks) on the nature of money and its fundamental properties. We argue that the most satisfactory contributions come from Hicks, who holds that the essential function of money is to be the economy’s standard of value. On these grounds, we conclude that shadow moneys cannot be regarded as money in a proper sense. Neither are they the economy’s standard of value nor are they a universally accepted means of payment. Their function as a liquid store of value is not sufficient for them to be qualified as money.
Journal: Review of Political Economy
Pages: 647-664
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2022.2096285
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2096285
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# input file: CRPE_A_1987088_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Sheila Dow
Author-X-Name-First: Sheila
Author-X-Name-Last: Dow
Title: Alfred Marshall, Evolutionary Economics and Climate Change
Abstract:
The way in which any topic is analysed in economics depends on methodological approach. The purpose here is to explore the argument that the way in which climate change is addressed depends on how economics is understood to relate to the physical environment and also to the social and ethical environment. This involves an exploration of the formation of knowledge, both in economics and in the economy. Alfred Marshall’s evolutionary approach to knowledge formation was central to his approach to economics and to his understanding of economic behaviour. Here, we consider the application of Marshall’s approach to issues around climate change, through the lens of the subsequent development of evolutionary economics and ecological economics.
Journal: Review of Political Economy
Pages: 615-632
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2021.1987088
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1987088
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# input file: CRPE_A_2096284_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Maxime Desmarais-Tremblay
Author-X-Name-First: Maxime
Author-X-Name-Last: Desmarais-Tremblay
Author-Name: Aleksandar Stojanović
Author-X-Name-First: Aleksandar
Author-X-Name-Last: Stojanović
Title: Framing Institutional Choice, 1937–1973: New Institutional Economics and the Neglect of the Commons
Abstract:
Progressives the world over cherish high hopes in the development of institutions for collective actions. Among these institutions, commons have a long history in western Europe. While a new institutional economics emerged in the 1960s, commons were not taken seriously in postwar economics before the seminal work of Elinor Ostrom in the late 1980s. How can we explain this belated integration of commons in economics? In this paper, we trace some of the origins of the neoclassical comparative institutional analysis. By advocating an institutional comparison in terms of the costs or the value of production under alternative allocations of property rights, Ronald Coase contributed to the narrow theoretical approach taken by new institutional economists. In the late 1960s, neoclassical economists who came to be interested in environmental questions dismissed commons as inefficient solutions to allocation problems. Within this narrow framework, the private enterprise system more often than not was hailed as the best alternative.
Journal: Review of Political Economy
Pages: 665-691
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2022.2096284
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2096284
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Handle: RePEc:taf:revpoe:v:34:y:2022:i:4:p:665-691
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# input file: CRPE_A_1993001_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Gabriel Montes-Rojas
Author-X-Name-First: Gabriel
Author-X-Name-Last: Montes-Rojas
Author-Name: Fernando Toledo
Author-X-Name-First: Fernando
Author-X-Name-Last: Toledo
Title: External Shocks and Inflationary Pressures in Argentina: A Post-Keynesian-Structuralist Empirical Approach
Abstract:
We examine two external shocks that trigger inflationary pressures in Argentina. The first corresponds to a shock in international prices of agricultural commodities exported by this country. The second external shock affects the nominal exchange rate ($/U$S). Through the estimation of a quarterly VAR with directional quantiles model for the 2004–2019 period, we show how the pass-through from these external shocks to the inflation rate operates asymmetrically and mainly through increments in nominal wages. We estimate that an external shock in the international agricultural commodities prices exported by Argentina engenders a pass-through of 10 per cent, vis-à-vis a shock in the nominal exchange rate with a pass-through of 25 per cent. We explain these results highlighting the relevance of the class struggle as a key inflationary transmission mechanism, in line with Post-Keynesian-Structuralist conflicting claims models of inflation. These empirical results pose significant challenges for economic policy design, particularly pondering the adoption of measures that aim to decouple the potentially disruptive effects of these external shocks on inflationary pressures in Argentina.
Journal: Review of Political Economy
Pages: 789-806
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2021.1993001
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1993001
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# input file: CRPE_A_1964768_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Rod O’Donnell
Author-X-Name-First: Rod
Author-X-Name-Last: O’Donnell
Title: General Theory-Special Case Relationships: Keynes and Neoclassicism
Abstract:
In economic theory, methodology and philosophy, general theory-special case relationships are rarely investigated. In 1936, Keynes challenged orthodoxy with the claim that his general theory embraced orthodoxy as a special case. Orthodoxy counter-claimed that its theory was the only general theory within which Keynes’s could only be a special case. This paper explores the important issues behind the dispute in three parts. Part A examines the conceptual and methodological foundations of the opposing claims, finding that each side deploys a different model of these relationships. Part B explores all of Keynes’s theoretical works and finds that his 1936 model underpins all his theoretical work in philosophy and economics. Part C concludes with methodological reflections on the conceptual foundations of the dispute.
Journal: Review of Political Economy
Pages: 709-734
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2021.1964768
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1964768
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# input file: CRPE_A_1920715_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Ramesh Chandra
Author-X-Name-First: Ramesh
Author-X-Name-Last: Chandra
Title: Allyn Young on Henry George and the Single Tax
Abstract:
Henry George, though not the originator of the idea of the single tax, succeeded in popularising it to a wide audience. His scientific rigour in Progress and Poverty was questioned by both Alfred Marshall and Allyn Young. With progress neither poverty nor the decline in real wages was inevitable. Young agreed with Marshall that although the overall supply of land was fixed, it was relatively elastic for any particular use even within agriculture. Once it is recognised that land has competing uses, the opportunity cost principle becomes operative. Young largely discounted the notion of ‘unearned increment’ on several grounds including the fact that buying and holding land being like any other business, its increments were as much earned as any other, and therefore confiscatory taxation was largely unjustified.
Journal: Review of Political Economy
Pages: 766-788
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2021.1920715
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1920715
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# input file: CRPE_A_2092996_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188
Author-Name: Marc Lavoie
Author-X-Name-First: Marc
Author-X-Name-Last: Lavoie
Title: MMT, Sovereign Currencies and the Eurozone
Abstract:
This paper is an answer to the question: What is new, what is good and what is relevant for Eurozone countries in Modern Monetary Theory (MMT)? The answer is organized under six questions: (1) What is MMT? (2) What is the definition of a sovereign currency — an important concept for MMT authors? (3) Does the institutional setup play any role in assessing monetary sovereignty? (4) Is the euro a foreign currency for eurozone countries, that is, are eurozone countries currency users or currency issuers? (5) Why could there be a eurozone financial crisis and was it a balance-of-payment crisis, as a number of authors have claimed? (6) And as a conclusion, what is the future of the Eurozone? It is argued that MMT is part of the Institutionalist branch of post-Keynesian economics; that the current definition of a sovereign currency is insufficient; that the Eurozone crisis arose from the combination of Maastricht-like rules and the convention that the European Central Bank would not act as a purchaser of last resort; and that this crisis can only be taken to be a balance-of-payment crisis when considering that bond investors thought some countries would leave the Eurozone and face currency depreciation.
Journal: Review of Political Economy
Pages: 633-646
Issue: 4
Volume: 34
Year: 2022
Month: 10
X-DOI: 10.1080/09538259.2022.2092996
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2092996
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# input file: CRPE_A_2069366_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Stefano Lucarelli
Author-X-Name-First: Stefano
Author-X-Name-Last: Lucarelli
Title: The Euro Crisis. An Institutionalist Approach
Journal: Review of Political Economy
Pages: 362-364
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2069366
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2069366
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:362-364
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# input file: CRPE_A_2104027_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Ashwani Saith
Author-X-Name-First: Ashwani
Author-X-Name-Last: Saith
Title: The Cambridge Journal of Economics – A Forum of One’s Own
Abstract:
This article explores the emergence of the Cambridge Journal of Economics, highlighting its strengths but also some tensions discernible at its advent. From 1912, Economic Journal, the disciplinary gold standard, was published under Cambridge editorial control: first, by Keynes himself, then through successive long-serving panels of Cambridge heterodox economists. The first significant success of the locally enacted, externally inspired, neoclassical campaign to displace heterodox traditions in Cambridge economics was the relocation of Economic Journal to Oxford in 1976; comprehensive neoclassical domination in the Faculty was enforced in the following decades. The launch of the Cambridge Journal of Economics in 1977 was a definitive marker in the survival and subsequent evolution of heterodox economics, not least because it was published from Cambridge, the undisputed original habitat of modern heterodox economics. The initiative was catalyzed by the apprehension of a prescient group of Cambridge young Turks that heterodox, left-oriented research would henceforth be excluded from Economic Journal. Notwithstanding the subsequent purges of all non-mainstream traditions from the Cambridge Faculty of Economics, the new theoretically and policy-oriented journal has flourished as an open, integrating forum linking diverse strands of post-Keynesian and heterodox economics and economists globally, but also notably within Cambridge itself.
Journal: Review of Political Economy
Pages: 28-49
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2104027
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2104027
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# input file: CRPE_A_2063512_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Heinrich Bortis
Author-X-Name-First: Heinrich
Author-X-Name-Last: Bortis
Title: Classical-Keynesian Political Economy, not Neoclassical Economics, is the Economic Theory of the Future
Abstract:
This article implies that the time is ripe for a new paradigm in economic theory comprising classical (Ricardian) and Keynesian elements of analysis. The central Section Five presents the basic equations of classical-Keynesian political economy, the price and the quantity equation, based on three constitutive principles: the classical labour value and surplus principles and the Keynesian principle of effective demand. Subsequently, two employment mechanisms implied in the super-multiplier relation, the classical-Keynesian quantity equation, are mentioned, the internal and the external employment mechanism. Section Seven provides an analysis of the actual situation on the basis of the external employment mechanism, associated with cumulative processes of increasing disequilibria and inequalities. Given this, it ought to be replaced by the internal employment mechanism, allowing for Keynesian employment and distribution policies (Section Eight). However, the internal mechanism can only be implemented if a new world economic order is brought about, based upon a supranational currency, that is, Keynes's bancor, to ensure balance of current account equilibria worldwide. Section Ten sets forth Keynes's social liberalism, the social philosophy underlying classical-Keynesian political economy, the fundamental social ethical value of which is the Common Good. Social Liberalism thus emerges as the alternative to Capitalism and Socialism.
Journal: Review of Political Economy
Pages: 65-97
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2063512
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2063512
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:65-97
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# input file: CRPE_A_1920716_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: John Marangos
Author-X-Name-First: John
Author-X-Name-Last: Marangos
Title: A Marxist Political Economy Retort to the ‘After the Washington Consensus'
Abstract:
The dominance of the ‘After the Washington Consensus’ for international development is based on mainstream-neoclassical economics that has been imposed by Washington upon debt-stranded developing and developed countries. Against this tide, the purpose of this paper is to develop an alternative scheme and recommendations for international development, pulling from the Marxist political economy practice. Considering, Marxist political economy as a living tradition, the paper contributes to offering a Marxist political economy perspective to international development in the form of a retort to the ‘After the Washington Consensus’. ‘After the Washington Consensus’ represents an evolution from the Washington Consensus, due to the need for capital to adapt to new forms of exploitation. Students and scholars of international development would benefit from this worthwhile exercise that distinguishes in a succinctly and methodically manner between mainstream-neoclassical and Marxist political economy perspectives on international development. The paper concludes that in contradistinction, a Marxist political economy approach to international development that serves the interests of the working class does not have any commonalities with the ‘After the Washington Consensus’ that serves the interests of international capital.
Journal: Review of Political Economy
Pages: 231-262
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2021.1920716
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1920716
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# input file: CRPE_A_2091335_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: On the Theoretical and Institutional Roots of Post-Keynesian Economics
Abstract:
This article explores both the institutional and theoretical roots of post-Keynesian economics, treated separately. I argue that while there seems to be two accounts of the institutional roots, each emphasize a different narrative and can be reconciled. As for the theoretical roots, I argue that ‘everything started with the Accumulation of Capital’ — Joan Robinson’s so-called Magnum Opus. The book contains all the elements of what characterizes post-Keynesian economics today.
Journal: Review of Political Economy
Pages: 6-27
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2091335
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2091335
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# input file: CRPE_A_2061848_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sheila Dow
Author-X-Name-First: Sheila
Author-X-Name-Last: Dow
Title: Political Economy as a Methodological Approach
Abstract:
The term ‘political economy’ has been, and still is, applied in a variety of ways. The case is made here for understanding it in terms of a common philosophical/methodological approach to economics. It can therefore encompass a range of bodies of theory that apply some form of open-system approach. The sociological dimension is also considered with respect to the relative power of different approaches within the discipline. The scope for enhancing the influence of the political economy approach is analysed in Kuhnian terms, requiring attention to the establishment of a credible alternative to the mainstream and to facilitating the transition to such an alternative, including the reform of economics education. This strategy reflects an application at a range of levels of the pluralism of the political economy approach.
Journal: Review of Political Economy
Pages: 98-110
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2061848
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2061848
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# input file: CRPE_A_2063515_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Frank Stilwell
Author-X-Name-First: Frank
Author-X-Name-Last: Stilwell
Title: The Future for Political Economy: Towards Unity in Diversity?
Abstract:
The future for political economists depends not only on their engagement in intellectual critique and the provision of alternatives to mainstream economics: it also requires attention to vision, strategy, and organisation. Each of these aspects is explored in this article, with the overall aim of developing a systematic approach to advancing political economy during the next few decades. It posits a shared commitment to pluralism as the key to increasing unity among political economists. It also emphasises the importance of the material conditions that shape opportunities for political economists to have broader influence.
Journal: Review of Political Economy
Pages: 189-210
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2063515
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2063515
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# input file: CRPE_A_2079812_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: André Orléan
Author-X-Name-First: André
Author-X-Name-Last: Orléan
Title: Value and Money as Social Power: New Concepts for Old Questions
Abstract:
The individualistic methodology that largely dominates economic thought is incapable of thinking of social facts as anything other than the aggregation of individual facts. In so doing, it ignores the powerful sui generis forces that emanate from the social sphere itself and that shape individual behaviour and subjectivity. Moral, aesthetic, and religious values are the paradigmatic illustration of this. But economic value is also a force of this nature. It cannot be identified with a substance, be it utility or labour. This new perspective provides the economist with new tools for thinking about what a monetary community is. In so doing, it lays the foundations for a renewed dialogue with the social sciences in general and sociology in particular.
Journal: Review of Political Economy
Pages: 174-188
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2079812
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2079812
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# input file: CRPE_A_2139482_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: Review of Political Economy at 35
Journal: Review of Political Economy
Pages: 1-5
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2139482
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2139482
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# input file: CRPE_A_1921357_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Mark Setterfield
Author-X-Name-First: Mark
Author-X-Name-Last: Setterfield
Title: Whatever Happened to the ‘Goodwin Pattern’? Profit Squeeze Dynamics in the Modern American Labour Market
Abstract:
The ‘Goodwin pattern’ — an anti-clockwise rotation in real activity × wage share space recurring at intervals that correspond roughly to the duration of business cycles — is an enduring feature of high-frequency dynamics in capitalist economies. It is well known that the centre or focus of this rotation shifts over time. More recently, however, the Goodwin pattern seems to have broken down, the wage share no longer increasing as the real economy improves over the course of short-term booms. In this paper, the apparent breakdown of the Goodwin pattern is associated with the consolidation of an ‘incomes policy based on fear’ that is part-and-parcel of neoliberalism. As a result of this incomes policy based on fear, the institutional structure of the labour market disciplines labour at any rate of unemployment. This decouples wage-share dynamics from the state of the real economy, with the result that as recently witnessed in the US, the wage share is rendered invariant to improvements in economic performance over the course of short-term cyclical booms.
Journal: Review of Political Economy
Pages: 263-286
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2021.1921357
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1921357
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# input file: CRPE_A_2069365_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Andrea Carrera
Author-X-Name-First: Andrea
Author-X-Name-Last: Carrera
Title: An Introduction to Macroeconomics. A Heterodox Approach to Economic Analysis
Journal: Review of Political Economy
Pages: 359-361
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2069365
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2069365
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:359-361
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# input file: CRPE_A_2146379_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Nancy Folbre
Author-X-Name-First: Nancy
Author-X-Name-Last: Folbre
Title: Telling Fortunes: Feminist Theory and the Future of Political Economy
Abstract:
Feminist political economy is not just about inequalities based on gender and sexuality. It reaches for new ways of thinking about individual agency and social structure, and challenges traditional definitions of exploitation and economic crisis. In this essay, a bit of intellectual history generates a rather optimistic vision of what could become a more creative, expansive, and pluralistic discipline.
