Japanese Consumption,External Disequilibrium and their Statistical Measurement

Georgescu-Roegen's work is usually divided into two categories, his earlier work on consumer and production theory and his later concern with entropy and bioeconomics beginning with his 1966 introductory essay to his collected theoretical papers published in the volume Analytical Economics. Most economists usually praise his earlier work on pure theory and ignore his later work which is highly critical of neoclassical economics. Those economists sympathetic to his later work usually take the position that he “saw the light” and gave up neoclassical theory some time in the 1960s to turn his attention to the issues of resource scarcity and social institutions. It is argued here that there is an unbroken path running from Georgescu's work in pure theory in the 1930s, 1940s, and 1950s, through his writings on peasant economies in the 1960s, leading to his preoccupation with entropy and bioeconomics in the last 25 years of his life. That common thread is his preoccupation with “valuation.” The choices our species makes about resource use and the distribution of economic output depends upon our valuation framework. Georgescu-Roegen's work begins in the 1930s with a critical examination of the difficulties with the hedonistic valuation framework of neoclassical economics, moves in the 1960s to the conflict between social and hedonistic valuation, and culminates in the 1970s and 1980s with his examination of the conflict between individual, social, and environmental values. This paper traces the evolution of Georgescu-Roegen's thought about valuation and the environmental and social policy recommendations which arise out of his bioeconomic framework.     

The Economist Watcher: Economic Contributions of David Colander

ABSTRACT

This article gives an appraisal of the work of David Colander. After a brief biographical summary, we look at his work in methodology and the role that institutions and ‘vision’ play in his economic analysis. A crucial part of his work in this area is viewing not only the economy but also the economic profession as an adaptive complex system. This leads us to his major contributions to macroeconomics and economic education. We conclude with an overall assessment of his contributions to economics.     

William Hutt and the Economics of Apartheid

The work of William Hutt is well knownin the fields of labor economics, monetary economics and politicaleconomy. A hundred years after his birth it is appropriate totake note of a less well known work of his, The Economics ofthe Color Bar. This book, first published in 1964, is an in-depthexamination of the origins and implications of apartheid in SouthAfrica his adopted country of residence for 38 years of his life.It can be read today not only as an authoritative and illuminatingpolitical and social history of South Africa from its first colonizationuntil the time of writing, but also as a window into the originsof South Africas current dilemmas.     

Andre Gunder Frank: ‘Unity in Diversity’ from the Development of Underdevelopment to the World System

The purpose of this article is to critically review the work of Andre Gunder Frank. This is no easy task given the prolific and controversial nature of his life work. His main distinction is as a paradigm breaker and a paradigm maker. Frank is one of the founders of contemporary world system theory. He coined some memorable expressions such as the ‘development of underdevelopment’ and ‘Re-Orient’. Indeed, these two concepts highlight two distinct phases in his work. His first phase is characterised by his writings on dependency theory and his initial understanding of world system theory broadly in line with Amin, Arrighi and Wallerstein. His second phase is distinguished by what he considers to be the ‘Eurocentric’ interpretation of world system theory of Wallerstein and others as well as by his critique of his own earlier work. While some of Frank's analyses and assertions proved to be wrong, he provided much inspiration to a new generation of scholars and activists, some of whom provided the necessary empirical evidence and theoretical rigour lacking in parts of Frank's work. But he excelled in his mission of providing the big picture, asking the unimaginable questions and exploring hitherto inconceivable interrelationships.     

NEW LIGHTS ON THE ROBBINSIAN THEORY OF WORK SUPPLY

We assess the actual relevance of Robbins' paper ‘On the elasticity of Demand for Income in terms of Effort’ to the theory of work supply. First, we show that the paper is the first application of income and substitution effects to this branch of economic research. Next, we analyse Robbins' economic terminology, especially his definition of work. We find that the concept of work he uses could seem vague as he may be considering both the length and intensity dimensions of this activity. To verify this possibility, we formally reassess Robbins' original proposal by introducing this wider definition of work into the mathematical framework he proposes. The resulting model shows that this reading (i) is compatible with his diagrammatic analysis; (ii) clarifies the meaning of the other vague economic concepts the author uses; and (iii) illuminates his verbal explanations. Additionally, we derive all the relevant results of both the income‐leisure and the more recent effort‐extraction models from this Robbinsian model of work supply. This last outcome allows us to state that Robbins' model comprises current theories of work supply.     

