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on History and Philosophy of Economics |
| By: | Daron Acemoglu |
| Abstract: | I discuss the role of economic theory in empirical work in development economics with special emphasis on general equilibrium and political economy considerations. I argue that economic theory plays (should play) a central role in formulating models, estimates of which can be used for counterfactual and policy analysis. I discuss why counterfactual analysis based on microdata that ignores general equilibrium and political economy issues may lead to misleading conclusions. I illustrate the main arguments using examples from recent work in development economics and political economy. |
| JEL: | B41 D50 O10 O12 P48 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:15944&r=hpe |
| By: | Michel De Vroey (University of Louvain) |
| Abstract: | The aim of this paper is to recount the ebbs and flows of Keynesianism over the history of macroeconomics. The bulk of the paper consists of a discussion of the main episodes of the unfolding of macroeconomics (Keynesian macroeconomics, monetarism, new classical macroeconomics, real business cycle models and new neoclassical synthesis models) against the background of a distinction between Keynesianism as a ‘moderately conservative’ (Keynes’s words) vision about the working of the market system and as a conceptual apparatus. Particular attention is given to the contrast between Keynesian and Lucasian macroeconomics. The paper ends with a few remarks about the impact of the present crisis on the development of macroeconomic theory |
| Keywords: | Keynes, Lucas, history of macroeconomics |
| JEL: | B |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:201004-02&r=hpe |
| By: | Estrada, Fernando |
| Abstract: | In this paper we have presented arguments for simplicity as epistemological criterion of economic research. In particular, have been important aspects that show how the tradition of the theory, to make principle simplicity to represent many empirical data of experience or information, was one of the goals set by the fathers of the discipline: Adam Smith, John Stuart Mill, and Jeremy Bentham. |
| Keywords: | Economy theory; epistemology; history of economy; public election; Robert Nozick. |
| JEL: | B0 A20 A1 B1 B4 A2 B00 A11 B12 A12 B41 |
| Date: | 2010–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22410&r=hpe |
| By: | Lars Jonung; Eoin Drea |
| Abstract: | This study of approximately 170 publications shows (a) that US academic economists concentrated on the question "Is the EMU a good or bad thing?", usually adopting the paradigm of optimum currency areas as their main analytical vehicle, (b) that they displayed considerable scepticism towards the single currency, (c) that economists within the Federal Reserve System had a less analytical and a more pragmatic approach to the single currency than US academic economists, and (e) that US economists adjusted their views and analytical approach as European monetary unification progressed. In particular, the traditional optimum currency approach was gradually put into question. |
| Keywords: | The euro, optimum currency area, ECB, EMU, Federal Reserve System, monetary unification, Europe, United States, Jonung, Drea |
| JEL: | B22 E E5 F02 F33 F41 |
| Date: | 2009–12 |
| URL: | http://d.repec.org/n?u=RePEc:euf:ecopap:0395&r=hpe |
| By: | Chiswick, Carmel U. (University of Illinois at Chicago) |
| Abstract: | The role of women in the ritual of many religions changed dramatically at the end of the 20th century, to the point where full participation by women was the norm by 2000 rather than the rarity that it had been 30 years earlier. This paper considers some aspects of the economic context that help explain why the movement toward egalitarianism succeeded in that period in contrast to its many previous failures. It concludes with predictions of future trends. |
| Keywords: | economics, gender, religion, fertility |
| JEL: | J16 Z12 J13 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4904&r=hpe |
| By: | Ivo Maes (National Bank of Belgium, Research Department; Université catholique de Louvain, Robert Triffin Chair; HUBrussel; ICHEC Brussels Management School) |
| Abstract: | "A century of macroeconomic and monetary thought at the National Bank of Belgium" traces the history of economic research at the National Bank of Belgium, from the early decades of the 20th century to its present functioning in the Eurosystem. The study also goes into the major economic policy debates, as well as the specific lines of macroeconomic and monetary thinking at the National Bank of Belgium. The focus is very much on the role of the Research Department in policymaking and its dialogue (and debates) with the academic community |
| Keywords: | National Bank of Belgium, central banking, monetary theory, economic research |
| JEL: | A11 B22 E42 E58 N10 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:201004-03&r=hpe |
| By: | Julia Lane |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:rsw:rswwps:rswwps97&r=hpe |
| By: | Giorgio Coricelli (ISC - Institut des Sciences Cognitives - CNRS : UMR5015 - Université Claude Bernard - Lyon I); Matteus Joffily (ISC - Institut des Sciences Cognitives - CNRS : UMR5015 - Université Claude Bernard - Lyon I); Claude Montmarquette (CIRANO - Centre interuniversitaire de recherche en analyse des organisations - Université du Québec à Montréal); Marie-Claire Villeval (GATE Lyon Saint-Etienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines) |
