Hostile Territory: High-Tension Religion and the Jewish Peddler

A bstract .   Scholars have long explored the role that reputation plays in the facilitation of exchange. Some attention has also been paid to the way in which religions serve as a proxy for reputation or as a mechanism for enforcement of exchange agreements. These reputation and enforcement mechanisms enhance the ability of the members of certain religious groups to perform economic roles where such secular-based mechanisms fail or are absent. In this article, I explore the ways in which hostility toward members of high-tension religions makes them uniquely well suited to the economic role of middlemen. As illustration, I explore the particular case of the 19^th-century German Jewish peddler in the young United States.     

Social Anthropology in Economic Literature at the End of the 19th Century: Eugenic and Racial Explanations of Inequality

A bstract .   At the end of the 19^th century, Georges Vacher de Lapouge and Otto Ammon founded a school of thought denominated "social anthropology" or "anthropo-sociology," aimed at placing racism on a scientific basis. Their intent was to create a new discipline into which the themes of biological heredity, natural selection, social stratification, and political organization were to converge. This paper intends to demonstrate the wide resonance that anthroposociology had in the economic literature, analyzing the thought of authors such as Carlos C. Closson, Vilfredo Pareto, and Thorstein Veblen. A particular focus will be on the racial and eugenic arguments used as explanation of social and economic inequality.     

Max Weber and Economic Sociology

A bstract .   Peukert (2004 ) argues that Weber's work is only of limited relevance to present-day economic sociology because it incorporates "a rather narrow and static understanding of rationality and the economy." This article disputes that claim. It is argued that Weber differentiates between economic and sociological perspectives on the economy through incorporating uncertainty into the latter. Hence Weber's economic sociology develops the distinction between "before" and "after" perspectives on action, incorporates expectations, and defines capital with reference to time and uncertainty. Furthermore, Weber's analysis of formal rationality presupposes uncertainty. Weber's economic sociology thus assumes a dynamic economy, where uncertainty is prevalent, and formal rationality can reduce uncertainty. Peukert's analysis thus (a) fails to consider Weber's differentiation between economic and sociological investigations, and (b) does not engage with Weber's knowledge of Austrian economics.     

Protecting Family and Race

A bstract    American economics came of age during the Progressive Era, a time when biological approaches to economic reform were at their high-water mark. Reform-minded economists argued that the labor force should be rid of unfit workers—whom they labeled "unemployables,""parasites," and the "industrial residuum"—so as to uplift superior, deserving workers. Women were also frequently classified as unemployable. Leading progressives, including women at the forefront of labor reform, justified exclusionary labor legislation for women on grounds that it would (1) protect the biologically weaker sex from the hazards of market work; (2) protect working women from the temptation of prostitution; (3) protect male heads of household from the economic competition of women; and (4) ensure that women could better carry out their eugenic duties as "mothers of the race." What united these heterogeneous rationales was the reformers' aim of discouraging women's labor-force participation.     

The Global System of Finance

A bstract .   In the last decades, revolutionary changes in financial markets, instruments, and institutions have stimulated empirical and theoretical investigations into the interaction of the financial and the "real" side of economic systems. While a considerable body of empirical investigations seems to provide evidence of positive correlations between stock market development and economic growth, there is no consensus in other social sciences as to whether there are two-way linkages, and if so, how to conceive a possible mechanism of interaction. Particularly, the hypergrowth and ubiquity of financial markets has triggered controversial debates on how to understand today's economic landscape. With the objective of clarifying the relationship between finance and economy, this article restructures the present debate through the lenses of Talcott Parsons's and Niklas Luhmann's theories of social systems. Basic system-theoretical ideas on social aspects of finance and economy as well as on uncertainty and risk hint at new insights into the global system of finance that might go far beyond explanatory models of causality.     

A Note on Walter Block's Defending the Undefendable

A bstract .   Walter Block's amusing and popular Defending the Undefendable offers an intentionally shocking collection of short chapters, each praising a different "rogue" of modern society—including the pimp, slumlord, and corrupt cop—from a libertarian viewpoint. However, Block's defense of the "heroic" counterfeiter is based on faulty economic analysis and is hence completely unwarranted.     

Nonrenewable Exhaustible Resources and Property Taxation

A bstract .   In this paper, Professor Harriss connects the historic debate about using up nonrenewable resources and its impacts on future generations with the need to help finance government in less disruptive ways. He explains the Georgist program of taxing "economic rents" either directly by a rent tax or indirectly by a severance tax.     

When Did Equality Become a Noneconomic Objective?

