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on History and Philosophy of Economics |
| By: | Massimo Cervesato (Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | In this paper, we aim to shed new light on the methodology that Elinor Ostrom used to study real institutional situations by analyzing the specific theoretical influences that led her to mobilize the notion of complexity. We show the hitherto neglected decisive influence on her work of the "sciences of the artificial", a term coined by the political scientist, economist and precursor of systems thinking, Herbert A. Simon. On several occasions, Ostrom described Simon's book The Sciences of the Artificial as the precursor of a new methodology upon which she relied to understand the most complex system of all: human society. We thus demonstrate that the systems-engineering approach, in particular as established by Simon, played a greater role in Ostrom's work than is usually assumed. This way, we expect to provide a more precise understanding of the notion of complexity she used and the methodological choices that resulted from it. In so doing, we also illustrate how an interdisciplinary approach based on the notion of complexity can concretely be used in institutional economics |
| Keywords: | Ostrom (Elinor); complexity; Economic Methodology; Simon (Herbert A.); Systems Science; Institutional Analysis |
| JEL: | B25 B31 B41 B52 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:mse:cesdoc:25007 |
| By: | Mathieu Guigourez (Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | Individual actions – and individual responsibility – in regard to climate-related issues are often overlooked because they have a negligible impact at the global scale. Yet, despite having little to no impact, some people commit themselves to reducing their carbon footprint; that is, they are willingly choosing to adapt their consumption despite having no tangible impact on the issue they are tackling. Our aim is to question the permeability of economic rationality with moral (individual) responsibility at stake in climate-related issues. We provide an account of a possible bridge between deontological obligations and utility-maximisation in three different frameworks, namely Senian commitment, Kantian economics and choice under unresolved valuations conflicts. This analysis of different frameworks incorporating deontological motives in Rational Choice Theory analytically grounds individual commitments without relying on political enforcements or monetary incentives |
| Keywords: | Rational Choice Theory; Amartya Sen; Individual Responsibility; Kantian Economics; Normative Uncertainty; Commitment; Climate Ethics; Normative Decision Theory |
| JEL: | B41 D01 D72 D81 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:mse:cesdoc:25002 |
| By: | Jose Luis Oreiro |
| Abstract: | The current article has two main objectives. The first one is to make a historical reconstruction of the debate between Keynes and Classical economists in the period just after the publication of the General Theory (1937-1939) in order to highlight the differences between Liquidity Preference and Loanable funds theory of interest rate determination. In opposition of what seemed to be a consensus in economic literature (See Oreiro, 2001), both theories had very different implications about the nature of the rate of interest and the role of money in economic process. The second objective is to build a simple Keynesian Stock-Flow consistent model for the funding stage of the process of capital formation, represented by the Finance-Investment-Saving-Funding circuit. This simple model makes clearly that long-term interest rate for corporate bonds is a strict monetary variable, being dependent of liquidity preference of households and the monetary policy conducted by the Central Bank. In such framework, an increase in the households´ s propensity to save will increase, rather then decrease, the long term interest rate over corporate debt since it will decrease corporate profits which are the main source of internal funding for firms´ s investment plans, forcing then to issue more corporate debt in order to get the money required for funding investment, thereby reducing the price of corporate bonds and hence increasing the rate of interest over corporate debt. |
| Keywords: | : John Maynard Keynes, Liquidity Preference, Capital Formation, Finance and Funding. |
| JEL: | E10 E12 E44 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2509 |
| By: | Fernández Nuez, Berta |
| Abstract: | In tackling knowledge structures and power injustices that would allow for each one of us to live better lives, data – its uses, constructions and consequences – has become a factor of change. In this paper, the consideration of data justice takes a new road in the inquiry of the nature of wellbeing and justice. Using the capability approach, first, the paper discusses the constraints of agentic elements within individual justice. Secondly, inserted among traditional debates of wellbeing, life-satisfaction approaches are pinpointed to secure a definition of what means to live well within each one of ours perceptions. By reviewing these incongruencies in the applicability of the capability approach within data justice frameworks, the paper seeks to establish the consequences of taking an ‘emotional distance’ in the inquiry of people’s wellbeing and justice. By accounting for the need of more humanistic ways of analysis, the paper stands on the strengths of the sensorium as a scope that considers an unlimited array of points of entry for thinking, sensing and being. This paper anticipates new possibilities for data representation by focusing on ‘data futures’ that welcome creative, sensorium knowledge-making. These possibilities go beyond mainstream Western epistemologies and ontologies and instead, focus on more inclusive and contextual world-making practices. |
| Keywords: | data justice, wellbeing, capability approach, sensorium, data futures |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:iob:wpaper:2025.01 |