A biodiversity-employment framework to protect biodiversity

Protecting biodiversity matters for the sustainability transition, but nothing yet seems to be able to halt the rate of biodiversity loss. The promotion of green jobs fuels questionable ideas, among which that there are green vs non-green jobs, and that the latter can be progressively replaced by green jobs. The option of developing jobs that could act to offset environmental damage is also attractive. Based on a social-ecological approach and the "strong sustainability" paradigm, the paper develops and tests a three-dimensional framework to highlight the complex and multifaceted relationship between employment growth and biodiversity enhancement. Three case studies are investigated using fi..

Heterodox Microeconomics

Aux origines nietzschéennes des ambiguïtés du concept d'entrepreneur : Schumpeter lecteur de Nietzsche

La figure de l'entrepreneur est aujourd'hui utilisée dans une grande variété de discours publics. Ce travail cherche à remonter à l'une des sources théoriques de la constitution de cette figure : la théorie de l'entrepreneur de Schumpeter en 1911. Ce retour montre que Schumpeter, dans son contexte intellectuel et théorique, est amené à importer une anthropologie philosophique en économie, celle de Nietzsche, auteur largement lu dans l'Autriche du début du XXème siècle. En transposant, à l'intérieur de sa théorie économique, certaines caractéristiques majeures du grand homme créatif nietzschéen dans la figure de l'entrepreneur, Schumpeter développe une explication origin..

Heterodox Microeconomics

Neoliberal governmentality, knowledge work, and thumos

Heterodox Microeconomics

A critical note on the scientific conception of economics: claiming for a methodological pluralism

Opponents of mainstream economics have not yet called attention to the lack of in-depth examination of the general scientific conception of modern economics. However, economic science cannot consistently fulfil the epistemological and ontological requirements of the scientific standards underlying this conception. What can be scientifically recognized as true cannot be answered, neither through the actual ontological structure of the object of observation nor through a methodological demarcation. These limitations necessarily lead to the claim for both a pragmatic and a radical methodological pluralism.

Heterodox Microeconomics

Method and scope in Joseph A. Schumpeter's economics: a pluralist perspective

This study aims to evaluate the ideas on the scope and method of economics of Joseph Schumpeter who is one of the important economists of the 20th century. The study consists of four sections: In the first section we underline the interesting points of his life to understand the roots, background, or 'vision' of his thought system. In the second section, we will examine his methodological views that he asserted in his first (but translated into English only in 2010) book. Third section will be concerned with his 'analysis of economics' which refers to his critics of Leon Walras's general equilibrium analysis (as static) and his own alternative (dynamics analysis of capitalist economies) abou..

Heterodox Microeconomics

Sustainability impact assessments of free trade agreements: A critical review

Trade negotiations are frequently accompanied by sustainability impact assessment (SIA) to evaluate the potential economic, environmental, social and human rights effects of a possible agreement. SIAs can help promote environmental protection, and support the better integration of women, vulnerable populations, and small businesses into the global economy, as well as address growing concerns from civil society. They provide a critical opportunity for dialogue among stakeholders and trade policy makers, and thereby help to rebuild confidence in the trading system. However, SIA approaches ‒ including economic modelling, qualitative causal chain analysis and stakeholder consultations ‒ each..

Heterodox Microeconomics

Altruistic Care for the Elderly: A Gender Perspective

Ageing society poses an increasing need for elderly care and the essential role of unpaid family care. Using time-use data of Thailand 2014/2015, we found significant gender gaps in providing eldercare across heterogenous groups. The novelty of this study is a measurement of altruism proxy, its gender bias to examine the effects of caregiver’s altruistic behavior on care provision and to explain the caregiving burden on women. Our analysis reveals that education has different effects on care among male and female caregivers, but not the employment status. The instrumental variable modelling reveals that reducing men’s paid work is unlikely to raise their time spent on eldercare..

Heterodox Microeconomics

Class Struggle in a Schumpeterian Economy

This study explores the conflict of interests between workers and capitalists in a Schumpeterian economy. We consider the limit on the market power of monopolistic firms as a policy instrument and derive its optimal levels for workers and capitalists, respectively. Because monopolistic profit provides incentives for innovation, workers may prefer monopolistic firms to have some market power, but they prefer less powerful monopolistic firms than capitalists. Workers' preferred level of monopolistic power is decreasing in their discount rate and increasing in innovation productivity and the quality step size. Capitalists' preferred level of monopolistic power is increasing in the quality step ..

