REVISTA DE ECONOMÍA INSTITUCIONAL No. 36,
FIRST SEMESTER DE 2017
A CcP model of the stock market
Shimshon Bichler y Jonathan Nitzan [pdf]
[Key words: Stock market, market capitalization, stock price, systemic fear, strategic sabotage; jel: B16, CO2, D52, G1]
Most explanations of stock market booms and busts are based on contrasting the underlying ‘fundamental’ logic of the economy with the exogenous, non-economic factors that presumably distort it. Our paper offers a radically different model, examining the stock market not from the mechanical viewpoint of a distorted economy, but from the dialectical perspective of capitalized power. The model demonstrates that (1) the valuation of equities represents capitalized power; (2) capitalized power is dialectically intertwined with systemic fear; and (3) systemic fear and capitalized power are mediated through strategic sabotage. This triangular model, we posit, can offer a basis for examining the asymptotes, or limits, of capitalized power and the ways in which these asymptotes relate to the historical and ongoing transformation of the capitalist mode of power.
The economy of knowledge, collapse and depression
Ugo Pagano y Maria Alessandra Rossi[pdf]
[Key words: institutions of the economy, increase, prosperity, patenting, global effects; jel: H41, L20, O34, O12]
This paper reviews a recent strand of research emphasizing how the present institutions of the knowledge economy may be jeopardizing the very promise of growth and prosperity that the increased use of knowledge is generally reported to bring about. The excessive privatization of knowledge generates self-reinforcing vicious and virtuous circles of accumulation of intellectual property and investment in human capital, which increase global inequality. The present institutions of the global economy entail also a reduction of global investment opportunities that is one of the causes of the present global depression. Absent spontaneous antidotes to these phenomena, economic and science policies should aim at redressing the balance between public and private knowledge. Because of the distortion of incentives, stemming from uncompensated knowledge externalities at the international level, these policies should necessarily be coordinated at global level.
Britain and Europe: what ways forward?
[Keywords: Brexit, United Kingdom, democracy, political science, political psychology, political parties; jel: F22, F43, F53, N24]
This paper analyzed some of the reasons why Britain participated only half-way in the European Union and ended up voting for Bremen on 23 June 2016. It also examines the options open to the European Union and Great Britain. Europe must show that it can work by showing results. In Britain it is necessary to break the established molds of thought and reshape the structure of political parties.
Justice with intimidation: the case of the farc
[Key words: justice of the Cadí, farc, transitional justice, conflict, legal pluralism. jel: K10, K14, K38, K24]
This essay sets out the rules of the farc and their administration of justice, as presented in the texts published under the titles of “statute”, “regulations”, “norms”, “programs”, “platforms” and ‘coexistence”. A large number of interviews with demobilized men and women of different ages were added to these materials to capture their vision of judicial processes, which characterizes intimidation: the use of threat and ultimatum, which provoke fear, anxiety and uneasiness.
On the structural tax reform that is needed in Colombia. Reflections and proposals
Jorge Espitia, César Ferrari, Gonzalo Hernández, Isidro Hernández, Jorge Iván González, Luis Carlos Reyes, Jairo Orlando Villabona y Gustavo Zafra [pdf]
[Key words: Probability, uncertainty, Keynes, decision, judgment; JEL: B16, B22, B31, C02, D81]
Radical uncertainty has been defined as non-probabilistic; however this definition is insufficient as there is no unique notion of probability. The article makes a historical presentation of equiprobabilistic, frequentist and Bayesian definitions of probability and proposes a notion of uncertainty resulting from these definitions. Keynes theory of animal spirits is presented as an explanation of human action in an uncertain social world.
