beyond carbon pricing the role of banking and monetary policy in financing the transition to a low carbon economy it is widely acknowledged that introducing a price on carbon represents a crucial precondition for filling the current gap in low carbon investment however as this paper argues carbon pricing in itself may not be sufficient this is due to the existence of market failures in the process of creation and allocation of credit that may lead commercial banks the most important source of external finance for firms not to respond as expected to price signals under certain economic conditions banks would shy away from lending to low carbon activities even in the presence of a carbon price this possibility calls for the implementation of additional policies not based on prices in particular the paper discusses the potential role of monetary policies and macroprudential financial regulation modifying the incentives and constraints that banks face when deciding their lending strategy through for instance a differentiation of reserve requirements according to the destination of lending may fruitfully expand credit creation directed towards low carbon sectors this seems to be especially feasible in emerging economies where the central banking framework usually allows for a stronger public control on credit allocation and a wider range of monetary policy instruments than the sole interest rate

does financial education impact financial literacy and financial behavior and if so when in a meta analysis of 126 impact evaluation studies we find that financial education significantly impacts financial behavior and to an even larger extent financial literacy these results also hold for the subsample of randomized experiments rcts however intervention impacts are highly heterogeneous financial education is less effective for low income clients as well as in low and lower middle income economies specific behaviors such as the handling of debt are more difficult to influence and mandatory financial education tentatively appears to be less effective thus intervention success depends crucially on increasing education intensity and offering financial education at a teachable moment

piketty and the growth dilemma revisited in the context of ecological economics 2017 elsevier b v piketty s capital has provoked considerable debate regarding inequality the existence of increasing inequality creates a challenge for ecological economics in this paper we set out some of the problems inherent in piketty s approach and how they are addressed from the point of view of ecological economics we use jackson and victor s response as a point of departure to make several points piketty s work involves an unreconciled inconsistency between his laws and the institutional context which becomes problematic when one starts to think about inevitability he simply assumes away ecological problems to make future forecasts for inequality as such his forecasts are undermined since ecological issues are fundamental to any viable future economy furthermore piketty effectively reproduces rather than contests the mainstream practice of delegating ecological issues to a sub discipline jackson and victor meanwhile focus on the mainstream economic aspect of piketty s work and construct a model to contest a model in so doing they provide an ideational response to what is also a problem of ideological frameworks though it can be important to contest an idea they inadvertently through family resemblance contribute to the reproduction of the problematic position of ecological concerns within dominant ways of conceiving economics

money creation under full reserve banking a stock flow consistent model this paper presents a stock flow consistent model of full reserve banking it is found that in a steady state full reserve banking can accommodate a zero growth economy and provide both full employment and zero inflation furthermore a money creation experiment is conducted with the model an increase in central bank reserves translates into a two thirds increase in demand deposits money creation through government spending leads to a temporary increase in real gdp and inflation surprisingly it also leads to a permanent reduction in consolidated government debt the claims that full reserve banking would precipitate a credit crunch or excessively volatile interest rates are found to be baseless

stability of zero growth economics analysed with a minskyan model abstract as humanity is becoming increasingly confronted by earth s finite biophysical limits there is increasing interest in questions about the stability and equitability of a zero growth capitalist economy most notably if one maintains a positive interest rate for loans can a zero growth economy be stable this question has been explored on a few different macroeconomic models and both yes and no answers have been obtained however economies can become unstable whether or not there is ongoing underlying growth in productivity with which to sustain growth in output here we attempt for the first time to assess via a model the relative stability of growth versus no growth scenarios the model employed draws from keen s model of the minsky financial instability hypothesis the analysis focuses on dynamics as opposed to equilibrium and scenarios of growth and no growth of output gdp are obtained by tweaking a productivity growth input parameter we confirm that with or without growth there can be both stable and unstable scenarios to maintain stability firms must not change their debt levels or target debt levels too quickly further according to the model the wages share is higher for zero growth scenarios although there are more frequent substantial drops in employment

prices or knowledge what drives demand for financial services in emerging markets this brief summarizes the results of a gender impact evaluation study entitled prices or knowledge what drives demand for financial services in emerging markets conducted in 2008 in indonesia the study observed that financial development is critical for growth but its micro determinants are not well understood financial literacy training has no impact on the probability of opening a bank account although it does have an impact among those with low levels of education and financial literacy a change from 3 to 14 led to a 7 6 percent increase in the probability of owning a bank account the results hold two years after a study funding for the study derived from world bank hbs division of research and faculty development

an integrated approach to climate change income distribution employment and economic growth a demand driven growth model involving capital accumulation and the dynamics of greenhouse gas ghg concentration is set up to examine macroeconomic issues raised by global warming e g effects on output and employment of rising levels of ghg offsets by mitigation relationships among energy use and labor productivity income distribution and growth the economic significance of the jevons and other paradoxes sustainable consumption and possible reductions in employment and sources of instability and cyclicality implicit in the two dimensional dynamical system the emphasis is on the combination of biophysical limits and post keynesian growth theory and the qualitative patterns of system adjustment and the dynamics that emerge

consistency and stability analysis of models of a monetary growth imperative ist das streben nach wirtschaftswachstum eine frage des politischen willens oder eine notwendige bedingung fur okonomische stabilitat es ist umstritten ob solche wachstumszwange im heutigen geldsystem bestehen und einen konflikt mit nachhaltigkeit hervorrufen zur untersuchung der ersten behauptung dass zinseszinsen einen wachstumszwang hervorrufen stellen wir funf post keynesianische modelle vor und fuhren eine stabilitatsanalyse im parameterraum durch eine stationare okonomie mit spar und investitionsquote von null kann bei positivem zinssatz erreicht werden wenn der parameter konsum aus dem bestand oberhalb eines schwellenwerts liegt der mit dem zinssatz ansteigt die andere behauptung dass die bildung von gewinnrucklagen aus den zinseinnahmen der banken zu einem wachstumszwang fuhrt basiert auf modellen des monetaren kreislaufs die wir fur widerlegbar halten ihre bilanzierung ist inkonsistent und eine zentrale modellannahme ist nicht theoretisch begrundet aber die hauptursache des wachstumszwangs das eigenkapital der bank muss gesteigert werden selbst wenn ihre verbindlichkeiten nicht wachsen was eine diskrepanz zwischen der intention der autoren und dem eigentlichen modell ist wir kommen zum schluss dass das heutige geldsystem auf der basis von zinstragendem kreditgeld mit privaten banken nicht zu einem inharenten wachstumszwang fuhrt falls der stationare zustand instabil ist liegt es an entscheidungen wirtschaftlicher agenten und nicht an struktureller unvermeidbarkeit

facilitating the transition to a steady state economy some macroeconomic fundamentals abstract central government policy is based on a misguided understanding of the macroeconomics of a modern fiat currency economy as the owner issuer of a nation s currency a central government has unlimited spending power moreover taxation exists as nothing more than a means by which a central government can destroy the spending power of the private sector in the process of outlining some of the policies required to facilitate the transition to a steady state economy this paper does not recommend that central governments should spend wildly and irresponsibly to the contrary this paper explains how a central government can use its unique spending and taxation powers in a disciplined and policy effective manner yet in a manner that is being largely overlooked

