Article
Ecology
Pierre Jacques, Louis Delannoy, Baptiste Andrieu, Devrim Yilmaz, Herve Jeanmart, Antoine Godin
Summary: The biophysical foundations of socio-economic systems are often overlooked in macroeconomic models, which can create problems when considering the energy transition. To address this, we introduce a biophysical stock-flow consistent macroeconomic model that incorporates detailed estimates for the capital intensity of renewable energy sources and the declining energy return on investment (EROI) of fossil fuels. Our findings indicate that achieving a global energy transition in line with the Paris Agreement's 1.5 degrees C objective would result in a decrease in the system's EROI and have significant impacts on investment, employment, and inflation, resembling a war economy. Slower growth rates would facilitate a smoother transition, highlighting the need for further research on post-growth scenarios.
ECOLOGICAL ECONOMICS
(2023)
Article
Economics
Ozgur Orhangazi, Gary Dymski
Summary: This article summarizes the intellectual journey of James R. Crotty. It discusses how Crotty's approach to macroeconomics, based on Marxist and Keynesian insights, led to the development of flexible models that help us understand the contradictory evolution of capitalism from the 1970s to the 2010s. The key elements of Crottyian macroeconomics include a focus on macro foundations, attention to the concrete processes of capitalism with their endogenous, dynamic, and conflict-ridden nature, and the importance of money, credit, and competitive dynamics in the capitalist system. The article also explores Crotty's final work on liberal socialism as a way to end the disruptive cycles of capitalism, arguing that his intellectual legacy provides inspiration for those seeking to understand, transform, and transcend contemporary capitalist societies.
REVIEW OF RADICAL POLITICAL ECONOMICS
(2023)
Article
Business
Nana Xu, Zhifang He, Fangzhao Zhou, Wenjie Ding, Jiaqi Chen
Summary: Geopolitical uncertainty has a significant impact on stock prices in the stock market, with a greater influence on stock price crash risk than economic policy uncertainty. Firms with synchronized stock prices, low analyst coverage ratio, low institutional holdings, and large investor heterogeneity are more vulnerable to geopolitical shocks, leading to future stock price crashes. This study highlights the importance of promoting efficient information transmission systems and improving corporate governance.
EMERGING MARKETS FINANCE AND TRADE
(2023)
Review
Environmental Sciences
Muhammad Farhan Bashir
Summary: The current research paper provides a research overview and suggests further research directions by identifying the current dynamics in the oil price-stock market nexus. Using bibliometrix R package, 684 studies were examined to identify research trends in oil price shocks, stock market returns, and volatility spillover effects. The study recognizes the most influential authors, publications, and research institutions and their significance within the current scientific literature, and suggests disaggregated sectoral analysis and meta-analysis approach with moderator analysis for future research contribution.
ENVIRONMENTAL SCIENCE AND POLLUTION RESEARCH
(2022)
Article
Economics
Philipp Meinen, Ana Cristina Soares
Summary: This paper uses firm-level data to analyze the impact of financial frictions on markup adjustments. Findings suggest that firms more exposed to liquidity risks tend to raise markups in response to negative bank-loan supply shocks, while less exposed firms generally reduce them. These results are consistent with models featuring a sticky customer base.
Article
Economics
Zhao-Yong Sun, Wei-Chiao Huang
Summary: This paper examines the impact of unexpected oil price shocks on Chinese stock markets. The study estimates the magnitude of unexpected oil price shocks to capture the uncertainty characteristics of oil price volatility. An autoregressive distributed lag model is used to investigate the relationship between unexpected oil price shocks and Chinese stock markets. Additionally, the study decomposes oil price shocks into positive and negative shocks and applies a nonlinear autoregressive distributed lag model to analyze whether the shocks have a symmetric or asymmetric effect on Chinese stock markets. Empirical results demonstrate that unexpected oil price shocks have different effects on the Shanghai and Shenzhen stock markets, with significant impact on the latter but insignificant impact on the former.
ECONOMIC CHANGE AND RESTRUCTURING
(2023)
Article
Business, Finance
Fenghua Wen, Minzhi Zhang, Jihong Xiao, Wei Yue
Summary: This article contributes to the literature on the oil-stock nexus by examining the impact of supply, demand, and risk shocks of oil prices on the risk-return relation in the Chinese stock market. The study finds that oil demand shock and oil risk shock have significant effects on the stock risk-return relation, while oil supply shock does not have a Granger-causal relationship. These effects are particularly prominent in the post-financialization period of the oil market.
FINANCE RESEARCH LETTERS
(2022)
Article
Business, Finance
Hisham Al Refai, Rami Zeitun, Mohamed Abdel-Aziz Eissa
Summary: This study examines the impact of global COVID-19 cases and oil price shocks on the stock markets in the GCC. The findings show that, except for Oman, the GCC markets responded to both positive and negative oil price shocks before and during the pandemic, with greater magnitude since March 11, 2020. Additionally, the spread of global COVID-19 cases had no significant impact on the GCC stock markets.