Journal: Review of Political Economy
Pages: 129-144
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2023.2146379
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2146379
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:129-144
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# input file: CRPE_A_2069364_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Fernando Toledo
Author-X-Name-First: Fernando
Author-X-Name-Last: Toledo
Title: Emerging Economies and the Global Financial System: Post-Keynesian Analysis
Journal: Review of Political Economy
Pages: 358-359
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2069364
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2069364
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:358-359
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# input file: CRPE_A_2134650_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Snehashish Bhattacharya
Author-X-Name-First: Snehashish
Author-X-Name-Last: Bhattacharya
Author-Name: Surbhi Kesar
Author-X-Name-First: Surbhi
Author-X-Name-Last: Kesar
Author-Name: Sahil Mehra
Author-X-Name-First: Sahil
Author-X-Name-Last: Mehra
Title: Exclusion, Surplus Population, and the Labour Question in Postcolonial Capitalism: Future Directions in Political Economy of Development
Abstract:
In this expository essay, we argue for building a fresh research programme in the political economy of development to analytically investigate and empirically substantiate the specificities of postcolonial capitalism. A key theoretical framework developed through the work of Kalyan Sanyal may be built upon, reformulated and productively deployed for this purpose. We provide a purposive engagement with this framework, its critiques, and the extant literature that develops it further. Some illustrations based on the agricultural and non-agricultural informal economies in India are provided to highlight the significance of this framework in examining the contemporary processes of capitalist development in the global South. The informal segments are marked by a persistence and reproduction of large swathes of non-capitalist economic spaces that are majorly structured around the logic of satisfying consumption needs, without discernible tendencies towards a classical pattern of capitalist transition. These spaces act as holding grounds of the population that is excluded from the capitalist growth poles of the economy and are often rendered as an undesired excess (as a surplus population) for the process of capitalist reproduction. Such a framework may also provide a compelling theoretical structure to interrogate the vast economic and political changes in the global landscape in the current conjuncture, and their implications for labour.
Journal: Review of Political Economy
Pages: 145-173
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2134650
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2134650
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# input file: CRPE_A_2030583_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: The Editors
Title: Correction
Journal: Review of Political Economy
Pages: I-I
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2030583
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2030583
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# input file: CRPE_A_1939939_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Arthur B. Cordeiro
Author-X-Name-First: Arthur B.
Author-X-Name-Last: Cordeiro
Author-Name: João P. Romero
Author-X-Name-First: João P.
Author-X-Name-Last: Romero
Title: Reconciling Supply and Demand: New Evidence on the Adjustment Mechanisms between Actual and Potential Growth Rates
Abstract:
This paper contributes to the debate surrounding supply-oriented and demand-oriented growth theories. By investigating the link between changes in the rate of resource utilization, the volume of imports and the growth of productivity, it aims at providing a better understanding of the mechanisms that reconcile supply and demand in the long-term. The results point to a demand determination of economic growth, with the burden of adjustment falling over the potential rate of growth. Increases in the rate of resource utilization seem to have a positive effect on productivity and no effect on the volume of imports.
Journal: Review of Political Economy
Pages: 334-355
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2021.1939939
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1939939
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:334-355
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# input file: CRPE_A_2063514_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: David Dequech
Author-X-Name-First: David
Author-X-Name-Last: Dequech
Title: Political Economy and Its Future: Conceptual and Institutional Issues
Abstract:
This article begins by identifying different ways of conceptualizing political economy. In light of this conceptual discussion, it looks at political economy from an institutional perspective, in two different senses. First, paying special attention to the distinction between mainstream and nonmainstream in economics and in other disciplines, it considers the institutions of contemporary political economy, i.e., the rules of behaviour and of thought that are socially shared among one or more groups of academics involved with political economy. It argues that there are good institutional and intellectual reasons to strategically promote further interdisciplinary integration between various approaches in nonmainstream economics and in the mainstream of other disciplines. Second, the article examines institutions in political economy, i.e., institutions in the reality outside academia that are relevant for political economy. Institutional issues in political economy are highlighted here not only because they are relevant and ubiquitous outside academia, but also because they are especially promising as subject matters about which that much needed interdisciplinary integration of approaches in political economy can occur.
Journal: Review of Political Economy
Pages: 111-128
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2063514
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2063514
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:111-128
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# input file: CRPE_A_1923282_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Thomas Herndon
Author-X-Name-First: Thomas
Author-X-Name-Last: Herndon
Title: Punishment or Forgiveness? Loan Modifications in Private Label Residential Mortgage-Backed Securities from 2008 to 2014
Abstract:
I estimate the extent to which modifications of privately securitized mortgages increased or forgave debt during the Great Recession and aftermath, from 2008 to 2014. I find that loan modifications weakened household balance sheets by adding $20 billion to household debt, with the net amount of debt added per modification doubling from 2010 to 2014. I also find that the increase in debt is consistent with capitalization of fees, but not missed interest payments. Capitalization of fees is significant because it has been associated with a principal-agent problem between investors and mortgage servicers preventing efficient loss mitigation, as well as consumer financial protection abuses.
Journal: Review of Political Economy
Pages: 287-315
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2021.1923282
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1923282
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:287-315
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# input file: CRPE_A_1928334_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Franklin Obeng-Odoom
Author-X-Name-First: Franklin
Author-X-Name-Last: Obeng-Odoom
Title: Rethinking Development Economics: Problems and Prospects of Georgist Political Economy
Abstract:
Development economics must be rethought. Not only has it hindered the liberation of the Global South, it has also deflected attention from the most critical questions of underdevelopment. Much economics inspires dirty growth, while Western political economy risks defending recolonisation under the guise of protecting nature in the Global South. Most alternative development theorising is similarly Western-centric. Georgist political economy is a possible exception. The systems of land economics Georgist political economy offers is functional and adaptable, often reflecting and supporting ancient knowledge of the earth, facilitating the decolonisation of society, economy, and ecology. The challenge is how to bring about this transformation when many interests potentially run counter to this non-Western alternative development economics.
Journal: Review of Political Economy
Pages: 316-333
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2021.1928334
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1928334
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:316-333
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# input file: CRPE_A_1912508_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Cristóbal Villalobos
Author-X-Name-First: Cristóbal
Author-X-Name-Last: Villalobos
Title: Capital and Ideology
Journal: Review of Political Economy
Pages: 356-357
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2021.1912508
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1912508
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# input file: CRPE_A_2130656_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Shaun P. Hargreaves Heap
Author-X-Name-First: Shaun P.
Author-X-Name-Last: Hargreaves Heap
Title: Towards a Post-Keynesian Welfare Economics: 35 Years Later
Abstract:
I re-visit the two arguments in my original paper, published in this journal in 1989. Pleasingly (but perhaps suspiciously) I have no reason to challenge them, but the insights that have come from behavioural economics over the intervening 35 years provide important new sources of support for both. The insights with respect to endogenous preferences add weight to the first argument for why collective/social choice is important (i.e., why welfare economics matters). In the second argument over the specific egalitarian flavour of post-Keynesian welfare proposals, I now fine tune this suggestion with the aid of behavioural insights so as to focus on the egalitarian character of the rules (and not the outcomes in society).
Journal: Review of Political Economy
Pages: 50-64
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2022.2130656
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2130656
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# input file: CRPE_A_1943159_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949
Author-Name: Sylvio Antonio Kappes
Author-X-Name-First: Sylvio Antonio
Author-X-Name-Last: Kappes
Title: Monetary Policy and Personal Income Distribution: A Survey of the Empirical Literature
Abstract:
The purpose of this paper is to conduct a survey of the recent literature that evaluates, in an empirical way, the distributional impacts of monetary policy. In the first two sessions, we discuss, respectively, the transmission channels of monetary policy to income distribution and the empirical strategies used to measure it. The majority of surveyed papers find that a contractionary monetary policy worsen the income distribution, and that an expansionist policy tends to improve it. Moreover, several papers found that the higher is the redistributive impact of fiscal policy, the lower is the impact of monetary policy on inequality. Another outcome with empirical support is the role of the labor share on total income: the higher is this share, the higher is the impact of monetary policy on inequality. The last point discussed is the asymmetric effects of contractionary and expansionary monetary policy. There is evidence that increases in interest rates have statistically significant effects on income distribution, whereas the effects of reductions in interest rates are not statistically different from zero. This empirical finding goes against the conventional view that the distributional effects of interest rate changes are temporary and likely to net out over the business cycle.
Journal: Review of Political Economy
Pages: 211-230
Issue: 1
Volume: 35
Year: 2023
Month: 01
X-DOI: 10.1080/09538259.2021.1943159
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1943159
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:1:p:211-230
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# input file: CRPE_A_2100590_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Carlo Cristiano
Author-X-Name-First: Carlo
Author-X-Name-Last: Cristiano
Title: Money and Empire as a Contribution to the Literature on Keynes. A Problem of Interpretation
Abstract:
John Maynard Keynes is frequently mentioned in Money and Empire, where he stands out for his book on the Indian gold exchange standard and his highly informative and perceptive account of the crisis of 1914. Based on de Cecco's book, one may be induced to think that, before WWI, Keynes was an economist deeply involved in the public life of his country and the administration of the Empire. However, this contrasts with the young economist's image that has crystallised in the literature on Keynes. In the attempt to solve this contradiction, it is possible to show that the conventional image of the young Keynes is far from satisfactory. Moreover, even though Money and Empire is not altogether reliable in presenting Keynes's ideas, this old book by Marcello de Cecco may still have a significant contribution to give in the literature on Keynes.
Journal: Review of Political Economy
Pages: 383-393
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2100590
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2100590
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:2:p:383-393
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# input file: CRPE_A_2100591_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sunanda Sen
Author-X-Name-First: Sunanda
Author-X-Name-Last: Sen
Title: Could Britain Continue with the Gold Standard in Absence of Colonial India?
Abstract:
This paper dwells on the account, provided by de Cecco, of the functioning of the international gold standard, as steered by Great Britain. The arrangement relied on a few institutional aspects dealing with the acquisition and disposal of gold by Britain, not only as units of transactions but also to facilitate profitable investments overseas. India had a major role in providing gold flows, as political tributes, to meet the ‘Home Charges’ in the ruling country. Nationalist arguments in India on the ‘drain’ were centred on the legitimacy of using taxes in India to meet the overseas expenditure in Sterling. Further sources of financial transfers, were not recognised by the nationalists. This paper provides an outline of the multiple channels of transfers used to expropriate gold from India. Those routes include India's trade surpluses; ‘expenditure abroad’ as earmarked in the domestic budget; currency reserves; and the camouflaging of unproductive debts by Britain to justify the interest payments under Home Charges. This is a new interpretation of the mode and the magnitude of financial expropriations by Britain, supplementing the ‘Drain of Wealth’ narrative. The paper ends comparing the colonial expropriations from India and the subordinate finance in the neo-colonies under contemporary capitalism.
Journal: Review of Political Economy
Pages: 407-420
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2100591
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2100591
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# input file: CRPE_A_2099660_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Alfredo Gigliobianco
Author-X-Name-First: Alfredo
Author-X-Name-Last: Gigliobianco
Title: The Impact of Money and Empire on Economic and Historical Literature
Abstract:
De Cecco touched upon several themes: the actual working of the Gold standard; the history of British monetary policy and financial system; the power structure that underlay the organization of the world economy before WWI. De Cecco explored these themes with his habitual clever combination of economic theory, history and awareness of the political and institutional dimension of economic problems. The paper, by the editor of the new Italian edition, assesses the impact of the book on the literature.
Journal: Review of Political Economy
Pages: 367-373
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2099660
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2099660
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# input file: CRPE_A_2099663_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paolo Paesani
Author-X-Name-First: Paolo
Author-X-Name-Last: Paesani
Title: De Cecco on Financial Centres, Monetary Power and Crisis
Abstract:
Attention to power structures pervades Money and Empire, with its focus on the hierarchy of financial centres and peripheries. Starting with Money and Empire and moving on from there, this paper explores how de Cecco addressed key questions on monetary sovereignty, power structures in international monetary relations and the changing shape of currency domains and relations. A thorough understanding of these issues requires an approach to the history of money and finance in the best tradition of International Political Economy, which combines attention to cross-country heterogeneity, conflicts of interest, financial structures and networks, and path-dependency.
Journal: Review of Political Economy
Pages: 421-433
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2099663
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2099663
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# input file: CRPE_A_2099665_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Annalisa Rosselli
Author-X-Name-First: Annalisa
Author-X-Name-Last: Rosselli
Title: The Myth of the Monetary Belle Époque
Abstract:
The gist of Money and Empire by Marcello de Cecco consists in showing how discretional policy decisions, rather than automatic adjustment operating through the price-specie-flow mechanism, guaranteed the orderly functioning of the Gold Standard. The decades before WWI, often regarded as the heyday of the Gold Standard, were in fact the years of its decline. The paper argues that, in addition to its important contribution to the reconstruction of the actual functioning of the Gold Standard, Money and Empire prompts two reflections. The first is on the general argument of the book that all monetary systems must be studied by looking at the power relations underlying them, money being a social construct. The second concerns the use made by de Cecco of both economic facts and economic theories and his reconstruction of their reciprocal influence. Re-reading Money and Empire invites thus to reflect on the complex relations between economic theory, economic history and the history of economic ideas, fields where de Cecco moved at ease.
Journal: Review of Political Economy
Pages: 374-382
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2099665
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2099665
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# input file: CRPE_A_1945192_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Joëlle Leclaire
Author-X-Name-First: Joëlle
Author-X-Name-Last: Leclaire
Title: Does Household Debt Matter to Financial Fragility?
Abstract:
Minsky, the father of the financial instability hypothesis was concerned with how instability in business sector balance sheets could contribute to overall financial instability. Minsky did not consider the household balance to be important, and until 1990 taking that perspective was not problematic. However, as the level of household net wealth increased significantly through the 1990s, the household sector became an important player in the financial sector balances game. This article analyzes the role of household debt in economic growth from the post-Keynesian approach. We find that household debt does matter to financial stability. It influences the consumption levels of households, the rate of return on mortgage and other debt held by banks and other financial institutions, the rate of return on the production of goods and services, and the overall well-being of households in our economy. The issue of household debt can be tackled from two sides. From the income side, creating a work environment favorable to unions and a job guarantee program would help. From the expenditure side, providing Medicare, childcare, eldercare, higher education, and potentially housing, would remove the reasons why household acquire sometimes unsustainable debt.
Journal: Review of Political Economy
Pages: 434-453
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2021.1945192
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1945192
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# input file: CRPE_A_1947659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Edouard Cottin-Euziol
Author-X-Name-First: Edouard
Author-X-Name-Last: Cottin-Euziol
Author-Name: Nicolas Piluso
Author-X-Name-First: Nicolas
Author-X-Name-Last: Piluso
Title: Stock-Flow Consistent Model with Repayment of Bank Loans Used to Finance Past Investments
Abstract:
Stock-flow consistent modelling (SFC) is currently one of the most active fields of research in post-Keynesian macroeconomics. SFC models make it possible to study the dynamics of a monetary economy of production within a consistent accounting framework. However, with some rare exceptions, SFC models do not take into account the repayment of bank loans used to finance business investments. It is assumed that these investments are financed by perpetual loans or by constant turnover. In this article, we reject this assumption and build a model based on recent studies, in which firms repay part of their past debt in each period. We then study the dynamics of this model. The results obtained indicate that the dynamics of an SFC model is significantly affected by taking these repayments into account.
Journal: Review of Political Economy
Pages: 454-475
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2021.1947659
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1947659
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# input file: CRPE_A_2069367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Richard P. F. Holt
Author-X-Name-First: Richard P. F.
Author-X-Name-Last: Holt
Title: Herman Daly’s Economics for a Full World: His Life and Ideas
Journal: Review of Political Economy
Pages: 572-574
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2069367
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2069367
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# input file: CRPE_A_2178153_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Nadia Garbellini
Author-X-Name-First: Nadia
Author-X-Name-Last: Garbellini
Title: Luigi Pasinetti 1930–2023
Journal: Review of Political Economy
Pages: 582-585
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2023.2178153
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2178153
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# input file: CRPE_A_1959197_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Giovanni Carnazza
Author-X-Name-First: Giovanni
Author-X-Name-Last: Carnazza
Author-Name: Claudia Fontanari
Author-X-Name-First: Claudia
Author-X-Name-Last: Fontanari
Author-Name: Paolo Liberati
Author-X-Name-First: Paolo
Author-X-Name-Last: Liberati
Author-Name: Antonella Palumbo
Author-X-Name-First: Antonella
Author-X-Name-Last: Palumbo
Title: From Potential GDP to Structural Balance: A Theoretical Reassessment and New Evidence for Italy
Abstract:
Since the Maastricht Treaty, increasingly complex fiscal rules have been progressively introduced aimed at closely regulating and deeply affecting the budgetary policies of all signatory countries. One of the main reforms, enacted since 2005, has been to interpret national budget balances in structural terms, forcing each member state to comply with a Medium-Term Objective (MTO) based on the general principle of a zero-structural budget balance. Starting from the standard European Commission methodology for calculating the structural budget, our paper shows that, by replacing the estimate of the potential output based on the NAWRU with a different notion and measure of potential output, the results in terms of fiscal policy space are significantly different. This outcome points out the distinct possibility that the actual fiscal policies of the member states of the EU may be driven and constrained by a measure that seriously limits their flexibility by several percentage points. While our empirical calculations refer to Italy, the point we address is general and relates to all member states, particularly those that in the past have been forced to restrictive policies while in recession.
