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While Joseph A. Schumpeter is classified as a pioneer of evolutionary economics in a wide sense and of entrepreneurship and innovation management in a narrower sense, Schumpeter is less known for his contributions in the area of scientific methodology and history of science. The paper deals with methodological premises in Schumpeter's scientific positioning. In 1908, in his Das Wesen und der Hauptinhalt der theoretischen Nationalokonomie, Schumpeter developed and pioneered his methodological individualism which is very much acknowledged. However, comparing these early positions with methodological writings in his History of Economic Analysis (1954) shows that he has not really shifted from methodological individualism to an institutional perspective that addresses the academic interplay and sees economic action rooted in historical predispositions, paths and social constraints. Keywords Methodological individualism * Institutional economics * Joseph A. Schumpeter * Economic methodology JEL B25 * B30 * B41 * F14 * F01 * F20 * O10, Introduction The paper deals with Joseph A. Schumpeter and his efforts to treat economics methodologically. Some authors argue that Schumpeter maintained his principal scientific positions over the course of his [...]

An analysis of Thomas Schelling's work entitled 'Strategy of Conflict' is provided. It is believed that Schelling played an important role in stimulating the development of non-cooperative game theory by focusing on the critical importance of information and commitment in strategic dynamics. An analysis of economics' place in the social sciences is also presented.

Ideas that influenced David Ricardo's proposal of eliminating the use of precious metals as money are discussed in relation to the application of the rational expectations equilibrium to come up with intelligent macroeconomic policies. Details on common beliefs assumption in modern macroeconomics are also presented.

It is argued that effectuation may not and should not be based on Davidsonian inter-subjectivity but rather on Penrosean inter-subjectivity. A team- or network-based extension of Ludwig Lachmann's individual-based radical subjectivism could be provided by Penrosean inter-subjectivity. This direction would allow scholars to avoid 'ontological oscillation'.

A different interpretation from Chiles et al's work on how Ludwig Lachmann's concept of how effectuation works is presented. It is also argued that there are crucial differences that draw upon recent developments in our understanding of how the human mind works and that there are at least three areas of possible conceptual confusion.

The review of the book 'Pay without Performance: The Unfulfilled Promise of Executive Compensation' written by Lucian Bebchuk and Jesse Fried is presented.

The review of the book 'Unemployment: Macroeconomic Performance and the Labour Market' written by Richard Layard, Stephen Nickell and Richard Jackman is presented. The future trends of economic research are discussed.

The review of the book 'Global Capital Markets: Integration, Crisis and Growth,' written by Maurice Obstfeld and Alan Taylor is presented.

The interpretation of John Dewey's research on the relation between organizational learning and pragmatism in organizational practice and organizational routines is presented.

The examination of the risks of the end of human civilization due to asteroid impacts, global climate change, bioterrorism and a nuclear catastrophe in Richard Posner's book 'Catastrophe: Risk and Response' is presented.

The review of the collection of essays on the post-communist economic transition of Russia, in Andrei Shleifer's new book 'A Normal Country,' is presented.

The analysis of relationships between buyers and sellers in the era of outsourcing, based on Thomas L. Friedman's book 'The World is Flat: A Brief History of the Twenty-First Century' is presented.

The impact of the Federal Deposit Insurance Corporation Improvement Act of 1991 on the trends of the regulation of banking operations in the United States is examined, based on the views expressed by Gary Stern and Ron Feldman in their book 'Too Big to Fail: The Hazards of Bank Bailouts.'

The aim of this paper is to broaden the discussion about the role of the 'transaction sector' in New Zealand economic growth by relating it to the seemingly alternative, but actually complementary, concept of the information economy, and by indicating some new directions for research. First, a brief overview of approaches to measuring transaction costs is provided. Secondly, the complementary nature of the information economy and transaction sector concepts is discussed. Next, empirical estimates of the information and transaction workforces are presented. Fourthly, the major points that need to be considered in the development of an extended, more complex, hypothesis about the role of the transaction sector in New Zealand economic growth are discussed, and a first version of such a hypothesis is put forward., 1. Introduction In a number of publications Hazledine has reported estimates of the size and growth of New Zealand (NZ)'s 'transaction sector' (Hazledine, 1998, 2001a,b). His analysis is mainly based [...]

Adam Smith's Wealth of Nations may be read as a work of natural theology similar in general style to Newton's Principia. Smith's ambiguous use of the word 'nature' and its cognates implies an intended distinction between a positive sense in which 'natural' means 'necessary' and a normative sense in which 'natural' means 'right.' The 'interest' by which humans are motivated is 'natural' in the first sense, but it may not bring about social outcomes that are 'natural' in the second sense. It will do so only if the social institutions within which agents seek their own 'interest' are well formed. Smith provides a large-scale, quasi-historical account of the way in which well-formed institutions gradually develop as unintended consequences of private 'interest.' In so doing, he provides a theodicy of economic life that is cognate with St. Augustine's theodicy of the state as remedium peccatorum. 'If a great book such as Smith's Wealth of Nations is read repeatedly, on even a fifth or a tenth reading one continues to learn new things. t doubt whether anyone will ever fully apprehend alt the things that Smith wished to express, and there is even more to team from an interesting mind than its owner wished to teach us.' George Stigler (1982, p. 108), 1. Introduction Economics is a scientific enterprise. Well-grounded theory is continually refined. Observations of social phenomena are made in light of that theory. Inferences are constructed by means of the [...]

