Adam Smith's Entwurf eines politokonomischen systems

There are two core elements in Smith's draft of a politico-economic system, an individual-social orientated and a society-state orientated one. Economic actions and institutions have to bring both centres together so as to perform their main functions. Coming to self-autonomy, liberty and justice would be final goals of the Smithian “system of natural liberty”, for which Smith is famous. But he did not simply trust in self-fulfilling Natural Law. The “system of natural liberty” means a faculty, by which the society could develop, if the individual initiated actions might play their leading roles due to an ethical consensus in society, and if the state would be quite aware of his ordo-political task as a constructive matter. Smith gives no recipes. The generations have to find those for themselves. Thus, Smith cannot be called a determinist, but rather an evolutionist.The most exiting results can be found in a fundamental search for Smith as a master of politico-economical methods. The learned prejudice that the “grand classic” was somewhat eclectic and contradictious is to be forgotton. The master's “faults” might be analyzed as a genuine heterogeneous ones, essential for a realistic and pragmatic political economy. This would provide an urgent and modern message.     

Dualistic Discourse and Immigration Policy

Abstract:

The central question in immigration policy is whether to support less immigration through more “restrictive” laws and procedures or whether to support more immigration through a “relaxation” of existing laws. Recently, however, a second debate has arisen on one side of this debate regarding the appropriate types of arguments that may be used to support “restrictive” immigration. Ross Douthat refers to this dispute as the “race versus economics” question: using “race-based” arguments is not legitimate; while an “economic” or a “fact-based” argument is regarded as legitimate. We argue that this distinction in anti-immigration rhetoric is more apparent than real. Using the two most common historical “tropes” in immigration policy, “criminal” and “worker,” we find that racist, anti-ethnic, and classist assumptions pervade U.S. immigration law and policy and have been far more influential in formulating actual policy than either economic or “fact-based” analysis. The central problem with restrictive immigration policy is that its primary purpose is to determine who is eligible to be an American, and who is not; in other words, immigration policy is, by its fundamental intent, invidious. The question is whether it is possible to exclude individuals on these “legitimate” grounds without relying on “illegitimate” invidious distinctions?     

The Dowry Gift in South Asia: An Institution on the Intersection of Market and Patriarchy

Abstract

Dowry refers to marriage gifts that are instrumental to the negotiation of the marriage contract. Historically, the dowry gift was constituted by law across the Roman empire. While dowry has become largely irrelevant in Europe in contemporary times, it is still pervasive across the Brahmanical Hindu societies of South Asia. Moreover, what was traditionally token gifts from friends and well-wishers has taken on the form of “new dowry” since the colonial period. “New dowry” is heavily composed of cash and market goods, including land and is frequently accompanied by violence against new brides when their families fail to make larger dowry gifts with higher market value. This article examines the evolution of “new dowry” through a Polanyian lens. Unlike the neoclassical Beckerian approach which takes an ahistorical outlook to marriage as a “market” for matching partners and dowry as a market price, the substantivist lens à la Polanyi investigates the historical evolution of “new dowry” through the advent of market processes in the colonial period and the countermovement of legal reform in the post-colonial period.     

Why should Austrian economists be pluralists?

Peter Boettke (2007) argues that economists need not act pluralistically in order for pluralism to thrive in the marketplace of economic ideas. From a market process perspective, Boettke sees intellectual diversity and openness as catallactic outputs, not inputs—emergent by-products of academic specialization and trade. To expect individual scholars to behave in a pluralistic manner is unnecessary and “completely inappropriate” since it detracts from their central task: “to commit themselves to an approach and pursue it doggedly, even in the face of great doubt and resistance by one’s peers” (Boettke 2007). This paper proposes a Smithian revision of Boettke’s position. The author argues that scholarly pluralism is best understood as a constitutional rule of academic life—a virtue ethic that promotes learning and intellectual freedom by mitigating tyranny and autarky in the republic of science. Drawing from the writings of Adam Smith, Friedrich Hayek, Deirdre McCloskey, Bruce Caldwell, James Buchanan, Don Lavoie, and Boettke himself, the author argues that scholarly pluralism has been, and continues to be, a necessary condition for the flourishing of Austrian economists as free, responsible, efficacious thinkers.     

Adam Smith's “tolerable administration of justice” and the Wealth of Nations

Adam Smith argues that a country’s income depends on its labor productivity, which in turn hinges on the division of labor. But why are some countries able to take advantage of the division of labor and become rich, while others fail to do so and remain poor? Smith describes how the security of property rights, through a “tolerable administration of justice,” allows investment and exchange to take place, bringing about economic progress. Recent empirical work on economic development has supported Smith’s emphasis on a country’s political “institutions,” particularly the judiciary, in determining its national income.     

