rss_2.0Journal of Heterodox Economics FeedSciendo RSS Feed for Journal of Heterodox Economics of Heterodox Economics Feed Corporate Tax Burden Affect Growth? Evidences from OECD Countries<abstract><title style='display:none'>Abstract</title><p>This paper explores the tax burden - economic growth nexus. It advances an explanatory framework for the existence of such nexus. First, we argue that tax burden reduces the income remaining at the disposal of the private sector. Second, we empirically test for the existence of a non-linear impact of corporate tax burden on growth for a dataset of 21 OECD countries, for the period 1975 - 2012. We mostly involve mixed effects models with three levels of nested random effects. Our main empirical result consists in the evidences of a non-linear relation between corporate tax burden and economic growth.</p></abstract>ARTICLEtrue and Methodological Context of (Post)-Modern Econometrics and Competing Philosophical Discourses for Policy Prescription<abstract><title style='display:none'>Abstract</title><p>This research article was championed as a way of providing discourses pertaining to the concept of “Critical Realism (CR)” approach, which is amongst many other forms of competing postmodern philosophical concepts for the engagement of dialogical discourses in the area of established econometric methodologies for effective policy prescription in the economic science discipline. On the whole, there is no doubt surrounding the value of empirical endeavours in econometrics to address real world economic problems, but equally so, the heavy weighted use and reliance on mathematical contents as a way of justifying its scientific base seemed to be losing traction on the intended focus of economics when it comes to confronting real world problems in the domain of social interaction. In this vein, the construction of mixed methods discourse(s), which favour that of CR philosophy is hereby suggested in this article as a way forward in confronting with issues raised by critics of mainstream economics and other professionals in the postmodern era.</p></abstract>ARTICLEtrue Productivity and Service Stake. A Heterodox Widened Approach<abstract><title style='display:none'>Abstract</title><p>The aim of the present paper is to put together, point out and underline the core characteristics of a generalized concept of productivity built on a heterodox outlook. The analysis is conducted under the assumption that the developing knowledge in nowadays society and the concern for basing the economy on it require a reviewed approach on productivity. Relevant moments from the economic thought and literature are invoked(certain approaches on productivity from the most representative Romanian economic thought here included); the research finds reason and main conceptual grounds in the genuine liberalism and in the service economy, by a critical view on the concern for productivity growth as commonly seen and calculated. The paper also aims to bring to the current attention some pioneer work, less known but very important for the productivity mark. The paper develops the service stake as defining value creation and reveals the most important differences between common productivity (usually calculated productivity) and the new approach that takes into account the generalized service approach consistent with nowadays society.</p><p>This paper is a theoretical presentation designed to serve as an improved context for reconsidering the researches focused on – or connected with – productivity.</p></abstract>ARTICLEtrue Impact of European Uncertainty on the Gulf Cooperation Council Markets<abstract><title style='display:none'>Abstract</title><p>The interconnectedness of global economies made it inevitable for countries to isolate themselves rather, they partner with each other majorly for economic and political gains. This often at times have a positive and negatives outcomes base on the fact that the more advanced economy tends to cast shadow on the smooth and predictable movement of some markets in the less advanced economy. On this note, it is essential for scholars to relate and determine the impact and the direction of the movement specifically with regards to stock market performance and Economic Policy Uncertainty (EPU), as it concerns the Gulf Cooperation Council (GCC) region and the continent of Europe. Hence, this study investigates the effect of the changes of European Policy Uncertainty index on net oil exporter countries of the GCC stock market performance. Using the Vector Autoregressive (VAR) methodology to estimate the result, the outcome of the result implies that the impact of the changes in European policy uncertainty index on GCC’s stock markets is negative but not significant; the effect of Dollar exchange rate and US 3-month Treasury bill rate is not significant and finally, the effect of Brent Oil price on GCC countries’ stock markets is positive and significant.</p></abstract>ARTICLEtrue of Product Complexity in Africa:<abstract><title style='display:none'>Abstract</title><p>Applying the linear LAS (Latin American Structuralists) technological intensity model in Africa, this paper presents African nations are still diversifying their outputs towards the ubiquitous (fewer complexes) products. Put it simple, using the economic complexity index of Africa (explanatory variable) as a proxy for the technological intensity in Africa and per capita GDP gap (explanatory variable) as a proxy for technology gap, the paper presents a significant and positive relationship between economic complexity index of Africa and the time derivative of the economic complexity index of Africa (the explained variable). This implies that “weak” effort African nations exerted so far in diversifying their outputs towards the less ubiquitous commodities and absence of “automatic catch up tendency” (unlike what is presupposed by the mainstream neo-classical growth models). The linear panel data regression is employed on sample of 23 African economies and OECD member economies for the period 1996-2014.