100 percent reserve banking a critical review of green perspectives abstract 100 percent reserve banking c perb is an enduring proposal for monetary reform that has been taken up by some ecological economists this paper identifies three groups of green arguments in favor of c perb and offers some criticism first the proposal could serve to constrain new investments by the availability of savings thereby checking economic growth however this would strongly increase interest rate volatility second it could potentially elevate environmental considerations in decisions about resource allocation by increasing the role of the democratic state as an economic actor this line of argument faces problems that require further detailed exploration and historical perspective third a transition to c perb would allow debt levels to be drastically cut this is technically possible but politically a tall order whether the existing system of debt based bank money generates a significant growth imperative is unclear and the importance of other driving forces behind perennial economic growth in modern societies which c perb does not address remains an issue of contention in general the adoption of c perb presupposes a tremendous reconfiguration of power relations between states and finance capital

horizontalism a critique this article offers a critique of the horizontalist view of money that banks are passive in the face of credit demand it is argued that banks liquidity preference influences their responsiveness to the demand for credit their liquidity preference is expressed in risk assessment understood in terms of john maynard keynes s theory of uncertainty it is argued that rationing in the sense of adverse changes in risk assessment occurs systematically in the downturn of the business cycle systematic rationing also occurs with respect to particular classes of borrowers the focus here is on the case of small firms c 1996 academic press limited copyright 1996 by oxford university press

ecological macroeconomic models assessing current developments our society faces a dilemma while continued economic growth is ecologically unsustainable low or negative rates of economic growth are accompanied by adverse social impacts hence there is a need for macroeconomic tools that can help identify socially sustainable post growth pathways the emerging field of ecological macroeconomics aims to address this need and features a number of new macroeconomic modelling approaches this article provides 1 a review of modelling developments in ecological macroeconomics based on the literature and interviews with researchers and 2 an analysis of how the different models incorporate policy themes from the post growth literature twenty two ecological macroeconomic models were analysed and compared to eight policy themes it was found that environmental interactions and the monetary system were treated most comprehensively themes of income inequality work patterns indicators of well being and disaggregated production were addressed with less detail while alternative business models and cross scale interactions were hardly addressed overall the combination of input output analysis with stock flow consistent modelling was identified as a promising avenue for developing macroeconomic models for a post growth economy however due to the wide interpretation of what the economy entails future research will benefit from employing a range of approaches

savings in transnational households a field experiment among migrants from el salvador abstract we implemented a randomized field experiment that tested ways to stimulate migrants savings in their origin country we find that migrants value opportunities to exert greater control over financial activities in their home countries we offered u s based migrants bank accounts in el salvador randomly varying migrant control over el salvador based savings by offering different accounts across treatments migrants offered the greatest degree of control accumulated the most savings impacts likely represent increases in total savings there is no evidence that savings increases were simply reallocated from other savings mechanisms enhanced control over home country savings does not affect remittances sent home

attitudes towards climate policies in a macrodynamic model of the economy abstract in a recent article published in this journal guarini and porcile 2016 expanded the balance of payments constraint bopc growth model suggesting a way to make it possible to address some of the challenges posed by greenhouse gas emissions building on their set up we formalise into the model a mechanism that explains how people with different environmental attitudes or sentiments influence each other and contribute to the design of environmental policies we detail the concept of transition probabilities for the agent s switching from pro to anti environmental positions and vice versa and discuss the macroeconomic results that follow numerical simulations allow us to investigate in more detail the implications of the validity of porter s hypothesis as well as to discuss the feasibility of decoupling conditions a policy implication of our analysis is that we should encourage the dissemination of pro environmental attitudes among the public because this could lead to a more desirable equilibrium as important as enhancing public knowledge of climate change is to keep alive the debate at the collective level so as to influence the probability of switching sides

solvency rule versus taylor rule an alternative interpretation of the relation between monetary policy and the economic crisis one of the more debated interpretations of the economic crisis that started in 2007 08 is based on the taylor rule equation namely the idea that over the period 2002 05 the fed has implemented a low interest policy that has led to the housing bubble and finally to the great recession this paper shows that the taylor rule equation not only rests on the so called new consensus macroeconomics but also on the neoclassical theory of growth the various criticisms raised against these theoretical foundations suggest that interpretations of the great recession based on the taylor rule equation are building their arguments on shaky theoretical premises furthermore this paper shows that an equation formally similar but logically alternative to the taylor rule can be regarded as the expression of a general condition of solvency of firms and workers according to this solvency rule the prevailing outcome of monetary policy decisions is the regulation of insolvencies

keynesian macroeconomics without the lm curve the is lm model has been a central tool of macroeconomic teaching and practice for over half a century legions of earlier writers have offered criticisms of the model that have become familiar with the passage of time the model lacks microeconomic foundations assumes price stickiness has no role for expectations and simplifies the economy s complexities to a handful of crude aggregate relationships but countless teachers students and policymakers have found the model to be a powerful framework for understanding macroeconomic fluctuations recent developments have created new difficulties for the is lm model although the new difficulties are less profound than the traditional ones they are more likely to be fatal like all models the is lm model is not universal its assumptions and simplifications make it better suited to analyzing some issues than others and to describing some economic environments than others but neither the issues nor the environment of macroeconomic fluctuations are fixed in terms of issues one major change is that the debates between keynesians and monetarists about the relative effectiveness of monetary and fiscal policy that were central to macroeconomics in the 1960s and 1970s now play only a modest role in the analysis of short run fluctuations in terms of the environment one important change is that most central banks including the u s federal reserve now pay little attention to monetary aggregates in conducting policy but the is lm model is particularly well suited to presenting the debates between keynesians and monetarists and one of its basic assumptions is that the central bank targets the money supply in short recent developments work to the disadvantage of is lm this observation suggests that it is time to revisit the question of whether is lm is the best