Journal: Review of Political Economy
Pages: 510-540
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2021.1959197
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1959197
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# input file: CRPE_A_2040906_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jane Ihrig
Author-X-Name-First: Jane
Author-X-Name-Last: Ihrig
Author-Name: Gretchen Weinbach
Author-X-Name-First: Gretchen
Author-X-Name-Last: Weinbach
Author-Name: Scott Wolla
Author-X-Name-First: Scott
Author-X-Name-Last: Wolla
Title: How are Banks and the Fed Linked? Teaching Key Concepts Today
Abstract:
This article walks through the roles of banks and the Federal Reserve (the Fed) in the financial system and describes the key linkages between the two, using current concepts. Because many introductory economics textbooks are not up-to-date on key concepts, we highlight two crucial mistakes often taught in the classroom: (1) using an outdated description of Fed operations that rely on open market operations instead of focusing on the Fed’s administered interest rates, and (2) relying on the money multiplier equation, which broke down over time and is now no longer definable. We provide recommendations for the key themes that should be part of a current introductory economics curriculum and note many resources that are available for instructors seeking to update their materials.
Journal: Review of Political Economy
Pages: 555-571
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2040906
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2040906
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# input file: CRPE_A_2069369_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paolo Paesani
Author-X-Name-First: Paolo
Author-X-Name-Last: Paesani
Title: Franco Modigliani and Keynesian Economics: Theory, Facts and Policy
Journal: Review of Political Economy
Pages: 576-581
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2069369
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2069369
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# input file: CRPE_A_1951476_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Federica Nalli
Author-X-Name-First: Federica
Author-X-Name-Last: Nalli
Author-Name: Paolo Santori
Author-X-Name-First: Paolo
Author-X-Name-Last: Santori
Title: The Economic Principle of Political Liberalism: A Comparison of Rawls and Sugden
Abstract:
In his 2018 book, The Community of Advantage, economist Robert Sugden sets out his Principle of Mutual Benefit. This paper investigates the role that Sugden’s principle occupies in Rawls’ Political Liberalism. Would it be chosen by contracting parties in the Original Position and with what implications? We firstly show the potential complementarities of Rawls’ and Sugden’s approaches, integrating them in a broad philosophical framework. Second, we describe three scenarios in which Sugden’s principle could be integrated into Rawls’s system– (1) as a second order principle of the Difference Principle, (2) as a replacement of the whole Second Principle, or (3) as a substitute for the Difference Principle. We test each hypothesis through Rawls’s artificial device of the Original Position. We suggest that the Principle of Mutual Benefit can be understood as a substitute for the Difference Principle, reaffirming the importance of social justice in guaranteeing the stability of a market society.
Journal: Review of Political Economy
Pages: 476-493
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2021.1951476
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1951476
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# input file: CRPE_A_1967017_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mark S. Silverman
Author-X-Name-First: Mark S.
Author-X-Name-Last: Silverman
Title: Conceptions of the Natural and the Social in Walras's Economic Thought
Abstract:
Neoclassical economics is sometimes said to overlook the institutional character of markets, treating them as ‘natural.’ I address whether this criticism applies to Léon Walras. Walras's position is complex. Walras insists that market institutions are ‘artificial’ and that a purely naturalistic view of them reduces persons to mere things. However, he simultaneously characterizes market laws as natural. Specifically, he argues that exchange value is natural because it is determined by the natural property of scarcity. This argument is wanting: scarcity as defined by Walras is not exclusively natural, and, by Walras's own logic, only accounts for exchange value given the non-natural institution of the market. I suggest that Walras's attempts to give exchange value a natural foundation can be understood as a form of commodity fetishism. I further suggest two complementary explanations for this fetishism. First, Walras infers exchange value's naturalness from its autonomy with respect to individual agents in a competitive market. Second, he assumes that the use of the natural sciences as a formal model implies that the market has some natural cause. I additionally discuss his Baconian view of economics as an example of naturalistic reasoning.
Journal: Review of Political Economy
Pages: 541-554
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2021.1967017
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1967017
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# input file: CRPE_A_2099659_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ghislain Deleplace
Author-X-Name-First: Ghislain
Author-X-Name-Last: Deleplace
Title: Power Relations and Monetary Ideas: The Case of the Gold-Exchange Standard in India
Abstract:
For de Cecco power relations are central in the working of the pre-WWI international gold standard. He gives an illustration of that in the chapter of Money and Empire devoted to the relationship between Britain and India, where the gold-exchange standard is presented as a way for Britain to get hold of India’s trade surplus with the rest of the world in order to balance her own international accounts. On the contrary, Keynes praised the Indian gold-exchange standard as a system which not only allowed stabilising India’s relations with the outside world but also pointed the way to a better-regulated monetary system for any country, in the line of Ricardo’s Ingot Plan nearly one century older. The same notion may thus be seen alternatively as a powerful tool of domination or as a good practical idea. The paper describes how Lindsay adapted Ricardo’s scheme to India and contrasts de Cecco’s and Keynes’s interpretations of the Indian gold-exchange standard, before suggesting that monetary ideas can prevail in their own right when they are theoretically well-founded and practically feasible, independently of the power relations they may reflect.
Journal: Review of Political Economy
Pages: 394-406
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2099659
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2099659
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# input file: CRPE_A_1984737_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: The Editors
Title: Correction
Journal: Review of Political Economy
Pages: i-i
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2021.1984737
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1984737
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# input file: CRPE_A_2069368_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Henrique Morrone
Author-X-Name-First: Henrique
Author-X-Name-Last: Morrone
Title: Raising Keynes: A Twenty-First-Century General Theory
Journal: Review of Political Economy
Pages: 574-576
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2069368
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2069368
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# input file: CRPE_A_1958540_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Helena Lopes
Author-X-Name-First: Helena
Author-X-Name-Last: Lopes
Title: The Centrality of Work: A Foundation for Political Economy
Abstract:
Building on Alfred Marshall's claim that political economy should be a science of activities rather than a science of wants, the paper proposes to ground political economy on the centrality of work. Work is central in three different senses: (i) factual — work plays a central role in human lives and societies; (ii) epistemic — giving work center stage has constitutive theoretical effects; (iii) political — work is a primary tool of and for the transformation of society. Grounding political economy on work entails prioritizing economic agents as workers/producers over economic agents as consumers and acknowledging that changes in the world of work are major drivers of history. This contrasts with mainstream economics, which has always overlooked the activity of work, giving priority to consumer sovereignty and treating work as if it were a commodity. We propose a concept of work, based on Dejours’ approach, that highlights the key role of work organization in making work a source of fulfillment versus suffering. The arguments and concepts proposed lead to advocating the participation of workers in firm governance.
Journal: Review of Political Economy
Pages: 494-509
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2021.1958540
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1958540
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# input file: CRPE_A_2099661_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Paolo Paesani
Author-X-Name-First: Paolo
Author-X-Name-Last: Paesani
Title: Money and Empire at 50: A symposium
Journal: Review of Political Economy
Pages: 365-366
Issue: 2
Volume: 35
Year: 2023
Month: 04
X-DOI: 10.1080/09538259.2022.2099661
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2099661
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# input file: CRPE_A_2183674_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jacqueline Strenio
Author-X-Name-First: Jacqueline
Author-X-Name-Last: Strenio
Title: Diversifying the ‘Great Economists’: An Assignment to Promote Inclusivity and Belongingness in Introductory Economics Courses
Abstract:
In this paper, I present an innovative assignment designed to promote inclusivity and belongingness in the undergraduate economics classroom while also allowing students to gain familiarity with prominent economists and understand how their economic contributions are embedded within social, historical, and political contexts. Students are asked to create a presentation in which they give a biography of a ‘Great Economist,’ explain in detail one of the economist’s major contributions, and relate that concept to current course content, the economist’s life, and their own lives. To diversify who is considered a great economist, I have students choose from a pre-set list of economists and associated contributions. Purposefully curating a list of economists allows for the representation of a wide range of pluralistic and mainstream economic perspectives in addition to social identities and lived experiences, which students discover through their research. The assignment is structured to promote significant learning following Fink’s Taxonomy of Significant Learning and informed by key principles of feminist and critical pedagogy. I provide an instructional overview of the project, including recommendations for implementation in a face-to-face or online learning environment, considerations for crafting a list of economists, and end with observations from my own experiences.
Journal: Review of Political Economy
Pages: 650-665
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2023.2183674
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2183674
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# input file: CRPE_A_2150438_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ricardo Summa
Author-X-Name-First: Ricardo
Author-X-Name-Last: Summa
Author-Name: Lídia Brochier
Author-X-Name-First: Lídia
Author-X-Name-Last: Brochier
Title: Demand-led Growth, Conflict Inflation and Distribution: Institutional and Sectoral Specificities and Applications to Advanced and Developing Economies
Abstract:
We introduce the symposium with papers presented at the 3rd Workshop on Demand-led Growth. It gathers six contributions on autonomous demand, capacity utilization, conflict inflation and income distribution. It advances the research of previous editions of the Workshop by going deeper into (i) institutional and sectoral features; (ii) the application of demand-led growth and conflict-claims models to the analysis of concrete historical experiences in advanced and developing economies.
Journal: Review of Political Economy
Pages: 666-669
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2150438
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2150438
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:3:p:666-669
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# input file: CRPE_A_2149922_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guilherme Haluska
Author-X-Name-First: Guilherme
Author-X-Name-Last: Haluska
Title: Industrial and Overall Economy Data on Capacity Utilization for the US Economy: A Note
Abstract:
This paper is motivated by the debate about the decline in the degree of capacity utilization in the US economy observed since the begin of the 2000s. Its purpose is to check if capacity utilization calculated by the Fed for the industrial sector can be tracked by a Supermultiplier model estimated with data for the whole economy. The model tracks well the actual series of induced investment share, induced investment and stock of capital of the whole economy, but not the degree of capacity utilization when compared with capacity utilization from the industry. We investigate the possible causes of this divergence. We show that (i) there are some discrepancies between the trend of the actual data on stock of capital and the productive capacity that is used to calculate the capacity utilization of the industrial sector, and (ii) since 2000, industrial production has been growing slower than GDP. This could help to explain the discrepancies between capacity utilization of the entire economy and of the industrial sector, suggesting that this demand shock suffered by the industrial sector, combined with a slow mechanism of adjustment of capacity to demand, is one possible explanation for the observed decline in utilization rates.
Journal: Review of Political Economy
Pages: 720-737
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2149922
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2149922
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# input file: CRPE_A_2183672_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hannah Lina Gartner
Author-X-Name-First: Hannah Lina
Author-X-Name-Last: Gartner
Author-Name: Alyssa Schneebaum
Author-X-Name-First: Alyssa
Author-X-Name-Last: Schneebaum
Title: An Analysis of Women’s Underrepresentation in Undergraduate Economics
Abstract:
This paper is the first to give a comprehensive overview of the various conditions that deter women from pursuing an economics major and that contribute to the low numbers of female students in undergraduate economics. Explanations for women’s underrepresentation in undergraduate economics include a lack of female role models and mentors; misperceptions and misinformation about the discipline; the social climate in economics (classes); the scarcity of same-gender peers; women’s relatively high grade-sensitivity; the stereotype threat that makes women doubt their academic performance; women’s (alleged or actual) discomfort with the math-heaviness associated with an economics major; economics’ relatively high use of abstract and theoretical models; and women’s belief that the subject matter does not relate to their own life experiences and interests. An important contribution of the paper is its review of interventions that have proven successful in attracting and retaining female students to the discipline of economics. The paper thus unravels the underlying structural mechanisms associated with female students refraining from pursuing a degree in economics and offers a review of innovative measures that have been shown to help economics practice greater gender inclusivity at the undergraduate level.
Journal: Review of Political Economy
Pages: 593-613
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2023.2183672
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2183672
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:3:p:593-613
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# input file: CRPE_A_2149921_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ramiro E. Alvarez
Author-X-Name-First: Ramiro E.
Author-X-Name-Last: Alvarez
Author-Name: Ariel Dvoskin
Author-X-Name-First: Ariel
Author-X-Name-Last: Dvoskin
Title: On Income Distribution Dynamics in Argentina During the 1976–1983 Dictatorship: A Classical-Structuralist Interpretation
Abstract:
The long-lasting, distributive changes in Argentina during the 1970s have been extensively studied from different theoretical perspectives. What has not yet been sufficiently examined, however, are the reasons behind the non-monotonic trends observed on income distribution during this period and, in particular, under the dictatorial regime (1976–83). To fill this gap, we have developed a model inspired in the modern Classical-Structuralist approach to income distribution. We argue that the irregular trend of the real wage reveals that only a partial correspondence exists between the class interests of the 1976 coup and the effects on income distribution of the successive economic programs implemented by the dictatorship.
Journal: Review of Political Economy
Pages: 738-761
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2149921
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2149921
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# input file: CRPE_A_1977540_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gabriel Brondino
Author-X-Name-First: Gabriel
Author-X-Name-Last: Brondino
Title: Fragmentation of Production, Comparative Advantage, and the Heckscher-Ohlin Theory
Abstract:
This article analyses the so-called trade-in-tasks models based upon the Heckscher-Ohlin theory recently developed to explain the process of fragmentation. These models continue to rely on comparative advantage to determine trade patterns. The notion of comparative advantage rests on the basic assumption that countries trade only finished goods whose production is domestically integrated. However, since fragmentation implies an increasing trade in intermediate and capital goods and domestic disintegration of production, it does not seem easy to see how comparative advantage continues to work. We identify two crucial assumptions behind these models that allow the principle to work: first, there is a strict distinction between intermediate and finished goods; second, intermediate inputs do not enter the production of themselves. One could relax these assumptions and consider circular production instead. Even so, we identify a third assumption: the neglect of payment of an interest rate over the value of inputs advanced in production. We relax this assumption and consider international capital mobility to show that comparative advantage fails to predict the trade pattern. Therefore, the Heckscher-Ohlin theory is incompetent to explain fragmentation and modern trade patterns.
Journal: Review of Political Economy
Pages: 803-822
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2021.1977540
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1977540
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# input file: CRPE_A_2069371_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Danielle Guizzo
Author-X-Name-First: Danielle
Author-X-Name-Last: Guizzo
Title: Macroeconomics: An Introduction
Journal: Review of Political Economy
Pages: 908-911
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2069371
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2069371
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# input file: CRPE_A_2184043_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Melanie G. Long
Author-X-Name-First: Melanie G.
Author-X-Name-Last: Long
Title: Gender, Feminist Pedagogy, and Economics Education
Journal: Review of Political Economy
Pages: 587-592
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2023.2184043
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2184043
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# input file: CRPE_A_2150451_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Guilherme Spinato Morlin
Author-X-Name-First: Guilherme Spinato
Author-X-Name-Last: Morlin
Title: Inflation and Conflicting Claims in the Open Economy
Abstract:
Exchange rates and international prices are fundamental to explaining inflation in open economies. Conflict inflation models account for these variables by including imported inputs and, sometimes, a distribution effect of exchange rates since firms' mark-up cannot be independent of foreign competition in open economies. We analyze the different assumptions on distribution underlying conflict inflation models. We propose an alternative approach building on the Classical–Keynesian theory of distribution for a price-taker open economy. Thus we model conflict inflation in a framework compatible with the Classical–Keynesian approach for the open economy. The model includes tradable prices, considering their direct impact on distribution. Therefore, it addresses a cause of inflation overlooked in the literature. Finally, conflict inflation affects the real exchange rate, which becomes a fundamental distributive variable.