‘… More of Keynes and Less of Milton Friedman!’ 1

This paper gives an account of the scientific work of a pioneer whose heterodox ideas stimulated debate in development economics for more than three decades. It will be shown that his intellectual biography—in particular, his experiences as a victim of National Socialism—provided an important stimulus for his commitment to the problems of the socially underprivileged. This led him to initiate several studies of unemployment in the depressed areas of Great Britain during the Great Depression and the Second World War. Then, starting from the late 1940s, during the years of his affiliation with the UN, he made pathbreaking contributions to the economics of underdevelopment in fields such as the deterioration of terms of trade, the basic needs strategy, and food security. The topics will be discussed both in the context of history of thought and with regard to recent work in development economics.     

The Emergence of Hayek's Ideas on Cultural Evolution

F. A. Hayek's writings on cultural evolution are an essential part of his work, and some aspects of these writings (e.g., his defense of group selection) have generated considerable controversy. This historical paper traces the circumstances that led Hayek to introduce cultural evolution and related ideas into his work.     

Foundations of an Institutional Theory of Regulation

Although the work of Clarence Ayres is held in high regard within the tradition of American Institutionalism, it has made little impact upon the study of technology more generally. Moreover, even within the Institutionalist tradition, his work is seen to embody a tension - on the one hand his dichotomy between technology and institutions is too strict, but to the extent that it is "softened," his main contributions are undermined. This paper argues that Ayres' work does have something to contribute to current technology debates, but that this contribution cannot be made if his conception is "softened" in the way that recent contributions suggest.     

Starvation and Social Class: Amartya Sen on Markets and Famines

In his recent work, Amartya Sen assesses markets positively because they contribute to freedom. His work on famines, however, harbours a critical stance toward markets. In this paper, I compare Sen's ‘two views’ of markets and argue that his positive assessment is untenable. Markets can undermine freedom and, to show this, I examine the effects of market-dependence in times of famine; I extend the purview of Sen's analysis to include the manner in which subsistence producers who were once relatively autonomous from markets for their survival become dependent on markets. In conclusion, I examine the normative aspects of Sen's work on famines.     

Understanding Social Market Economy,Francesco Forte and His Interpretation

The social thought which emerges from Francesco Forte’s economic writings proves to be mainly inspired by methodological individualism, though interpreted through a peculiar “personalistic” key. We will analyze the peculiar traits of his thought and the specific contribution that Forte gave to the understanding of a specific economic theory based on the doctrine of “Ordoliberalism” or the “Freiburg School.” In our work, we will show how Forte proposes an interpretation of that doctrine, according to two of his main points of reference in economic and philosophical thought: Luigi Einaudi and Antonio Rosmini Serbati. Finally, we will present an important aspect of Forte’s work: his institutional analysis in the light of the particular civil philosophy expressed by Christian social teaching.     

Gordon Tullock and experimental public choice

In this paper, I discuss Gordon Tullock’s views on Experimentation in Economics, his own research experiment, and his influence on the field of experimental public choice. I argue that Tullock can credibly claim to have been an early supporter of the method and that his work is cited more often than that of other public choice scholars active in the same period. His work on rent seeking forms the basis of an extensive experimental literature and studies on trust, demand revelation and voter turnout have been strongly influenced by Tullock’s work.     

A Note of Thanks

This paper examines the early years of Piero Sraffa's career. Its purpose is to present

new information that may improve our undersranding of his life and work and to integrate or rectify what is already contained in the biographical essays published during the fast two decades with new data emerging from his personal papers at the Wren Library of Trinity College and from other—often related—sources.     

