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on History and Philosophy of Economics |
| By: | Nisigandha Bhuyan (Indian Institute of Management Calcutta) |
| Abstract: | The economic system of capitalism thrives on two things: individuals’ freedom and private property rights. However, individual freedom as it has come to be understood by modern political and economic institutions is only limited to individual choice. If individual choice, in the name of freedom, is so promoted then social justice remains to be a highly distant idea. Social justice can be possible if only choice is morally reasoned and importance is given to what is chosen rather than self-gratifying individual choice. In other words, do economic and political systems allow room for philosophical deliberations, beyond ornamental, instinctive and/or idiosyncratic discussions. |
| Keywords: | ethics; capitalism; social justice; moral reasoning; individual freedom |
| JEL: | P16 A13 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3505742&r=hpe |
| By: | Jaelani, Aan |
| Abstract: | Economic behavior in the study of Islamic economics is the basis for the government to portray political ethics and ethical economic functions of individuals in functioning as a member of society. Secular ethics and religious ethics, according to al-Mawardi, as the code of conduct in conducting economic practices by the government and every member of society to uphold the principle of mashlahah (goodness). By the middle or moderate principles, both ethical underpinning for anyone in private and institutional (government) in carrying out economic activities to realize the happiness of the world and the hereafter |
| Keywords: | Philosophy of economics, behavioral economics, ethics, religion, Islamic Economic |
| JEL: | B31 B41 D01 D1 D6 H1 H5 N01 N25 N3 N35 |
| Date: | 2016–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70339&r=hpe |
| By: | Kene Boun My; Nicolas Lampach |
| Abstract: | This note highlights in a very simple way the result gained from eliciting a subject’s aversion to inequity when this works to their own advantage, in a modified dictator game related to the domains of gains and losses. Our result demonstrates that individuals experience a stronger reaction to inequity in the domain of losses than in the domain of gains. |
| Keywords: | inequity aversion, modified dictator game, laboratory experiment. |
| JEL: | C70 C91 D63 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2016-21&r=hpe |
| By: | Michel Grabisch (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics); Peter Sudhölter (University of Southern Denmark) |
| Abstract: | We generalize the characterizations of the positive core and the positive prekernel to TU games with precedence constraints and show that the positive core is characterized by non-emptiness (NE), boundedness (BOUND), covariance under strategic equivalence, closedness (CLOS), the reduced game property (RGP), the reconfirmation property (RCP) for suitably generalized Davis-Maschler reduced games, and the possibility of nondiscrimination. The bounded positive core, i.e., the union of all bounded faces of the positive core, is characterized similarly. Just RCP has to be replaced by a suitable weaker axiom, a weak version of CRGP (the converse RGP) has to be added, and CLOS can be deleted. For classical games the prenucleolus is the unique further solution that satisfies the axioms, but for games with precedence constraints it violates NE as well as the prekernel. The positive prekernel, however, is axiomatized by NE, anonymity, reasonableness, the weak RGP, CRGP, and weak unanimity for two-person games (WUTPG), and the bounded positive prekernel is axiomatized similarly by requiring WUTPG only for classical two-person games and adding BOUND. |
| Keywords: | TU games,restricted cooperation,game with precedence constraints,positive core,bounded core,positive prekernel,prenucleolus |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-01297600&r=hpe |
| By: | Yoshihara, Naoki (Department of Economics, University of Massachusetts, Amherst) |
| Abstract: | This report explores the development of exploitation theory in mathematical Marxian economics by reviewing the main controversies surrounding the proper definition of exploitation since the contribution of Okishio(1963). The report first examines the debates on the Fundamental Marxian Theorem and Class-Exploitation Correspondence Principle, developed mainly in the 1970s and 1980s, followed by the property relation theory of exploitation by Roemer (1982). Then, the more recent exploitation theory proposed by Vrousalis (2013) and Wright (2000) is introduced. Finally, the report introduces and comments on recent axiomatic studies of exploitation by focusing on the work of Veneziani and Yoshihara (2015a). |
| Keywords: | Proper Definitions of UE Exploitation, Property Relations Definition of Exploitation, Profit-Exploitation Correspondence Principle. |
| JEL: | D63 D51 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:ums:papers:2016-06&r=hpe |
| By: | Tsoulfidis, Lefteris |
