Search

This paper investigates Pure Neoclassical economics from a logical standpoint. After discussing validity criteria, it focuses on theoretical individualism, a core foundation of Neoclassical theorizing in all its variants. Careful analysis of this doctrine reveals that, while mathematically valid, it generates many propositional contradictions in all economic and social science theories grounded upon it. [ABSTRACT FROM AUTHOR]

Economic theory has two inter-related, desiderata — valid argumentation, and scientific explanations of relevant realities. This paper explores whether these objectives can be achieved with a widely-deployed form of Neoclassical economics. Applying arguments drawn from logic to this type of theorizing produces far-reaching conclusions. [ABSTRACT FROM AUTHOR]

Focusing on the fact that digital media commodities are easily reproduced once initially produced, this paper explains, against the backdrop of Marxist insights, just how these commodities are produced, distributed, and consumed in the current digital media environment. Working with Marx's definition of the value of commodities as the social labor time required for their production, we can thereby define the value and price of reproduced digital media commodities as zero, but the market price of these commodities as in fact constituting the Marxist monopoly price. These determinations are then supported by a review of the ways valueless digital media goods are commodified in a monopolistic real world. The approach here, borrowing from Marx's research methods, starts from commodity analysis to explain comprehensively the wider political and economic system of capitalism. This viewpoint of the inherent value of media products is foreign to neoclassical economics as well as to mainstream media and communication studies embracing the utility theory of value. [ABSTRACT FROM AUTHOR]

"Hayek: A Life, 1899–1950" is a biography that provides a comprehensive account of Friedrich August Hayek's life and career. It explores his family background, education, and experiences during World War I. The book focuses on Hayek's intellectual development, particularly his work in economics and his association with the Austrian school. It also delves into his interactions with other economists, his contributions to economic theory, and his involvement in the debate on economic planning. The biography offers valuable insights into Hayek's life and contributions, making it a valuable resource for those interested in his work. [Extracted from the article]

Sraffa's "On the Relations between Cost and Quantity Produced" (1925) and Samuelson's "An Exact Hume-Ricardo-Marshall Model of International Trade" (1971) presented a strikingly similar analytical argument regarding the theoretical domain of Marshallian partial equilibrium models. Yet they reached radically different conclusions from their analyses. This article addresses this theoretical puzzle and proposes a plausible solution. To this end, the article reconstructs the evolution of Sraffa's and Samuelson's thinking on Marshallian partial equilibrium analysis and the evolution of Samuelson's thinking regarding Sraffa's 1926 critique of Marshallian economics. Sraffa's unpublished manuscripts to which Samuelson did not have access during his lifetime are carefully examined. A change in Sraffa's assessment of Marshallian partial equilibrium methodology that occurred in the second half of the 1920s is highlighted. This leads to new insights into Sraffa's thinking on the role and significance of the case of constant costs within Marshallian economics. [ABSTRACT FROM AUTHOR]

In this paper I consider various shifts in my research and understanding stimulated by seeking how to combat social ecological crises connected to modern economies. The discussion and critical reflections are structured around five papers that were submitted to Environmental Values in an open call to address my work. A common aspect is the move away from neoclassical environmental economics, and its reductionist monetary valuation, to a more realist theory and multiple methods. This relates to my work on environmental ethics, plural values, stated preference validity and deliberative monetary valuation. Expanding beyond the narrow confines of mainstream orthodoxy has involved exploring a range of other disciplines (e.g. applied philosophy, social psychology, human geography, political science, social anthropology, history of thought and philosophy of science) and learning from this literature to rethink economics and develop social ecological economics. A broad range of subjects are covered here, including: personal responsibility, social practice, psychology of the individual, participatory processes, value (intrinsic, instrumental and relational), Nature–society relationships and interdependencies, critical realism and the conduct of unifying interdisciplinary science. I end with a series of comments concerning the failings of orthodox economics and the conduct of scientific research for social ecological transformation. [ABSTRACT FROM AUTHOR]