</p></abstract>ARTICLEtrue of NHS Cost-Saving and its Morality on the ‘Living Dead’<abstract><title style='display:none'>Abstract</title><p>This article has been championed on account of the experience of (perceived) economic rationalization which seem to be the foremost of patients’ care as opposed to addressing distress to human existing well-being, while in a state of being tormented with agonizing news of prolonged ill health. Several considerations have been proposed as a way of addressing the need to rationalize resources in ensuring the long standing history of the NHS focus on <italic>‘</italic>free health care<italic>’</italic> is critically covered, but not in a way that destroys confidence on the ability of professionals to manifest ethical prudence in their acts of judgments about whether patients care is to be made immediate or prolonged on a waiting list. There is certainly serious impacts to be comprehended with in situation of economic rationality through services provided by the NHS; it is believed that tangible outcomes about definitive care for patients can be addressed collaboratively.</p></abstract>ARTICLEtrue versus Keynes: the causal nexus between Government Expenditures and Economic Growth: An Empirical study of Burkina Faso<abstract><title style='display:none'>Abstract</title><p> The spending patterns of governments in the world especially developing economies have changed significantly over the last several decades. The main objective of this paper is analysing the relationship between government expenditures and growth in Burkina Faso’s economy. The study focuses on testing the various versions of Wagner’s hypothesis using the Burkina Faso data between 1960-2015 by an Autoregressive-Distributed Lag (ARDL) model. Cointegration tests, the long-run parameters and causality tests found valid Keynesian and Wagnerian relationship, but results are sensitive to the variable definition; the use of relative and absolute measures, local and international currency leads to a different conclusion.</p></abstract>ARTICLEtrue Old for New: Econobiology and Econophysics as Explanatory Frameworks of Current Financial System<abstract><title style='display:none'>Abstract</title><p> The present study aim is to deliver a succinct overview of the existing literature concerning economic systems, and in particular financial systemsfrom the Econobiology, or the “evolutionary economics” perspective, mainly treated within the Adaptive Market Hypothesis, and the Econophysics perspective.In the heterodox frame, both the A.M.H. and the Econophysics are trying to explain the complexity of financial markets from a „bottom up” perspective, hence „macroscopic” properties are viewed as the result of interactions at the level of the ‘microscopic’ constituents (Rickles, 2011, p.531-565). Given the expanded level of information we can access nowadays, we consider that an important attention should be given to the inclusion of both perspectives as explanatory frameworks of the financial markets.</p></abstract>ARTICLEtrue programs and policies assessment in the transition economies during the transition and the post-transition period<abstract><title style='display:none'>Abstract</title><p> We analyze empirically whether IMF financial assistance in 31 transition countries, during the transition and the post-transition period, has achieved the purposes stated in the IMF's own articles of agreement, namely employment enhancement, confidence provision and export promotion. By employing panel data and impact evaluation analysis, we find that IMF presence persistently fails to be correlated with upgrades in sovereign rating, FDI attraction and employment improvement. By focusing on specific IMF policies, we present some intriguing results, which reveal whether these individual policies actually contribute to the achievement of the official IMF purposes or not.</p></abstract>ARTICLEtrue for Happiness in the Global Village<abstract><title style='display:none'>Abstract</title><p>This article employs three different measures of life satisfaction viewed as proxy for social utility, in order to test for the possible non-linear interactions between the quality of public governance, as reflected by the World Bank indicators, and globalization, as captured by the KOF index, for a dataset of 99 countries for a time span between 2001 and 2010. We conclude that efficient and trustworthy public policies may enhance life satisfaction. Moreover, there may occur a synergy effect between ‘good’ governance and globalization (especially for those components describing social globalization), while there is no substitute for the failure of public policies, in terms of human development and growth (with the effects on human development being substantially more important than those corresponding to the increase in national wealth).</p></abstract>ARTICLEtrue commonsense assessment of Arrow’s theorem<abstract><title style='display:none'>Abstract</title><p>The usual, pessimistic interpretation of Arrow’s General Possibility Theorem (often “Impossibility” in textbooks) is excessive. The impossibility defined by Arrow occurs only in presence of a tie or of a cycle. These cases are rare or very rare, and their presence may be assessed ex post. If they occur it is necessary to resort to a second-best rule, but this two-stage procedure does not induce strategic behavior, nor impeaches the use of the Condorcet rule (in observance of the axioms) in all the others.</p><p>The paper conclusions sustain that implementation of modern management systems to government’s public institutions should deal with a different behavior used to know at companies. In this respect, the paper high-lights different aspects between companies and public institutions behavior admitting similarities on organizational structure and internal procedures.