policy uncertainties what investment choice for solar panel producers abstract solar power has achieved great development in the last decade and it should continue to play a central role in the face of climate change and sustainable development challenges this paper builds a real options model that provides a microeconomic analytical framework with the least squares monte carlo lsm method to assess the investment choices of a typical solar panel producer in china facing trade and domestic supply and demand side policy uncertainties it builds a baseline scenario and three policy scenarios with decreasing anti dumping and countervailing charges constant feed in tariff fit level and reduced investment cost a typical producer will have to make an investment decision on building a new production line in five years based on a decision impact analysis within 20 years the result shows an immediate investment decision for all scenarios the producer will have higher return from investment in building a solar power plant with a constant fit export is the optimal choice in other scenarios where investment return is lower after sensitivity analysis the paper concludes and can be used as a toolkit for solar panel producers and a reference for policy makers to evaluate the impact of policy uncertainties

heterodox theories of economic growth and income distribution a partial survey heterodox theories of economic growth and income distribution are surveyed focusing on major theories and recent contributions first a general framework for examining growth and distribution is discussed in terms of which classical marxian and post keynesian kaleckian and other theories are presented since this framework examines how variables are determined in equilibrium second dynamics behind equilibria are examined focusing on goods market and labor market changes third the framework is extended in a variety of ways to examine additional models addressing productivity growth and technical change money and inflation finance and debt additional distributional considerations multisector issues open economy questions and the environment it is concluded that the literature on heterodox theories of growth and distribution is vibrant large and growing and addresses many issues that are ignored or neglected in orthodox theories including power unemployment and aggregate demand

overcoming accumulation is a capitalist steady state economy possible abstract this article critically reviews the case for a steady state zero growth economy posing the question whether such an economy can be stable and socially just given that in the current global economy lack of growth is synonymous with crisis the sse thesis is analysed within a framework of marxian political economy concluding that a stable and just sse is possible but not feasible within the social relations of capitalism using the marxian analysis of capital accumulation the article then considers whether the reforms proposed by ecological economists can form an effective countervailing force to the drive for accumulation the conclusion is that such reforms can be successful but only in so far as they are complemented and brought to their logical conclusion by a wider attempt to transcend the capitalist relations of production

full reserve banking more cranks than brave heretics this paper analyses the main features and policy implications of full reserve banking frb proposals it argues that whilst frb advocates recognize the essential endogeneity of the money creation process they have failed to understand the post keynesian and monetary circuitist analyses of endogenous money which leads them to analytical errors including lending activity creates seigniorage privilege for commercial banks inflation is always and everywhere a monetary phenomenon the inability of distinguishing the actual from the planned supply of bank loans and money to be spent from money hoarded and the debt free money proposition the paper also argues that an frb system is likely to exacerbate financial instability for several reasons including the obsessive focus on commercial banks while ignoring non bank financial intermediaries and shadow banking a blind fascination for the safety and security of the payment system with little consideration for the financing needs of capitalist economies and an inherent deflationary bias furthermore frb arrangements would soon be undermined by the development of alternative near moneys finally frb will nullify the automatic stabilisers of fiscal policy and lead to a de facto dominance of monetary policy and unelected central bankers over fiscal policy and democratic decision making

bioeconomics and post keynesian economics a search for common ground abstract this paper is concerned with the links between two schools of economic thought which challenge the neoclassical synthesis bioeconomics refers to that school of economics stressing the fact that the human species is a part of the larger biosystem of the planet and ultimately subject to the same laws and limitations as other life forms post keynesian economics is a specific school of macroeconomics stressing the fundamental ideas of keynes marx and kalecki concerning uncertainty the nature of production and the role of government in economic affairs bioeconomics and post keynesian economics have much in common in terms of their methodological framework their emphasis on production rather than exchange and their interpretation of the social rate of discount a potential area of conflict between the two schools is their attitude toward economic growth the areas of commonality between the two schools are discussed and a research and policy program which combines the insights of both approaches is suggested

emergence of new economics energy transition models a review abstract well known academic and non academic institutions call for a new approach in economics able to capture features of modern economies including but not limited to complexity non equilibrium and uncertainty in this paper we provide a systematic review of ecological macroeconomic models that are suitable for the investigation of low carbon energy transitions and assess them based on the features considered desirable for a new approach in economics we draw two main conclusions firstly the knowledge base and structure of these existing ecological macroeconomic models are relevant alongside other types of models for the creation of a new approach in economics secondly the reviewed models are policy relevant especially in the context of the complexity and urgency of rapid energy transitions where increasingly policymakers require economic models able to capture real world characteristics however further improvements are needed to these models and future research should focus on i assuring comparability of models results and their policy insights ii incorporation of the relationships between macroeconomics finance and sustainability and iii the institutionalization of a new approach in economics

towards post keynesian ecological macroeconomics the paper starts with a brief criticism of macroeconomic analyses of different schools of thought for their focus on economic growth and maximisation of output this applies to the traditional keynesian approach which has focused on the achievement of sufficient aggregate demand to underpin full employment and full capacity utilisation down playing aggregate supply constraints this also applies to the neoclassical approach including the current new consensus macroeconomics approach which asserts the dominant role of aggregate supply in the long run and where growth is set by the so called natural rate of growth with no concerns over environmental and ecological issues the paper then proposes a different approach to macroeconomic analysis it explicitly acknowledges that economic growth is a double edged sword growth can help to alleviate persistent levels of high unemployment but it can also lead to potentially catastrophic environmental problems building on the monetary circuit theory and the demand led growth theory the paper offers an analysis of the interconnections and interdependence of the economic biophysical and social worlds and by doing it hopes to provide the building blocks for the establishment of post keynesian ecological macroeconomics

