Evolutionary and Institutional Economics Review最新文献

In this note we scrutinize and comment on Nobuo Okishio’s review of Piero Sraffa’s Production of Commodities by Means of Commodities. We limit ourselves only to observations by Okishio which we consider debatable. These concern in particular his treatment of wages in the price equations, his interpretation of Sraffa’s Standard commodity and his criticism of the marginalist theory of value and distribution.

This paper formulates an environmental extension of the Kurz matrix demand multipliers for circular flow–positive-profit economies and, thus, provides a theoretical and empirical integration of income distribution–value, trade, effective demand and ‘green policy’ considerations. The findings highlight the complex ways in which environmental multiplier effects depend on the technical conditions of production, distributive variables, relative commodity prices, savings ratios out of wages and profits, direct and indirect tax rates, patterns of household consumption demand, physical composition of autonomous demand, and ultimately on the resulting socio-technical inter-country ‘backward’ linkages and leakages. On the one hand, then, the overall findings of this paper challenge the effectiveness of traditional effective demand management and environmental tax policies to reduce pollutant emissions, energy use or/and unemployment. On the other hand, however, they suggest an alternative, fairly general and flexible framework for studying environmental multiplier effects at the level of individual industries and sectors, both nationally and transnationally.

The decentralization process greatly improves a society's welfare by offering public goods and services. Inequality between rural and urban areas as well as the overall effects of decentralization is examined in this study in Pakistan. In addition, the rural–urban inverted-U hypothesis is investigated for a country-specific focus on Pakistan using a time-series data set spanning the years 1985 to 2020. Using the auto-regressive distributive lag model (ARDL) bounds testing co-integration method, variables are evaluated over the long run and their error correction dynamic is applied to short-run instants of the variables. The study's findings successfully demonstrate the opposite of what is typically found for the implications of rural inequality owing to fiscal decentralization, namely that fiscal decentralization has exacerbated the overall inequality situation in rural and urban Pakistan. Decentralization in politics and administration is more beneficial for enhancing the overall and urban income distribution in Pakistan. Decentralization has, however, affected rural regions' income distribution in both directions. Furthermore, for both the national economy and urban regions, the GDP per capita growth rate and its square support Kuznet's inverted U-shape theory. However, the distribution of income in Pakistan's rural areas does not support this theory.

The notorious ‘dual stability’ paradox is stated as follows: in a closed dynamic Leontief model, when the quantity system is relatively stable, its corresponding price system will be unstable, and vice versa. This paradox arises from the neoclassical assumptions of full utilization of capacity and perfect foresight, which have caused serious complications in the dynamic Leontief model. In this study, we aim to construct a dynamic input–output model within an evolutionary framework, departing from neoclassical assumptions. Two new assumptions are introduced: incomplete utilization of capital stocks and bounded rationality in decision-making. Our findings reveal that the ‘dual stability’ paradox of the quantity and price systems can be addressed by including these two assumptions, and some special conditions are proposed for the stability properties in both the systems. Furthermore, we prove that the distance between the time paths and equilibrium position converges to a constant, which is related to the initial position.

The slope of the aggregate supply curve of the economy in economic schools is influenced by the assumptions of the labor market. In classical economics, assuming no monetary illusion of labor, the aggregate supply curve is a vertical line at full employment. In the great crisis of the 1930s, Keynes introduced the horizontal aggregate supply to the economic world as a special state of the economy, and Keynesian economics presented the aggregate supply with a positive slope assuming the existence of monetary illusion. The monetarists with the hypothesis of adaptive expectations considers the aggregate supply in the short term with a positive slope like the Keynesians and vertical in the long term like the classics. The new classics with the assumption of rational expectations, although they consider the aggregate supply with a positive slope, but they provide the same results as the classics. Nevertheless, aggregate supply in inflationary crises as a special state of the economy has not been discussed in economic schools so far, and there is a study gap in this regard. The current research seeks to present a new theory regarding the aggregate supply of the economy in inflationary crises. The purpose of this research is to provide a new theory about the supply of the entire economy in inflationary crises, which is a basis for future research, especially for countries that are facing inflationary crises.

It is well known that, in continuous time, the Cobb-Douglas function can be derived from the underlying, data governing, accounting identity under some reasonable assumptions (factor shares are constant, and the weighted growth of the labour input price and the capital input price is constant). In this article these results are generalized in three ways: (1) the accounting identity contains a (pure) profit term; (2) continuous time is replaced by discrete time periods; (3) additional assumptions appear to be superfluous. The article also discusses extensions: from two to multiple inputs, from value added to gross output, and from a single production unit to an ensemble of those units.

Abstract

This preface introduces five items that constitute this special feature and suggests the future task with which evolutionary economists and other heterodox economists have to tackle in the area of economics education.

To have multiple perspectives for analyzing an economy is valuable in and of itself. For the complex system economy, they offer ways for researchers and students alike for developing a more nuanced understanding of socio-economic structures than the economics mainstream framework can accommodate. They allow us to conceptualize economic activity in different ways and show different aspects of economic activities. They can help develop policy frameworks that may permit a more versatile, and also more targeted, set of options for influencing economic processes. They can support the development of differing positions when we consider how to evaluate economic processes and the output range which they produce. For students, learning different perspectives for thinking about how an economy functions, about the role of economic activity and how it is embedded in a physical and social environment can offer numerous advantages over an instruction that is solely focused on one specific perspective and its positive and normative positions. Evolutionary perspectives on economic education and analyses provide an analytical framework that can accommodate the above aspects.

Abstract

In this paper, we have argued how research and education in economics should be conducted under the current circumstances where the “crisis of capitalism” is being referred to in mainstream media. Though major research trends in mainstream economics are characterized by the development of piece-meal social engineering in recent days, research on an overarching theory of the capitalist economy and its educational dissemination should be still highly desired, to build an intellectual infrastructure for deliberative democratic decision-making by the public. Given this basic standpoint, we have discussed the importance of the issue of how to discuss capital from a bird’s eye view of the capitalist economy.

Microfoundations have served as a foundation to inform different research interests in evolutionary economics. We will consider aspects of global supply chains. The focus for us will be, in particular, the (lack of) resilience of those structures and what measures might be promising to enhance their resilience. The framing we propose to outline the problem structure rests on (evolutionary) game theory and combines this with an understanding of the embedding system that relies on original institutional economics. This allows to illustrate potential issues that a methodological individualism cannot capture and can inform policy possibilities that go beyond some version of ‘making markets work better’. Specifically, we offer a perspective of global supply as a commons-like problem structure. From this perspective, in a decentralized decision-making structure, focusing on changes to individual incentives only, to increase the resilience of supply chains is not fundamentally achievable, but will have to be supported in further ways by policymakers and administrative units.