FINANCE RESEARCH LETTERS
(2022)
Article
Economics
Miklos Vary
Summary: This paper examines the long-term effects of monetary policy on real economic activity using a hybrid menu cost model. The model suggests that monetary shocks have significant long-term real effects on real output, but the effectiveness decreases as the size of the shock increases. The key mechanisms generating long-term real effects are demand-supply interactions.
ECONOMIC MODELLING
(2021)
Article
Business, Finance
Idris A. Adediran, Abdulfatai Salawudeen, Syed Nasir Ashraf Sabzwari
Summary: This paper analyzes the transmission of COVID-19 pandemic-induced shocks to global Islamic stock markets, finding immediate negative impacts with the USA and China being the most affected, and Middle East markets the least affected. The impacts of the pandemic are expected to take approximately 20 months to completely wither. Diversification benefits towards UAE, Oman, Bahrain, and other Middle East markets are highlighted, along with the need for counter-cyclical measures to mitigate the prolonged negative impacts of the pandemic.
INTERNATIONAL JOURNAL OF ISLAMIC AND MIDDLE EASTERN FINANCE AND MANAGEMENT
(2022)
Article
Economics
Mengyi Yuan, Lin Zhang, Yonghui Lian
Summary: This study examines the impact of economic policy uncertainty on the stock price crash risk of commercial banks in China. The findings reveal that economic policy uncertainty significantly increases the risk of stock price crash for these banks. Furthermore, the level of financial risk and information transparency also play a role in moderating this relationship.
ECONOMIC ANALYSIS AND POLICY
(2022)
Article
Business, Finance
Xu Zhang, Zhijing Ding, Jianqin Hang, Qizhi He
Summary: This study assesses the ability of stock price indices to absorb shocks during the COVID-19 crisis and reveals the variations in stock market resilience. The results show that the absorptive capacity differs among countries and industries, with the US and Brazil stock indices displaying high absorptive intensity but short duration. The healthcare industry exhibits a distinctive trend in absorptive intensity compared to other industries.
NORTH AMERICAN JOURNAL OF ECONOMICS AND FINANCE
(2022)
Article
Economics
Yoichi Tsuchiya
Summary: The study reveals that stock price forecasters tend to exhibit anti-herding behavior, and an increase in forecast uncertainty plays a role in both herding and anti-herding. Additionally, unprecedented shocks such as financial crises and newly introduced policies may increase incentives for forecast differentiation, while certain market shocks may intensify herding behavior.
EMPIRICAL ECONOMICS
(2021)
Article
Economics
Franz Prante, Eckhard Hein, Alessandro Bramucci
Summary: The authors present a stylized Post-Keynesian two-country stock-flow consistent model to illustrate the interconnectedness of worsening income distribution, rising international imbalances, and financial fragility in finance-dominated capitalism. The model reveals two basic regimes and demonstrates their complementarity and interdependence. It also shows how these regimes transform after a crisis, depending on factors such as deleveraging of private household debt, distributional developments, and fiscal policy.
REVIEW OF KEYNESIAN ECONOMICS
(2022)
Article
Environmental Studies
Abdorasoul Sadeghi, Soheil Roudari
Summary: This paper examines the impact of oil structure, oil shocks, and regime changes on stock price responses. The results show that the structure and source of oil shocks have a significant effect on stock price responses, and there are differences and similarities between different types of economies. Additionally, stock market responses to oil shocks are regime-dependent, with more pronounced responses in bear markets.
Article
Multidisciplinary Sciences
Oliver Richters, Tiago P. Peixoto
Article
Economics
Oliver Richters
Summary: The analogy between economics and classical mechanics is extended to constrained dynamics by formalizing economic forces and power. The model combines Keynesian concepts with bounded rationality and interacting agents from behavioral economics and agent-based models. It integrates elements from different schools of thought and can converge to a neoclassical equilibrium or react to shocks in a neoclassical or post-Keynesian way.
JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION
(2021)
Article
Economics
Oliver Richters, Erhard Gloetzl
JOURNAL OF POST KEYNESIAN ECONOMICS
(2020)
Article
Economics
Oliver Richters, Andreas Siemoneit
STRUCTURAL CHANGE AND ECONOMIC DYNAMICS
(2019)
Article
Economics
Erhard Gloetzl, Florentin Gloetzl, Oliver Richters
JOURNAL OF ECONOMIC INTERACTION AND COORDINATION
(2019)
Article
Ecology
Oliver Richters, Andreas Siemoneit
ECOLOGICAL ECONOMICS
(2017)