stagnation income distribution and monopoly power the deceleration in the rate of industrial growth in the indian economy since the middlesixties initially interpreted by some as a temporary downward deviation from trend hasnow come to be generally accepted as reflecting long run tendencies towards stagnation several explanations for these tendencies have been offered bhagwati and desai 1970 and bhagwati and srinivasan 1975 have focused on inefficiencies and the misallocationof resources arising from industrial policies pursued by the government others chakravarty 1974 raj 1976 and vaidyanathan 1974 among them have emphasisedthe sluggishness of agricultural growth which is alleged to have retarded industrial growthby limiting markets and the supply of wage goods and raw materials a third view reflectedin srinivasan and narayana 1977 for example has put the blame on a slackening of invest ment demand due to lower public investment but does not explain why public investmentfell or why its fall restrained industrial growth finally there is the explanation put forthin bagchi 1970 1975 1982 in nayyar 1978 and in parts of mitra 1977 that inequali ties in income distribution have resulted in a limited demand for industrial goods reducedincentives for investment and therefore reduced growth this view seems to suggest apositive relation between growth and income equality which is opposed to the generallyaccepted idea derived from cambridge growth models that higher growth requires greaterinequality the purpose of this paper is to examine the last explanation by considering the inter action between growth and income distribution in an underdeveloped economy with thehelp of a simple macroeconomic model the model is a stylisation of the indian economy so that we will be able to use the model to assess the argument that a deceleration in therate of growth of the indian industrial economy could have been caused by an unequaldistribution of income the argument will not be made that this income distributional con straint is the binding constraint on industrial growth the model will merely examine theinternal consistency of the argument that a bad income distribution could explain stagnation in the sense of reduced growth and show that in the indian context as in other similarcontexts this argument can be put forward in explaining stagnation our argument is first presented with a highly simplified schematisation of the indianeconomy which we shall call the basic model the economy modelled produces only one

degrowth and the supply of money in an energy scarce world abstract degrowth is going to happen whether governments want it or not because as fossil fuels run out incomes will shrink along with the energy supply this degrowth can either be unplanned and catastrophic or managed and relatively benign this paper argues that three tools are essential to avoid degrowth becoming a catastrophic collapse these are i a system to share the benefits from using increasingly scarce fossil fuels ii new ways of financing businesses and iii the introduction of debt free regional and local currencies

a response to critiques of full reserve banking in this response to critiques of full reserve banking or sovereign money proposals we challenge four of the main criticisms made by fontana and sawyer this issue i the impact of the proposal on government finances and fiscal policy ii the impact of the proposal on the supply of credit to the real economy iii the danger of private money creation re emerging in the shadow banking sector and iv the argument that shadow banking not commercial banking is the real source of financial instability

from ecological macroeconomics to a theory of endogenous money for a finite planet abstract this paper takes stock of the achievements and gaps of the emerging field of ecological macroeconomics which has brought insights from specific schools of macroeconomics most notably post keynesian to ecological economics with a strong emphasis on the endogeneity of money ecological macroeconomics has proposed fiscal monetary and prudential reforms to boost green investments and developed new modeling frameworks to explore the interactions between the financial macroeconomic and biophysical spheres while these proposals open a broader range of possibilities to engage in a socio ecological transition than those offered by the current paradigm of a financialized global economy they paradoxically suffer from similar limitations by placing much faith in green investments they impose a vision of the transition that presents strong technical and institutional limitations the field also fails to revisit its own understanding of macroeconomics and of specific phenomena e g financial instability through a biophysical lens in spite of increasing transdisciplinary evidence supporting this approach we suggest overcoming these limitations through institutionalist perspectives that understand money as a language through which value is created and legitimized those perspectives seem essential to re embed the governance of money within a worldview that acknowledges the finiteness and incommensurable values of earth s life support systems

migration networks and microenterprises in mexico are migration networks associated with lower capital costs or the alleviation of capital constraints we examine these questions with data measuring access to remittance flows among small scale entrepreneurs in mexico using a survey of more than 6000 self employed workers and small firm owners located in 44 urban areas of mexico we estimate the impact of attachment to migration networks on the level of capital investment the capital output ratio sales and profits of microenterprises the impact is identified from the geographic pattern of migration from mexico driven by the completion of rail lines in the early 1900s for the full sample of firms we find that migration is associated with higher investment levels and higher profits but not higher sales the strongest effects on investment are in the categories of automobiles tools and inventories when the sample is limited to firms in high capital sectors investment sales and profits all increase with attachment to the migration networks suggesting that attachment to the migration network alleviates capital constraints in those sectors

the abcs of financial education experimental evidence on attitudes behavior and cognitive biases this paper uses a large scale field experiment in india to study attitudinal behavioral and cognitive constraints that stymie the link between financial education and financial outcomes the study complements financial education with i participant classroom motivation with pay for performance on a knowledge test ii intensity of treatment with personalized financial counseling and iii behavioral nudges with financial goal setting the analysis finds no impact of pay for performance but significant effects of both counseling and goal setting on real financial outcomes these results identify important complements to financial education that can bridge the gap between financial knowledge and financial behavior change

do mature economies grow exponentially abstract in academic discussions and in public debate economic growth is commonly presumed to be exponential economic theories model growth in an exponential manner and central policy institutions regard growth rates of 2 3 to be normal also implying growth to be exponential in this paper we investigate empirically whether economic growth is indeed exponential by estimating autoregressive integrated moving average time series models based on gross domestic product data for 18 mature economies from 1960 to 2013 our findings cast doubts on whether these commonly discussed economic growth paths reflect the economic reality only two out of 18 mature countries depict exponential growth rates above these levels five have lower exponential growth and the development of eleven countries exhibit rather linear growth additionally we show that prominent theories of economic growth assume growth to be exponential and that a more heterogeneous set of theories is needed to explain different patterns of growth across time and space

austerity and fraud under different structures of technology and resource abundance we present the implications of a simple analytical theory in which economic crisis emerges from rising real resource costs in systems with high fixed costs relative to variable costs we show the integral role played by financial fraud in this process and explain the effects of austerity and stimulus policies in the face of crisis under differing combinations of fixed and variable costs

allocation distribution and scale towards an economics that is efficient just and sustainable abstract the practical policy of issuing tradeable permits for depletion and pollution requires for its implementation the clear separation of the three basic economic goals of efficient allocation equitable distribution and sustainable scale economic theory needs to catch up with policy in recognizing that scale issues cannot be reduced to either allocation or distribution