Adam Smith: From Propriety and Sentiments to Property and Wealth

“Why return to Adam Smith?” Because we learn that he had fresh-for-today insights, derived from a modeling perspective that was never part of economic analysis. Smith wrote two classics: The Theory of Moral Sentiments (1759; hereafter Sentiments); and An Inquiry into the Nature and Causes of the Wealth of Nations (1776; hereafter Wealth). In Sentiments it is argued that human sociability in close-knit groups is governed by the “propriety and fitness” of conduct based on sympathy. This non-utilitarian model provides new insights into the results of 2-person experimental “trust” and other games that defied the predictions of traditional game theory in the 1980s and 90s, and offers testable new predictions. Moreover, Smith shows how the civil order of “property” grew naturally out of the rules of propriety. Property together with what I call Smith's Discovery Axiom then enabled his break-through in Wealth that defined the liberal intellectual and practical foundation of two centuries of Western economic growth.     

The plural roots of rewards: awards and incentives in Aquinas and Genovesi

Abstract

In this economic debate, incentives (material, extrinsic) and awards (symbolic, intrinsic) are conceived as two opposite tools to prompt human actions. In this article, we provide a historical argument to problematise this opposition. We investigate the idea of prizes (“premi”) in the works of civil economist Antonio Genovesi, and its seeds in Thomas Aquinas’ thought. They both discuss if material rewards can crowd-in intrinsic motivations. Aquinas considered the crowding-out risks related to honour (award). Genovesi stressed the role of private prizes (incentives) and market in fostering the development of society, and claims that crowding-in is more common than crowding-out.     

An activist revival in central banking? Lessons from the history of economic thought and central bank practice

Abstract

We introduce the “minimalist–activist” spectrum as an analytical prism through which to view key aspects of central banking theory and practice. We focus on the activist end of this spectrum, concentrating on economic growth. We explore the theoretical roots of these ideas in the writings of Dennis Robertson. We illustrate central banking practice by detailing some approaches followed by central banks pursuing economic growth and development in the decades following the Second World War. History of monetary thought, monetary theory, and analysis of central bank practices blend together to illuminate key principles and practices of central banking.     

Overcoming Contemporary Mythology: An Essay

Over the last 35 years, a free market, laissez faire program has increasingly dominated perceptions as to what constitutes correct economic theory and policy. Most adherents of this program trace its origins to Adam Smith, and claim that its dominant position is the result of superior theory.

The argument here is that Adam Smith is not the theoretical ancestor of modern laissez faire economics, and that there are fundamental differences between Smith’s position on laissez faire and that of conventional neoclassical theory. A difference between “soft” and “hard” laissez faire is made, where Smith represents the former position; neoclassical theory the latter. Further, and more important, it is argued that the current laissez faire program is an outgrowth of a political program instituted in the 1930’s and financially supported in the present era by conservative foundations to promote an ideological framework that permits the development of specific governmental (and non-governmental) actions.     

Development and Psychometric validation of the Diabetes Therapy-Related QOL (DTR-QOL) Questionnaire

Abstract

Objective:

We developed and evaluated the psychometric properties of the Diabetes Therapy-Related QOL (DTR-QOL) as a disease-specific, self-administered questionnaire to assess the influence of diabetes treatment on patient QOL, regardless of treatment method.

Methods:

This new questionnaire was developed and validated in a standardized manner: Item development, pilot-testing and psychometric validation. A survey was conducted using the provisional version of the questionnaire, and reliability and validity were evaluated with psychometric testing.

Results:

The provisional version of the questionnaire was generated with 29 items through literature review and pilot testing. For psychometric assessment, analyses were performed on the responses of 284 adult Japanese patients with diabetes. Factor analysis by the principal factor method with promax rotation revealed 4 factors; “burden on social activities and daily activities” (13 items), “anxiety and dissatisfaction with treatment” (8 items), “hypoglycemia” (4 items), and “satisfaction with treatment” (4 items). For reliability, the intraclass correlation was 0.92, and Cronbach’s alpha coefficient was 0.94, indicating adequate test-retest reliability and internal consistency. For known-group validity, there were significant differences in scores for following variables: age, diabetes type, HbA1c, treatment method, glycemic control, hypoglycemia, nocturnal hypoglycemia, concern about weight gain, health status (patient assessment), and degree of communication with physician.

