nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2007‒06‒23
thirteen papers chosen by
Erik Thomson
University of Chicago

  1. Pareto's Chronicles: Liberty and the Left By Michael McLure
  2. The appropriate style of economic discourse. Keynes on Economics and Econometrics By Garrone Giovanna; Marchionatti Roberto
  3. Keynes, statistics and econometrics By Garrone Giovanna; Marchionatti Roberto
  4. Keynes, l'Argent et la psychanalyse By Dostaler Gilles
  5. Il capitale sociale nel pensiero di John Maynard Keynes By Fiorillo Damiano
  6. Milton Friedman and U.S. monetary history: 1961-2006 By Edward Nelson
  7. Economics research in Canada: A long-run assessment of journal publications By James B. Davies; Martin Kocher; Matthias Sutter
  8. Soaring Minds: The Flight of Israel’s Economists By Ben-David, Dan
  9. The theory of contests : a survey By Luis C. Corchon
  10. The Economics of Islamic Finance and Securitization By Andreas Jobst
  11. Allocation of scarce resources when rationality is one of them: some consequences of cognitive inequalities for theory and policy By Pelikan, Pavel
  12. Is There A Plausible Theory for Risky Decisions? By James C. Cox; Vjollca Sadiraj; Bodo Vogt; Utteeyo Dasgupta
  13. Time is not money By Ellingsen, Tore; Johannesson, Magnus