how the european union s and the united states anti dumping duties affect taiwan s pv industry a policy simulation abstract to address continuous increases in global energy demand countries around the world are developing coping plans that promote the development of renewable energy industries a major focus of these nations efforts is the photovoltaic pv industry since 2014 the european union eu and the united states have imposed anti dumping duties on pv industries in china and taiwan because the development of the pv industry is affected by relevant government policies taiwan is ranked second in the world in pv production and these duties will undoubtedly affect the future development of taiwan s pv industry thus pv manufacturers and the taiwanese government are extremely concerned about the impact of the anti dumping duties imposed on taiwan s pv industry in fact the development structure of the pv industry is complex and dynamic in this study by assessing industry characteristics the extant literature and responses from interviews with experts system dynamics sd is used to identify three key loops and explore the structure of the development of taiwan s pv industry finally trends in production capacity and financial conditions imposed by anti dumping duties on taiwan s pv industry are simulated to address the impact that different anti dumping duty rates could produce repeated simulations are conducted to determine the critical rate at which this industry may disappear in addition relevant topics are discussed and viable policy recommendations are proposed

solvency rule and capital centralisation in a monetary union brancaccio and fontana 2013 have suggested that the central bank influences the solvency conditions of firms and households in the economic system this solvency rule is examined here within a stylised model of a monetary union characterised by different rates of accumulation and inflation across its two member countries the rule highlights the existence of a relationship between the interest rate set by the central monetary authority and the allocation of ownership of existing physical capital among the member countries of the monetary union i e the rates of capital centralisation the paper also shows the nexus between solvency and government debt sustainability and examines the implications of deflationary or currency devaluation policies for the solvency conditions

macroeconomic modelling under energy constraints global low carbon transition scenarios abstract integrated assessment models provide a framework to study sustainability transitions and their economic impacts models seldom consider energy constraints taking supply availability for granted and thus suggesting a mere change in the energy mix from non renewables to renewables in order to address these limitations a macro economic module within a broader system dynamics model medeas has been developed the model has been run for the whole world from 1995 to 2050 under three different scenarios business as usual bau considering no further transition policies and keeping current trends green growth gg undertaking the low carbon transition according to the paris agreement set of policies and with high gdp growth standards and post growth pg testing the sustainability transition under a gdp non growth degrowth approach the results reveal the conflict between economic growth climate policy and the sustainability of resources whereas a bau approach would not even be an option to achieve climate goals a gg view would not only face the downsizing of economic output but neither would it be able to achieve the 2 c objective the success of the pg approach in meeting emissions objectives suggests a redirection from economic growth policies to an industrial policy that incorporates efficiency and redistribution

international migration remittances and household investment evidence from philippine migrants exchange rate shocks how do households respond to overseas members economic shocks overseas filipinos in dozens of countries experienced sudden heterogeneous changes in exchange rates during the 1997 asian financial crisis appreciation of a migrant s currency against the philippine peso leads to increases in household remittances from overseas the estimated elasticity of philippine peso remittances with respect to the exchange rate is 0 60 positive migrant shocks lead to enhanced human capital accumulation and entrepreneurship in origin households child schooling and educational expenditure rise while child labour falls households also work more hours in self employment and become more likely to start relatively capital intensive household enterprises

degrowth taking stock and reviewing an emerging academic paradigm degrowth has evolved within a decade from an activist movement into a multi disciplinary academic paradigm however an overview taking stock of the peer refereed degrowth literature is yet missing here we review 91 articles that were published between 2006 and 2015 we find that the academic degrowth discourse occupies a small but expanding niche at the intersection of social and applied environmental sciences the discourse is shaped by authors from high income mainly mediterranean countries until 2012 articles largely constitute conceptual essays endorsed by normative claims more recently degrowth has branched out into modelling empirical assessments and the study of concrete implementations authors tend to agree in that economic growth cannot be sustained ad infinitum on a resource constraint planet and that degrowth requires far reaching societal change whether degrowth should be considered as a collectively consented choice or an environmentally imposed inevitability constitutes a major debate among degrowth thinkers we argue that the academic discourse could benefit from rigid hypotheses testing through input output modelling material flow analysis life cycle assessments or social surveys by analyzing the potentials for non market value creation and identifying concrete well being benefits the degrowth discourse could receive wider public support and contribute to a paradigmatic change in the social sciences

beyond baseline and follow up the case for more t in experiments the vast majority of randomized experiments in economics rely on a single baseline and single follow up survey if multiple follow ups are conducted the reason is typically to examine the trajectory of impact effects so that in effect only one follow up round is being used to estimate each treatment effect of interest while such a design is suitable for study of highly autocorrelated and relatively precisely measured outcomes in the health and education domains this paper makes the case that it is unlikely to be optimal for measuring noisy and relatively less autocorrelated outcomes such as business profits household incomes and expenditures and episodic health outcomes taking multiple measurements of such outcomes at relatively short intervals allows the researcher to average out noise increasing power when the outcomes have low autocorrelation it can make sense to do no baseline at all moreover the author shows how for such outcomes more power can be achieved with multiple follow ups than allocating the same total sample size over a single follow up and baseline the analysis highlights the large gains in power from ancova rather than difference in differences when autocorrelations are low and a baseline is taken the paper discusses the issues involved in multiple measurements and makes recommendations for the design of experiments and related non experimental impact evaluations

an ecological monetary theory abstract while money is critical to the modern world ecological economics does not have a theory of money that is applicable to its theoretical framework and policy prescriptions accordingly the field often defers to an orthodox conception of money that is historically inaccurate and ontologically inconsistent the dualized nature of western philosophy informs orthodoxy by defining money according its function as a medium of exchange this conceptualization creates logical and historical problems that can be addressed by exploring an interdisciplinary literature that defines money according to its nature as a social relation expressed in a unit of account this paper develops an ecological monetary theory that is simultaneously rooted in a socio historical understanding of money s nature and in an ontology of social and ecological embeddedness such a theory provides ecological economists and others concerned with social and ecological equity with a framework from which to address monetary systems and policy

