|
on History and Philosophy of Economics |
| By: | Michel DE VROEY (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Pierre MALGRANGE (CEPREMAP) |
| Abstract: | According to Klein, KeynesÕs General Theory was crying out for empirical application. He set himself the task of implementing this extension. Our paper documents the different stages of his endeavor, focusing on his The Keynesian Revolution book, Journal of Political Economy article on aggregate demand theory, and his essay on the empirical foundations of Keynesian theory published in the Post-Keynesian Economics book edited by Kurihara. KleinÕs claim is that his empirical model (the Klein-Goldberger model) vindicates KeynesÕs theoretical insights, in particular the existence of involuntary unemployment. While praising Klein for having succeeded in making Keynesian theory empirical and dynamic, we argue that he paid a high price for this achievement. Klein and GoldbergerÕs model is less Keynesian than they claim. In particular, KleinÕs claim that it validates the existence of involuntary unemployment does not stand up to close scrutiny. |
| Date: | 2010–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2010019&r=hpe |
| By: | Luigi Guiso (European University Institute, EIEF, & CEPR); Paola Sapienza (Northwestern University, NBER, & CEPR); Luigi Zingales (University of Chicago, NBER, & CEPR) |
| Abstract: | This chapter reviews the recent debate about the role of social capital in economics. We argue that all the difficulties this concept has encountered in economics are due to a vague and excessively broad definition. For this reason, we restrict social capital to the set of values and beliefs that help cooperation—which for clarity we label civic capital. We argue that this definition differentiates social capital from human capital and satisfies the properties of the standard notion of capital. We then argue that civic capital can explain why differences in economic performance persist over centuries and discuss how the effect of civic capital can be distinguished empirically from other variables that affect economic performance and its persistence, including institutions and geography.. |
| Date: | 2010 |
| URL: | http://d.repec.org/n?u=RePEc:eie:wpaper:1005&r=hpe |
| By: | Robert H. Bates; Diego Pizano; Mauricio Carrizosa; Darrell Hueth |
| Abstract: | In the 1970’s there was a serious crisis in the world economy and a deep dissatisfaction with the state of economic theory. Between 1976 and 1979 Colombian economist Diego Pizano conducted a series of structured dialogues with some of the greatest economists of the second half of the 20th century, with the aim of discussing this situation. His project was supported from the outset by Professor Paul A. Samuelson from MIT. The result was a book on contemporary economic thought, which was published in spanish by the Fondo de Cultura Económica of México in 1980. In 2009 the English version of this book was published in New York (Jorge Pinto books). In December 18th, 2009, The Brookings Institution of Washington DC decided to organize the launch of this book, because they thought it helps to understand the current crisis and is useful in rethinking economic theories and policies. This document brings together the presentations made on that occasion. |
| Date: | 2010–05–09 |
| URL: | http://d.repec.org/n?u=RePEc:col:000089:007092&r=hpe |
| By: | Andrew Mearman (Department of Economics, University of the West of England) |
| Abstract: | This paper conducts a type of meta-analysis of a sample of commentaries on heterodox economics, also drawing on biological literature and other treatments of classification. The paper contrasts what might be called a ‘classical’ category with a ‘modern’ category and then analyses treatments of HE as a category. It is argued that though HE appears to be a complex object – and that authors recognise this – HE as a category is most often classical even though modern would appear more appropriate. That this is the case may reflect choices of levels of abstraction which in turn reflect instrumental purposes of influencing the reality of Economics. While arguments for the rejection of HE as a category are too strong, current treatments of HE are perhaps not careful enough in recognising its provisional and fluid nature. The paper considers these issues in turn. |
| Keywords: | heterodox economics, taxonomy, complexity, meta-analysis |
| JEL: | B4 B5 Z13 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:uwe:wpaper:1006&r=hpe |
| By: | Tisdell, Clem |
| Abstract: | Outlines how Clem Tisdell came to discover tourism economics and charts the basic route that he followed in developing that interest. This article is developed by first considering his early years (1939 to 1960), that is the period prior to his commencement of postgraduate studies at the Australian National University, then his postgraduate studies at the Australian National University (1961-1963), and his lecturing appointment at this university in the period 1964-1972. It was towards the end of this period that his research interests started to change significantly and provided a springboard for his later focus on tourism economics and the environment. It was during his appointment as Professor of Economics at the University of Newcastle (1972-1989) that his interest in tourism economics âtook-offâ and gathered momentum thanks initially to a research grant from the ASEAN-Australian Joint Research Project in 1982. His interest in this subject continued strongly after he joined The University of Queensland in 1989 and benefited from several research grants, including some from the CRC for Sustainable Tourism. He was appointed Professor Emeritus in this university in 2005 and continues to pursue his interest in tourism economics. Tisdell explains why he has found this interest to be exciting and of value. |