Journal: Review of Political Economy
Pages: 762-790
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2150451
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2150451
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:3:p:762-790
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# input file: CRPE_A_1985779_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Servaas Storm
Author-X-Name-First: Servaas
Author-X-Name-Last: Storm
Title: Lessons for the Age of Consequences: COVID-19 and the Macroeconomy
Abstract:
Comparative empirical evidence for 22 OECD countries shows that country differences in cumulative mortality impacts of SARS-CoV-2 are caused by weaknesses in public health competences, pre-existing variances in structural socio-economic and public health vulnerabilities, and the presence of fiscal constraints. Remarkably, the (fiscally non-constrained) U.S. and the U.K. stand out, as they experience mortality outcomes similar to those of fiscally-constrained countries. High COVID19 mortality in the U.S. and the U.K. is due to pre-existing socio-economic and public health vulnerabilities, created by the following macroeconomic policy errors: (a) a deadly emphasis on fiscal austerity (which diminished public health capacities, damaged public health and deepened inequalities); (b) an obsessive belief in a trade-off between ‘efficiency’ and ‘equity’, which is mostly used to justify extreme inequality; (c) a complicit endorsement by mainstream macro of the unchecked power over monetary and fiscal policy-making of global finance and the rentier class; and (d) an unhealthy aversion to raising taxes, which deceives the public about the necessity to raise taxes to counter the excessive liquidity preference of the rentiers and to realign the interests of finance and of the real economy. The paper concludes by outlining a few lessons for a saner macroeconomics.
Journal: Review of Political Economy
Pages: 823-862
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2021.1985779
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1985779
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# input file: CRPE_A_2149923_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gabriel Petrini
Author-X-Name-First: Gabriel
Author-X-Name-Last: Petrini
Author-Name: Lucas Teixeira
Author-X-Name-First: Lucas
Author-X-Name-Last: Teixeira
Title: Determinants of Residential Investment Growth Rate in the US Economy (1992–2019)
Abstract:
The leading role of residential investment in the business cycles is a robust stylized fact for the US economy. The housing bubble of the 2000s has increased interest in the macroeconomic relevance of this expenditure. However, there is still controversy surrounding its determinants. This article is an attempt to fulfill this gap. We propose to combine mortgage interest rate and house price inflation — two of the most relevant variables according to the literature — in a single index: houses’ own-rate of interest. This index represents the real cost of buying houses, so we expect a negative relationship with the growth rate of residential investment. Regarding the US economy from 1992 to 2019, we find a unidirectional negative correlation between houses’ own-rate of interest and residential investment growth rate in the long run. In the short-run adjustment process, we report no statistically significant effect of residential investment growth rate on houses’ own- rate of interest. Our results are robust to lag order specification and show that houses own-rate of interest explains more than half of the variability of residential investment rate of growth.
Journal: Review of Political Economy
Pages: 702-719
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2149923
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2149923
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# input file: CRPE_A_2183671_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Marcella Corsi
Author-X-Name-First: Marcella
Author-X-Name-Last: Corsi
Author-Name: Giulia Zacchia
Author-X-Name-First: Giulia
Author-X-Name-Last: Zacchia
Title: Teaching Heterodox Economics in a Feminist Perspective by Using Students’ Written Diaries on Consumption
Abstract:
Teaching heterodox economics, under a feminist perspective, involves motivating students to add complexity to human nature, to critically reflect on the social nature of economic processes, and to recognize the coexistence of several models, challenging the mainstream idea of the existence of only one economic model, that of rational choice. This paper argues that the use of students’ written diaries can serve as a useful feminist pedagogical tool for reaching these learning goals. Students’ written diaries on daily consumption allow them to create a more inclusive learning environment engaging all students in ‘practicing’ economics and helping them to understand the implications of unrealistic theoretical hypotheses, empirically ascertaining that consumers’ choices could not be explained as a process of optimization but as a social process where identities, social values and norms should be considered.
Journal: Review of Political Economy
Pages: 634-649
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2023.2183671
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2183671
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# input file: CRPE_A_2099677_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Massimo Pivetti
Author-X-Name-First: Massimo
Author-X-Name-Last: Pivetti
Title: A Note on the Surplus Approach as ‘Neo-Marxian’ Political Economy
Abstract:
After a short survey of the reasons why the label ‘Neo-Ricardianism’ customarily fixed to the surplus approach to political economy should be discarded for good, the note focuses on Marx's analysis of the influence of income distribution on the incentive to invest and technical change. It is held that it is principally this analysis that should be taken as the foundation for any further development of the surplus approach, with a view to putting together the essential elements of an alternative theory of employment and activity levels within which also the role of the State and its economic policy may be critically dealt with.
Journal: Review of Political Economy
Pages: 791-802
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2099677
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2099677
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# input file: CRPE_A_2150437_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Patieene Alves-Passoni
Author-X-Name-First: Patieene
Author-X-Name-Last: Alves-Passoni
Author-Name: Andrés Blancas Neria
Author-X-Name-First: Andrés Blancas
Author-X-Name-Last: Neria
Title: Determinants of Growth in Mexico and Brazil Between 2003 and 2018: A Demand-led Decomposition of Growth Using Input-output Tables
Abstract:
The main objective of this work is to carry out a demand-led growth decomposition for Brazil and Mexico so as to identify the main growth drivers and how the import structure has affected Brazilian and Mexican GDP growth between 2003 and 2018. We use the attribution (Dutch) method because it explains the contribution of each final demand component considering the import structure of intermediate and final goods and services required by each final demand component. The database used the national Input-Output Tables (IOTs) for both countries. We find that compared to the net-exports method, the external sector's contribution is underestimated for both countries, while the domestic contribution is overestimated. Furthermore, regarding the attribution method, the external sector is more important for Mexico than for Brazil, not because of its size in the final demand, but because it was the component that grew the most in the period. For Brazil, the domestic sector was the most crucial determinant of growth, especially household consumption.
Journal: Review of Political Economy
Pages: 670-686
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2150437
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2150437
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:3:p:670-686
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# input file: CRPE_A_2183673_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Stephan Lefebvre
Author-X-Name-First: Stephan
Author-X-Name-Last: Lefebvre
Author-Name: Lisa Giddings
Author-X-Name-First: Lisa
Author-X-Name-Last: Giddings
Title: The Necessity of Pursuing Feminist Pedagogy in Economics
Abstract:
The purpose of this paper is to characterize feminist pedagogy within the context of economics instruction in the US and to contribute to the development of this paradigm by charting out a research agenda for feminist pedagogy in economics. Our argument proceeds in two parts. First, we answer the question, what is feminist pedagogy in economics (FPiE)? This section sets out a working definition and contextualizes FPiE within the broader pedagogy literature, within the pedagogy literature specific to economics, and within the practice of economics teaching today. Next, we explore new directions for research and practice in FPiE by discussing post-positivist epistemologies, resisting the depoliticization of economics education, and effective responses to diversity in the neoliberal university.
Journal: Review of Political Economy
Pages: 614-633
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2023.2183673
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2183673
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# input file: CRPE_A_2069370_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Steven Pressman
Author-X-Name-First: Steven
Author-X-Name-Last: Pressman
Title: Review of Time for Socialism
Journal: Review of Political Economy
Pages: 905-908
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2069370
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2069370
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# input file: CRPE_A_1995147_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Hamid Raza
Author-X-Name-First: Hamid
Author-X-Name-Last: Raza
Author-Name: Mikael Randrup Byrialsen
Author-X-Name-First: Mikael Randrup
Author-X-Name-Last: Byrialsen
Author-Name: Jørgen Stamhus
Author-X-Name-First: Jørgen
Author-X-Name-Last: Stamhus
Title: Revisiting the Macroeconomic Impact of Benefits Generosity
Abstract:
This paper is an attempt to empirically investigate the macroeconomic effects of public policy on unemployment benefits. We address this issue by asking a simple question: How does public policy relating to unemployment benefits affect economic growth, productivity, and unemployment rate? We employ a dynamic panel VAR and perform a number of estimations, using data for several OECD countries. Overall, our results suggest that increases in unemployment benefits have both positive and adverse effects. In particular, we find that benefits generosity can increase output and productivity, but can also weakly raise unemployment rates in some cases. Our analysis in this paper calls into question the mainstream policy view of using reduction in unemployment benefits as a tool to improve macroeconomic outcomes.
Journal: Review of Political Economy
Pages: 883-904
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2021.1995147
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1995147
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:3:p:883-904
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# input file: CRPE_A_1993002_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Gilbert L. Skillman
Author-X-Name-First: Gilbert L.
Author-X-Name-Last: Skillman
Title: Marx’s Theory of Labor Subsumption: Restatement and Critical Assessment
Abstract:
The purpose of this study is to offer a comprehensive restatement and critical assessment of Marx’s theory regarding the subsumption of labor under capital (SLC). The core hypothesis of this account asserts a correspondence between forms of SLC and forms of surplus value extraction that is not evidently supported by his historical comparisons of capitalist production with antecedent forms of the circuit of capital. Moreover, Marx’s comparative historical analysis of SLC does not establish a distinct and necessary role for direct capitalist oversight of production in the process of surplus value extraction. Possible theoretical foundations for inferring such a role are discussed.
Journal: Review of Political Economy
Pages: 863-882
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2021.1993002
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1993002
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:3:p:863-882
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# input file: CRPE_A_2150436_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Ettore Gallo
Author-X-Name-First: Ettore
Author-X-Name-Last: Gallo
Title: How Short Is the Short Run in the Neo-Kaleckian Growth Model?
Abstract:
The paper provides an analytical solution to the differential equation that regulates the motion of the neo-Kaleckian model in the short run. After presenting a simple open economy neo-Kaleckian model with government activity, the paper analytically derives an expression for the time of adjustment, defined as the time required for the system to make a k percent adjustment from one steady-state to another. The solution shows that there is an inverse relationship between the time of adjustment and (i) the strength of the Keynesian stability condition; (ii) the behavior of entrepreneurs underlying their decisions to more rapidly/slowly respond to changes in goods market conditions. Last, the model is calibrated for the US, showing that the vicinity of the new equilibrium is reached after a period of about 5 quarters under a baseline calibration. By formally analyzing the out-of-equilibrium trajectory of the neo-Kaleckian model, this contribution moves away from the method of comparative dynamics and provides a historical-time representation of the model's traverse.
Journal: Review of Political Economy
Pages: 687-701
Issue: 3
Volume: 35
Year: 2023
Month: 07
X-DOI: 10.1080/09538259.2022.2150436
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2150436
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:3:p:687-701
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# input file: CRPE_A_1996064_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Creina Day
Author-X-Name-First: Creina
Author-X-Name-Last: Day
Author-Name: Garth Day
Author-X-Name-First: Garth
Author-X-Name-Last: Day
Title: Majority Voting, Progressive Taxation, and Income Inequality
Abstract:
A challenge for the political economy literature is why the average tax rate becomes less progressive while wage inequality increases with the skill premium. This paper contributes to the literature by developing a majority voting equilibrium model in which households choose their most preferred tax schedule under increasing inequality. We find that majority voting favors a marginal tax rate to fund transfers, where the average tax rate increases with income, when the median skill level lies below the mean skill level. The average tax rate becomes less progressive when required government revenue relative to mean skill increases. These findings reconcile the literature with recent empirical trends and are robust to relaxing the assumptions of exogenous government spending and endogenous labor supply.
Journal: Review of Political Economy
Pages: 1124-1135
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2021.1996064
File-URL: http://hdl.handle.net/10.1080/09538259.2021.1996064
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# input file: CRPE_A_2233870_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Riccardo Zolea
Author-X-Name-First: Riccardo
Author-X-Name-Last: Zolea
Title: A Functional Analysis of the Role of Deposits in the Traditional Banking Industry
Abstract:
This paper proposes a functional analysis of the input of the traditional banking sector in an endogenous money framework. Although banks create bank money, central bank money (or reserves) cannot be produced by banks, which require it as an input. Deposits are the cheapest source of central bank money already in the system, so it can be argued that deposits serve as inputs for the banking industry. Nevertheless, for individual banks it is necessary to draw some distinctions between deposits corresponding to liquidity injection and pure accounting entries that are generated by the creation of loans. Furthermore, the role of bank bonds is discussed, in the context of whether they function more as equity or as deposits. Unlike other industries, it is hypothesised that the functional role of bank bonds is very different from that of equity, and it is rather a different form of bank funding of liquidity, with some advantages and disadvantages compared to deposits. Finally, a brief comparison is pursed between this analysis of the traditional banking sector and the simpler study of other financial intermediaries.
Journal: Review of Political Economy
Pages: 933-952
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2233870
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2233870
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# input file: CRPE_A_2215172_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Peter Kriesler
Author-X-Name-First: Peter
Author-X-Name-Last: Kriesler
Title: Post-Keynesian Economics: New Foundations, by Marc Lavoie Chapter 5: Effective Demand and Employment
Abstract:
This article examines Chapter 5 ‘Effective Demand and Employment’ in Post-Keynesian Economics: New Foundations by Marc Lavoie. This chapter covers one of the most distinctive contributions of the post-Keynesians, and one of its most profound insights. Analysis of effective demand and employment is a crucial and distinct foundation of post-Keynesian economics. Identifying the determinants of the level of employment and output represent one of the most significant contributions of post-Keynesian analysis. This is in total contrast to mainstream theory, according to which the level of output and employment are determined in the labour market, with labour seen as just another commodity, and the wage rate playing the role of the price equating supply and demand for labour. For post-Keynesians, the main determinant of the level of output and employment is the level of effective demand rather than the wage rate. Their views on the labour markets, taking into account segmented labour markets and efficiency wages, are considered. The determinants of profits and the profit share play important roles in the determination of employment and output. It is argued that fiscal policy plays a vital role in economic stabilisation, and that the typical arguments regarding its limitations are incorrect.
Journal: Review of Political Economy
Pages: 1061-1071
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2215172
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2215172
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# input file: CRPE_A_2069372_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Giancarlo Bertocco
Author-X-Name-First: Giancarlo
Author-X-Name-Last: Bertocco
Author-Name: Andrea Kalajzić
Author-X-Name-First: Andrea
Author-X-Name-Last: Kalajzić
Title: Some Constructive Comments on Steve Keen’s Manifesto for a New Economics
Journal: Review of Political Economy
Pages: 1179-1187
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2022.2069372
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2069372
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# input file: CRPE_A_2075116_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Emanuele Citera
Author-X-Name-First: Emanuele
Author-X-Name-Last: Citera
Title: Inequalities and the Progressive Era: Breakthroughs and Legacies
Journal: Review of Political Economy
Pages: 1191-1193
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2022.2075116
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2075116
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# input file: CRPE_A_2107365_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mauro Boianovsky
Author-X-Name-First: Mauro
Author-X-Name-Last: Boianovsky
Title: Introduction to the Mini-Symposium on Lucas’s 1972 ‘Expectations and the Neutrality of Money’ in Historical Perspective
Abstract:
This is the general introduction to a mini-symposium on Lucas’ (1972) ‘Expectations and the neutrality of money’ in historical perspective. Upon discussing some of the main features of Lucas’ seminal and controversial article, this introduction sums up the main points of the four papers contributed to the mini-symposium.
Journal: Review of Political Economy
Pages: 953-955
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2022.2107365
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2107365
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# input file: CRPE_A_2075115_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Aldo Barba
Author-X-Name-First: Aldo
Author-X-Name-Last: Barba
Title: Heterodox challenges in economics: theoretical issues and the crisis of the eurozone
Journal: Review of Political Economy
Pages: 1187-1190
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2022.2075115
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2075115
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# input file: CRPE_A_2105015_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Mauro Boianovsky
Author-X-Name-First: Mauro
Author-X-Name-Last: Boianovsky
Title: J.S. Mill, W. Roscher and D.H. Robertson: The Early History of the Monetary Misperceptions Hypothesis
Abstract:
Around 50 years ago, Edmund Phelps and Robert Lucas proposed an answer to the question of why changes in aggregate nominal spending bring about output and employment effects, instead of purely proportional variations in prices. The Phelps–Lucas monetary misperception hypothesis asserted that imperfect information about the state of the economy may cause sluggish price or wage adjustment to emerge as reactions to monetary shocks in an otherwise perfectly flexible prices economy. The present paper documents how J.S. Mill, W. Roscher and D.H. Robertson addressed that issue in their respective notions of ‘general delusion’, ‘generally prevailing error’ and ‘monetary misapprehension’, formulated between mid-19th and early 20th centuries. It also discusses how their contributions were not acknowledged until after Phelps and Lucas.
