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on History and Philosophy of Economics |
| By: | Emima Alistar ("Dimitrie Cantemir" Christian University, Bucharest, Romania) |
| Abstract: | Most specialists agree that between law and morals there is a close connection, because the moral principles of good, justice and truth are appliances and promoted by the rule of law, even if the right and the moral retains its identity. However, over time, their views on the problem of knowing what is the relationship between law and morals were contradictory. Between law and morals, I consider that there is only an apparent contradiction, because the two concepts are complementary. The right would seem a trap for lawyers in that could make them to resist the temptation to not see beyond the letter of the law, given that the need for law enforcement and understanding of its spirit. A true man of law must not only know the law but also to look beyond it and realize that the main attraction of the moral law. |
| Keywords: | : law, moral, philosophy, religion, rationality |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:smo:cpaper:53eh&r=all |
| By: | Carlos Eduardo Suprinyak (Cedeplar-UFMG) |
| Abstract: | The political philosophy of pluralism enjoyed great currency in Britain during the early decades of the 20th century, as an alternative to the extreme poles of individualism and collectivism. Positing the existence of multiple types of political allegiances in any society, pluralism questioned the notion of state sovereignty by advocating that other forms of associational life should be recognized as legitimate sources of political power. In an age of increasing state intervention in economic affairs, however, this fragmentation of power concerned political economy as well. The paper explores the interplay between political claims for a weaker state and economic claims for a stronger state through a case study of G.D.H. Cole, the foremost British advocate of guild socialism and a prolific writer on economic planning. While defending the cause of democratic industrial self-management, Cole envisioned stateled economic planning as a transitional device for developing the communal loyalties necessary for a well-functioning socialist economy. |
| Keywords: | pluralism, state sovereignty, economic planning, G.D.H. Cole, democracy. |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td609&r=all |
| By: | Rafael Galvão de Almeida (Cedeplar-UFMG) |
| Abstract: | The relationship between economics and State has been intimate ever since classical political economy. However, perceptions about the role and size of the State have changed according to the epoch. In other words, economic theory assigned a bigger or a smaller role to the State depending on the political situation. This article analyses the change in economists and economic theory’s perception of the role of the State in the economy, from favoring an interventionist approach from the 1930s to the 1960s, and a liberal approach from 1970s, in order to understand the factors behind this change. |
| Keywords: | theory of economic policy; economic planning; liberalism; neoliberalism |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td612&r=all |
| By: | Francesco Sergi (University of the West of England, Bristol) |
| Abstract: | This contribution to the history of the economic thought aims at describing how “Econometric Policy Evaluation: A Critique” (Lucas, 1976) has been interpreted through four decades of debates. This historical appraisal clarifies how Lucas’s argument is currently understood and discussed within the dynamic stochastic general equilibrium (DSGE) approach. The article illustrates how two opposite interpretations of the Lucas Critique arose in the early 1980s. On the one hand, a “theoretical interpretation” has been championed by the real business cycle (RBC) approach; on the other hand, an “empirical interpretation” has been advocated by Keynesians. Both interpretations can be understood as addressing a common question: Do microfoundations imply parameters’ stability? Following the RBC theoretical interpretation, microfoundations do imply stability; conversely, for Keynesians, parameters’ stability (or instability) should be supported by econometric evidence rather than theoretical considerations. Furthermore, the article argues that the DSGE approach represent a fragile compromise between these two opposite interpretations of Lucas (1976). This is especially true for the recent literature criticizing the DSGE models for being vulnerable to the Lucas Critique. |
| Date: | 2018–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:uwe:wpaper:20181806&r=all |
| By: | Ivan Soraperra (CREED - Center for Research in Experimental Economics and Political Decision Making - UvA - Universiteit van Amsterdam); Anton Suvorov (National Research University Higher School of Economics [Moscow]); Jeroen van de Ven (ASE - Amsterdam School of Economics - UvA - University of Amsterdam [Amsterdam]); Marie Villeval (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Several studies show that social image concerns stimulate pro-social behavior. We study a setting in which there is uncertainty about which action is pro-social. Then, the quest for a better social image can potentially conflict with genuinely pro-social behavior. This conflict can induce \bad" behavior, where people lower both their own and others' material payoffs to preserve a good image. This setting is relevant for various types of credence goods. For example, recommending an inexpensive treatment reduces the expert's profits and may not satisfy the true needs of the client, but is generally good for the expert's image (as it signals the lack of greed). We test experimentally if people start to act bad in order to look good. We find that people care about their social image, but social image concerns alone do not induce them to act bad. That is, without future interactions, social image concerns do not lead to bad behavior. However, with future interactions, where building up a good image has instrumental value (reputational concerns), we do find evidence of bad behavior in the short run to secure higher earnings in the long run. |
