6 results on '"Post-Keynesian economics"'
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2. A Critical Review of the Rationale Approach to the Microfoundation of Post-Keynesian Theory.
- Author
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Schoder, Christian
- Subjects
- *
MACROECONOMIC models , *KEYNESIAN economics , *ECONOMIC models , *BEHAVIORAL assessment , *ECONOMIC demand - 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. [ABSTRACT FROM PUBLISHER]
- Published
- 2017
- Full Text
- View/download PDF
3. Are Dynamic Stochastic Disequilibrium models Keynesian or neoclassical?
- Author
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Schoder, Christian
- Subjects
- *
ECONOMIC equilibrium , *KEYNESIAN economics , *NEOCLASSICAL school of economics , *ECONOMIC expectations , *ECONOMIC policy , *STOCHASTIC analysis - Abstract
Dynamic Stochastic Disequilibrium (DSDE) models share the micro-foundations of Dynamic Stochastic General Equilibrium (DSGE) models based on inter-temporal optimization and rational expectations. Yet, it features the principle of effective demand which is at the core of Traditional Post-Keynesian (TPK) models and follows from the perception that the wage inflation is a policy variable rather than a labor-market clearing variable. In order to locate the DSDE model among the traditions of economic thought, the paper compares DSDE first-order conditions of optimal behavior with TPK rule-of-thumb behavior. It further compares the economic propagation of a DSDE model to those of a DSGE and TPK model as well as a Synthetic Neoclassical (SNC) model which features TPK behavioral assumptions and labor-market clearing. We arrive at two core conclusions: First, apart from assumptions regarding expectation formation, orthodox micro-foundation is, to a considerable extent, consistent with the behavioral hypotheses underlying TPK models. Second, the economy characterized by the DSDE model is essentially post-Keynesian rather than neoclassical because it features the principle of effective demand. [ABSTRACT FROM AUTHOR]
- Published
- 2017
- Full Text
- View/download PDF
4. New Directions in Macroeconomics
- Author
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Asad Zaman and Sidika Basci
- Subjects
PostKeynesian Economics ,Economics ,complexity economics ,Social Welfare ,Post-Keynesian economics ,ecological economics ,political economy ,B50 ,Ecological Economics ,ddc:330 ,Ecological economics ,Scope (project management) ,lcsh:HB71-74 ,lcsh:Economic theory. Demography ,lcsh:Economics as a science ,General Medicine ,Neoclassical economics ,Political Economy ,İktisat ,lcsh:HB1-3840 ,B41 ,Work (electrical) ,islamic economics ,postkeynesian economics ,Financial crisis ,Islamic Economics ,Islamic economics ,Complexity economics ,Political Economy,Complexity Economics,Ecological Economics,Post-Keynesian Economics,Islamic Economics ,Complexity Economics - Abstract
The glaring failure of modern macroeconomics to predict the Global Financial Crisis, and to provide remedies for the Great Recession which followed, has led to renewed interest in alternative approaches to Macroeconomics. There is huge amount of ongoing work aimed at creating a Macroeconomics for the 21st Century. The task is of the highest priority, as failures of economic theory have led to misery for millions. Wrong measures of GDP, and cost-benefit calculation which fail to account for environmental costs, and prioritize private profits over social welfare, have created a climate catastrophe which threatens to destroy the planet. In accordance with the importance of this task, we are expanding the scope of this journal, to cover all new approaches to economics, which fall outside of the boxes of conventional macro, micro, and econometrics of the 20th Century. This article outlines seven broad categories of research directions, and four different methodological principles which fall outside the boundaries of the conventional approach, and offer promise for building a Macroeconomics for the 21st Century. We hope to invite contributions in these areas for future issues.
