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on History and Philosophy of Economics |
| By: | Boari, Mircea (Department of Political Science, University of Bucharest, Visiting ESSEC) |
| Abstract: | In their classic formulations, valid to this day, the issue of self-preservation is foundational for both political science and economics. In order to fixate this concept, the Modern theorists relied upon various assumptions about human nature. Due to the advances of biology and evolutionary theory, we are today in the position of explicating these assumptions in the form of stable scientific certainties. A foundational concept in biological theory is that of "fitness". The paper indicates the relationship between the less determined concept of self-preservation and the more rigorous one of fitness. By that, it accomplishes two things: it gives more solidity to the foundation of political theory and political economy, by anchoring them in biology; it opens the path towards a unification between two social sciences and their immediate juxtaposed science, biology. The emphasis of the paper is on political science, aiming to define, on the basis of the above argument, its proper object of study. The notion of fitness extraction is thus defined. A lateral exposition differentiates between political action, thus understood, and economic action, defined more generally as fitness transfer. The distinction is to be eventually furthered in a separate study. |
| Keywords: | Biology; Evolution; Fitness; Foundational Theory; Foundations of Economics; Political Science |
| JEL: | A19 B52 C73 P00 |
| Date: | 2005–06 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:essewp:dr-05006&r=hpe |
| By: | K. Vela Velupillai |
| Keywords: | general equilibrium theory,CGE models,mathematical economics,computability,constructivity |
| JEL: | C62 C63 D50 D58 |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpde:0513&r=hpe |
| By: | Horst Hanusch (University of Augsburg, Department of Economics); Andreas Pyka (University of Augsburg, Department of Economics) |
| Abstract: | Within the last 25 years large progress has been made in Neo-Schumpeterian Economics, this branch of economic literature which deals with dynamic processes causing qualitative transformation of economies basically driven by the introduction of novelties in their various and multifaceted forms. By its very nature, innovation and in particular technological innovation is the most exponent and most visible form of novelty. Therefore it is not very surprising that Neo-Schumpeterian Economics today has its most prolific fields in the studies of innovation and learning behavior on the micro-level of an economy, the studies on industry dynamics on the meso-level and studies of innovation driven growth and competitiveness on the macro-level of the economy. From a general point of view, however, the future developmental potential of socio-economic systems i.e. innovation in a very broad understanding encompassing besides technological innovation also organizational, institutional and social innovation has to be considered as the normative principle of Neo-Schumpeterian Economics. In this sense, innovation plays a similar role in Neo-Schumpeterian Economics like prices do in Neoclassical Economics. Instead of allocation and efficiency within a certain set of constraints, Neo-Schumpeterian Economics is concerned with the conditions for and consequences of a removal and overcoming of these constraints limiting the scope of economic development. Thus, Neo-Schumpeterian Economics is concerned with all facets of open and uncertain developments in socio-economic systems. A comprehensive Neo-Schumpeterian approach therefore has to consider not only transformation processes going on e.g. on the industry level of an economy, but also on the public and monetary side of an economic system. Our contribution introduces those extensions and complements to a comprehensive Neo-Schumpeterian economic theory, and develops some guideposts in the sense of a roadmap for necessary strands of analysis in the future in order to fulfill the claim of becoming a comprehensive approach comparable to neoclassical theory. |
| Keywords: | Neo-Schumpeterian economics, industrial dynamics, public finance, financial markets |
| JEL: | O30 O40 L2 P0 G10 B52 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:aug:augsbe:0278&r=hpe |
| By: | David C. Maré (Motu Economic & Public Policy Research) |
| Abstract: | Endogenous growth theory is one of the mainstream economics approaches to modelling economic growth. This paper provides a non-technical overview of some key strands of the endogenous growth theory (EGT) literature, providing references to key articles and texts. The intended audience is policy analysts who want to understand the intuition behind EGT models. The paper should be accessible to someone without much economics training. |
| Keywords: | Endogenous Growth, Innovation |
| JEL: | O31 O40 |
| Date: | 2005–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpdc:0509012&r=hpe |
| By: | Parto,Saeed; Ciarli,Tommaso; Arora,S. . (MERIT) |