a stock flow fund ecological macroeconomic model this paper develops a stock flow fund ecological macroeconomic model that combines the stock flow consistent approach of godley and lavoie with the flow fund model of georgescu roegen the model has the following key features first monetary and physical stocks and flows are explicitly formalised taking into account the accounting principles and the laws of thermodynamics second georgescu roegen s distinction between stock flow and fund service resources is adopted third output is demand determined but supply constraints might arise either due to environmental damages or due to the exhaustion of natural resources fourth climate change influences directly the components of aggregate demand fifth finance affects macroeconomic activity and the materialisation of investment plans that determine ecological efficiency the model is calibrated using global data simulations are conducted to investigate the trajectories of key environmental macroeconomic and financial variables under i different assumptions about the sensitivity of economic activity to the leverage ratio of firms and ii different types of green finance policies

directing remittances to education with soft and hard commitments evidence from a lab in the field experiment and new product take up among filipino migrants in rome this paper tests how migrants willingness to remit changes when given the ability to direct remittances to educational purposes using different forms of commitment variants of a dictator game in a lab in the field experiment with filipino migrants in rome are used to examine remitting behavior under varying degrees of commitment these range from the soft commitment of simply labeling remittances as being for education to the hard commitment of having funds directly paid to a school and the student s educational performance monitored the analysis finds that the introduction of simple labeling for education raises remittances by more than 15 percent adding the ability to directly send this funding to the school adds only a further 2 2 percent the information asymmetry between migrants and their most closely connected household is randomly varied but no significant change is found in the remittance response to these forms of commitment as information varies behavior in these games is shown to be predictive of take up of a new financial product called edupay designed to allow migrants to pay remittances directly to schools in the philippines this take up seems largely driven by a response to the ability to label remittances for education rather than to the hard commitment feature of directly paying schools

finding common ground between ecological economics and post keynesian economics abstract post keynesian economics and ecological economics have in common that they are considered to be heterodox schools of thought aside from that there has not been a strong connection between them previous books on post keynesian economics contain no chapter on environmental or ecological issues this neglect has led leading ecological economists to criticize post keynesians for succumbing to the same growth paradigm as the neoclassical school this paper argues that the two approaches are complementary in the sense that they each have different strong points ecological economics has correctly pointed out that the growth of the global economy may not be welfare improving anymore whereas post keynesians have gained valuable insights into the functioning of the capitalist growth process to determine the feasibility of a synthesis between the two schools the paper compares their approaches to the problems of production consumption and economic dynamics as well as the associated policy recommendations it shows that on a theoretical level the two schools have much in common but their policy conclusions differ with regard to the desirability of further growth the paper concludes that a synthesis of both approaches may lead to a better understanding of how a capitalist economy operates in a natural environment with limits to growth and to better informed policy advice

anti dumping and countervailing duties under oligopoly abstract this paper constructs a conjectural variations model of international oligopoly in which the home country s optimal policy responses to the foreign government s subsidies and foreign firms dumping can be calculated some theoretical support is found for tariffs that countervail part of the foreign export subsidy the optimal fraction depends on the size of own and cross effects in demand and on the extent of market competition however no normative case is found for anti dumping duties

reconsidering monetary policy an empirical examination of the relationship between interest rates and nominal gdp growth in the u s u k germany and japan abstract the rate of interest the price of money is said to be a key policy tool economics has in general emphasised prices this theoretical bias results from the axiomatic deductive methodology centring on equilibrium without equilibrium quantity constraints are more important than prices in determining market outcomes in disequilibrium interest rates should be far less useful as policy variable and economics should be more concerned with quantities including resource constraints to investigate we test the received belief that lower interest rates result in higher growth and higher rates result in lower growth examining the relationship between 3 month and 10 year benchmark rates and nominal gdp growth over half a century in four of the five largest economies we find that interest rates follow gdp growth and are consistently positively correlated with growth if policy makers really aimed at setting rates consistent with a recovery they would need to raise them we conclude that conventional monetary policy as operated by central banks for the past half century is fundamentally flawed policy makers had better focus on the quantity variables that cause growth

the impact of financial literacy training for migrants remittances are a major source of external financing for many developing countries but the cost of sending them remains high in many migration corridors despite efforts to lower these costs by offering new products and developing cost comparison information sources many new and promising inexpensive remittance methods have relatively low adoption rates the lack of financial literacy among migrants has been identified as one potentially important barrier to competition and new product adoption this paper presents the results of a randomized experiment designed to measure the impact of providing financial literacy training to migrants training appears to increase financial knowledge and information seeking behavior and reduces the risk of switching to costlier remittance products but it does not result in significant changes in the frequency of remitting or in the remitted amount

international migration remittances and schooling evidence from el salvador abstract we examine the effect of remittances from abroad on households schooling decisions using data for el salvador following the massive war related emigration of the 1980s remittances became a significant source of household income throughout the 1990s we use the cox proportional hazard model to examine the determinants of school attendance measuring income from a source that is uncorrelated with parental schooling remittances we find that remittances have a large significant effect on school retention we estimate that while household income net of remittances has a small though significant impact on the hazard of leaving school in rural and urban areas remittances have a much larger impact on the hazard of leaving school in urban areas the effect of remittances is at its smallest 10 times the size of the effect of other income in rural areas the effect of remittances is about 2 6 times that of other income our finding is of interest in that it suggests that subsidizing school attendance particularly in poor areas may have a large impact on school attendance and retention even if parents have low levels of schooling

faraway so close coupled climate and economic dynamics in an agent based integrated assessment model abstract in this work we develop an agent based model that offers an alternative to standard computable general equilibrium integrated assessment models iams the dystopian schumpeter meeting keynes dsk model is composed of heterogeneous firms belonging to capital good consumption good and energy sectors production and energy generation lead to greenhouse gas emissions which affect temperature dynamics climate damages are modelled at the individual level as stochastic shocks hitting workers labour productivity energy efficiency capital stock and inventories of firms in that aggregate damages emerge from the aggregation of losses suffered by heterogeneous interacting and boundedly rational agents the model is run focusing on a business as usual carbon intensive scenario consistent with a representative concentration pathway 8 5 we find that the dsk model is able to account for a wide ensemble of micro and macro empirical regularities concerning both economic and climate dynamics simulation experiments show a substantial lack of isomorphism between the effects of micro and macro level shocks as it is typical in complex system models in particular different types of shocks have heterogeneous impact on output growth unemployment rate and the likelihood of economic crises pointing to the importance of the different economic channel affected by the shock overall we report much larger climate damages than those projected by standard iams under comparable scenarios suggesting possible shifts in the growth dynamics from a self sustained pattern to stagnation and high volatility and the need of urgent policy interventions