To date, Friedrich Hayek is the only winner of the Nobel Prize in Economics who also holds a law degree. The role of law is central to Hayek's work and prominent in the research program of the Austrian School of Economics generally. Although Hayek's contributions to jurisprudence are manifest, as are the influence of his economics ideas, his influence on the field of law and economics has remained modest. This lecture, delivered as the Keynote Lecture at the 2023 Asian Law & Economics Association Annual Meeting, provides an introduction to the fundamentals of an Austrian Law & Economics research program in contrast to the mainstream, Chicago-school research program that has dominated the field since its early history. Compared to the neoclassical approach, Austrian thinking provides a more insightful approach to many of the key concepts generally associated with the economic analysis of law: the nature and success of the common law as a system of law, the importance of stability and simple rules in the law, and the strong preference for private ordering via contract, personal autonomy, and voluntary exchange exhibited in the common law. I identify and briefly describe six key distinguishing characteristics of the Austrian school that distinguishes it from neoclassical law and economics: (1) Methodological individualism, (2) Utility and Costs are subjective, (3) the division of knowledge, (4) spontaneous order, (5) competition as a discovery procedure, and (6) the nature of economic equilibrium. I will also highlight some of the ways in which examining law and economics through an Austrian framework provides valuable insights about law and economics. [ABSTRACT FROM AUTHOR]

Amartya Sen is often described as an insightful critic of mainstream economics, and in particular, his work in development economics, alongside the construction of the capabilities approach, has been associated with endeavors to revisit both the theory and practice of the discipline. Despite his in-depth criticisms of certain aspects of mainstream economics, Sen's extensive use of formal methods is suggestive of an ontological tension, one identified by Thorstein Veblen when commenting on some of his contemporaries and originally introducing the term "neoclassical." Veblen argued that the work of these economists involved both an implicit recognition of a causal processual social ontology he associated with modern, thoroughly evolutionary, approaches and a commitment to a taxonomic conception of science—the latter relying on a set of methods that presupposed an associationist ontology of event regularities. For Veblen, the adherence to taxonomic methods was the classical feature of their work, and the commitment to an evolutionary viewpoint was the neo aspect. This article argues that the same tension runs through Sen's contributions and that he is neoclassical in this specifically Veblenian sense. The assessment of the ontological inconsistencies in Sen's work is shown to shed light on its reception within the economics academy. [ABSTRACT FROM AUTHOR]

This paper contributes to the debate on the role of innovation and intellectual property rights (IPRs) in catch‐up policies in developing countries (DCs). We survey the literature on four key points. First, we review the neoclassical and evolutionary theoretical foundations of innovation and catch‐up. Second, we examine why some countries lag behind, in particular in terms of path dependency and multiplicity of convergence dynamics. From this follows the question of how to foster innovation in DCs. We examine the issues of IPRs protection in a third point and industrial policies in a fourth point. Strengthening IPRs protection is often recommended by international institutions. However, the related literature shows that their impact is strongly non‐linear, as the optimal level for DCs is initially low, then increases as the countries develop. This result is robust to a wide range of models and methods. Finally, the literature reveals that industrial policies can be crucial in fostering innovation in DCs, even though their implementation faces serious challenges, in particular the appropriate targeting of industrial policies, and rent‐seeking behaviours in a deteriorated institutional environment. [ABSTRACT FROM AUTHOR]

Bangladesh's remarkable achievements in economic and social progress have placed the country in a position that was unimaginable just 20 years ago. However, has such improvement in development outcomes been equal across all areas within the country? We aim to address this question by analyzing district-level income per capita derived from the 2000 and 2016 rounds of the Household Income and Expenditure Survey. Using models based on standard neoclassical economic convergence theory, which may also account for natural disasters, we find little evidence of convergence. This suggests that income differentials among Bangladesh's 64 districts persist. We also examined the possibility of multiple steady states by estimating models with a three-club structure based on income percentiles as registered in 2000. However, we found no evidence of conditional convergence. Additionally, we explored the potential for endogenous club formation using regression trees and machine learning algorithms. Yet, once again, the results did not support convergence. Overall, our findings reveal no evidence of conditional convergence in income among Bangladesh's districts. This implies that policy implications might vary, with targeted interventions possibly necessary to address the specific factors hindering convergence among similar regions. [ABSTRACT FROM AUTHOR]

The rise of globally fragmented production since the 1980s encouraged economic regions to specialise in narrow slices of the value chain, making the benefits from local agglomeration no longer certain. Nonetheless, locally integrated production districts continue to thrive. Locally integrated industrial districts have proven sustainable in times of both increasing and decreasing fragmentation of production. Drawing upon insights from three schools – the Markusian logic of multiple district models, strategic coupling and the production of semi-public goods – this article uses a two-staged case-study design to explore the conditions under which locally integrated production districts continue to thrive in the global economy. [ABSTRACT FROM AUTHOR]

