What is Heterodox Economics? Conversations with Historians of Economic Thought

Since its intellectual inception, the development of the economics discipline has been accompanied by divergence of thought. Through the years, particularly in the latter half of the twentieth century, a fissure has emerged within the discipline, sociologically dividing conventional, mainstream economics from the dissention of heterodox economics. The nature of that division, however, as well as the nature of heterodox thought is unclear. Historians of economic thought would seem to be uniquely suited to specify the nature of heterodox economics and the mechanism of its marginalization. Although anecdotal, personal interviews with historians of economic thought provide a breadth and depth of study not available through surveys with an immediacy not allowed by doctrinal examination. The purpose of this study and intent of this paper is to reveal the ways that orthodox and heterodox economics differ, whether heterodox economics has any clear research program other than criticizing the limits of the more orthodox view, and what aspects of heterodox economics remain underdeveloped, all through the lens of the historian of economic thought.     

What is Heterodox Economics? Conversations with Historians of Economic Thought

Since its intellectual inception, the development of the economics discipline has been accompanied by divergence of thought. Through the years, particularly in the latter half of the twentieth century, a fissure has emerged within the discipline, sociologically dividing conventional, mainstream economics from the dissention of heterodox economics. The nature of that division, however, as well as the nature of heterodox thought is unclear. Historians of economic thought would seem to be uniquely suited to specify the nature of heterodox economics and the mechanism of its marginalization. Although anecdotal, personal interviews with historians of economic thought provide a breadth and depth of study not available through surveys with an immediacy not allowed by doctrinal examination. The purpose of this study and intent of this paper is to reveal the ways that orthodox and heterodox economics differ, whether heterodox economics has any clear research program other than criticizing the limits of the more orthodox view, and what aspects of heterodox economics remain underdeveloped, all through the lens of the historian of economic thought.

What＇s Wrong with the Chinese Cyber Market？ -A Discussion on Trust

Given the booming of internet usage in its domain, Chinese on-line shopping business is not growing proportionately. The absence of a market mechanism based on trust among suppliers and customers is to blame, although other factors as well holding the responsibility. Beginning with an introduction to the theory of ＂lemons＂, this paper reviews the status quo of trust in the Chinese cyber market, from the perspective of legislation, regulation and institution. It also prescribes several possible micro-solutions.     

What Happened to Kapp’s Theory of Social Costs? A Case of Metatheoretical Dispute and Dissent in Economics

In the early 1970s Wilfred Beckerman and K. William Kapp engaged in a serious dispute. Although it focused on social costs, the dispute raised issues about the very foundations of economics. The differences in approach to social costs that this dispute exposed were so deep-rooted as to preclude (or at least hinder) any possibility of constructive dialogue. This article argues that the subsequent ‘conspiracy of silence’ against Kapp should be understood in terms of Kapp’s very different conception of economics as a social science. This issue is relevant to a broader discussion about the boundaries of pluralism in economics—how these boundaries are drawn and the conditions for a constructive dialogue among economists and with other social scientists.     

The Economics of Ageing—What Do We Face?

We, as taxpayers, face challenging problems in assisting the well-being of old people mainly because preparing for and living through old age is a risky business. Through government, taxpayers can provide some insurance against the risks of old age, especially the risk of bad health and the risk of a long life. However, the ageing population suggests that maintaining this support will require increased taxation. This article quantifies this challenge for Australia and concludes that although increased taxation may be required it will be easily affordable from the much higher incomes generally received due to the secular increase in productivity.     

‘Economics with Training Wheels’: Using Blogs in Teaching and Assessing Introductory Economics

Blogs provide a dynamic interactive medium for online discussion, consistent with communal constructivist pedagogy. The author of this article describes and evaluates a blog assignment used in the teaching and assessment of a small (40–60 students) introductory economics course. Using qualitative and quantitative data collected across four semesters, students’ participation in the blog assignment is found to be associated with student ability, gender, and student perceptions of the blog. Importantly, students with past economics experience do not appear to crowd out novice economics students. Student performance is positively associated with the quality of their blog participation after controlling for student ability, suggesting that a focus on quality of student engagement could further improve learning outcomes. Students generally report overall positive experiences with the blog assignment.     

What is driving China’s decline in energy intensity?

While energy intensity in China has fallen almost continuously since the onset of economic reform in the late 1970s, beginning in 1996 the data show a striking decline in China’s absolute level of energy use. Most of this decline can be accounted for by falling coal consumption in the industrial sector. In order to investigate this energy puzzle, this paper employs a unique set of panel data for approximately 2500 of China’s most energy intensive large and medium-sized industrial enterprises during 1997–1999. Rising relative energy prices, research and development expenditures, and ownership reform in the enterprise sector, as well as shifts in China’s industrial structure, emerge as the principal drivers of China’s declining energy intensity and use.     

Household Versus Individual Valuation: What’s the Difference?

Standard practice in stated preference typically blurs the distinction between household and individual responses, but without a clear theoretical or empirical justification for this approach. To date there have been no empirical tests of whether values for say a two adult household elicited by interviewing one randomly selected adult are the same as the values generated by interviewing both adults simultaneously. Using cohabiting couples, we conduct a choice experiment field study valuing reductions in dietary health risks. In one treatment a random individual is chosen from the couple and interviewed alone; in the other treatment, both partners are questioned jointly. We find significant differences in household values calculated from joint as opposed to individual responses, with further variation between the values elicited from men and women. Our results question the assumption, implicit in common practice, that differences between individually and jointly elicited estimates of household values can effectively be ignored.      

Markets,Morality and Climate Change: What,if Anything,is Wrong with Emissions Trading?

This article explores whether emissions trading is morally defensible To do so it examines three different kinds of moral consideration Which might be used to judge emissions trading. The first kind makes what I term an ‘ethical’ objection, and holds that utilising market instruments to combat climate change is inherently objectionable. I examine three versions if this ‘ethical’ argument but find none persuasive. The remainder of the article considers two additional moral considerations, both of which appeal to principles of justice. Drawing on these it argues that emissions trading can be morally defensible but only it it meets these two demanding moral criteria. First, the costs of emissions trading should be shared equitably. The paper examines what this might mean and criticises the leading account of what constitutes a just distribution of emissions Second, emissions trading must make an appropriate contribution to climate mitigation. A number of ways in which current emissions trading schemes signally fail to meet this second criterion are then noted. The article concludes that emissions trading schemes could in principle be morally defensible but only if new schemes are introduced or existing schemes are radically redesigned in line with the principles outlined in the article.