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Searching for a Carbon Laffer Curve: Estimates from the European Union Emissions Trading System Metroeconomica (IF 1.297) Pub Date : 2024-03-16 Matteo Mazzarano, Simone Borghesi
Carbon prices have grown remarkably in the European Union (EU) Emissions Trading System (ETS) in recent years, raising distributional concerns. Revenues are expected to grow with higher carbon prices, thus providing resources to address distributional issues. Beyond a certain point, however, higher prices can discourage the purchase of allowances and ultimately reduce revenues, describing a Carbon
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Sraffian indeterminacy of steady-state equilibria in the Walrasian general equilibrium framework Metroeconomica (IF 1.297) Pub Date : 2024-02-15 Naoki Yoshihara, Se Ho Kwak
In contrast to Mandler's generic determinacy of steady-state equilibria, we first show that any non-trivial steady-state equilibrium is indeterminate under a general overlapping generation (OLG) economy with a fixed Leontief technique. We also check that this indeterminacy is generic. These results are obtained by explicitly introducing a general model of every generation's utility function and individual
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Demand-led industrialisation policy in a dual-sector small open economy Metroeconomica (IF 1.297) Pub Date : 2024-01-05 Önder Nomaler, Danilo Spinola, Bart Verspagen
This article models the process of structural transformation and catching-up in a demand-led Southern economy constrained by its balance of payments. Starting from the Sraffian Supermultiplier Model, we model a dual-sector small open economy with a traditional and a modern sector that interacts with a technologically advanced Northern economy. We propose two (alternative) autonomous elements that define
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Issue Information Metroeconomica (IF 1.297) Pub Date : 2024-01-06
No abstract is available for this article.
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Corporate profit tax, managerial delegation and multinational firm's transfer pricing Metroeconomica (IF 1.297) Pub Date : 2023-12-15 Di Wu, Leonard F. S. Wang, Jie Ma
This paper analyzes the transfer pricing decision of the multinational firm. There are differences in profit tax rates between home-country and host-country. The multinational firm determines the transfer price to its overseas affiliate and delegates the responsibility of deciding on the final sales to its affiliate manager. We find that: (1) The multinational firm will set a higher transfer price
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The Pasinetti theorem in a task-based model of automation Metroeconomica (IF 1.297) Pub Date : 2023-12-14 Arthur Jacobs
We integrate the notion of task-based automation into a two-class model and study the interaction between endogenous automation and the wealth distribution between capitalists and workers. We find that, as the economy becomes more automated, the possibility of a sustained capitalist class naturally arises. We show that capital-augmenting technical progress induces automation and that it can generate
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An input trade model with Keynesian unemployment: Bridging a gap between trade theory and international Input–Output analysis Metroeconomica (IF 1.297) Pub Date : 2023-12-07 Hideo Sato
This study presents a trade model with (1) intermediate inputs, (2) link commodities, and (3) Keynesian unemployment. The model has linear input coefficients, stable commodity prices, and short-run adjustment of the quantity supplied on the occasion of demand changes, making it compatible with international input–output tables and analysis. Given production techniques, labor endowments, upper limits
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The Green Solow model and the threshold effect of human capital on CO2 emissions Metroeconomica (IF 1.297) Pub Date : 2023-11-23 Thomas Bassetti, Filippo Pavesi, Massimo Scotti
By promoting economic growth, human capital may contribute to the rise in CO2 emissions, but it may also stimulate emission-reducing technologies. Starting from a Green Solow model augmented with human capital, we show that the former effect dominates the latter when human capital is below a critical value, while the opposite is true when human capital becomes sufficiently high. We also find that this
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Social overhead public infrastructure in a Lewis development framework Metroeconomica (IF 1.297) Pub Date : 2023-11-09 Carlândia Brito Santos Fernandes, Guilherme de Oliveira
