In this chapter, Frederick Lee argues that modeling is a research method that contributes to the development of heterodox economic theory. Moreover, he argues that mathematical modeling is consistent with critical realism and the method of grounded theory when the structures and causal mechanisms in the real world are constitutes the world in the model. As a result working the world in the model helps develop the critical realist_grounded theory (CR-GT) narrative of how the real world works.
Where economics is dominated by a monolithic methodology of axiomatic theorizing and econometric analysis of secondary datasets, multiple and mixed methods research offers a much and richer toolkit to examine economic problems from a variety of perspectives with custom methods suited for the particular task. Rather than limiting analysis to the application of approved methods to an approved dataset, with little consideration of its content, a multiple or mixed method approach inherently interrogates choices and limitations of data and methods from the outset. This chapter aims to equip readers with a grounding in the principles of multiple and mixed methods research and to consider benefits and limitations of triangulation of methods, issues in research design, choices of methods and their integration, and issues of validity and ethics.
This chapter presents a case study examining the patterns and determinants of firm-level investment in the Turkish economy after the opening of capital account in 1989. It does so by ‘mixing’ quantitative firm-level data with qualitative insights from fieldwork. Semi-structured interviews with firm mangers are used to explore the determinants of investment and generate a framework of investment in the context of a highly volatile macroeconomic environment. Then quantitative data and econometric methods are used to assess whether the framework emerging from the qualitative part is valid. Qualitative results pose a challenge to various assumptions of neoclassical investment models and give support to post-Keynesian insights about managerial decision-making and investment behavior. Quantitative data and analysis confirm these qualitative findings, and lead us to others than can be better understood by insights from fieldwork. For instance we see that internal funds are an important determinant of investment; yet a priori categories, such as size or age, are not useful predictors of financing constraints for investment.
Gyun Cheol Gu
Based on the grounded theory methodology covered in Chapter 2, this chapter proposes a comprehensive and coherent theoretical system to provide an analytical framework for price stability. In order to establish an empirically grounded pricing procedure, it analyzes a body of empirical studies which investigate the advances in accounting and managerial techniques, thereby examining the causal mechanisms for price setting. By doing so, it sheds light on the mechanisms through which price stability is secured. In particular, it refines and extends a heterodox theory of price stability by differentiating between intrinsic and extrinsic stability, identifying their roles and implications for stable prices, and incorporating labor hoarding and labor discipline effects to the theorization of the extrinsic price stability.
Studying low-income households poses a number of methodological issues. Nevertheless, there are a number of measures which a researcher can take to access ‘hard to reach’ low-income households using reliable and valid data collection instruments. Drawing on a study which investigated the impacts of rising energy prices on low-income Australian households, this chapter discusses the suitability of a mixed methods approach to study low-income households along with the strengths and weaknesses of the chosen data collection methods of an online survey, focus groups and interviews. Observations are made about the use of intermediaries to recruit low-income households, the potential barriers to participation, the impact on the conduct of research by ethics committee requirements, the use of participation rewards, and the need for a research design which takes all these issues and more into account.
There has been a significant marketization of human services in many nations over the last 30 years, driven by government acceptance of orthodox economic theory. However, there is substantial inherent market failure in these types of ‘products’, which has major implications for the structure and operation of markets. This chapter discusses the methodology used for a case study of the impact of marketization on service providers in one human services industry in one location, namely home care for older people in one Australian state. A major theme of the chapter is how the distinctive features of human services influence methodology. At one level, a number of conceptual questions had to be addressed, including the value of approaches used in conventional industry studies, how to obtain meaningful measures of concepts such as efficiency when applied to human services, and how to identify the motivation of human services providers and the incentives they face. The chapter also outlines the methods and data used, which included quantitative data at an industry and provider level; document analysis; qualitative data based on 45 interviews with providers, funding agencies, and other industry bodies; and participant observation via the researcher as a board member of one provider.
