nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2014‒10‒17
nine papers chosen by
Erik Thomson
University of Manitoba

  1. A Model of Modeling By Itzhak Gilboa; Andrew Postlewaite; Larry Samuelson; David Schmeidler
  2. The Emperor Has New Clothes: Empirical Tests of Mainstream Theories of Economic Growth By David Greasley; Nick Hanley; Eoin McLaughlin; Les Oxley
  3. Inflation Targets Reconsidered: Comments on Paul Krugman By Guido Tabellini
  4. The Economic Theory of the Consumer Creation Date: 1994 By K.W. Clements; S. Selvanathan; E.A. Selvanathan
  5. Financial contagion and market intervention in the 1772-3 credit crisis By Paul Kosmetatos
  6. Introduction to Internally Consistent Modeling, Aggregation, Inference, and Policy By James J. Heckman; Apostolos Serletis
  7. Is There an Economic System in the Nature? Results of a Hedonic Approach Including a Vision to Explain and Meet Problems of Human Societies By Helmut MAIER
  8. Does the Longrun in Economics Matter? A Timely Approach to the Present and Future. The 1993 Shann Memorial Lecture Creation Date: 1993 By G. Snooks
  9. Adam Smith on Capital Accumulation: An economic growth Creation Date: 1984 By R.N. Ghosh

  1. By: Itzhak Gilboa (Tel-Aviv University; HEC, Paris; Cowles Foundation, Yale University); Andrew Postlewaite (Dept. of Economics, University of Pennsylvania); Larry Samuelson (Cowles Foundation, Yale University); David Schmeidler
    Abstract: We propose a formal model of scientific modeling, geared to applications of decision theory and game theory. The model highlights the freedom that modelers have in conceptualizing social phenomena using general paradigms in these fields. It may shed some light on the distinctions between (i) refutation of a theory and a paradigm, (ii) notions of rationality, (iii) modes of application of decision models, and (iv) roles of economics as an academic discipline. Moreover, the model suggests that all four distinctions have some common features that are captured by the model.
    Keywords: Methodology, Models, Economic modeling
    JEL: B40 B41
    Date: 2014–09
  2. By: David Greasley (School of History, Classics and Archaeology, University of Edinburgh); Nick Hanley (School of Geography and Sustainable Development, University of St. Andrews); Eoin McLaughlin (School of Geography and Sustainable Development, University of St. Andrews); Les Oxley (Department of Economics, University of Waikato)
    Abstract: Modern macroeconomic theory utilises optimal control techniques to model the maximisation of individual well-being using a lifetime utility function. Agents face choices over current and future consumption (with resultant implied savings decisions) seeking to maximise the present value of current plus future well-being. However, such inter-temporal welfare- maximising assumptions remain empirically untested. In the work presented here we test whether welfare was in (historical) fact maximised in the US between 1870 -2000 and find empirical support for the optimising basis of growth theory, but only once a comprehensive view of what constitutes a country’s wealth or capital is taken into account.
    Keywords: inter-temporal utility maximisation;modern growth theory; US; comprehensive wealth
    JEL: E21 E22 C61
    Date: 2014–08
  3. By: Guido Tabellini
    Abstract: Paul Krugman has written a very timely paper. It discusses an old issue, that has become very relevant again. My comments address two questions. First, should inflation targeting be reconsidered? Here my answer is a clear and resounding yes. Inflation targeting performed very well in the fight against inflation and in stabilizing inflation expectations. But now, even leaving issues of financial stability aside, monetary policy is faced with different challenges. Second, which features of the inflation targeting framework should be changed? Here I argue that other aspects of the framework are more important than the numerical value of the target. In addressing these questions, I review Paul Krugman’s arguments, agreeing with many but not all of them.
    Date: 2014
  4. By: K.W. Clements; S. Selvanathan; E.A. Selvanathan
  5. By: Paul Kosmetatos (Darwin College, Cambridge)
    Abstract: The 1772-3 credit crisis impressed its contemporaries for its suddenness, geographical range, and for arising during a time of relative peace and robust economic growth. It also arguably displayed an early instance of a Lender of Last Resort (LLR) in action, some thirty years before the classical articulation of the concept. This paper investigates whether financial contagion was at work in 1772-3, and describes its possible routes of transmission. It furthermore identifies the agents of market intervention, and discusses whether theirs was a conscious policy to limit systemic risk, or ad hoc improvisation in response to other considerations.
    Keywords: Monetary economics, Financial markets and institutions, Financial crises
    JEL: B12 E58 G01 N13 N23
  6. By: James J. Heckman; Apostolos Serletis (University of Calgary)
    Abstract: This special issue of the Journal of Econometrics honorsWilliam A. BarnettÂ’s exceptional contributions to unifying economic theory with rigorous statistical inference to interpret economic data and inform public policy. It is devoted to papers that advance microeconometrics, macroeconometrics, and fiÂ…nancial econometrics to build models to interpret evidence.
    Date: 2014–09–29
  7. By: Helmut MAIER
  8. By: G. Snooks
  9. By: R.N. Ghosh

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