nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2006‒06‒10
five papers chosen by
Karl Petrick
Leeds Metropolitan University

  1. Finance, Competition, Instability, and Development Microfoundations and Financial Scaffolding of the Economy By Jan Kregel; Leonardo Burlamaqui
  2. Darwin and the Body Politic: Schaffle, Veblen, and the Shift of Biological Metaphor in Economics By Sophus A. Reinert
  3. Evolutionary Economics, Classical Development Economics, and the History of Economic Policy: A Plea for Theorizing by Inclusion By Erik S. Reinert
  4. Economic Development from the Perspective of Evolutionary Economic Theory By Richard R. Nelson
  5. Who Stopped Flying around September 11th? By Don J. Webber

  1. By: Jan Kregel; Leonardo Burlamaqui
    Abstract: The present paper attempts to utilize “the knowledge-based” nature of firms’ operations as set out in the diverse theoretical frameworks to stress the importance of organisational and managerial techniques in the creation of market dominance by particular financial firms in the same way that these theories have analysed industrial firms. The article will also analyze the process of competition between different firms and between different financial structures in terms of the impact of different organisational regimes on profitability, efficiency, and instability of the economic system. As the result, the diverse policy recommendations concerning financial regulation, institution building, and microfinancial structure are given.
    Date: 2006–01
  2. By: Sophus A. Reinert
    Abstract: A long tradition of thought in Western political philosophy compares the body of man to the political body. This traditional cosmological frame of reference was, with the publication of Darwin’s Origin of Species, overcome by the emergence of evolutionary social systems. Albert Schäffle [1831-1903] can fruitfully be considered the last major representative of the old trajectory of thought, and Thorstein Veblen [1853-1929] the first of the new. By comparing and contrasting their uses of biological metaphors and the places these occupied in their larger visions of society and the economy, the author explores some of the tensions generated in late nineteenth century political philosophy by the dramatic change in biological paradigm—in other words by Darwin’s first encounter with the body politic.
    Date: 2006–05
  3. By: Erik S. Reinert
    Abstract: The author argues that in order to create a qualitative understanding of the factors polarizing the world in growing wealth and growing poverty there is a need to create economics by inclusion, a system where all relevant factors, some of which have been part of the economic discourse for centuries, but also elements (like the different effects of process and product innovations) that are part of evolutionary economics itself, are considered simultaneously. According to the author, this historical/institutional approach to economics would benefit especially the Third World. Moreover, the economics by inclusion should also open the way for policies of inclusion, a system that will put the accent on the wellbeing of the majority and not on the growth of the export sector.
    Date: 2006–01
  4. By: Richard R. Nelson
    Abstract: The purpose of the article is to discuss the differences between the evolutionary economic theory and the neoclassical theory from the appreciative viewpoint that aims to capture the basics of what actually is going on, leaving aside formal mathematical modeling in the two theories. As the result, evolutionary theory sees the economy as always in the process of change that involves economic actors taking actions that break from previous behavior, and an environment in continuing flux because of the innovation. While neoclassical theory sees the economy as at rest, or undergoing well anticipated change it has nothing to say about these kinds of conditions. Therefore the author believes the processes of economic catch-up have to proceed under the implicit or explicit guidance of an evolutionary economic theory.
    Date: 2006–01
  5. By: Don J. Webber (School of Economics, University of the West of England)
    Abstract: This paper presents the first set of empirical results on the effects of the events of September 11th, 2001, on individual flying demand using data collected before and after these atrocities.
    Keywords: September 11th; Demand for flying
    JEL: C25 D12
    Date: 2006–06

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