Heterodox Microeconomics

Mujeres en la Economía: Diagnóstico cualitativo de la participación de las mujeres en las ciencias económicas en la Universidad de Chile

El siguiente documento se trata sobre lo que se conoce de la participación histórica de las mujeres en las ciencias económicas en términos generales y cómo se ha desarrollado en los espacios económicos, haciendo una revisión de organizaciones alrededor del mundo. Específicamente, Chile es de los países que cuentan con menos información al respecto, sin embargo, se presentan algunos datos y opiniones relevantes que describen el panorama. Con el fin de ampliar la información que se tiene del tema, este documento contiene un estudio cualitativo que se sustenta en relatos de mujeres que estudian o estudiaron Ingeniería Comercial mención Economía en la Facultad de Economía y Negoci..

Heterodox Microeconomics

Do patents really foster innovation in the pharmaceutical sector? Results from an evolutionary, agent-based model

The role of the patent system in the pharmaceutical sector is highly debated also due to its strong public health implications. In this paper we develop an evolutionary, agent-based model of the pharmaceutical industry to explore the impact of different configurations of the patent system upon innovation and competition. The model is able to replicate the main stylized facts of the drug industry as emergent properties. We perform policy experiments to assess the impact of different IPR regimes changing the breadth and length of patents. Results suggest that enlarging the extent and duration of patents yields adverse effects in terms of innovation outcomes, as well as of market competition an..

Heterodox Microeconomics

Beschäftigungsstrukturen und Potenziale der Bioökonomie in den deutschen Braunkohlerevieren

"The upcoming structural change in Lusatia, Central Germany and the Rhineland in the context of the coal phase-out offers the opportunity to develop attractive, bioeconomic business locations. This study analyzes the status quo and the development of the bioeconomy in the three active German lignite mining regions. The employment structures of the bioeconomy are evaluated and regional bioeconomy industries with specific potential are identified. Overall, about 10 percent of all employees in the regions can be directly attributed to the bioeconomy. Employment within the bioeconomy has developed dynamically in recent years. The proportion of skilled workers, including those with industrial and..

Heterodox Microeconomics

AgriLOVE: agriculture, land-use and technical change in an evolutionary, agent-based model.

The paper focuses on the capital structure of firms in their early years of operation. Through the lens of Pecking Order Theory, we study how the pursuit of innovation influences the reliance of firms on different types of internal and external finance. Panel analyses of data on 7,394 German start-ups show that innovation activities are relevant predictors of the start-ups' revealed preferences for finance, and that the nature of these effects on the type and order of financing sources depends on the degree of information asymmetries specific to research and development activities, human capital endowments, and the market introduction of new products and processes.

Heterodox Microeconomics

Learning about Unprecedented Events: Agent-Based Modelling and the Stock Market Impact of COVID-19

We model the learning process of market traders during the unprecedented COVID-19 event. We introduce a behavioral heterogeneous agents’ model with bounded rationality by including a correction mechanism through representativeness (Gennaioli et al., 2015). To inspect the market crash induced by the pandemic, we calibrate the STOXX Europe 600 Index, when stock markets suffered from the greatest single-day percentage drop ever. Once the extreme event materializes, agents tend to be more sensitive to all positive and negative news, subsequently moving on to close-to-rational. We find that the deflation mechanism of less representative news seems to disappear after the extreme event.

Heterodox Microeconomics

AgriLOVE: agriculture, land-use and technical change in an evolutionary, agent-based model.

This paper presents a novel agent-based model of land use and technological change in the agricultural sector under environmental boundaries, finite available resources and changing land productivity. In particular, we model a spatially explicit economy populated by boundedly-rational farmers competing and innovating to fulfill an exogenous demand for food, while coping with a changing environment shaped by their production choices. Given the strong technological and environmental uncertainty, farmers learn and adaptively employ heuristics which guide their decisions on engaging in innovation and imitation activities, hiring workers, acquiring new farms, deforesting virgin areas and abandoni..

Heterodox Microeconomics

Economic globalization and peace

For liberal economists, with the end of the Soviet Union, globalization is a step towards peace. However, war is still a threat for a humanity capable today of committing suicide, with nuclear and cybernetic weapons. The analyses of mercantilism do not disappear and the relations of force are still alive. The nature of "war" has changed. National security cannot be limited to the military, it also includes health, education, industrial risks or the protection of natural resources. The economy is both a cause of war and a means of armed conflict. Economic warfare uses weapons adapted to obtain a right or the exercise of a domination. As such, blockades, embargoes, boycotts or mercantilist-typ..