| Abstract: | On the methodological plain, this paper outlines the conditions that contribute to the development of economic theories and it continues with an examination of the concrete circumstances that gave rise to modern neoclassical macroeconomic theories. The paper further claims that the current impasse in macroeconomics is indicative of the need for new directions in economic theory which becomes imperative in the long economic downturn that started in 2007 and concludes by suggesting the need for a synthesis between the classical analysis and the theory of effective demand. |
| Keywords: | classical approach, neoclassical theory, theory of value, effective demand, paradigm change. |
| JEL: | B10 B12 B13 B22 B41 |
| Date: | 2010–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70004&r=hpe |
| By: | Richard L. Nolan (Harvard Business School) |
| Abstract: | Homo sapiens has mastered its environment so thoroughly that, for the first time in history, a small minority of the population is capable of creating enough food and fuels to support not only itself, but a growing majority of the 6 billion people now living on earth. This unparalleled abundance is allowing our species to develop, distribute, and profit from innovation in nearly every corner of civilization. Now key elements of the modern world such as the speed and connectedness of digital communication, the dynamic movement of capital, and changing nature of political boundaries are propelling capitalism into a new form that can be characterized as "virtual capitalism." And global corporations in their size and global influence are leading the embodiment of virtual capitalism into the modern world. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:16-116&r=hpe |
| By: | Piekalkiewicz, Marcin |
| Abstract: | Are unhappiness, high concern for money and scarcity of social capital different faces of the same phenomenon? Economists tend to treat these variables as distinct correlates of well-being. On the contrary, positive psychologists argue that they all relate to materialism, a system of personal values ascribing great importance in life to extrinsic motivations and low priority to intrinsic motivations. Using data from two European cross-sectional surveys and the German Socio-Economic Panel, I test the hypothesis that material interests, proxied by the effects of individual and reference income on well-being, are associated with low levels of social capital. The results suggest that people with scarce social capital tend to have greater material interests, whereas the negative effect of income comparisons on well-being is eliminated for individuals exhibiting the highest levels of social capital. The implication of such finding is that promoting social capital reduces people's material concerns and has positive impact on their well-being. The results from a country-level analysis additionally show that, since social capital moderates the importance of income for well-being on individual level, the well-being gap between income groups is significantly smaller in countries with higher social capital. |
| Keywords: | subjective well-being,life satisfaction,social capital,materialism,relative income,social comparisons,happiness inequality |
| JEL: | D31 I31 Z13 |
| Date: | 2016–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:130185&r=hpe |
| By: | Jun, Bogang; Gerybadze, Alexander; Kim, Tai-Yoo |
| Abstract: | This study revisits the theory of Friedrich List from a more comprehensive and modernized perspective and applies it to the Korean history of industrialization. Although List is well known as the scholar who insisted on the protection of infant industry, his argument on protectionism is a part of the broader picture depicted in his book The National System of Political Economy (1841). This study follows his theoretical legacy in various fields of study. Although we can find his theoretical influence in several fields of research such as the national innovation system, concept of national competitiveness, and theory of developmental state, these studies fail to embrace all the arguments of List. Additionally, theses models focus more heavily on the explanation of historical and regional development phenomena without providing general principles of economic development behind the phenomena. This study therefore aims to suggest the expansive reproduction system as a generalized and modernized version of List's theory and to show its example by using the Korean history of industrialization. Consequently, we argue that the economic development of Korea has been achieved by putting the theory of List into practice. |
| Keywords: | Friedrich List,Economic Development,Korean Economic History,Economic Policy |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hohdps:022016&r=hpe |
| By: | Mario Capizzani; Luigi Mittone; Andrew Musau; Antonino Vaccaro |
| Abstract: | Anticipated verbal feedback in a dictator game has been shown to induce altruistic behavior. Xiao and Houser (2009), and Ellingsen and Johannesson (2007), find that when the allocator donates an amount to a recipient, and the recipient sends an anonymous written message after learning of the amount, donations are higher in relation to the standard (no-communication) condition. We experimentally investigate whether strategic considerations crowd out anticipatory effects of communication in an ultimatum game, and find that such effects still persist in the pres- ence of two-sided communication. |
