nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2021‒04‒05
twenty papers chosen by
Erik Thomson
University of Manitoba

  1. Female economists and philosophers’ role in Amartya Sen’s thought: his colleagues and his scholars By Erasmo, Valentina
  2. The Man Who Discovered Capitalism: A Documentary on Schumpeter for Use in the Classroom By Dalton, John; Logan, Andrew
  3. Théorie et politique économiques à l’épreuve des crises. Essai sur les fondements économiques du libéralisme social. By Jean-Luc Gaffard
  4. Revisiting the Expected Utility Theory and the Consumption CAPM By Sapre, Nikhil
  5. Keynes’s finance, the monetary and demand-led circuits: a Sraffian assessment By Sergio Cesaratto; Riccardo Pariboni
  6. JHET Interviews: Karen Vaughn By Caldwell, Bruce
  7. The Stable Marriage Problem: an Interdisciplinary Review from the Physicist's Perspective By Enrico Maria Fenoaltea; Izat B. Baybusinov; Jianyang Zhao; Lei Zhou; Yi-Cheng Zhang
  8. The Madman and the Economist(s): Georges Bataille and François Perroux as French Critiques of the Marshall Plan By Fèvre, Raphaël
  9. Humility’s Challenge: The Political Value of Disperse Individual Experience in F. A. Hayek’s Thought By Daniel Fernando Zarama Rojas
  10. The “Place Of The Phillips Curve” in Macroeconometric Models: The Case of the First Federal Reserve Board’s Model (1966-1980s) By Rancan, Antonella
  11. Tolerant moral judgment drives evolution of collective action By Radzvilavicius, Arunas
  12. Expertise économique et politique publique : examen critique des propositions sur la dette liée à la pandémie: Note de recherche By Anne-Laure Delatte; Benjamin Lemoine
  13. L’histoire de l’économie sociale à partir de la théorie économique institutionnaliste – conceptualisation, variation d’échelles et faits stylisés By Sylvain Celle
  14. ¿Cuál es el alcance de la revolución de la credibilidad? By Juan Andrés Cabral; Florencia Iara Pucci
  15. Alfred Marshall, autor del siglo XX: desempleo involuntario, monopolio, amortización acelerada, competencia por nuevos productos e intervención estatal orientada a alcanzar el producto máximo By Joan-Severo Chumbita
  16. The reception of Adam Smith in Japan: the formation of the idea of Shimin Shakai, or civil society, by Zenya Takashima before the end of World War II By Nohara, Shinji
  17. ‘Luxury beyond morals’: the rise and transformation of the concept in 18th century Russia By Korchmina, Elena; Kiselev, Mikhail
  18. Models and numbers: Representing the world or imposing order? By Matthias Kaiser; Tatjana Buklijas; Peter Gluckman
  19. América Latina y la historia intelectual de la economía del desarrollo By Jérôme Sgard
  20. The Best Principle is the best principle By Dowie, Jack

  1. By: Erasmo, Valentina
    Abstract: The aim of this paper is to offer an insight about women’s role in Amartya Sen’s thought, privileging economists and philosophers: mainly, I will focus on the figures of Joan Robinson, Eva Colorni, Martha Nussbaum and Emma Rothschild, showing, on the one hand, how they have influenced his thought, on the other, how they have eventually developed their own welldefined ideas about common research themes. Finally, I will provide an overview about contemporary Sen’s female scholars who have reached international acknowledgments in this research in order to distinguish the most important schools of thought born around his reflection. The main result of this paper is that, on the one hand, Sen has favoured the enhancement of these female’s figures both in economics and philosophy; on the other, these female’s figures have undoubtedly and significantly influenced his own thought. Rather, it is better to talk of a mutual and peer influence to each other.
    Keywords: capability approach; female; feminist; sentiments.
