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on History and Philosophy of Economics |
| By: | Robert W. Dimand (Brock University [Canada]); Christian Walter (LAP - Laboratoire d’anthropologie politique – Approches interdisciplinaires et critiques des mondes contemporains, UMR 8177 - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The Nobel Prize-winning work of Harry Markowitz (1952, 1959) at the Cowles Commission and Cowles Foundation established optimal portfolio diversification (minimizing risk for a given expected return) as central to financial theory. Much less attention has been given to the first Cowles Commission study to show that diversification reduced portfolio risk: Dickson Leaven's article "Diversification of Investments" (published in Trusts and Estates, 1945). Leavens, a statistician on the Cowles Commission staff and author of a Cowles monograph on silver money, came to this insight as the result of computing returns on twenty randomly-selected portfolios for Alfred Cowles to use in Cowles's 1944 Econometrica article "Stock Market Forecasting, " which argued that, with one apparent exception, stock market forecasters had failed to out-predict random portfolios. We present Leavens' little-known contribution and explore his role in the development of financial economics at the Cowles Commission. |
| Keywords: | Portfolio choice, diversification, Alfred Cowles, Cowles Commission, Dickson Leavens, Harry Markowitz |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05148912 |
| By: | Jose Luis Oreiro; Kleydson J. G. Feio; Bruno Matelli; Isadora E. S. Quaresma |
| Abstract: | This paper analyses the evolution of Dani Rodrik’s thinking on economic development and industrialization between 2004 and 2024, a period during which his vision shifted from an industrialization-centred perspective to a more nuanced and multidimensional approach. The study examines how his understanding of the role of manufacturing and services in economic development was transformed due to contemporary challenges, including premature deindustrialization, technological change, and environmental imperatives. Through a systematic analysis of his major works, the paper identifies three distinct phases in his thinking: early (2004-2013), focused on industrial and exchange rate policies; middle (2015-2016), marked by the recognition of premature deindustrialization; and recent (2019-2024), characterized by an emphasis on the services sector and adaptive policies. The first two phases of Rodrik´s thinking had as common trace a growing convergence with many of the ideas developed by New-Developmentalist authors. In the last phase, however, Rodrik’s intellectual evolution reflects a return to more neoclassical tenets as compared to the more new-developmentalist approach of his early thinking due to a growing pessimism about industrialization as the main driver for economic development. |
| Keywords: | Exchange rate, Industrialization, Economic Development, Dani Rodrik |
| JEL: | O11 O14 O24 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2517 |
| By: | Susana Santos |
| Abstract: | The contribution of Richard Stone (1913-1991) to the development of national accounts, awarded him with the Nobel Prize in Economics in 1984. In the scope of the first versions of the system of national accounts (SNA), conceived under his chairmanship, his attention was mainly focused on the production and consumption of goods and services. However, the distribution and redistribution of income was also addressed by him, in a way that, from our point of view, continues to make sense. This perception motivated its adoption as the basis for the interpretation and adaptation to the latest versions of the SNA, now presented. Thus, after the measurement of the income generated in the production of goods and services and its distribution through the institutional sectors, a chain of redistribution is developed into four rounds. The description, accompanied by a numerical example, involves the so-called distributive transactions of the national accounts and ends with the identification of the institutional sectors’ use of income in goods, services and non-produced non-financial assets. A possible approach based on a so-called social accounting matrix (SAM) is also briefly presented, as a possible tool to measure and model the economic activity of a country, with emphasis on our topic. This is, in turn, an interpretation and adaption of the approaches of Graham Pyatt (1936-2023) and his associates. |
| Keywords: | Income distribution and redistribution; national accounts; social accounting matrix. |
| JEL: | E01 E16 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp03862025 |
| By: | De Beer, Pieter |
