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The contractual relationship between author and intermediary--be it a producer, publisher, or anyone facilitating the commercial exploitation of the author's copyrighted works--is often viewed as an unequal one. Other than a minority of superstars, the vast majority of authors are forced to accept contractual terms dictated by their powerful counterparties. This outcome is perceived by many scholars and policymakers as undesirable. Thus, in an effort to protect the authors' wellbeing in their contractual dealings, legislatures from around the world are increasingly keen to adopt regulatory measures that limit the menu of options the parties can adopt contractually. Specifically, these instruments endeavor to offset author's weak bargaining position either by ensuring a minimum level of remuneration to authors' ex-ante or providing them with an inalienable right to ask for a modification of the com-sensation stipulated in the contract ex-post or by granting them an inalienable right to regain control of their previously transferred rights. Overall, these legislative interventions are seemingly based on the assumption that regulating author-intermediary transactions ex ante and ex post will invariably improve the financial situation of authors as a whole. This assumption is mistaken. Drawing on insights from neoclassical and behavioral economics, the benefits and drawbacks of these interventions are narrated throughout this paper. It is further demonstrated that while these legislative interventions were adopted with the best possible intentions, they ultimately prove ineffective in meeting their own objective of securing authors a more favorable distribution of wealth. In fact, they occasionally harm the very group of beneficiaries they were designed to help. Particularly, the different forms of interventions into the author-intermediary contractual relationships create an inter-author redistribution of wealth and redistribution over time, which largely harm the most vulnerable groups of authors. These findings illustrate the limitations of the current legislative interventions that were designed to strengthen the position of authors vis-àvis their counterparties and emphasize that the structural disparities in bargaining powers cannot be easily remedied by legal intervention alone. [ABSTRACT FROM AUTHOR]

The article identifies the assumptions of "orthodoxy" by observing their evolution in economic analysis. Topics include no correlation between orthodoxy or heterodoxy in economics and political beliefs and commitments, how the French Revolution has disrupted political culture and intellectual life in France, and competition among buyers and among sellers.

The challenge of sustainable development can be approached from different angles. In this essay it is argued that one also needs to examine the present close to monopoly position of neoclassical economic theory at university departments of economics in many parts of the world. An open debate is needed about paradigms in economics as well as ideological orientations. An alternative to neoclassical theory is outlined where individuals and organizations are regarded as political actors, each guided by an ideological orientation or mission. Reference is made to the 17 UN sustainable development goals suggesting that impacts need to be seen in multidimensional terms and an alternative definition of economics as "multidimensional management of limited resources in a democratic society" is proposed. It is argued that economics need to move away from its technocracy-oriented tendencies to democracy-oriented approaches. This is exemplified by a move away from neoclassical Cost-Benefit Analysis (CBA) to Positional Analysis as approach to decision-making and sustainability assessment. [ABSTRACT FROM AUTHOR]

In this paper, Ludwick Fleck's philosophy and sociology of science will be briefly outlined in order to establish a 'theory of the resilience of scientific misapprehension'. This theory will be use in order to gain insights into the modes of operation of defence and resilience of modern neoclassical economics in the face of recent harsh critique by singling out a case of extreme deviation of theoretical prediction from empirical evidence: minimum wages' impact on employment. [ABSTRACT FROM AUTHOR]

This article explores the development of Keynesian macroeconomics in its early years, and especially in the Big Bang period immediately after the publication of The General Theory. In this period, as standard macroeconomics evolved into the "Keynesian-neoclassical synthesis," its promoters discarded many of the insights of The General Theory. The paradigm that was adopted had some advantages. But its simplifications have had serious consequences—including immense regulatory inertia in response to massive changes in the financial system and unnecessarily narrow application of accelerationist considerations (regarding inflation expectations). [ABSTRACT FROM AUTHOR]

