nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2019‒04‒01
fifteen papers chosen by
Erik Thomson
University of Manitoba

  1. Preface to the Chinese Edition of A History of Macroeconomics from Keynes to Lucas and Beyond By Michel De Vroey
  2. Moral Pluralism in Behavioural Spillovers: A cross-disciplinary account of the multiple ways in which we engage in moral valuing By Vincent, Michael; Koessler, Ann-Kathrin
  3. Réactions des managers SI face aux pratiques institutionnalisées By Sofianne Messaoudi Escarabajal; Régis Meissonier; Claudio Vitari
  4. An overview of German new economic sociology and the contribution of the Max Planck Institute for the Study of Societies By Wilkinson, John
  5. Willingness to Take Risk: The Role of Risk Conception and Optimism By Thomas Dohmen; Simone Quercia; Jana Willrodt
  6. Die Wirkmacht der 'Liebe zum Markt'. Zum anhaltenden Einfluss ordoliberaler OekonomInnen-Netzwerke in Politik und Gesellschaft (The 'love for markets'. On the persistent political and societal impact of networks of ordoliberal economists) By Stephan Puehringer; Walter Oetsch
  7. Partial Norms By D'Adda, Giovanna; Dufwenberg, Martin; Passarelli, Francesco; Tabellini, Guido
  8. Designing Call Auction Institutions to Eliminate Price Bubbles: Is English Dutch the Best? By Cary Deck; Maroš Servátka; Steven Tucker
  9. Selfless ignorance: Too good to be true By Moradi, Homayoon
  10. Corruption in Tax and Taxing the Corruption By Pazhanisamy, R.
  11. Why Does Hirschmanian Development Remain Mired on the Margins? Because Implementation (and Reform) Really is 'a Long Voyage of Discovery' By Michael Woolcock
  12. The Economics of Social Data By Dirk Bergemann; Alessandro Bonatti
  13. Del Modelo de Industrialización por Sustitución de Importaciones (ISI) al Modelo Aperturista, adoptado en Colombia en 1991 By Hernando Hernández Lasso
  14. Machine Learning Methods Economists Should Know About By Susan Athey; Guido Imbens
  15. The Limits of p-Hacking : A Thought Experiment By Andrew Y. Chen

  1. By: Michel De Vroey (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))
    Abstract: In this preface, I reflect on the evolution of macroeconomics in the wake of the 2018 recession. I give a sketch of the developments that have taken place and assess the validity of some of the main criticisms that have been addressed to DSGE macroeconomics
    Keywords: History of macroeconomics, 2008 recession, DSGE macroeconomics, RBC model, New Keynesian model
    JEL: B22 E12 E E30
    Date: 2019–01
  2. By: Vincent, Michael; Koessler, Ann-Kathrin
    Abstract: In this article, we reflect critically on how moral actions are categorised in some recent studies on moral spillovers. Based on classic concepts from moral philosophy, we present a framework to categorise moral actions. We argue that with a finer classification of the moral values, associated behaviour is better understood, and this understanding helps to identify the conditions under which moral licensing takes place. We illustrate our argument with examples from the literature on pro-environmental behaviours. Moral spillovers are frequently studied in this behavioural domain and to understand what causes their occurrence is highly (policy) relevant if we wish to promote sustainable behaviour.
