nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2005‒12‒09
four papers chosen by
Karl Petrick
Leeds Metropolitan University

  1. Institutions, Institutional Change, Language, and Searle By Dolfsma, W.; McMaster, R.; Finch, J.
  2. The Political Economy of Financial Fragility By Feijen, Erik; Perotti, Enrico C
  3. Inside the Economist's Mind: The History of Modern Economic Thought, as Explained by Those Who Produced It By William Barnett; Paul A. Samuelson; E. Roy Weintraub
  4. Why is economic geography not an evolutionary science? Towards an evolutionary economic geography Model By Ron A. Boschma; Koen Frenken

  1. By: Dolfsma, W.; McMaster, R.; Finch, J. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: This paper endeavours to contribute to the growing institutionalist literature on the conception of the institution. We draw from John Davis? (2003) analysis of the individual in posing the questions: what differentiates institutions, and how can changing institutions be identified through time and space? Our analysis develops Searle?s (2005) argument that language is the fundamental institution. Searle?s argument is rather functionalist, however, and does not convey the ambiguity of language. Moreover, language and understanding, surely when related to most institutions in real life, delineate and circumscribe a community. A community cannot function without a common language, as Searle argued, but language also constitutes a community?s boundaries, and excludes unsavoury outsiders or alien topics for discussion. This is how institutions both constrain and enable. By drawing upon Luhmann?s (1995) systems analysis and notions of discourse, communication, and text we aim to augment the existing analytical role ascribed to habit in institutional analysis. Thus, we submit, understanding institutional change and thus durability may progress.
    Keywords: Institutions;Institutional Change;Language;Discourse Re-Indentification;
    Date: 2005–11–29
  2. By: Feijen, Erik; Perotti, Enrico C
    Abstract: While financial liberalization has in general favourable effects, reforms in countries with poor regulation is often followed by financial crises. We explain this variation as the outcome of lobbying interests capturing the reform process. Even after liberalization, market investors must rely on enforcement of investor protection, which may be structured so as to block funding for new entrants, or limit their access to refinance after a shock. This forces inefficient default and exit by more leveraged entrepreneurs, protecting more established producers. As a result, lobbying may deliberately worsen financial fragility. After large external shocks, borrowers from the political elite in very corrupt countries may successfully lobby for weak enforcement, and retain control of collateral. We provide evidence that industry exit rates and profit margins after banking crises are higher in the most corrupt countries.
    Keywords: entry; exit; financial crises; inequality; political economy; refinancing; strategic default
    Date: 2005–10
  3. By: William Barnett (Department of Economics, The University of Kansas); Paul A. Samuelson (MIT); E. Roy Weintraub (Duke University)
    Abstract: This is the front matter from a book of interviews to be published by Blackwell. The book is coedited by W. A. Barnett and P. A. Samuelson. The front matter includes the Table of Contents, Coeditor Preface by W. A. Barnett, Coeditor Foreword by Paul A. Samuelson, and History of Thought Introduction by E. Roy Weintraub. The front matter highlights some of the more startling and controversial statements contained in the interviews and puts the interviews into context relative to the history of modern economic thought. The interviews reprinted in this book include: (1) Wassily Leontief interviewed by Duncan Foley. (2) David Cass interviewed jointly by Steven Spear and Randall Wright. (3) Robert E. Lucas interviewed by Bennett T. McCallum. (4) Janos Kornai interviewed by Olivier Blanchard. (5) Franco Modigliani interviewed by William Barnett and Robert Solow. (6) Milton Friedman interviewed by John Taylor. (7) Paul A. Samuelson interviewed by William A. Barnett. (8) Paul Volcker interviewed by Perry Mehrling. (9) Martin Feldstein interviewed by James Poterba. (10) Christopher Sims interviewed by Lars Peter Hansen. (11) Robert Shiller interviewed by John Campbell. (12) Stanley Fischer interviewed by Olivier Blanchard. (13) Jacques Dreze interviewed by Pierre Dehez and Omar Licandro. (14) Tom Sargent interviewed by George Evans and Seppo Honkapohja. (15) Robert Aumann interviewed by Sergiu Hart. (16) James Tobin and Robert Shiller interviewed by David Colander.
    Keywords: history of economic thought, Samuelson, macroeconomics, microeconomics, policy, interviews
    JEL: B20 D00 E00
    Date: 2005–11
  4. By: Ron A. Boschma; Koen Frenken
    Abstract: The paper explains the commonalities and differences between neoclassical, institutional and evolutionary approaches that have been influential in economic geography during the last couple of decades. For all three approaches, we argue that they are in agreement in some respects and in conflict in other respects. While explaining to what extent and in what ways the Evolutionary Economic Geography approach differs from the New Economic Geography and the Institutional Economic Geography, we can specify the value-added of economic geography as an evolutionary science.
    Keywords: evolutionary economic geography, new economic geography, institutional economic geography
    JEL: A12 B20 B25 R0 R1
    Date: 2005–02

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