nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2023‒03‒13
five papers chosen by
Erik Thomson
University of Manitoba

  1. Ladislaus von Bortkiewicz’s Errors and a Reliable Solution to the Marxian Problem of Transformation in Direct and Inverse Formulation By Kalyuzhnyi, Valeriy
  2. Why we struggle to realise the value of data By Fussell, Cathy
  3. Similarities and differences on solidarity economy between Argentina and France By Eric Dacheux; Gloria Maffet
  4. Thermodynamik – grundlegende Einsichten für ein Verständnis von Umweltproblemen By Faber, Malte; Rudolf, Marco; Frick, Marc; Becker, Mi-Yong
  5. On the (In)Plausibility of Dutch Book Arguments for the Rationality of Beliefs By Phoebe Koundouri; Nikitas Pittis; Panagiotis Samartzis

  1. By: Kalyuzhnyi, Valeriy
    Abstract: The paper argues that economists still regard the solution to the problem of the transformation of values into prices of production, got by L. von Bortkiewicz, as belonging to Marx himself. After all, it was allegedly “correctly corrected” by the said author in 1907. Bortkiewicz based his solution on several erroneous interpretations’ theory of Marx. Because of Bortkiewicz’s errors, the representatives of the mainstream see no connection between the “value system” and the “production price system”. They claim that the transformation problem itself results from impossibility and that Marxist value theory is, at best, irrelevant and irremediably inconsistent. The paper shows that the solution to the transformation issue exists in both the direct and inverse formulation. We used for this purpose the Tugan-Baranowsky—Bortkiewicz three-sector model. These results are consistent with the concept of Marx within the dualistic approach. They coincide with the results generated by the author in his previous work (see In the present paper, we introduce methods and examples of transformation, including iterative and based on solving systems of simultaneous equations. We prove again with their help that at equilibrium prices, profit arises from surplus value, or more precisely, from the newly created value generated by workers’ labour and from no other source. We also show that a dualistic approach to transformation allows us to see the advantages of value prices, which, unlike production prices, do not limit the growth of the productive power of labour when enterprises introduce new machines. Value prices are in demand under socialism.
    Date: 2022–03–01
  2. By: Fussell, Cathy
    Abstract: Governments and businesses are under pressure to realise the value of data, yet value realisation is often elusive. This paper examines the origins and logics of the discourses that underpin the drive to invest in data and analytics. It finds that a linear-mechanic logic scaffolds the ideas drawn from public administration theory, economics, and theories of data and evidence use that permeate government, business, and academic framings. However, within the critique of these ideas, another pattern emerges. The view that simple metrics and universal solutions should guide and evaluate the actions of centralised, hierarchical decision makers competes with an alternative perspective. Value creation and its consumption are increasingly seen as a collective and complex endeavour. Yet we lack theories of value to support this approach. In response, this paper proposes that a new theory of value is required if we are to understand and articulate what collective value looks like and how to create it. Subsequent papers propose that new theory.
    Date: 2023–02–05
  3. By: Eric Dacheux (UCA - Université Clermont Auvergne); Gloria Maffet (UCA - Université Clermont Auvergne)
    Abstract: The aim of this work is to better understand the specificity of Latin American (and more precisely Argentinean) approaches to SSE by comparing it to a European (French) approach. We present the historical context and the evolution of the solidarity economy in Argentina and France (I). Then we will highlight the different conceptualization between José Luis Coraggio and Jean Louis Laville, the two most recognized researchers on the solidarity economy in these two countries. It should be noted that if these differences were important in their first respective conceptualizations (II), they seem to fade away in the more recent formalization (III).
    Abstract: El objetivo de este trabajo es comprender mejor la especificidad de los enfoques latinoamericanos (y más precisamente argentinos) de la ESS comparándolos con un enfoque europeo (francés). Presentamos el contexto histórico y la evolución de la economía solidaria en Argentina y Francia (I). A continuación, destacaremos la diferente conceptualización entre José Luis Coraggio y Jean Louis Laville, los dos investigadores más reconocidos sobre la economía solidaria en estos dos países. Cabe señalar que si estas diferencias eran importantes en sus respectivas conceptualizaciones iniciales (II), parecen desvanecerse en la formalización más reciente (III).