    Keywords: moral values,moral licensing,pro-environmental behavior,behavioral spillover,value pluralism
    Date: 2019
  3. By: Sofianne Messaoudi Escarabajal (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Régis Meissonier (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UM3 - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School - UM - Université de Montpellier); Claudio Vitari (MTS - Management Technologique et Strategique - Grenoble École de Management (GEM))
    Abstract: Pour les chercheurs du courant néo-institutionnaliste, les institutions sont soumises à de nombreuses pressions issus de l'espace social, ou champ institutionnel, dans lequel elles baignent. Dans ce champ institutionnel, où se produisent des interactions sociales qui le densifie, l'institution se construit pour être considérée comme la plus légitime possible : par la soumission aux pressions institutionnelles, l'adoption de pratiques institutionnalisées, l'assimilation d'habitudes isomorphiques, de rituels ou d'artefacts, elle s'assure une longévité et un accès aux ressources. Ces pressions institutionnelles, issus du champ social, s'applique également à leurs constituants. Ces constituants, managers de l'institution, sont soumis à ces mêmes pressions. De l'attitude des managers SI, de leurs réactions comportementales face aux normes métier et aux pressions institutionnelles, dépendent leur capacité à mettre en oeuvre une Technologie de l'Information (TI), répondant aux besoins des utilisateurs comme à l'efficience, et non pas aux habitudes ou pratiques du champ institutionnel. Dès lors, une question se pose : Comment ces managers, et plus particulièrement ceux en SI (Système d'Information) réagissent-ils face aux pratiques institutionnalisées ? Adoptent-ils une attitude de conformité et de soumission ou s'opposent-ils à ses pressions ? Entre pressions institutionnelles, habitudes isomorphiques et « best practices » de leur métier, quelles peuvent être leurs différentes réactions ? La prise de conscience par les managers SI des pressions institutionnelles, et des pratiques institutionnalisées intégrées, et utilisées par l'institution, pourraient leur permettre une réflexion quant à la nécessité des solutions institutionnelles déployées, des réactions différentes face aux solutions nouvelles et un regard critique sur les normes qu'ils sont amenés à utiliser, parfois plus par habitude que par réel besoin de gestion. Quelques articles de la littérature académique ont étudié les réactions des chefs en projet en SI face aux pratiques institutionnalisées. Certains auteurs, comme Oliver (1991) ont analysé la cognition et les réactions des professionnels des SI face aux pressions normatives de leur profession, et la prise de décision dans le projet et face aux pressions et aux habitudes institutionnelles. Par cette recherche, dans un contexte original, nous souhaitons contribuer aux analyses des réactions des managers SI dans l'organisation institutionnalisée.
    Keywords: Systèmes d’Information,réactions des managers SI,Théorie Néo-institutionnelle,pratiques institutionnalisées,légitimité de l’institution
    Date: 2018–12–12
  4. By: Wilkinson, John
    Abstract: New economic sociology (NES) in Germany has many similarities with economic sociology in the United States in its conscious efforts to institutionalize its presence within the broader sociology community, its promotion of a canon via handbooks, and its focus on the sociology of markets. At the same time, it differs in its stronger connections to the German classics, the greater vitality of a macrosociological tradition in Germany, the prior existence of a "bridging" generation of economic sociologists, and its later consolidation in a period of neo-liberal globalization, all of which have given NES in the German-speaking world a distinctive character. In addition, it has been influenced by successive waves of French economic sociology - Bourdieu, convention, and actor-network theory - and its bilingual academic tradition has ensured its integration into English-speaking NES. In its contribution to the sociology of markets, the fact that NES emerged later in Germany than in the US led to a greater concern with quality markets rather than commodity markets, and a concomitantly greater attention to issues of value and price. These latter themes, in their turn, establish a continuity with German economic sociology's enduring concern with understanding the role of money. Not surprisingly, therefore, German NES is now making key contributions to discussions on the sociology of money and is increasingly situating its analysis within the broader dynamic of capitalism and current processes of financialization.
    Keywords: German economic sociology,Max Planck Institute for the Study of Societies and economic sociology,new economic sociology,deutsche Wirtschaftssoziologie,Max-Planck-Institut für Gesellschaftsforschung und Wirtschaftssoziologie,Neue Wirtschaftssoziologie
    Date: 2019
  5. By: Thomas Dohmen; Simone Quercia; Jana Willrodt
    Abstract: We show that the disposition to focus on favorable or unfavorable outcomes of risky situations affects willingness to take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is strongly associated with optimism, a stable facet of personality, and that it predicts real-life risk taking. The general risk question captures this disposition alongside pure risk preference. This likely contributes to the predictive power of the general risk question across domains. Our results also rationalize why risk taking is related to optimism.