This paper examines Kirzner's contribution to the study of the equilibrating tendency in economics. By analyzing his interpretation of Jevons' law of indifference, we participate in the debate on Kirzner association with neoclassicals when discussing the equilibrating tendency. A reconstruction of Kirzner's use of Jevons' law is conducted, considering his argumentative strategy when presenting the Austrian economics ideas to other professionals in the field. We conclude that Kirzner drew close to neoclassical economics to emphasize the relevance and uniqueness of Austrian economics. By doing so, we highlight the main differences between the two currents of economic thought. [ABSTRACT FROM AUTHOR]

The article "Land, Abstraction, and Housing Provision" explores the debate between the nomothetic and idiographic approaches in the social sciences, specifically in the study of housing provision. The author argues for a middle ground that combines both approaches, emphasizing the role of demand in determining land and housing prices. The article addresses criticisms and clarifies the author's position, discussing the historical record of global house prices and the inflationary role of land. The author defends their framework for analyzing housing provision under capitalism, considering the entanglement of rent extraction and capitalist production. They acknowledge the novelty of financialization in the construction industry and see their framework as an ongoing theoretical project. [Extracted from the article]

The second digital wave has positioned artificial intelligence and digital platforms as new general purpose technologies, has driven the emergence of new value sources: prediction and circulation values, and has created a new explanatory phase into the relationship between digitalisation and economy: the digital transition. The governance of the digital transition, fully inserted in globalised capitalism, are not being able to reduce polarisation, economic inequalities, or the worsening environment. The article argues that failure in economic policy is closely linked to failure in political economy. The prevailing neoclassical approach is not being able to comprehensively explain the foundations, behaviour and results of digital economic life. To overcome this limitation, the article proposes a new narrative, the emergence of a new explanatory figure of economic behaviour and exchange. Homo digitalis extends the egotistical, isolated, and rational precepts of Homo economicus, and incorporates the scope of social welfare and environmental sustainability as enabling goals. The main components of Homo digitalis are the emergence of multiple biological, social and virtual identities and worlds; the integration of new forms of artificial and intelligent life into our bodies and minds (transhumanism); and the consolidation of a new egalitarian rule based on the access-platform-collaboration identity. [ABSTRACT FROM AUTHOR]

Mitigation policies during the COVID-19 pandemic were justified on benefit-cost-analysis (BCA) grounds, with the value of a statistical life (VSL) measuring the benefit of saving lives. This essay argues that a BCA and VSL framework is not a value-neutral basis for pandemic policy: first because the characterization of labor-market behavior as choices merely regarding money and risk of mortality implicitly endorses those institutions that constrain such choices, as illustrated by pandemic economic conditions; and second because this characterization assumes that individual subjects have exogenous preferences, and accordingly have one "true" valuation, thus ignoring how subjectivity is constituted by capitalist institutions. Such VSL estimates in pandemic scholarship illustrate the search for a single valuation regarding elderly life, whereas the "good" of human life warrants valuation in our capacity as citizens in democratic institutions rather than as market agents. The language of overdetermination highlights the contradictory effects of the mutual constitution of institutions and the individual subject. [ABSTRACT FROM AUTHOR]

Neoclassical economics has established itself as the discipline of rational choice. Consequently, under methodological individualism and in the context of consumption, an agent's choice is based on the ordering of preferences determined exogenously, disregarding any emotional, biological influences, or factors from socio-economic dynamics. Therefore, this paper aims to present an alternative framework for the decision-making of economic individuals at a theoretical and formal-mathematical level, grounded in the principles of evolutionary economics and complex adaptive systems. It is argued that the process of making choices in consumption is inherent to social dynamics. From an individual-holistic perspective, the mechanism motivating action can be characterized as an evolutionary algorithm that integrates biological, historical, cultural, social class, and market competition influences as endogenous elements in determining choice and consumption behavior. [ABSTRACT FROM AUTHOR]

Neoclassical economics has become the predominant school of economic thought, influencing scholarship on management, organizations, and business ethics. However, many feminist economists challenge the individualist and positivist foundations of neoclassical economic epistemology, arguing instead that purportedly gender-neutral and value-free methods routinely and systematically leave out and undervalue women. Extending this proposition, this article introduces the epistemic foundations of feminist economics and illustrates how they can produce novel insights relevant for business ethics. In particular, by examining economic phenomena from the point of view of the people they affect, feminist economic epistemology is able to elucidate the ways in which power asymmetries and gender norms that constitute the social world can be reflected in business practices. I apply this methodological insight to three case studies of global supply chains to challenge the neoclassical assertion that including women in labor markets necessarily catalyzes gender equality. [ABSTRACT FROM AUTHOR]