    Abstract: Le but de ce travail est de mieux comprendre la spécificité des approches latino-américaine (et plus précisément argentine) de l'ESS en la comparant à une approche européenne (française). Nous présentons le contexte historique et l'évolution de l'économie solidaire en Argentine et en France (I). Puis nous mettrons en lumière la conceptualisation différente entre José Luis Coraggio et Jean Louis Laville les deux chercheurs les plus reconnus sur l'économie solidaire dans ces deux pays. Il est à noter que si ces différences étaient importantes dans leurs premières conceptualisations respectives (II), elles semblent s'estomper dans la formalisation plus récente (III).
    Keywords: solidaity économy, theory, comparatism, Economía solidaria, teoría, comparatismo, economie solidaire, theorie, économie
    Date: 2021–06–29
  4. By: Faber, Malte; Rudolf, Marco; Frick, Marc; Becker, Mi-Yong
    Abstract: In this paper, we present a way that allows to make fundamental statements about how economic action entails harmful effects on the environment. These effects are due to natural scientific reasons and are particularly present in the industrialised economy. The starting point of our considerations is that every economic action requires energy, of which many different forms exist. Taking all of these forms into account, heat energy has a particular significance, because other forms of energy can never appear in isolation, but only conjointly with heat energy. For this reason, the branch of physics that deals primarily with energy is called thermodynamics. The study of thermodynamics yields the central link between economic activity and its environmental impact. Understanding basic insights of thermodynamics enables decision-makers in environmental policy to understand the nature of environmental problems and to develop possible solutions. First, we deal with the connection between physical work and heat. Then we explain the two main Laws of Thermodynamics and go into detail about the concept of entropy. We use Boltzmann's approach of the degree of order to give an illustration of the entropy concept. We then turn to the consideration of thermodynamics in economics, first provided by Georgescu-Roegen in 1971. Following this we explain the importance of thermodynamics for environmental policy. We conclude with a summary. In diesem Beitrag stellen wir einen Weg vor, der es erlaubt, grundsätzliche Aussagen darüber zu treffen, dass wirtschaftliches Handeln schädliche Auswirkungen auf die Umwelt mit sich bringt. Diese Auswirkungen sind naturwissenschaftlich bedingt und treten insbesondere in der industrialisierten Wirtschaft auf. Ausgangspunkt unserer Überlegungen ist, dass jedes wirtschaftliche Handeln Energie benötigt, von der es viele verschiedene Formen gibt. Unter Berücksichtigung all dieser Formen kommt der Wärmeenergie eine besondere Bedeutung zu, da andere Energieformen nie isoliert, sondern nur in Verbindung mit der Wärmeenergie auftreten können. Aus diesem Grund wird der Zweig der Physik, der sich hauptsächlich mit Energie beschäftigt, Thermodynamik genannt. Das Studium der Thermodynamik stellt die zentrale Verbindung zwischen wirtschaftlicher Tätigkeit und ihren Auswirkungen auf die Umwelt her. Das Verständnis grundlegender Erkenntnisse der Thermodynamik ermöglicht es Entscheidungsträgern in der Umweltpolitik, das Entstehen von Umweltproblemen zu verstehen und mögliche Lösungen zu entwickeln. Zunächst befassen wir uns mit dem Zusammenhang zwischen physikalischer Arbeit und Wärme. Dann erläutern wir die beiden Hauptsätze der Thermodynamik und gehen ausführlich auf das Konzept der Entropie ein. Zur Veranschaulichung des Entropiekonzepts verwenden wir den Boltzmann'schen Ansatz des Ordnungsgrades. Anschließend wenden wir uns der Betrachtung der Thermodynamik in den Wirtschaftswissenschaften zu, die erstmals von Georgescu-Roegen im Jahr 1971 vorgelegt wurde. Anschließend erläutern wir die Bedeutung der Thermodynamik für die Umweltpolitik. Wir schließen mit einer Zusammenfassung.
    Keywords: Classical Mechanics; Joint Production; Environmental Problems; Thermodynamics; Energy; Entropy; Irreversibility; Efficiency
    Date: 2023–02–14
  5. By: Phoebe Koundouri; Nikitas Pittis (University of Piraeus, Greece); Panagiotis Samartzis
    Abstract: Economic rationality demands the decision maker (DM)'s degrees of beliefs to be coherent, that is to obey the rules of probability calculus. This view is usually referred to as Probabilism. Among the various justifications of Probabilism, the Dutch Book Argument (DBA) occupies a prominent place. DBA purports to show that DM's aversion to sure financial losses is sufficient to ensure that her beliefs are coherent. A tacit assumption of DBA is that DM is capable to implement a heuristic error-correction process, ECC, that yields rational beliefs. The main aim of this paper is to challenge this assumption. In order for DBA to be convincing, ECC must empower DM to detect each and every Dutch Book that may be made against her, no matter how complex this Book turns out to be. A complex Dutch book is one that requires very sophisticated calculations before its financial consequences are deduced. In the presence of complex Dutch Books, the only point that DBA makes clear is that DM has to be 'computational omnipotent' on pain of incoherence.
    JEL: C44 D81 D83 D89
    Date: 2023–02–20

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