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on History and Philosophy of Economics |
| By: | S. Pridiksha (Corresponding Author, Madras School of Economics (MSE), Chennai); T. Archana (MSE) |
| Abstract: | In the late 19th century, with growing criticism of the classical school of economics of ignorance of microeconomics, Leon Walras, one of the pioneers of the 1871 Marginalist Revolution, founded the Lausanne school of economics (Ecole de Lausanne). With an emphasis on mathematics, this school attributes all economic activity to the choices and actions of individuals. The central feature of the school is the concise formal description of ideas with mathematical notation which was lacking in classical economy. Lausanne school economists such as Leon Walras, Vilfredo Pareto, and others formulated and improved principles and theories such as general equilibrium theory, Pareto optimality, the 80-20 rule, the circulation of elites, ordinal utility and so on. The paper critically examines these ideas and their evolution. This paper explains the general equilibrium theory developed by Walras, breaking through the misconceptions revolving around unrealistic assumptions. With the focus on welfare economics, the principles of Pareto of Lausanne school had profoundly impacted public policy, the highlights and challenges of this impact is analysed. The aim of reviving Walras’s ideas from enigma led to further development in economics by Irving Fischer, Cassel, Wicksell. Paretian “taste and obstacles” approach was also advanced by Slutsky and W.E.Johnson. The abandonment of walras’s theories is the crucial cause of contemporary financial crisis , thus, Lausanne tradition is alive, kicking and highly relevant in the contemporary world. |
| Keywords: | Economic thought, Neoclassical, Leon Walras, Vilfredo Pareto, Wicksell, Cassel |
| JEL: | B3 B31 B16 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:mad:wpaper:2023-249&r=hpe |
| By: | Levy, David M. |
| Abstract: | Review of “Adam Smith’s America: How a Scottish Philosopher Became an Icon of American Capitalism” by Glory M. Liu. |
| Date: | 2024–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:47ed3&r=hpe |
| By: | Faudot, Adrien |
| Abstract: | Review of “Robert Triffin: A Life” by Ivo Maes. |
| Date: | 2024–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:wtfdb&r=hpe |
| By: | Collins, Hugh |
| Abstract: | This article explores the idea that the moral standards of relational or interpersonal justice can be used to lay the foundations for a theory of justice in work, rather than relying on principles of justice developed for society as a whole in philosophical theories of distributive justice. It is argued that a rich and distinctive scheme of interpersonal justice can be developed by using a method of internal critique and by focusing on two distinctive features of contracts of employment. Because they are incomplete by design, like other relational contracts, contracts of employment depend for their success on a broad obligation of performance in good faith. Contracts of employment also usually function within organizations which provide the source of customary norms of associational justice that govern relations between members of the firm. These principles of associational justice include rewards based on desert, a strong egalitarian principle, protection from unjustified exclusion, and a right to have a voice in the affairs and the direction of the organization. |
| Keywords: | De Gruyter deal |
| JEL: | R14 J01 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118476&r=hpe |
| By: | Ghislain Deleplace (LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8 Vincennes-Saint-Denis) |
| Abstract: | The aim of my contribution is at analysing the impact of a large-scale war of long duration on the monetary system and monetary thought. The case is that of England during and in the aftermath of the Revolutionary and Napoleonic wars with France (1793-1815). These wars provoked a major shock in the English monetary system: the Bank of England note was made inconvertible during more than twenty years and in 1813 the pound sterling had depreciated by one-third in terms of gold. After Waterloo, it took the pound four years to regain its value in gold, in the midst of a severe economic depression. However, the pre-war monetary system was resumed in 1821: the quarter-of-a-century parenthesis was simply closed. This return to "money as usual" was not for want of intense debates: it was the time of the "Bullionist Controversy" featuring among others Henry Thornton and David Ricardo. This case thus leads to a rather pessimistic conclusion: even a major shock like a long-lasting war seems to have no significant impact on either the monetary system or monetary thought. My contribution intends to account for this paradox. Publication: Deleplace, G. (2024 a), "Storm in a Teacup? The Impact of War on the English Monetary System and Thought (1797-1821), " in Marcuzzo, M. C. and Rosselli, A. (eds.), Money in Times of Crisis. Pre-Classical, Classical and Contemporary Theories, Roma: Accademia Nazionale dei Lincei Proceedings, à paraître. |
| Keywords: | Napoleonic wars, English monetary system, Ricardo, Thornton |
| Date: | 2022–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04429477&r=hpe |
| By: | Eckhard Hein; Hagen M. Krämer |
