Metroeconomica最新文献

We develop a medium-run dynamic model to investigate the effects of financial factors and production technique on a capitalist economy. We incorporate neoclassical elements and contributions of Keynes, Kalecki, and Minsky into the model. We formulate a price decision and endogenous money supply mechanism. The medium-run steady state is constrained by the normal capacity utilization rate. Moreover, the economy can become endogenously unstable if bank lending reacts excessively to the firm's profit rate. In a stable economy, an increase in the target-inflation rate increases the expected inflation rate and interbank rate but does not affect the optimal labor-capital ratio.

When considering a regional context, most adjusting mechanisms at work in open economy Stock-Flow Consistent models—such as exchange rate movements, or changes in interest on public debt—are not present, as they are in control of “external” authorities. So, how does a regional system with “current account” imbalances adjust? To answer this question, we adapt the framework suggested in Godley-Lavoie (2007a) to consider two regions that share the same monetary, fiscal, and exchange rate policies. The model—loosely calibrated over Italian data, with the introduction of a fragmented labour market—replicates some key features of the Italian economy, and sheds light on the interactions between financial and real markets in regional economies.

This paper aims to describe the process underlying the submission and acceptance of high quality papers to top journals via a model of asymmetric information. Researchers have the relevant information, namely the probability that the research paper will be recognised by the scientific community. The model predicts many empirical facts of modern publishing systems: top journals receive too many submissions; few published papers are recognised by the scientific community; risky papers benefit from imperfect information, and groundbreaking papers are more likely to be published than in the case of perfect information; the distribution of papers can be skewed to the right. An extension of the model that considers the reputation of researchers shows that researchers with low reputation may be precluded from publishing in top journals, so the scientific system may be against innovation fostered by young scholars. Monte Carlo simulations and real data are used to substantiate the paper's findings. Policy implications and Pareto efficiency are also discussed.

Inspired by the so-called polluter pays principle, environmental taxes can drive a more sustainable European market. However, unilateral mitigation measures can reduce the competitiveness of carbon-intensive industries, thereby inducing relocation. In this paper, we wonder whether a tax can effectively curb emissions without hurting firms. Our analysis's entry point is that the level of emissions in a region is jointly determined by (i) the number of consumers buying dirty goods and (ii) the environmental quality of these products. Thus, to curb emissions, on the one hand, firms have to reduce their goods' emissions intensity. On the other hand, consumers have to reduce the consumption of dirtier goods. This leads to defining a tax depending on the number of consumers buying the brown products and the relative quality of these products. We show that under this tax, lower emissions do not come at the expense of lower profits.

This paper explores, from a classical-Keynesian theoretical standpoint, how stagnating real wages may have contributed to the slowdown of US productivity. Through shift-share analysis, we find that after a sharp change in distribution against wages, some historically high-productivity sectors switched towards slower productivity growth. This supports our hypothesis that the anemic growth of productivity may be partly due to the trend toward massive use of cheap labor. Our estimation of Sylos Labini's productivity equation confirms the existence of two direct effects of wages, one acting through the incentive to mechanization and the other through the incentive to reorganize labor use.

The econophysics “two-class” approach yields a novel theoretical and empirically robust relation: The per capita income $��\bar{y}��\left(�x�\right)��$ of any bottom fraction (x) of the population equals a(x)∙(1−G) $��\bar{y}�$, where a(x) is a coupling coefficient, G the Gini, and $��\bar{y}�$ is national per capita income. For the bottom 70%, a(70) = 1, which yields the Sen inequality adjustment to the 1993 UNDP Human Development Index, without any reliance on social welfare functions. Alternately, a(80) = 1.1 yields the bottom 80% per capita income (Vast Majority Income). We propose the latter as a new inequality-adjusted measure of wellbeing.

This paper discusses some issues related to the triangle between capital accumulation, distribution, and capacity utilization. First, it explains why utilization is a crucial variable for the various theories of growth and distribution, and, more precisely, with regards to their ability to combine an autonomous role for demand (along Keynesian lines) and an institutionally determined distribution (along classical lines). Second, it responds to some recent criticism by Girardi and Pariboni (2019) and I explain that their interpretation of the model in Nikiforos (2013) is misguided, and that the results of the model can be extended to the case of a monopolist. Third, it provides some concrete examples on why demand is a determinant for the long-run rate of utilization of capital. Finally, it argues that when it comes to the normal rate of utilization it is the expected growth rate of demand that matters, and not the level of demand. This insight provides a more straightforward way to link the adjustment at the micro and the macro level.

This study examines the impact of the expansion of the service sector on labour productivity growth in 10 developed economies, reaching back to the late 1970s. The main research novelty is that it combines both Kaldorian and Baumolian insights to develop a new shift-share decomposition that, consistent with Kaldorian theory, endogenises productivity growth at the industry level with respect to structural change, and, consistent with the Baumolian framework, includes the impact that arises from the cumulative reallocation of nominal output and employment. Our results show that tertiarisation leads to a gradual decrease in productivity growth in most of these economies.

This study provides new empirical evidence on the transformation of the structure of production in the Visegrád (V4) countries—the Czech Republic, Hungary, Poland, and Slovakia—using a multi-regional version of the subsystem approach to global input-output tables. In particular, the paper analyses structural change in these countries, with a focus on the integration of market services in manufacturing. Moreover, using an input-output structural decomposition analysis (SDA), we evaluate the role of some key determinants of employment changes in manufacturing. The results indicate that an increasing amount of intermediate demand comes from producer services. Further, a substantial portion of manufacturing employment is generated by foreign final demand, and the SDA demonstrates that labour intensity and final demand play a determining role in the change in the number of hours worked.

This paper derives the optimal response of the primary budget balance to changes in the public debt as a share of gross domestic product (GDP) in a stochastic model of debt. Under the optimal solution, the surplus reactivity to the debt-GDP ratio is independent of the debt ratio itself, but its size depends on the degree of uncertainty surrounding the impact of fiscal policies. We characterize the properties of the optimal control policy by proposing different metrics that may be used to assess fiscal soundness and as early warning indicators of fiscal imbalances.