Conclusions:

The DTR-QOL, with good reliability and validity, can assess the influence of diabetes treatment on patient QOL. The DTR-QOL can be used regardless of treatment method that patients receive, and this characteristic enables to detect a difference on patients QOL between treatment methods before and after a switch of treatment. Limitations of this study include representativeness of the patient sample. The relatively small number of patients with type 1 diabetes should be noted. Also, responsiveness of the DTR-QOL has not yet been examined.     

Toward Reasonable Capitalism: The Role of John R. Commons’s Price and Business Cycle Theories

Abstract

John R. Commons thought that prices should be stable and that the law of supply and demand should be controlled by the power of the state through patent law and by protecting bargaining equality. Commons also thought that prices should be stabilized by macro monetary policy. These means would allow the realization of a “reasonable price.” Commons called the objective and measurable value in money, which is determined by a court ruling, “reasonable value.” Analysis of Commons’s price and business cycle theories point toward the realization of both “reasonable price” and “reasonable value” and toward “reasonable capitalism” that can replace banker capitalism.     

Adam Smith and the “rich country–poor country” debate: eighteenth-century views on economic progress and international trade

Despite his emphasis on economic development, Adam Smith did not participate in the contemporary “rich country–poor country” debate. Some see the absenteeism as a deficiency, while others assume that Smith propounds a theory of uneven development and agrees with the divergence argument. In this article, Smith's own theory is expounded and related to the contentious points of the “rich country–poor country” debate. It is concluded that Smith's theory does not fit easily into the categories of this debate. He rather takes up a third position, being neither a proponent of pure convergence nor of pure divergence.     

Relevance of barriers and facilitators in the use of health technology assessment in Colombia

Objectives: Several studies, mostly from developed countries, have identified barriers and facilitators with regard to the uptake of health technology assessment (HTA). This study elicited, using best-worst scaling (BWS), what HTA experts in Colombia consider to be the most important barriers and facilitators in the use of HTA, and makes a comparison to results from the Netherlands.

Methods: Two object case surveys (one for barriers, one for facilitators) were conducted among 18 experts (policymakers, health professionals, PhD students, senior HTA-researchers) from Colombia. Seven respondents were employees of the national HTA agency Instituto de Evaluación Tecnológica de Salud (IETS). In total, 22 barriers and 19 facilitators were included. In each choice task, participants were asked to choose the most and least important barrier/facilitator from a set of five. Hierarchical Bayes modeling was used to compute the mean relative importance scores (RIS) for each factor, and a subgroup analysis was conducted to assess differences between IETS and non-IETS respondents. The final ranking was further compared to the results from a similar study conducted in the Netherlands.

Results: The three most important barriers (RIS >6.00) were “Inadequate presentation format”, “Absence of policy networks”, and “Insufficient legal support”. The six most important facilitators (RIS >6.00) were “Appropriate timing”, “Clear presentation format”, “Improving longstanding relation”, “Appropriate incentives”, “Sufficient qualified human resources”, and “Availability to relevant HTA research”. The perceived relevance of the barriers and facilitators differed slightly between IETS and non-IETS employees, while the differences between the rankings in Colombia and the Netherlands were substantial.

Conclusion: The study suggests that barriers and facilitators related to technical aspects of processing HTA reports and to the contact and interaction between researchers and policymakers had the greatest importance in Colombia.     

Marx,primitive accumulation,and the impact of Sismondi

Abstract

This article re-examines Marx’s well-known concept of “primitive accumulation” in relation to Marx’s successive attempts to give a historical explanation for the birth of “capitalism”. Marx formulated this concept for the first time in Value, Price, and Profit (1865), and extrapolated upon it further in the first edition of the first volume of Capital (1867). It signified an appreciable alteration to Marx’s original historical theory. Indeed, in his writings, preceding the publication of volume 1 of Capital, such as The Communist Manifesto or The German Ideology, Marx had presented a more straightforwardly linear conception of the evolution of human society, consisting of various stages, “capitalism” being the penultimate stage, and “communism”, the last. Within this framework, the most advanced nations, such as Great Britain and Germany, were assumed to be those closest to being on the pre-revolutionary cusp of realising socialism. However, from the publication of volume 1 of Capital onwards, Marx embraced a less deterministic conception of progress, focussing more than previously on economically backwards countries or societies “at the margins” (Anderson 2010 Anderson, Kevin D. 2010. Marx at the Margins. Chicago: University of Chicago Press.[Crossref] , [Google Scholar]) and envisaging for them possibilities for historical development that did not inevitably entail the sort of industrialisation that Great Britain had experienced. This was particularly true regarding Russia, where volume 1 of Capital was welcomed and discussed precisely in light of these questions, as has been underscored by many scholars, notably Shanin, Wada, White, and Stedman Jones.     