This study explores the interaction between private and public physical capital accumulation within a Lewis development framework, in which public infrastructure is subject to congestion. The model shows that when both levels of capital are relatively low, a crowding-out of private investment creates the necessary conditions for the emergence of a development trap, from which a surplus labor economy
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The truncation of investment flows Metroeconomica (IF 1.297) Pub Date : 2023-10-09 Christian Bidard
In finance, the economic evaluation of an intertemporal flow of investments may lead to opposite conclusions according as the present value criterion or the internal rate of return (IRR) criterion is retained. However, when the lifetime of the project results from an economic choice, the criteria are reconciled for the competitive sequence. When the flows are expressed in physical terms, a generalization
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Influence of demand and supply factors on trade flows: Evidence for Argentina (1996–2016) Metroeconomica (IF 1.297) Pub Date : 2023-10-07 Florencia Fares, Guido Zack
Using an ARDL-ECM model, we estimate the aggregate and sectoral elasticities for Argentina. We confirm that the income elasticities of exports are lower than those of imports. When we control by real labor costs, exchange rate volatility, the black-market exchange rate and domestic absorption, the difference between income elasticities is reduced but remains statistically significant. In the sectoral
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Individual choice and objective demand in a Classical framework Metroeconomica (IF 1.297) Pub Date : 2023-10-06 Antonio D’Agata
Taking a cue from some passages of The Wealth of Nations, this paper defines notions of maximum willingness to pay and of individual surplus expressed in hours of labour for a two-good pre-capitalist economy. From the individual surplus, a consistent objective theory of individual choice is constructed, and a demand schedule free from subjective elements is derived.
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Issue Information Metroeconomica (IF 1.297) Pub Date : 2023-10-03
No abstract is available for this article.
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Reply to Parrinello Metroeconomica (IF 1.297) Pub Date : 2023-09-15 Enrico Bellino, Sebastiano Nerozzi
1 INTRODUCTION First of all, we sincerely thank Sergio Parrinello for his detailed comments and criticisms about our book and essay. Parrinello's notes allowed us to critically explore several issues related to the topics covered in the book and possibly clarify our point of view. In this note, we try to offer some replies to keep the debate open and push our understanding a little further. Since many
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Give me a U, give me a V, give me an L!: How effective are countercyclical policies in shaping the output dynamic during recessions Metroeconomica (IF 1.297) Pub Date : 2023-09-14 Gonzalo Castañeda, Luis Castro Peñarrieta
In this paper, we argue that studying recession events through the shapes observed in sequences of GDP data can help to avoid methodological complications and offer new insights to traditional inquiries. With a set of 147 recession events from 77 countries, we analyze whether the shape of the output dynamic might be affected by the application of countercyclical policies. Firstly, we apply a machine
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Matrix multipliers, demand composition and income distribution: Post-Keynesian–Sraffian theory and evidence from the world's ten largest economies Metroeconomica (IF 1.297) Pub Date : 2023-09-12 Theodore Mariolis, Nikolaos Ntemiroglou
This paper builds and explores in detail a post-Keynesian–Sraffian one-country model of effective demand, which, on the one hand, extends the Kurz multiplier model to open–with state-economies of single production and, on the other hand, is applicable to data from the National Input–Output Tables of the World Input–Output Database. Thus, it estimates the net output, import and employment matrix demand
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Modern services led growth and development in a structuralist dual economy: Long-run implications of skilled labor constraint Metroeconomica (IF 1.297) Pub Date : 2023-09-07 Gogol Mitra Thakur
