Working Papers
-
Working Paper Series
How Money Drives US Congressional Elections
Aug 2016
Social scientists have stubbornly held that money and election outcomes are at most weakly linked. New research provides clear evidence to the contrary.
-
Working Paper Series
Latent Instrumental Variables: A Critical Review
Jul 2016
This paper considers the estimation problem in linear regression when endogeneity is present, that is, when explanatory variables are correlated with the random error, and also addresses the question of a priori testing for potential endogeneity.
-
Working Paper Series
Ethics vs. Ethos in US and UK Megabanking
May 2016
Company law in the US and UK fails to acknowledge that authorities’ propensity to rescue giant banks from the consequences of insolvency assigns taxpayers a coerced and badly structured equity stake in too-big-to-fail institutions.
-
Commentary
Who is afraid of Neoliberalism? A comment on Mirowski
May 2016
While the Neoliberal movement’s concerns extend into a broad political reorganization of society, it remains intimately connected with neoclassical economic thought.
-
Commentary
Who will willingly hold non-interest-bearing money?
May 2016
If the government/CB together finance an increased fiscal deficit with permanent non-interest-bearing fiat money, then some private sector agents have to hold non-interest-bearing monetary base, and must continue to do so even when policy and market interest rates have moved away from the ZLB. How is this possible in an environment where most bank deposit money is potentially interest-bearing?
-
Commentary
Why a money financed stimulus is not offset by an inflation tax
May 2016
In the growing debate about the pros and cons of a monetary financed fiscal stimulus (a.k.a. helicopter money) it is argued by some participants that a money-financed stimulus will have no more effect than a debt financed stimulus since:
-
Working Paper Series
Stock-Market Expectations: Econometric Evidence that both REH and Behavioral Insights Matter
May 2016
Behavioral finance views stock-market investors’ expectations as largely unrelated to fundamental factors. Relying on survey data, this paper presents econometric evidence that fundamentals are a major driver of investors’ expectations.
-
Commentary
Thoughts on Mirowski and Neoliberalism from a Polanyian Perspective
May 2016
Karl Polanyi demonstrated that Classical Liberalism and current Neoliberalism were organized political movements, but their successes sparked political backlashes against laissez-faire economics — a dialectic that continues to shape politics to this day.
-
Commentary
On Neoliberalism: Comments to Mirowski
May 2016
The following is based on Chapter 1 of my forthcoming book, Crisis and Sustainability. The Delusion of Free Markets.
-
Working Paper Series
On Historical Household Budgets
May 2016
The paper argues that household budgets are the best starting point for investigating a number of big questions related to the evolution of the living standards during the last two-three centuries.
-
Grantee paper
Towards a theory of shadow money
Apr 2016
What does the rise of shadow banking mean for monetary theory and practice? (How) should we change our traditional theories of money to capture the complex practices through which money is created in modern financial systems?
-
Working Paper Series
Luigi Pasinetti and the Political Economy of Growth and Distribution
Mar 2016
This paper provides a careful and synthetic overview of his contributions as well as a reconstruction of Pasinetti’s philosophical approach to economics as a science meant to serve humanity.
-
Working Paper Series
A Method for Agent-Based Models Validation
Mar 2016
This paper proposes a new method to empirically validate simulation models that generate artificial time series data comparable with real-world data.
-
Working Paper Series
Carbon Emissions and Economic Growth: Production-based versus Consumption-based Evidence on Decoupling
Mar 2016
We assess the Carbon-Kuznets-Curve hypothesis using internationally consistent and comparable production-based versus consumption-based CO2 emissions data for 40 countries (and 35 industries) during 1995-2007 from the World Input Output Database (WIOD).
-
Working Paper Series
Comments on Paul Davidson’s “Full Employment, Open Economy Macroeconomics, and Keynes’ General Theory: Does the Swan Diagram Suffice?”
Feb 2016
This is a response to a critique by Paul Davidson of our 2013 book Keynes: Useful Economics for the World Economy and related work, where we describe, amongst other things, how the Swan diagram can be used to show how economies can use policy tools to achieve internal and external balance.