From Judicial Sovereignty to Collective Democracy: The Development of J.R. Commons’ Perspective on Progressive Institutional Change

Abstract:

This article clarifies the significance of “collective democracy” in the works of John R. Commons by comparing it with “judicial sovereignty” in terms of its contribution to “progress.” We can thus answer two issues that Paul D. Bush does not clearly address: (i) what setup for policy formation contributes to progress and (ii) what is the role of economists within a collective democracy? Based on the comparison, the answer to the first question is collective democracy, and regarding the second question, the roles of economists as both economists and “institutional” economists are extrapolated.     

The clinical and economic burden of significant bleeding during lung resection surgery: A retrospective matched cohort analysis of real-world data

Objectives: The objective of this retrospective study was to quantify the clinical and economic burden of significant bleeding in lung resection surgery in the US.

Methods: This study utilized 2009–2012 data from the Premier Perspective Database^TM. Adult patients with primary pulmonary lobectomy or segmentectomy procedures were categorized by the surgical approach (VATS vs open) and primary diagnosis (primary or metastatic lung cancer vs non-lung cancer). Patients requiring ≥3 units of blood products with at least 1 unit of PRBCs: “significant bleeding” cohort; those requiring <3 units: “non-significant bleeding” cohort; and those not requiring blood products: “no bleeding” cohort. A matched cohort analysis was performed between the “significant bleeding” and the “no bleeding cohort” using matching variables: hospital, lung cancer diagnosis, year of surgery, APR-DRG severity score, procedure type and approach, age, and gender.

Results: The “All-patient” cohort comprised 21,429 patients: 213 “significant bleeding”; 2,780 “non-significant bleeding”; and 18,436 “no bleeding”. Overall incidence of significant chest bleeding was 0.99%. Patients from “significant bleeding” cohort and “non-significant bleeding” cohort had 2.5 days and 2 days (p?p?Conclusions: Although significant bleeding during lung resection surgery is rare, patients with such complication could stay longer at the hospital and cost an average of $13,103 more than those without.     

The So-Called 2015 Migration Crisis and Euroscepticism in Border Regions: Facing Re-Bordering Trends in the Danish–German Borderlands

ABSTRACT

This paper examines the role of Euroscepticism on regional cross-border cooperation between Germany and Denmark. It demonstrates that Euroscepticism, while absent from local mainstream politicians, had already caused civic unrest in the 1997 attempts to construct a return to history Euro-region Schleswig. It resulted in a re-scaling of the Euro-Region to Region and Schleswig to “Sønderjylland/Schleswig”, omitting any reference to Europe, European identity or a commitment to a closer European union in the relevant agreements. Border controls, on the agenda in 2011 and again since 2015, have demonstrated the institutional weakness of cross-border politics when faced with determined initiatives from the national center. Furthermore, the Eurosceptic Danish People’s Party had its best results in the border precincts both at the latest European and Danish national elections. Euroscepticism, even though difficult to measure on a regional level, seems to have been an ever present underneath current despite a political rhetoric of successful cooperation and cross-border reconciliation. The Danish-German case’s development might be more distinct, but nonetheless representative for European border (and cross-border) regions. While European metropolises develop into thriving cosmopolitan post-nation state societies, this is not necessary the case at Europe’s borders, where categorization and bordering remain common social practices by the large majority of national borderlanders with only a small portion of transnational borderlanders or ‘regionauts’ getting involved in border crossing social practices on a larger scale.     

Jacob Viner on Adam Smith: Development and reception of a theological reading

Abstract

Jacob Viner was one of the most important interpreters of Adam Smith's work, particularly for his emphasis in a classic 1927 article on Smith's theological framework, his discussion of the relationship between the Theory of Moral Sentiments and the Wealth of Nations and dismantling of a popular view of Smith as a doctrinaire advocate of laissez-faire. What is less well known is that Viner's theological reading of Smith developed over the next 40 years through intense study of eighteenth century natural theology, and some of his views changed. This article traces the development of Viner's interpretation of Smith. It assesses the suggestion of D.D. Raphael that Smith moved away from a theological framework over time and that Viner repudiated his theological reading of Smith. I argue instead that Viner's mature work broadened and strengthened the theological reading. Much of the literature on Smith and Viner wrongly assumes that naturalistic explanation and theological frameworks are mutually exclusive. This may be the dominant twentieth century view, but it was not so in the eighteenth century, as Viner well understood.     

Introduction to “Economic and Financial Governance in the European Union after a decade of Economic and Political Crises.”

ABSTRACT

This paper offers the Introduction to the Special Issue “Economic and Financial Governance in the European Union after a decade of Economic and Political Crises.” We introduce the five papers. We distill three important lessons they offer for EU integration.