| Keywords: | China, ecological economics, economic development, environmental economics, India, nature-based tourism, sustainable tourism, tourism economics, wildlife conservation., Environmental Economics and Policy, Teaching/Communication/Extension/Profession, F18, L83, O10, Q5, |
| Date: | 2010–05 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseet:90631&r=hpe |
| By: | Schneider, Andrea (Helmut Schmidt University, Hamburg); Zimmermann, Klaus W. (Helmut Schmidt University, Hamburg) |
| Abstract: | Based on the premise that fairness is different from equity and that it is primarily used in in-formal contexts we present an economic approach to fairness. Discussing the results of behav-ioral economics reveals the experience that people do not accept a monetary offer even if that collides with the rationale that more money means higher utility. The economic aspects of fairness are discussed in two ways: first, Varian´s idea of envy-free allocations in a general-equilibrium context are exposed briefly, and second, we concentrate on the implications of fairness defined via producer and consumer rents. This in-depth exposition focuses on private as well as public goods and concludes with a comparative analysis of fairness in the private and public spheres. |
| Keywords: | fairness; welfare; private goods; public goods |
| JEL: | D63 H41 |
| Date: | 2010–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:ris:vhsuwp:2010_101&r=hpe |
| By: | Olav Bjerkholt (University of Oslo); Duo Qin (Queen Mary, University of London) |
| Abstract: | This paper is prepared for the forthcoming publication of Frisch's 1930 Yale lecture notes, <i>A Dynamic Approach to Economic Theory: The Yale Lectures of Ragnar Frisch</i> (details at: http://www.routledgeeconomics.com/books/A-Dynamic-Approach-to-Economic-Theory-isbn9780415564090). As the lecture series was given just as the Econometric Society was founded in 1930. We provide as background, a blow-by-blow story of how the Econometric Society got founded with emphasis on Frisch's role. We then outline how the Yale lecture notes came into being, closely connected to Frisch's econometric work at the time. We comment upon the lectures, relating them to Frisch's later works and, more important, to subsequent developments in economics and econometrics. |
| Keywords: | History of econometrics |
| JEL: | B23 |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:wp665&r=hpe |
| By: | Smith, John |
| Abstract: | Measures of preferences are primarily useful in that they are helpful in predicting behavior. We perform an experiment which demonstrates that the timing of the measurement of social preferences can affect such a measure. Researchers often measure social preferences by posing a series of dictator game allocation decisions; we use a particular technique, Social Value Orientation (SVO). We vary the order of the SVO measurement and a lager stakes dictator game. In our first study, we find that subjects with prosocial preferences act even more prosocially when the SVO measurement is administered first, whereas those with selfish preferences are unaffected by the order. In our second study we vary the order of the SVO measurement and a nonstandard dictator game. We do not find the effect found in the first study. This suggests that the effect found in the first study is driven by choices involving the size of surplus. |
| Keywords: | experimental economics; social values; dictator game; social value orientation |
| JEL: | D64 Z13 C91 |
| Date: | 2010–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23282&r=hpe |
| By: | Dunning , John; Pitelis, Christos |
| Abstract: | We discuss issues pertaining to the political economy of “globalization”, in the context of the seminal contribution by Stephen Hymer. While Hymer’s contribution to the theory of the multinational enterprise (MNE) and foreign direct investment (FDI) is widely recognized, his contribution to the political economy of what he called “multinational corporate capital” has received less attention. In this paper we revisit some of the issues he raised, notably uneven development, global governance and central planning in the context of post-Hymer scholarly thinking and the shifting global landscape. In so doing we also speculate on the challenges and future of globalization. |
| Keywords: | Stephen Hymer; International Political Economy; Institutions; Globalization;Sustainability |
| JEL: | F23 F02 F21 |
| Date: | 2009–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:23184&r=hpe |
| By: | Tisdell, Clem |
| Abstract: | This paper outlines the significance of the concept of conservation value and discusses ways in which it is determined paying attention to views stemming from utilitarian ethics and from deontological ethics. The importance of user costs in relation to economic decisions about the conservation and use of natural resources is emphasised. Particular attention is given to competing views about the importance of conserving natural resources in order to achieve economic sustainability. This then lends to a discussion of the value of conserving natural resources in order to meet the moral obligations of present generations to future generations. Anthropogenic views of the value of conserving natural resources (for example, derived from utilitarian ethics) are contrasted with views stressing mankindâs obligations to nature (ecocentric views). The latter are often based on deontological ethics. |
| Keywords: | anthropogenic values, conservation value, deontological ethics, ecocentric values, economic sustainability, intergenerational equity, natural resources, neo-Malthusianism, precautionary motive, sustainability, sustainable development, user costs, utilitarian ethics, Environmental Economics and Policy, Q01, Q20, Q30, Q50, Q51, |
| Date: | 2010–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:90879&r=hpe |