| Abstract: | Development and growth are products of the interplay and interaction among heterogeneous actors operating in specific institutional settings. There is a much alluded-to, but under-investigated, link between economic growth, innovation systems, and institutions. There is widespread agreement among most economists on the positive reinforcing link between innovation and growth. However, the importance of institutions as catalysts in this link has not been adequately examined. The concept of innovation systems has the potential to fill this gap. But these studies have not conducted in-depth institutional analyses or focussed on institutional transformation processes, thereby failing to link growth theory to the substantive institutional tradition in economics. In this paper we draw attention to the main shortcomings of orthodox and heterodox growth theories, some of which have been addressed by the more descriptive literature on innovation systems. Critical overviews of the literatures on growth and innovation systems are used as a foundation to propose a new perspective on the role of institutions and a framework for conducting institutional analysis using a multi-dimensional typology of institutions. The framework is then applied to cases of Taiwan and South Korea to highlight the instrumental role played by institutions in facilitating and curtailing economic development and growth. |
| Keywords: | economics of technology ; |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umamer:2005020&r=hpe |
| By: | Argandoña, Antonio (IESE Business School) |
| Abstract: | In January 2005, The Economist published a survey on corporate social responsibility (CSR), joining a long-running debate on the meaning and need for CSR in a market economy. The British weekly's thesis, widely accepted among economists, was first stated years ago by Milton Friedman (1962): a firm that maximizes its profits while acting within the law and the ethical rules that are intrinsic to a market economy is fulfilling all of its social and moral responsibilities and need not abide by any other type of constraint or demand. However, this thesis is disputed by many other authors. This article seeks to answer the question of whether there is a role for CSR in the economic paradigm. Obviously, it does not pretend to give a final answer but simply to set forth the reasons that will enable each person to arrive at his or her own answer. The first part discusses the economic arguments about maximizing value for the owner and society and viewing the firm as a nexus of contracts. The second part discusses the different arguments about the possible role of CSR in the economic paradigm. The article ends with the conclusions. |
| Keywords: | Contracts; Corporate social responsibility; Efficiency; Ethics; Value maximization; |
| Date: | 2005–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:iesewp:d-0600&r=hpe |
| By: | Julia Campos; Neil R. Ericsson; David F. Hendry |
| Abstract: | This paper discusses the econometric methodology of general-to-specific modeling, in which the modeler simplifies an initially general model that adequately characterizes the empirical evidence within his or her theoretical framework. Central aspects of this approach include the theory of reduction, dynamic specification, model selection procedures, model selection criteria, model comparison, encompassing, computer automation, and empirical implementation. This paper thus reviews the theory of reduction, summarizes the approach of general-to-specific modeling, and discusses the econometrics of model selection, noting that general-to-specific modeling is the practical embodiment of reduction. This paper then summarizes fifty-seven articles key to the development of general-to-specific modeling. |
| Keywords: | Econometrics ; Econometric models |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgif:838&r=hpe |
| By: | Jordi Galí |
| Abstract: | The present paper describes recent research on two central themes of Keynes’ General Theory: (i) the social waste associated with recessions, and (ii) the effectiveness of fiscal policy as a stabilization tool. The paper also discusses some evidence on the extent to which fiscal policy has been used as a stabilizing tool in industrial economies over the past two decades. |
| Keywords: | business cycles, inefficient allocations, government spending multiplier, non-Ricardian households, countercyclical policies |
| JEL: | E32 E63 |
| Date: | 2004–10 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:830&r=hpe |
| By: | Dolfsma, W.; Eijk, A.R. van der; Jolink, A. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | In this paper, we draw on the literature about gift exchange to suggest a conceptualization of the emergence, maintenance and use of social capital (SK). We thus open up the black box of how social relations are established, and are able to indicate what can be meaningfully ascribed to social capital. Social capital as a concept cannot be invoked at will to explain situations that are primarily perceived as favorable. Instead, when the way in which social capital emerges, maintained and used is conceptually clarified, it becomes clear that situations perceived as unfavorable can be ascribed to SK as well, and it becomes clear that SK cannot be drawn on at will, by just anybody. SK resides in what we call a social capital community. |
| Keywords: | Social Capital;Gifts;Reciprocity;Social Exchange;Social Capital Community; |
| Date: | 2005–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30007025&r=hpe |
| By: | Benito Arruñada |
| Abstract: | This essay reviews some findings in cognition sciences and examines their consequences for the analysis of institutions. It starts by exploring how humans’ specialization in producing knowledge ensures our success in dominating the environment but also changes fast our environment. So fast that it did not give time to natural selection to adapt our biology, causing it to be potentially maladapted in important dimensions. A main function of institutions is therefore to fill the gap between the demands of our relatively new environment and our biology, still adapted to our ancestral environment as hunter-gatherers. Moreover, institutions are built with the available elements, which include our instincts. A deeper understanding of both aspects, their adaptive function and this recruitment of ancestral instincts, will add greatly to our ability to manage institutions. |
