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on History and Philosophy of Economics |
| By: | Davis, John B.; Boianovsky, Mauro; (Department of Economics Marquette University; Department of Economics Marquette University) |
| Abstract: | Douglass North was central to the emergence of New Institutional Economics. Less well known are his later writings where he became interested in complexity theory. He attended the second economics complexity conference at the Santa Fe Institute in 1996 on how the economy functions as a complex adaptive system, and in his 2005 Understanding the Process of Economic Change incorporated this thinking into his argument that market systems depend on how institutions evolve. North also emphasized in the 2005 book the role belief played in evolutionary processes, and drew on cognitive science, especially the famous ‘scaffolding’ idea of cognitive scientist Andy Clark – the idea that the brain and the world ‘collaborate’ to address our computational and informational needs. This chapter discusses how North’s thinking about institutions and change reflected these later investigations. It concludes with comments on his late thoughts about the problem of violence. |
| Keywords: | Douglass North, New Institutional Economics, complexity theory, cognitive science, scaffolding, Andy Clark, violence |
| JEL: | B20 B30 B41 B52 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:mrq:wpaper:2024-01&r=hpe |
| By: | Michele Bee (University of Salento [Lecce]); Raphaël Fèvre (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur) |
| Abstract: | This paper aims to exploit fully the heuristic virtues of Keynes' famous ‘old bottles' story, deploying a multi-layered argument and drawing out its broadest implications. In essence, we show that through this story Keynes was making a very serious point about anti-crisis policies: the need for authorities to stimulate animal spirits by relying on people's natural impulse to action. Rather than taking the place of entrepreneurs and paying people to dig holes, Keynes seems to be arguing that public authorities should put entrepreneurs in a situation where they are so enthusiastic that they go into debt to dig holes, just like during a gold rush. At the same time, it is a question of restoring the banks' willingness to lend for these overoptimistic projects in a period of total depression. This article explores the conditions that make public intervention as effective as possible through the enthusiasm and individual initiative that can be generated by an artificial gold rush. Such intervention therefore can be as minimal as possible, without having to resort to the opposite authoritarian solution of war. Since the gold rush builds cities and war destroys them, Keynes spent considerable energy convincing his contemporaries that liberal-democratic countries would have to take the former path if they wanted to avoid the latter. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04414654&r=hpe |
| By: | Roland Bénabou; Armin Falk; Luca Henkel |
| Abstract: | Choosing what is morally right can be based on the consequences (ends) resulting from the decision – the Consequentialist view – or on the conformity of the means involved with some overarching notion of duty – the Deontological view. Using a series of experiments, we investigate the overall prevalence and the consistency of consequentialist and deontological decision-making, when these two moral principles come into conflict. Our design includes a real-stakes version of the classical trolley dilemma, four novel games that induce ends-versus-means tradeoffs, and a rule-following task. These six main games are supplemented with six classical self-versus-other choice tasks, allowing us to relate consequential/deontological behavior to standard measures of prosociality. Across the six main games, we find a sizeable prevalence (20 to 44%) of nonconsequentialist choices by subjects, but no evidence of stable individual preference types across situations. In particular, trolley behavior predicts no other ends-versus-means choices. Instead, which moral principle prevails appears to be context-dependent. In contrast, we find a substantial level of consistency across self-versus-other decisions, but individuals’ degree of prosociality is unrelated to how they choose in ends-versus-means tradeoffs |
| Keywords: | morality, deontological, consequentialist, Kantian, ends-versus-means, trolley dilemma, prosocial, altruism, social preferences |
| JEL: | C91 D01 D64 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_499&r=hpe |
| By: | CHINNOCK, Rylan; VENEZIANI, Roberto; YOSHIHARA, Naoki |
| Abstract: | In this paper we review recent developments in axiomatic studies of Marxian exploitation theory. First, given the acute controversy over the formal definition of exploitation during the 1970-1990s, we review the study of the axiomatic framework, which identifies some fundamental properties – technically, domain conditions – that any definition of exploitation should satisfy. Moreover, we provide a survey on the axiomatic studies about the proper measures of exploitation which coherently preserve the basic Marxian perceptions represented by two axioms, Profit-Exploitation Correspondence Principle and Class-Exploitation Correspondence Principle. Finally, we examine the relevance of the labour theory of value in these axiomatic studies of the proper measures of exploitation. |
| Keywords: | Axiomatic analysis, Labour Exploitation, Profit-Exploitation Correspondence Principle, Class-Exploitation Correspondence Principle, Labour Theory of Value |
| JEL: | D63 D51 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hituec:754&r=hpe |
| By: | Guidorzzi Girotto, Vitor; Strachman, Eduardo |