</p></abstract>ARTICLEtrue Notion of Entropy in an Economic Analysis: the Classical Examples and New Perspectives<abstract><title style='display:none'>Abstract</title><p>This article deals with the notion of entropy in its applicability to economics. Briefly, it regards some classical cases of such a use as the labour concept of Podolinsky and the bioeconomics of Georgescu-Roegen. This article also attempts to apply the concept of entropy to the analysis of market structures in the example of the perfect competition model. Thus, the article asserts that if we compare different entropy concepts with the main characteristics of a market with perfect competition, we must conclude that the latter is a structure with the maximum level of entropy. But maximum entropy means the system’s death. So, as a system, a perfectly competitive market cannot exist. Despite economists recognise the unreality of such a market from an empirical point of view, the application of the entropy concept helps us to repeat this approval also as a methodological one. The use of the entropy concept as a methodological instrument helps to question some other economic models, too.</p></abstract>ARTICLEtrue Czechoslovakia: A Theoretical Critique<abstract><title style='display:none'>Abstract</title><p>The paper focuses on the proposals of post-war order in Czechoslovakia and its theoretical analysis. While there exists a wide range of studies, both Czech and foreign, dedicated to the history of Czechoslovakia in the post-war period, a majority of the studies deals with political development. Then the interpretations of the failure of President Beneš’ “distinct model of socialism” are purely political – weakness of President Beneš and democratic elites, the aggressive politics of Communist party, influence of Soviet diplomacy, etc. On the other hand, economic studies are only descriptive without theoretical analysis of proposed post-war order. Our paper offers different interpretation of the fall of Czechoslovak democratic regime (1945–1948). Using the framework of Austrian school, we are trying to show the institutional incompatibility of proposed post-war order. Special emphasis is put on the relation of freedom, democracy and socialist economic planning.</p></abstract>ARTICLEtrue Coordination Problem in the Stockholm School<abstract><title style='display:none'>Abstract</title><p>We revisit the Stockholm School of Economics with first principles. The objective is a rendition of a cumulative Myrdal-Wicksell process. To that end, we derive heterogeneous responses of consumers and producers to changes in the state of the world and define a Myrdal-Keynes equilibrium.</p></abstract>ARTICLEtrue Critical Review of the Main Approaches on Financial Market Dynamics Modelling<abstract><title style='display:none'>Abstract</title><p>While the interpretation of the EMH has changed over the last 50 years, its meaningfulness continues to define our view on how financial markets work. Competing approaches such as BFT and ACT have been proven to be in particular cases of an infinite spectrum of market states; all come under the framework of the AMH. The flexible framework of the AMH enables a trans-disciplinary approach for the study of financial system dynamics. An evolutionary and contextual view on financial systems allows researchers to use techniques and instruments from quantum mechanics and statistical physics to quantify volatility and provide an interpretation to the cognitive processes underlying investor decision making. Such a context also enables to tackle the interpretation of information processing at a cognitive level through consideration of quantum effects in the price formation mechanism.</p></abstract>ARTICLEtrue Lending and Poverty in Developing Countries<abstract><title style='display:none'>Abstract</title><p>An arduous debate has developed around the question of whether the multiple IMF’s ‘stabilization’ interventions in developing countries have actually met one of the most important of its initial programmatic goals, i.e., the provision of resources to members, with a view to eliminating temporary Balance of Payments maladjustments, avoiding at the same time destroying ‘national or international prosperity’. More importantly, there have been many voices claiming that these programs have rather accentuated poverty than alleviated it. We explore this claim both theoretically and empirically. Our results show an unequivocal negative relationship between IMF lending and poverty in the developing world.</p></abstract>ARTICLEtrue of Understanding Government’s Public Institutions Behavior Necessary to Design Reforms<abstract><title style='display:none'>Abstract</title><p> This paper presents some aspects found by the author in his research in field of government public institutions behavior. The author started some years ago to research the modality how should prepare a conceptual transfer of management from the companies practice to government public institutions and to implement them for enhance quality of their results. The main concept of the theoretical research is based on some well-known theoretical remarks. One of this shows that the public institutions are similar entities as companies. Eventually they have higher complexity. Following this logic, the public institutions should be led by management instead public administration. Considering public management and the new public management only some attempts without solving the main problems, the author consider that implementing procedural efficiency oriented management to the government public institution is equivalent with an important changes induced by outside.</p><p>Preparing the conceptual transfer, for the first period of research was necessary to understand government’s public institution behavior. For this purpose the relational frame was the business organization. In this respect the research compares organizational behavior of companies and public institutions and their reaction to important changes. For understand similarities and differences it was necessary to discover theoretical standpoints regarding companies reaction to important changes induced by outside and main determinants from the organizational sciences literature. In the similar way was studied the public institution reaction and determinants of this to important changes, theoretically through documentary analyses of the literature of public administration.