| Keywords: | Evolution, biology, behavior, institutions |
| Date: | 2005–03 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:822&r=hpe |
| By: | John J. Donohue III |
| Abstract: | This essay provides an overview of the central theoretical law and economics insights concerning antidiscrimination law across a variety of contexts including discrimination in labor markets, housing markets, consumer purchases, and policing. The different models of discrimination based on animus, statistical discrimination, and cartel exploitation are analyzed for both race and sex discrimination. I explore the theoretical arguments for prohibiting private discriminatory conduct and illustrates the tensions that exist between concerns for liberty and equality. I also discuss the critical point that one cannot automatically attribute observed disparities in various economic or social outcomes to discrimination, and illustrate the complexities in establishing the existence of discrimination. The major empirical findings showing the effectiveness of federal law in the first decade after passage of the 1964 Civil Rights Act are contrasted with the generally less optimistic findings from subsequent antidiscrimination interventions. |
| JEL: | H J K |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:11631&r=hpe |
| By: | Avichai Snir (Bar-Ilan University); Daniel Levy (Bar-Ilan University) |
| Abstract: | Economic organization of the imaginary worlds depicted in popular literary works may be viewed as a mirror to public opinion on the economic organization of life. If a book becomes a best-seller, it is because the book conveys messages, feelings, and events the readers can relate to. In other words, the book’s readers identify with the set of norms and rules that govern the development of the plot and the actions of its heroes. Therefore, a best seller, as a book that successfully relates to readers of its time, can teach us on the norms and believes of its audience. Following this line of thought, we use the method of deconstruction to analyze the highly successful J.K. Rowlings’ Harry Potter series. Studying the books within their social context allows us to learn about people’s norms, and their perceptions of issues such as the role of government, the structure of financial markets, poverty and inequality, etc. Thus, by looking at the Potterian economy through magnifying glasses, we obtain a perspective on what people might view as an ideal economic structure. Some aspects of this ideal world, we find, are quite different from the real world. |
| Keywords: | Social Norms, Social Organization of Economic Activity, Harry Potter, Literature |
| JEL: | A13 |
| Date: | 2005–09–21 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpot:0509012&r=hpe |
| By: | Silverberg,Gerald (MERIT) |
| Abstract: | While long waves have been seriously discussed by economists for almost one hundred years, to date there is no scientific consensus that particular frequency components are in any way privileged in the undoubtedly fluctuating history of modern economic and political development. This is disappointing for two reasons. First, the demonstration that robust, well-defined periodic components existed would present us with a plausible tool for forecasting. And second, they could (and their purported existence has variously been thought to) provide insight into underlying causal mechanisms that generate the observed patterns. The data, I argue, only provide support for a continuous spectral pattern of a power law, 1/fa. This is borne out in the paper by the analysis of political indicators such as the newly revised Modelski/Thompson sea power index and the Levy great powers conflict data. Claims for underlying low-dimensional chaos are only partly substantiated. Individual peaks at various frequencies in the spectrum are probably only due to “random noise” factors unique to segments of the record and not robust across countries and historical episodes. While one could then play the game of finding ad hoc explanations for why the ‘K-wave’ did not take its expected form in this or that century, from the perspective of the theory of complex dynamics it seems more plausible to conclude that a periodic model is not appropriate. Rather, the underlying model is more likely to be of the self-organized criticality or percolation type, characterized by power-law or fractal behavior rather than well-defined periodicity. I highlight some features common to several models of innovation/ economic dynamics and war/hegemonic cycles, such as highly clustered but nonperiodic critical events and resulting long life cycles of rise and decline, that may serve as a plausible explanatory mechanism for this ‘revisionist’ interpretation of the empirical record on long waves. |
| Keywords: | Economics ; |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:umamer:2005014&r=hpe |
| By: | Helena Ramalhinho-Lourenço |
| Abstract: | In this work we discuss some ideas and opinions related with teaching Metaheuristics in Business Schools. The main purpose of the work is to initiate a discussion and collaboration about this topic,with the final objective to improve the teaching and publicity of the area. The main topics to be discussed are the environment and focus of this teaching. We also present a SWOT analysis which lead us to the conclusion that the area of Metaheuristics only can win with the presentation and discussion of metaheuristics and related topics in Business Schools, since it consists in a excellent Decision Support tools for future potential users. |
