C. E. Ayres's Reliance on T. H. Huxley: Did Darwin's Bulldog Bite?

In David Seckler's Thorstein Veblen and the Institutionalists, the proposition is advanced that “Ayres out-Veblens Veblen and out Deweys Dewey”. This commonly held view of the intellectual orientation of the prominent American institutional economist, Clarence Edwin Ayres, places him as an intellectual descendent of philosopher John Dewey's pragmatism, and economist Thorstein B, Veblen's institutionalist economics. Certainly such an outlook is not incorrect, but it is also not adequate if one is to achieve an understanding of Ayres. A careful check of the indexes of Ayres's major works shows that his references preponderantly go not to Dewey and to Veblen, but to Adam Smith and Charles Darwin, Moreover, it is to the latter that Ayres turned in his effort to overturn the former. However, Ayres in interpreting Darwin relied not upon Dewey and Veblen, but rather upon Thomas Henry Huxley, the British physician turned scientist, who because of his outspoken advocacy of Darwin's evolutionary biology became known as “Darwin's bulldog.”     

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.     

Clarence E. Ayres and the Legacy of German Idealism

Abstract . Based on the Clarence E. Ayres (1891-1972) papers at the University of Texas, this study traces the continuity among thinkers such as Kant, Hegel, Veblen, Dewey, and Ayres; the latter was a leading institutional economist following Veblen's death. Publicly acknowledging his intellectual debt to Veblen and Dewey, Ayres drew from these men some idealistic assumptions as well as the historicism that is implicit in his technological determinism or instrumental theory of knowledge. Thorstein Veblen and John Dewey owed a great deal to the philosophical tradition of idealism, regardless of the devotion to naturalism in their systems. The origins of Ayres's technological theory of value are found in Veblen and Dewey writings and back of them the legacy of German idealism. The vital link was a mutual acceptance that freedom was expressed in a cultural and historical form, realized in human activity. It was a process.     

On the Validity of Veblen's Criticisms of Economic Orthodoxy: An Analysis of His Positions in the Light of Current Conditions and Economic Thought

A bstract . Thorstein Vehlen has received his share of brickbats and bouquets over the years. Rather than add to them, this study examines the validity of some of his criticisms of economic orthodoxy in the light of contemporary economic conditions and currents of economic thought Attempt is made to understand the ways in which orthodox theorists have viewed this heterodox thinker and to delineate the influence Veblen has exerted on us in modifying our approach to economic analysis.     

Radical Individualism vs. Institutionalism, I The Division of Institutionalists into 'Humanists' and 'Behaviorists'

A bstract . David Seckler has filled an important gap in the methodological literature of economics by providing a "radical individualist" critique of American institutionalism (1). Seckler argues that institutionalists have been unable to develop a coherent methodology because of their ambivalence on the issue of " free will versus determinism." Thorstein Veblen, he says, entertained both "humanistic" and "behavioristic" hypotheses in his explanations of human behavior and, consequently, descended into obscurantism. The institutionalist literature in general reflects these contradictory methodological tendencies; for example, John R. Commons was a "humanist" , whereas Clarence Ayres was a "behaviorist." Seckler's critique is not, however, persuasive. He fails to recognize the difficulties inherent in the philosophical dualisms posited by "radical individualism," and he employs them credulously in his critique of institutionalism. Equally damaging to his argument is his failure to give adequate consideration to the meaning and significance of the "institutional dichotomy" in institutional analysis.     

The Economic Sociology of Alfred Marshall:An Overview

A bstract The aim of the paper is to present the economic sociology of Alfred Marshall (1842-1924). Three topics are discussed in the paper: Marshall's ideas of how preferences are generated, the theory of action, and finally the introduction of a fourth factor of production, organization. Throughout the paper Marshall's broad perspective is demonstrated. It is argued that Marshall's approach encourages a closer connection between sociologists interested in economic phenomena and economists. This conclusion is strengthened because of the resemblance of Marshall's analysis to those offered by Max Weber and Thorstein Veblen.     

Individualism and Institutionalism Revisited: A Response to Professor Bush

A bstract . In the book which provoked individualist/institutionalist controversy in several journals, including this one, the author emphasized aspects of "muddled" thinking in the work of Clarence E. Ayres which he believes has brought forth neo-institutionalist contributions that are a "hodge-podge." Neo-institutionalism, he is convinced, is a form of historicism in Karl R. Popper's terms. Lord Robbins is quoted to prove that individualists do not necessarily espouse laissez-faire capitalism and extreme income inequality. F. A. Hayek is a conservative but some individualists are socialists. The distinction on which individualists base interpersonal comparisons of utility is not between normative and positive but between science and philosophy; Thorstein Veblen never attempted to build a bridge between science and value. The real issue between individualists and neo-institutionalists is individualism vs. collectivism.     