Heterodox Microeconomics

Communs fonciers pour des villes inclusives. Produire et sécuriser l’habitat populaire autour de la propriété partagée du sol : une diversité de modèles, leurs intérêts et leurs limites

Alors que la notion de « communs » fait l’objet d’un regain d’intérêt remarquable dans le monde académique, opérationnel ou politique depuis une dizaine d’années, peu de travaux se sont intéressés à la question du foncier pour l’habitat dans les villes des Suds. L’accès au sol urbain est pourtant un enjeu majeur pour les citadins de ces villes en pleine croissance, déterminant pour l’amélioration des conditions de vie quotidiennes et pour l’accès à un « logement convenable », selon la terminologie onusienne. L’approche dominante en matière de foncier urbain, orientée vers la pleine propriété privée et le marché libre, génère accaparement spéculatif..

Heterodox Microeconomics

Sustainability, Trust and Blockchain Applications: Best Practices and Fintech Prospects

Since the adoption of the SDGs in 2015, it has been a 5-year journey of trial and error experimentations all over the world to come up with innovative solutions beyond business-as-usual and get the job done. In this paper, we assess blockchain-backed solutions beyond the hype. While the technology has a promising potential to trigger disruptive innovations to fulfill the SGDs, it is not mature yet with many gaps in terms of approaches and tools to develop blockchain use cases, monitor and evaluate blockchain experiments, mitigate associated risks and ethical considerations while managing changes within organizations leading blockchain-powered platforms. It is only by filing these gaps that b..

Heterodox Microeconomics

The content and structure of reputation domains across human societies: a view from the evolutionary social sciences

Reputations are an essential feature of human sociality and the evolution of cooperation and group living. Much scholarship has focused on reputations, yet typically on a narrow range of domains (e.g. prosociality and aggressiveness), usually in isolation. Humans can develop reputations, however, from any collective information. We conducted exploratory analyses on the content, distribution and structure of reputation domain diversity across cultures, using the Human Relations Area Files ethnographic database. After coding ethnographic texts on reputations from 153 cultures, we used hierarchical modelling, cluster analysis and text analysis to provide an empirical view of reputation domains ..

Heterodox Microeconomics

¿Es la economía un sistema complejo en eterno desequilibrio?

Este artículo presenta una discusión general sobre algunas de las razones que se tienen para creer que una economía estaría mejor enmarcada en la teoría de los sistemas complejos (orgánicos) que en la teoría de los sistemas mecánicos de la escuela neoclásica dominante. Los sistemas complejos se caracterizan aquí por unidades heterogéneas que interactúan entre ellas, con trayectorias no-lineales, retroalimentaciones positivas, co-creación de regularidades, no-ergodicidad del sistema y constante evolución. De manera particular, se analizan los sistemas financieros y urbanos como ejemplos de problemas económicos que presentan estas características. *** This article presents a ge..

Heterodox Microeconomics

Exact and robust asymptotic solutions to nonlinear Hawkes processes: power law exponents of intensity distributions and methods

Hawkes point processes are first-order non-Markovian stochastic models of intermittent bursty dynamics with applications to physical, seismic, epidemic, biological, financial, and social systems. While accounting for positive feedback loops that may lead to critical phenomena in complex systems, the standard linear Hawkes process only describes excitative phenomena. To describe the co-existence of excitatory and inhibitory effects (or negative feedbacks), extensions involving nonlinear dependences of the intensity as a function of past activity are needed. However, such nonlinear Hawkes processes have been found hitherto to be analytically intractable due to the interplay between their non-M..

Heterodox Microeconomics

Physics-inspired analysis of the two-class income distribution in the USA in 1983-2018

The first part of this paper is a brief survey of the approaches to economic inequality based on ideas from statistical physics and kinetic theory. These include the Boltzmann kinetic equation, the time-reversal symmetry, the ergodicity hypothesis, entropy maximization, and the Fokker-Planck equation. The origins of the exponential Boltzmann-Gibbs distribution and the Pareto power law are discussed in relation to additive and multiplicative stochastic processes. The second part of the paper analyzes income distribution data in the USA for the time period 1983-2018 using a two-class decomposition. We present overwhelming evidence that the lower class (more than 90% of the population) is descr..

Heterodox Microeconomics

Stock Returns, Market Trends, and Information Theory: A Statistical Equilibrium Approach

This paper attempts to develop a theory of statistical equilibrium based on an entropy-constrained framework, that allow us to explain the distribution of stock returns over different market trends. By making use of the Quantal Response Statistical Equilibrium model (Scharfenaker and Foley, 2017), we recover the cross-sectional distribution of daily returns of individual company listed the S&P 500, over the period 1988-2019. We then make inference on the frequency distributions of returns by studying them over bull markets, bear markets and corrections. The results of the model shed light on the microscopic as well as macroscopic behavior of the stock market, in addition to provide insights ..

Heterodox Microeconomics

How Short is the Short Run in the Neo-Kaleckian Growth Model?

