The “Schumpeterian” and the “Keynesian” Stiglitz: Learning, Coordination Hurdles and Growth Trajectories

This work, which shall contribute to the Fest “A Just Society: Honouring Joseph Stiglitz”, discusses a major unifying theme in Joe Stiglitz monumental work, namely, the analysis of economies characterised by persistent learning and coordination hurdles. In his analysis Joe is in many respects a “closet evolutionist”who in fact highlighted and explored many evolutionary properties of contemporary economies in a Schumpeterian spirit. And he went further introducing genuinely Keynesian properties e.g. coordination failures and the possibility of path-dependent multiplicity of growth trajectories which are far and beyond Schumpeterian concerns. In this short essay, we shall illustrate this point with reference to some of Stiglitz works, out of many, linking them with significantly overlapping contributions from the evolutionary camp. We group them by two major themes, namely, the consequences of learning and dynamic increasing returns, and “Keynesian” coordination failures with the ensuing possibility of multiple growth paths, fluctuations, small and big crise

In Order to Stand up You Must Keep Cycling: Change and Coordination in Complex Evolving Economies

In this work we discuss the main building blocks, achievements and challenges of an evolutionary interpretation of the relation between mechanisms of coordination and drivers of change in modern economies, seen as complex evolving systems. It is an evident stylised fact of modern economic systems that there are forces at work which keep them together and make them grow despite rapid and profound modifications of their industrial structures, social relations, techniques of production, patterns of consumption. We suggest that a fruitful interpretation of the two processes rests in what we call the "bicycle conjecture": in order to stand up you must keep cycling. However, changes and transformation are by nature "disequilibrating" forces. Thus there must be other factors which maintain relatively ordered configurations of the system and allow a broad consistency between the conditions of material reproduction (including income distributions, accumulation, available techniques) and the thread of social relations

The wage-productivity nexus in the world factory economy

This paper highlights new findings on the wage-productivity nexus in the World Factory Economy. After presenting the long-run macro-elasticity characterizing the phase of Chinese economic development since the eighties, we look at the wage-productivity nexus from a micro level perspective using a detailed firm-level dataset covering the period of ownership restructuring (1998-2007). A few results are quite robust under different estimation strategies. First, throughout the impressive Chinese economic miracle, elasticities of real wages to productivities – that is the ratios of rates of variations of the former to the latter – are always positive both under pooled and longitudinal estimates, both at firm- and sectoral-levels. Second, such elasticities are dramatically low, and falling in many distinct phases since the late seventies. That is, even in the manufacturing sector, the distribution of gains from the impressive labour productivity growth appears to be markedly uneven. Finally, third, governance institutions seem to matter a lot, with the majority of ownership types exhibiting firm-specific wage determination processes. The low elasticities of wages to productivity are plausibly the consequence of the massive flow of migrant workers from the rural areas to the coasts, somewhat resembling the early phase of the English Industrial Revolution with the pattern of enclosure in the country-side and massive migrations to the industrial towns

Pengaruh Harga, Produk, Lokasi, Dan Promosi Terhadap Keputusan Pembelian Pada Kedai Kopi Borneo Di Kota Samarinda

This study aims to determine the effect of price, product, location, and promotion on purchasing decisions at Borneo Coffee Shops in Samarinda City. Both simultaneously and partially. The sample in this study was 96 respondents both simultaneously and partially. Sampling is carried out using a nonprobability sampling technique with the sampling technique used is snowball sampling. The results showed that partially the price has a significant affects on the purchase decision at the Borneo Coffee Shop with a significant level of 0.002. The product variable partially showed an insignificant influence on purchasing decisions at the Borneo Coffee Shop with a significant degree of 0.810. The location variable partially showed an insignificant influence on the purchasing decision of the Borneo Coffee Shop with a significant degree of 0.367. The promotion variable partially has a significant effect on the purchase decision at the Borneo Coffee Shop with a significant level of 0.000. Simultaneously the influence of price, product, location, and promotion has a significant influence on purchasing decisions at Borneo Coffee Shops. The magnitude of the influence of price, product, location, and promotion on the purchasing decision of the Borneo Coffee Shop is shown by the coefficient of determination of 0.669 or 66.9% where the ability of free variables in this study, namely price, product, location and promotion together in explaining the purchase decision of products at the Borneo Coffee Shop as a dependent variable is 0.669 or 66.9%, and the remaining 33.1% can be explained by other variables outside of regression model of this studyPenelitian ini bertujuan untuk mengetahui pengaruh harga, produk, lokasi, dan promosi terhadap keputusan pembelian pada Kedai Kopi Borneo Di Kota Samarinda. baik secara simultan maupun parsial. Adapun sampel dalam penelitian ini sebanyak 96 responden baik secara simultan maupun parsial. Pengambilan sampel dilakukan dengan teknik nonprobability sampling dengan teknik sampling yang digunakan adalah snowball sampling. Hasil penelitian menunjukkan bahwa secara parsial harga berpengaruh signifikan terhadap keputusan pembelian pada Kedai Kopi Borneo dengan taraf signifikan sebesar  0,002. Variabel produk secara parsial menunjukkan pengaruh tidak signifikan terhadap keputusan pembelian pada Kedai Kopi Borneo dengan taraf signifikan sebesar 0,810. Variabel lokasi secara parsial menunjukkan pengaruh tidak signifikan terhadap keputusan pembelian  Pada Kedai Kopi Borneo dengan taraf signifikan sebesar 0,367. Variabel promosi secara parsial berpengaruh signifikan terhadap keputusan pembelian pada Kedai Kopi Borneo dengan taraf signifikan sebesar 0,000. Secara simultan pengaruh harga, produk, lokasi, dan promosi memiliki pengaruh yang signifikan terhadap keputusan pembelian pada Kedai Kopi Borneo. Besar pengaruh harga, produk, lokasi, dan promosi terhadap keputusan pembelian pada Kedai Kopi Borneo ditunjukkan dengan koefisien determinasi sebesar 0,669 atau 66,9% dimana kemampuan variabel-variabel bebas pada penelitian ini yaitu harga, produk, lokasi dan promosi secara bersama-sama dalam menjelaskan keputusan pembelian pada Kedai Kopi Borneo Samarinda sebagai variabel dependen adalah sebesar 0,669 atau 66,9%, dan sisanya 33,1% dapat dijelaskan oleh variabel lain diluar dari model regresi penelitian ini

