nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2007‒10‒06
twelve papers chosen by
Erik Thomson
University of Chicago

  1. History of Economics or a Selected History of Economics? By Palma, Nuno
  2. Nanofoundations of macroeconomics: Keynes and the institutional elements in the General Theory By Pessali, Huascar
  3. Keynesian cross: diagrammatical interpretations of effective demand By Heller, Claudia; Dessotti, Marina
  4. Professor Becker on Free Banking: A Comment By van den Hauwe, Ludwig
  5. Successes and Failures of Monetary Policy Since the 1950s By David Laidler
  6. Will monetary policy become more of a science? By Frederic S. Mishkin
  7. Accounting: A General Commentary on an Empirical Science By Salvary, Stanley C. W.
  8. Economics Against Democracy By Manuel Couret Branco
  9. Academic Rankings with RePEc By Christian Zimmermann
  10. The Political Economy of Entrepreneurship By Douhan, Robin; Henrekson, Magnus
  11. Farmers and Capitalism By Carney, Richard
  12. Market masculinities and electronic trading By Matthias Klaes; Geoff Lightfoot; Simon Lilley

  1. By: Palma, Nuno
    Abstract: While research on the history of economics can be important to modern economics, the work of historians of economics is more often than reasonable associated with either non-contemporary or heterodox issues. I provide quantitative evidence of this, by analyzing the publications in the three main history of economics journals over the last fourteen years (1993-2006). This trend must change if the work of historians of economics is to be taken seriously by mainstream economists.
    Keywords: History of Economics
    JEL: B4 B0
    Date: 2007–09–10
  2. By: Pessali, Huascar
    Abstract: Chapter 12 of Keynes´ General Theory has concepts and analytical links with strong identification with the ones used by the so-called institutional approaches. This essay emphasises what seems to have been anticipated by Keynes on the research core of institutional economics, mainly based on his behavioural assumptions.
    Keywords: Keynes; keynesianismo; comportamento dos agentes; instituições; institucionalismo
    JEL: B52 B25 B31
    Date: 2006–07–01
  3. By: Heller, Claudia; Dessotti, Marina
    Abstract: The General Theory of Employment, Interest and Money by John Maynard Keynes led up to three cross-shaped graphical interpretations: the IS-LM model, the 45º model and the Z-D model. The first one was originated from Hicks (1937) well-known paper, despite the differences between his original version and the textbook versions. The second one has become familiar through Alvin Hansen´s 1953 book, to which Paul Samuelson also contributed. These two models are considered to be neoclassical – the meaning of which in this particular context will be discussed in our paper. The third model has became popular through Dudley Dillard´s 1948 book and is embraced – with few qualifications – by Post Keynesians, who consider it to be more faithful to Keynes´s original 1936 book. The three models are graphical (and algebraical) formalizations of Keynes´s theory, but the last two are more specific in that they are focused on the explanation of the Principle of Effective Demand (PED). This paper compares the two graphical representations of the PED in the light of the definitions of aggregate demand, aggregate supply and effective demand, as they were presented by Keynes in the General Theory. The purpose of the paper is to identify which original arguments by Keynes support each of both models
    Keywords: Keynesianism; 45º model; Z-D model
    JEL: B20 B22
    Date: 2007–09
  4. By: van den Hauwe, Ludwig
    Abstract: Professor Becker´s paper about free banking written in 1956 was originally intended as a reaction to the 100-percent reserve proposals that were then popular at the University of Chicago. Today the original paper clearly illustrates how considerably our views and theories about free banking have evolved in the past 50 years. This development is to a considerable extent the result of the work and the writings of economists of the Austrian School. Professor Pascal Salin is one of the most prominent members of the Austrian free banking school. In a new introduction to this 1956 paper written especially for the Festschrift in honor of Professor Pascal Salin, Professor Gary Becker partially repudiates and mitigates some of his previous conclusions. This event offers a fitting opportunity to review some developments in the theory of free banking and related issues and to add a few clarifications concerning the present “state of the art” as regards an acceptable and adequate notion of free banking.
    Keywords: Free Banking; Monetary Regimes; Monetary Standards; Business Cycles
    JEL: E32 E42 E58
    Date: 2007–10–04
  5. By: David Laidler (University of Western Ontario)
    Abstract: Successes and failures in monetary policy stem mainly from coherence or lack thereof in the monetary order, rather than the tactical skills of policy makers. Crucial here are questions of consistency among the economic ideas that the policy regime embodies, the way in which the economy actually functions, and the beliefs of private agents and policy makers about these matters. These postulates are used to frame accounts of the Bretton Woods System and its collapse, the Great Inflation that followed, the subsequent disappointing performance of money-growth targeting, the breakdown of the Japanese "bubble economy" the onset of theEMS crisis at the beginning of the 1990s, and since then, the launch of the Euro and the apparent success of inflation targeting. Though monetary policy seems rather successful at present, certain weaknesses in currently prevailing monetary orders are noted.
    Keywords: monetary policy; policy regimes; crises; pegged exchange rates; flexible exchange rates; inflation; inflation targets; money supply; central banks, central bank independence.
    JEL: E42 E58 E65 F33
    Date: 2007
  6. By: Frederic S. Mishkin
    Abstract: This paper reviews the progress that the science of monetary policy has made over recent decades. This progress has significantly expanded the degree to which the practice of monetary policy reflects the application of a core set of "scientific" principles. However, there remains, and will likely always remain, elements of art in the conduct of monetary policy.
    Date: 2007
  7. By: Salvary, Stanley C. W.