Journal: Review of Political Economy
Pages: 1003-1020
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2022.2105015
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2105015
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# input file: CRPE_A_2226936_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: John King
Author-X-Name-First: John
Author-X-Name-Last: King
Title: Post-Keynesian Economics: New Foundations by Marc LavoieChapter 1: Essentials of Heterodox and Post-Keynesian Economics
Abstract:
Marc Lavoie’s very long (74-page), very stimulating and sometimes very provocative first chapter has the title ‘Essentials of heterodox and post-Keynesian economics’. It deals with an extremely broad range of issues in economic methodology and in the sociology (broadly defined) of different schools of thought in economics, in addition to providing a substantial discussion of theoretical and policy questions. Space constraints prevent me from dealing with many of these very interesting and occasionally contentious propositions. Instead I shall confine my contribution to an assessment of Marc’s position on the heterodox and orthodox schools of thought (sections 1.2 and 1.3, pp. 4–16); on the related question of ‘atomism versus holism’ (section 1.3.3, pp. 17–24); on the different post-Keynesian strands, with particular reference to his treatment of Hyman Minsky, Piero Sraffa and Michał Kalecki (section 1.4.3, pp. 40–46); and on the important question of whether we should adopt a ‘narrow tent’ or ‘broad tent’ definition of post-Keynesianism (section 1.4.4, pp. 46–49).
Journal: Review of Political Economy
Pages: 1025-1033
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2226936
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2226936
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# input file: CRPE_A_2208064_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Stavros A. Drakopoulos
Author-X-Name-First: Stavros A.
Author-X-Name-Last: Drakopoulos
Title: Post-Keynesian Economics: New Foundations by Marc Lavoie Chapter 2: Theory of Choice
Abstract:
This work presents and discusses chapter two of Marc Lavoie’s book Post-Keynesian Economics: New Foundations. It begins by analysing the concepts of uncertainty and rationality which are extremely important for the post Keynesian approach, and for economic theorizing in general. The notions of fundamental uncertainty and the closely related concept of procedural rationality, are employed in order to build the foundations of a theory of household choice. It proceeds by investigating the repercussions of the theory in a lexicographic/hierarchical analytical framework. In this framework, groups consume different goods depending on their respective needs, income effects are more important than substitution effects, and price competition has a secondary role. It is also shown that Lavoie’s approach does not only draw from the work of Keynes and other major post-Keynesian theorists, but also utilizes contributions from other strands of heterodox economics, thus providing an agenda for a possible theoretical synthesis.
Journal: Review of Political Economy
Pages: 1034-1044
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2208064
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2208064
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# input file: CRPE_A_2211941_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Lídia Brochier
Author-X-Name-First: Lídia
Author-X-Name-Last: Brochier
Title: Post-Keynesian Economics: New Foundations, by Marc Lavoie Chapter 6: Accumulation and Capacity
Abstract:
This article reviews the chapter on growth and distribution of the 2022 edition of the book Post-Keynesian Economics: New Foundations by Marc Lavoie. The review goes through most of the chapter’s main topics, including the main classes of growth and distribution models along post-Keynesian lines and the criticism and extensions of these models. It stresses the macroeconomic paradoxes that result from the relation between aggregate demand and either income distribution or debt dynamics in these models. The review also addresses the new additions to the chapter, among which the recent contributions on the controversy on the convergence towards the normal capacity utilization rate and the non-capacity creating autonomous demand growth models, and Lavoie’s new section on wealth and personal income distribution. At last, the review discusses three issues raised by the chapter’s reading: the relation between realism and complexity for a model’s calibration, the consequences of abstracting the financial side of growth models, and how we address financial issues in growth and stock-flow consistent (SFC) models. The chapter reviewed is balanced and constructive; it critically informs the reader and provides a good map of the post-Keynesian literature on growth and distribution, addressing the canons while bringing novelty.
Journal: Review of Political Economy
Pages: 1072-1082
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2211941
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2211941
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# input file: CRPE_A_2105016_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Robert W. Dimand
Author-X-Name-First: Robert W.
Author-X-Name-Last: Dimand
Title: Lucas and Tobin: Debating the New Classical Challenge to Keynesian Economics
Abstract:
The future Nobel laureates Robert Lucas and James Tobin debated the New Classical challenge to the microeconomic foundations and empirical validity of Keynesian economics, with Lucas singling Tobin out as an interlocutor among Keynesian economists who took the New Classical challenge seriously. Their intellectual exchanges began with Tobin, ‘The Wage-Price Mechanism: Overview of the Conference’ (1972), and Lucas, ‘Econometric Testing of the Natural Rate Hypothesis’ (1972), both in Otto Eckstein, ed., The Econometrics of Price Determination Conference (1972). That conference was a milestone in confronting alternative macroeconomic methodologies with each other, but has received relatively little attention in the literature, most notably from Stanley Fischer (in JMCB Supplement, 2007), who characterized ‘that volume as representative of the best thinking of the time on the Phillips curve.’ This paper examines the debate between Lucas and Tobin that began with their contributions to that conference and that reached a climax with Tobin’s Yrjö Jahnsson Lectures (Asset Accumulation and Economic Activity, 1980) and Lucas’s Journal of Economic Literature review article on those lectures.
Journal: Review of Political Economy
Pages: 956-971
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2022.2105016
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2105016
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# input file: CRPE_A_2149257_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Giandomenica Becchio
Author-X-Name-First: Giandomenica
Author-X-Name-Last: Becchio
Author-Name: Luca Fiorito
Author-X-Name-First: Luca
Author-X-Name-Last: Fiorito
Title: American Academic Male Economists and Women’s Suffrage: Another Look at Progressive-Era (Il)Liberalism
Abstract:
During the Progressive Era (1890–1920) in the U.S., the debate on women’s enfranchisement involved two opposite sides: detractors (Antis) and supporters. Detractors converged on the idea that women’s enfranchisement might have harmed the natural harmony of society, based on a strict division of roles between sexes. Supporters developed three different arguments: women’s suffrage would have reinforced the democratic system; it would have strengthened social cohesion; it would have led to several economic advantages of the society as a whole. Major American economists of the time joined the debate. The aim of this paper is to describe the position of the foremost male academic economists of the time by digging the lesser-known propaganda literature of the period. By showing the position of those who were against women’s suffrage, we point out their illiberalism which, in some cases, was actual chauvinism. By showing the arguments of those who supported women’s suffrage, we point out different nuances of endorsement: while some were in favor in the name of gender equality, others did not give up forms of biologically determinism and gender-biased stereotypes.
Journal: Review of Political Economy
Pages: 1162-1178
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2022.2149257
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2149257
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# input file: CRPE_A_2244326_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sylvio Kappes
Author-X-Name-First: Sylvio
Author-X-Name-Last: Kappes
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: Introduction to Post-Keynesian Economics: New Foundations by Marc Lavoie
Journal: Review of Political Economy
Pages: 1021-1024
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2244326
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2244326
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# input file: CRPE_A_2008736_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jan Vandemoortele
Author-X-Name-First: Jan
Author-X-Name-Last: Vandemoortele
Author-Name: Enrique Delamonica
Author-X-Name-First: Enrique
Author-X-Name-Last: Delamonica
Title: Growth is Good for the Poor? Not Necessarily
Abstract:
In mainstream economic thinking, it is common to find a simplistic relationship between economic growth and poverty reduction. Two decades ago, a paper titled “Growth is Good for the Poor” purported to have established a strict one-to-one relationship between economic growth at the national level and growth of income among the poor. In this note we explain the methodological, modelling, and analytical shortcomings of the exercise. Using simulations based on random numbers we show that the data did not support the arguments and that, consequently, the policy conclusions were not warranted by the analysis. The lessons are important in the current context when addressing growing poverty in the wake of the COVID-19 pandemic.
Journal: Review of Political Economy
Pages: 1157-1161
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2021.2008736
File-URL: http://hdl.handle.net/10.1080/09538259.2021.2008736
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# input file: CRPE_A_2248027_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: Political Aspects of Full Employment: Eight Decades On
Abstract:
The contribution and continuing relevance of Kalecki’s paper on ‘Political aspects of full employment’ on the 80th anniversary of its publication is the central topic. There are five sets of important and interrelated ideas in Kalecki’s paper. Full employment was feasible under capitalism from the perspective of securing a high level of demand through government spending. There would be resistance, particularly from business and finance to prolonged full employment, and there are political and social constraints on long-term full employment. Fascism had secured full employment through its relationships with big business and reducing the political obstacles. A political business cycle with full employment achieved at best at the top of the cycle could be generated. The role of ‘fundamental reforms’ in sustaining full employment under capitalism, and the ‘fate’ of fundamental reforms is reviewed.
Journal: Review of Political Economy
Pages: 1109-1123
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2248027
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# input file: CRPE_A_2226950_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Robert Guttmann
Author-X-Name-First: Robert
Author-X-Name-Last: Guttmann
Title: Post-Keynesian Economics: New Foundations, by Marc Lavoie Chapter 7: Open Economy Macroeconomics
Abstract:
Reviewing Marc Lavoie’s comprehensive and well-structured discussion of open-economy macroeconomics allows us to revisit some key Post-Keynesian contributions and confirm their continued relevance to our understanding of international economic, financial and monetary relations. In the process Lavoie draws a consistently sharp contrast with standard-theory concepts and models, much of it organized around his elaboration of endogenous money in an international context and modern trade flows embedded in a highly globalized and financialized world economy which have little to do with comparative advantage. He thereby provides us with a conceptual road map for a meta-economic revolution which recognizes that the world economy has a growth dynamic all of its own rather than being just the sum of its parts, the two-hundred or so national economies connected to each other through their balance of payments and exchange rates.
Journal: Review of Political Economy
Pages: 1083-1095
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2226950
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2226950
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# input file: CRPE_A_2243845_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Renee Prendergast
Author-X-Name-First: Renee
Author-X-Name-Last: Prendergast
Title: The Role of Knowledge in Economic Life — From Bacon to Marshall
Abstract:
The paper seeks to uncover a long-submerged tradition that saw knowledge accumulation as the main driver of development. This vision was ubiquitous until the late 18th century when, with the advent of the machine age, the focus shifted from knowledge accumulation to capital accumulation. Emphasis on knowledge did not disappear completely. Some argued that the knowledge embedded in human agents and not capital was the source of productivity gains while others emphasised the role of technological and scientific knowledge alongside capital accumulation. By the early decades of the 20th century, the economic role of science had become more salient and by the end of that century, the idea that knowledge accumulation has a central role in progress was again taken for granted. The paper suggests that by focusing the kinds of knowledge we have; and how that knowledge is stored, transmitted, made use of, and extended; we can learn much about how specific social relations of production facilitate or retard development, about who gets the rewards, and how relations of production may need to change to allow knowledge itself to develop.
Journal: Review of Political Economy
Pages: 913-932
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2243845
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2243845
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# input file: CRPE_A_2208070_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Rosaria Rita Canale
Author-X-Name-First: Rosaria Rita
Author-X-Name-Last: Canale
Title: Post-Keynesian Economics: New Foundations by Marc Lavoie Chapter 3: Theory of the firm
Abstract:
This article represents a systematic presentation of the post-Keynesian alternative to mainstream economic theory. It places observation of reality at the centre of the investigation and derives — through an in-depth examination of post-Keynesian literature — an analytical model capable of interpreting the behaviour of firms in a capitalistic market economy. The chapter on which this article focuses is in a book covering the core elements of this heterodox model, which creates a coherent framework for investigating and interpreting the workings of an economic system that approximates reality.
Journal: Review of Political Economy
Pages: 1045-1050
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2208070
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:4:p:1045-1050
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# input file: CRPE_A_2222680_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Julia Braga
Author-X-Name-First: Julia
Author-X-Name-Last: Braga
Author-Name: Franklin Serrano
Author-X-Name-First: Franklin
Author-X-Name-Last: Serrano
Title: Post-Keynesian Economics: New Foundations by Marc Lavoie Chapter 8: Inflation Theory
Abstract:
The conflicting claims approach to the theory of inflation so thoroughly surveyed and well presented in Chapter 8 of Lavoie's [(2022). Post-Keynesian Economics. New Foundations. Cheltenham, UK: Edward Elgar Publishing] book is deservedly becoming increasingly consensual among heterodox (and even some notable mainstream) macroeconomists. However, the relevance of a concept (and the very existence of) a single NAIRU (Non-Accelerating Inflation Rate of Unemployment) derived consistently from the very premises of the conflicting claims approach is still very controversial. In this review article, we will be to argue that a NAIRU is not really useful for the conflicting claims approach. The key aspects explored here are: (1) the different roles of hysteresis in the output and labor markets; (2) the assumptions concerning real profit markups of firms; and (3) the extent to which money wage increases actually incorporate past (or expected) inflation. We also add some remarks regarding the role of changes in international commodity prices and nominal exchange rates that further illustrate the necessary relation between conflicting claims inflation and the theory of distribution and relative prices.
Journal: Review of Political Economy
Pages: 1096-1108
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2222680
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2222680
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:4:p:1096-1108
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# input file: CRPE_A_2226606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sylvio Kappes
Author-X-Name-First: Sylvio
Author-X-Name-Last: Kappes
Author-Name: Louis-Philippe Rochon
Author-X-Name-First: Louis-Philippe
Author-X-Name-Last: Rochon
Title: Post-Keynesian Economics: New Foundations, by Marc Lavoie Chapter 4: Credit, Money and Central Banks
Abstract:
This article focuses on an analysis of chapter 4 of Lavoie’s magnus opus, Post-Keynesian Economics: New Foundations. It is the opening chapter of the macroeconomic section of the book. As we argue, following Keynes’s ‘monetary theory of production’, but also in line with Schumpeter, starting the discussion over macroeconomics with money makes sense. It is impossible, in post-Keynesian economics, to discuss the real economy independently of the monetary side of the analysis. In this sense, money and production, and debt, are linked within an endogenous money framework. This article covers and discusses all aspects of this chapter.
Journal: Review of Political Economy
Pages: 1051-1060
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2023.2226606
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2226606
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# input file: CRPE_A_2005367_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Jan Philipp Dapprich
Author-X-Name-First: Jan Philipp
Author-X-Name-Last: Dapprich
Title: Optimal Planning with Consumer Feedback: A Simulation of a Socialist Economy
Abstract:
Mathematical optimization can be used to increase the effectiveness of economic planning in socialist economies. Cockshott and Cottrell [Towards a New Socialism, Spokesman: 1993] have proposed a model of socialism in which optimal planning is made responsive to consumer demand. A point of contention has been the emphasis on labor values in their model. The use of labor values could mean that the environmental impact of production is insufficiently reflected in planning targets. This paper discusses how alternative values (opportunity cost valuations, OCs) can be calculated using linear optimization and presents a computer simulation of a socialist economy based on these values. An agent-based consumer model was developed to model the behavior of consumers. An alternative version of the simulation based on labor values is used for comparison. It is found that in specific circumstances the use of OCs does indeed result in a stronger emphasis on more environmentally friendly production than the labor value model. Relevant literature on optimal planning, distribution under socialism and valuation will be reviewed, followed by a presentation of the simulation and a discussion of some of its results for a series of small test economies.
Journal: Review of Political Economy
Pages: 1136-1156
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2021.2005367
File-URL: http://hdl.handle.net/10.1080/09538259.2021.2005367
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# input file: CRPE_A_2105017_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Bruna Ingrao
Author-X-Name-First: Bruna
Author-X-Name-Last: Ingrao
Title: Two Open Questions on Lucas’s Research Program in the Early 1970s
Abstract:
The article deals with the misperceptions research program that Lucas enunciated in his article ‘Expectations and the Neutrality of Money’ in 1972. It addresses two main questions about Lucas’s research agenda in the early 1970s from both historical and theoretical perspectives: first, Lucas’s claim to root his research program in neo-Walrasian general equilibrium foundations; second, the way in which Lucas avoids dealing with the difficult issue of money in general equilibrium models. The article discusses the consistency of Lucas’s claims of building macroeconomic theory on general equilibrium foundations in the light of open problems in neo-Walrasian general equilibrium theory and the ‘Hahn question’. In the conclusion, the article proposes a reflection on the importance of conceptual screening in the evaluation of research programs in macroeconomics.
Journal: Review of Political Economy
Pages: 987-1002
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2022.2105017
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2105017
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Handle: RePEc:taf:revpoe:v:35:y:2023:i:4:p:987-1002
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# input file: CRPE_A_2105018_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20
Author-Name: Sylvie Rivot
Author-X-Name-First: Sylvie
Author-X-Name-Last: Rivot
Title: Lucas and Friedman: The Challenges of Rational Expectations-Based Monetary Cycles for Adaptive Expectations-Based Monetary Long Trends
Abstract:
The paper argues that Lucas (1972. ‘Expectations and the Neutrality of Money.’ Journal of Economic Theory 4 (2): 103–124) played a significant role in changing Friedman’s theoretical propositions of the 1970s, and that his restatement of Friedman’s (1968b. Dollars and Deficits. Inflation, Monetary Policy and the Balance of Payments. Englewood Cliffs: Prentice-Hall International) address on monetarism helped Friedman refine his argument, regarding both theory and policy-making, in a consistent manner. First, the adoption of the rational expectations hypothesis eventually led to a confrontation with Friedman, whose own approach to probability, based on subjective uncertainty, originated in his early joint work with Savage. Second, Lucas’ modelling of the aggregate supply function undermined Friedman’s earlier approach to the interrelationships between prices and quantities, but also helped remind Friedman of his Marshallian lineage. Lastly, Lucas’s monetary cycle theory, based on an extraction signal problem that was quickly criticized and abandoned, compelled Friedman to give a firmer theoretical foundation to his monetary policy rule based on a constant rate of growth in money supply, thanks to his earlier approach of subjective uncertainty and personal probability.
