Economics, Sociology, and the "Professional Complex"

A bstract .   This article discusses the relationship between economics and sociology in the context of Parsons's analytical theory of action and systems and his criticisms of orthodox and institutional economics. The article also addresses his view of the importance of the professions to an understanding of the nature of advanced capitalism. The professions are discussed as both an illustration of his theoretical argument and a substantive problem that stimulated the development of his theory. The "professional complex" is an emergent phenomenon in capitalism that modifies its operation and points to the complexity of systems of social action that require to be analyzed without being reduced to one of their elements. This reductionism is evident in orthodox economic theory and also in the more sociologically-oriented approach of institutional economics. Parsons argues that each is a form of what, following Whitehead, he calls the "fallacy of misplaced concreteness." Although Parsons offers a significant critique of dominant approaches in economics, major flaws within his own theory create the appearance that he has simply carried over the deficiencies of orthodox theory into his own general statement of theory. These flaws contribute to major misunderstandings of Parsons's project and, therefore, indicate continuing problems in the relation between economics and sociology.     

Economics at University II

In part II of his review of economics at university for undergraduates, our anonymous commentator continues his light-hearted survey of the next step in economics after 'A' Level.     

On the Future of Keynesian Economics

Abstract . Keynesianism continues to lose its dominance in macroeconomics. New Keynesians attempt to rescue it from irrelevance with models recognizing (1) the noninstantaneous adjustment of product prices, (2) imperfect knowledge, and (3) nonclearing labor markets. But these are conditions recognized in classical macroeconomics. The new, post‐, and neoclassical Keynesians also seem to be unaware that the five principal pillars upon which Keynes founded his economics, including his conception of saving, the multiplier process, and theory of interest, are badly flawed. Confronting evidence of these flaws will turn the future of Keynesianism into one of a struggle to sustain a dimming light.     

Supply-Side Economics and the Future

How will supply-side economics fare under the new administration? Paul Craig Roberts of the Center for Strategic and International Studies at Georgetown University in Washington, argues that supply-side economics was the major success of President Reagan but that the new administration may not follow its predecessor's example.     

The Changing Relationship Between Economic Sociology and Institutional Economics

A bstract In his early work. Talcott Parsons severely criticized Old Institutional Economists like Thorstein Veblen and Clarence Ayres. Parsons'main objection was that institutional economics had a misconceived view on the scope of economics: institutions, being the embodiment of values, were the proper subject of sociology rather than economics. By arguing for a clear-cut division of labor between economics and sociology. Parsons legitimated the divide between the two disciplines that came into being in the years to follow. Recently however, the relationship between economic-sociology and institutional economics has changed dramatically. New Economic Sociology (advocated by scholars like Mark Granovetter and Richard Swedberig) rejects the division of labor proposed by Parsons. By-providing substitutes rather than just complements to economics, it tries to counter economic imperialism. This creates significant similarities between New Economic Sociology, Old Institutional Economics and the recent return of institutionalism in economic theory. However, the quest for a division of labor between economics and sociology remains unfinished.     

The New Classical Economics

Classical economics was thought to have been displaced by Keynesianism. Professor Patrick Minford, of the University of Liverpool, outlines a new classical economics that shares the economics of Adam Smith's 'invisible hand' but refines it in modern terms with the insights of rational expectations and demonstrates its importance for policy in the 1980s.     

The Economics and Theology of Giving

What can economics add to the theology of charity? Dr Barry Bracewell-Milnes explains how charity increases total wealth and explores the relationship between his economic analysis and Christianity.     

Professor Ludwig M. Lachmann (1906-1990): Scholar, Teacher, and Austrian School Critic of Late Classical Formalism in Economics

Ludwig M. Lachmann was born in Berlin in 1906 and died in Johannesburg in 1990. For more than forty years, until his retirement in 1972, Lachmann established himself as a prominent South African economist and for a time served as head of the economics department at the University of Witwatersrand. From 1974 to 1987, he worked with Professor Israel Kirzner in New York City to give new shape and life to the older Austrian school of economics. Lachmann influenced a small army of modern Austrians to discard the elaborate formalisms of orthodox economics for a "radical subjectivism" that had its roots in the teachings of the founder of the Austrian school, Carl Menger. Here a small platoon of scholars offer their thoughts about Lachmann, his contributions to economic reasoning, and his eccentric but engaging character. First hand reports explain what their mentor taught and what his students took away. Lavoie makes the case that Lachmann's "radical subjectivism" took a rhetorical turn toward the end of Lachmann's career in New York City. In addition, Kirzner reports on his long and most productive relationship with Lachmann and provides additional insights about the seminal role of the Austrian Economics Seminar at New York University from 1985 to 1987 in giving shape to the modern Austrian revival. This article is the written version of a "Remembrance and Appreciation Session" held on June 28, 1999 at the History of Economics Society meeting at the University of North Carolina in Greensboro. It is one of an ongoing series that appears in the July issues of this journal.     

Research In Strategy,Economics, and Michael Porter*

This article links up with recent discussions of the strategy/economics nexus. In contrast to most of the proponents and opponents of economics in strategy thinking, a balanced pluralist perspective is adopted. According to this, a discipline should strike a balance between the generation of new theoretical alternatives and the selection among them. Applying this general idea, I argue that the strategy field is too pluralistic, and that the unfortunate consequences of excessive pluralism and eclecticism may be remedied by economics playing a larger role in the conversation of strategy researchers. This does not necessarily mean standard neoclassical economics or new industrial organization economics; evolutionary economics, for example, is a serious contender, too. the evolution of Michael Porter's thinking is used as a case for demonstrating some of the advantages and some of the dangers of economics in the strategy field, and for illustrating points about eclecticism and pluralism.     