| Keywords: | Social image,credence goods,prosocial behavior,reputation |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-02285897&r=all |
| By: | Burkhard C. Schipper (Department of Economics, University of California Davis) |
| Abstract: | We provide an evolutionary foundation to evidence that in some situations humans maintain either optimistic or pessimistic attitudes towards uncertainty and are ignorant to relevant aspects of the environment. Players in strategic games face Knightian uncertainty about opponents' actions and maximize individually their Choquet expected utility with respect to neo-additive capacities (Chateauneuf, Eichberger, and Grant, 2007) allowing for both an optimistic or pessimistic attitude towards uncertainty as well as ignorance to strategic dependencies. An optimist (resp. pessimist) overweights good (resp. bad) outcomes. A complete ignorant never reacts to opponents' changes of actions. With qualifications we show that in finite populations optimistic (resp. pessimistic) complete ignorance is evolutionary stable and yields a strategic advantage in submodular (resp. supermodular) games with aggregate externalities. Moreover, this evolutionary stable preference leads to Walrasian behavior in these classes of games. |
| Keywords: | ambiguity, Knightian uncertainty, Choquet expected utility, neo-additive capacity, Hurwicz criterion, Maximin, Minimax, supermodularity, aggregative games, monotone comparative statics, playing the field, evolution of preferences |
| JEL: | C72 C73 D01 D43 D81 L13 |
| Date: | 2019–09–17 |
| URL: | http://d.repec.org/n?u=RePEc:cda:wpaper:334&r=all |
| By: | Bengtsson, Erik (Department of Economic History, Lund University) |
| Abstract: | In discussions of Scandinavian democratization, it is commonplace to argue that long-standing farmer representation in parliament and a lack of feudalism encouraged a democratic-participatory civic culture within the peasant farmer class – or perhaps in the population as a whole. The present essay questions this interpretation in the Swedish case. It centers on a re-interpretation of farmer politics at the national level from a two-chamber system of representation after the 1866-67 reform to the alliance between the farmers’ party and Social Democracy in 1933 and offers a new analytical account of the way that one class’s attitude to democratic inclusion can change over time, owing to changed political and economic relationships to other classes. I show that Swedish farmers did not organize themselves independently of nobles and land-owners until the 1920s, and that they did not play the role of an independent pro-democratic force. On the contrary, the broad-based organizations of farmers in the 1920s and 1930s, with their democratic, participatory culture, appear to have been heavily influenced by the political culture of liberals and the labor movement, which in democratic society opened the door to a re-shaping of Swedish farmer politics that abandoned the old (subservient) alliance with estate owners. It was not democratic farmers who gave rise to Social Democracy – rather, it was Social Democracy that caused farmers to become democratic. Understanding farmer politics correctly also opens up a new understanding of the determinants of Swedish democratization. |
| Keywords: | democratization; agrarian politics; Sweden; class structure; farmers; Sonderweg |
| JEL: | H10 N53 N54 P16 |
| Date: | 2019–08–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:luekhi:0205&r=all |
| By: | Ivan Soraperra (CREED, University of Amsterdam, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands); Anton Suvorov (National Research University Higher School of Economics, Faculty of Economic Sciences, Pokrovsky bd., 11, Suite S1039; 109028 Moscow Russia); Jeroen van de Ven (Tinbergen Institute and Amsterdam School of Economics, University of Amsterdam, Roetersstraat 11, 1018 WB Amsterdam, The Netherlands); Marie Claire Villeval (Univ Lyon, CNRS, GATE UMR5824, 93 Chemin des Mouilles, F-69130, France; IZA, Bonn, Germany) |
| Abstract: | Several studies show that social image concerns stimulate pro-social behavior. We study a setting in which there is uncertainty about which action is pro-social. Then, the quest for a better social image can potentially con flict with genuinely pro-social behavior. This confl ict can induce \bad" behavior, where people lower both their own and others' material payoffs to preserve a good image. This setting is relevant for various types of credence goods. For example, recommending an inexpensive treatment reduces the expert's profits and may not satisfy the true needs of the client, but is generally good for the expert's image (as it signals the lack of greed). We test experimentally if people start to act bad in order to look good. We find that people care about their social image, but social image concerns alone do not induce them to act bad. That is, without future interactions, social image concerns do not lead to bad behavior. However, with future interactions, where building up a good image has instrumental value (reputational concerns), we do find evidence of bad behavior in the short run to secure higher earnings in the long run. |