    JEL: B20 B40 B54
    Date: 2021–02–05
  2. By: Dalton, John; Logan, Andrew
    Abstract: We describe how the 2016 documentary The Man Who Discovered Capitalism can be used in the classroom to provide an entry point to the life and economics of Joseph A. Schumpeter, whose work on innovation, entrepreneurship, and creative destruction remains relevant for students today. We summarize the key ideas conveyed in the documentary and offer four criticisms: its failure to capture the role of fin-de-siecle Vienna on Schumpeter's intellectual development, its incomplete understanding of Schumpeter's theory of innovation, its overstatement of Keynes's influence relative to Schumpeter, and the overly generous credit it gives to government for spurring innovation. We show how the documentary can be used in the classroom, complete with sample discussion questions grounded in the criticisms we identify. We argue The Man Who Discovered Capitalism is an effective teaching tool suitable for a variety of courses, including those on economic growth, intermediate macroeconomics, and the history of economic thought, among others.
    Keywords: Joseph Schumpeter; Innovation; Entrepreneurship; Creative Destruction; John Maynard Keynes; Education; Documentary
    JEL: A20 B31 O31 O33
    Date: 2021–01–30
  3. By: Jean-Luc Gaffard
    Abstract: Les crises, crise financière de 2008, crise sanitaire de 2020, crise écologique récurrente ont des effets destructeurs sur les économies comme sur les théories censées expliquer leur évolution. Le projet qualifié de néo-libéral est remis en cause concrètement quand les repères habituels, issus de la théorie économique dominante, sont perdus et les politiques se rallient à ce qu’il est convenu d’appeler des mesures non conventionnelles. Les sociétés développées semblent osciller entre la continuation de ce projet avant tout guidé par la confiance dans les régulations par des marchés aussi flexibles que possible et une rupture incarnée dans le retour au pouvoir d’États autoritaires jouant de nationalismes identitaires. Cette situation n’est pas sans rappeler celles déjà vécues à la fin du XIXe siècle puis dans les années 1920-1930, situations de crise du libéralisme et de la théorie économique, un libéralisme qui a dû se renouveler pour ne pas sombrer et qui a pris la forme du libéralisme social dont le trait distinctif a été de faire place à une régulation macroéconomique au coeur d’un renouvellement de la théorie économique elle-même. Fort de cette expérience, le propos du texte qui suit est de faire valoir les avancées théoriques nécessaires et, par suite, les fondements économiques d’un libéralisme social présenté comme la réponse institutionnelle la mieux adaptée à la conduite d’économies de marché qui s’avèrent de nouveau être intrinsèquement instables mais néanmoins capables de résilience.
    Keywords: coordination, entreprise, instabilité, institutions, État, libéralisme, monnaie, nation, norme, rationalité, travail.
    JEL: B41 O43 P17 P4
    Date: 2021
  4. By: Sapre, Nikhil
    Abstract: The concept of utility is the core component of many foundational theories in social sciences. It has evolved from a philosophical belief that people seek happiness and satisfaction to a mathematically derived theory in economics and finance. Beginning with a brief review of the developments in the Expected Utility Theory (EUT) and its applicability in equity pricing, this paper includes a critical appraisal of relevant theoretical and empirical studies from the fields of financial economics and behavioural studies, with a particular focus on the the Consumption Capital Asset Pricing Model (CCAPM).
    Keywords: Expected Utility, Choice Behaviour, Equity Pricing, CCAPM
    JEL: G10 G11 G12
    Date: 2021–02–18
  5. By: Sergio Cesaratto; Riccardo Pariboni
    Abstract: This paper aims to stimulate the convergence of the Sraffian approach to demand-led growth theory with insights from monetary circuit theory and stock-flow models. The first Sraffian contribution to this convergence we identify is the extension of Garegnani’s interpretation of Keynes’ General Theory’s originality and limitations to Keynes’ 1937 papers on “finance.” In both cases, it is a question of freeing Keynes from the ties of marginalist theory. After discussing some troubles of the monetary circuit, we identify a complementarity between the Keynesian concept of finance, some insights of the monetary circuit, and the role attributed by the Sraffian take of demand-led growth to the autonomous components of demand (which are also Kalecki’s external markets). This seems to us to be the second Sraffian contribution to this convergence towards a monetary theory of demand-led growth.