| Abstract: | This paper examines the challenges of achieving and sustaining full employment in a global economy, as discussed by Michał Kalecki and John Maynard Keynes. Its aim is to analyse the common perspectives and differences between Kalecki and Keynes on this issue. The paper first examines the basic views of Kalecki and Keynes on long-term employment issues. This contains comparing their respective considerations of political economy constraints to full employment. Then Kalecki’s and Keynes’s views on the constraints in open economies and the economic policy strategies they proposed are assessed. The paper points out Kalecki’s advocacy for public deficit spending and income redistribution for achieving full employment, which slightly differs from Keynes's emphasis on stimulating investment, including partial socialisation. Regarding power relations, Kalecki focussed on the conflict between capital and labour, calling for ‘crucial reforms’ like nationalisation of key industries, while Keynes highlighted the conflict between financial and industrial capital. Both shared a nuanced view of globalisation, but differences emerge when discussing the Keynes Plan. Keynes aimed to prevent deflation in the international monetary system, while Kalecki stressed long-term international lending for sustaining full employment. Both economists underscored the importance of international conditions for achieving full employment, emphasizing the need for a balance of payments equilibrium over strictly balanced current accounts. |
| Keywords: | Full employment, global economy, John Maynard Keynes, Michał Kalecki |
| JEL: | E11 E12 E61 F41 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2404&r=hpe |
| By: | Barbara Petrongolo |
| Abstract: | The study of gender was far from mainstream in economics when Claudia Goldin began her research on women and work in the 1980s. Barbara Petrongolo discusses the impact of the 2023 economics Nobel laureate in shaping today's research frontier on gender inequalities - from public policy to the stereotypes and social norms that have such a powerful influence on women's participation in the labour market. |
| Keywords: | gender, equality, public policy, labour markets |
| Date: | 2024–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:671&r=hpe |
| By: | Ignacio P. Campomanes |
| Keywords: | Rule of law, Democracy, Economic Freedom, Institutions. |
| JEL: | O43 E02 P16 K10 H11 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nva:unnvaa:wp01-2024&r=hpe |
| By: | Lucas Girard; Yannick Guyonvarch |
| Abstract: | In the 1990s, Joshua Angrist and Guido Imbens studied the causal interpretation of Instrumental Variable estimates (a widespread methodology in economics) through the lens of potential outcomes (a classical framework to formalize causality in statistics). Bridging a gap between those two strands of literature, they stress the importance of treatment effect heterogeneity and show that, under defendable assumptions in various applications, this method recovers an average causal effect for a specific subpopulation of individuals whose treatment is affected by the instrument. They were awarded the Nobel Prize primarily for this Local Average Treatment Effect (LATE). The first part of this article presents that methodological contribution in-depth: the origination in earlier applied articles, the different identification results and extensions, and related debates on the relevance of LATEs for public policy decisions. The second part reviews the main contributions of the authors beyond the LATE. J. Angrist has pursued the search for informative and varied empirical research designs in several fields, particularly in education. G. Imbens has complemented the toolbox for treatment effect estimation in many ways, notably through propensity score reweighting, matching, and, more recently, adapting machine learning procedures. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.13023&r=hpe |
| By: | Midtgård, Kenneth; Selart, Marcus |
| Abstract: | This paper examines to what degree organizations use strategies that focus on maximizing shareholder value (Theory E) or if they use strategies emphasizing the development of organizational capability (Theory O). Applying a cognitive perspective in strategic choice, our main goal was to investigate to what extent cognitive biases influenced strategic choices. A survey was developed that measured different aspects of the cognitive perspective in strategic choice. It was distributed to managers of several medium-sized organizations in Scandinavia (n = 119). The results indicated that managers used mixed strategies (Theory E and O) contrary to recommendations. Results also revealed that illusions of control together with beliefs about change processes skewed the application of strategies towards Theory E. Theoretical and practical implications of the results were finally discussed enlightening the cognitive perspective in strategic choice. |
| Date: | 2024–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:4xpza&r=hpe |
| By: | Heng-fu Zou |
| Abstract: | The trinity of liberty, the rule of law, and private property are inter- connected principles that form the foundation of a free and just society. Each element depends on the others to ensure the protection of individual rights and the proper functioning of legal and political institutions. |
| Date: | 2024–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:cuf:wpaper:623&r=hpe |