Explanation in critical realism (CR) is based on the conduction of open critical analyses in three domains: empirical, actual and real, or deep. The scientific aim of CR is finding deep internal patterns of behavior for the explanation of phenomena. Critical realism, which later on will be used for grounding data in theory, must be based on an appropriate selection of data for their continuing comparison and approval in terms of topics, perspectives, assumptions, methods, and data. This permanent task is relevant for macro-finance, which is out of paradigm according to the post-Keynesian view since no orthodox explanations are offered about the generation mechanisms, irregularities or interconnections of the inherently and abruptly volatile financial sector. Financial events are volatile since the consequences of men activities are neither eternal nor ubiquitous. Therefore the standard explanation related to efficiency-rationality does not explain the main aspects of reality. In this sense the only regularity in finance is uncertainty, which possesses its own rationality and is hence real and susceptible to be researched in qualitative terms. In addition since money is an emerging property, financial interrelationships are complex. Hence analyses of the financial sector must take account of organicism and the existence of permanent and apparently unexplainable fluxes. Therefore a qualitative interpretation of real and dynamic-compared data, along with data triangulation must be conducted. In particular, the qualitative methods of interviews and documental analysis are to be used in this case study in finance related to the obtaining of qualitative information for explaining both volatility and irrationality in financial instruments and indices. On the other hand, the research by-product of historical investigation captures the gist of the development of finance. The aim is to do justice heterodox economics and finance by appropriately explaining the causes, interrelations and consequences of such issues as money, uncertainty, financial stability and the role of financial institutions in a case study of the Mexican Stock Market (BMV), an emerging market, which is highly susceptible to permanent volatility.
Jamee K. Moudud
There is ample historical evidence, both inside and outside the Organisation for Economic Co-operation and Development (OECD), which shows that businesses are not passive policy-takers and in fact that they play a very active role in molding, reshaping, or even blocking when necessary, socially desirable policies when these are deemed antithetical to business interests. On the other hand the state is not a passive policy-maker either, obediently following capitalist diktats. The point of departure of this chapter is the proposition that attempts by the state to implement social democratic policies and/or maintain them over time take place in a highly contested environment involving power struggles between the business, state, and the larger society. The chapter suggests that social democratic policy proposals in a particular country need to be anchored in the study of the history and historiography of state_business relations in order to understand the nature of power struggles over policy. Where relevant, this type of work should be complemented via empirical or econometric analysis. For example, the investigation of the trends in business tax rates and social expenditure rates can provide quantitative evidence of the power wielded by capitalists, workers, and the state, thereby deepening the understanding of the ways in which the power structure in capitalist societies shapes policies.
In this chapter we introduce the stock-flow-consistent approach to macroeconomic modeling, developed from the pioneering work of Wynne Godley and others in Cambridge, and James Tobin at Yale. Empirical applications of this approach were successful in predicting the Great Recession of 2007, and the publication of Monetary Economics by Godley and Lavoie in 2007 also attracted a growing attention to this methodology, which is being developed by a growing number of scholars, mainly in the post-Keynesian tradition. Stock-flow-consistent models provide an integrated analysis of real and financial markets, which is missing in most mainstream models, although it is essential to understanding modern monetary economies. In this chapter we introduce the consistency requirements of macroeconomic models: payments from one sector must be accounted for as receipts of another sector; financial assets of one sector are liabilities for another sector, and so on; discussing the links between models and national accounting for both flows and stocks. We next discuss how feedbacks from stocks to flow need to be accounted for, providing a consistent dynamic representation of the economy over historical time. Finally, we explore the current lines of research related to this approach in the post-Keynesian literature.
Therese Jefferson, Siobhan Austen, Rhonda Sharp, Rachel Ong, Valerie Adams and Gill Lewin
This chapter describes the development and implementation of a mixed methods research project that was designed to investigate the characteristics and experience of women aged 45 and over working in the Australian aged care sector. The key issue of interest is whether these workers planned to remain in or leave employment in the sector. This study utilizes an embedded mixed methods framework of enquiry, utilizing secondary data from a large national survey, organizational employment data, purposefully collected survey data, and semi-structured interview data collection and analysis. This framework captures the potential of quantitative data to identify national patterns of mature-age women’s employment, the employment decisions made by aged care workers at an organizational level, and patterns of employment exit and retention by aged care workers at an industry level. Individual qualitative data provide insights into the experiences of the aged care workers within specific institutional contexts.