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

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

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

local context academic entrepreneurship and open science publication secrecy and commercial activity among japanese and us scientists abstract like the us before it japan has adopted a series of policy initiatives designed to encourage the commercialization of academic science however such initiatives may also adversely affect open science based on matched surveys of almost 1000 researchers in japan and over 800 in the us the paper examines rates of commercial activity reasons to patent and secrecy related to research results in particular it examines the extent to which participation in commercial activity is associated with publication secrecy the results show that patenting rates are higher in japan while industry funding is more common in the us in addition the overall level of publication secrecy is greater in japan and in both countries individuals who are commercially active are less likely to share their research results through publication but patents are less directly linked to commercial activity in japan than in the us and have less impact on academic secrecy the results suggest that academic entrepreneurship is associated with reduced participation in open science but that the extent of adverse effects depends significantly on institutional context

capitalism s growth imperative a capitalist firm operating in a competitive market is subject to a growth imperative because uncertainty about the profit rate under a no growth policy makes the firm s prospects highly unattractive in finite time and bankruptcy practically certain in the long run a no growth policy determines consumption and investment so that they and capital would remain constant over time if the latter s expected return were realized with certainty simulation is used to arrive at the probability of bankruptcy by the end of t periods and the expected values of capital and money for relevant combinations of time and uncertainty under successively more realistic models of a no growth firm in a competitive market the sensitivity of the results to variation in the parameters in each of the models is evaluated finally we consider what firms might actually do to achieve the benefits of growth and more attractive prospects of survival

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

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

debt deleveraging and the liquidity trap a fisher minsky koo approach in this paper we present a simple new keynesian style model of debt driven slumps that is situations in which an overhang of debt on the part of some agents who are forced into rapid deleveraging is depressing aggregate demand making some agents debt constrained is a surprisingly powerful assumption fisherian debt deflation the possibility of a liquidity trap the paradox of thrift a keynesiantype multiplier and a rationale for expansionary fiscal policy all emerge naturally from the model we argue that this approach sheds considerable light both on current economic difficulties and on historical episodes including japan s lost decade now in its 18th year and the great depression itself

the connection between public transfers and private interfamily transfers abstract this paper investigates the anti poverty effectiveness of public transfers taking private transfer responses into account widespread altruistically motivated private transfers would neutralize the distributional impact of public transfers but exchange motivated transfers can reinforce the effects of public transfers on the distribution of economic well being the common technique for gauging anti poverty effectiveness subtracting public transfers from other income and measuring the poverty rate counterfactual yields results that are close to a more complex procedure that takes private transfer responses into account and some of the empirical findings suggest an exchange rather than altruistic motive for private transfers indicating that the effects of public transfers can be magnified by private behavior this is an exact reversal of the prediction that public transfers merely supplant private ones

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

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

a patent system for both diffusion and exclusion public policy analysis of optimal patent regimes is often framed as a tradeoff between static and dynamic efficiency in this analytical framework weak patent protection and strict antitrust policy are taken to be directed toward static concerns while protection of intellectual property through strong patent laws is taken as a reflection of broader social concerns for long run growth and technological progress this characterization has some truth but the magnitude of the conflict between static and dynamic efficiency can easily be exaggerated in this article i want to argue that weak patent protection need not be inimical to economic growth and conversely that strong patent protection need not be an enemy of diffusion appropriately structured patent law and antitrust rules can together ensure incentives for r d and also induce cooperation among firms in diffusing r d results through licensing and other means at the same time cooperation among firms at the r d stage can counterbalance weak patent protection by internalizing spillovers from ongoing r d programs and such cooperation may also produce additional spillovers from the existing knowledge

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

a monetary minsky model of the great moderation and the great recession abstract steve keen s model of minsky s financial instability hypothesis keen 1995 displayed qualitative characteristics that matched the real macroeconomic and income distributional outcomes of the preceding and subsequent fifteen years a period of economic volatility followed by a period of moderation leading to a rise of instability once more and a serious economic crisis this paper extends that model to build a strictly monetary macroeconomic model which can generate the monetary as well as the real phenomena manifested by both the great recession and the great moderation

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

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

potential consequences on the economy of low or no growth short and long term perspectives potential consequences on the economy of low or no growth short and long term perspectives

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

estimating the personal distribution of income with adjustment for within family variation the 1970 and 1979 current population surveys are used to compute the personal distribution of income the major innovation in this paper is that all individuals in the household are not treated identically in particular children receive a different proportion of income than do adults that proportion is estimated its variations with respect to household characteristics are discussed and a final distribution of personal income is computed that distribution has considerably fatter tails than does the one normally used