spousal control and intra household decision making an experimental study in the philippines i elicit causal effects of spousal observability and communication on financial choices of married individuals in the philippines when choices are private men put money into their personal accounts when choices are observable men commit money to consumption for their own benefit when required to communicate men put money into their wives account these strong treatment effects on men but not women appear related more to control than to gender men whose wives control household savings respond more strongly to the treat ment and women whose husbands control savings exhibit the same response changes in information and communication interact with underlying control to produce mutable gender specific outcomes

the ecology of money a critical assessment abstract this paper assesses the proposal to transform the monetary system into an ecology of money that is into a system made of a large diversity of complementary currencies its central aim is to examine whether this proposal could provide a systemic solution to both the ecological and financial crises as several authors most notably lietaer and douthwaite have argued to this end it analyses the two main arguments in favour of this proposal first it focuses on the claim that an ecology of money would be more resilient and less prone to crisis than the present monetary system it shows that this argument suffers from several conceptual flaws and argues that it fails to provide sufficient normative reasons to favour an ecology of money second this paper analyses the claim that an ecology of money could help defeat the monetary growth imperative that supposedly plagues our economies the paper raises serious doubts about the existence of such an imperative and questions the claim that an ecology of money could contribute to weaken it in a significant way

ecological macroeconomics an application to climate change ecological economics has not paid sufficient attention to the macroeconomic level both in terms of theory and modeling yet key topics debated in the field of ecological economics such as sustainable consumption reduction in working time the degrowth debate the energy exergy link and the rebound effect require a holistic and macro perspective while this deficiency has been identified before and keynesian economics has been generally suggested as a potent vehicle to establish economic system s thinking very little concrete theorizing and practical suggestions have been put forward we give further credence to this suggestion and demonstrate the value of tackling key concerns of ecological economics within a keynesian growth framework contextualized by an application to climate change we suggest that policy relevant recommendations need to be based on a consistent view of the macroeconomy we end with laying out key building blocks for a keynesian model framework for an ecological macroeconomics authors abstract

sustainability in a post keynesian growth model for an open economy the paper expands the bop constraint growth model and kaldorian regimes productivity and demand regimes in order to include some of the concerns raised by ecological economics in post keynesian models for open economies the demand regime is modified by taking into account porter s hypothesis which suggests that environmental innovations spurred by environmental policies can foster competitiveness as a result the equilibrium bop constrained rate of growth increases leading to a different version of thirlwall s law which opens room for analyzing the impact of environmental innovations on convergence between developing and developed economies the productivity regime in turn considers the growth and employment implications of innovations in labor productivity standard innovations and environmental efficiency environmental innovations it is argued that the fiscal policy and composition of public expenditure matter for long run growth employment and sustainability

don t tell on me experimental evidence of asymmetric information in transnational households although most theoretical models of household decision making assume perfect information empirical studies suggest that information asymmetries can have large impacts on resource allocation i demonstrate the importance of these asymmetries in transnational households where physical distance between family members can make information barriers especially acute i implement an experiment among migrants in washington dc and their families in el salvador that examines how information asymmetries can have strategic and inadvertent impacts on remittance decisions migrants make an incentivized decision over how much of a cash windfall to remit and recipients decide how they will spend a remittance migrants strategically send home less when their choice is not revealed to recipients recipients make spending choices closer to migrants preferences when the migrants preferences are shared regardless of whether or not the spending choices are revealed to the migrants suggesting that recipients choices are inadvertently affected by imperfect information

the euthanasia of the rentier a way toward a steady state economy abstract a positive interest rate has many impacts on ecology one of them is the pushing of economic growth in the present economy accumulation of capital is an end in itself according to the golden rule of accumulation the extension rate of the capital stock is equal to the interest rate however in the present economic conditions the interest rate is always significantly higher than zero due to the liquidity premium of money keynes in this context old proposals such as the free money approach of silvio gesell could provide interesting solutions gesell wanted to neutralize the liquidity premium by putting artificial carrying costs on money by increasing the stock of capital assets without being interrupted by economic crises the interest and profitability level should be reduced down to zero because in this situation every marginal saving and marginal investment would cause a negative interest or profitability rate they would be stopped though keynes was very excited by the proposals of gesell he criticized the fact that gesell did not see many of the further obstacles however these obstacles could be overcome by means of further institutional reforms

economic overview of the use and production of photovoltaic solar energy in brazil abstract the technology of photovoltaic power generation has been increasingly regarded in many countries as an alternative to reduce the environmental impacts associated with climate changes and dependence on fossil fuels countries such as germany and other european countries have been developed specific regulatory mechanisms to encourage its use either by government programs or by financial and or tax incentives in brazil despite the large existing solar potential the encouragement to technology is still incipient this paper aims to demonstrate the key aspects of the evolution of regulatory incentives to use photovoltaic solar energy in brazil and present the technologies and characteristics of photovoltaic power generation

small scale cooperative banking and the production of capital reflecting on the role of institutional agreements in supporting rural livelihood in kampot cambodia this paper explores the ecological economics of small scale cooperative banking sscb through reference to the empirical case of a rice farming village in kampot cambodia it combines georgescu roegen s discussion of an economy s capacity to produce economic processes with ostrom s concept of institutional performance in order to address the implications and functioning of sscb within a small farmer economy the local collective action situation of maintaining and making use of a sscb system a specific finance model provides the studied community with access to a pooled capital fund that may play an important role in ensuring its capacity to produce and reproduce economic processes according to its own specifications the coordinated action among the villagers which matches up well with ostrom s criteria for effective institutional performance of common pool resource use governance is found to include social and environmental dimensions which we understand to be necessary for achieving transformations toward more sustainable economic activity while we do not wish to suggest that the adoption of sscb guarantees either improved ecological or social impacts our results suggest that this finance model could play a supporting role in enhancing the potential of small farming communities to improve both should they wish to do so

unemployment and the real wage the economic basis for contesting political ideologies using the keynesian theory of effective demand this paper demonstrates how particular models such as that of cooperative capitalism enunciated by the left keynesian social democrats the marxian model of profit squeeze emphasizing distributive conflict and even the conservative model relying on supply side stimulus fit in as particular variants of a more general theoretical scheme through a reconstruction of the familiar is schedule the argument is weaved around the theme of the relations between unemployment and real wage in the context of both a closed and an open economy to explain the common macroeconomic basis of contesting ideologies copyright 1990 by oxford university press