Motivated by the South Asian experience, this paper examines the role of expansion of skilled labor force for modern services led growth and development in economies with low average educational attainment. The model economy consists of two capital-using sectors—a service sector that employs only skilled labor and an industry sector that does not require skilled labor. The service sector represents
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Can displaced workers have a fresh start? Metroeconomica (IF 1.297) Pub Date : 2023-09-06 Hideki Nakamura
This study considers low-ability workers with the difference in their specialization areas and investigates the consequence of automation. There are two findings. First, owing to automation, it is more difficult for displaced workers than for other workers to find a new job, because these displaced workers lose their suitable jobs. Consequently, the unemployment rate increases with an increase in the
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Public procurement and reputation. An agent-based model Metroeconomica (IF 1.297) Pub Date : 2023-08-30 Nadia Fiorino, Emma Galli, Ilde Rizzo, Marco Valente
This paper uses an agent-based computational model to investigate whether and how considering the firm's reputation in the public procurement selection process affects the expected final contract cost. We take account of different sets of simulations and a range of model parameters (such as firm skills, level of opportunistic rebate, relative weights of reputation and rebate) and propose a reputation
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Thirlwall's law: Binding constraint or ‘centre-of-gravity’? Metroeconomica (IF 1.297) Pub Date : 2023-08-26 Marwil J. Dávila-Fernández, Serena Sordi
Thirlwall's law is one of the most powerful empirical regularities in demand-led growth theories. In recent years, the challenges imposed by globalisation have led to a new wave of studies incorporating into this framework topics such as ecological sustainability, the complexity of innovation processes, the role of institutions, the composition of external imbalances, and gender issues. We notice some
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Endogenous choice of price or quantity contract with upstream advertising Metroeconomica (IF 1.297) Pub Date : 2023-08-16 Qing Hu, Dan Li, Tomomichi Mizuno
We investigate a supply chain comprising a manufacturer engaged in advertising and two retailers who compete with differentiated products. We examine the endogenous choice between competing on quantity or price for the retailers. Our analysis reveals that, depending on the level of product substitutability, the range of possible outcomes is varied and includes Cournot, Bertrand, and Cournot-Bertrand
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Not your average firm: A quantile regression approach to firm-level investment in the United States Metroeconomica (IF 1.297) Pub Date : 2023-08-14 Doğuhan Sündal
A significant portion of the work published on firm investment adapts models that operate on an “average firm” assumption, which is different from the investment behavior of a modal firm. This study employs a Bayesian quantile regression model to explore the investment rates in the United States and finds, first, that the firms with higher investment rates have a higher responsiveness to the valuation
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Proposer and responder conceding in impunity bargaining Metroeconomica (IF 1.297) Pub Date : 2023-07-22 Daniela Di Cagno, Werner Güth, Luca Panaccione, Maria Cristina Scarafile
In impunity bargaining with concession, opportunistic proposers would not offer anything nor concede. Opportunistic responders should not accept first offers since second offers could be more generous, for example, due to random trembles. On the contrary, our experimental data, elicited via the strategy vector method, show that participants moderate initial claims and concede, albeit by small amounts
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The relevance of Thirlwall’s growth law in the Zambian economy Metroeconomica (IF 1.297) Pub Date : 2023-06-23 Lewis Chimfwembe, Kevin S. Nell
This paper uses a blended methodology—conventional tests of ‘Thirlwall's law’ combined with an in-depth growth narrative approach and unit root tests—to identify the dominant balance-of-payments adjustment mechanism in the Zambian economy over the period 1956–2017. Consistent with Thirlwall's growth law, the main results identify income changes as the dominant balance-of-payments adjustment mechanism
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Issue Information Metroeconomica (IF 1.297) Pub Date : 2023-06-01
No abstract is available for this article.