'Radical Individualism' vs. Institutionalism, II: Philosophical Dualisms as Apologetic Constructs Based on Obsolete Psychological Preconceptions

A bstract . David Seckler , in his study of Veblen and the institutionalists , adopted a viewpoint which is a philosophical orientation least likely to enable him to know what Veblen and the institutionalists "really mean." He accepted a pantheon of philosophical dualisms— e.g., "Humanism" vs. "behaviorism,""normative" vs. "positive" — which Veblen and his followers reject, and particularly Mises's "methodological dualism" which would make science the study of ideal type individual actions instead of an experimental effort to understand the social processes of "cumulative causation" as they are found in the real world. Seckler's reliance on these obsolete psychological preconceptions of "radical individualism" causes him to neglect the powerful normative elements of Veblen's work. Yet it is precisely Veblen's normative methodology that gives rise to the "institutional dichotomy" in contemporary institutionalist thought.     

Veblen's Theory of Institutional Change: An Explanation of the Deregulation of Japanese Financial Markets

A bstract In his 1915 essay "The Opportunity of Japan," Thorstein Veblen theorized that traditionai Japanese institutions would undergo evolutionary change as Japan exploited borrowed industrial technology and became integrated into the global business enterprise system. This article explains the recent liberalization of Japanese financial markets which followed Japan's rise to economic prominence within the context of Veblen's theory of institutional development of the enterprise system. The Japanese process of financial deregulation is reviewed, Veblen's predictions Japan are presented and an explanation provided for the liberalization of Japanese financial markets .     

On the Use and Abuse of Thorstein Veblen in Modern American Sociology, I: David Riesman's Reductionist Interpretation and Talcott Parsons' Pluralist Critique

A bstract . The analyses and applications of Thorstein Vehlen's social theory by David Riesman and Talcott Parsons are found to be deficient. Riesman's study of Veblen lacks viability because the reductionist methodology he uses psychologizes and sociologizes Veblen rather than examines the theoretical import of his work. Parsons is wrong in denying the originality of Veblen's work and in treating him as an eccentric Utopian. Thus the paradigmatic and ideological bias of both Riesman and Parsons preclude a proper understanding and use of such Veblenian concepts as status emulation and conflict.     

John A. Hobson: Economic Heretic

Abstract . John A. Hobson was a self-styled economic heretic who developed and original and remarkably comprehensive system of economic and social thought. This system is based on certain distinctively Hobsonian concepts and theories. Hobson's economic heresies were based on his theory of distribution in which he rejected orthodox marginal productivity theory and developed a theory of economic surplus the distribution of which is determined by economic power. This underlay his theory of under-consumption which in turn was used to explain and analyze economic and social issues such as unemployment, the business cycle, the labor movement, imperialism and taxation. Hobson was also critical of the whole methodology of economic science on the grounds that it abstracted from human welfare in its widest sense. He argued that proper values should be introduced into the study of economic activity so that it could assist in the attainment of the best conditions of human life, both social and individual.     

New light on Veblen's Work and Influence

A bstract . An important recent publication of writings by and about Thorstein Veblen , entitled Essays, Reviews, and Reports; Previously Uncollected Writings (1973), sheds new light on the social critic's work and influence. It was edited by Joseph Dorfman and includes a book by him entitled New Light on Veblen. Veblen's reviews are examined and evaluated. Dorfman's collection of material is surveyed, and it is seen that Veblen influenced an extremely wide range of important people besides the economists known as "institutionalists." The book will be an essential source for anyone who tries to assess the impact of Veblen on our culture , and it is also a monument to Dorfman's dedication to its subject.     

John Hobson, Thorstein Veblen and the Phenomenon of Imperialism

Abstract . Although Hobson (1858–1940) and Veblen (1857–1929) both wrote extensively on imperialism, a systematic comparison of their views has yet to be undertaken. This is corrected with reference to three issues: their respective condemnation and explanation of, and remedy for, imperialism. The contexts in which they wrote is outlined and it is shown that on the basis of a shared definition of imperialism: (1) they both condemned imperialism on economic and political grounds, although Veblen's hostility was arguably the greater; (2) they both advanced dualistic explanations of imperialism, but whereas Hobson developed more fully and emphasized economic rather than ideological forces, the reverse was the case for Veblen; and (3) they agreed that modern imperialism could be remedied by the establishment of an international system of law and order. Veblen, however, was far less confident that this would solve totally the problem of imperialism and hence argued for the abolition of both capitalism and patriotism. The convergencies and divergencies in their analyses of imperialism may reflect the British liberal and American radical traditions that the politically involved Hobson and the iconoclast Veblen, respectively, operated within. There is a lesson for our time in their views.     