This article critically evaluates M.E. Porter's book on international economics and strategic management, 'Competitive Advantage of Nations.' The author argues that Porter misunderstands the relationship between industry market share and productivity at the national level, as well as the factors that determine trade, competitiveness, and economic policy in developing countries.

Research is presented describing the works of Russian economist Heinrich von Storch and his use of mathematics to develop a system of political economy.

Issues discussed concern trade unionism, democracy and bargaining power in America, focusing on the views of the institutional economists towards the labor movement in the early 1900s. Topics addressed include the institutional school of labor economics and their philosophy concerning the economic and political purpose of labor unions.

The economic crisis of Russia can be overcome only through consistent liberalization of the economy and reduction of the burden of state spending. The criteria for economic security established by Russian economist Sergei Glazev are critically evaluated. Major discrepancies exist between publicly announced data on the state of the Russian economy and society and official data. Using official statistical data, the criteria of economic security Glazev proposed are satisfied for at least eight of the 25 indicators. Data for many countries, both developing and industrialized, are compared.

The Visible Hand has, of course, been influential in many fields outside of American history. Chandler has always aspired to reach a cross-disciplinary audience and, to an extent that may [...]

The dominant paradigm in business history has for many years been the synthesis developed by Alfred D. Chandler, Jr. Like most paradigms that define a field of scholarship, Chandler's has [...]

An analysis of Polish economist Michal Kaleck's 'degree of monopoly' pricing models indicate that they have a number of eccentric characteristics, of which most but not all are related to the economist's use of an industry average price as a stand-in for the prices of each company's competitors. The industry average price is calculated using shares of industry production as weights. The idiosyncratic properties appear to have been unintended and unrecognized by Kalecki.

Economist Kenneth Boulding's philosophy on economic change is primarily ecodynamical rather than evolutionary in content and direction. Thus, Boulding is able to distinguish and dissect fluctuations around a trend but not the long-term trend itself, which is the focus of evolutionary economists. The dichotomy between the two strands of thought on economic change should, however, not lead to mutual exclusivity but cooperation.

John Maynard Keynes, through his landmark book entitled 'General Theory,' influenced succeeding generations of economic thinkers. Keynes' assumptions and conclusions about macroeconomics in that book may no longer hold true in the 1990s but this and other works of his are avidly read by economists interested in the history of economic thought. Keynes foresaw the problem of business cycles and unemployment although he did not have anything to say on inflation. His followers elaborated on his findings, which were based on empirical tests.

John Maynard Keynes' macroeconomic thought has been misinterpreted by many including those who call themselves mainstream Keynesians. Keynes' explanation for unemployment did not point at supply and consequent price imperfections and inflexibility. On the contrary, Keynes focused on the demand side of the equation which, in the case of liquidity, is zero. For him, unemployment will still occur even when prices immediately respond to changes in other determinants.

Economist Thomas Sargent's emphasis of rational expectations in his economic thought arose from his desire to simplify and his use of engineering concepts to describe his theory. Sargent resorted to convenience to explain economic phenomenon which, unfortunately, destroyed the rational aspect of his work. His resort to an engineering frame of mind was also misguided as engineers are implementors and not theorists.

Nineteenth-century business cycle theorists blamed speculations and risks for the fluctuations in the money market. John Mills emphasized mistaken expectations of the market operators, such as merchants, agents and bankers, as the cause of money market failures at regular intervals. Lack of proper knowledge about the functioning of business cycle and short-term profit motive stalled long-term sound investments. Mills' arguments support the 20th century analysis of cyclical fluctuations, suggesting that business cycle mechanisms are consistent, irrespective of time period and place.

Hicks claim that early 18th-century economic theorist Henry Thornton was a precursor of John Keynes in terms of ideas on monetary theory is wrong. Hicks claim was based on Thornton's views on the demand for money and the temporary nominal wage rate rigidity. However, the issue of rate of interest should rightly be regarded as the yardstick for comparing Thornton and Keynes. Both economists differed on that issue.

Economist Adam Smith did not believe in the invisible hand theory and in fact regarded it as an ironic joke. His refutation of the invisible hand theory is of continuing and increasing interest among scholars. As an advocate of individual rights, Smith was naturally opposed to the theory, which was contemptuous of individuals. His criticism of the invisible hand appears in three of his studies: 'History of Astronomy,' 'The theory of Moral Sentiments' (1759), and the Wealth of Nations' (1776).