| Abstract: | The economics-of-crime approach usually ignores the emotional cost and benefit of cheating. In this paper, we investigate the relationships between emotions, deception, and rational decision-making by means of an experiment on tax evasion. Emotions are measured by skin conductance responses and self-reports. We show that the intensity of anticipated and anticipatory emotions before reporting positively correlates with both the decision to cheat and the proportion of evaded income. The experienced emotional arousal after an audit increases with the monetary sanctions and the arousal is even stronger when the evader's picture is publicly displayed. We also find that the risk of a public exposure of deception deters evasion whereas the amount of fines encourages evasion. These results suggest that an audit policy that strengthens the emotional dimension of cheating favors compliance. |
| Keywords: | deception ; tax evasion ; emotions ; physiological measures ; experiment |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00462067_v1&r=hpe |
| By: | Otmar Issing (Center for Financial Studies, Frankfurt am Main) |
| Abstract: | In this paper I outline – from a practitioner’s as well as from a researcher’s perspective – several of the key developments that took place during the last century in monetary policy. In particular, I describe how the monetary system evolved from gold standard, prevailing throughout most of the last century, to paper money and how the norm in central banking changed from pure discretion after World War II to transparency and independence. I furthermore analyze how the exchange rate regime under Bretton-Woods impacted on countries’ monetary policy and, with a focus on Europe, how European Monetary Union (EMU) emerged from the European Monetary System (EMS). I then outline today’s relatively broad consensus on monetary policy and how it developed from a learning process on the side of central banks and important contributions from research. Finally, after arguing that the ECB’s monetary policy which fruitfully combines past experience and current research is a successful and promising approach, I outline some challenges lying ahead |
| Keywords: | monetary policy, monetary system, European Monetary Union, ECB |
| JEL: | A11 B22 E42 E58 F33 N10 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:201004-01&r=hpe |
| By: | Onur Kesten (Carnegie Mellon University); M. Utku Ünver (Boston College) |
| Abstract: | A new centralized mechanism was introduced in New York City and Boston to assign students to public schools in district school-choice programs. This mechanism was advocated for its superior fairness property, besides others, over the mechanisms it replaced. In this paper, we introduce a new framework for investigating school-choice matching problems and two ex-ante notions of fairness in lottery design, strong ex-ante stability and ex-ante stability. This frame- work generalizes known one-to-many two-sided and one-sided matching models. We first show that the new NYC/Boston mechanism fails to satisfy these fairness properties. We then propose two new mechanisms, the fractional deferred-acceptance mechanism, which is ordinally Pareto dominant within the class of strongly ex-ante stable mechanisms, and the fractional deferred- acceptance and trading mechanism, which satisfies equal treatment of equals and constrained ordinal Pareto efficiency within the class of ex-ante stable mechanisms. |
| Keywords: | Matching, School Choice, Deferred Acceptance, Stability, Ordinal Efficiency, Market Design |
| JEL: | C71 C78 D71 D78 |
| Date: | 2010–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:737&r=hpe |
| By: | A. Stramaglia |
| Date: | 2010–03 |
| URL: | http://d.repec.org/n?u=RePEc:bol:prinwp:011&r=hpe |
| By: | Francisco J. Santos-Arteaga (Universidad Complutense de Madrid,Instituto Complutense de Estudios Internacionales (ICEI)) |
| Abstract: | The literature on bank runs reduces all coordination mechanisms triggering attacks on banks to exogenous sunspots. We present a general equilibrium version of these models where the uncertainty faced by depositors is modeled explicitly, such that bank runs arise as optimal equilibrium outcomes corresponding to Bayesian coordination games played by rational agents before depositing. Differentials in information sets between the bank and its depositors lead to rational self-contained equilibrium runs. The coexistence of different beliefs in equilibrium jointly with the self-fulfilling nature of the attacks follow from Adam Smith's invisible hand principle. The runs obtained do not violate the revelation principle. |
| Keywords: | Bank runs, Self-contained attacks, Bayesian coordination games, Revelation principle, Invisible hand principle, Pánicos bancarios, Ataques autocontenidos, Juegos de coordinación Bayesianos, Principio de revelación, Principios de la mano invisible. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:ucm:wpaper:02-10&r=hpe |
| By: | Vassili Joannides (GGSB - Grenoble Graduate School of Business - Grenoble Ecole de Management); Nicolas Berland (DRM - Dauphine Recherches en Management - CNRS : UMR7088 - Université Paris Dauphine - Paris IX) |
