nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2008‒08‒14
eight papers chosen by
Erik Thomson
University of Chicago

  1. What Ethics Can Learn From Experimental Economics - If Anything By Werner Güth; Hartmut Kliemt
  2. Triple-loop learning as foundation for profound change, individual cultivation, and radical innovation: Construction processes beyond scientific and rational knowledge. By Peschl, Markus F.
  3. "The Good the Bad and the Ugly: Lessons learnt in estimating the value added of the island’s primary sector and Results" By Apostolides, Alexander
  4. The Relationship Between Classical and Quantum Correlation in Games By Adam Brandenburger
  5. Workfare – The Reinvention of the Social By Herrmann, Peter
  6. The Impossibility of Social Choice and the Possibilities of Individual Values: Political and Philosophical Liberalism Reconsidered By Werner Güth; Hartmut Kliemt
  7. Calculating Profit: A Historical Perspective on the Development of Capitalism By Toms, Steven
  8. The sure-thing principle and independence of irrelevant knowledge By Dov Samet

  1. By: Werner Güth (Max Planck Institute of Economics, Jena, Strategic Interaction Group); Hartmut Kliemt (Frankfurt School of Finance and Management)
    Abstract: Relying on the specific example of ultimatum bargaining experiments this paper explores the possible role of empirical knowledge of behavioural "norm(ative) facts" within the search for an inter-personal (W)RE - (Wide) Reflective Equilibrium on normative issues. Assuming that pro-social behaviour "reveals" ethical orientations, it is argued that these "norm-facts" can and should be used along with stated preferences in justificatory arguments of normative ethics and economics of the "means to given ends" variety.
    Keywords: Meta-Ethics, Experimental Economics, Reflective Equilibrium
    JEL: D64 D7 K00 Z13
    Date: 2008–08–12
  2. By: Peschl, Markus F.
    Abstract: Purpose: How does new knowledge or profound change come about and which processes of construction are involved? This article aims at developing an epistemological as well as methodological framework which is capable of explaining how profound and radical change can be brought about in various contexts, such as in individual cultivation, in organizations, in processes of radical innovation, etc. The concept of emergent innovation will be developed—it is based on the triple-loop learning strategy and the U-theory approach which opens up a perspective how the domain of scientific/rational knowledge, constructivism, and wisdom could grow together more closely. Design/Structure: This article develops a strategy which is referred to as “triple-loop learning”, which is not only the basis for processes of profound change, but also brings about a new dimension in the field of innovation, learning, and knowledge dynamics: the existential realm and the domain of wisdom. A concrete approach realizing the triple-loop learning strategy is presented. The final section shows, how these concepts can be interpreted in the context of the constructivist approach and how they might offer some extensions to this paradigm. Findings: The process of learning and change has to be extended to a domain which concerns existential issues as well as questions of wisdom. Profound change can only happen, if these domains are taken into consideration. The triple-loop learning strategy offers a model fulfilling this criterion. It is an “epistemo-existential strategy” for profound change on various levels. Conclusions: The (cognitive) processes and attitudes of receptivity, suspension, redirecting, openness, deep knowing, as well as “profound change/innovation from the interior” turn out to be core concepts in this process of emergent innovation. They are compatible with constructivist concepts. Glasersfeld’s concept of functional fitness is carried to an extreme in the suggested approach of profound change and finds an extension in the existential domain.
    Keywords: Double-loop learning; individual cultivation; emergent innovation; (radical) innovation; knowledge creation; knowledge society; personality development; presencing; profound change; triple-loop learning; U-theory; wisdom.
    JEL: O32 O31
    Date: 2006–11–14
  3. By: Apostolides, Alexander
    Abstract: A greater emphasis in mathematical and statistical rigour is now expected in economics and economic history. Ad-Hoc procedures and guestimates are unpopular and considered unreliable. Yet a substantial amount of research relies on historical national accounts (HNAs) that would not satisfy criteria of robustness that the overall research itself entails. One could argue in order to have in order to have reliable results in one’s research, the underlying dataset needs to be reliable. This paper will present the gross output and value added of Cyprus and Malta in the Agriculture, Forestry and Fishing sector and the Mining sector. Such an exercise is fraught with difficulty. The dataset was fragmented and unreliable. As a result methodologies were employed that would not be acceptable in current national accounting. Here such methods are made explicit as the good, the bad and the ugly.
    Keywords: National Accounts; Historical GDP Estimation; Cyprus; Malta
    JEL: N54 N34 E01
    Date: 2008–02
  4. By: Adam Brandenburger
    Date: 2008–08–03
  5. By: Herrmann, Peter
    Abstract: The presentation aims on refocusing the mainstream debate, starting from looking at work as the central reference rather than seeing the constituting problem of workfare as one of social policy/social security. Of course, at the end the objective is a clearer understanding of how measures aiming on work and employment integration can meaningfully be utilised for responsible policy making. For this, an introductory step will look at what we are actually dealing with when we talk about workfare. Then a second step will very briefly present the EUropean political debate, returning thereafter to the question what we are actually dealing with when we talk about workfare. Then, in a third step, a paradox is presented: the gain of employment, going hand in hand with a loss of work. The conclusion will discuss in the fourth step workfare in the light of power and life.
    Keywords: workfare; social policy; Comparative social research
    JEL: N10 B30 H00 J20 H10 F00 A13 A12 I00 A14
    Date: 2008–07
  6. By: Werner Güth (Max Planck Institute of Economics, Jena, Strategic Interaction Group); Hartmut Kliemt (Frankfurt School of Finance and Management)
    Abstract: Though the social choice of social institutions or social results is impossible - there is, strictly speaking, no social choice - individual evaluations of social institutions or results trivially are possible. Such individual evaluations can be deemed liberal either because they emphasize political institutions that embody liberal values (political liberalism) or because individuals make up their mind in a specifically "liberal" way of forming ethical judgment (philosophical liberalism). Seen in this light the Paradox of Liberalism is of theoretical or philosophical interest but not a practical problem of political (institutional) liberalism.
    Keywords: Philosophical Liberalism, Political Liberalism, Public Choice, Social Choice
    JEL: B3 B52 D6 D7 D71
    Date: 2008–08–12
  7. By: Toms, Steven
    Abstract: The paper introduces the notion of different methods of calculating and analysing profitability as signatures of capitalism at different stages of development. Interactions between the development of the productive forces and the socialisation of capital ownership jointly impact on these signatures, such that profit calculations are historically contingent. These interactions take the identification of capitalism beyond simple associations with the presence or absence of double-entry bookkeeping (DEB), the capital account or return on capital calculations. Profit calculations are implicated in the process of transition from feudalism to capitalism by enabling the private enforcement of profit levels in excess of legally regulated interest rates or through fairly remunerated labour. The modern usage of ROCE is linked to the development of the productive forces and the socialisation of capital ownership.
    Date: 2008–07
  8. By: Dov Samet
    Date: 2008–07–31

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