  1. By: Michael McLure (UWA Business School, The University of Western Australia)
    Abstract: The ‘second series’ of the Giornale degli Economisti commenced in 1890. It revealed a notable change in editorial direction from the earlier series, which was a direct result of Alberto Zorli being joined by leading liberal intellectuals, Ugo Mazzola, Antonio de Viti de Marco and Maffeo Pantaleoni, as the Journal’s proprietary directors. In regard to economic science, the second series saw the Journal establish itself as the leading Italian distributor of the new marginalism. In regard to politics, it became a leading advocate for liberal policy. To that end, the Journal published a special feature from 1891 entitled ‘cronaca’, which critically chronicled practical developments in Italian public policy, public finances and the state of the economy. In 1893 Pareto took over from Ugo Mazzola as author of the chronicles, a role he continued to perform until 1897. His contributions were, overwhelmingly, critical of interventionist and militaristic actions of the Italian Government. The purpose of this paper is to place Pareto’s chronicles in their historical context and search for comments that hint at the subsequent development of sociological theory. This will be achieved by: interpreting Pareto’s ‘cronaca’ with reference to political developments in Italy from the 1880s to 1897; identifying practical illustrations in the ‘cronaca’ concerning liberty and the extreme left in Italian society; and identifying three broad consistencies between Pareto’s ‘non-scientific’ ‘Cronaca’ and his scientific ‘General Sociology’.
    Keywords: Cronaca, Chronicle, Vilfredo Pareto, General Sociology
    Date: 2007
  2. By: Garrone Giovanna; Marchionatti Roberto (University of Turin)
    Date: 2007–03
  3. By: Garrone Giovanna; Marchionatti Roberto (University of Turin)
    Date: 2007–05
  4. By: Dostaler Gilles
    Date: 2007–06
  5. By: Fiorillo Damiano
    Abstract: Obiettivo del lavoro è accertare se aspetti di capitale sociale, quali le relazioni interpersonali, le organizzazioni sociali e la fiducia, possono individuarsi nell'economia politica keynesiana. Il lavoro prova a rendere contributi lungo tre linee. Primo, nella filosofia keynesiana del sistema capitalista, l'individuo è permeato da obiettivi egoistici e razionali anche quando instaura relazioni interpersonali. Tuttavia, Keynes rifiuta eticamente il movente del vantaggio a cui contrappone la massimizzazione dell'ideale. Secondo, l'individualismo egoistico può essere disciplinato e incanalato verso l'interesse collettivo mediante organizzazioni sociali intermedie tra l'individuo e lo Stato. Terzo, esso sostiene che la teoria keynesiana dell'efficienza marginale del capitale e della preferenza per la liquidità potrebbe fornire, in condizioni di incertezza e ignoranza totale, una base teorica all'evidenza empirica riscontrata in letteratura della relazione positiva tra la fiducia e la crescita economia per mezzo dell'investimento in capitale fisico.
    Date: 2007–03
  6. By: Edward Nelson
    Abstract: This paper brings together, using extensive archival material from several countries, scattered information about Milton Friedman's views and predictions regarding U.S. monetary policy developments after 1960 (i.e., the period beyond that covered by his and Anna Schwartz's Monetary History of the United States). I evaluate these interpretations and predictions in light of subsequent events.
    Keywords: Federal Reserve System - History ; Friedman, Milton ; Economic history
    Date: 2007
  7. By: James B. Davies; Martin Kocher; Matthias Sutter
    Abstract: We examine the publications of authors affiliated with an economics research institution in Canada in (i) the Top-10 journals in economics according to journals’ impact factors, and (ii) the Canadian Journal of Economics. We consider all publications in the even years from 1980 to 2000. Canadian economists contributed about 5% of publications in the Top-10 journals and about 55% of publications in the Canadian Journal of Economics over this period. We identify the most active research centres and identify trends in their relative outputs over time. Those research centres successful in publishing in the Top-10 journals are found to also dominate the Canadian Journal of Economics. Additionally, we check the robustness of our findings with respect to journal selection, and we present data on authors’ Ph.D.-origin, thereby indicating output and its concentration in graduate education.
    Keywords: Research in economics, Canadian economics, top journals
    JEL: A11 A14
    Date: 2007–07
  8. By: Ben-David, Dan
    Abstract: Despite their small number, Israeli economists have become an important fixture in the international academic scene. In recent years, this phenomenon has been characterized by an additional attribute: the number of Israelis who have chosen to leave the country’s universities - or not to return to them - a process that has brought Israel’s top economics departments to the brink. The elimination of the country from the international research envelope in the future has become a realistic possibility that will impact not only the State of Israel, which stands to lose the most, but the profession in general. This article provides a snapshot of an implosion in progress. It also provides a case study that is important for other countries to understand as some steadily advance toward the Israeli scenario.
    Keywords: academic economists; brain drain; Israel; migration; rankings
    JEL: A11 F22 H52 H83 I23 J31 J61 O15
    Date: 2007–06
  9. By: Luis C. Corchon
    Date: 2007–04
  10. By: Andreas Jobst
    Abstract: Islamic lending transactions are governed by the precepts of the shariah, which bans interest and stipulates that income must be derived as return from entrepreneurial investment. Since Islamic finance is predicated on asset backing and specific credit participation in identified business risk, structuring shariah-compliant securitization seems straightforward. This paper explains the fundamental legal principles of Islamic finance, which includes the presentation of a valuation model that helps distil the essential economic characteristics of shariah-compliant synthetication of conventional finance. In addition to a brief review of the current state of market development, the examination of pertinent legal and economic implications of shariah compliance on the configuration of securitization transactions informs a discussion of the most salient benefits and drawbacks of Islamic securitization.
    Date: 2007–05–15
  11. By: Pelikan, Pavel
    Abstract: "Rationality" is understood in the empirical sense of cognitive abilities of human brains for solving economic problems, and consequently recognized bounded in individually unequal ways. This is shown to require treating it as a unique scarce resource, used for deciding on its own uses. This uniqueness disturbs axiomatic economics by a tangled hierarchy, and implies that rationality-allocation can approach efficiency only by means of an institutionally shaped trial-and-error evolution. Applied to the markets vs. government issue, a comparative institutional analysis of rationality-allocation yields novel insights with non-standard policy implications, and thus demonstrates that rationality-allocation matters.
    Keywords: unequally bounded rationality; rationality-allocation; tangled hierarchy; institutionally shaped evolution; comparative institutional analysis
    JEL: P5 D6 H1 D72
    Date: 2007–05
  12. By: James C. Cox; Vjollca Sadiraj; Bodo Vogt; Utteeyo Dasgupta
    Abstract: A large literature is concerned with analysis and empirical application of theories of decision making for environments with risky outcomes. Expected value theory has been known for centuries to be subject to critique by St. Petersburg paradox arguments. More recently, theories of risk aversion have been critiqued with calibration arguments applied to concave payoff transformations. This paper extends the calibration critique to decision theories that represent risk aversion solely with transformation of probabilities. Testable calibration propositions are derived that apply to four representative decision theories: expected utility theory, cumulative prospect theory, rank-dependent expected utility theory, and dual expected utility theory. Heretofore, calibration critiques of theories of risk aversion have been based solely on thought experiments. This paper reports real experiments that provide data on the relevance of the calibration critiques to evaluating the plausibility of theories of risk aversion. The paper also discusses implications of the data for (original) prospect theory with editing of reference payoffs and for the new dual-self model of impulse control. In addition, the paper reports an experiment with a truncated St. Petersburg bet that adds to data inconsistent with risk neutrality.
    Date: 2007–06
  13. By: Ellingsen, Tore (Dept. of Economics, Stockholm School of Economics); Johannesson, Magnus (Dept. of Economics, Stockholm School of Economics)
    Abstract: Casual observation suggests that people are more generous with their time than with their money. In this paper we present experimental evidence supporting the hypothesis. A third of our subjects demand no compensation for non-monetary investments, whereas almost all subjects demand compensation for equally costly monetary investments. The finding supports the contention that generosity to some extent is symbolic and context dependent, and that social norms encourage generosity in the time domain.
    Keywords: Altruism; Bargaining; Non-monetary generosity
    JEL: C91 J20 L14 Z13
    Date: 2006–12–07

This nep-hpe issue is ©2007 by Erik Thomson. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.