Keynesian Comparative Economics:

A BSTRACT . The authors of this article review the late E. Lynn Turgeon's contributions to economics, including his studies of the Soviet economy, use of qualitative and demographic analyses, his Keynesian critique of U.S. economic performance, and his critique of international financial markets. Turgeon's comparative approach led to unique insights about the challenges that confronted planned economies, including the differential impact of military spending on the demand-constrained economy of the United States and the supply-constrained economy of the Soviet Union. His study of the Soviet and planned economies also informed his analysis of the U.S. economy and international adjustment mechanisms. Turgeon argued for expansionary fiscal and neutral monetary policies, prudential restrictions on portfolio capital flows, and increased foreign direct investment and foreign assistance to shift the burdens of adjustment from deficit to surplus countries. Throughout his career, Turgeon measured economic policies by their effects on real people, including impacts on employment, the environment, living standards, and distributions of income and wealth.     

The New Student's Guide to Economics at Universities and Polytechnics

What should the new student in economics at college expect? Anthony Ones, a lecturer in economics at Buckingham University, outlines how economics is taught at universities and polytechnics.     

Henry George and the Ethics of Economics

Abstract . Henry George's Progress and Poverty (1879) is a great ethical masterpiece. Its moral tone distinguishes the book. More than an economics test, it is a philosophic quest for justice, an impassioned declaration of the rule of natural law. Indignantly attacking the contention that economics has no place for natural law or ethics, George exclaims: “She [economics] has been degraded and shackled; her truths dislocated; her harmonies ignored.” On the contrary, George stresses, political economy (economics) is a science, and like all sciences, is governed by natural law. Furthermore, it is basically “moral.” Science must, of necessity, always lead to ethics. Natural law must, of necessity, always lead to morality, or justice.“The law of human progress, what is it but the moral law?” George asks. “Unless its foundation be laid in justice the social structure cannot stand.” The social ill that perpetuates poverty and the manifold evils it causes is private ownership of land and the private privilege of collecting its rent. “The fundamental law of nature, that the enjoyment by man shall be consequent upon his exertion, is thus violated.”     

Internationalizing the Undergraduate Economics Curriculum

The internationalization of the economics curriculum has been limited by the absence of a modern amroach in specific courses, especially at the introductory and intermediate levels. This paper argues that in order to fully internationalize the undergraduate economics curriculum, microeconomics courses should be approached from a perspective based on the economics of organization and management and game theory. A conceptual framework for internationalizing the curriculum based on this approach is presented. This framework is employed to introduce opportunities to internationalize each course and discuss the role of each course in internationalizing the whole curriculum.     

'A' Level Economics Model Answers I

Graham Dawson, who has taught economics for 12 years at Bedford High School, gives the first of a new series of Model Answers for 'A' Level economics.     

市场营销起源的交易成本经济学解释

信息不对称和交易成本的存在严重影响了市场交易活动的有效进行,不利于分工的深化和生产效率的提高,进而又影响了社会整体利益的提高。市场营销正是为了解决以上交易难题而产生的,营销组合同样是通过降低信息不对称的程度和减少交易成本而发挥其作用的。从交易成本经济学的角度解释市场营销的起源,可以揭示出营销学与经济学之间的内在联系,为营销理论的深化提供了一个新的切入点,并且为营销实践提供了理论支撑。     

制度经济学视角下的现代医院管理

20世纪60年代以来,经济学最为引人瞩目的发展之一就是新制度经济学的出现和发展。本文运用制度经济学的基本原理,从宏观方面分析现代医院管理体制存在的不足,并针对这些不足,提出合理的解决措施。     

Schmoller's Method as a Critique and Alternative to Marginalist Economics: a Comment to Louzek

This article comments upon Louzek ( 2011 ) in this journal, claiming that the analysis of Schmoller's method, as evidenced by his practice, allows us to highlight a few themes that are relevant not only in reconstructing his critique of Menger's methodological proposal but also for an extension of such critique to the current mainstream economics.     

New Institutional Economics in the Post-Socialist Transformation Debate

The paper suggests that there is a tension between the basic tenant of New Institutional Economics (NIE) and the manner in which it has been applied in the debate on post-socialist transformation. This tension is explored in the context of four main perspectives on NIE: (i) property rights, (ii) transaction costs economics, (iii) new economic history, and (iv) evolutionary economics. There are two main arguments. The first is that the transformation phase should be seen as 'open-ended' rather than a 'closed process' where the 'pure market' is the inevitable end result. The second is that, although the NIE literature touches on most of the issues which are relevant to post-socialist transformation, the insights that it offers are still too general for policy guidance.     

从波普尔到索罗斯——论心理学对西方当代经济学的意义

心理学和经济学为现当代重要的学科门类,两者在很大程度上存在关联,相互交叉。近年来,心理学的新发现对经济学的发展有了实质性的推动。本文就波普尔和索罗斯的哲学理论及其对当代西方经济学的贡献作进一步的完善和梳理,深入探讨心理学对西方当代经济学的影响及意义,在探寻心理学与经济学两者关系的同时,展望经济学发展的新方向。     

The Heterodox Economics of "The Most Orthodox of Orthodox Economists"

A bstract The prevailing view of Frank Knight is that he was a defender of neoclassical economics and the free market system While this view has validity, it tends to obscure the presence of significant heterodox elements in his thought Knight was, in fact, one of the most perceptive critics of economic orthodoxy and the market system The question thus arises as to how Knight could combine advocacy and criticism of the market system Knight reconciled the two by separating questions of policy from the evaluation of ideals. Thus while his criticism of the market system proceeded on the basis of regarding it as ideal, in contrast his judgments on policy were based upon comparisons of the available alternatives. Knight found the alternatives to the imperfect market order even less appealing