Agents as Empirical Macroeconomists: Thomas J. Sargent’s Contribution to Economics*

Thomas J. Sargent has fundamentally changed and, in the words of Art Rolnick, who interviewed him in 2010, “irrevocably transformed” the field of macroeconomics—whether as sole author, as co‐author with collaborators, as an author influenced by others, or as a teacher of the profession, influencing others. This paper is about his contribution to our field. The Nobel Memorial prize to Thomas J. Sargent and Christopher A. Sims has been awarded for the “empirical research on cause and effect in the macroeconomy” or, more broadly, for macroeconometrics. One often likes to distinguish between theorists, on the one hand, and empiricists and econometricians, on the other. Thomas J. Sargent holds a unique position in between. A key theme in a large part of his work has been to put the agents in his model on equal footing with the econometrician who is observing data from the model (i.e., to assume that agents are themselves empirical macroeconomists or macroeconometricians). In this paper, I use this theme to examine his work and his contributions to the study of economics.     

Pricing,distribution, investment and growth: the economics of A. S. Eichner

In this tribute to Eichner I outline some of the key features of his economic system. It is maintained that no proper understanding of Eichner's views can be achieved without a thorough examination of his distinctive views of economic methodology. Eichner's alternative macroeconomic model is then analysed and its implications explored. Although his model is internally consistent it is recognized that problems exist and further articulation is necessary. It is argued that Eichner leaves a heritage from which much fruitful work can be developed.     

Angus Deaton’s Nobel Prize for Confronting Theory with Facts

Angus Deaton, recipient of the 2015 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is broadly recognized as an outstanding applied economist who is well deserving of the prize. He has made a myriad of important contributions—alone and with renowned co-authors—across many fields. In this review of his work, I argue that it is his methodological consistency and focus on the two-way connection between empirics and theory, together with his attention to detail of how things are measured, that support his recognition by his peers. Informed by a career of doing careful econometric work using household surveys—especially on consumption, development, well-being and health—in his popular writing, Deaton chooses to focus on the importance of institutions, history and other disciplines.     

Gardiner C. Means's institutional and post-Keynesian economics

In this tribute to the work of Gardiner Means, we shall argue that his influence has been on a par with that of Keynes on economists of an unorthodox persuasion. It is argued that his pioneering work in studying the modern corporation as an institution that needs to be fully understood, renders him a first-rate institutionalist. Intriguingly, it is also suggested that his interest in the microeconomic foundations of macroeconomic performance are suggestive of post-Keynesian concerns.     

Max Weber's critical response to theoretical economics

Abstract

Max Weber's work currently forms the centre of a strategy to rebuild heterodox thought around economic sociology. The instrumentalisation of Weber is based on a lack of understanding of his response to economic theory. This article seeks to fill this gap. It will show that Weber extended Menger's work by correcting its naturalism and that his critical response rests on a Kantian approach, as explained below. It appears that a pure non-Walrasian theory is therefore possible and that the heterodox reclaiming of Weber is based on a misinterpretation of his work.     

Optimal Contracts When a Worker Envies His Boss

A worker's utility may increase with his income, but envy canmake his utility decline with his employer's income. This articleuses a principal-agent model to study profit-maximizing contractswhen a worker envies his employer. Envy tightens the worker'sparticipation constraint and so calls for higher pay and/ora softer effort requirement. Moreover, a firm with an enviousworker can benefit from profit sharing, even when the worker'seffort is fully contractible. We discuss several applicationsof our theoretical work: envy can explain why a lower-levelworker is awarded stock options, why incentive pay is lowerin nonprofit organizations, and how governmental productionof a good can be cheaper than private production.     

The concept of freedom and its relation to economic development--a critical appreciation of the work of Amartya Sen

Following a brief review of the conception of freedom as employedin economic discourse, this paper focuses on the evolution ofthe concept of freedom in the work of Amartya Sen. It tracesthe development of Sen's thought from the capability analysisof the late 1970s to his more recent separation of freedom intoits opportunity and process aspects. While broadly appreciativeof Sen's development of the concept of positive freedom, thepaper identifies some difficulties arising from his definitionof capability as a set of options as well as from his separationof the opportunity and process aspects of freedom. Aspects ofthe relationship between Sen's conception of freedom and thatof Marx are discussed briefly in the context of Sen's recentdiscussion of the market as a source of freedom.     

An appreciation of Professor Stephan Klasen and his contribution to development economics

Stephan Klasen, one of the world's leading development economists, passed away on October 27, 2020. We reflect on his life's work as an exemplary scholar, his relentless quest to improve development policy, and his legacy as a mentor and source of inspiration to his students.