| Abstract: | Our paper addresses what the moral foundations of accounting are, regardless of capitalistic operations, as we are seeking to trace a genealogy of accounting thinking disconnected from coincidence with Capitalism. We demonstrate that the three monotheisms have bared the core of accounting. We purport to explicate how the three monotheisms (Judaism, Christianity divided into Roman Catholicism and Protestantisms, and Islam) have successively revealed the nature of accounting to moralise people's day-to-day conduct. Our approach to the revelation of accounting is informed with practice theory to study how accounting was used in believers' day-today activities and faith management. To this end, we read theological debates on accounting from Rabbinic, Islamic, Catholic and Protestant literatures raised at the time of the Reformation. Our study reveals that, in the four religions, bookkeeping serves as routine and rules to account for daily conduct, its content being contingent upon common understandings (viz. God's identity, capabilities and expectations) and teleoaffective structures (viz. definition of and ways to salvation). Through this paper, we demonstrate that accounting issues have always served as a sub-practice in moral practices and is therefore not necessarily coincidental with economic operations. Ultimately, we contribute to literature on the genesis of accounting, accounting as situated practice and accounting as moral practice.day-today activities and faith management. To this end, we read theological debates on accounting from Rabbinic, Islamic, Catholic and Protestant literatures raised at the time of the Reformation. Our study reveals that, in the four religions, bookkeeping serves as routine and rules to account for daily conduct, its content being contingent upon common understandings (viz. God's identity, capabilities and expectations) and teleoaffective structures (viz. definition of and ways to salvation). Through this paper, we demonstrate that accounting issues have always served as a sub-practice in moral practices and is therefore not necessarily coincidental with economic operations. Ultimately, we contribute to literature on the genesis of accounting, accounting as situated practice and accounting as moral practice. |
| Keywords: | religion, accounting, Catholicism, Protestantism, Judaism, Islam, Control as practice |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:hal:gemptp:hal-00477759_v1&r=hpe |
| By: | Frijters, Paul (University of Queensland); Barón, Juan D. (Banco de la República de Colombia) |
| Abstract: | Sacrifices to deities occur in nearly all known religions. In this paper, we report on our attempts to elicit this type of religious behaviour towards "Theoi" in the laboratory. The theory we test is that, when faced with uncertainty, individuals attempt to engage in a reciprocal contract with the source of uncertainty by sacrificing towards it. In our experiments, we create the situation whereby individuals face an uncertain economic payback due to "Theoi" and we allow participants to sacrifice towards this entity. Aggregate sacrifices amongst participants are over 30% of all takings, increase with the level of humanistic labelling of Theoi and decrease when participants share information or when the level of uncertainty is lower. The findings imply that under circumstances of high uncertainty people are willing to sacrifice large portions of their income even when this has no discernable effect on outcomes. |
| Keywords: | uncertainty, religion, sacrifice, experiment |
| JEL: | D8 Z12 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp4902&r=hpe |
| By: | Stefan Schirmer; Latika Chaudhary; Metin Cosgel; Jean-Luc Demonsant; Johan Fourie; Ewout Frankema; Giampaolo Garzarelli; John Luiz; Martine Mariotti; Grietjie Verhoef; Se Yan |
| Abstract: | This paper examines the state and scope of the study of economic history of developing regions, underlining the importance of knowledge of history for economic development. While the quality of the existing research on developing countries is impressive, the proportion of published research focusing on these regions is low. The dominance of economic history research on the North American and Western European success stories suggests we need a forum for future research that contributes to our understanding of how institutions, path dependency, technological change and evolutionary processes shape economic growth in the developing parts of the world. Many valuable data sets and historical episodes relating to developing regions remain unexplored, and many interesting questions unanswered. This is exciting. Economic historians and other academics interested in the economic past have an opportunity to work to begin to unlock the complex reasons for differences in development, the factors behind economic disasters and the dynamics driving emerging success stories. |
| JEL: | N01 |
| Date: | 2010–04 |
| URL: | http://d.repec.org/n?u=RePEc:acb:cbeeco:2010-517&r=hpe |
| By: | Cohen, Joseph N |
| Abstract: | The Frasier Institute’s Economic Freedom of the World is often taken as a metric of market capitalism. This paper argues that the index is an amalgam of measures capturing free markets and good governance, and analysts should remain cognizant of this conceptual conflation when using the index to develop policy prescriptions. Implicitly, the “economic freedom” literature suggests that countries embrace an “Anglo-Swiss” policy model, although the rich world offers alternative models that maximize good governance but not liberalization. Factor analyses suggest that the index’s Legal System & Property Rights component is more closely related to outside governance metrics that do not imply market liberalism than other “economic freedom” constituent measures. |
| Keywords: | Economic Freedom; Capitalism; Governance; Economic Policy; Economic Development |
| JEL: | O1 P5 P1 |
| Date: | 2009–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:22437&r=hpe |