The conflict between institutionalism and neoclassicism in the 20th century has been investigated by scholars over the years. Many of them believe that in the postwar period, neoclassicism triumphed while institutionalism largely disappeared. The present chapter takes a very different view. The late 20th century represents a broad synthesis of neoclassical and institutional themes in a methodology we call pragmatic empiricism. That approach combines the mathematical model building and theoretical formalism of neoclassical economics with the institutional economist's data-driven statistical analysis and concern for developing institutional forms. We use as a case study the history of American locational economics from the 1930s to the present. The mixing of institutional and neoclassical themes is quite evident in the work of three young scholars at Harvard who effectively initiated American locational economics. In the postwar period, we find a series of outstanding, well-published papers that capture the spirit of the "founders." These papers do use more modeling, but they also focus on major institutional developments. A broader review of locational works is consistent with the pragmatic empiricism label. The history of locational economics supports the claim that institutionalism, far from disappearing, continues to provide fundamental questions and techniques for modern pragmatic empiricism. [ABSTRACT FROM AUTHOR]

The article discusses the debate surrounding the target of limiting global warming to 1.5 degrees Celsius. The economist William Nordhaus, who received the Nobel award for his work on integrating climate into economic theory, estimated that the best benefit-cost ratio was associated with a warming of 2.5 degrees Celsius. However, the Intergovernmental Panel on Climate Change (IPCC) set a target of 1.5 degrees Celsius without providing a justification in terms of costs and benefits. The article argues that the target may not be a sensible choice and suggests that governments should consider implementing a pricing system for carbon dioxide emissions instead. The article also highlights the potential side effects of government regulation on innovation and economic performance. [Extracted from the article]

"Thinking Like an Economist: How Efficiency Replaced Equality in U.S. Public Policy" by Elizabeth Popp Berman is a book that explores the influence of economic thinking on government policy analysis in the United States. The author argues that economic logic, focused on efficiency and benefit-cost analysis, has come to dominate policy-making processes, often prioritizing efficiency over other goals such as rights and equity. The book provides a historical account of how economic ideas have been applied in government and offers insights into the ethical implications of these ideas. While the book primarily targets academic audiences interested in the history of US government policymaking and economics, it also aims to engage political progressives seeking to rebuild the progressive movement. However, some readers may find the book's analysis of left-right political divisions and the role of economics in politics to be oversimplified. [Extracted from the article]

The reviewed book, "Intangible Flow Theory: A New Way for Conceptualizing Embeddedness?" by Tiago Cardao-Pito, aims to provide a fresh perspective on the double embeddedness of economic actions, processes, and organizations in both social and natural contexts. The author argues that traditional economic approaches often overlook the importance of intangible flows, which are identifiable but not precisely measurable, leading to observational biases and normative presumptions. The book proposes intangible flow theory as an alternative perspective that emphasizes the complexity and ubiquity of intangible flows, offering insights into social ontology and the construction of social relations. While the book provides a concrete example of applying intangible flow theory to assess the level of intangibility in a firm, it lacks specific theoretical mechanisms and leaves some questions unanswered, potentially limiting its practicality and impact. Overall, the book offers a valuable contribution to understanding socio-economic provisioning processes and invites further interdisciplinary research. [Extracted from the article]

Edith Penrose's The Theory of the Growth of the Firm provides an intellectual foundation for a theory of innovative enterprise, which is essential to any attempt to explain productivity growth, employment opportunity, and income distribution. Penrose's theory of the firm is also an antidote to the absurdity that has been taught by PhD economists to millions of college students for over seven decades: the most unproductive firm is the foundation of the most efficient economy. The dissemination of this 'neoclassical fallacy' to a mass audience began with Paul A. Samuelson's textbook, Economics: An Introductory Analysis, first published in 1948. Over the decades, the neoclassical fallacy has persisted through 18 revisions of Samuelson, Economics and in its countless 'economics principles' clones. This essay challenges the intellectual hegemony of neoclassical economics by exposing the illogic of its foundational assumptions about how a modern economy operates and performs. To get beyond the neoclassical fallacy, economists must be trained in a 'historical transformation' methodology that integrates history and theory. It is a methodology in which theory serves as both a distillation of what we have learned from the study of history and a guide to what we need to learn about reality as the 'present as history' unfolds. [ABSTRACT FROM AUTHOR]