Hierarchies, Knowledge, and Power Inside Organizations

This paper contributes to an old and still unresolved question in the theory of organizations, namely, what do bosses do? Whether and to what extent managerial functions are productive or not for the well functioning of an organization has to be understood with respect to the tension between knowledge and power. Here, we start addressing such a tension with reference to the very nature of organizations. Next, we discuss its historical unfolding in two archetypical organizational modes of production, Taylorism and Toyotism. Third, these two archetypical configurations are studied by means of a model of organizations populated by three sets of agents, workers, managers, and the principal, endowed by different attributes and functions. The fitness of alternative organizational setups is studied under diverse degrees of complexity of the landscape

The Effects of Labour Market Reforms upon Unemployment and Income Inequalities: an Agent Based Model

This work analyses the effects of labour market structural reforms by means of the labour-augmented ‘Schumpeter meeting Keynes’ (K+S) Agent-Based model. We introduce a policy regime change characterized by a set of structural reforms on the labour market. Confirming a recent IMF report, the model shows how structural reforms reducing workers’ bargaining power and compressing wages tend to increase (a) unemployment, (b) functional income inequality and (c) personal income inequality. We further undertake a global sensitivity analysis on key variables and parameters which corroborates the robustness of our findings

A multiscale network-based model of contagion dynamics: Heterogeneity, spatial distancing and vaccination

Lockdown and vaccination policies have been the major concern in the last year in order to contain the SARS-CoV-2 infection during the COVID-19 pandemic. In this paper, we present a model able to evaluate alternative lockdown policies and vaccination strategies. Our approach integrates and refines the multiscale model proposed by Bellomo et al., 2020, analyzing alternative network structures and bridging two perspectives to study complexity of living systems. Inside different matrices of contacts we explore the impact of closures of distinct nodes upon the overall contagion dynamics. Social distancing is shown to be more effective when targeting the reduction of contacts among and inside the most vulnerable nodes, namely hospitals/nursing homes. Moreover, our results suggest that school closures alone would not significantly affect the infection dynamics and the number of deaths in the population. Finally, we investigate a scenario with immunization in order to understand the effectiveness of targeted vaccination policies towards the most vulnerable individuals. Our model agrees with the current proposed vaccination strategy prioritizing the most vulnerable segment of the population to reduce severe cases and deaths.Fil: Aguiar, Maíra. Università Di Trento; Italia. Basque Center For Applied Mathematics (bcam); España. Ikerbasque, Basque Foundation For Science; EspañaFil: Dosi, Giovanni. Sant'anna Scuola Universitaria Superiore Pisa; ItaliaFil: Knopoff, Damián Alejandro. Universidad Nacional de Córdoba; Argentina. Basque Center For Applied Mathematics; España. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Córdoba. Centro de Investigación y Estudios de Matemática. Universidad Nacional de Córdoba. Centro de Investigación y Estudios de Matemática; ArgentinaFil: Virgillito, Maria Enrica. Sant'anna Scuola Universitaria Superiore Pisa; Itali

From particles to firms: On the kinetic theory of climbing up evolutionary landscapes

This paper constitutes the first attempt to bridge the evolutionary theory in economics and the theory of active particles in mathematics. It seeks to present a kinetic model for an evolutionary formalization of economic dynamics. The new derived mathematical representation intends to formalize the processes of learning and selection as the two fundamental drivers of evolutionary environments [G. Dosi, M.-C. Pereira and M.-E. Virgillito, The footprint of evolutionary processes of learning and selection upon the statistical properties of industrial dynamics, Ind. Corp. Change, 26 (2017) 187-210]. To coherently represent the aforementioned properties, the kinetic theory of active particles [N. Bellomo, A. Bellouquid, L. Gibelli and N. Outada, A Quest Towards a Mathematical Theory of Living Systems (Birkhäuser-Springer, 2017)] is here further developed, including the complex interaction of two hierarchical functional subsystems. Modeling and simulations enlighten the predictive ability of the approach. Finally, we outline the potential avenues for future research.Fil: Bellomo, Nicola. Universidad de Granada; España. Politecnico di Torino; ItaliaFil: Dosi, Giovanni. Sant'anna Scuola Universitaria Superiore Pisa; ItaliaFil: Knopoff, Damián Alejandro. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - Córdoba. Centro de Investigación y Estudios de Matemática. Universidad Nacional de Córdoba. Centro de Investigación y Estudios de Matemática; Argentina. Universidad Nacional de Córdoba. Facultad de Matemática, Astronomía y Física; ArgentinaFil: Virgillito, Maria Enrica. Sant'anna Scuola Universitaria Superiore Pisa; Itali

Network effects in a human capital based economic growth model

We revisit a recently introduced agent model[ACS {\bf 11}, 99 (2008)], where economic growth is a consequence of education (human capital formation) and innovation, and investigate the influence of the agents' social network, both on an agent's decision to pursue education and on the output of new ideas. Regular and random networks are considered. The results are compared with the predictions of a mean field (representative agent) model.Comment: to appear in Physica