Since St. Thomas Aquinas was one of the first scholastics to analyze the idea of a "just price," economists, economic historians and philosophers interested in the philosophical underpinnings of the market have focused on Aquinas's writings. One group insists that Aquinas defined the just price as the payment needed to cover sellers' labor and material costs. A second camp vehemently counters that Aquinas's just price is simply the going market price. We argue that neither of these views is correct. The Thomistic just price is the price that would be agreed to by a just person as part of an exchange. This "just person price" takes into account the well-being of the individual transactors and the good of the entire community. Such a price reduces neither to the cost-covering price nor to the market exchange price. A Thomistic concept of the just person price deserves to be reconsidered, especially because a Thomistic approach offers some useful ways to deal with issues quite differently from the popular neoclassical approach directed toward arriving at a socially optimal market price. [ABSTRACT FROM AUTHOR]

Transaction cost economics, neoclassical economics, and the firm capabilities literatures propose theories of the firm that typically depict firm boundaries determined by a dichotomous choice: the make or buy decision. However, none of these theories presents a satisfying explanation as to why firms would concurrently source, i.e., simultaneously make and buy the same good. This study combines these organizational economics theories and compares when firms make, buy, and concurrently source through surveying small manufacturing firms. Support was shown for aspects of all three theories, with evidence indicating that concurrent sourcing is a distinctly different choice, rather existing along a make/buy continuum. Copyright © 2007 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

In this article thinking on corporate social responsibility (CSR) is compared with the dominant political theory of the market: the neoclassical theory. The comparison shows that thinking on CSR fundamentally collides with that theory. For example, their respective normative views on man are incompatible, as are their respective views on the modus operandi of the market. Given that CSR is desirable it follows that a new political theory of the market is needed. This article suggests some initial steps toward developing that new political theory of the market. For example, it defends the proposition that the neoclassical idea of the market as a harmonic sphere must be replaced by the idea of the market as a fragile system. [ABSTRACT FROM AUTHOR]

The article reports on monetary theory and search theory and discusses the paper, "Search, Money, and Capital: A Neoclassical Dichotomy" by S. Boragan Aruoba and Randall Wright. The money search model developed by Aruoba and Wright uses a centralized market and is similar to a neoclassical macro model. Aruoba and Wright also establish a dichotomy in the value of money and the value of capital. Capital, essential in a central market for production, has no standing in a decentralized sector of production.

Recent work has reduced the gap between search-based monetary theory and mainstream macroeconomics by incorporating into the search model some centralized markets as well as some decentralized markets where money is essential. This paper takes a further step toward this integration by introducing labor, capital, and neoclassical firms. The resulting framework nests a search-theoretic monetary model and a standard neoclassical growth model as special cases. Perhaps surprisingly, it also exhibits a dichotomy: one can determine the equilibrium path for the value of money independent of the paths of consumption, investment, and employment in the centralized market. [ABSTRACT FROM AUTHOR]

We analytically derive the cyclical effects of fiscal policy shocks in a New Neoclassical Synthesis model. Price stickiness has the consequence that a rise in government demand affects labor demand, while at the same time the usual wealth effect boosts labor supply. The strength of the demand effect depends on the response of the real interest rate governed by the monetary policy regime. When the central bank controls money growth, fiscal expansions are deflationary and might even be contractionary, whereas output, wages, and, inflation can increase when the rise in the real interest rate is dampened by an interest rate rule. However, price stickiness alone is not sufficient to explain a rise in consumption as predicted by Keynesian theory. [ABSTRACT FROM AUTHOR]

Problems in the micro-foundations of neoclassical theory, especially in partial equilibrium analysis, are being imported into the resource-based view. This paper critiques neoclassical theory and proffers new concepts more suited to strategy scholars. In particular, we develop the concepts of simple rents, rent sensitivity analysis, and the payments perspective. [ABSTRACT FROM AUTHOR]

And, certainly, Florio is true to the framework for this as it emerged most prominently from the 1989 Exxon Valdez Oil Spill accident, through the 1993 report on this disaster by the prominent panel of economists led by Nobel Laureates Kenneth Arrow and Robert Solow. The notion of bringing the economist's cost-benefit lens to the large projects that comprise contemporary scientific research infrastructure threatens to challenge the very pursuit of I veritas i as an intrinsic value. Many a scientist will resist the idea of such a book as this. [Extracted from the article]

