Heterodox United vs. Mainstream City? Sketching a Framework for Interested Pluralism in Economics

Dobusch, Leonhard; Kapeller, Jakob

doi:10.2753/jei0021-3624460410

Cited by 92 publications

(51 citation statements)

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“…From a paradigmatic perspective we exploit the potential complementarity between the Institutionalist/Evolutionary concept of conspicuous consumption (Veblen, 1970 [1899]) and the (Post‐)Keynesian concept of effective demand. In demonstrating our case of a consumption‐driven profit‐led regime we thereby also contribute to a Pluralist Paradigm in the spirit of Dobusch and Kapeller () that seeks to create new insights through the exploitation of complementary concepts as they are found in different schools of thought (see on this also Kapeller and Schütz, )…”

Section: Introductionmentioning

confidence: 87%

Conspicuous Consumption, Inequality and Debt: The Nature of Consumption‐driven Profit‐led Regimes

Kapeller

Schütz

2014

Metroeconomica

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Section: Introductionmentioning

confidence: 87%

Conspicuous Consumption, Inequality and Debt: The Nature of Consumption‐driven Profit‐led Regimes

Kapeller

Schütz

2014

Metroeconomica

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“…In doing so we draw on the path-breaking contributions on stock flow consistent modeling by Lavoie and Godley (2002) and Godley and Lavoie (2007). By bringing together concepts from different origins -the Institutionary/Evolutionary concept of relative consumption concerns (Veblen) and Keynesian ideas on the nature of financial markets (Minsky) -it contributes to a Pluralist Paradigm in the spirit of Dobusch and Kapeller (2012) that seeks to create new insights through the exploitation of complementary concepts as they are found in different schools of thought. 1 1 Other approaches that try to incorporate the Veblenian idea of conspicuous consumption in Post Keynesian models are e.g.…”

Section: Economy (As Well As Many European Economies) Finds Itself Inmentioning

confidence: 99%

Debt, boom, bust: a theory of Minsky-Veblen cycles

Kapeller¹,

Schütz²

2014

Journal of Post Keynesian Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThis paper reflects on the development leading to the recent crisis and interprets this development as a series of events within a Minsky-Veblen Cycle. To illustrate this claim we introduce conspicuous consumption concerns, as described by Veblen, into a stock flow consistent Post Keynesian model and demonstrate that, under these conditions, a decrease in income equality leads to a corresponding increase in debt-financed consumption demand.Here Minskyian dynamics come into play: increased credit demand leads to a corresponding rise in credit supply, which, eventually, gives rise to a debt-financed consumption boom.As the solvency of households decreases and interest rates move up, banks reduce lending, triggering household bankruptcies and, finally, a recession. What follows is a stable period of consolidation, where past debts are repaid, financial stability is regained and conspicuous consumption motives may gradually take over again. We illustrate this approach to the current crisis and its explanatory validity by extending our stock-flow consistent model into a dynamic simulation.JEL classification numbers: B52, D11, E12, E20, G01

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“…The differences between neoclassical and heterodox economics are more fully explained by Dobusch & Kapeller (2012, Fig. 1) and as key proponents of heterodox economics, Lee et al (2013) discuss how UK neoclassical economists are intolerant of any other paradigm.…”

Section: Neoclassical Approach and Lack Of Pluralismmentioning

confidence: 99%

Gekko and black swans: Finance theory in UK undergraduate curricula

Lakshmi

2018

Critical Perspectives on Accounting

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A B S T R A C TDespite the current financial crisis, accounting and finance programmes in UK have remained popular. Finance undergraduate teaching in accounting degrees is a significant component of the degree and relies heavily on Modern Finance Theory (MFT). Some of the developments in the finance curricula are critically examined. It is argued that current finance education should become more reflective and more heterodox in approach as the current curricula is biased towards techniques based on neoclassical theory. Suggestions are given for improvement of the curricula which will allow the narrow assumptions of neoclassical theory to be widened. These involve students taking into account not only the structures and patterns of finance but also the processes which are created by human experiences as part of their interactions as well as what helps to make these processes sustainable.

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Heterodox United vs. Mainstream City? Sketching a Framework for Interested Pluralism in Economics

Cited by 92 publications

References 50 publications

Conspicuous Consumption, Inequality and Debt: The Nature of Consumption‐driven Profit‐led Regimes

Conspicuous Consumption, Inequality and Debt: The Nature of Consumption‐driven Profit‐led Regimes

Debt, boom, bust: a theory of Minsky-Veblen cycles

Gekko and black swans: Finance theory in UK undergraduate curricula

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