A bstract .   This brief survey begins with a suggested procedure for determining whether a given economist viewed a particular goal as an economic or noneconomic objective. Roughly speaking, the approach rests on whether that economist attempted a serious analysis of the tradeoffs between the goal in question and some measure of value. In this view, noneconomic objectives, for any school, include all those objectives that, while recognized as potentially legitimate, are not analyzed in terms of commensurable value measures. Three points to notice about the definition: (1) For any economist, economic objectives should be distinguished from a class of intermediate goods valued largely for their predicted positive impact on production; (2) Some objectives may be altogether dismissed by a school, either as beyond the expertise of economic analysis or as downright harmful; (3) Simply acknowledging the existence of a "cost" to achieving a goal leaves that goal as noneconomic since no attempt at valuation has been made.
The paper goes on to sketch three viewpoints toward income equality—that of the classical school as summarized in the work of J. S. Mill, that of the early neoclassicists as represented by Marshall and Pigou, and that of the "new welfare economics" as developed by Kaldor and Hicks. The classical economists valued the relief of poverty, but explicitly attacked anything but the most basic redistributional efforts because of expected dire effects on production. The early neoclassicists built equality implicitly into a utilitarian social welfare function. The "new welfare economics" doubted economists' ability to assess the value of equality, although perhaps not their ability to measure its opportunity cost. Thus the basic argument: both the classicists and the early neoclassicists saw equality as an economic objective, while the new welfare economics was largely built on denying this status to equality.     

Indicators, Green Accounting and Environment Statistics— Information Requirements for Sustainable Development

Since the "Earth Summit" in Rio de Janeiro 1992 the term "sustainable development" determines the third and current phase of environmental policy. A precise and commonly accepted definition of sustainable development (s.d.) is still missing. There are, nevertheless, some elements in the philosophy of sustainable development which–even if they are still vague–could be used as guidelines for a framework of "green" accounting and sustainability indicators. Based on theoretical considerations, the German Federal Statistical Office has developed a framework for an Environmental Economic Accounting System. The objective is to add meaningful modules to the traditional System of National Accounts which are designed to quantify the external (environmental) effects of economic activities. The framework could already be realised and published to an extent that is relevant for actual policy making in Germany.     

Schumpeter 1911: Farsighted Visions on Economic Development

This paper presents to the English-speaking reader a sample of material contained only in Schumpeter's first German edition (1911) of Theorie der wirtschaftlichen Entwicklung , material subsequently omitted from later German editions and from the English translation. The newly-translated material, presented here for the first time in English, comprises a substantial part of the second chapter, only available in a completely rewritten version, and fully half of the famous seventh chapter, which has not been previously available at all in English. This material merits attention today because it contains remarkable and farsighted visions on economic theory that may inspire current efforts to devise models of economic and social evolution. In order to better appreciate the original text, we briefly introduce the "background" to Theorie and its revisions, briefly describing the social and intellectual environment of the time. We then discuss how the entrepreneur evolved over the three editions of Theorie (from 1911 to 1934) in view of the shift in Schumpeter's personal and intellectual life and outline the most important implications raised by the first German edition of 1911. Finally, we use Schumpeter's own statements to settle the obstinate confusion on the publication year of Theorie in favour of the year 1911.     

The German model in danger

The German high‐skills/high value‐added economy has long been the Mecca for supporters of the European social model. So long as Model Deutschland was thriving the notion of Social Europe was a plausible political project. But Germany is facing a range of economic problems—the aftershock of reunification, high unemployment and internal and external pressures to reform its stakeholder system of economic organisation. Some of these developments strike at core assumptions of the German model. This article reviews the extent to which the German model is in danger and teases out the implications for the wider European economy.     

Do governments tax agglomeration rents?

Empirical evidence suggests that firms receive rents from locating in economic agglomerations and industry clusters. Using the German local business tax as a testing ground, we empirically investigate whether these agglomeration rents are taxable for local governments. The analysis exploits a rich data source on the population of German plants to construct measures for the communities’ agglomeration characteristics. The findings indicate that economic agglomerations and industry clusters exert a positive impact on the jurisdictional tax rate choice. Further analysis moreover suggests that a municipality’s potential to tax agglomeration rents depends on its firm and industry agglomeration relative to neighboring communities. To account for potential endogeneity problems, our analysis exploits long-lagged population and infrastructure variables as instruments for the agglomeration measures.     

Does the Henry George Theorem Provide a Practical Guide to Optimal City Size?