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.     

关于经济责任审计的几点思考

党政领导干部经济责任审计,在促使领导干部提高管理水平和树立遵纪守法意识、维护财经法纪、推动廉政建设等方面发挥了积极的作用。当前,各级审计机关有待解决的重要问题就是如何进一步解放思想、更新观念以及提升工作成效,从而充分发挥其在干部监督管理和经济社会发展中的作用。笔者结合审计工作实践,谈几点关于经济责任审计的认识和思考。     

Interpreting Institutions' in Veblen's Evolutionary Theory

A bstract . The form and basic properties of Thorstein Veblen's evolutionary theory are analyzed as an interpretative strategy for understanding the social institutions of modern industrial society. By formulating hypothetical historical reconstructions based on his principles of social action and institutional transformation , Veblen creates an heuristic construction that serves as a formula for observation and analysis of what he finds to be the essential meaning of existing behavior. This gives to his work a critical style, but also a depth of analysis that has a degree of predictive validity.     

Culture in Neoinstitutional Economics: An Integration of Myrdal and Galbraith into the Veblen-Ayres Matrix

A bstract . Neoinstitutional economics , exemplified in this instance by the contributions of Gunnaar Myrdal and John K. Galbraith , exhibits a basic proclivity toward fragmentation. It is argued that a further advance of the Veblen-Ayres general theory of economic development will serve as the foundation to reverse such centrifugal tendencies and provide a basis for integration and synthesis. The key conceptual framework for analysis and theory resides in culture and its evolution. The core of culture is transformed through the processes of economic development fed by the dynamics of technological change. In a modified Veblen- Ayres matrix, social institutions are assumed to be integral to the organic whole of technology. Given further modifications of mainstream institutional economics contained in the "dichotomy of useful knowledge" and the "wheel of economic development," it is suggested that the cultural approaches of Myrdal and Galbraith might then be integrated into the culture-analysis of economic evolution inherent in mainstream institutional economics     

The Impact of Japanese Economic Cooperation on Asian Economic Development

The main objective of this paper is to overview the developments of Japan's ODA and assess, in a quantitative manner, their economic impacts on Asian countries. The benefits of two alternative measures—one from capital formation by Japan's ODA loans and the other from import liberalization in the Japanese market—are compared. Those economy-wide impacts of aid and trade on six Asian countries—China, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam—are estimated by a CGE model of global trade, incorporating a certain mechanism of dynamic capital formation. Japan's ODA loans are effective for economic growth in the countries. Real GDP gains range from 0.1 to 1.6% annually. Trade liberalization is efficient to improve economic welfare. Utility gains range from 0.2 to 1.9%, which exceed those on account of Japan's ODA. Variations in those economic impacts are much more significantly observed when examined by sector.     

Understanding Economic Man

A bstract .   The deficiencies of economic science are examined against its historical development: the utilitarian concentration upon individual choice conflates preferences and values and the hedonistic calculus is inoperable in the presence of incommensurability. In restricting explanations of behavioral patterns to changes in prices, incomes, and other "economic" variables, neoclassical analysis was destined to draw implausible conclusions. While the uniqueness of man rests in a highly developed self-consciousness, his rationality need not imply conscious reason. Decisions and actions that are made in response to inputs from all of the sensory modalities are led by conventions and traditions that give structure to every response. Biological, psychological, social, and ethical constraints so limit purposeful action, that a complete economist ( pace G. L. S. Shackle) is one who has mastered mathematics, philosophy, psychology, anthropology, history, geography, and political science.     

Seeking Institutionalist Signposts in The Work of Henry George

A bstract . When one seeks institutionalist signposts in works published before the time of Thorstein Veblen, Henry George is often overlooked. This oversight on the part of institutionalists is understandable given George's emphasis on " natural laws," individualism, religious teachings and his defense of the market system. Orthodox economists have also ignored these signposts as a result of their rejection of institutionalism. They have rejected George's work in general because of his attack on the economics profession and his challenge to the status quo. While George is usually not classified an institutionalist, there are, however, definite institutionalist signposts to be found in his work. George recognized the ceremonial and pecuniary nature of the economics profession and analyzed the institutional foundation of property. Furthermore, George was a social reformer and understood the discretionary and normative nature of the economy.