Journal: Review of Political Economy
Pages: 972-986
Issue: 4
Volume: 35
Year: 2023
Month: 10
X-DOI: 10.1080/09538259.2022.2105018
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2105018
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# input file: CRPE_A_2041284_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Esther Dweck
Author-X-Name-First: Esther
Author-X-Name-Last: Dweck
Author-Name: Carolina Troncoso Baltar
Author-X-Name-First: Carolina Troncoso
Author-X-Name-Last: Baltar
Author-Name: Marília Bassetti Marcato
Author-X-Name-First: Marília Bassetti
Author-X-Name-Last: Marcato
Author-Name: Camila Unis Krepsky
Author-X-Name-First: Camila Unis
Author-X-Name-Last: Krepsky
Title: Labor Market, Distributive Gains and Cumulative Causation: Insights from the Brazilian Economy
Abstract:
This paper investigates the impact of economic growth patterns on employment structure, highlighting the effects of the main final demand components' variations. Brazil is an interesting case study, as it has experienced a combination of sustained economic growth, an improvement in income distribution, and a notable increase in job formalization in the 2004-2013 period. We explore how the Brazilian growth pattern contributed to the employment growth and changes in the occupational structure (informal and formal jobs, and wage-level) and provide original insights into the Brazilian labor market in the long 2000s. We find no signs of typical job polarization, as changes in job structure relate to reductions in wage inequality. We develop a structural decomposition analysis to measure the demand components' role in explaining the Brazilian labor market's transformations based on an effective demand input-output model. Drawing on an analysis of cumulative causation between income distribution, household consumption, and occupational structure, we find that induced consumption significantly impacted service and trade industries, increasing the low-wage jobs growth rate. Our analysis suggests that the combination of cumulative causation with government consumption and investment growth is crucial to explain distributive gains and the absence of job polarization in the Brazilian labor market.
Journal: Review of Political Economy
Pages: 325-350
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2041284
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2041284
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:325-350
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# input file: CRPE_A_2037930_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Emiliano Brancaccio
Author-X-Name-First: Emiliano
Author-X-Name-Last: Brancaccio
Author-Name: Fabiana De Cristofaro
Author-X-Name-First: Fabiana
Author-X-Name-Last: De Cristofaro
Title: In Praise of ‘general laws’ of Capitalism: Notes from a Debate with Daron Acemoglu
Abstract:
This essay develops the topics of a debate between Daron Acemoglu and Emiliano Brancaccio hosted by the Feltrinelli Foundation in June 2021. Acemoglu argues that Marx’s and his epigon Piketty’s attempts to unveil ‘general laws of capitalism’ are doomed to failure as they neglect institutions’ heterogeneity and their dynamics. Acemoglu provides historical and empirical evidence in support of the idea that such ‘laws’ are denied by ‘counterfactuals’. In this paper, we criticize Acemoglu’s epistemological view by arguing that the dynamics of institutions could strengthen general ‘laws’ rather than defeat them. We also show that Acemoglu empirical results can be overturned: a revision of his tests shows that Piketty’s law and the Marxian law of capital centralization find support in the empirical analysis. It is therefore appropriate to continue the investigation about the relevance of these ‘laws’, also for their possible implications on the future of liberal-democratic capitalism.
Journal: Review of Political Economy
Pages: 289-303
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2037930
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2037930
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:289-303
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# input file: CRPE_A_2075119_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Stephen Parsons
Author-X-Name-First: Stephen
Author-X-Name-Last: Parsons
Title: The Community of Advantage: A Behavioural Economist’s Defence of the Market
Journal: Review of Political Economy
Pages: 376-379
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2075119
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2075119
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:376-379
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# input file: CRPE_A_2164185_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Jane Knodell
Author-X-Name-First: Jane
Author-X-Name-Last: Knodell
Title: Making a Central Bank Out of the Federal Reserve: A Historical Perspective on Wartime Amendments to the Federal Reserve Act
Abstract:
One of the signature policy achievements of the Progressive era was the passage of the Federal Reserve Act in 1913. This paper argues that the original Act did not create an effective central bank and consequently did not bring about significant structural change in domestic monetary institutions. Early leaders of the Federal Reserve, frustrated with the constraints on reserve bank operations, actively lobbied Congress to secure changes to the Act. These efforts only succeeded after the U.S. entered World War 1 in the spring of 1917, triggering a transformation in the monetary base that elevated the position and centrality of the Federal Reserve. Seen in this light, the wartime amendments were a victory for the activist institution-builders within the Federal Reserve in addition to being essential for the federal government's ability to finance the war effort.
Journal: Review of Political Economy
Pages: 31-58
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2164185
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2164185
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# input file: CRPE_A_2136316_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Pablo G. Bortz
Author-X-Name-First: Pablo G.
Author-X-Name-Last: Bortz
Title: Post-Keynesian Growth Theory. Selected Essays
Journal: Review of Political Economy
Pages: 383-384
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2136316
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2136316
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:383-384
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# input file: CRPE_A_2279825_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Rebeca Gomez Betancourt
Author-X-Name-First: Rebeca
Author-X-Name-Last: Gomez Betancourt
Author-Name: Guillaume Vallet
Author-X-Name-First: Guillaume
Author-X-Name-Last: Vallet
Title: The Political Economy of Social Change and Nation-Building During the Progressive Era
Journal: Review of Political Economy
Pages: 1-7
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2023.2279825
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2279825
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# input file: CRPE_A_2018254_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Matteo Deleidi
Author-X-Name-First: Matteo
Author-X-Name-Last: Deleidi
Author-Name: Santiago José Gahn
Author-X-Name-First: Santiago José
Author-X-Name-Last: Gahn
Author-Name: Riccardo Pariboni
Author-X-Name-First: Riccardo
Author-X-Name-Last: Pariboni
Title: Activity Levels and the Flexibility of the Degree of Capacity Utilisation in the US
Abstract:
In recent years, a revival of the so-called ‘utilisation controversy’ has seen several scholars engage in a lively debate that still revolves around the same old question: what should we expect, beyond the short run, with regard to the degree of capacity utilisation? In this article, we tackle this issue by investigating the relationship between the level of economic activity and the ensuing utilisation of existing capacity. In order to assess the effect of the former on the latter and to provide a robust and clear picture of this phenomenon, we use a Structural VAR and Local Projection methodologies to estimate three alternative models, based on monthly data on the US economy. After presenting our empirical results, which point to only temporary effects on capacity utilisation of shocks to the level of economic activity, we verify their compatibility with alternative demand-led growth models. We conclude that autonomous demand-led models cum convergence towards normal utilisation perform better in terms of consistency with the econometric evidence, while the latter seems to call for a re-examination of ‘conventional’ versions of the Neo-Kaleckian model.
Journal: Review of Political Economy
Pages: 178-201
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2021.2018254
File-URL: http://hdl.handle.net/10.1080/09538259.2021.2018254
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:178-201
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# input file: CRPE_A_2164184_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Marianne Johnson
Author-X-Name-First: Marianne
Author-X-Name-Last: Johnson
Title: Taxation in the Early Progressive Era: From Revenue to Social Policy
Abstract:
This paper examines the views of three prominent Wisconsin progressives — Richard T. Ely, Tomas Sewall Adams, and John R. Commons — on taxes as social policy. In the 1890s, Wisconsin emerged as a national progressive leader, a ‘laboratory of democracy’ that produced the nation’s first minimum wage, first unemployment insurance plan, the first civil service law, and the first state-level income tax. Yet, despite often bordering on the radical, Wisconsin economists were cautious about demands for income and wealth redistribution through the tax mechanism. Instead, they conceived of taxation as an instrument of social policy via three intersecting paths: (1) that the provision of government services could serve as a vehicle by which to achieve desirable socioeconomic outcomes, (2) that properly designed tax policy could improve morality, itself a worthy end, and (3) that inequality and distributional concerns should be understood as issues of power and property rather than of wealth.
Journal: Review of Political Economy
Pages: 59-75
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2164184
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2164184
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:59-75
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# input file: CRPE_A_2016190_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Michel Rocca
Author-X-Name-First: Michel
Author-X-Name-Last: Rocca
Author-Name: Guillaume Vallet
Author-X-Name-First: Guillaume
Author-X-Name-Last: Vallet
Title: The Rise and Fall of Two Outstanding Progressives of American Social Sciences (1880s–1930s): A Critical Focus on R.T. Ely and A.W. Small
Abstract:
This article examines why the ideas and methods pioneered by R.T. Ely and A.W. Small did not take long-term root between 1880 and 1930, at a time when both scholars were at the forefront of American social sciences. They experienced a gradual decline in the production of academic ideas, which prevented them from remaining ‘moral entrepreneurs’ within their field. By analyzing the evolution of the support (intellectual, relational and institutional) available to Ely and Small we argue that their loss of status as ‘moral entrepreneurs’ did not reflect deficiencies in their scientific research, but was instead the consequence of their inability to harness the support in order to entrench a specific, enduring research norm.
Journal: Review of Political Economy
Pages: 8-30
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2021.2016190
File-URL: http://hdl.handle.net/10.1080/09538259.2021.2016190
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# input file: CRPE_A_2030585_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Shinji Teraji
Author-X-Name-First: Shinji
Author-X-Name-Last: Teraji
Title: Leverage and Bargaining Power in a Kaleckian Growth Model
Abstract:
This paper develops the theory of leverage in a Kaleckian growth model with collateralized borrowing by firms. When debts are secured by collateral, firms with higher leverage are able to borrow more. The paper focuses on what determines leverage and why it changes. Higher loan-to-collateral ratio allows higher leverage. Leverage affects the dynamics of effective demand and financial instability through the power relations between firms (borrowers) and financial capitalists (lenders). Firms and financial capitalists confront their respective claims regarding the target leverage. The model emphasizes the relative bargaining power between the two classes over the target leverage. As the firms’ bargaining power varies, collateralized loans can generate cycles under some condition.
Journal: Review of Political Economy
Pages: 137-153
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2030585
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2030585
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# input file: CRPE_A_2136313_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Douglas Alencar
Author-X-Name-First: Douglas
Author-X-Name-Last: Alencar
Title: Keynes on Uncertainty and Tragic Happiness: Complexity and Expectations
Journal: Review of Political Economy
Pages: 380-382
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2136313
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2136313
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:380-382
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# input file: CRPE_A_2030584_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Virgile Chassagnon
Author-X-Name-First: Virgile
Author-X-Name-Last: Chassagnon
Author-Name: Naciba Haned
Author-X-Name-First: Naciba
Author-X-Name-Last: Haned
Title: Power in Firms as Political Entities: Dependency, Strategy and Resistance
Abstract:
Concomitant with the exacerbation of globalization, the firm has become a major institutional actor of economic change. However, it must be noted that the economics of the firm has been developed since the 1970s as a disciplinary subfield of economic science without paying any real attention to the concepts and practices of power. The firm is undoubtedly not only an economic but also a social and political entity. One cannot free the firm from the relations of power without missing a very substantial part of the constitutive elements of the firm, notably the struggling games and strategies of actors (firm members) who evolve in open institutional systems. Therefore, it is useful to turn to certain influent sociological and philosophical perspectives to understand power dynamics in the firm from an economic point of view. More precisely, to highlight the individual actors’ games that constitute the evolution of firms’ dynamics as complex and strategic systems, it is essential to pay particular attention to three aspects: (1) dependency; (2) strategy; and (3) resistance.
Journal: Review of Political Economy
Pages: 116-136
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2030584
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2030584
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# input file: CRPE_A_2037932_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Juan Barredo-Zuriarrain
Author-X-Name-First: Juan
Author-X-Name-Last: Barredo-Zuriarrain
Title: Credit-Fueled Demand and Shrinking Aggregate Supply: A Study on the Hyperinflation in Venezuela
Abstract:
Money supply adapts to the demand of credit and has a crucial impact in determining production levels. However, at the same time, under certain conditions the issuance of money may also boost inflation.In this article, with the help of Shaikh's ‘classical theory’, we explain the main reasons for the recent hyperinflation experienced in Venezuela. On the supply side, we analyze the context of loss of competitiveness due to the overvaluation of the national currency. On the other hand, we explore how the credit to the oil company (PDVSA) has led to an exponential growth in aggregate demand.
Journal: Review of Political Economy
Pages: 304-324
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2037932
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2037932
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:304-324
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# input file: CRPE_A_2015169_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Daniela Tavasci
Author-X-Name-First: Daniela
Author-X-Name-Last: Tavasci
Author-Name: Luigi Ventimiglia
Author-X-Name-First: Luigi
Author-X-Name-Last: Ventimiglia
Title: The Prospects of the Italian Economy in the Centenary of Paolo Sylos Labini's Birth
Abstract:
The hundredth anniversary of Paolo Sylos Labini's birth seems an excellent opportunity to celebrate his contribution, particularly in light of the European post-COVID-19 extraordinary measures. These revived debates around the relationship between state and market, structural inequalities within Italy, and austerity (Papadimitriu et al. 2020; Palma 2020; Variato et al. 2020; Canelli et al. 2021). Inspired by a reflection on Sylos Labini's assessment of the Italian increasing debt/low-investment/low-growth decline, our rationale is the need to re-focus away from debt towards investment and growth. We compare this alternative focus to the theories underpinning austerity, including the Ricardian equivalence, the crowding-out argument, and the bond vigilantes hypothesis. Our work relies on wide-ranging data analysis and concentrates on three econometric models: a vector error correction model to analyse the relationship between public debt and GDP in the long-run; a vector auto-regression model, which analyses the relationship between GDP and the components of debt, interest rates spread, and exchange rate in the short-run; and an additional vector auto-regression model to examine the primary balance components, including fiscal spending and revenues. We find that Sylos Labini's warnings and his view of the relation between economic development and civil development are no less relevant today.
Journal: Review of Political Economy
Pages: 202-232
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2021.2015169
File-URL: http://hdl.handle.net/10.1080/09538259.2021.2015169
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# input file: CRPE_A_2075118_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Thomas R. Michl
Author-X-Name-First: Thomas R.
Author-X-Name-Last: Michl
Title: The Logic of Capital: An Introduction to Marxist Economic Theory
Journal: Review of Political Economy
Pages: 373-376
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2075118
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2075118
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:373-376
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# input file: CRPE_A_2030586_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Ali Fakih
Author-X-Name-First: Ali
Author-X-Name-Last: Fakih
Author-Name: Yara Sleiman
Author-X-Name-First: Yara
Author-X-Name-Last: Sleiman
Title: The Gender Gap in Political Participation: Evidence from the MENA Region
Abstract:
This paper investigates gender differences in political participation across 10 countries in the Middle East and North Africa (MENA) region using data from the World Values Survey (2010-2014). A distinction is made between two different participation types, institutional and non-institutional. We use an ordered logit model to evaluate whether the gender gap in both forms is mediated by demographic and attitudinal controls and assess whether variables influencing participation affect men and women differently. We find that most socioeconomic resources and political attitudes are correlated with higher levels of participation. However, the analysis reveals a persistent gender gap that can be generalized to the entire spectrum of engagement in the MENA, with larger gaps for less institutionalized forms.
Journal: Review of Political Economy
Pages: 154-177
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2030586
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2030586
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# input file: CRPE_A_2037931_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Alban Mathieu
Author-X-Name-First: Alban
Author-X-Name-Last: Mathieu
Title: International Political Economy and Exchange Rate Regime: A Question of Sustainability
Abstract:
The aim of this article is to provide an alternative framework to the theory of optimum currency areas by mobilizing the concept of sustainability. If the success of a fixed exchange rate regime is, above all, a political choice, economic growth can be considered a minimal economic condition and a good indicator of the success of a fixed exchange rate regime. We conclude that specific institutional settings allow economic growth to occur and can be defined as sustainable. We determine three configurations that share the same conclusion: sustainability happens when states have macroeconomic autonomy, whereas political and fiscal integration are necessary conditions. The first configuration refers to a monetary union with high capital mobility. The second one corresponds to a fixed but adjustable exchange rate regime with low capital mobility, while the third configuration is an application of Keynes’ plan with high capital mobility.
Journal: Review of Political Economy
Pages: 256-267
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2037931
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2037931
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:256-267
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# input file: CRPE_A_2018193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Theofanis Papageorgiou
Author-X-Name-First: Theofanis
Author-X-Name-Last: Papageorgiou
Author-Name: Panayotis G. Michaelides
Author-X-Name-First: Panayotis G.