| Keywords: | ultimatum game; anticipated communication; experiment |
| JEL: | C78 C91 D03 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpce:1602&r=hpe |
| By: | Mark van de Logt (Texas A&M University at Qatar) |
| Abstract: | In his 2015 encyclical Laudato Si’: On Care For Our Common Home, Pope Francis I confronted environmental issues and clarified the Roman Catholic Church’s position on global warming. In the United States, Laudato Si’, rattled conservative Americans who had falsely assumed that the Roman Catholic Church shared the conservative philosophy on the environment, property, and the economy. Perhaps more forcefully than his predecessors, John Paul II and Benedict XVI, Francis criticized the “sanctity of the free market,†the worship of property, the obsession with consumerism, the self-centered individualism that is too callous to care about the poor and underprivileged in the world, and the dismissive attitude that the environment is something that can be turned into profit without consequences and with the blessing of Christian “doctrine.†Ironically, Laudato Si’ also reaffirmed many conservative principles such as the legitimacy of property, the right of sovereign nations to conduct their own policies, the sanctity of life (including that of the unborn), the concern with scientific experiments on human embryos, and that he hails the work of scientists, engineers, and businesses when they work for the betterment of humanity. Despite outcries by certain conservatives that Francis’s encyclical is virtually a call on Catholics to vote for the Democratic Party in the next election, neither side can claim the Catholic Church as its natural ally. Indeed, the Church has always sailed an independent course. |
| Keywords: | American Politics, Pope Francis, Environment, Global Warming. |
| JEL: | Z12 Q58 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3505987&r=hpe |
| By: | George, Justine |
| Abstract: | Methodological understanding of the theory is as important as the theory itself, and must show the relationship between theoretical concepts used in the study and its expected conclusions. Measuring scientificity of each theory and then to categorie on the basis of its relative merit often difficult given available theories are concerned. However, theoretical contributions of Thomas Kuhn, Karl Popper and then Imre Lakatos are best to develop a framework to evaluate the progress of social science research. |
| Keywords: | Theory |
| JEL: | B40 B41 |
| Date: | 2016–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70513&r=hpe |
| By: | Bettina Klaus; Flip Klijn |
| Abstract: | We study the structure of the set of (Nash) equilibria of a deferred acceptance game with complete lists: for a given marriage market with complete lists, men propose to women truthfully while women can accept or reject proposals strategically throughout the deferred-acceptance algorithm. Zhou (1991) studied this game and showed that a matching that is stable with respect to the true preferences can be supported by some preference profile (possibly a non-equilibrium one) if and only if it can be supported by an equilibrium as well. In particular, this result implies the existence of equilibria since the men-optimal stable matching is supported by true preferences and hence an equilibrium outcome. We answer an open question Zhou posed by showing that there need not exist an equilibrium matching that weakly dominates all other equilibrium matchings from the women's point of view (Theorem 1). We complement Zhou's and our findings by showing that the set of equilibrium matchings also need not be "connected'" (Example 2). |
| Keywords: | Matching, stability, complete lists, Nash equilibria |
| JEL: | C72 C78 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:892&r=hpe |
| By: | Shepsle, Kenneth A. (Harvard University) |
| Abstract: | Douglass North is famous for, among other things, making institutions the centerpiece of studies of political economy. Institutions are, for him, the humanly constructed rules of the game, a game form in the language of game theory. An alternative conceptualization, associated with Schotter (1981) and Calvert (1995), and responsive to concerns articulated by Riker (1980), conceives of North’s game form as part of a more allencompassing equilibrium of rational human behavior. Whereas North takes the rules of the game as exogenous and seeks to identify the equilibria that arise when agents, abiding by the rules, bring particular preferences to a situation, what Shepsle (1979) called a structure-induced equilibrium, Schotter and Calvert allow for the possibility of noncompliance with extant rules and, indeed, for moves that alter the game form altogether. In the present paper, these two approaches are developed more fully. Examples drawn from the US Congress are used to exhibit the ways in which rules arise, change endogenously, and are sometimes even violated. Rational, self-governing agents are not, as in North’s formulation, absolutely bound by exogenous constraints, and are often able to reformulate the ways they do their business. |