| Abstract: | The global system we inhabit is often described in terms of markets, capital, and labor, but beneath these abstractions lies the deeper question of how coordination produces power and how power organizes coordination. Among the most influential traditions attempting to answer this question are Marxism and Capital as Power (CasP), two frameworks that, while sharing certain roots, diverge sharply in their interpretation of what capital is and how it operates. This divergence has led to ongoing tension. Marxists often argue that CasP misrepresents or abandons the core of Marx’s critique, while CasP theorists argue that Marxism remains tethered to outdated economic metaphysics. Both claim to reveal capitalism’s inner workings. But must we choose between them? *** This essay argues that we do not. Through the lens of Coordination: the Fabric of Power (CfP), a broader theoretical framework that views coordination itself as the primary material of power, we can move beyond this impasse. Rather than asking whether capital is labor-time or capitalization, CfP reframes the question: How is coordination patterned, withheld, or manipulated in ways that produce asymmetries of power? In doing so, it offers a synthesis that integrates the structural insights of Marxism with the empirical clarity of CasP, not by erasing their differences, but by metabolizing their strongest claims. |
| Keywords: | coordination, capital as power, capitalization, differential accumulation, domination, fabric of power, labour, Marxism, mode of power, production, sabotage, surplus value |
| JEL: | P16 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:323254 |
| By: | François Destandau (SAGE - Sociétés, acteurs, gouvernement en Europe - ENGEES - École Nationale du Génie de l'Eau et de l'Environnement de Strasbourg - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ENGEES - École Nationale du Génie de l'Eau et de l'Environnement de Strasbourg) |
| Abstract: | The question of spatially differentiated pollution policies first appeared in the economic literature in the early 1970s. For the past 50 years, economists have considered how best to introduce location-specific pollution policies such as Pigovian taxes or tradable permits, and on the basis of which site-specific attributes (polluter characteristics, pollution diffusion, environmental objective, etc.). This article reviews the questions raised and the theoretical results obtained. The central question is when to take account of the local characteristics and when to apply a uniform policy. Through this question, the authors seek to improve environmental policies to fight pollution more effectively. |
| Keywords: | Spatialized Regulation, Pollution, Tradable Permits, Pigovian Taxation, Spatialized Regulation Pollution Tradable Permits Pigovian Taxation |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05156444 |
| By: | Zeqiang Zhang; Ruxin Chen |
| Abstract: | The application of Reinforcement Learning (RL) to economic modeling reveals a fundamental conflict between the assumptions of equilibrium theory and the emergent behavior of learning agents. While canonical economic models assume atomistic agents act as `takers' of aggregate market conditions, a naive single-agent RL simulation incentivizes the agent to become a `manipulator' of its environment. This paper first demonstrates this discrepancy within a search-and-matching model with concave production, showing that a standard RL agent learns a non-equilibrium, monopsonistic policy. Additionally, we identify a parametric bias arising from the mismatch between economic discounting and RL's treatment of intertemporal costs. To address both issues, we propose a calibrated Mean-Field Reinforcement Learning framework that embeds a representative agent in a fixed macroeconomic field and adjusts the cost function to reflect economic opportunity costs. Our iterative algorithm converges to a self-consistent fixed point where the agent's policy aligns with the competitive equilibrium. This approach provides a tractable and theoretically sound methodology for modeling learning agents in economic systems within the broader domain of computational social science. |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2507.18229 |
| By: | Hedtke, Reinhold |
| Abstract: | This article outlines the principal characteristics of the Socioeconomic Curriculum (Das Sozioökonomische Curriculum), which was developed by Reinhold Hedtke (2018) and forms part of the transformative movement of socio-economic education in the field of economic education. The concept offers a concrete illustration of how economic education can be innovatively rethought and practically implemented in schools. Because the SEC designs economic education in a problem-oriented and integrative way, and because it conceptually links society, economy and politics, the SEC is well suited for approaches to education in a transformative context. This is also supported by its transformative notion of education. The curriculum is presented in three sections. Firstly, the core principles of the SEC are elucidated, with particular emphasis on its conceptual framework and the multifaceted dimensions of the subject area ‘economy’ (2). Subsequently, select key elements are presented as illustrative examples, including its curricular core elements, content areas, and competences (3). Finally, the text utilises problem-oriented lesson planning and a planning grid to demonstrate the practical application of the SEC. This is followed by some concluding considerations (5). |