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Nicholas Georgescu-Roegen is one of the most famous Romanian economists. From the point of view of the schools of economic thought, his writings are not part of the orthodox typology. An original and unconventional spirit, Nicholas Georgescu-Roegen is at the same time an important representative of the mathematics economics and "a profoundly humane and wise philosopher" as Paul Samuelson described him. His work is so atypical especially given the way he analyses economic phenomena and processes seen in connection with the processes taking place in the immediate environment. The economic and philosophic concept of entropy, based upon the second law of thermodynamics, is indissolubly linked to Georgescu-Roegen's name, him thus becoming a paradigm creator. In his turn, the term of bio-economics rests upon Georgescu-Roegen's idea that there is an analogy between the biological and the economical worlds. [ABSTRACT FROM AUTHOR]

Motivation: The gnoseological sense of a new paradigm, apart from the methodological and sociological sense, includes its the deepest essence. It is expressed in a process of forming and popularization of a paradigm. It includes essential factors of a particular paradigm which are reflected by its general sense. Revealing the essence of the gnoseological sense enables to reveal the main factors from the essential ones, which have been applied unintentionally. The same applies to new institutional economics when it is used without scientific reflection. An idea of revealing the essence of its (of the institutional economics) gnoseological sense is to reveal aspects of the individualism and the holism hidden in it. Aim: Goal of this paper is to reveal the essence of the outline of the gnoseological sense of the paradigm of the new institutional economics. Results: Result of the study is presentation of relations between the individualism and the holism in the paradigm of the new institutional economics. The main conclusion is that the paradigm of the economics sui generis is not homogeneous, similarly to the social sciences. The new institutional economics derives a holistic perspective from the sociology, and individualistic one from the neoclassical economics. Consequently the new institutional economics is based on contradictory foundations (it is of dual nature); this becomes clear at a detailed level of considerations concerning its paradigm. [ABSTRACT FROM AUTHOR]

This paper revisits the conception of heterodox economics advanced by Tony Lawson in 2006 and critically assesses its reception. I consider the bearing of later contributions—most importantly, his 2013 paper 'What is this "school" called neoclassical economics'—in which Lawson further develops his analysis of heterodox economics. The goal is to provide additional clarity to the discussion. [ABSTRACT FROM AUTHOR]

The paper challenges the mainstream stance in the study of applied ethics in international development. Applied ethics is positioned at the macro-social level of global ethics while a specific codification is attempted by formulating international development based on its structural synthesis, in a threefold level: First, the structural synthesis -associated with the framework of existing international development policy-can be found in the 'market relations'. Second, the analysis specifies the policies applied at the national level and the role of nation-state policy. Third, the paper criticizes the international development institutions' policies. In each of the levels mentioned above, the analysis reveals the fundamental policy theory issues of neoclassical economics, as the intellectual defender of free market economics. [ABSTRACT FROM AUTHOR]

Why does capital not flow to developing countries as predicted by the neoclassical model? What are the direction and degree of capital misallocation across nations? We revisit these questions by removing public capital from total capital to achieve a more accurate estimate of the marginal productivity of private capital. We calculate marginal product of capital schedules in a large sample of advanced and developing countries. Our main result is that, in terms of the Lucas Paradox, private capital is allocated remarkably efficiently across nations. Tentative estimates of the marginal productivity of public capital suggest that the deadweight loss from public capital misallocation across countries can be much larger than that from private capital. [ABSTRACT FROM AUTHOR]

The Neoclassical theory of production establishes a dual relationship between the profit value function of a competitive firm and its underlying production technology. This relationship, commonly referred to as duality theory, has been widely used in empirical work to estimate production parameters such as elasticities and returns to scale. We generate a pseudo-dataset by Monte Carlo simulations, which, starting from known production parameters, yield a dataset with the main characteristics of U.S. agriculture in terms of unobserved firm heterogeneity, decisions under uncertainty, unexpected production and price shocks, endogenous prices, output and input aggregation, measurement error in variables, and omitted variables. Production parameters are not precisely recovered when performing econometric estimation based on the duality approach, and the elasticity estimates are inaccurate. Deviations of own- and cross-price elasticities from initial median values, given our parameter calibration, range between 6% and 690%, with an average of 90%. Also, own-price elasticities are as imprecisely recovered as cross-price elasticities. Sensitivity analysis shows that results still hold for different sources and levels of noise, and sample size used in estimation. [ABSTRACT FROM AUTHOR]