The third edition of "Foundations of Real-World Economics" by John Komlos has made significant improvements that enhance its usefulness for both teachers and students. The new edition is more accessible to undergraduate students, including those majoring in economics, business, and other social sciences. It addresses previous concerns about the book's accessibility, engagement with heterodox economics, discussion of feminist economics, and the inclusion of exercises for active learning. The new edition also includes chapters on the political consequences of the 2008 crisis, hidden racist elements in economics, and the impact of the COVID-19 pandemic on the economy. Overall, the book strikes a balance between critique and construction, making it a valuable resource for economics students and teachers. [Extracted from the article]

This article rests on establishing a unique standpoint that life insurance products (unlike other financial assets) are purchased for protection, not as an investment for return. This aims at identifying the most suitable theoretical framework to study the life insurance market and to suggest appropriate tools of analysis. Economic and financial theories starting from neo-classical economics, going up to behavioural economics (BE) have been studied visà-vis life insurance markets. A distinction has been drawn between BE and behavioural finance (BF). Accordingly, neo-classical economics, standard theory of finance and BF have been found to be inappropriate to understand life insurance as a market. The main theoretical edifice of BE, with a blend of transactioncost approach and information theoretic approach, is argued to be the right theoretical framework to study the life insurance market, given the idiosyncrasies involved. A novel attempt has been made to create a ‘construct’ to depict how the BE framework is most relevant. It is hypothesised that bounded rationality is adversely influenced by emotions, search costs, intermediaries and socio-psychological influences, to embed behavioural biases and heuristics into life insurance purchase decisions. Combinedly, this leads to demand and supply distortions that create an incomplete market. To test this framework, it has been suggested that Heuristic z-test; Murthy’s Index of Rank Dominance (MIrd & MRird); and logistic regression, be harnessed. These tools would help in measuring market inefficiency and underperformance. Policymakers, the regulator, insurers and buyers alike would benefit from a better understanding of the market. [ABSTRACT FROM AUTHOR]

The rise of the regulatory state during the Gilded Age was closely associated with the development of institutionalist ideas in American academia. In their analysis of the emergent regulatory environment, institutionalists like John Commons operated with a fundamentally marginalist theory of value and distribution. This engagement is a central explanation for the ultimate ascendancy of neoclassical economics, and the limitations of the regulatory environment that emerged in the Progressive Era. The eventual rise of the Chicago School and its deregulatory ambitions did constitute a rupture, but one achieved without rejecting preceding conceptions of competition and value. The substantial compatibility of the view of markets underlying both the regulatory and deregulatory periods is stressed, casting doubt about the transformative potential of the resurgent regulatory impulse in the New Gilded Age. [ABSTRACT FROM AUTHOR]

In the 1980s, successive Australian governments began to pursue a program of microeconomic restructuring, taking their lead from the developing 'free market' reform projects underway in the United States and the United Kingdom. One of the prominent features of the emerging liberalisation agenda was the commercialisation and privatisation of government-owned companies and assets. In keeping with this trend, over the following decades, a series of changes have been introduced to Australia's container ports aimed at improving their productivity and efficiency. Drawing on a series of interviews and analysis of governmental and non-governmental reports, the purpose of this study is to examine how port policy has unfolded 'on the ground' in Australia. The paper considers some of the 'common sense' economic maxims expounded for reform in relation to actual outcomes for industry stakeholders, concluding that principles and practice have diverged significantly and that many of the assumed benefits have failed to materialise. [ABSTRACT FROM AUTHOR]

The Ordinaries column began in 2019 to promote a Neo-Darwinian synthesis of neoclassical and behavioral economics. In this, the last Ordinaries article, the goal remains to improve economics by utilizing natural science theory and methodologies to improve economics. [ABSTRACT FROM AUTHOR]

Neoclassical economics assumes that people care only about themselves and, consequently, argues that people will not incur unrepaid costs to harm or help other people. In contrast, behavioral economics documents that people sometimes incur costs to hurt other people ('apparent spite') and in other situations incur costs to help others ('apparent altruism'). Biology argues that, in ancestral settings, such costly acts towards others were adaptive, and arose by natural selection because of benefits redounding to the selfish genes responsible for the behaviors. In evolutionarily novel settings such as cities, however, people will often incur costs that are not repaid. Ordinary: "With no special or distinctive features; normal. Not interesting or exceptional; commonplace." -Oxford English dictionary. [ABSTRACT FROM AUTHOR]