A bstract .   The spatial distribution of economic activity is determined by a balancing of increasing and decreasing returns to scale activities. The Henry George Theorem states roughly that, if economic activity is efficiently organized over a "large" space, aggregate land rents equal the aggregate losses from the decreasing returns to scale activities. Kanemoto, Ohkawara, and Suzuki have tentatively applied the Henry George Theorem to investigate whether Tokyo has too large a population. This paper has two aims. The first is to explore the Theorem and its generality; the second is to examine whether it provides a promising conceptual foundation for estimating whether particular cities are over- or underpopulated.     

Constructing a World Fit for Marxism: Utopia and Utopistics of Professor Wallerstein

A bstract .   World system theory, founded and developed by Immanuel Wallerstein, continues Marx's original vision of modern economy as a zero-sum game based on exploitation. Ignoring convincing criticism of Marx's economics, Wallerstein broadens spatial confines of the applicability of Marxist economics to include the whole world. Imaginatively combining Marxist and postmodernist frames of reference, Wallerstein constructs a future economic and social system reminiscent of a classical Marxist utopia. This endeavor, which Wallerstein calls "utopistics," provides a logical conclusion to world system theory, as it finalizes a practice of defending Marxian analysis of the past and the present in terms of an imagined future.     

A Socio-Dynamic Understanding of Markets

A bstract    Economic sociology furthers a healthy alternative to price-theory–oriented economics as it sets out to remedy the invisibility of the market within the latter. There is, however, no doubt that such a market-oriented sociology is still in its infancy, given among other issues its inability to shoulder market change. The void thus recognized opens up the potential for a market idea with both social and dynamic properties. There is good reason to believe that such an endeavor would benefit from the constructive blending of economic sociology and Austrian economics. This paper argues that such a "socio-Austrian" connection is in the position to enrich the socioeconomic discourse in general and its market conception in particular.     

Mapping Growth into Economic Development

A bstract .   The study finds that elite political instability (PI)—the incidence of coups d'etat—has negatively influenced the mapping of GDP growth into economic development, measured as the algebraic difference in the United Nations Human Development Index, in Sub-Saharan Africa (SSA) between 1970 and 1985. Taking into account the additional adverse impact of PI on economic development through its deleterious influence on economic growth, the study estimates that PI has exacted a substantial toll in SSA's economic development.     

Co‐determination and strategic integration in German firms

Looking at the economic development and importance of German companies in Europe, one might expect that an important aspect of a good economic performance is a well‐functioning HR system. Although a number of scholars claim this, the empirical evidence seems to point to the opposite. Several comparative studies have found that HRM in German companies is less strategically integrated and proactive than that of comparable firms in other countries. This article argues that the empirical results reported fail to grasp the essence of HRM in German firms. This lacuna is partly due to the co‐determination structure. HRM in large German firms has to be evaluated within the co‐determination structure, with the Betriebsrat (works council) being an important actor. For German firms co‐determination might even be a strategic resource. By examining this issue within such a framework, a more favourable picture of HR integration in German firms emerges.     

The Pelagian Controversy: An Economic Analysis

A bstract .   In recent years economic theory has been used to analyze the introduction of new religious doctrines as innovations that further the objectives of religious organizations and their leaders. The present study analyzes the decision of church authorities in the early fifth century to reject the doctrine advanced by Pelagius in favor of the position taken by Augustine. Accounts of the controversy reveal two self-interested motives for the church hierarchy to reject the Pelagian doctrine: (1) the Pelagian view would have undermined the authority of the church hierarchy; and (2) by making greater demands for moral conduct, it would have raised the "cost" of being a Christian and thereby discouraged growth in church membership, particularly among the Roman upper class.     

From plan to market: financial statements and economic transition in the East German enterprise

This article examines the changing role of financial accounting in the former East Germany as that country underwent the transition from a centrally planned to a market-driven economy. The German government's insistence on a sales model of privatization in preference to some form of mass privatization, combined with legal requirements to make up equity shortfalls in eastern German enterprises, resulted in a highly centralized and interventionist approach to accounting change. The article reviews and analyses the historical, technical, economic and political aspects of this change process.     

Irving Fisher and the Contribution of Improved Longevity to Living Standards

A bstract    It is not widely recognized that conventional measures of national income and output exclude the value of improvements in the health status of the population. The present study discusses the theory of the measurement of national income, proposes a new concept called "health income" that can be used to incorporate improvements in health status, and applies the theory to data for the United States over the 20^th century. It concludes that accounting for improvements in the health status would, over the twentieth century in the United States, make a substantial difference to our measures of economic welfare.