nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2014‒11‒01
ten papers chosen by
Erik Thomson
University of Manitoba

  1. On Early Russian Reception Of Mikhail Bakhtin’s Work: The Case Of Vladimir Turbin, Or Staying At The “Boundary Of Silence” By Natalia M. Dolgorukova
  2. Finance and Crisis; Marxian, Institutionalist and Circuitist approaches By Georgios Argitis; Trevor Evans; Jo Michell; Jan Toporowski
  3. Comportement économique et structures sociales (d’André Nicolaï) ou l’entrepreneur et « son » système Economic behaviour and social structures (Andre Nicolaï): The entrepreneur and "his" system By Sophie BOUTILLIER; Dimitri UZUNIDIS
  4. The modern theory of regulation as an inheritance of De Viti de Marco’s Cooperative State By Alessandro Petretto
  5. UNITED STATES MONETARY POLICY IN THE POST-BRETTON WOODS ERA Did it cause the Crash of 2008? By Yanis Varoufakis
  6. On Repeated Games with Imperfect Public Monitoring: From Discrete to Continuous Time By Mathias Staudigl; Jan-Henrik Steg
  7. Do spinoff dynamics or agglomeration externalities drive industry clustering? A reappraisal of Steven Klepper’s work By Ron Boschma
  8. Postulat de la monnaie et théorie de la valeur chez Marx By Nicolas Piluso
  9. Did Science Cause the Industrial Revolution? By Cormac Ó Gráda
  10. Whose values? The Rise, Fragmentation and Marginalization of Collective Choice in Postwar Economics, 1940-1981 By Béatrice CHERRIER; Jean-Baptiste FLEURY

  1. By: Natalia M. Dolgorukova (National Research University Higher School of Economics)
    Abstract: The history of the Soviet reception of Mikhail Bakhtin’s heritage and ideas has not been written yet. The present working paper is a case study of works by Vladimir N. Turbin (1927—1993) who was one of the early Bakhtin’s followers in the USSR. The paper examines Turbin’s books (A Short While Before Aquarius, A Farewell to Epos) and his articles in different years (including published posthumously) related to Bakhtin, his life, theories, and ideas. The careful exploration of these works enables to explain why the proper reception of Bakhtin’s heritage in the USSR in the 1960-70s did not take place and why the book Turbin wanted to write about his teacher has not been written. Turbin’s case allows to argue that Bakhtin’s reception was not successful because of different nature as compared to all of his contemporaries and conversation partners.
    Keywords: Mikhail Bakhtin, Vladimir Turbin, history of reception, history of Russian thought and aesthetics.
    JEL: Z
    Date: 2014
  2. By: Georgios Argitis (University of Athens); Trevor Evans (Berlin School of Economics and Law); Jo Michell (University of the West of England); Jan Toporowski (School of Oriental and African Studies, London University)
    Abstract: Most mainstream neoclassical economists completely failed to anticipate the crisis which broke in 2007 and 2008. There is however a long tradition of economic analysis which emphasises how growth in a capitalist economy leads to an accumulation of tensions and results in periodic crises. This paper first reviews the work of Karl Marx who was one of the first writers to incorporate an analysis of periodic crisis in his analysis of capitalist accumulation. The paper then considers the approach of various subsequent Marxian writers, most of whom locate periodic cyclical crises within the framework of longer-term phases of capitalist development, the most recent of which is generally seen as having begun in the 1980s. The paper also looks at the analyses of Thorstein Veblen and Wesley Claire Mitchell, two US institutionalist economists who stressed the role of finance and its contribution to generating periodic crises, and the Italian Circuitist writers who stress the problematic challenge of ensuring that bank advances to productive enterprises can successfully be repaid.
