nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2007‒03‒03
three papers chosen by
Karl Petrick
University of the West Indies

  1. Evolutionary Thinking in Environmental Economics By Jeroen C.J.M. van den Bergh
  2. Social economy as social science and practice : historical perspectives on France By Danièle Demoustier; Damien Rousselière
  3. Neoclassical vs evolutionary theories of financial constraints : critique and prospectus. By Alex Coad

  1. By: Jeroen C.J.M. van den Bergh (Vrije Universiteit Amsterdam)
    Abstract: Evolutionary and environmental economics have a potentially close relationship. This paper reviews past and identifies potential applications of evolutionary concepts and methods to environmental economics. This covers a number of themes: resource use and ecosystem management; growth and environmental resources; economic and evolutionary progress; and individual behavior and environmental policy. The treatment will cover both biological and economic – including institutional, organizational and technological – evolutionary phenomena. Attention will be drawn to the fact that evolutionary economics shows a surprising neglect of environmental and natural resource factors.
    Keywords: Coevolution; economic growth; environmental policy; innovation; progress; self-regulation; renewable resources; resilience; social preferences
    JEL: B52 O3 O4 Q2 Q5
    Date: 2007–02–08
  2. By: Danièle Demoustier; Damien Rousselière (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II])
    Abstract: This article aims to investigate the multiple meanings of "économie sociale" ("social economy"), a term which first appeared in France at the founding moment of modern capitalism, both as a concept in the framework for the creation of a social science in close relation with the tradition of classical, Christian and socialist economists, and also to establish an ensemble of social practices and institutions. A historical perspective shows the close yet ambivalent relationship between these two principal connotations. Stemming from this, the conclusion presents some new research orientations towards social economy as a social science and social practice.
    Keywords: social economy ; social science ; France
    Date: 2007–02–13
  3. By: Alex Coad (Centre d'Economie de la Sorbonne)
    Abstract: Complicated neoclassical models predict that if investment is sensitive to current financial performance, this is a sign that something is "wrong" and is to be regarded as a problem for policy. Evolutionary theory, on the other hand, refers to the principle of "growth of the fitter" to explain investment-cash flow sensitives as the workings of a healthy economy. In particular, I attack the neoclassical assumption of managers maximizing shareholder-value. Such an assumption is not a helpful starting point for empirical studies into firm growth. One caricature of neoclassical theory could be "Assume firms are perfectly efficient. Why aren't they getting enough funding ?", whereas evolutionary theory considers that firms are forever struggling to grow. This essay highlights how policy guidelines can be framed by the initial modelling assumptions, even though these latter are often chosen with analytical tractability in mind rather than realism.
    Keywords: Financial constraints, firm growth, evolutionary theory, neoclassical theory, investment.
    JEL: L21 G30
    Date: 2007–02

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