Motivation: The role of corporations in the modern economy is extremely important, in addition, the widely observed oligopolistic markets gave birth to the need for the formulation of the theoretical concept of undertaking explanatory way of large companies, with particular emphasis on the basic objective of the company and the role they play in the markets. The aim of the work is to present alternatives to the traditional neoclassical concept of enterprises, management theory and their critical assessment, as well as an indication of the application values of managerial recognition proceedings of enterprises with an emphasis on the form of its operation. In this work there were presented mainly the views of O.E. Williamson, on the aggregate concept of operation of the company in the light of the theory of transaction costs. Aim: The aim of the article is the analysis of enterprise under the new institutional economics in respect of management science, and to show the intermingling of economics and management, and an attempt to justify the need of their connection. In the article there has been used the world literature and it has been examined for adequacy and being up-to-date to the theme proposed in the article. Results: Most of the discussion in the mainstream of new institutional economics provides indications on the ways and means of raising the efficiency of the sector by striving to achieve aka the institutional balance. New institutional economics offers a fresh look at the decision-making process in organizations; it shows the complexity of this process and indicates the items that have not been previously included, and whose role in this process can be significant. Institutional analysis applies to phenomena and processes, which occur in organizations and its use can lead to beneficial results for them. [ABSTRACT FROM AUTHOR]

Motivation: At the turn of the 19th and 20th centuries, institutionalism was presented by T. Veblen as an alternative to neoclassical economics. On the basis of neoclassical economics, in addition to the explanation how an effectively functioning market leads to maximization of welfare, we also find a market failure analysis. The main theme of the presented study is an attempt to synthesize these concepts, in particular to show how the institutional approach modifies the perception of the market failure. Aim: The aim of the article is to analyze the market failure on the basis of institutional economics. In addition, an attempt was made to determine how institutional solutions can result in limiting certain types of market failure. Results: In the light of the analysis carried out, the analysis of market failure based on Veblen's institutionalism is not justified. However, the relation between the New Institutional Economics and the neoclassical interpretation of market failure can be noticed, mainly, when it comes to explaining the reasons for the existence of markets and the methods used to counteract external effects. [ABSTRACT FROM AUTHOR]

Many of the problems neoclassical economic theory has in explaining the real world stem from its narrow view of human nature—the "rational economic man" model, which forces economists to exclude social and historical context. Every social theory starts with a view of human nature that necessarily comes from outside the social sciences. Philosophy and theology are the sources of our ideas about the nature of humans, society, and the good that humans pursue. Catholic Social Thought has a rich understanding of human nature, which includes both the uniqueness of persons and their inherently social nature. Starting from this foundation, economists can develop a deeper understanding of the nature of the economy. Catholic Social Thought does not offer a different economic theory or model, but it does provide an alternative vision upon which more adequate and realistic economic theories can be constructed. [ABSTRACT FROM AUTHOR]

Neoclassical economic theory delivered upon its promise. It showed how the liberation of markets from government constraints could bring about a rapid expansion in the production of consumer goods. That was a major accomplishment. However, it came with a price in terms of social fragmentation, economic inequality, and a planetary ecosystem that is now overwhelmed by human activity. Continuing to follow the course plotted by conventional economics is a path to disaster. The world needs alternatives. Marxism has been tried and found wanting in many respects, including its abysmal environmental record. This article offers help from an unlikely source: insights of Reformed Protestantism that can be traced back to John Calvin in the 16th century. Although Calvin and Calvinism are better known for a harsh view of human sinfulness, Calvin also contributed to the development of liberal democracies by advocating representative government, universal education, and greater participation by more people. Reformed theology emphasizes the importance of widespread participation in decisions, including economic decisions, at every level of society, and provides a positive role for institutions, including government, to protect the common good. It also points toward the need to situate economic policy in the larger domains of social and ecological health. Above all, it denies the validity of any economic system that deifies economics as such, and provides criteria for judging the effectiveness of economic systems as well as the evils of externalizing social and environmental costs in the name of a false efficiency. [ABSTRACT FROM AUTHOR]