    Keywords: Risk taking behavior,optimism,preference measure,risk conception
    JEL: D91 C91 D81 D01
    Date: 2019
  6. By: Stephan Puehringer (Institute for Comprehensive Analysis of the Economy, Johannes Kepler University Linz, Austria); Walter Oetsch (Cusanus Hochschule Bernkastel-Kues, Germany)
    Abstract: In this paper we aim to contribute to the current debate on the impact of ordoliberal thought in economic policy debates in Germany. Our approach is twofold: On the one hand we examine the market fundamental logic of early ordoliberal scholars. On the other hand we apply a social network analysis and highlight the ongoing political and public impact of ordoliberal economists until today.
    Keywords: ordoliberalism, market fundamentalism, social network analysis, social studies of economics, performativity of economic thought
    Date: 2019–03
  7. By: D'Adda, Giovanna; Dufwenberg, Martin; Passarelli, Francesco; Tabellini, Guido
    Abstract: We consider an expanded notion of social norms that render them belief-dependent and partial, formulate a series of related testable predictions, and design an experiment based on a variant of the dictator game that tests for empirical relevance. Main results: Normative beliefs influence generosity, as predicted. Degree of partiality leads to more dispersion in giving behavior, as predicted.
    Keywords: Consensus; Experiment; normative expectations; partial norms; Social norms
    JEL: C91 D91
    Date: 2019–03
  8. By: Cary Deck (University of Alabama and Chapman University); Maroš Servátka (Macquarie Graduate School of Management and University of Economics in Bratislava); Steven Tucker (University of Waikato)
    Abstract: The bubble and burst pattern in asset market experiments is among the most replicable results in experimental economics. Numerous studies have searched for means to reduce this mispricing. Using controlled laboratory experiments, we compare mispricing in standard double auction markets to prices in two clock auctions. The double Dutch auction, shown to be more efficient than the double auction in commodity market experiments, does not eliminate bubbles. However, the English Dutch auction does yield prices reflective of underlying fundamentals and succeeds in taming bubbles even with inexperienced traders in the common declining fundamental value environment.
    Keywords: Asset Markets, Experimental Economics, Institutional Design
    JEL: C91 D02 D14 G12
    Date: 2019
  9. By: Moradi, Homayoon
    Abstract: We use a range of dictator game experiments to investigate whether people avoid information altruistically. After learning about a product with positive externalities, a consumer may avoid learning the cost of the product so that she does not hesitate to act altruistically. We find that although a few altruistic people avoid information about their own costs, this does not change the overall rate of altruistic behavior. The result suggests that although concealing costs upfront might make a few people let go of learning them, it does not increase the rate of altruistic behavior.
    Keywords: Pro-social behavior,Self-Image,Information Avoidance,Moral Wiggle Room
    JEL: C91 D64 D83 D01
    Date: 2018
  10. By: Pazhanisamy, R.
    Abstract: Most of the countries in the world face corruption and struggling against to it in many aspects. Due to various loopholes and institutional inefficiencies it continues to be pressing issues which affects public in various dimensions. The long existence of corruption around the world made an illusion to the policy makers and public as it is unavoidable and adjustable. This creates an intuition to esquire into what makes the corruption market successful all over the world for many centuries and what Economic theory is operate behind it. In this paper an inquiry is made into how the corruption market works effectively without any intervention. It also explore the possibility of the Ronald Coase theory’s to control the corruption and justifies what intervention is needed to achieve optimal amount of corruption. It concludes that to achieve the optimal amount of corruption in the society all farms of corruptions has to be internalized by introducing a permit and tax for corruption.