| Keywords: | Metaheuristics, Teaching Business |
| JEL: | C69 M19 |
| Date: | 2005–01 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:806&r=hpe |
| By: | Fernando Aguiar; Andrés de Francisco |
| Abstract: | In this article we explore the positive use of “social identity” in order to explain certain instances of social action. We attempt to isolate its explanatory power alongside the two great motivational mechanisms of the sociological tradition: interests and instrumental rationality, on the one hand; and values, norms and practical reason, on the other. We discover an ample sphere for a reductionist strategy where identity is and must be translated to the language of either interests and preferences or norms and values with which the individual identifies himself. Nevertheless, in the final part of this paper we also explore the possibility and circumstances of the appearance of reasons of identity proper as independent and irreducible agency factors. |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:esa:iesawp:0505&r=hpe |
| By: | Brocas, Isabelle; Carrillo, Juan D |
| Abstract: | We model the brain as a multi-agent organization. Based on recent neuroscience evidence, we assume that different systems of the brain have different time-horizons and different access to information. Introducing asymmetric information as a restriction on optimal choices generates endogenous constraints in decision-making. In this game played between brain systems, we show the optimality of a self-disciplining rule of the type 'work more today if you want to consume more today' and discuss its behavioural implications for the distribution of consumption over the life-cycle. We also argue that our split-self theory provides 'micro-microfoundations' for discounting and offer testable implications that depart from traditional models with no conflict and exogenous discounting. Last, we analyse a variant in which the agent has salient incentives or biased motivations. The previous rule is then replaced by a simple, non-intrusive precept of the type 'consume what you want, just don't abuse'. |
| Keywords: | dual self model; neuroeconomics |
| JEL: | D82 Z0 |
| Date: | 2005–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:5168&r=hpe |
| By: | William T. Gavin |
| Abstract: | This paper summarizes recent developments in the theory and practice of monetary policy in a closed economy and explains what these developments mean for U.S. Dollar policy. There is no conflict between what is appropriate U.S. monetary policy at home or abroad because the dollar is the world's key currency country. Both at home and abroad, the main problem for U.S. policymakers is to provide an anchor for the dollar. Recent experience in other countries suggests that a solution is evolving in the use of inflation targets. |
| Keywords: | Dollar, American ; Monetary policy |
| Date: | 2005 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2005-062&r=hpe |
| By: | Stremersch, S. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University) |
| Abstract: | For an academic, finding an audience is critical. However, finding an audience is not always easy for most marketing academics. This inaugural address explores what the challenges are in finding an audience, among fellow scholars, students, public policy, industry, or society in general. It finds that the academic audience for marketing research is: (1) often small; (2) constrained to the own discipline; and (3) mostly located in the United States. The student audience is also under pressure, due to: (1) the difficult translation of academic marketing research to marketing education; (2) shifting student preferences; and (3) lack of involvement of students. The audience in society is too small due to a lack of relevance of marketing research in three ways: (1) lack of a public policy perspective; (2) too incremental insights to be useful to practice; and (3) too much focus on rigor to be interesting for the press. This address cites three ways to grow towards a larger and more loyal audience by evolving towards: (1) a truly globalized community of marketing academics; (2) living together with our source disciplines; and (3) a stronger focus on the knowledge economy and the life sciences. |
| Keywords: | Marketing;Marketing Research;Philosophy of Science;Takeoff;Globalization;Pharmaceuticals;Biotechnology;Knowledge economy; |
| Date: | 2005–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:eureri:30002126&r=hpe |
| By: | William Barnett (Department of Economics, The University of Kansas); Apostolos Serletis (University of Calgary); Demitre Serletis (University of Toronto) |
| Abstract: | This paper was produced for the El-Naschie Symposium on Nonlinear Dynamics in Shanghai in December 2005. In this paper we provide a review of the literature with respect to fluctuations in real systems and chaos. In doing so, we contrast the order and organization hypothesis of real systems with nonlinear chaotic dynamics and discuss some techniques used in distinguishing between stochastic and deterministic behavior. Moreover, we look at the issue of where and when the ideas of chaos could profitably be applied to real systems. |
| Keywords: | Chaos, Nonlinearity, Self-organized criticality |
| JEL: | C8 C14 C22 E37 E32 |
| Date: | 2005–09 |
| URL: | http://d.repec.org/n?u=RePEc:kan:wpaper:200517&r=hpe |