| Keywords: | JEL Classification: |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:282&r=hpe |
| By: | Loreno Cecconi |
| Abstract: | In this paper we analyze the problem of the intensity and the diffusion times in the macroeconomic system of the measures of political economic by the Government, focusing on those indirect. We try to show how these effects and diffusion speedy depend crucially on the behaviour of economic agents which often act independently of each other looking for maximum personal gain. The conflicting nature of the capitalistic economic system does not allow us to make specific predictions about the effectiveness of such measures, as the Government has little capacity to control over the actions of private agents. So, nothing can be said before if the objectives that the Government is pursuing will be achieved. A typical example, is the use of instruments controlling the levels of environmental pollution, against which we nourish a latent skepticism. To show our caution, we use the concept of complex system composed of sub-systems connected to each other through relationship of a non-linear mathematical form which is often unknown. We also use the concept of synergetic and the principle of slow and fast variables (slaving principle). In particular, we also show that, when the evolution of a sub-system is logistical, it can give rise to the chaotic dynamics that may extend to other sub-systems and to the overall system. Our arguments are based also by the use of some models expressed, in most case, in the form of differential equations. |
| Keywords: | Government measures. Reaction coefficient. Speed of diffusion. Complex system and sub-systems. Interconnection between sub-systems and the principle of Synergetic. Slow and fast variables. Capitalistic structure and social conflict. Chaotic dynamics. Differential equation. Stability and instability of equilibrium points. Environmental pollution, carbon tax and subsidies |
| JEL: | H3 P1 C62 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:726&r=hpe |
| By: | Jermy, Amanda |
| Abstract: | The greater parts of the individuals who expound on morals don't make an unmistakable refinement in the middle of morals and profound quality. The topic of what is "correct" or "ethically right" or "morally right" or "ethically attractive" in any circumstance is differently stated, yet the greater part of the words and expressions are after the same thing: what act is "better" in a good or moral sense than some other demonstration? Individuals once in a while discuss profound quality as something individual however see morals as having more extensive social ramifications. Others consider profound quality to be the subject of a field of study, that field being morals. Morals would be profound quality as connected to any number of subjects, including journalistic morals, business morals, or the morals of experts, for example, specialists, lawyers, and bookkeepers. We will wander a meaning of morals, however for our motivations, morals and ethical quality will be utilized as comparable terms. |
| Keywords: | Corporate ethics; CSR; business ethics; sustainability |
| JEL: | O1 O11 O2 O3 O4 O44 |
| Date: | 2016–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:70601&r=hpe |
| By: | ,; Diewert, W. Erwin; Fox, Kevin J. |
| Abstract: | In this paper, Fox interviews Diewert on his academic career. His contributions to the development of flexible functional forms, superlative index numbers, the difference approach to index number theory, the measurement of waste, the user cost of capital, the measurement of Total Factor Productivity, the use of generalized concavity in economics, the measurement of financial sector outputs and inputs and the comparative statics of maximizing behavior are covered. His work on the development of international manuals on the Consumer Price Index, the Producer Price Index, on Property Prices and on the International Comparison of Prices is also noted. His pioneering work on the nonparametric of preferences and of technologies is also mentioned. |
| Keywords: | Flexible functional forms, superlative index numbers, measurement of waste, user cost of capital, Total Factor Productivity measurement, generalized c |
| JEL: | C23 C43 C51 C61 D12 D24 D90 E01 E31 E41 |
| Date: | 2016–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:ubc:pmicro:erwin_diewert-2016-6&r=hpe |
| By: | Ravi Kashyap |
| Abstract: | We look at a collection of conjectures with the unifying message that smaller social systems, tend to be less complex and can be aligned better, towards fulfilling their intended objectives. We touch upon a framework, referred to as the four pronged approach that can aid the analysis of social systems. The four prongs are: 1. The Uncertainty Principle of the Social Sciences 2. The Objectives of a Social System or the Responsibilities of the Players 3. The Need for Smaller Organizations 4. Redirecting Unintended Outcomes Smaller organizations mitigating the disruptive effects of corruption is discussed and also the need for organizations, whose objective is to foster the development of other smaller organizations. We consider a way of life, which is about respect for knowledge and a desire to seek it. Knowledge can help eradicate ignorance, but the accumulation of knowledge can lead to overconfidence. Hence it becomes important to instill an attitude that does not knowledge too seriously, along with the thirst for knowledge. All of this is important to create an environment that is conducive for smaller organizations and can be viewed as a natural extension of studies that fall under the wider category of understanding factors and policies aimed at increasing the welfare or well-being to society. |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1603.06034&r=hpe |