| Abstract: | Dieser Artikel skizziert die Hauptmerkmale des Sozioökonomischen Curriculums (Das Sozioökonomische Curriculum), das von Reinhold Hedtke (2018) entwickelt wurde und Teil der transformativen Bewegung der sozio-konomischen Bildung im Bereich der wirtschaftlichen Bildung ist. Das Konzept bietet eine konkrete Veranschaulichung, wie wirtschaftliche Bildung innovativ neu gedacht und in der Schule praktisch umgesetzt werden kann. Da das SÖC die Wirtschaftsbildung problemorientiert und integrativ gestaltet und Gesellschaft, Wirtschaft und Politik konzeptionell miteinander verknüpft, eignet es sich gut für Bildungsansätze in einem transformativen Kontext. Dies wird auch durch seinen transformativen Bildungsbegriff unterstützt. Das Curriculum wird in drei Abschnitten vorgestellt. Zunächst werden die Grundprinzipien des SÖC erläutert, wobei der Schwerpunkt auf dem konzeptionellen Rahmen und den vielfältigen Dimensionen des Gegenstandes „Wirtschaft” liegt (2). Anschließend werden ausgewählte Schlüsselelemente als anschauliche Beispiele vorgestellt, darunter die Kernelemente des Curriculums, die Inhaltsbereiche und die Kompetenzen (3). Abschließend wird anhand einer problemorientierten Unterrichtsplanung und eines Planungsrasters die praktische Anwendung des SÖC demonstriert. Es folgen einige abschließende Überlegungen (5). |
| Keywords: | Socioeconomics, economic education, socio-economic education, subject matter didactics |
| JEL: | A20 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:322259 |
| By: | Harrs, Sören; Sterba, Maj-Britt |
| Abstract: | This paper establishes three novel findings on fairness and redistribution by combining theory-driven experimental games with large-scale surveys in the U.S. and five European countries. First, individuals revealing egalitarian, libertarian, or meritocratic fairness preferences in experimental games show large differences in support for tax and transfer policies. Second, beliefs in merit strongly predict policy support among meritocrats, but are less predictive among non-meritocrats. Third, fairness concerns matter across income groups and political camps. Our findings challenge the assumptions that meritocratic preferences are homogeneous, that fairness is a luxury good, and that fairness is mainly a moral foundation of left voters. |
| Keywords: | Fairness, Redistribution, Political Ideology, Moral Foundations |
| JEL: | D31 D63 H24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cexwps:323221 |
| By: | Victor Klockmann (JMU - Julius-Maximilians-Universität Würzburg = University of Würzburg [Würsburg, Germany], Goethe University Frankfurt = Goethe-Universität Frankfurt am Main, Max Planck Institute for Human Development - Max-Planck-Gesellschaft); Alicia von Schenk (JMU - Julius-Maximilians-Universität Würzburg = University of Würzburg [Würsburg, Germany], Goethe University Frankfurt = Goethe-Universität Frankfurt am Main, Max Planck Institute for Human Development - Max-Planck-Gesellschaft); Marie Claire Villeval (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In the field of machine learning, the decisions of algorithms depend on extensive training data contributed by numerous, often human, sources. How does this property affect the social nature of human decisions that serve to train these algorithms? By experimentally manipulating the pivotality of individual decisions for a supervised machine learning algorithm, we show that the diffusion of responsibility weakened revealed social preferences, leading to algorithmic models favoring selfish decisions. Importantly, this phenomenon cannot be attributed to shifts in incentive structures or the presence of externalities. Rather, our results suggest that the expansive nature of Big Data fosters a sense of diminished responsibility and serves as an excuse for selfish behavior that impacts individuals and the whole society. |
| Keywords: | Artificial intelligence, Big data, Pivotality, Distributional fairness, Experiment |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05165240 |
| By: | David de la Croix (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)); Mara Vitale (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES)) |
| Abstract: | 131 popes ruled the Catholic Church from the year 1000 to 1800. Using the database we constructed on early European academia, we find that 21 of them held academic positions prior to their election. We show that these professors who would become popes were not different from non-academic popes in terms of productivity (number of elected cardinals and saints, number of bulls promulgated), but generally came from humbler backgrounds. An interesting pattern emerges: the 21 academic popes were all elected before 1625. From this pattern, we conjecture three complementary explanations. (1) With the Scientific Revolution, early modern universities became more secular or declined compared to their medieval predecessors. (2) The papacy was captured by Roman aristocratic families during the Early Modern Period, which barred outsiders from accessing it. (3) Following the Council of Trent, seminaries provided an alternative path for religious knowledge. |
| Keywords: | Social Mobility, Church and Universities, Human Capital in History, Early Modern Institutions, Historical Political Economy |
| JEL: | N33 I25 D63 |
| Date: | 2025–07–29 |
| URL: | https://d.repec.org/n?u=RePEc:ctl:louvir:2025011 |