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 strength of the Keynesian stability condition and the the time of adjustment. Last, the model is calibrated for the US, showing that vicinity of the new equilibrium is reached after a period of about 4 quarters. By formall..

Heterodox Microeconomics

Théorie économique et philosophie de la mesure

Les théories économiques sont, le plus souvent, atemporelles ou inter-temporelles. Ce sont des théories de l'équilibre, un équilibre défini par des données dites réelles, préférences et technologies. Elles reposent sur la croyance en l'existence actuelle ou future d'un monde dénué de contradictions. Elles font de la neutralité de la monnaie et de la finance ou de leur disparition un objectif à atteindre. Ce faisant elles ignorent aussi bien l'instabilité intrinsèque des économies de marché que leur possible résilience. Le regard du philosophe Albert Camus nous invite à suivre une autre démarche, celle qui vise à reconnaître l'inévitabilité des contradictions en même..

Heterodox Microeconomics

Geography of Science: Competitiveness and Inequality

Using ideas and tools of complexity science we design a holistic measure of \textit{Scientific Fitness}, encompassing the scientific knowledge, capabilities and competitiveness of a research system. We characterize the temporal dynamics of Scientific Fitness and R\&D expenditures at the geographical scale of nations, highlighting patterns of similar research systems, and showing how developing nations (China in particular) are quickly catching up the developed ones. Down-scaling the aggregation level of the analysis, we find that even developed nations show a considerable level of inequality in the Scientific Fitness of their internal regions. Further, we assess comparatively how the competi..

Heterodox Microeconomics

Exploring the theoretical link between profitability and luxury emissions

Given that the richest 10% of the world population is responsible for more than half of global greenhouse gas emissions between 1990 and 2015, understanding the sources of excessive consumption of wealthier households and the ways to reduce them becomes especially important. Indeed, subsistence emissions are the emissions generated to satisfy basic needs, while luxury emissions are those generated to satisfy non-basic needs and that can, thus, be avoided or reduced. We make use of the ‘integrated wage-commodity sector’ model to study this issue. By using this model, we are able to connect the double role of luxury goods. On the one hand, they are the main reason why profits exist (togeth..

Heterodox Microeconomics

Bridging the short-term and long-term dynamics of economic structural change

In the short-term, economies shift preferentially into new activities that are related to ones they currently do. Such a tendency should have implications for the nature of an economy's long-term development as well. We explore these implications using a dynamical network model of an economy's movement into new activities. First, we theoretically derive a pair of coordinates that summarize long-term structural change. One coordinate captures overall ability across activities, the other captures an economy's composition. Second, we show empirically how these two measures intuitively summarize a variety of facts of long-term economic development. Third, we observe that our measures resemble co..

Heterodox Microeconomics

The network origins of aggregate fluctuations: a demand-side approach

We construct a model of cyclical growth with agent-based features designed to study the network origins of aggregate fluctuations from a demand-side perspective. In our model, aggregate fluctuations result from variations in investment behavior at firm level motivated by endogenously-generated changes in `animal spirits' or the state of long run expectations (SOLE). In addition to being influenced by their own economic conditions, firms pay attention to the performance of first-degree network neighbours, weighted (to differing degrees) by the centrality of these neighbours in the network, when revising their SOLE. This allows us to analyze the effects of the centrality of linked network neig..

Heterodox Microeconomics

Gender identity and relative income within household: Evidence from China

How does women's obedience to traditional gender roles affect their labour outcomes? To investigate on this question, we employ discontinuity tests and fixed effect regressions with time lag to measure how married women in China diminish their labour outcomes so as to maintain the bread-winning status of their husbands. In the first half of this research, our discontinuity test exhibits a missing mass of married women who just out-earn their husbands, which is interpreted as an evidence showing that these females diminish their earnings under the influence of gender norms. In the second half, we use fixed effect regressions with time lag to assess the change of a female's future labour outco..

Heterodox Microeconomics

Revisiting the informal aspects of the activity of countries, studied through Social Accounting and Socio-Demographic Matrices, with an application to Mozambique.

Approaches based on Social Accounting Matrices (SAMs) and Socio-Demographic Matrices (SDMs) will be presented as a way of capturing relevant networks of linkages and the corresponding multiplier effects, which can subsequently be used for modelling the activity of the countries to be studied. Emphasis will be placed on the activity of household unincorporated enterprises that will be identified with the informal sector. Based on methodological principles derived mainly from the works of Richard Stone, a proposal will be made to study the economic activity of Mozambique in 2016 in a matrix format, with special attention to the informal sector in general and, within this, forestry, and logging..

Heterodox Microeconomics