| Abstract: | The relationship between money and credit is analyzed differently between schools of economic thought. Orthodoxy, in general, analyzes it using the commodity money approach; heterodoxy, in large part, adopts the Chartist approach. The crucial difference between them lies in the fact, as put by Schumpeter, that orthodoxy postulates a monetary theory of credit; the heterodox, a credit theory of money. For the latter, money is, by nature, credit, and it can take different forms, tangible or not. The State uses it sovereignty to delimit the monetary system by defining what will (or will not) be accepted as money in the payments of transactions due to itself. Thus, Knapp’s contribution in structuring a theory of state money meets Innes’s credit theory of money and, together, these contributions offer a solid theoretical and historical framework for the formulation of an alternative theory of money, the Chartist theory. |
| Keywords: | Money; Chartalism; Credit; Knapp; Innes. |
| JEL: | E12 E42 E51 |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119866&r=hpe |
| By: | András Simonovits (HUN-REN Centre for Economic and Regional Studies, BME MI) |
| Abstract: | John von Neumann (Budapest, 1903–Washington D.C., 1957) was an exceptional polymath, who made fundamental contributions to mathematical logics, functional analysis, quantum mechanics, game theory, computer architecture and automata theory. In this brief paper, I shall review the game-theoretic results of von Neumann and their legacy in an informal way. |
| Keywords: | Keywords: game theory |
| JEL: | B16 C7 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:has:discpr:2401&r=hpe |
| By: | Dold, Malte; Krieger, Tim |
| Abstract: | For several decades, what has been called the "liberal cosmopolitan-minded urban elites" set the political agenda of Western democracies (Dold and Krieger 2019a). They aimed at personal freedom and upward social mobility by means of a meritocratic system that was safeguarded by a combination of a competitive market economy, a liberal and open democracy, and the rule of law (Fuest 2018). These elites welcomed the opening of the Iron Curtain as the "end point of mankind's ideological evolution and the universalization of Western liberal democracy" (Fukuyama 1989, 4). However, political realities have challenged this perspective severely in recent years (Dold and Krieger 2019a). Around the globe, but especially in the liberal Western market democracies - i.e., societies in which "markets and democracy have coexisted quite healthily" in the post-World War II era (Chua 2000, 289) - populist movements have gained prominence in public discourse and in some cases even won elections (e.g., in Hungary, the Netherlands, Italy, Poland, or Sweden). There is ongoing debate over the causes of the rise of populist movements in the early 21st century (Gidron and Hall 2017; Guiso et al. 2017; Inglehart and Norris 2017; Mudde and Kaltwasser 2017). While important, our chapter will touch upon this debate only in passing, though, and instead focus on the consequences of populism's rise; in particular, we will ask how to deal with the populist challenge to the liberal order. We do so in three steps, thereby referring to one specific liberal conception, ordoliberalism. Considering ordoliberalism is instructive because, on the one hand, it strives for a "functioning and humane order of the economy, society, law, and the state" (Eucken 1990 [1952], 373; our italics), which is a much broader idea of liberalism than pure economic liberalism. On the other hand, critics argue that ordoliberalism has failed on following up on its own agenda (Dold and Krieger 2019b and 2023). They believe that ordoliberalism is the culprit of various misguided developments since the Eurozone crisis of 2009, which then provided a breeding ground for populism (Algan et al. 2017; Dold and Krieger 2019a). In their view, this is also related to ordoliberalism's - alleged - preference of the rule of law and economic freedom over democratic decision-making. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wgspdp:281997&r=hpe |
| By: | Cantone, Giulio Giacomo |
| Abstract: | Interdisciplinary research is defined as a trait of those research activities that integrate different disciplinary traditions with the aim of reaching novel forms of knowledge that are beyond the reach of a singular discipline. From this theory, a plurality of methods has been developed to measure IDR of a body of research. These methods lead to mutually contradicting results. In this review, the most relevant measures of interdisciplinary research are compared under a unified framework articulated in three steps: identification of an available stylisation of bibliometric facts, elicitation of a formula, and definition of an estimator for the collective unit of analysis. In particular, it is discussed how the concept of integration can be measured when the unit of analysis is an atomic and static entity like a paper, as opposed to journals and authors, which are collective and dynamic agents. In the conclusive section, an isometric view is shown that combines different units of analysis and conceptualisations. A pluralistic yet pragmatic approach is advocated for the operational definition of interdisciplinarity. |
| Date: | 2024–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:osf:metaar:hva4p&r=hpe |
| By: | Joseph E. Stiglitz; Andrew Kosenko |
| Abstract: | We survey aspects of the intellectual development of the economics of information from the 1970s to today. We focus here on models where information is communicated indirectly through actions. Basic results, such as the failure of the fundamental theorems of welfare economics, the non-existence of competitive equilibrium, and the dependence of the nature of the equilibrium, when it exists, on both what information is available, and how information can be acquired, have been shown to be robust. Markets create asymmetries of information, even when initially none existed. While the earliest literature paid scarce attention to misinformation, subsequently it has been shown that governments can improve welfare, if disinformation is present, through fraud laws and disclosure requirements. Moreover, robust mechanism design enables agents and governments to better achieve their objectives, taking into account information asymmetries. On the other hand, market reforms that ignored their informational consequences may have lowered welfare. Surveying both theory and applications, we review the main insights of these literatures, and highlight key messages using nontechnical language. |