- Published
- 2020
5. A Keynesian Dynamic Stochastic Labor-Market Disequilibrium model for business cycle analysis
- Author
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Schoder, Christian
- Subjects
dynamic stochastic general equilibrium ,B41 ,ddc:330 ,E12 ,micro-foundations ,J52 ,post-Keynesian economics ,dynamic stochastic labor-market disequilibrium - Abstract
A Dynamic Stochastic Labor-Market Disequilibrium (DSLMD) model is proposed for Keynesian business cycle analysis. It shares the type of micro-foundation known from neoclassical Dynamic Stochastic General Equilibrium (DSGE) models but characterizes economic mechanisms consistent with Traditional Post-Keynesian (TPK) models. Wage inflation is perceived as a non-market-clearing policy variable which may be subject to a collective Nash bargaining process with the state of the labor market affecting the relative bargaining power. The core insights are twofold: First, apart from assumptions regarding expectation formation, the DSGE-type of micro-foundation is, to a considerable extent, consistent with the behavioral hypotheses underlying TPK models. Second, the economy characterized by the DSLMD model is post-Keynesian rather than neoclassical. Wir präsentieren ein dynamisches, stochastisches Arbeitsmarktungleichgewichtsmodel (DSLMD), welches sich für eine keynesianische Analyse des Konjunkturzyklus eignet. Mit neoklassischen dynamischen, stochastischen allgemeinen Gleichgewichtsmodellen (DSGE) verbindet es die Art der Mikrofundierung. Dennoch beschreibt es ökonomische Mechanismen, die mit traditionellen postkeynesianischen (TPK) Modellen konsistent sind. Die Lohninflation wird nicht als den Arbeitsmarkt räumende Gleichgewichtsvariable aufgefasst, sondern als Politikvariable, die entweder konstant ist oder durch einen kollektiven Nash-Lohnverhandlungsprozess bestimmt wird. Dabei beeinflusst die Arbeitslosigkeit die relative Macht der Verhandlungsparteien. Zwei Ergebnisse sind zentral: Erstens, mit Ausnahme der Annahme rationaler Erwartungen ist die Mikrofundierung basierend auf intertemporaler Optimierung größtenteils konsistent mit den Verhaltenshypothesen, die TPK Modellen zu Grunde liegen. Zweitens, die von dem DSLMD Modell beschriebene Ökonomie ist postkeynesianisch und nicht neoklassisch.
- Published
- 2015
6. Globalisation, Gender, and Equity: Effects of Foreign Direct Investment on Labour Markets in Rural Indonesia
- Author
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Karin Astrid Siegmann
- Subjects
Economics and Econometrics ,Labour economics ,Beschäftigungseffekt ,jel:B41 ,foreign direct investment ,jel:F21 ,Post-Keynesian economics ,Foreign direct investment ,jel:J81 ,gender,globalisation,foreign direct investment,labour markets,Indonesia,economic methodology ,globalisation ,jel:F02 ,Globalization ,labour markets ,Economics ,ddc:330 ,gender ,Indonesien ,J31 ,Disadvantage ,Equity (economics) ,J16 ,Economic methodology ,Geschlecht ,Institutional economics ,Direktinvestition ,jel:J31 ,B41 ,Indonesia ,Workforce ,jel:J16 ,F21 ,economic methodology ,F02 ,Finance ,J81 - Abstract
This study assesses the impact of foreign direct investment (FDI) on gendered labour markets in rural Indonesia. It focuses on the gender composition of the workforce, female and male workers' employment conditions and gender wage inequality. The research strategy of »between-methods triangulation« is chosen, denoting the combination of quantitative and qualitative types of data generation and analysis.Two underlying mechanisms have been identified. A »cost effect« associated with transnational corporations' (TNCs') greater orientation towards the world market is the preferential recruitment of, on average, lower paid female workers. In light of global competitive cost considerations, this appears as a rational strategy for TNCs. Conversely, foreign firms' advanced technological endowments relative to domestic companies require a well-educated workforce with technical skills. In light of these perspectives, gender gaps in education and, on average, women's weaker labour market attachment disadvantage female workers' employment in TNCs. Both effects are mediated by a »reproductive constraint«. This refers to the asymmetric distribution of reproductive obligations between female and male household members, whereby female input into the domestic economy is more demanding relative to that of males.
- Published
- 2007
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