Since the 1970s, the decision-usefulness has taken center stage and our attention has been concentrated on valuation of assets and liabilities instead of income measurement. The concept of income, once considered the gravitational center of accounting has lost its primacy and become a byproduct of the balance sheet derived from the measurement of assets and liabilities. However, we have not been equipped with robust conceptual foundation supporting theoretically reasoned accounting measurement. It is not only theoretically but also practically important to renew our seemingly waned interest in the concept of income because ongoing reforms of accounting standards cannot be successfully implemented without a sound understanding of the concept of income. [ABSTRACT FROM AUTHOR]

The main weakness in the neoclassical theory of economics is its static nature. By a static model one cannot explain observed time paths of economic quantities, like the flows of production of firms, the flows of consumption of consumers, and the prices of goods. The error in the neoclassical framework is that there economic units are assumed to be in their optimum state and thus not willing to change their behavior. Therefore, in neoclassical models a static equilibrium prevails. In this paper, the authors change this assumption so that economic units are assumed to be willing to improve their current state that may not be the optimal one. In this way, one can explain economic dynamics where every economic unit is changing its behavior towards improving its welfare. The authors define the economic forces acting upon the production of firms, the consumption of consumers, and the prices of goods. They show that in this dynamic system, business cycles and bankruptcies of firms emerge in a natural way like in the real world. [ABSTRACT FROM AUTHOR]

Abstract Economic-Environmental Models are deeply disaggregated macro-economic systems, which are used in economic environmental studies to explain the emissions of pollutions and the extraction of resources. Concerning the economic base two approaches can be differentiated – the neoclassical and the Keynesian paradigm. Models based on the neoclassical paradigm are depicting equilibrium of perfectly competitive markets, whereas the models based on the Keynesian paradigm have been developed from a critical position vis-a-vis neoclassical theory stressing the importance of market imperfections. The paper at hand shows in its theoretical part that this fundamental difference to a large extent is responsible for differences in modeling results concerning the impact of policy instruments on the economy and the environment. Furthermore the two paradigms prefer different ways of parameterization which has consequences for the empirical validation of the models, the construction of the references and the effects of environmental policy. The paper at hand further shows that the theoretical arguments allow explaining the totally different and partly opposite results of concrete policy simulations in the POLFREE project, where the large scale economic environmental models EXIOMOD (neoclassical) and GINFORS (Keynesian) have been used. [ABSTRACT FROM AUTHOR]

An introduction is presented in which the editor discusses several articles published within issue on topics related to limitations of neoclassical economics (NCE); and failure of mainstream economics in bringing in the balance with social and ecological goals.

The nature of the challenge to mainstream economics needs to be carefully considered. This article presents an overview of the challenge, emphasizing that it is not just a matter of heterodox economists developing non‐neoclassical economic theories. The embrace of a pluralist method and pedagogy is equally significant. The development of a transdisciplinary approach adds further to the breadth of the challenge. Weaving these elements together as political economy provides an alternative paradigm to mainstream economics. Extending its influence requires focus on adult education, the media, and public policy, as well as sustained efforts within universities. [ABSTRACT FROM AUTHOR]

Microeconomics requires a new grounding or formulation that can account for a broader range of socioeconomic behavior than neoclassical economics does. The core of the neoclassical economics research program—the theory of rational choice—has offered insights into the determination of socioeconomic behavior. But other elements need to be integrated into a coherent microeconomic perspective. We introduce such a perspective in which neoclassical economics becomes a special case. This advances our understanding of the determinants of behavior in a coherent and integrated manner. This perspective may form the foundation of an evolutionary and institutional perspective on socioeconomic systems. This has practical value in designing strategy and policy. [ABSTRACT FROM AUTHOR]