    Keywords: Keynes, Finance, Monetary Circuit, Effective Demand, Supermultiplier
    JEL: B26 E12 E43 E50
    Date: 2021–03
  6. By: Caldwell, Bruce
    Abstract: Karen Vaughn received her BA in economics from Queens College of the City Universi-ty of New York in 1966 and her PhD from Duke University in 1971. From 1978 to 2004 she taught at George Mason University. She attended some of the earliest meet-ings of the History of Economics Society (HES) and was the editor of the HES Bulletin, which was the precursor of the Journal of the History of Economic Thought. Professor Vaughn has served as the President of the History of Economics Society and the South-ern Economic Association, and was the founding President of the Society for the Ad-vancement of Austrian Economics. She has books on John Locke and on the Austrian tradition in economics, and numerous articles on a variety of topics in professional jour-nals (the list of her publications is available as an online appendix to this interview).
    Date: 2021–03–26
  7. By: Enrico Maria Fenoaltea; Izat B. Baybusinov; Jianyang Zhao; Lei Zhou; Yi-Cheng Zhang
    Abstract: We present a fascinating model that has lately caught attention among physicists working in complexity related fields. Though it originated from mathematics and later from economics, the model is very enlightening in many aspects that we shall highlight in this review. It is called The Stable Marriage Problem (though the marriage metaphor can be generalized to many other contexts), and it consists of matching men and women, considering preference-lists where individuals express their preference over the members of the opposite gender. This problem appeared for the first time in 1962 in the seminal paper of Gale and Shapley and has aroused interest in many fields of science, including economics, game theory, computer science, etc. Recently it has also attracted many physicists who, using the powerful tools of statistical mechanics, have also approached it as an optimization problem. Here we present a complete overview of the Stable Marriage Problem emphasizing its multidisciplinary aspect, and reviewing the key results in the disciplines that it has influenced most. We focus, in particular, in the old and recent results achieved by physicists, finally introducing two new promising models inspired by the philosophy of the Stable Marriage Problem. Moreover, we present an innovative reinterpretation of the problem, useful to highlight the revolutionary role of information in the contemporary economy.
    Date: 2021–03
  8. By: Fèvre, Raphaël
    Abstract: This paper deals with the initial reception of the Marshall Plan by Georges Bataille and François Perroux in light of the discussion they held in the journal Critique, during the second half of 1948. I argue that Bataille and Perroux took the Marshall Plan as an enigma that current economic and political theories were not able to explain fully. And that in response, both authors contributed a unique and sophisticated economic analysis to transcend what they perceived as limited scope of economics. By focusing on this interdisciplinary dialogue, this paper is intended as a contribution to a history of economic thought taking in the economic inquiry of non-economists, and the ways in which they relate to professional economists.
    Date: 2021–03–26
  9. By: Daniel Fernando Zarama Rojas
    Abstract: The meaning of Hayek’s call for humility changed after the introduction of evolutionism into his thought. Initially, his call pretended to highlight the greater capacity of spontaneous orders to combine disperse knowledge of local circumstances. His account, however, was not able to fully argue why would such knowledge be socially valuable, why could only spontaneous orders combine it, and how could it be relevant for the political institutions of society. Then, through the introduction of evolutionism, widening his conception of knowledge, he renewed his account of social phenomena and became able to answer criticisms that could be associated with his previous works. Ever since, Hayek calls for humility points out at the potentialities of individual learning and innovation. I argue that reinterpreting Hayek’s call for humility in the light of his evolutionism allows for a clear understanding of the value of freedom and the role he assigns to the state.
    Keywords: Hayek, Knowledge, Development, Humility, Institutions
    JEL: B25 O17 O43
    Date: 2021–03–19
  10. By: Rancan, Antonella
    Abstract: In the article I examine how model builders from the academia and from the Federal Reserve Board confronted with the Phillips curve in the construction and subsequent modifications of the Federal Reserve, MIT and University of Pennsylvania macroeconometric model. It is argued that academic debates on Friedman’s and Phelps’ accelerationist hypothesis, and the subsequent evolution of the macroeconomics discipline, did not affect the model building agenda at the Research and Statistics Division of the Board over the 1970s and 1980s.