This paper is an attempt to provide a micro-theoretical basis for Keynesian economics while maintaining as much of the neoclassical framework as possible, such as utility maximization for consumers and profit maximization for firms. We show the existence of involuntary unemployment without assuming wage rigidity when labor supplies of individuals are indivisible. We derive involuntary unemployment using an overlapping generations model under monopolistic competition with constant returns to scale technology and indivisible labor supply. [ABSTRACT FROM AUTHOR]

We present an economics framework appropriate to the exceptionally broad scope of the climate change problem. This considers that economic and social processes, particularly those involved in purposive transitions of energy technologies and systems, involve the interplay between three distinct domains of decision-making and associated actors. The first concerns small-scale and often short-term decision-making, much of which reflects extensive 'satisficing' and habituation as identified in behavioural economics. Calculated economic optimization decisions, especially of companies in the energy and energy-intensive industries, then best reflect the core assumptions of neoclassical and welfare economics, including discrete market failures. Third, at the largest scale are strategic judgements made by big actors (e.g. governments, large multinational companies) relevant to transformation of complex systems over long periods—particularly concerning innovation and structural changes, for which lessons from theories of evolutionary and institutional economics are most relevant. Economically, these can be logically mapped in relation to the technology (or more accurately, 'best practice') frontier. Each has corresponding policy implications: most directly, respectively in terms of (i) standards and engagement to establish norms; (ii) competitive markets with the critical role of prices; and (iii) strategic investment in innovation and infrastructure. Each faces challenges of implementation and government failure, as observed, for example, with wholly inadequate carbon pricing to date, naïve and ineffective approaches to enhancing energy efficiency, or misdirected support to R&D. Based on the domain distinctions, we argue that the corresponding pillars of policy are naturally complementary, and can be mutually supportive: strong standards and norms on energy efficiency, for example, would enhance the political space for carbon pricing by reducing its direct consumer impacts, while carbon pricing has multiple positive two-way interactions with enhanced low-carbon innovation. From this we also posit a 'carbon pricing paradox': that adequate carbon prices, the central recommendation of most economists, are in most jurisdictions only feasible (or even optimal) if equal analytic and policy attention is devoted to the other pillars, and the wider context of macroeconomic and fiscal policies. Only these other aspects can reduce the absolute cost impact of carbon pricing (potentially turning into a gain) and offer consumers and businesses better lower-carbon alternatives, which are critical to establishing climate-compatible pricing structures across our economies. [ABSTRACT FROM AUTHOR]

Modern economic theory has been dominated by neoclassical economics since the 1970s. Like any theory, neoclassical economics also has a series of assumptions underpinning it. These assumptions have been criticized and challenged on various grounds in the past several decades. The most serious assumption is the assumption of rational economic agents who aim to maximize their utility by analyzing the costs and benefits of every decision. The presence of "homo economicus" is very rare in our society. In fact, it is practically and psychologically impossible to be rational even most of the times. Empirical and experimental research heavily corroborates this fact. Despite such massive evidence, nearly all economic models and public policies use this distorting assumption in analysis and research. The result has been catastrophic, as can be seen in the Global Financial Crisis of 2008, the Dot-Com bust and numerous financial market crashes before that. Furthermore, the theory of rationality also reduces the effectiveness of government policies in achieving their objectives. Behavioral economics has emerged to address these fallacies of modern neoclassical economics and complement it to improve economic theory, methodologies and forecasting. Behavioral economics has mainly two branches macro theory which aims to design macro-economic models incorporating behavioral concepts and micro theory which explains the various biases that individuals, groups and institutions exhibit in economic and even social decision-making. This research is focused on micro-behavioral economic theory. While a colossal magnitude of research has been done in identifying, testing and explaining the plethora of behavioral biases, there is a dearth of research on systematically reducing these biases. This research aims to fill this gap by conducting research on private and public sector employees of 30 to 40 years age and testing for a significant difference in level of biases revealed between the two groups of employees. The research found that there is a significant level of difference in the rational decision-making behavior of the two groups of employees. It also discusses the applications of the findings and the further scope for research. [ABSTRACT FROM AUTHOR]