| By: | Somnath Ghosh (Indian Institute of Management Kashipur) |
| Abstract: | Social and ecological entrepreneurs take initiatives to set up social enterprises. Some endure, some do not; some reach a scale where questions of sustainability or replication become issues. This paper first seeks to explore if there are some common elements behind all the diverse initiatives. Drawing on primary as well secondary sources, this paper identifies four key elements. The first thing that emerges is a deep awareness bordering on engagement with some problematic aspect of social life in which the native is located. It is only then that the second element - what one may call “the churning within†– emerges. This is irrespective of clarity about the nature of change and the desired medium, but have such varying elements as values, restlessness, a missionary zeal to change, questioning life goals, leap of faith or the urge to put in action an executable idea. Interestingly, this “churning within†is quite different from the usually bandied about “passion†and “commitment†. The third element appears to be an alignment of the native’s chosen arena of work with her innate ability (aka KSA). But it is the fourth element - the native’s ability to attract and develop intermediate levels of leadership – that distinguishes whether a social enterprise will flower or remain diminutive, if not squelch. Once this stage is reached, the entrepreneurial organization has morphed into a business organization, even if the profit motivation is not the determining characteristic. |
| Keywords: | social and ecological entrepreneurs; social life; social entrepreneurs; intermediate leadership |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:3506151&r=hpe |
| By: | Di Girolamo, Amalia (University of Birmingham); Harrison, Glenn (Georgia State University, CEAR); Lau, Morten (Copenhagen Business School); Swarthout, J. Todd (Georgia State University) |
| Abstract: | We characterize the literacy of an individual in a domain by their elicited subjective belief distribution over the possible responses to a question posed in that domain. By eliciting the distribution, rather than just the answers to true/false or multiple choice questions, we can directly measure the confidence that an individual has about their knowledge of some fact. We consider literacy across several financial and economic domains. We find considerable demographic heterogeneity in the degree of literacy. We also measure the degree of consistency within a sample about their knowledge, even when that knowledge is imperfect. |
| Keywords: | subjective beliefs, economic literacy |
| JEL: | C91 D03 D83 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9856&r=hpe |
| By: | Fernandez-Villaverde, Jesus |
| Abstract: | This paper surveys the legal tradition that links Magna Carta with the modern concepts of the rule of law and the limits on government. It documents that the original understanding of the rule of law included substantive commitments to individual freedom and limited government. Then, it attempts at explaining how and why such commitments were lost to a formalist interpretation of the rule of law from 1848 to 1939. The paper concludes by arguing how a revival of the substantive commitments of the rule of law is central in a project of reshaping modern states. |
| Keywords: | Rule of Law, Magna Carta, Legal Theory, Limited Government. |
| JEL: | D78 K10 N43 N73 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:69862&r=hpe |
| By: | Geoffrey T. F Brooke (School of Economics, Auckland University of Technology, NZ); Anthony M. Endres (School of Economics, Auckland University of Technology, NZ); Alan J. Rogers (Department of Economics, Faculty of Business and Law, Auckland University of Technology) |
| Abstract: | We examine the history of economic thought on trade policy in New Zealand from the 1920s to the early 1980s. The focus is upon the different doctrinal perspectives taken by academic economists in New Zealand. Throughout the period under review policymakers supported an inward-looking trade and development regime buttressed by extensive interventionist trade policy. Appeals to the employment argument for industrialization through import substitution lent their policies a veneer of economic respectability. Most economists were not persuaded; they railed against quantitative import controls, discriminatory tariffs and cumbersome export incentive schemes and they offered, in vain, some constructive alternatives relying on price signals rather than administrative rules. One of our main findings is that most of the early work exposited here anticipated the rent seeking explanation for the configuration of trade policy. |