    Keywords: Corruption in Tax,taxing the Corruption,Coase theorem and tax,tax evasion,breaking the tax evasion using Coase theorem,internalizing the externalize of corruption
    JEL: B21 B41 D03 G02 G18 G28 H26 I38
    Date: 2019
  11. By: Michael Woolcock (Center for International Development at Harvard University)
    Abstract: A defining task of development is enhancing a state’s capability for policy implementation. In most low- income countries, alas, such capabilities seem to be stagnant or declining, in no small part because dominant reform strategies are ill-suited to addressing complex non-technical aspects. This has been recognized for at least six decades – indeed, it was a centerpiece of Albert Hirschman’s understanding of the development process – yet this critique, and the significance of its implications, remain on the margins of scholarship and policy. Why? I consider three options, concluding that, paradoxically, followers of Hirschman’s approach inadequately appreciated that gaining more operational traction for their approach was itself a type of problem requiring their ideas to embark on ‘a long voyage of discovery’, a task best accomplished, in this instance, by building – and tapping into the distinctive insights of – a diverse community of development practitioners.
    Keywords: Economic Development
    Date: 2019–02
  12. By: Dirk Bergemann (Cowles Foundation, Yale University); Alessandro Bonatti (MIT)
    Abstract: Large internet platforms collect data from individual users in almost every interaction on the internet. Whenever an individual browses a news website, searches for a medical term or for a travel recommendation, or simply checks the weather forecast on an app, that individual generates data. A central feature of the data collected from the individuals is its social aspect. Namely, the data captured from an individual user is not only informative about this speci?c individual, but also about users in some metric similar to the individual. Thus, the individual data is really social data. The social nature of the data generates an informational externality that we investigate in this note.
    Keywords: Individual Data, Social Data, Informational Externality, Internet Platforms, Data Collection, Data Markup
    JEL: D80 D82 D83
    Date: 2019–03
  13. By: Hernando Hernández Lasso
    Abstract: Este documento busca responder por qué se vio rezagada la industria colombiana al momento de la apertura económica y cuáles fueron las causas de la caída del modelo de Industrialización por Sustitución de Importaciones (ISI). Para este fin, se presentan y contrastan los dos modelos económicos en la búsqueda de la industrialización en Colombia; acto seguido, se examina la incidencia del modelo de apertura económica después del año de 1991 a través de varios indicadores, lo cual permite evidenciar las causas de la debacle del modelo ISI. El documento se apoya principalmente en las publicaciones de Misas Arango, Bértola y Ocampo. *** This document seeks to answer why the Colombian industry was left behind at the time of economic opening and what were the causes for the fall of the Import ubstitution Industrialization model (ISI). To this end, the two economic models are presented and contrasted in the pursuit of industrialization in Colombia; then, the incidence of the model of economic opening after 1991 is examined through several indicators, which allows the causes of the debacle of the ISI model to be evidenced. The document relies mainly on the publications of Misas Arango, Bértola and Ocampo.
    Keywords: Apertura económica, Industrialización por sustitución de importaciones, Industrialización
    JEL: B20 N00 N16
    Date: 2019–03–20
  14. By: Susan Athey; Guido Imbens
    Abstract: We discuss the relevance of the recent Machine Learning (ML) literature for economics and econometrics. First we discuss the differences in goals, methods and settings between the ML literature and the traditional econometrics and statistics literatures. Then we discuss some specific methods from the machine learning literature that we view as important for empirical researchers in economics. These include supervised learning methods for regression and classification, unsupervised learning methods, as well as matrix completion methods. Finally, we highlight newly developed methods at the intersection of ML and econometrics, methods that typically perform better than either off-the-shelf ML or more traditional econometric methods when applied to particular classes of problems, problems that include causal inference for average treatment effects, optimal policy estimation, and estimation of the counterfactual effect of price changes in consumer choice models.
    Date: 2019–03
  15. By: Andrew Y. Chen
    Abstract: Suppose that asset pricing factors are just p-hacked noise. How much p-hacking is required to produce the 300 factors documented by academics? I show that, if 10,000 academics generate 1 factor every minute, it takes 15 million years of p-hacking. This absurd conclusion comes from applying the p-hacking theory to published data. To fit the fat right tail of published t-stats, the p-hacking theory requires that the probability of publishing t-stats
    Keywords: Stock return anomalies ; Multiple testing ; p-hacking ; Publication bias
    JEL: G10 G12
    Date: 2019–03–22

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