Taxation in the Sovereign State of Tolima, 1863 - 1885
Joaquín Pinto y Salomón Kalmanovitz [pdf]
[Keywords: fiscal policy, collection, taxes, composition of expenditure, sovereign state, political organization. jel: H20, H23, H30, H50]
The Sovereign State of Tolima was one of the poorest and most conflictive of Federalist Colombia 1863-1886). Its main sources of wealth were the exports of tobacco and indigo which had short periods of prosperity, complimented by the Antioqueño colonization that introduced a growth dynamic to the north of the State. Its geographical diversity and of its regional elites created frequent armed conflicts, compounded by the contagion of Colombian civil wars, since its territory was right in the middle of the country and besides the main river that communicated most of it. All these factors weighed heavily and made it difficult for state building at the regional level; in spite of them, as we will show, Tolima achieved some advances in its political organization, in its finances and, above all, in the coverage of its public educational system.
The Bogota tramway, 1882 – 1951
Juan Santiago Correa, Santiago Jimeno y Marianela Villamizar [pdf]
[Key words: Growth, Fluctuations, Latin America, Caribbean, structure, performance; jel: N10, N16, N76, H11]
This article analyzes the evolution of the tramway system in Bogotá and the business development that came along during the period 1882-1951, to understand the relationship of the élite with this project and the impact of the new transport technologies on the city design, the social and economic dynamics, and its effect on the popular sectors.
Investment in Renewable Energies in Argentina
Marina Recalde [pdf]
[Keywords: Viceroyalty of New Granada, Republic of Colombia, fiscal policies, economic history, War of Independence;
JEL: N46, H56, H30, N66]
The article presents an analysis of the spatial and temporal distribution of the war of independence in New Granada between 1811 and 1824. By using fresh data of individual armed encounters in the Viceroyalty, the article presents a first approach between the spatial and temporal dynamics of the war and the development of the tax system. It sets out how the magnitude of the conflict modified forms of funding and how it affected the capacity of the loyal and insurgent provinces to sustain their long-term political position.
Euro crisis in perspective
Francesco Bogliacino y Dario Guarascio[pdf]
[Key Words: optimal currency area, financial crisis, balance of payment, austerity, European integration; jel: B52, F45, F53, O52]
In this article we analyze the process of monetary integration in Europe, identifying the structural determinants and the dysfunctional elements in the institutions of the European Union. Secondly, we explain two prevailing discourses that fail in interpreting the events: on the one hand, a purely ideological position that see integration as a process of convergence that should not be interfered with; on the other hand, a purely idealist perspective, according to which the ideal of integration will prevail over any contradiction engendered by the institutional system. The combination of these two perspectives helped justify post crisis interventions (fiscal consolidation) and the institutional design that followed, which eventually aggravated the macroeconomic instability in the area.
Games in the classroom: the market of lemons
Luis Alejandro Palacio García, Isabel Saravia Martínez y María Alejandra Vesga Cediel [pdf]
[Keywords: economic teaching, classroom games, asymmetrical information, bargaining, experimental economics; jel: B41, C90, D03]
Classroom games are a pedagogical tool for the appropriation of concepts and enrich traditional microeconomic classes with the methodology of experimental economics. This article presents an example of participatory research that seeks to collaboratively change the learning process. We propose the lemons-market game: an experimental protocol, programed for laboratory sessions, that motivates students to debate about adverse selection due to information asymmetries, that is, about the extent to which good-quality goods are expelled from the market by inferior-quality goods (lemons.)
Cognition and behavior in the fallacy of base rates
Claudia Milena Pico Bonilla, Edwin Oswaldo Gil Mateus y Álvaro Arturo Clavijo Álvarez. [pdf]
[Keywords: Experimental analysis of behavior, heuristics, base-rate neglect. jel: D01, D030, Y08]
Behavioral economics has applied psychology concepts related to cognitive analysis, which gives little importance to environmental effects. In contrast, the analysis of behavior gives a central role to the environment, and therefore employs concepts such as reinforcement schedules and stimuli control. In this document presents the cognitive-behavioral discussion about choice behavior. In addition, we compare their methods through two experiments dealing with the base-rate fallacy. In the experiments, the characteristics of the stimuli (verbal and non-verbal) are varied and contrasted. The paper concludes that this fallacy occurs on a smaller scale when there are less irrelevant stimuli.