    Keywords: Capitalism, finance, crisis
    JEL: B14 B15 B24 B25 E11 E32
  3. By: Sophie BOUTILLIER (Lab.RII, ULCO/Clersé-UMR8019, Université Lille Nord de France, RRI); Dimitri UZUNIDIS (Lab.RII, ULCO/Clersé-UMR8019, Université Lille Nord de France, RRI)
    Abstract: On ne naît pas entrepreneur, on le devient! La socialisation de l’individu est issue des rapports entre les deux catégories fondamentales de l’organisation sociale: les structures sociales et la famille. La personnalité se forme dans la prime enfance. L’acquis de l’individu conditionne sa place dans la société. Nicolaï a mis face à face et aussi a imbriqué les théories structuralistes des économistes avec la psychologie freudienne... Notre objectif est de reprendre, à partir de certaines théories de l’entrepreneur, sa conception de la socialisation pour présenter le comportement de l’entrepreneur. Ce déviant du système économique contribue à sa transformation et peut, toute chose égale par ailleurs, à sa durabilité. The socialization of the individual ensues from the relationship between the two basic categories of social organization: social structures and family. Personality is formed in early childhood. The achievement of the individual determines his place in society. A. Nicolai brought face to face and also nested structuralist theories of economists with Freudian psychology ... Using certain theories of the entrepreneur, our goal is to resume his conception of socialization in order to present the behavior of the entrepreneur. The entrepreneur is the deviant of the economic system who contributes to its transformation and, may all things being equal, to its sustainability..
    Keywords: entrepreneur, système économique, structures sociales
    JEL: L26 A13
    Date: 2014–05
  4. By: Alessandro Petretto (Dipartimento di Scienze per l'Economia e l'Impresa)
    Abstract: The aim of this article is to analyse the relationship between the thinking of a major public finance scholar in the Italian tradition, Antonio De Viti de Marco, and the foundations of the ‘new’ economic policy which, at the end of last century in most industrialised countries, generated a profound reorganization of markets, particularly those of Public Utilities (PU). Thus, we link the Monopolistic State (MS) and the Cooperative State (CS) configurations defined by De Viti with the views of state suggested by modern Political Economy theory. We argue that a pro-competitive PU regulation can be interpreted as a process of moving away from the main features of the MS to those of the CS. Finally, by following some of De Viti de Marco’s precise intuitions, we analyse the topic of enterprise ownership. In this exercise of economic analysis in retrospect we will not be looking at De Viti as a precursor, but we wish rather to emphasize the actuality of his main methodological approach to public finance.
    Keywords: De Viti de Marco, Cooperative State, regulation, privatization
    JEL: B31 D72 L51
    Date: 2014
  5. By: Yanis Varoufakis (Department of Economics, National and Kapodistrian University of Athens, and Lyndon B. Johnson School of Public Affairs, University of Texas at Austin.)
    Abstract: The Crash of 2008 is often blamed on the Fed’s overly ‘loose’ monetary policy after 2001 (see Taylor, 2009, 2010). In short, the argument goes, American monetary policy was too ‘loose’ for four years between 2002 and 2006; and too ‘tight’ once the Fed realised that it was presiding over an unsustainable boom. This paper argues that the causes of 2008 and its aftermath (i.e. the stuttering ‘recovery’ once financial markets were successfully stabilised) run much deeper than ‘suboptimal’ monetary policy by the Fed. It argues that, by the end of the 1970s, the Bretton Woods system had been replaced with a ‘brave new’ global surplus recycling mechanism in which Wall Street and the rest of the West’s large private banks featured prominently. These developments engendered a new form of ‘private money’ over which the Federal Reserve had decreasing control. Thus, if the Fed did indeed lose control over the effective money supply it lost it not because of any ‘deviation’ from Taylor-rule-based central banking but, rather, because of a major shift in the global role of finance. To understand why the Fed lost much of its influence over the aggregate money supply we first need to understand how this new form of private money had become an indispensible aspect of the aforementioned recycling mechanism. Wall Street’s generation of private money was, in fact, functional to the recycling of global surpluses upon which the ‘Great Moderation’ was founded. This put the Fed in an impossible dilemma: Should it re-assert its control over the