"Ages of American Capitalism: A History of the United States" by Jonathan Levy is a comprehensive exploration of American economic history, with a focus on labor economics and legal history. The book examines the relevance of institutional economics and the writings of John R. Commons in understanding changes in labor conditions and labor relations. Levy traces the development of American capitalism from the industrial revolution to the present day, highlighting the increasing control over workers and the emphasis on short-term profits. The book also discusses the failed populist movement and its goals of providing an alternative to the economic developments of the time. Overall, Levy's work provides a well-balanced commentary on management practices and their impact on the American economy. [Extracted from the article]

This commentary on Felix Mallin and James Sidaway's (2023) article on 'Critical geoeconomics' returns to the German Historical School of economics to recall their emphasis on geography, history and culture, but also their frequent advocacy for imperial expansion and colonial annexation. It revisits the divide between the Historical School's vision of the world economy and that of Austrian School marginalists and suggests that we can understand geoeconomics as the expression of a desire for sovereignty in an era of mutual interdependence. This response to Felix Mallin and James Sidaway's genealogy of the category of geoeconomics follows them in returning to early‐twentieth century debates in German‐language economics. It suggests that the divorce between geography and economics under neoclassical and neoliberal epistemology can be reconciled through geoeconomics, but that we should remain aware of the risks this entails. [ABSTRACT FROM AUTHOR]

Real estate is often the most visible contribution that emigrants add to their home country's landscape. Such properties serve different functions, from rental investments, through migrant families' homes, to holiday homes or empty spaces. Economists often view real estate through financial lens, frowning upon vacant houses. I argue that keeping vacant houses is often caused by social and emotional factors rather than financial ones. This article uses data from 120 qualitative interviews with Polish EU migrants and juxtaposes them with the typology of remittance houses proposed by Boccagni and Erdal. The data, combined with the theoretical perspective of Neoclassical Economics, New Economics of Labour Migration, and Grzymała‐Kazłowska's concept of social anchoring, allow me to improve the typology. The updated typology systematises the functions of and reasons why migrants keep properties in their home countries and provides a sound frame for future research and policymaking. [ABSTRACT FROM AUTHOR]

Keen's fundamental criticism is that Neoclassical economics has developed an abstract theory describing a utopian economy, and that it is unable to explain: "the complex, changing world in which we live" (Keen [6], p. 139). Steve Keen ([6]) has written a book full of passion, which highlights the macroscopic limits of Neoclassical economics and specifies the fundamental points of a Manifesto for a New Economics. Based on the results of the simulations of Minsky's Financial Instability Hypothesis, Keen concludes that the functioning of an economy making use of bank money is opposite to what is claimed by Neoclassical economics. Some Constructive Comments on Steve Keen's Manifesto for a New Economics: The New Economics: A Manifesto, Steve Keen, Cambridge, Polity, 2022, 140 pp., £12,99, ISBN-10: 1509545298, ISBN-13: 978-1509545292. [Extracted from the article]

The transition to neoliberal hegemony during the last quarter of the twentieth century is generally portrayed as a contest between Hayekians and Keynesians. This portrayal overlooks the brief but potent effervescence of the neo-Malthusian movement. Biologists Garrett Hardin, Paul Ehrlich, and Donella Meadows led a social movement that pursued environmentalist governance wherein scarce resources and population growth were managed by command-and-control instruments, Pigouvian taxation, and coercion. The neoclassical mainstream of economics conceded to the neo-Malthusian upstarts that if a "backstop" energy source was not discovered, then there were indeed "limits to growth," but neoliberals eventually devised alternative environmental frameworks, such as Elinor Ostrom's "commons" and John Dales's "cap-and-trade." The first significant clash between neoliberals and neo-Malthusians came in the form of a bet between Julian Simon and Paul Ehrlich over commodity prices during the 1980s. This article reconstructs the broader context of their confrontation, as well as the theoretical influences on Simon's cornucopian framework of "resourceship." [ABSTRACT FROM AUTHOR]