    Abstract: Many researchers have questioned the view of accounting as a science. Some maintain that it is a service activity rather than a science, yet others entertain the view that it is an art or merely a technology. While it is true that accounting provides a service and is a technology (a methodology for recording and reporting), that fact does not prevent accounting from being a science. Based upon the structure and knowledge base of the discipline, this paper presents the case for accounting as an empirical science.
    Keywords: national accounting and organizational accounting; risk-sharing arrangements; management of time and other resources; monetization of the economy; command over goods and services; extrinsic value and intrinsic value; commodity money and paper/nominal money; money in relation to credit; the firm and long range planning; market value versus committed finance; explanation and prediction; expectations and uncertainty.
    JEL: M4 M41
    Date: 2007–06–28
  8. By: Manuel Couret Branco (Department of Economics, University of Évora)
    Abstract: I believe that freedom of choice constitutes a pillar of rational choice in economic theory, regardless of the definition of rational choice one adopts. On the other hand, economics being socially embedded, free choice in economics seems senseless without political freedom of choice. Democracy, therefore, plays an important role in economic efficiency as much as in social fairness. Following this line of thought one should expect that economics, both in theory and in practice, should permanently strengthen the role of democracy in its institutional construction. Unfortunately it does not seem to be the case. Although historically many of the democratic achievements in the past two centuries have been intimately connected to the development of liberal economics, one can assert that mainstream liberal economics is intrinsically contradictory with the democratic ideal. The first stage of the demonstration of this thesis concerns the dismounting of the naturalization process that economics has undergone with the purpose of transforming economic decisions into plain technical issues supposedly free from democratic debate.The second stage concerns the ways in which the market has managed to legitimise its hegemony in society and the reasons why this contributes to the erosion of democracy. Within this hegemony five aspects will be dealt with; the imposition of a market jurisdiction; the deregulation of the economy; the process of political and economic unaccountability; the de-politicization of free choice and the conflict between the territorialization of democracy and the de-territorialization of economics.
    Keywords: Democracy, Market, Politics, Liberal Economics, Participation
    JEL: A1 B4 H4 H5 I3 J8 K0
    Date: 2007
  9. By: Christian Zimmermann (University of Connecticut)
    Abstract: This documents describes the data collection and use for the computation of rankings within RePEc (Research Papers in Economics). This encompasses the determination of impact factors for journals and working paper series, as well as the ranking of authors, institutions and geographic regions. The various ranking methods are also compared, using a snapshot of the data.
    Keywords: RePEc, rankings, impact factors, working papers, h-index, citations.
    JEL: A14 A10 A11 A13 Z00
    Date: 2007–09
  10. By: Douhan, Robin (Research Institute of Industrial Economics (IFN)); Henrekson, Magnus (Research Institute of Industrial Economics (IFN))
    Abstract: We outline a politico-economic growth system centered around the entrepreneur. By defining entrepreneurs in relation to economic rents we are able to develop a more general theory comprising central aspects of research within the fields of entrepreneurship/small business, public choice and new institutional economics. The entrepreneurial function is shown to depend crucially on the existing institutional framework. We also point to the necessity of viewing institutions as endogenously influenced by entrepreneurs. A typology of entrepreneurship is developed to further our understanding of the bilateral effects between institutional context and entrepreneurial activity. We use developments in modern history as a real-world context to substantiate our framework. Particular attention is devoted to the effects of enforcement of property rights and taxation, two of the most prominent institutions in the literature.
    Keywords: Entrepreneurship; Industrial Policy; Innovation; Property Rights; Regulation; Self-employment; Tax Policy
    JEL: H32 L25 L50 M13 O31 P14
    Date: 2007–09–05
  11. By: Carney, Richard
    Abstract: Most analyses of modern capitalism focus on bargains struck between workers, managers, and owners (and the different types of firms they inhabit). But considering the substantial influence of institutional inertia on modern outcomes, it is necessary to examine the origins, and to consider which actors were most important in the early construction of capitalist systems. In this regard, farmers have played a critical role. I examine four cases - early 19th Century United States, early 20th Century United States, post-WWII France, and post-WWII Japan - to assess farmers’ influence on the origins of contemporary institutions, and find that they have played an important, though frequently overlooked, role.
    Keywords: political economy; capitalism; financial institutions; economic development
    JEL: P0 N20
    Date: 2007–09–24
  12. By: Matthias Klaes (Centre for Economic Research, Keele University, England); Geoff Lightfoot (Centre for Philosophy and Political Economy, University of Leicester, England); Simon Lilley (Centre for Philosophy and Political Economy, University of Leicester, England)
    Abstract: The transition from exchange mediated by the technology of open outcry to that mediated more entirely by screen might be expected to alter the pronounced gendering of trading. Focusing on narrative repertoires of alternative trading regimes we examine how traders make sense of their activities at the same time as practically orienting them and argue that compared to the widely acknowledged masculinity of open outcry trading, screen based trading provides no less of an arena for expression of compulsory masculinity. Methodologically, we call for greater attention to ethnographically grounded analyses of the gendered repertoires of exchange.
    Keywords: behavioral-finance, feminist-economics, gender, narrative
    JEL: B52 B54 G10 Z13
    Date: 2007–01

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