| Keywords: | Trade Policy, Industrial Policy, Economic Thought, Rent Seeking |
| JEL: | B20 F13 N77 |
| Date: | 2015–08 |
| URL: | http://d.repec.org/n?u=RePEc:aut:wpaper:201508&r=hpe |
| By: | Anand, Paul (The Open University); Roope, Laurence (University of Oxford); Peichl, Andreas (ZEW Mannheim) |
| Abstract: | In recent years considerable interest has developed in going 'beyond GDP' to develop measures of economic progress which are more explicitly based on human wellbeing. This work has been inspired, in part, by Sen's non-utilitarian approach to welfare economics, but has been constrained by a lack of empirical indicators relating to human potential. In this paper, therefore, we develop a framework for understanding wellbeing, drawing closely on Sen's seminal contributions to welfare economics, as well as the economic literature on life satisfaction, and use it to generate novel data for the USA and UK consistent with all the components of the theory. We use these data to illustrate some of the life quality analyses that might follow. Specifically, we investigate how various indicators of capability are distributed by ethnicity and gender, and compare and contrast the types of capability which appear relatively strong/weak within each country. In addition, we consider the extent to which life satisfaction and daily activities depend on resources and non-cognitive skills. The paper concludes that with an expansion of the scope of routinely collected survey data, it is feasible to empirically implement fully Sen's theory to provide a much richer account of the wellbeing outcomes that derive from economic progress than is currently the case. |
| Keywords: | wellbeing, stochastic dominance, life satisfaction, Sen |
| JEL: | D60 I31 |
| Date: | 2016–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9840&r=hpe |
| By: | Paulin Ibanda Kabaka (UPPA - Université de Pau et des Pays de l'Adour, LAM - Les Afriques dans le monde - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | L'Etat a un rôle important à jouer pour prévenir les crises et pour relancer les économies après des catastrophes financières à l'instar de la crise des subprimes, bref l'Etat a le rôle de réguler l'économie et veiller au bon fonctionnement des mécanismes de l'économie du marché. |
| Keywords: | Rôle de l'Etat, intervention économique, régulation,économie, Etat, politique économique,stabilisation,interventionnisme,crise financière,Keynes,redistribution,milton friedman |
| Date: | 2016–03–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01287474&r=hpe |
| By: | Orsola Costantini (Institute for New Economic Thinking) |
| Abstract: | This paper traces the evolution of the concept of the cyclically adjusted budget from the 1930s to the present. The idea of balancing the budget over the cycle was first conceived in Sweden in the 1930s by the economists of the Stockholm School and was soon reinterpreted and incorporated into the fiscal program of the American political coalition supporting the New Deal, especially by the Committee for Economic Development during and after World War II. In the 1960s, Keynesian economists associated with the Kennedy and Johnson administrations reformulated the notion. Despite their claims at the time, their version differed only in degree from the earlier CED approach, the transformation being largely conditioned by changing political circumstances. In the 1980s, however, the concept changed substantially. Methods for calculating it transformed dramatically, as the notion became a device to limit and direct governments' fiscal policies in a wide sense, that is, including institutional (or “structural†) reforms. The final section of the paper considers the shifting uses of the notion in the European Growth and Stability Pact. |
| Keywords: | Macroeconomics, Fiscal policy, Cyclically Adjusted Budget, EU, Keynesian Economics, History of Economic Thought, Economic History |
| JEL: | B2 C1 E12 E13 E62 H62 H68 N1 N12 N14 |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:24&r=hpe |
| By: | Luiz Carlos Bresser-Pereira; Fernando Rugitsky |
| Abstract: | The aim of the present paper is to put in historical perspective the development thinking on the relationship between industrial and exchange rate policies. The first section focuses on the thought of the so-called pioneers of development economics, specifically their preference for protectionism and their belated recognition that an exchange-rate policy could act as a substitute to it. In the second one, we analyze the exchange rate skepticism that arises out of the theories that identify a foreign constraint to growth, in addition to the one revealed by the pioneers. The third section briefly complements the previous discussion with reference to macroeconomic formulations that allow for short-run contractionary effects of a devaluation, reinforcing the skepticism in question. In the fourth section, we discuss the revival of development thinking in the 1980s and its discussion about East Asian trajectories, a literature that placed great emphasis on industrial policy. Finally, in the fifth section we discuss the new historical facts and the new development macroeconomics’ models that are putting an end to exchange rate skepticism. |