| Keywords: | Social image, credence goods, prosocial behavior, reputation, experiment |
| JEL: | C92 D82 D91 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:gat:wpaper:1926&r=all |
| By: | Benoît, Jean-Pierre; Dubra, Juan; Romagnoli, Giorgia |
| Abstract: | Incentive compatible mechanisms for eliciting beliefs typically presume that money is the only argument in people's utility functions. However, subjects may also have non-monetary objectives that confound the mechanisms. In particular, psychologists have argued that people favour bets where their skill is involved over equivalent random bets -- a so-called preference for control. We propose a new belief elicitation method which mitigates the control preference. With the help of this method, we find that under the ostensibly incentive compatible probability matching mechanism (Grether (1981) and Karni (2009)), subjects report beliefs 7% higher than their true beliefs in order to increase their control. Non-monetary objectives account for at least 27% of what would normally be measured as overconfidence. Our paper also contributes to a refined understanding of control. |
| Keywords: | Elicitation, Overconfidence, Control. Experimental Methods |
| JEL: | D0 D01 D03 |
| Date: | 2019–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95550&r=all |
| By: | Serra-Garcia, Marta; Szech, Nora |
| Abstract: | Ignorance enables individuals to act immorally. This is well known in policy circles, where there is keen interest in lowering moral ignorance. In this paper, we demonstrate the relevance of demand elasticity to ignorance by showing that small monetary incentives can significantly reduce ignorance. We contrast monetary incentives with social norms, which have little impact on ignorance and actually increase ignorance in less moral individuals. Using a longitudinal design, we document that ignorance is persistent across moral contexts and through time. We propose and structurally estimate a simple behavioral model in line with our findings. |
| Keywords: | information avoidance,morality,unethical behavior,social norms |
| JEL: | D83 D91 C91 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitwps:134&r=all |
| By: | Claude DIEBOLT; Michel HAU |
| Abstract: | C’est par sa volonté de combiner la rigueur des modèles théoriques et mathématiques avec la prise en compte, de la façon la plus exhaustive possible, de la complexité de toutes les données (qualitatives et quantitatives) que l’Ecole cliométrique strasbourgeoise reste fidèle à l’esprit des Annales et prolonge le mouvement initié en 1929 par Marc Bloch et Lucien Febvre. |
| Keywords: | Cliométrie, Ecole des Annales, Economie, Epistémologie, Histoire, Histoire économique, Histoire de la pensée économique. |
| JEL: | A12 A22 A23 B20 B41 C18 C81 C82 N01 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2019-32&r=all |
| By: | Rafael Galvão de Almeida (Cedeplar-UFMG) |
| Abstract: | Este artigo explora o desenvolvimento intelectual de Douglass North como um economista político e um pesquisador interdisciplinar. Apesar de ele ter sido uma figura importante durante o auge da Nova História Econômica nos anos 1960, ele ficou insatisfeito com a abordagem e se dedicou a estudar as instituições, ajudando a estabelecer a Nova Economia Institucional. Sua teoria política evolui com influências do marxismo e da teoria da escolha pública e isto se reflete em seu trabalho na década de 1980. Seu mandato como diretor do Center in Political Economy na Universidade de Washington em St. Louis permitiu a ele trabalhar diretamente com outros cientistas sociais para o desenvolvimento de uma Nova Ciência Social Institucional. |
| Keywords: | nova economia institucional; economia política.; Douglass North; cliometria; nova história econômica; marxismo; escolha pública |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td614&r=all |
| By: | Heinz Welsch (University of Oldenburg, Department of Economics) |
| Abstract: | Economic theory has invoked moral motivation as an explanation for the voluntary provision of public goods but is vague with regard to the specific moral concerns involved. Using climate change as a case study, this paper relates morally-motivated public good provision to the six moral foundations (MFs) identified by moral psychologists: Care, Fairness and Liberty (individual-focused), and Loyalty, Authority and Sanctity (group-focused). Using data from the European Social Surveys it is found that using the MFs in addition to standard explanatory variables improves the explanation of climate-friendly behaviors and endorsement of climate-friendly regulations by 44 percent. While the Fairness and Care foundations are strong and robust predictors of the dependent variables, the Loyalty foundation contributes positively only when neglecting the nature of climate change mitigation as a global public good. More generally, in contrast to the individual-focused MFs (that apply to all individuals), the group-focused MFs are of little direct relevance for climate change mitigation, as the benefit from mitigation extends beyond the in-group (family, neighborhood, region, or nation) to which these MFs refer. Group-focused MFs are only of indirect relevance as their endorsement fosters general environmental concern. |