Author-X-Name-Last: Michaelides
Title: Abstraction in the Marxian Oeuvre: Tendencies, Laws and Dialectics
Abstract:
Abstraction has taken very different terminologies revolving around the relation between reality and thought. In this framework, the debate on the issue of crisis is fueled by different, often one-sided and ideologically contradictive, uses of abstraction. In this work, we attempt to show that without an adequate grasp of the role of abstraction, and without sufficient flexibility in making the needed abstractions, most interpreters of Marx — Marxists and non-Marxists alike — have constructed versions of his theories that suffer in their very form from the same rigidity, inappropriate focus, and one-sidedness that Marx saw in bourgeois ideology. In this framework, we argue that Marx's abstraction is not ‘other things equal', i.e. ceteris paribus, but ‘nothing equal'. In the same vein, we argue that the capitalist process is a ‘non-equilibrium' process. Instead of ‘laws', we argue that tendencies and contradictions may be found in the Marxian oeuvre. Furthermore, we argue that the isolation of the third Volume of Marx's capital from the rest of the Marxian oeuvre facilitates the interpretation of Marx's method in terms of ‘mechanical materialism’.
Journal: Review of Political Economy
Pages: 233-255
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2021.2018193
File-URL: http://hdl.handle.net/10.1080/09538259.2021.2018193
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:233-255
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# input file: CRPE_A_2041311_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Natalia Bracarense
Author-X-Name-First: Natalia
Author-X-Name-Last: Bracarense
Author-Name: Paulo Afonso Bracarense Costa
Author-X-Name-First: Paulo Afonso
Author-X-Name-Last: Bracarense Costa
Title: Green Jobs: Sustainable Path for Environmental Conservation and Socio-Economic Stability and Inclusion
Abstract:
The 2008 economic crisis expanded the discussion about stabilization policies beyond its usual academic circles. Such concerns seem even more eminent now as, amidst the COVID-19, governments around the world search for solutions to the looming crisis. John Maynard Keynes, Michal Kalecki, and Hyman Minsky have long inspired those who believe that the private sector is unable to maintain long-lasting stability and, even less so, full employment. The remedy relies not in the indirect mechanisms of monetary fine-tuning, but rather on the direct means of fiscal policy. Less acknowledged, however, is that despite of their different approaches, neither of these three authors considered conventional pump-priming fiscal policy a direct policy. Considerations of this nature have, nonetheless, been pursued by a group of post-Keyensian/neo-Kaleckian economists—who argue that discussions about economic stability should be coupled with concerns related to the broader social and environmental systems. To contribute to the newly intensified push of a post-Keynesian/neo-Kaleckian ecological economics, the paper introduces a metric for green jobs, using non-dichotomous measurements as proposed by ‘fuzzy logic’, as a tool to operationalize an ecological job-guarantee program.
Journal: Review of Political Economy
Pages: 351-372
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2041311
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2041311
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:351-372
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# input file: CRPE_A_2146447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Antoine Missemer
Author-X-Name-First: Antoine
Author-X-Name-Last: Missemer
Author-Name: Marco P. Vianna Franco
Author-X-Name-First: Marco P.
Author-X-Name-Last: Vianna Franco
Title: Municipal Housekeeping and the Origins of the Economics of the Urban Environment (1900s–1920s)
Abstract:
In the early 20th century, municipal housekeeping became popular as a natural science-based endeavour focused on the improvement of living conditions in urban areas, especially in terms of public sanitation, water quality, satisfaction of basic needs, and access to natural amenities. It has been well documented in social history as a movement led by middle-class women advocating for higher standards of public health and social order in American cities. This article explores another dimension of municipal housekeeping: its contributions to economic thought and how it amounted to an early economics of the urban environment. It analyses the relationship between municipal housekeeping and other important economic currents, such as home economics and conservation economics, before shedding light on the economic content of its proposals regarding sanitation, community welfare, and public utility regulations. It concludes that municipal housekeeping, rather than a merely derivative intellectual current, constitutes an original source of inspiration for public and particularly environmental economists interested in intersections with the tenets of the natural sciences, from chemistry to ecology.
Journal: Review of Political Economy
Pages: 97-115
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2146447
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2146447
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# input file: CRPE_A_2181063_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Pedro N. Teixeira
Author-X-Name-First: Pedro N.
Author-X-Name-Last: Teixeira
Title: Between Ethics and Science: Economic and Political Arguments Against Child Labor in the Progressive Period
Abstract:
Child labor was a very important issue during the progressive period, which was characterized by the development of social policies, especially regarding the welfare of women and children. The arguments against child labor were not restricted to a moral point of view but attempted to point out the economic dimensions, with several prominent economists of the progressive period becoming involved in this debate. In this paper, we will analyze the way economists in the progressive period approached the issue of child labor, notably through the views of two leading economists of the period that were particularly concerned with this problem, one representing the Protestant economics’ strand (Richard T. Ely) and the other the Catholic economics’ one (John A. Ryan). We explore the convergence and the nuances in the positions of these two economists in the criticisms against child labor. Finally, we briefly present that important role of several social organizations advocating legislation curbing child labor and the way these networks converged in their activities with progressive economists in disseminating the arguments against child labor.
Journal: Review of Political Economy
Pages: 76-96
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2023.2181063
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2181063
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:1:p:76-96
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# input file: CRPE_A_2030946_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Lorenzo Nalin
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Nalin
Author-Name: Giuliano Toshiro Yajima
Author-X-Name-First: Giuliano Toshiro
Author-X-Name-Last: Yajima
Title: Balance Sheet Effects in a Financialized Environment: A Stock-Flow Consistent Framework for Mexico
Abstract:
Exchange rate volatility, growing foreign corporate debt, and decreasing private investment ratio are among the consequences of financialization experienced by developing countries such as Mexico. The present work analyses the combined effect of these three factors using a Stock Flow Consistent (SFC) model. It analytically explores the balance sheet effect in the non-financial corporate sector; higher foreign debt would affect private investment after episodes of real currency depreciation. To explore such mechanisms, we simulate the commodity price cycle of the early 2000s alongside the shifts in the stance of the FED in the aftermath of the Global Financial Crisis. The scenario analysis points to a hysteresis of the Real Exchange Rate (RER) and an increase in foreign debt level.
Journal: Review of Political Economy
Pages: 268-288
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2030946
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2030946
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# input file: CRPE_A_2142403_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231203T183118 git hash: be90730853
Author-Name: Sunanda Sen
Author-X-Name-First: Sunanda
Author-X-Name-Last: Sen
Title: Capital Movements and Corporate Dominance over Latin America: Reduced Growth and Increased Instability
Journal: Review of Political Economy
Pages: 385-388
Issue: 1
Volume: 36
Year: 2024
Month: 01
X-DOI: 10.1080/09538259.2022.2142403
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2142403
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# input file: CRPE_A_2318956_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Teresa Ghilarducci
Author-X-Name-First: Teresa
Author-X-Name-Last: Ghilarducci
Author-Name: Siavash Radpour
Author-X-Name-First: Siavash
Author-X-Name-Last: Radpour
Author-Name: Jessica Forden
Author-X-Name-First: Jessica
Author-X-Name-Last: Forden
Title: No Rest for the Weary: Measuring the Changing Distribution of Retirement Wealth in the United States
Abstract:
Since 1992 wealth for the bottom 90 percent of households nearing retirement has fallen. The only source of wealth helping the bottom 90 percent is Social Security. Despite pro savings policies and generous tax breaks for savings, the share of the bottom 50 percent having any retirement account didn’t change in 20 years — 46 percent in 1992 and 47 percent in 2016. Even the middle class suffered; the share of the next 40 percent with retirement savings fell from 85 percent in 1992 to a low of 71 percent in 2016. Housing ownership increased a bit for the bottom 50 percent but fell among the middle class and upper middle class. Home equity for the working and middle class fell. Using SCF and HRS data over 20 years, we find the bulk of working-class wealth is government social insurance. Economists should not exclude social insurance from wealth calculations. We find social insurance is the most important source of wealth for most families. Government policies and institutions have failed wealth building for most American households with workers.
Journal: Review of Political Economy
Pages: 461-480
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2318956
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2318956
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:461-480
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# input file: CRPE_A_2319466_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Richard McGahey
Author-X-Name-First: Richard
Author-X-Name-Last: McGahey
Title: The Price of Wealth: Scarcity and Abundance in an Unequal World
Abstract:
This article reviews and summarizes six economics papers written as part of a project bringing together economists and anthropologists on conceptions and analyses of wealth. The project paired economists and anthropologists in order to illuminate differences in method, analytic technique, and disciplinary framings between the two fields. Anthropologists comment on the economists’ papers from their discipline’s point of view. The overall project was intended to increase understanding and to encourage future collaborations and learning between the two fields.
Journal: Review of Political Economy
Pages: 389-397
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2319466
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2319466
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:389-397
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# input file: CRPE_A_2319464_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Gustav Peebles
Author-X-Name-First: Gustav
Author-X-Name-Last: Peebles
Title: Commentary on Ghosh ‘Relational Inequality and Economic Outcomes’
Journal: Review of Political Economy
Pages: 456-460
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2319464
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2319464
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# input file: CRPE_A_2242210_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jayati Ghosh
Author-X-Name-First: Jayati
Author-X-Name-Last: Ghosh
Title: Relational Inequality and Economic Outcomes: A Consideration of the Indian Experience
Abstract:
The study of inequality by economists has largely focussed on distributive inequalities of various kinds. The focus on different dimensions of distributive inequality in access and outcomes is welcome. However, it is also important to consider relational inequalities and power imbalances, which economists typically consider to be the domain of sociology, anthropology and related disciplines. Many economic processes cannot be understood without analysing the underlying relational inequalities, which can reveal much about economic processes and associated policies. Some examples from the Indian experience, specifically relating to power imbalances created by gender and caste differentiation, indicate how this can play out. These are not simply ‘traditional social forms’ that are in opposition to or contradictory with capitalist accumulation. Rather, they are crucial in enabling segmented labour markets and enabling extractivist patterns of accumulation, on which recent Indian economic growth has been dependent.
Journal: Review of Political Economy
Pages: 444-455
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2023.2242210
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2242210
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# input file: CRPE_A_2178843_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Nina Eichacker
Author-X-Name-First: Nina
Author-X-Name-Last: Eichacker
Title: A Political Economy of Fiscal Space: Political Structures, Bond Markets, and Monetary Accommodation of Government Spending Potential in the Core and Periphery
Abstract:
In times of economic crisis, academics, policy-makers, and pundits often debate the correct level and best use of government debt. This paper argues structural political and economic factors grant core economies more fiscal space than peripheral economies. While the federal governments of the US, Germany, and other core economies may easily issue and sell debt in private markets, smaller economies, both municipalities within countries, and countries in the global periphery, are more vulnerable to demand fluctuations. All economies may benefit from explicit commitments by monetary authorities to resume their historic roles as governments’ banks, especially during crises. By highlighting present political constraints, monetary structures, and market factors that may inhibit governments’ successful placement of bonds, this paper deepens present debate about the potential feasibility of functional finance to facilitate fiscal activity, even in unprecedented times.
Journal: Review of Political Economy
Pages: 546-564
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2023.2178843
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2178843
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# input file: CRPE_A_2062964_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Chandrasekaran Saratchand
Author-X-Name-First: Chandrasekaran
Author-X-Name-Last: Saratchand
Title: A Macro-Theoretic Exploration of Some Covid-19 Induced Constraints on Economic Policy
Abstract:
The Covid-19 pandemic has spawned a crisis whose dimensions encompass the domains of health and the economy. The latter is on account of the use of non-pharmaceutical interventions such as lockdowns in order to deal with a highly contagious disease. Though some vaccines have emerged, lockdowns of varying degrees are still required since geographical coverage of vaccines is uneven, the protection afforded by vaccines is only for a finite period of time and new variants may escape existing vaccines. This provides the context within which economic policy could intervene. Monetary policy is either unavailable or ineffective, especially when the neoliberal project is hegemonic. Therefore, the specific policy instrument that tends to be utilised is fiscal policy wherein it is postulated that the government tries to achieve a target degree of capacity utilisation. It is demonstrated within the framework of a heterodox macroeconomic model that considerations involving macroeconomic stability (and political economy more generally) may cause this target to be below what is warranted by public health requirements. The paper concludes with some suggestions for future work in this research direction.
Journal: Review of Political Economy
Pages: 776-791
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2062964
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2062964
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:776-791
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# input file: CRPE_A_2062961_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Emilio Carnevali
Author-X-Name-First: Emilio
Author-X-Name-Last: Carnevali
Author-Name: Francesco Ruggeri
Author-X-Name-First: Francesco
Author-X-Name-Last: Ruggeri
Author-Name: Marco Veronese Passarella
Author-X-Name-First: Marco Veronese
Author-X-Name-Last: Passarella
Title: Inequality and Exchange Rate Movements in an Open-Economy Macroeconomic Model
Abstract:
This article presents a complete macroeconomic (SFC) model to study income and wealth distribution in an open economy. We argue that exchange rates and the stock of foreign debt play a major role in shaping inequality across and within countries. Using the ‘relative income hypothesis’, we show that debt-financed consumption of low-income households can affect both total income and the disposable income of high-income households in the medium run. In addition, while higher inequality is detrimental to the domestic economy, it can benefit trading partners.
Journal: Review of Political Economy
Pages: 722-760
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2062961
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2062961
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:722-760
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# input file: CRPE_A_2318957_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ihsaan Bassier
Author-X-Name-First: Ihsaan
Author-X-Name-Last: Bassier
Author-Name: Vimal Ranchhod
Author-X-Name-First: Vimal
Author-X-Name-Last: Ranchhod
Title: Can Minimum Wages Effectively Reduce Poverty under Low Compliance? A Case Study from the Agricultural Sector in South Africa
Abstract:
What were the effects of a 52 per cent increase in the minimum wage in the agricultural sector in South Africa in 2013? We estimate the short run effects of this policy change on the income, employment, and poverty rate of farmworkers, using individual-level panel data from the Quarterly Labour Force Surveys (QLFS). Before the implementation date, 90 per cent of farmworkers were paid below the new minimum wage level. We find that the wage gain of farmworkers is strongly quadratically related to pre-implementation wages, suggesting lower compliance as the gap between the minimum and the pre-implementation wage increases. We estimate that farmworkers received a median wage increase of 9 per cent as a result of the policy, and we find no evidence of job losses. Overall, farmworkers were 7 per cent less likely to have household income per person below the poverty line. One possible explanation for these outcomes is that endogenous compliance may mitigate against unemployment effects. While the minimum wage literature is large, our paper adds to the small subset of this literature on large increases, partial compliance, and poverty effects.
Journal: Review of Political Economy
Pages: 398-419
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2318957
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2318957
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# input file: CRPE_A_2159627_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Fatih Kırşanlı
Author-X-Name-First: Fatih
Author-X-Name-Last: Kırşanlı
Title: The Economics of the Middle East: A Comparative Approach
Journal: Review of Political Economy
Pages: 879-882
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2159627
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2159627
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# input file: CRPE_A_2062959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Santiago José Gahn
Author-X-Name-First: Santiago José
Author-X-Name-Last: Gahn
Title: Interest and Profit: An Empirical Assessment of the Monetary Theory of Distribution for the Euro Area
Abstract:
Several authors, especially those who share a Classical–Keynesian point of view, argue that the interest rate determines the rate of profit in the long run. Considering the eleven founding economies of the euro area, I find that, adjusted for the rate of growth of gross national income, there is a positive long-term relationship between the real interest rate and the net rate of profit. The results are confirmed even when I estimate a model with nominal interest rates, inflation, and a yield curve. These results imply that the European Central Bank (ECB), when deciding monetary policy, is not neutral in determining income distribution.
Journal: Review of Political Economy
Pages: 685-701
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2062959
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2062959
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:685-701
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# input file: CRPE_A_2319467_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Caroline E. Schuster
Author-X-Name-First: Caroline E.