Neoclassical economics is based on and structured around the notion of homo economicus. The theory of consumer choice, the theory of the firm, industrial organization, and welfare theorems all require the assumption that agents act in accordance with the scheme of individualistic rational optimization. In this context, our contribution is threefold. First, we delimit the notion of homo economicus according to five characteristics or dimensions. Second, we critically review this anthropological scheme from five distinct approaches, namely, behavioral economics, institutional economics, political economy, economic anthropology, and ecological economics. Third, we conclude that the scheme of homo economicus is clearly inadequate and deficient. However, despite its inadequacies, it remains one of the fundamental pillars of the neoclassical paradigm in economics, which allows us to discuss why we have not yet overcome this paradigm. [ABSTRACT FROM AUTHOR]

The aim of this paper is to offer a theoretical framework for the analysis of labour demand alternative to the neoclassical one, taking as its starting point the conception of the firm that derives from the capabilities or competence-based theories of the organization. After briefly reviewing the essential elements of this approach to the firm, we tackle a range of diverse aspects, such as the link between labour demand decisions and the firm's strategic planning and its determinants, the characterisation of labour demand as a demand for productive competencies, the consequences that these competencies are embedded in human beings or the relative independence between labour demand decision-making and the process of wage-setting. In general terms, this conception of labour demand allows us to incorporate many of the main peculiarities of labour and the demand for it from a number of different areas of heterodox economics (particularly, from institutional and post-Keynesian economics) and it fits in with the conventional literature on internal labour markets and labour market segmentation. [ABSTRACT FROM AUTHOR]

We examine the impact of geographic location of alliance activities on the design of safeguards in contracts governing research and development (R&D) partnerships. Joining research on agglomeration and alliance governance, we argue that the Marshallian agglomerative forces at work in a given location produce governance-related externalities that extend beyond productivity-related externalities considered in previous research. We investigate how location characteristics linked to Marshallian forces, such as local knowledge spillovers, R&D rivalry, dense industry employment, and the strength of professional organizations, have an impact on the specification of formal governance mechanisms. In particular, these Marshallian forces have a bearing on formal governance mechanisms that safeguard the execution of the R&D partnership, such as joint administrative interfaces and termination provisions. We analyze R&D partnerships between biotechnology and pharmaceutical firms and find that misappropriation hazards arising from greater knowledge spillovers and R&D competition in the region where R&D activities are located promote the use of these formal governance mechanisms in R&D partnerships. We also find that factors supporting thick interpersonal networks, such as the intensity of sectoral employment and the strength of professional bodies, reduce the use of formal governance mechanisms in R&D partnerships. [ABSTRACT FROM AUTHOR]

This paper introduces a sigmoidal production function that considers production possible even when the only input is labour. The long-run behaviour of an economy described by the neoclassical Solow-type growth model with differential savings is investigated considering the technology presented. It is found that labour productivity influences the existence of boom and bust periods as well as the level of capital per capita in equilibrium. [ABSTRACT FROM AUTHOR]

A great deal of recent research has been concerned with the effect of inflation on economic variables such as the interest rate, the premium for risk, and the value of the firm. Many of these articles have argued that, except for depreciation effects, the value of future investments in a world with taxes is unaffected by a change in the rate of inflation. Since it is difficult to discuss in depth the work of many writers, we will zone in on the reasoning of this type employed in only one paper, the recent article by Gandolfi. However, we believe that the discussion presented here has implications formerly other articles as well. As is common in the literature, Gandolfi builds his macromodel in two steps. First, he sets up the investment, consumption and other schedules as functions of simple parameters such as income and the rate of interest. Second, he combines the schedules to determine the equilibrium values of these parameters. This note is only concerned with part of the first step since we merely want to reevaluate the investment schedule. Since we believe that the use by Gandolfi and others of the IS/LM and/or the neo-classical growth model for the second step is correct, we leave it to future research to place our amended investment schedule in the appropriate model. [ABSTRACT FROM AUTHOR]

The article comments on three papers within the issue: "Long-Term Effects of Government Deficits on the U.S. Output Potential," by George von Furstenburg, "Capital Formation and the Recent Productivity Slowdown," by Peter Clark, and "U.S. Productivity Growth Recession: History and Prospects for the Future," by Michael McCarthy. The author discusses each article and criticizes their shortcomings. He looks at von Furstenburg's use of the Phelps-Shell model of dynamic economic growth and notes the usefulness of neoclassical growth theory. The author feels that his discussion on the effects of government deficits on output growth or productivity represent a fruitful economic analysis innovation.