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Temporary versus permanent disability: A dynamic incentives model Metroeconomica (IF 1.297) Pub Date : 2023-05-27 Pierpaolo Giannoccolo, Silvia Platoni
This article extends previous disability models in a different and more detailed framework that contemplates both temporary and permanent disability. By introducing different degrees of disability, the paper contributes to the recent debate among empirical scholars on the growth of disability insurance programmes in several OECD countries. This approach allows us to analyse, and consequently compare
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Discussion notes on “classical-Keynesians” Metroeconomica (IF 1.297) Pub Date : 2023-05-17 Sergio Parrinello
This article aims at stimulating a discussion on “the nine building blocks presented by Pasinetti to define the main methodological characteristic features of the classical-Keynesian school” and chosen as the guidelines of a recent collective volume. The discussion notes are tripartite. Part I presents a list of short annotations at the margin of the nine blocks for possible debate. Part II starts
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The macroeconomic effects of endogenous credit and money creation under Basel III regulations Metroeconomica (IF 1.297) Pub Date : 2023-05-17 Boyao Li
Bank regulations affect the behaviour of credit and money creation; hence, they are essential for economic growth and stability. This paper develops an analytical model of the monetary circuit to show the macroeconomic effects of money creation under bank regulations. It describes the equilibrium in which banks create money in accordance with capital adequacy ratios or net stable funding ratios. This
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A network-based economic growth model with endogenous migration and poverty traps Metroeconomica (IF 1.297) Pub Date : 2023-05-16 Alberto Bucci, Davide La Torre, Danilo Liuzzi, Simone Marsiglio
We analyze a network-based macroeconomic framework with the objective to analyze the effects that endogenous migration choices may have on the mutual relation between population dynamics and capital accumulation. In our economy population size determines the labor input which, together with the available capital stock, shapes total output. Production takes place with a convex-concave technology allowing
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Automation and economic growth in a task-based neoclassical growth model Metroeconomica (IF 1.297) Pub Date : 2023-04-26 Kenichiro Ikeshita, Hideaki Uchida, Tamotsu Nakamura
This paper incorporates a task-based approach into the Solow growth model to analyze the effects of automation on economic growth. We find that if task producers smoothly adopt automation technology along the capital accumulation path, sustained growth is possible even without technological progress. This result is brought about by the fact that task automation makes the aggregate production function
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Partial identification for growth regimes: The case of Latin American countries Metroeconomica (IF 1.297) Pub Date : 2023-04-24 Paul Carrillo-Maldonado
This study introduces the partial identification of the structural vector autoregressive model to estimate the effect of income distribution on output. For this purpose, this study follows the Post-Keynesian growth models and identifies the demand regimes in Latin American countries for the period 1960–2014. The main results reveal that Bolivia, Colombia, Honduras, and Panama have profit-led regimes
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Technical change, constant rate of exploitation and falling rate of profit in linear production economies Metroeconomica (IF 1.297) Pub Date : 2023-04-12 Deepankar Basu, Oscar Orellana
Can cost-reducing technical change lead to a fall in the long run rate of profit if class struggle manages to keep the rate of exploitation constant? In this paper, we derive three results that, taken together, answer this question in the affirmative. First, we identify three properties that new real wage bundles must satisfy to keep the rate of exploitation constant and lead to a falling rate of profit
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Kalecki meets Schumpeter: The decline of competition in a demand-led dynamic model Metroeconomica (IF 1.297) Pub Date : 2023-04-12 Ana Bottega, Rafael S. M. Ribeiro
This paper contributes to the post-Keynesian literature by building a macrodynamic Kaleckian model that incorporates recent evidence on market concentration and its relationship with capital accumulation and income distribution using Schumpeterian insights. This is done in two steps. First, we model a two-dimensional system that sets the dynamics between the wage share and the capital-effective labor
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Vertical shareholding, vertical product differentiation and social welfare Metroeconomica (IF 1.297) Pub Date : 2023-04-07 Xingtang Wang, Leonard F. S. Wang
A vertically related market with vertical product differentiation is used to analyze the impact of vertical cross-ownership on industry profit, consumer surplus and social welfare. With forward cross-ownership, we find that when the upstream firm holds the share of the low-quality downstream firm, the industry profit is increasing (decreasing) in the cross-ownership if the product quality difference
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Issue Information Metroeconomica (IF 1.297) Pub Date : 2023-03-24
No abstract is available for this article.
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How capital intensity affects technical progress: An empirical analysis for 17 advanced economies Metroeconomica (IF 1.297) Pub Date : 2023-03-23 Alessandro Bellocchi, Giuseppe Travaglini, Beatrice Vitali
In this paper we present a model of economic growth with endogenous technical progress. We test if the neoclassical growth model accepts the assumption that capital intensity affects Total Factor Productivity (TFP) in the long run. Our view takes inspiration from Kaldor's growth model of 1957 in which the Technical Progress Function (TPF) responds to the joint behavior of capital intensity and inventiveness
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Verification of technical change and cost and productivity criteria: An empirical study using the World Input–Output Database Metroeconomica (IF 1.297) Pub Date : 2023-03-23 Takahiko Hashimoto
This study examines the different types of technical change, as categorized by the productivity and cost criteria proposed by previous theoretical studies using data from the World Input–Output Database. The results confirm that in some sectors, the cost criteria are satisfied, but the productivity criteria are not. These technological changes are due to the very large labor input of imported intermediates
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Predicting the deterrence effect of tax audits. A machine learning approach Metroeconomica (IF 1.297) Pub Date : 2023-03-23 Michele Rabasco, Pietro Battiston
We apply machine learning methods to the prediction of deterrence effects of tax audits. Based on tax declarations data, we predict the increase in future income declarations after being targeted by an audit. We find that flexible models, such as classification trees and ensemble methods based on them, outperform penalized linear models such as Lasso and ridge regression in predicting taxpayers more
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Issue Information Metroeconomica (IF 1.297) Pub Date : 2023-01-01
No abstract is available for this article.