Author-X-Name-Last: Schuster
Title: Commentary on Kvangraven and Styve, ‘The Hierarchies of Global Finance’
Journal: Review of Political Economy
Pages: 528-532
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2319467
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2319467
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# input file: CRPE_A_2318962_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Grieve Chelwa
Author-X-Name-First: Grieve
Author-X-Name-Last: Chelwa
Author-Name: Mashekwa Maboshe
Author-X-Name-First: Mashekwa
Author-X-Name-Last: Maboshe
Author-Name: Darrick Hamilton
Author-X-Name-First: Darrick
Author-X-Name-Last: Hamilton
Title: The Racial Wealth Gap in South Africa and the United States
Abstract:
We present evidence on the Black–White Racial Wealth Gap in South Africa and compare it to the well-known patterns of the same gap in the United States. We find that the patterns in the overall racial wealth gap are similar between the two countries. In South Africa, the typical Black household owns 5 per cent of the wealth held by the typical White household. In the US, the typical Black household owns 6 per cent of the wealth held by the typical White household. In both countries, a racial wealth gap exists at different levels of education and income. The fact that the racial wealth gap in the US is similar to that of a country that recently emerged from apartheid is a sobering indictment. Conversely, the US presents a grim outlook of the future course of the racial wealth gap in South Africa, especially in the absence of economic redress. The similarities in the evidence between the two countries points to the potential utility of using the Identity Group Stratification framework for understanding racial wealth dynamics in South Africa, an approach that is absent in the literature.
Journal: Review of Political Economy
Pages: 423-440
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2318962
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2318962
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# input file: CRPE_A_2159629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Stefano Lucarelli
Author-X-Name-First: Stefano
Author-X-Name-Last: Lucarelli
Title: Crisis, Inequalities and Poverty
Journal: Review of Political Economy
Pages: 882-885
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2159629
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2159629
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:882-885
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# input file: CRPE_A_2319462_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Nishita Trisal
Author-X-Name-First: Nishita
Author-X-Name-Last: Trisal
Title: Commentary on Bassier and Ranchhod, ‘Can Minimum Wages Effectively Reduce Poverty Under Low Compliance? A Case Study from the Agricultural Sector in South Africa’
Journal: Review of Political Economy
Pages: 420-422
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2319462
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2319462
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# input file: CRPE_A_2318959_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Isabelle Guérin
Author-X-Name-First: Isabelle
Author-X-Name-Last: Guérin
Author-Name: G. Venkatasubramanian
Author-X-Name-First: G.
Author-X-Name-Last: Venkatasubramanian
Title: Debt and the Politics of Numbers: Hegemonic Numbers, Political Numbers, Ordinary Numbers
Abstract:
Numbers are both shaped by and constitutive of a certain vision of the world, and household debt is no exception. Financialized capitalism relies on hegemonic numbers that serve the economic and political interests of state government and the financial industry, which see and measure debt as a market ripe for development. In the face of this, it is crucial to build alternative numbers. The political numbers of debt conceive debt as a power relation, and quantify the degrees of financial exploitation that hegemonic numbers are blind to. Ordinary numbers seek to reflect what matters the most to ordinary people. They conceive of debt as a relationship of social interdependence, which can be a source of power, hierarchy and exploitation, but also of mutual aid, reciprocity and dignity. Far from functioning in silos, hegemonic numbers, political numbers and ordinary numbers have shifting boundaries. This article, based on twenty years of research in India conducted by a Franco-Indian team of economists and anthropologists, exposes and contributes to the politics of numbers in the field of debt.
Journal: Review of Political Economy
Pages: 481-499
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2318959
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2318959
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# input file: CRPE_A_2114290_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Sergio Rossi
Author-X-Name-First: Sergio
Author-X-Name-Last: Rossi
Title: The Political Benefits of ‘Unconventional’ Monetary Policies in Times of Crisis
Abstract:
Since the global financial crisis burst in 2008, central bankers have been at centre stage in addressing its negative consequences across the economic systems of many countries. This has been further noticed in the aftermath of the pandemic crisis that erupted at the beginning of 2020 at global level, when a number of governments did intervene also in a rather ‘unconventional’ way to support economic activity through public spending. In both circumstances, central bankers have been in a position to satisfy private interests of the relevant stakeholders even though this has been affecting both income and wealth distribution against the common good. This paper investigates the political benefits that these ‘unconventional’ policy interventions have elicited in advanced economies to point out the political and distributional consequences of them, suggesting an alternative monetary policy stance that considers climate-related issues.
Journal: Review of Political Economy
Pages: 533-545
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2114290
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2114290
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# input file: CRPE_A_2238997_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Massimo Pivetti
Author-X-Name-First: Massimo
Author-X-Name-Last: Pivetti
Title: A Note on the Real Effects of Interest Rate Policy and Its Impact on Inflation
Abstract:
The interest rate is viewed in this note as a monetary phenomenon, subject to a wide range of policy objectives and constraints, which contributes to determine activity levels principally through its effects on income distribution. The impact of interest-rate policy on inflation is also analysed, both in the light of the fact that the rate of interest constitutes a component of normal production costs and of the repercussions of its changes on employment. The note finally discusses the implications of the arguments put forward for the status of the central bank and capital control.
Journal: Review of Political Economy
Pages: 600-609
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2023.2238997
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2238997
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# input file: CRPE_A_2217776_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Emilio Carnevali
Author-X-Name-First: Emilio
Author-X-Name-Last: Carnevali
Author-Name: Matteo Deleidi
Author-X-Name-First: Matteo
Author-X-Name-Last: Deleidi
Author-Name: Riccardo Pariboni
Author-X-Name-First: Riccardo
Author-X-Name-Last: Pariboni
Author-Name: Marco Veronese Passarella
Author-X-Name-First: Marco
Author-X-Name-Last: Veronese Passarella
Title: Economy-Finance-Environment-Society Interconnections In a Stock-Flow Consistent Dynamic Model
Abstract:
This work takes inspiration from four theoretical strands: recent developments in ecological macroeconomics; the Schumpeterian framework of evolutionary economics that emphasises the entrepreneurial role of the State; the stock-flow consistent approach to macroeconomic modelling; and the supermultiplier model. Building upon these approaches, we develop a formal model that reproduces key interactions between the economy, the financial sector, the ecosystem and the society. We test and assess the effects of several fiscal policies. We find that, in principle, mission-oriented innovation policies are the most effective option in supporting innovation and growth, while reducing income inequality. However, lacking a ‘green’ and progressive taxation system, they are unlikely to reverse the current trend in atmospheric temperature.
Journal: Review of Political Economy
Pages: 844-878
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2023.2217776
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2217776
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# input file: CRPE_A_2189006_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Jalal Qanas
Author-X-Name-First: Jalal
Author-X-Name-Last: Qanas
Author-Name: Malcolm Sawyer
Author-X-Name-First: Malcolm
Author-X-Name-Last: Sawyer
Title: ‘Independence’ of Central Banks and the Political Economy of Monetary Policy
Abstract:
The notion of an ‘independent’ central bank has dominated monetary policy debates for the past three decades. The arguments for the political independence of central banks are closely related to the adoption of ‘inflation targeting’. The arguments for an independent central bank are based on the ‘credibility’ of the ‘conservative’ central bank in comparison to government decision making. The independence of a central bank has been a matter of independence from government but not independence from the grip of the ‘new consensus in macroeconomics’ nor from the interests of the banking and financial sector. That independence has also supported a lack of co-ordination between monetary and fiscal policies, diminishing the effectiveness of macroeconomic policies. In addition, there remain doubts about the effectiveness of ‘inflation targeting’ on the achievement of low inflation. The policy mandates of central banks have begun to shift towards financial stability and paying attention to issues of inequality and the climate emergency.
Journal: Review of Political Economy
Pages: 565-580
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2023.2189006
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2189006
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# input file: CRPE_A_2062960_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Natalia Bracarense
Author-X-Name-First: Natalia
Author-X-Name-Last: Bracarense
Title: Center and Periphery: An Original Institutional Economics Analysis of Raúl Prebisch’s Structuralism
Abstract:
The present article focuses on Raúl Prebisch’s center and periphery framework, connecting his early, mid-career, and later work to cast a different light on one of his most enduring contributions. Using an original institutional economics approach, the article shows that Prebisch held a structuralist perspective throughout his career, but while early on he maintained a standard structuralist position, by the 1960s Prebisch embraced a less rigid version of structuralism, understanding the relationship between center and periphery through a multi-layered analysis. A movement in such direction enriches economic theory, creating a dynamic framework that views social, economic, and political transformation as a result of interactive actions (Lawson [1997]. Economics and Reality. London: Routledge) between agents and structures.
Journal: Review of Political Economy
Pages: 702-721
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2062960
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2062960
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# input file: CRPE_A_2014220_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Virgile Chassagnon
Author-X-Name-First: Virgile
Author-X-Name-Last: Chassagnon
Author-Name: Guillaume Vallet
Author-X-Name-First: Guillaume
Author-X-Name-Last: Vallet
Title: The Societal Responsibility of Banks: A Case Study of Three Swiss Alternative Banks
Abstract:
The ‘Great Recession’ of 2008 exposed banks and banking systems as frail economic entities, posing a threat to the real economy and society at large. This context of near economic collapse made clear the societal responsibility of banks to conform to business ethics respectful of both individual and collective interests. We argue that banks are primarily institutions of capitalism that must rely on resilient systems of reasonable values. The paper focuses on three Swiss banks to determine their ethical properties and their social ends. Such a societal dimension that we thrust on banks implies rethinking the responsibility of banks to society and their contributions to the public interest.
Journal: Review of Political Economy
Pages: 658-684
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2021.2014220
File-URL: http://hdl.handle.net/10.1080/09538259.2021.2014220
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:658-684
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# input file: CRPE_A_2196949_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rod O’Donnell
Author-X-Name-First: Rod
Author-X-Name-Last: O’Donnell
Title: Logic and Economics II: Pure Neoclassicism, Part A
Abstract:
This paper investigates Pure Neoclassical economics from a logical standpoint. After discussing validity criteria, it focuses on theoretical individualism, a core foundation of Neoclassical theorizing in all its variants. Careful analysis of this doctrine reveals that, while mathematically valid, it generates many propositional contradictions in all economic and social science theories grounded upon it.
Journal: Review of Political Economy
Pages: 634-657
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2023.2196949
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2196949
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Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:634-657
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# input file: CRPE_A_2319465_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Amita Baviskar
Author-X-Name-First: Amita
Author-X-Name-Last: Baviskar
Title: Commentary on Guérin and Venkatasubramanian ‘Debt and the Politics of Numbers’
Journal: Review of Political Economy
Pages: 500-503
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2319465
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2319465
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# input file: CRPE_A_2166729_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Enrico Sergio Levrero
Author-X-Name-First: Enrico Sergio
Author-X-Name-Last: Levrero
Title: The Taylor Rule and its Aftermath: An Interpretation Along Classical-Keynesian Lines
Abstract:
The aim of this paper is to assess to what extent the Taylor rule can be considered an appropriate representation of the tendency of central banks to react to inflation. After an overview of the origin and use of the Taylor rule, the paper stresses some difficulties in its implementation and the limits of its interpretation by the New Consensus models. Specifically, the inherent difficulties stemming from the notion and estimates of a benchmark interest rate determined by ‘productivity and thrift’ are pointed out. We then move on to advance an alternative interpretation of the Taylor rule along Classical-Keynesian lines. In this context, inflation is fuelled by conflicting claims on income distribution and the rule will be interpreted, as it is in actual fact, as a flexible and non-mechanical benchmark for monetary policies which will be seen to affect the division of product between wages and profits.
Journal: Review of Political Economy
Pages: 581-599
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2023.2166729
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2166729
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# input file: CRPE_A_2242209_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Ingrid Harvold Kvangraven
Author-X-Name-First: Ingrid Harvold
Author-X-Name-Last: Kvangraven
Author-Name: Maria Dyveke Styve
Author-X-Name-First: Maria
Author-X-Name-Last: Dyveke Styve
Title: The Hierarchies of Global Finance: An Anti-Disciplinary Research Agenda
Abstract:
This article critically assesses the economics discipline’s capacity to capture the structural features and political economy implications of contemporary financial processes in the global South, with a particular focus on South Africa. Delving into the complexities of financial processes in South Africa, the article proposes an alternative, anti-disciplinary framework for understanding drivers and impacts of financial processes. We show how such an approach cannot simply be about adding social or political perspectives to mainstream economics, but rather about interrogating how we think about economic systems themselves, drawing on a variety of theoretical and disciplinary insights. This is about taking an open and holistic approach that centers history, power, structures, and social relations. With an issue such as finance, critical political economy approaches from a variety of disciplines allow us to see that finance cannot be separated from the wider economy or from the social relations it forms part of today and historically. This becomes particularly clear when considering how racial, gender and class relations both impact and are impacted by financial processes in South Africa. We conclude with recommendations for studies of changing financial processes globally and in the global South.
Journal: Review of Political Economy
Pages: 504-527
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2023.2242209
File-URL: http://hdl.handle.net/10.1080/09538259.2023.2242209
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# input file: CRPE_A_2063516_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Robert L. Vienneau
Author-X-Name-First: Robert L.
Author-X-Name-Last: Vienneau
Title: Characteristics of Labor Markets Varying with Perturbations of Relative Markups
Abstract:
This article examines a model of long-period positions with markup pricing. The variation in certain characteristics of the wage frontier with perturbations of relative markups is illustrated. This analysis provides a demonstration of the emergence of the reswitching of techniques and of capital reversing, for example, in non-competitive markets.
Journal: Review of Political Economy
Pages: 827-843
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2063516
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2063516
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# input file: CRPE_A_2062962_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Emanuel Reis Leão
Author-X-Name-First: Emanuel Reis
Author-X-Name-Last: Leão
Author-Name: Pedro Reis Leão
Author-X-Name-First: Pedro Reis
Author-X-Name-Last: Leão
Title: The Paradox of Investment: A Contribution to the Theory of Demand-Led Economic Growth
Abstract:
This paper has two purposes. The first is to argue that aggregate investment may be subject to the following paradox. A rise in investment decided by firms to correct overutilization of their production capacity may generate less capacity than demand — and hence cause a paradoxical rise in overutilization. This will in turn lead to even more investment, and so on — the result being the self-sustained rises in output that characterize economic expansions. The second purpose of the paper is to put forward one reason why the above paradox of investment will lose strength as expansions progress, and may eventually disappear leading to their end. That reason may be summarized as follows. As net investment increases along expansions, the effect of investment on production capacity rises relative to its effect on demand — and, as a result, the rise in utilization slows down. Moreover, as net investment eventually grows to a high level, the effect of investment on capacity may become bigger than its effect on demand. If this happens, utilization will stop rising and start falling, and thus the same may happen with investment and output.
Journal: Review of Political Economy
Pages: 761-775
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2062962
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2062962
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# input file: CRPE_A_2319463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Kimberly Chong
Author-X-Name-First: Kimberly
Author-X-Name-Last: Chong
Title: Commentary on ‘The Racial Wealth Gap in South Africa and the United States’ by Chelwa, Maboshe and Hamilton
Journal: Review of Political Economy
Pages: 441-443
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2024.2319463
File-URL: http://hdl.handle.net/10.1080/09538259.2024.2319463
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# input file: CRPE_A_2063513_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Massimo Cingolani
Author-X-Name-First: Massimo
Author-X-Name-Last: Cingolani
Title: Public and Private Financing of Sustainable Development Goals (SDGs)
Abstract:
The market will undersupply sustainable development goals (SDGs) due to their substantial public good element. SDG investments should be socially evaluated at accounting prices, for which alternative estimation approaches exist, amongst which political arbitrage is needed. Money should also be integrated in the evaluation, as assets not backed by real wealth creation risk having a higher return in cash than SDGs at the time of the initial finance of investment. Current estimates of SDG cost at market prices cumulated over 10 years vary between 20 and 80% of 2019 world GDP. Actual cost could be higher, possibly 125% of GDP, about one-sixth of the world’s private wealth. The PPP financing route can be followed mainly for larger projects and for a relatively limited portion of aggregate public investment needs. This confirms the public sector’s principal responsibility for actual implementation of SDGs, for which public budgets remain to be mobilised and coordinated at the scale needed.
Journal: Review of Political Economy
Pages: 792-826
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2063513
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2063513
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:792-826
Template-Type: ReDIF-Article 1.0
# input file: CRPE_A_2062963_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a
Author-Name: Rod O’Donnell
Author-X-Name-First: Rod
Author-X-Name-Last: O’Donnell
Title: Logic and Economics I: Synthesis Neoclassicism
Abstract:
Economic theory has two inter-related, desiderata — valid argumentation, and scientific explanations of relevant realities. This paper explores whether these objectives can be achieved with a widely-deployed form of Neoclassical economics. Applying arguments drawn from logic to this type of theorizing produces far-reaching conclusions.
Journal: Review of Political Economy
Pages: 610-633
Issue: 2
Volume: 36
Year: 2024
Month: 04
X-DOI: 10.1080/09538259.2022.2062963
File-URL: http://hdl.handle.net/10.1080/09538259.2022.2062963
File-Format: text/html
File-Restriction: Access to full text is restricted to subscribers.
Handle: RePEc:taf:revpoe:v:36:y:2024:i:2:p:610-633