Two puzzling aspects of the behavior of interest rates are the response of the real rate of interest to changes in the supply of money and the response of the nominal rate of interest to changes in the expected rate of inflation. The empirical data suggest that, in contrast to the implication of the IS-LM model, the real rate of interest, after an initial decline (increase) in response to expansionary (contractionary) monetary policy and prior to a complete adjustment of commodity prices, experiences a complete return or "snap back" to its original-level. The data also indicate that, in contrast to the implication of neo-Classical theory, the nominal rate of interest, at least until several years or even decades have passed, changes by only a fraction of a change in the expected rate of inflation. In this analysis, the interest-induced wealth effect has been introduced into the analysis of three exogenous changes, two involving a change in the supply of money and one involving a change in the expected rate of inflation. The analysis of the effects of these changes, when the interest-induced wealth effect is introduced, provides an explanation of both the snap back response of the real rate of interest to a change in money and the delay in the response of the nominal rate to a change in inflationary expectations. [ABSTRACT FROM AUTHOR]

Neoclassical economic theory assumes that people pursue utility maximization within an objective framework, evident to all, that serves as the basis for the interaction. Agents are assumed to be detached observers who see the situation as it is in objective reality, it is argued in this article that there is no objective ground for interaction that exists apart from the understanding of economic agents. Agents have orientations that change over time depending on the way that the situation is currently understood. Depth of understanding and the extent of common ground depend on the quality of attention and the will to openness and honesty. Efforts to maintain connections with others make possible mutual understanding and visions of the common good that enable the coordinated pursuit of desired states of the world. Thus the understanding is ... itself the lawgiver of nature. Save through it, nature, that is, synthetic unity of the manifold of appearances according to rules, would not exist at all.... Immanuel Kant, Critique of Pure Reason [ABSTRACT FROM AUTHOR]

Various authors advocate consideration of stakeholder value concerns in organizational decision making. Brenner and Cochran (1990, 1991) propose a stakeholder theory of the firm which contains several propositions and a stakeholder value matrix. In order to begin any stakeholder model validation, an approach is needed to measure stakeholder value and influence weights. We propose a multicriteria decision modeling approach, utilizing the analytic hierarchy process, to estimate stakeholder value matrix weights. This approach is illustrated using a simplified example and suggestions are made regarding the process needed to begin to validate the stakeholder theory of the firm. [ABSTRACT FROM AUTHOR]

This article identifies two major theoretical orientations in the business and society field. The corporate social performance (CSP) model illustrates their lack of integration and the problems posed for theory development. The model is reoriented so that it can be used to explore a synthesis of the two perspectives based on reframed principles of corporate social responsibility, processes of corporate social responsiveness, and outcomes of corporate behavior. [ABSTRACT FROM AUTHOR]

A new theory of competition is evolving in the strategy literature. The authors explicate the foundations of this new theory, the "comparative advantage theory of competition," and contrast them with the neoclassical theory of perfect competition. They argue that the new theory of competition explains key macro and micro phenomena better than neoclassical perfect competition theory. Finally, they further explicate the theory of comparative advantage by evaluating a market orientation as a potential resource for comparative advantage. [ABSTRACT FROM AUTHOR]

The author reviews the literature of real estate and concludes that over time it is becoming more and more inadequate. In light of the significance of the issues facing the real estate sector, particularly when compared to the progress made in other areas of economics, there is an increasing need for advanced research and new approaches. [ABSTRACT FROM AUTHOR]