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Worker household debt, functional income distribution and growth: A neo-Kaleckian perspective Metroeconomica (IF 1.297) Pub Date : 2023-01-04 Pintu Parui
In a stock-flow consistent neo-Kaleckian macro-model, along with worker households' debt dynamics, we incorporate distributional dynamics and examine the dynamic stability of the economy in the long-run. Both wage-led and profit-led but a debt-burdened demand and growth regimes are possible in the short-run and the long-run. We show that the interaction between the debt and distributional dynamics
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Income distribution and economic activity: A frequency domain causal exploration Metroeconomica (IF 1.297) Pub Date : 2022-12-14 Jose Barrales-Ruiz, Rudiger von Arnim, Mikidadu Mohammed
This paper contributes to the empirical literature on the Goodwin pattern. Building on the frequency domain representation of SVAR models, we calculate the extended partial directed coherence. This measure captures the contemporaneous effect from labor share onto economic activity. We illustrate the method with simulated data. Results for two-dimensional models with quarterly US data (1947Q1–2020Q1)
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Financial dynamics in the medium run Metroeconomica (IF 1.297) Pub Date : 2022-12-08 Toshio Watanabe
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,
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A prototype regional stock-flow consistent model Metroeconomica (IF 1.297) Pub Date : 2022-12-07 Francesco Zezza, Gennaro Zezza
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
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Science in the mist: A model of asymmetric information for the research market Metroeconomica (IF 1.297) Pub Date : 2022-10-11 Giuseppe Pernagallo
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;
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Tax and pollution in a vertically differentiated duopoly: When consumers matter Metroeconomica (IF 1.297) Pub Date : 2022-10-06 Giulia Ceccantoni, Ornella Tarola, Cecilia Vergari
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
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Issue Information Metroeconomica (IF 1.297) Pub Date : 2022-10-01
No abstract is available for this article.
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Permanent scars: The effects of wages on productivity Metroeconomica (IF 1.297) Pub Date : 2022-10-03 Claudia Fontanari, Antonella Palumbo
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
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Some universal patterns in income distribution: An econophysics approach Metroeconomica (IF 1.297) Pub Date : 2022-09-28 Anwar Shaikh, Amr Ragab
The econophysics “two-class” approach yields a novel theoretical and empirically robust relation: The per capita income y‾(x)$\overline{y}(x)$ of any bottom fraction (x) of the population equals a(x)∙(1−G) y‾$\overline{y}$, where a(x) is a coupling coefficient, G the Gini, and y‾$\overline{y}$ is national per capita income. For the bottom 70%, a(70) = 1, which yields the Sen inequality adjustment
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Notes on the accumulation and utilization of capital: Some theoretical issues Metroeconomica (IF 1.297) Pub Date : 2022-09-03 Michalis Nikiforos
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
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Does tertiarisation slow down productivity growth? A Kaldorian–Baumolian analysis across 10 developed economies Metroeconomica (IF 1.297) Pub Date : 2022-08-26 Adrián Rial, Rafael Fernández
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
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Intersectoral and intercountry linkages as drivers of employment growth in emerging economies: The case of Visegrád countries Metroeconomica (IF 1.297) Pub Date : 2022-08-22 Claudio Di Berardino, Ilaria Doganieri, Stefano D'Angelo, Gianni Onesti
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
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Optimal correction of the public debt and measures of fiscal soundness Metroeconomica (IF 1.297) Pub Date : 2022-07-18 Barbara Annicchiarico, Fabio Di Dio, Stefano Patrì
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
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Withholding self-employed and business incomes: An application to Italian firms Metroeconomica (IF 1.297) Pub Date : 2022-07-11 Maria Rosaria Marino, Corrado Pollastri, Alberto Zanardi