</p><p>The benchmarking between the reactions of the mentioned two entities discovered different behaviors and the main determinants of the reactions of them to a new form of leading system by management, including modern instruments as knowledge management.</p><p>The paper conclusions sustain that implementation of modern management systems to government’s public institutions should deal with a different behavior used to know at companies. In this respect, the paper highlights different aspects between companies and public institutions behavior admitting similarities on organizational structure and internal procedures. </p></abstract>ARTICLEtrue of the Cultural Policies as a Sustainable Development Engine: Example of a Good Policy / City of Pancevo<abstract><title style='display:none'>Abstract</title><p> Reforming cultural policy in Serbia comes into a focus after year 2000. With delegating jurisdiction on the local cultural systems, because one of the ideas is that local government and experts can recognize needs, potential and capacities for local development more clearly and comprehensively. This work deals with the challenges of cultural policy as initiators of sustainable development, where the City of Pancevo has been selected as an example of a good practice. The first part of the text deals with challenges of cultural policy on national level. When it comes to cultural policy development on the Republic level, one can say that participants in culture in Serbia contribute to improving culture every year. However, for more successful cultural policy it is necessary to approach cultural policy challenges in service of sustainable development. Ranking all challenges leads to a conclusion that it is necessary to solve problems such as financing of the institutions, lack of a strategic thinking and insufficient inter-sector, inter -department and international cooperation. The second part of the text is dedicated to the City of Pancevo, as an example of a good practice in cultural policy and sustainable development domain. During 2013. with the support of the IPA fund cross-border cooperation program, the City of Pancevo accomplished Poles of Culture project. Within that project the Center for Study in Cultural Development conducted a research of cultural needs and habits of citizens of Pancevo, cultural institutions and citizen associations within culture. The third part of the text deals with the research results of cultural needs and habits of Pancevo citizens. They represent guidelines for improving the city cultural policy. The fourth part of the text is dedicated to the cultural policy on the local level and recommendations for cultural policy improvement has been given based on the example of the City of Pancevo.</p></abstract>ARTICLEtrue Needs and Genuine Productivity<abstract><title style='display:none'>Abstract</title><p> The paper deals with a critical debate regarding the common conception on human needs and on their fulfilment through the concern for productivity and growth.</p><p>It starts from the most common way of perceiving (and, implicitly, of developing) the economy, which is reappraised on the grounds of genuine liberalism; several routine approaches in economics and most common concerns in the economy are put under question.</p><p>The debate brings conclusions related to a widened area of issues concerning the assessment of economic activities and core educational recommendations, implying interventionism focused on developing responsibility on the very long term.</p></abstract>ARTICLEtrue New Economic Governance Model for Greece in the 21 Century<abstract><title style='display:none'>Abstract</title><p> The mission and mandate of economic governance in Greece and its accompanying institutional architecture requires a re-alignment in order to conform to the realities of the new global economy of the 21st century. Two recent events, one foundational and the other cataclysmic, have precipitated the need for a new vision and a new conceptual framework for revitalizing and modernizing Greece’s economic governance architecture. These two defining milestones are the emergence of a new global economy and the devastating consequences of the 2008 global financial crisis on the Greek economy.</p><p>This paper proposes a new conceptual framework for reforming the public administration in Greece that is congruent with the structural changes precipitated by the new global economy of the 21st century. The Great Recession and the contemporary jobless recovery provide the contextual narrative for redefining macroeconomic policy with regard to achieving good economic governance.</p><p>A new set of ten interactive and complementary principles for good governance in the 21st century are proposed. These governance principles should be accompanied with a modern institutional governance architecture. Furthermore, the structural qualities and resilient infrastructure of a revitalized governance model must be able to withstand the future economic shocks and interface effectively with the new global economy of the 21st century.</p><p>In essence, this paper sets a new economic governance agenda and designs the supporting governance infrastructure that has the administrative capability and the capacity to meet the challenges and take advantage of the opportunities confronting Greece in the 21st century. All of this, for the purpose of designing a governance infrastructure that interacts more effectively with global institutions; national, regional and local governments; economic, social and political networks; community and grassroots organizations and civil society.</p></abstract>ARTICLEtrue