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

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

sharing within families implications for the measurement of poverty among individuals in canada one major objection to neoclassical economic theory raised by feminist economists is that traditional theory neglects what goes on within families this paper examines the policy relevance of this feminist critique by asking whether our understanding of the poverty experiences of individual canadians is significantly affected by the assumptions we make about how financial resources are shared within families using microdata from the 1982 1986 and 1992 family expenditure surveys the authors simulate the consequences of alternative sharing rules from equal sharing to minimal sharing their conclusion is that it matters a great deal what we assume about how financial resources are shared within families

coping with collapse a stock flow consistent monetary macrodynamics of global warming abstract this paper presents a macroeconomic model that combines the economic impact of climate change with the pivotal role of private debt using a stock flow consistent approach based on the lotka volterra logic we couple its nonlinear monetary dynamics of underemployment and income distribution with abatement costs a calibration of our model at the scale of the world economy enables us to simulate various planetary scenarios our findings are threefold 1 the 2 c target is already out of reach absent negative emissions 2 the long term resp short term results of climate change on economic fundamentals may lead to severe economic consequences without the implementation resp in case of too rapid an application of proactive climate policies global warming resp too fast transition forces the private sector to leverage in order to compensate for output and capital losses resp to lower carbon emissions thus endangering financial stability 3 implementing an adequate carbon price trajectory as well as increasing the wage share fostering employment and reducing private debt make it easier to avoid unintended degrowth and to reach a 2 5 c target

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

reconsidering the bayh dole act and the current university invention ownership model abstract the bayh dole act of 1980 provided u s universities with the right to commercialize employees inventions made while engaged in government funded research this paper argues that the current university invention ownership model in which universities maintain de jure ownership of inventions is not optimal either in terms of economic efficiency or for advancing the social interest of rapidly commercializing technology and encouraging entrepreneurship we argue that this model is plagued by ineffective incentives information asymmetries and contradictory motivations for the university the inventors potential licensees and university technology licensing offices tlos these structural uncertainties can lead to delays in licensing misaligned incentives among parties and obstacles to the flow of scientific information and the materials necessary for scientific progress the institutional arrangements within which tlos are embedded have encouraged some of them to become revenue maximizers rather than facilitators of technology dissemination for the good of the entire society we suggest two alternative invention commercialization models as superior alternatives the first alternative is to vest ownership with the inventor who could choose the commercialization path for the invention for this privilege the inventor would provide the university an ownership stake in any returns to the invention the inventor would be free to contract with the university tlo or any other entity that might assist in commercialization the second alternative is to make all inventions immediately publicly available through a public domain strategy or through a requirement that all inventions be licensed non exclusively both alternatives would address the current dysfunctional arrangements in university technology commercialization

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

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

minsky models a structured survey minsky s ideas have recently gained prominence in the mainstream as well as in the heterodox literature however there exists no agreement upon the formal presentation of minsky s insights the aim of this paper is to survey the literature and identify differences and similarities in the ways through which minskyan ideas have been formalised we distinguish between the models that focus on the dynamics of debt or interest with no or a secondary role for asset prices and the models in which asset prices play a key role in the dynamic behaviour of the economy within the first category of models we make a classification between i the kalecki minsky models ii the kaldor minsky models iii the goodwin minsky models iv the credit rationing minsky models v the endogenous target debt ratio models and vi the minsky veblen models within the second category of models we distinguish between i the equity price minsky models and ii the real estate price minsky models key limitations of the models and directions for future research are outlined

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

selling university technology patterns from mit many research universities engage in efforts to license inventions developed by university affiliated inventors however no systematic explanation of the conditions under which university inventions will be licensed or commercialized has been provided drawing on transaction cost economics i provide a conceptual framework to explain which university inventions are most likely to be licensed commercialized and generate royalties and who will undertake that commercialization i test this framework on data on the 1 397 patents assigned to the massachusetts institute of technology during the 1980 1996 period the results showthat 1 university inventions are more likely to be licensed when patents are effective 2 when patents are effective university technology is generally licensed to noninventors 3 when patents are effective licensing back to inventors increases the likelihood of license termination and reduces the likelihood of invention commercialization and 4 the effectiveness of patents increases royalties earned for inventions licensed to noninventors the implications of these findings for innovation management and strategy entrepreneurship and university technology commercialization are discussed

r d spillovers patents and the incentives to innovate in japan and the united states national surveys of r d labs across the manufacturing sectors in the us and japan show that intraindustry r d knowledge flows and spillovers are greater in japan than in the us and the appropriability of rents due to innovation less patents in particular are observed to play a more central role in diffusing information across rivals in japan and appear to be a key reason for greater intraindustry r d spillovers there suggesting that patent policy can importantly affect information flows uses of patents differ between the two nations with strategic uses of patents particularly for negotiations being more common in japan

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

ecological monetary economics a post keynesian critique the monetary analysis of some ecological economists currently appears to be mostly articulated around the following core a stationary economy and a fortiori a degrowth economy is incompatible with a system in which money is created as interest bearing debt to question the relevance of the debt money positive interest rate output growth nexus this paper adopts a critical stance towards the currently emerging ecological monetary economics from the standpoint of another strand of heterodox economics the post keynesian approach in its current state ecological monetary economics is at odds with post keynesian economics in its analysis of the money growth relationship this will be shown using the theory of endogenous money and a simple cambridgian kaleckian model where debt money and a positive interest rate are compatible with a full stationary economy

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

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

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

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

time series growth in the female labor force in this paper we investigate the reasons for the growth in the female labor force in america during the twentieth century in our research we study the longer term trends since 1900 and conduct a more intensive examination of developments after the second world war on the basis of our work we conclude that rising real wages accounted for 60 of the total growth in the female labor force half of this wage effect in expanding labor supply was the fertility reducing consequence of a higher female wage

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

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