    Date: 2021–03–26
  11. By: Radzvilavicius, Arunas (University of Sydney)
    Abstract: In public goods games, the benefit of collective action is shared among all participants, and this creates strong incentives to defect. Theoretical studies and economic experiments predict that without enforcement mechanisms, cooperation in public goods games should collapse. But human societies have repeatedly resolved collective action dilemmas through social norms and institutions. Humans condition their social behavior on the moral reputations of other individuals, and the reputations themselves reflect their past behavior. Here I show how Indirect Reciprocity mechanisms based on group reputations and group-level norms can evolve to promote collective action in public goods games. Individual reputations reflect moral judgments of social behavior within groups, according to the prevailing social norm. Only three norms previously studied as part of Indirect Reciprocity in pairwise games can sustain public goods investments, and their performance depends on how tolerant individuals are to occasional antisocial behavior within groups. When members of the society have predominantly tolerant moral views towards groups, only the norm that abstains from judgment in morally ambiguous interactions (known as ``Staying'') can sustain collective action.
    Date: 2021–01–29
  12. By: Anne-Laure Delatte (Université Paris-Dauphine); Benjamin Lemoine (Institut de recherche interdisciplinaire en sociologie, économie et sciences politique (UMR 7170, CNRS / Paris Dauphine / INRA) (IRISSO))
    Abstract: Cette note analyse les logiques économiques et politiques des propositions concernant le traitement de la dette COVID formulées par différentes expertises, plus ou moins proches du gouvernement. Ces propositions contribuent à reconstruire un récit de la dette tout en s’inscrivant dans une logique politique conservatrice, en évacuant toute alternative budgétaire progressive. Après avoir explicité la façon dont, à travers l’histoire, le dispositif des caisses d’amortissement de la dette a été expérimenté, nous tirons les enseignements suivants : loin de se réduire à une opération cosmétique, les propositions engagent les finances publiques dans une logique disciplinaire au prix d’une possible augmentation du coût de financement de la dette. Cette décision, qui a déjà entraîné la prolongation d’un impôt régressif – la Contribution au Remboursement de la Dette Sociale, (CRDS) au cours de la crise pandémique – met toute la pression sur la baisse des dépenses publiques. Enfin, les propositions seraient de nature à freiner les réformes possibles de la gouvernance économique européenne.
    Keywords: dette; finances publiques
    Date: 2021–03
  13. By: Sylvain Celle (CLERSE - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique)
    Keywords: Economie sociale et solidaire,Institutionnalisme historique
    Date: 2020–02–07
  14. By: Juan Andrés Cabral; Florencia Iara Pucci
    Abstract: En los últimos 25 años ha tenido lugar un cambio abrupto en la metodología seguida por los economistas. Autores como Angrist y Pischke llaman a este cambio “revolución de la credibilidad”. Esta revolución consta del uso de métodos experimentales o cuasi-experimentales y alcanzó principalmente a las revistas académicas de alto impacto de Economía tales como The Quarterly Journal of Economics, American Economic Review y Econometrica, entre otras. Hasta el momento no se ha analizado el alcance de la revolución en revistas académicas asociadas a corrientes heterodoxas. El objetivo de este artículo es explorar con un análisis bibliométrico si hubo un cambio similar en revistas con principal influencia de las corrientes marxista, austríaca y post-keynesiana. El resultado de este ejercicio sugiere que este tipo de revistas no presenció una revolución de la credibilidad como tal.
    JEL: B4 C1
    Date: 2020–11
  15. By: Joan-Severo Chumbita
    Abstract: Resumen: El presente artículo analiza la cuestión del producto máximo en la obra de Alfred Marshall, rastreando en ella afirmaciones comúnmente atribuida a autores del siglo XX, como John Maynard Keynes –sobre el empleo, la demanda agregada y la distribución– y Joseph Schumpeter –sobre las virtudes del monopolio, la innovación tecnológica y la distribución–. El estudio se realiza a partir de dos ejes fundamentales para una perspectiva dinámica sobre el crecimiento: 1) el uso de los factores productivos –la existencia o no de capacidad ociosa de capital anclado y de mano de obra– y 2) el nivel de la acumulación, su calidad y las implicancias distributivas de la destrucción de capital físico. De este modo, se estudian comprensivamente los efectos inter-temporales acumulativos del pleno uso de los factores, de la inversión, la innovación tecnológica y el aumento de la productividad del trabajo. Se mostrará que Marshall identifica la existencia del desempleo involuntario, y la necesidad de una intervención estatal orientada a remediarlo. Al mismo tiempo, se presentará la formulación marshalliana de la destrucción de capital físico por innovación tecnológica, así como de la posibilidad de que el producto en condiciones de competencia perfecta sea menor al de condiciones monopólicas.