effective money supply at the expense of ending the illusion of the Great Moderation? Or should it stick to Taylor-rule like central banking? This paper argues that the Fed opted for the latter. The paper is structured as follows. Sections 1 and 2 offer a non-technical analysis of the arguments outlined above. Section 3 turns to the post-2008 period and asks; Given that the official sector stabilised financial markets, why has recovery proved so tepid? The answer Section 3 provides is an extension of the analysis in Sections 1&2 regarding the true causes of the Fed’s loss of control over the effective money supply well before the Crash of 2008. Along the same lines, it presents a particular critique of the Fed’s Quantitative Easing policy. Section 4 concludes. In addition to its four main sections, the paper offers three analytical appendices. Appendix 1 presents empirical evidence of the Fed’s loss of control over the effective money supply. Appendix 2 supports these observations with a fully dynamic game theoretical analysis of the Fed’s conundrum during the 1980-2008 period. Lastly, Appendix 3 focuses on the unrealistic assumptions under which Quantitative Easing might spearhead recovery
    Keywords: Federal Reserve, Central Bank Games, Financial Crisis, Taylor Rule, Monetary Policy, Quantitative Easing
    JEL: C72 E42 E44 E51 E52 E58 F02 F33
  6. By: Mathias Staudigl (Center for Mathematical Economics, Bielefeld University); Jan-Henrik Steg (Center for Mathematical Economics, Bielefeld University)
    Abstract: Motivated by recent path-breaking contributions in the theory of repeated games in continuous time, this paper presents a family of discrete-time games which provides a consistent discrete-time approximation of the continuous-time limit game. Using probabilistic arguments, we prove that continuous-time games can be defined as the limit of a sequence of discrete-time games. Our convergence analysis reveals various intricacies of continuous-time games. First, we demonstrate the importance of correlated strategies in continuous-time. Second, we attach a precise meaning to the statement that a sequence of discrete-time games can be used to approximate a continuous-time game.
    Keywords: continuous-time game theory, stochastic optimal control, weak convergence
    Date: 2014–09
  7. By: Ron Boschma
    Abstract: Klepper’s theory of industry clustering based on organizational reproduction and inheritance through spinoffs challenged the Marshallian view on industry clustering. The paper provides an assessment of Klepper’s theoretical and empirical work on industry clustering. We explore how ‘new’ his spinoff theory on industry clustering was, and we investigate the impact of Klepper’s theory on the economic geography community. Klepper’s work has inspired especially very recent literature on regional branching that argues that new industries grow out of and recombine capabilities from local related industries. Finally, the paper discusses what questions on industry location are still left open or in need of more evidence in the context of Klepper’s theory.
    Keywords: Klepper, spinoff dynamics, agglomeration economies, Marshall, industry clustering, evolutionary economic geography
    JEL: B15 B52 O18 R11
    Date: 2014–09
  8. By: Nicolas Piluso (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - CNRS : UMR5044 - Université Toulouse le Mirail - Toulouse II - Université Paul Sabatier (UPS) - Toulouse III)
    Abstract: L'article tente de réévaluer la portée de la critique de Carlo Benetti au sujet de la théorie de la monnaie marxienne. Si effectivement il n'est pas possible de déduire logiquement la théorie de la monnaie de la théorie de la marchandise chez Marx, nous proposons de postuler la monnaie à l'intérieur même de la théorie de la valeur. Ce type de postulat serait fondamentalement différent du postulat keynésien de la monnaie qui conduit à rejeter la théorie de la valeur et de la répartition. Cette proposition de " postulat marxien de la monnaie " présente l'avantage de conserver les enseignements qu'apporte l'analyse marxienne de l'économie monétaire.
    Keywords: marchandise, monnaie, valeur, Etat, crise économique
    Date: 2014–01–01
  9. By: Cormac Ó Gráda (University College Dublin)
    Abstract: This paper reviews debates about the role of science and technology before and during the British Industrial Revolution.
    Keywords: economic history, science, human capital
    JEL: N13 O10 O30
    Date: 2014–10–07
  10. By: Béatrice CHERRIER (CREM CNRS UMR 6211, University of Caen Basse-Normandie, France); Jean-Baptiste FLEURY (THEMA, Université de Cergy-Pontoise)
    Date: 2014–05

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