| Keywords: | exchange rate; industrial policy; protectionism; East Asian countries. |
| JEL: | B20 O24 O25 |
| Date: | 2016–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2016wpecon8&r=hpe |
| By: | Cédric Poivret (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12) |
| Abstract: | Il s'agit ici du cours que j'ai la chance d'assurer depuis le mois de septembre 2015 à l'Université de Marne La Vallée, pour les Licence 3. Cet enseignement m'a permis de jeter les bases de mon programme de recherche pour les prochaines années, programme qui consiste à montrer l'emergence progressive de la gestion comme domaine de savoir depuis l'invention de l'imprimerie, et ce en France. Ce cours se distingue grandement des traditionnels cours de théorie de organisation, entre autre raison car il se centre clairement sur un espace géographie précis, la France, et refuse l'hypothèse, implicite en théorie des organisations, de la naissance de la gestion avec Taylor et Fayol : les deux premiers cours sont ainsi consacrés à la pensée sous l'ancien régime et au XIXième siècle, montrant qu'il existait quelque chose avant Taylor et Fayol.... même si le troisième cours montrera le poids important de ces fondateurs, tout en charchant à les remettre dans le contexte qui les a vu naître, à savoir la second révolution industrielle. |
| Keywords: | Adolphe Guilbault , Frederick Taylor, jacques Savary,Histoire de la pensée managériale, Henri Fayol, Jean Gustave Courcelle-Seneuil |
| Date: | 2015–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:cel-01267486&r=hpe |
| By: | Natalia BORZINO (University of East Anglia); Enrique FATAS (University of East Anglia); Emmanuel PETERLE (CRESE EA3190 Univ. Bourgogne Franche-Comté) |
| Abstract: | We conduct a controlled laboratory experiment to investigate trust and trustworthiness in a networked investment game in which two senders interact with a receiver. We investigate to what extent senders and receivers comply with an exogenous and non-binding recommendation. We also manipulate the level of information available to senders regarding receiver’s behavior in the network. We compare a baseline treatment in which senders are only informed about the actions and outcomes of their own investment games to two information treatments. In the reputation treatment, senders receive ex ante information regarding the average amount returned by the receiver in the previous period. In the transparency treatment, each sender receives ex post additional information regarding the returning decision of the receiver to the other sender in the network. Across all treatments and for both senders and receivers, the non-binding rule has a significant and positive impact on individual decisions. Providing senders with additional information regarding receiver’s behavior affects trust at the individual level, but leads to mixed results at the aggregate level. Our findings suggest that reputation building, as well as allowing for social comparison could be efficient ways for receivers to improve trust within networks. |
| Keywords: | Experimental economics, Taxation, Trust, Information, Investment game. |
| JEL: | C72 C91 D03 H26 |
| Date: | 2016–04 |
| URL: | http://d.repec.org/n?u=RePEc:crb:wpaper:2016-04&r=hpe |
| By: | Pierre DELFAUD |
| Abstract: | Now that agricultural surpluses, after the removal of quantitative restrictions put into effect thirty years ago, are beginning to reappear, it is an opportune moment to revisit the history of the Common Agricultural Policy. This policy in effect constituted a unique experiment which can only be understood, as in any policy of intervention in market economies, through the combination of three concepts: economic rationality, social acceptability and institutional capability. This can be verified throughout the sixty years of the CAP’s existence, from its formulation (1955-1962) to its establishment with successive readjustments (1962-1992) through to the gradual dismantling (1992-2015). We are thus faced with two models: firstly the policy of price regulation, secondly competition policy compensation. |
| Keywords: | History of Europe, agricultural policy, interventionism, price regulation, competition policy |
| JEL: | N54 Q13 Q18 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:grt:wpegrt:2016-09&r=hpe |
| By: | Lance Taylor (New School for Social Research) |
| Abstract: | The Cambridge UK vs USA capital theory debates of the 1960s showed that the workhorse mainstream growth model relies on unsustainable assumptions. Its standard interpretation is not consistent with the last four decades of data. Part of an estimated increase in the ratio of personal wealth to income in recent years is due to higher asset prices. The other side of the accounts reveals that financialization and growing business debt partially offset the greater net worth of households. Attempts to interpret growth in wealth principally as a consequence of capitalization of rents are misleading. An alternative growth model based on Cambridge ideas can help correct these misinterpretations. |
| Keywords: | Income distribution, wealth distribution, Cambridge controversies |
| JEL: | D3 E1 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:32&r=hpe |