hawtrey harvard and the origins of the chicago tradition milton friedman has claimed that his monetary economics derives from a chicago tradition that in the 1930s offered a monetary explanation of cyclical fluctuations in general and the great depression in particular an optimistic view of the power of monetary policy and a case for governing it by rules rather than discretion it is argued that all the elements of this tradition except the last are to be found in earlier writings of ralph hawtrey allyn young and lauchlin currie and that there is much evidence to point to a direct influence running from hawtrey through harvard to chicago

economic schools of thought on the environment investigating unity and division how do ecological and heterodox economists differ if at all from each other and from neoclassical economists addressing environmental problems in 2009 we probed this question by conducting an international survey across these communities namely at conferences of the european society for ecological economics the association for heterodox economics and the european association of environmental and resource economists the research was designed to gain insight into the extent to which ecological economics can be described as heterodox and a distinct field from orthodox environmental and resource economics conflicting visions of ecological economics have led to a prevalence of neoclassical articles and thought mixed in amongst more heterodox work we introduce a novel classification of work in the field of environmental policy in order to test for the existence of differences in terms of methodological and ideological approaches how heterodox economists understand environmental issues is also an important question to answer if there is to be more collaboration between them and ecological economists the findings have implications for cooperation and the future direction of both ecological and heterodox economics

some instability puzzles in kaleckian models of growth and distribution a critical survey we tackle the issue of the possible instability of the kaleckian distribution and growth model distinguishing between keynesian and harrodian instability we review various mechanisms that have been proposed by critics of the kaleckian model to tame harrodian instability while bringing back the rate of utilisation to its normal rate we find that the mechanisms that have been suggested are far from convincing therefore we conclude that it may be premature for the critics of the kaleckian model to dismiss the endogeneity of the rate of capacity utilisation in long run growth equilibrium copyright the author 2010 published by oxford university press on behalf of the cambridge political economy society all rights reserved oxford university press

does slow growth lead to rising inequality some theoretical reflections and numerical simulations this paper explores the hypothesis most notably made by french economist thomas piketty that slow growth rates lead to rising inequality if true this hypothesis would pose serious challenges to achieving prosperity without growth or meeting the ambitions of those who call for an intentional slowing down of growth on ecological grounds it would also create problems of social justice in the context of a secular stagnation the paper describes a closed demand driven stock flow consistent model of savings inequality and growth in a macroeconomic framework sigma with exogenous growth and savings rates sigma is used to examine the evolution of inequality in the context of declining economic growth contrary to the general hypothesis we find that inequality does not necessarily increase as growth slows down in fact there are certain conditions under which inequality can be reduced significantly or even eliminated entirely as growth declines the paper discusses the implications of this finding for questions of employment government fiscal policy and the politics of de growth

the rise of us anti dumping activity in historical perspective empirical studies of anti dumping activity focus almost exclusively on the period since 1980 this paper puts recent us anti dumping experience in historical context by studying the determinants of annual case filings over the past half century the conventional view that few anti dumping cases existed prior to 1980 is not correct although most did not result in the imposition of duties the increased number of cases in recent decades largely reflects petitions that target multiple source countries the number of imported products involved has actually fallen since the mid 1980s the annual number of anti dumping cases is influenced by the unemployment rate the exchange rate import penetration closely related to the decline in average tariffs and changes in the anti dumping law and its enforcement in the early 1980s

stock flow consistent macroeconomic models a survey the stock flow consistent sfc modelling approach grounded in the pioneering work of wynne godley and james tobin in the 1970s has been adopted by a growing number of researchers in macroeconomics especially after the publication of monetary economics by godley and lavoie which provided a general framework for the analysis of whole economic systems and the recognition that macroeconomic models integrating real markets with flow of funds analysis had been particularly successful in predicting the great recession of 2007 2009 we introduce the general features of the sfc approach for a closed economy showing how the core model has been extended to address issues such as financialization and income distribution we next discuss the implications of the approach for models of open economies and compare the methodologies adopted in developing sfc empirical models for whole countries we review the contributions where the sfc approach is being adopted as the macroeconomic closure of microeconomic agent based models and how the sfc approach is at the core of new research in ecological macroeconomics finally we discuss the appropriateness of the name sfc for the class of models we survey

who you train matters identifying complementary effects of financial education on migrant households there has long been a concern among policymakers that too much of remittances are consumed and too little saved limiting the development impact of migration financial literacy programs have become an increasingly popular way to try and address this issue but to date there is no evidence that they are effective in inducing savings among remittance receiving households nor is it clear whether such programs are best targeted at the migrant the remittance receiver or both the authors conducted a randomized experiment in indonesia which allocated migrants and their families to a control group a migrant only training group a family member only training group and a training group in which both the migrant and a family member were trained three rounds of follow up surveys are then used to measure impacts on the financial knowledge behaviors and remittance and savings outcomes of the remaining household they find that training both the migrant and the family member together has large and significant impacts on knowledge behaviors and savings training the family member alone has some positive but smaller effects whilst training only the migrant leads to no impacts on the remaining family members the results show that financial education can have large effects when provided at a teachable moment but that this impact varies greatly with who receives training

does credit create a growth imperative a quasi stationary economy with interest bearing debt abstract this paper addresses the question of whether a capitalist economy can ever sustain a stationary or non growing state or whether as often claimed capitalism has an inherent growth imperative arising from the charging of interest on debt we outline the development of a dedicated system dynamics macro economic model for describing financial assets and liabilities in a stock flow consistent framework falstaff and use this model to explore the potential for stationary state outcomes in an economy with balanced trade credit creation by banks and private equity contrary to claims in the literature we find that neither credit creation nor the charging of interest on debt creates a growth imperative in and of themselves this finding remains true even when capital adequacy and liquidity requirements are imposed on banks we test the robustness of our results in the face of random variations and one off shocks we show further that it is possible to move from a growth path towards a stationary state without either crashing the economy or dismantling the system nonetheless there remain several good reasons to support the reform of the monetary system our model also supports critiques of austerity and underlines the value of countercyclical spending by government