| JEL: | D82 D86 D9 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32049&r=hpe |
| By: | Thomas Grandjean (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Between 1945 and 1982, the Alsace region underwent a major industrial transformation, characterised by the destruction of its traditional production structures (textile industry, mechanical engineering) and by the emergence of a new economy driven by foreign investment and encouraged by the development of cross-border cooperation. Against this backdrop, Sogenal, Société Générale's Rhineland subsidiary founded in 1881, established itself as the region's leading corporate bank, supporting the growth of new activities. This policy was pursued by a group of active administrators who had a fine-grain understanding of the region's economic development. Drawing on from a varied corpus of archival material (board of directors' files, staff files, economic reports) and focusing on an analysis of the views of Sogenal's administrators, this study demonstrates the ways in which the bank influenced the region's economic activity, while creating a relationship of reciprocal dependence with local industrial dynamics. |
| Abstract: | Entre 1945 et 1982, l'Alsace connaît une grande mutation industrielle caractérisée d'une part par une destruction de ses structures productives traditionnelles (textile, construction mécanique) et d'autre part par l'émergence d'une nouvelle économie portée par des investissements exogènes et favorisée par une coopération transfrontalière en construction. Dans ce contexte, la Sogenal, filiale rhénane de la Société Générale fondée en 1881, s'impose comme la première banque d'entreprise régionale, en accompagnant l'essor de nouvelles activités. Cette politique est menée par un groupe d'administrateurs actifs, qui disposent d'une vision fine de l'évolution économique de la région. À partir d'un corpus d'archives varié (dossiers du conseil d'administration, dossiers du personnel, rapports économiques) et en privilégiant une analyse des points de vue des administrateurs de la Sogenal, cette étude montre de quelles manières la banque influence l'activité économique de la région tout en s'inscrivant elle-même dans une relation de dépendance réciproque avec les dynamiques industrielles locales. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04387991&r=hpe |
| By: | St\'ephane Goria (Crem) |
| Abstract: | The 20th century saw the emergence of an intermediate level of consideration, situated between the tactical and strategic levels: the operational level. This level of scale is that of a large area of operations, that is to say coordinated engagements bringing together forces belonging to different corps over a considerable geographical distance. In this article, we approach operatics and its implementation, called operative art or operational art, first from its contributions to military thinking, then we transpose what can be transposed beyond this domain. We consider operative art as a new point of view generating a particular thought and solutions based on agile systems, but which may have reached their limits. We will limit ourselves here to the question of the potential contributions of the operatic perspective to understand or implement a set of actions related to competitive or economic warfare. To do this, we will begin by providing some answers to the question of what operatic military is in terms of its characteristics. Then, we propose a way to transpose them in the context of companies preferably confronted with a context of competitive or economic warfare by taking as an example the acquisition of the essential activities of the company Alstom by the company General Electric (GE). |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.02963&r=hpe |
| By: | Michel-Pierre Chélini (CREHS - Centre de Recherche et d'Etudes - Histoire et Sociétés - UA - Université d'Artois) |
| Abstract: | Prices are an essential component of markets and incorporate a lot of information about the products or services exchanged. From 1940 to 1986 there existed in France at the Ministry of the Economy and Finance a price control administration, the essential justification of which was France's propensity for inflation higher than that of its partners: 5.4 % on annual average from 1950 to 2000 compared to 4% for the United States or 2.8% for the FRG. The service was first called Economic Control, then evolved in stages until in 1986 it became Directorate-General for Competition, Consumption and Fraud Repression, gradually moving from vigilant monitoring of prices to their contractual regulation and finishing in competition policy |
| Abstract: | Les prix sont une composante essentielle des marchés et intègrent beaucoup d'informations sur les produits ou les services échangés. De 1940 à 1986 a existé en France auprès du ministère de l'Économie et des Finances une administration d'encadrement des prix, dont la justification essentielle était la propension de la France à une inflation supérieure à celle de ses partenaires : de 5, 4 % en moyenne annuelle de 1950 à 2000 contre 4 % pour les États-Unis ou 2, 8 % pour la RFA. Le service s'est d'abord appelé Contrôle économique, puis a évolué par étapes jusqu'à devenir en 1986 direction générale de la Concurrence, de la Consommation et de la Répression des Fraudes, passant progressivement d'une surveillance vigilante des prix à leur régulation contractuelle et finissant en politique de la concurrence |
| Keywords: | Prices regulation, Inflation policy, France 1940-1990 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04399936&r=hpe |