| Keywords: | voluntary public good provision, climate change, moral motivation, moral foundations |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:425&r=all |
| By: | Ana Llena-Nozal (OECD); Neil Martin (OECD); Fabrice Murtin (OECD) |
| Abstract: | As well-being has matured as a statistical and measurement agenda, it has become increasingly relevant as a “compass” for policy, with a growing number of countries using well-being metrics to guide decision-making and inform budgetary processes. One remaining challenge has consisted in providing policy-makers with a better understanding of the linkages between the drivers of well-being and economic growth. This paper develops the concept of an “Economy of Well-being” as a basis for highlighting these linkages and showing how policy can most effectively leverage them. The paper defines an economy of well-being around the idea of a “virtuous circle” in which individual well-being and long-term economic growth are mutually reinforcing. It also explores the characteristics of an economy of well-being and the conditions under which it can be sustained. Secondly, based on a survey of existing empirical evidence, the paper contributes to outline how economies of well-being can be built. It provides analysis of several important channels through which economic growth and well-being support and reinforce one another, focusing on the multidimensional impact of policies in four areas that research has shown to be important for well-being: Education and Skills; Health; Social Protection and Redistribution; and Gender Equality. |
| Keywords: | equality of opportunity, multidimensional analysis, policy linkages, social investment, well-being |
| JEL: | D61 I14 I24 I38 |
| Date: | 2019–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stdaaa:2019/02-en&r=all |
| By: | Rafael Galvão de Almeida (Cedeplar-UFMG) |
| Abstract: | A teoria da escolha pública está listada como uma subdivisão da microeconomia no código JEL e é amplamente considerada um assunto de microeconomia e microeconomistas que trabalham na fronteira entre a economia e a ciência política. Porém, a partir da década de 1970, macroeconomistas começaram a pesquisar tópicos de escolha pública e os modelando, e alguns teóricos da escolha pública analisando e discutindo assuntos macroeconômicos sob a égide da escolha pública. A diferença é que o primeiro grupo tenta se separar da designação “escolha pública”, adotando várias designações, a qual eu uso o termo “Nova Macroeconomia Política” para designar essa abordagem. Isso criou conflitos outras abordagens de escolha pública, especialmente a Escola de Virgínia, que argumentam que essa tentativa de separação prejudica o campo científico. Este artigo tenta entender a formação da nova macroeconomia política, de como ela se tornou uma tradição separada de escolha pública e as razões porque ela se separara da designação “escolha pública”. As razões são, principalmente, a adoção das expectativas racionais e da abordagem de equilíbrio geral, paradigmas da macroeconomia mainstream, e a tentativa de se distanciarem da associação ideológica com o libertarianismo/liberalismo presente em algumas tradições de escolha pública. |
| Keywords: | macroeconomia; economia política; escolha pública; nova macroeconomia política |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td615&r=all |
| By: | Eduardo da Motta e Albuquerque (Cedeplar-UFMG) |
| Abstract: | This paper suggests that Trotsky's elaboration on uneven and combined development can be a methodological tool to understand contemporary capitalism. A dialogue with Kondratiev is a starting point, as each new technological revolution creates a new level of unevenness. Technological revolutions also transform channels through which combination takes place. As both unevenness and combination change over time, it is possible to have a dynamic approach to the process of uneven and combined development. This dynamic approach is a methodology to investigate how new amalgams between modern and archaic forms shape varieties of capitalism at the periphery and transform the global dynamic of capitalism. |
| Keywords: | technological revolutions; center-periphery divide; varieties of capitalism; expansion of global capitalism |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:cdp:texdis:td610&r=all |
| By: | Haque, Qazi; Groshenny, Nicolas; Weder, Mark |
| Abstract: | The paper re-examines whether the Federal Reserve’s monetary policy was a source of instability during the Great Inflation by estimating a sticky-price model with positive trend inflation, commodity price shocks and sluggish real wages. Our estimation provides empirical evidence for substantial wage-rigidity and finds that the Federal Reserve responded aggressively to inflation but negligibly to the output gap. In the presence of non-trivial real imperfections and well-identified commodity price-shocks, U.S. data prefers a determinate version of the New Keynesian model: monetary policy-induced indeterminacy and sunspots were not causes of macroeconomic instability during the pre-Volcker era. |
| JEL: | E32 E52 E58 |
| Date: | 2019–09–11 |
| URL: | http://d.repec.org/n?u=RePEc:bof:bofrdp:2019_020&r=all |