The paper proposes the application of a generalised withholding tax scheme to business-to-business transactions, in order to combat the evasion of income-related taxes levied on self-employed workers and businesses, as an alternative to the standard regime based on self-reporting. The scheme proposed here is comprehensive in scope, since it applies to all B2B transactions involving the self-employed
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A financial frontier model with bankers' susceptibility under uncertainty Metroeconomica (IF 1.297) Pub Date : 2022-07-11 Hans D. G. Hyun
This article aims to refine the Post Keynesian long run financial frontier models under an intermediate run called the ‘implementation period,’ the time horizon to finance and implement long run strategic plans. During this period, the availability of debt finance is crucial to bridge the time gap before future free cash flows validate the investment. Therefore, firms' long run investment plans may
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Income distribution, banks and managers: A linear joint-production model with financial assets Metroeconomica (IF 1.297) Pub Date : 2022-07-11 Michel Eduardo Betancourt Gómez
The aim of this paper is to elaborate a Sraffian production model with banks, corporations, shareholders and managers to argue that the expansion of the financial sector contributes to the decrease of the wage-share. The model introduces joint production to take into account fixed capital and corporate firms and provides rigorous foundations for the description of an economy characterised by unbalanced
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Convergence in solvency and capital centralization: A B-VAR analysis for high-income and euro area countries Metroeconomica (IF 1.297) Pub Date : 2022-06-18 Emiliano Brancaccio, Raffaele Giammetti, Milena Lopreite, Michelangelo Puliga
We apply a B-VAR technique to 28 high-income countries and 11 Euro area countries in 1999–2019 to analyze the causal relationships between centralization of capital measured in terms of network control and solvency conditions represented by the difference between GDP growth and interest rate. Results show a relationship that goes in two directions. First of all, divergent solvency conditions lead to
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Information-theoretic model of induced technical change: Theory and empirics Metroeconomica (IF 1.297) Pub Date : 2022-05-31 Jangho Yang
The paper develops an information-theoretic model of induced technical change where payoff-maximizing agents are exposed to a positive degree of uncertainty when adopting new technology due to unobserved cost factors. The derived equilibrium of the model comes in the form of a non-degenerate probability distribution that defines the distance of productivity growth from the potential maximum growth
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Monetary policy, rational confidence, and Neo-Fisherian depressions Metroeconomica (IF 1.297) Pub Date : 2022-05-30 Lucio Gobbi, Ronny Mazzocchi, Roberto Tamborini
Why do economies fall into depression equilibria with output and inflation below target? What is the appropriate monetary policy? We examine the so-called “Neo-Fisherian” claim that, at the zero lower bound of the policy interest rate, and the economy in a depression equilibrium, in order to restore the desired inflation rate the policy rate should be raised consistently with the Fisher equation. To
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When is the long run?—Historical time and adjustment periods in demand-led growth models Metroeconomica (IF 1.297) Pub Date : 2022-05-30 Ettore Gallo
In recent years, Post-Keynesian analysis has been characterized by a renewed interest in long-run theories of growth and distribution. While many authors have focused on the convergence of demand-led growth models to a fully adjusted equilibrium, relatively little attention has been given to the time required to reach this long-run position. In order to fill the gap, this paper seeks to answer the
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The language of pluralism from the history of the theory of price determination: Natural price, equilibrium price and administered price Metroeconomica (IF 1.297) Pub Date : 2022-05-09 Harry Bloch
This paper seeks to identify terminology to aid in distinguishing the approaches to the theory of price determination as presented in classical political economy, neoclassical economics and post-Keynesian economics. Through a review of the respective literature, a dominant usage is identified for the theoretical price concept in each theory. Natural price is identified with classical theory, equilibrium