    Keywords: Alfred Marshall; Joseph Schumpeter; pleno empleo; innovación; John Maynard Keynes; demanda agregada.
    JEL: B13 B14 B22 B31 D42
    Date: 2020–07–01
  16. By: Nohara, Shinji
    Abstract: From the 1930s to the end of World War II, the Japanese government restricted freedom of expression and research. Nevertheless, Zenya Takashima (1904-1990), one of the most influential social scientists in Japan, continued to publish his writings. On an initial reading, he seems to have supported totalitarianism, even though he did not; moreover, he seemed to have agreed with a model of a controlled economy as a historical step, although he did not see this as inevitable. Rather, in order to resist the totalitarian ideology, he adopted a Smithian view of Shimin Shakai, or civil society, in which people, by protecting justice, acted freely in the economy. Before Takashima, the concept of civil society was used to express the German concept "bürgerliche Gesellschaft," but Takashima changed the meaning of the term to a society of equal citizens.
    Date: 2021–03–26
  17. By: Korchmina, Elena; Kiselev, Mikhail
    Abstract: Luxury has always been an intrinsic part of world history, but the words ‘luxe’/’luxury’ in the conventional sense are quite new, entering the French and English languages only in the 17th century. It was only at the end of the 17th century that the core of this phenomenon came up for discussion in Europe against a backdrop of development of international trade and incipient economic growth. During these debates, the concept of luxury was gradually demoralized by economic liberalism. A seminal role in the defining of the concept of luxury was played by translations. European thinkers coordinated their positions even if they disagreed with each other. How was the notion of luxury conceptualized outside the European Roman world? Russia is an interesting example that helps to understand it. The article answers when and why the concept of luxury entered Russian political thought and why although the luxury, finding itself outside the bounds of morality, continued to be only condemned in the economic sphere.
    Date: 2021–03–26
  18. By: Matthias Kaiser; Tatjana Buklijas; Peter Gluckman
    Abstract: We argue for a foundational epistemic claim and a hypothesis about the production and uses of mathematical epidemiological models, exploring the consequences for our political and socio-economic lives. First, in order to make the best use of scientific models, we need to understand why models are not truly representational of our world, but are already pitched towards various uses. Second, we need to understand the implicit power relations in numbers and models in public policy, and, thus, the implications for good governance if numbers and models are used as the exclusive drivers of decision making.
    Date: 2021–03
  19. By: Jérôme Sgard (Centre de recherches internationales)
    Abstract: América Latina y la historia intelectual de la economía del desarrollo - En la economía clásica del desarrollo es posible reconocer la expresión de una época excepcional, la posguerra, capturada a través de sus aspiraciones progresistas más amplias y universales. Nuevas fuerzas como la paz, la prosperidad, la emancipación nacional y el multilateralismo, de algún modo se habrían unido por un proyecto de mundo mejor y más justo construido gracias a una nueva tecnología económica. En pocas ocasiones hemos visto una expresión tan poderosa de la consolidación del pensamiento económico en las ideas de progreso y razón y en una disposición evidentemente tecnocrática también...
    Keywords: Amérique latine; vie politique; économie du développement
    Date: 2020–01–30
  20. By: Dowie, Jack
    Abstract: The Precautionary Principle represents an attempt to avoid the issues and difficulties in establishing the best course of action. It is closely associated with the methodological confusions arising from ‘the risk approach’ and the fallacy of ‘science-based policy’. The only principle relevant to responsible, coherent and transparent public decision making is the Best Principle
    Date: 2021–03–20

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