n order to analyze the configuration and transformations of tax systems in Latin America, it is essential to know how taxpayers perceive taxes. This article revisits the discussions on economic elites and tax systems in the region in order to explore the tax perceptions of the economic elite in the province of Córdoba, Argentina. Using a positional approach that defines elites according to institutional positions, 23 interviews were conducted with businessmen and businesswomen from Córdoba who participated in the campaign “Córdoba, here we are.” It is highlighted that they occupy heterogeneous positions in the productive structure but hold homogeneous perceptions regarding taxes. In turn, moral and economic critiques of the tax system by businesspeople are identified. The former are expressed from a position of moral representation of businesspeople, while the latter are based on notions of neoclassical expert knowledge and circulate as common sense among the interviewees. It is concluded that moral objections reflect the scope of the agency of the business sector, as the capacity of the business sector to say and be heard on social and political issues. It is also argued that economic critiques express the limits of business sector agency, since the adoption of technical-economic schemes as common sense hinders the thematization of facts, experiences, and subjects outside the concepts of neoclassical economics. [ABSTRACT FROM AUTHOR]

Stakeholder theorists have traditionally objected to the neoclassical conception of the firm as a vehicle for maximizing profit or shareholder wealth, thus opening up space for controversial engagement with neoclassical economics. The present paper fills some of this space by elaborating the parallels between stakeholder theory and classical institutional economics, a heterodox school of economic thought that has long been critical of a broad range of neoclassical ideas. Rooted in the writings of Veblen and Commons, classical institutional economics explores how the social provisioning process is coordinated or hindered by real-world business institutions. From this standpoint, stakeholder theory highlights the possibility of overcoming the institutionally ingrained conflicts and trade-offs for the sake of realizing common human interests in organizing the social provisioning process in an orderly and reasonable way. This argument not only illuminates the relationship of stakeholder theory to the wider societal context of modern capitalist economies but also elaborates novel aspects of the moral nature of stakeholder management. [ABSTRACT FROM AUTHOR]

The paper seeks to understand the pattern of manufacturing exports in 35 developed and developing countries and 99 industrial sectors over the period 1999-2013 using a methodological approach that relies on propositions of the neoclassical trade theory. Next to the impact of traditional factors such as the endowment of public capital, we look at the importance of accounting for public capital heterogeneity, by distinguishing countries based on their proximity to the technology frontier. We consider public capital as a non-rival factor, which has a property of "creation of atmosphere" in a model that treats factor intensity as a mechanism of industrial development. We use the system GMM technique to estimate the elasticities of public capital. Our results show that public capital plays a differentiated role in the capacity to export industrial goods depending on whether countries are far or close to the technological frontier. [ABSTRACT FROM AUTHOR]

Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Addressing Externalities and the Significance of Underpricing Resources Typically, externalities are characterized as negative, signifying that the externality yields an adverse outcome. However, to the extent that the costs may remain understated and the market mechanism is not cognizant and focused on the elimination of the externality-based cost but rather the minimization of overall costs, this process has yielded suboptimal outcomes. The lack of inclusion of externalities in the cost assessment or consumption expense of a particular good, leads to the undervaluing of that good and potential for both over consumption and heightened waste. Globally, economies are measured in relative terms with respect to a single economic indicator - gross domestic product (GDP). [Extracted from the article]

We start from Robinson's article on Harrod's Dynamic Economics and her criticism that technological change was exogenous: 'in Mr. Harrod's world, technical progress falls like the gentle dew from heaven and is not susceptible to any economic influence'. Throughout her work she highlighted the endogenous sources of technological progress and growth and pre-empted both the National Systems of Innovation (NSI) literature and New Growth Theory (NGT), where the latter (NGT) appears to be neither new, nor able to explain innovation, growth and convergence trajectories. We also show that the productivity slowdown in advanced economies is explained by a fall in the wage share, a drop in the rate of accumulation of capital and prioritisation of incentives for R&D over policy instruments to diffuse innovation. While for developing economies, the failure of neoclassical economics to resolve the paradox of promoting market incentives for diffusion, while protecting intellectual property rights, implies an inevitable slowing of convergence. [ABSTRACT FROM AUTHOR]

This article is an interview with Dr. Iván Bélyácz, a retired professor and member of the Hungarian Academy of Sciences. Dr. Bélyácz discusses various topics, including the adverse consequences of the market economy overtaking the real economy, the rise in inequality, and the importance of science in combating unscientific views. He also talks about the potential benefits and challenges of artificial intelligence and the need for a holistic understanding of risk and uncertainty in economic decision-making. Dr. Bélyácz reflects on his career as a researcher and emphasizes the importance of publishing and teaching in his field. He concludes by discussing his current work on the economics of risk and uncertainty and the need for a contextual understanding of financial and economic history. [Extracted from the article]