The market and exploitation in Marx's economic theory: a reinterpretation

Adopting the view that Marx's notion of 'commodity' has a widerreach than is usually supposed, and that it is this notion,rather than a 'labour theory of value' that is the cornerstoneof his economic theory, this paper shows that Marx's accountof capitalist exploitation is one that accords equal priorityto the production and market domains. Central to this demonstrationis an unorthodox explanation as to why Marx posits two alternativerules of prices in Capital.     

The specificity of manufacturing in Marx's economic thought

Abstract

This article examines Marx's approach to manufacturing and the extent to which manufacturing could be considered to have a special place in Marx's economic thought, especially in relation to accumulation and growth. The important ‘progressive’ features of manufacturing that can be found in Marx's writings and which are discussed here include: division of labour; socialisation of labour; mechanisation; increasing returns to scale; learning-by-doing; technological advancement; and overall, superior potential for cumulative productivity increases. These insights anticipate some of the thinking around the specificity of manufacturing found in twentieth-century structuralist development economics and some heterodox schools of thought such as Kaldorian approaches. This article suggests an interpretation of Marx as having a two-dimensional conceptualisation of activity specificity, with not only sectoral but also ‘technological–organisational’ dimensions, where these two dimensions are not fully independent of each other.     

The physiocrats' concept of labour: A difficulty in Marx's interpretation

Abstract

This article explains the difference between the concept of labour developed by the Physiocrats and Marx. We show that Marx's interpretation based on Turgot is questionable. Whereas Marx bases his ideas on a Lockian definition of labour which puts labour at the origin of value, Quesnay and his disciples develop a mechanistic definition of labour established on Neo-Cartesian foundations. This particular concept of labour then combines with a bio-physical definition of production. The theory of the net product is therefore re-interpreted.     

New general theory of economic development: Innovative growth and distribution

Economic development, which refers to the process of progressive transformation of an economy, is a multifaceted term without a universal definition. This article presents the constitutive elements of economic development: growth, distribution, and innovation. Economic development has been ubiquitous with the economic progress of “developing” countries, but the changing economic circumstances of “developed” countries, such as stagnant growth, regional economic disparity within developed countries, and deepening income gaps among citizens of developed countries, have made this term also relevant to address the economic problems of developed countries. The mechanisms of economic development, with respect to both developed and developing countries, are elusive, and the existing theories have not been able to explain these mechanisms of economic development adequately. This article reviews the existing theories and presents a new theoretical framework to explain the process of economic development.     

Marx's value forms and Hayek's rules: a reinterpretation in the light of the dichotomy between physis and nomos

This paper argues that both Marx and Hayek objected to the dichotomybetween physis and nomos, and offered concepts which integrate,or mediate between, the two. Marx's value forms and Hayek'srules aim to grasp something neither purely natural nor purelyartificial or social, but ‘socially natural’. Valueforms and rules are natural in the sense that they pre-existagents and are taken by agents as given. On the other hand,forms and rules are social in that production relations or spontaneousorder are reproduced as the unintended consequences of agents'using forms or following rules. Thus value forms and rules standas links between agents and production relations or spontaneousorder.     

中国经济增长驱动因素识别研究——基于马克思扩大再生产理论的视阈

本文在马克思扩大再生产理论的基础上,放宽了马克思关于所有可能影响经济增长率因素的数据假定,从一般意义上分别对两部类划分和四部类划分条件下经济增长的内在规定进行了模型推演。结果表明,经济增长率与第Ⅰ部类单位预付资本上所包含的追加资本以及第Ⅰ部类总产品价值占全社会总产品价值的比例呈正相关关系,与第Ⅰ部类资本家消费的绝对量和工人消费的绝对量的比值呈负相关关系。此外,不同经济发展阶段和不同经济周期阶段所对应的决定经济增速的三个方面的因素也各不相同,并且一个国家的长期经济增速存在先升后降的一般规律。而中国的经济增长事实与从马克思扩大再生产理论中得出的结论基本吻合。当前我国正处于由工业化中期向工业化后期转变的过渡阶段,随着第Ⅰ部类投资份额逐渐趋于下降,消费将成为未来拉动经济增长的关键引擎。     

The new views on demographic transition: a reassessment of Malthus's and Marx's approach to population

The purpose of this paper is to examine the divergence of views of Marx and Malthus regarding the family and the labour market. The paper analyses the divergences between them, as well as their common features. The main divergence is the way in which the two see the interaction between man and nature. We show that their divergence of views, and the specific difference in perception of the two thinkers regarding the place of children in the family over time, is related to the alternate ways of modelling demographic transition today. We analyse the debate between these two lines of reasoning by means of a formal model that differentiate between the two views.     

Devaluation and Marx's Law of the tendential fall in the rate of profit

Marx's law of the tendential fall in the rate of profit predicts that the rate of profit will decline over the long term as the forces of production develop, and move cyclically in a way that explains crises and economic recoveries. This interpretation is substantiated with textual evidence, and with a method for measuring the dynamic of devaluation and revaluation which Marx uses to explain the profit rate cycle. This method is shown to be consistent with temporalism, meaning it avoids the transformation problem created by dual system interpretations, and the problem of the Okishio Theorem created by simultaneist interpretations. The article also includes a temporalist way to estimate the Monetary Expression of Labour Time, and empirical results for the effect of devaluation on the stock of fixed assets in the United States since 1930.     

Schumpeter's theory of economic evolution: a Darwinian interpretation

A general Darwinian framework is employed to arrive at an interpretation of Schumpeter's work that brings out clearly its specific evolutionary aspects. Schumpeter's theory of economic evolution is seen to be still highly relevant to evolutionary economics, because it sheds light on some fundamental issues: the relationship between evolutionary theory and equilibrium analysis, the usefulness of Darwinian theory for economics, and the precise nature of the evolutionary forces at work in economic systems.     

On economic applications of the genetic algorithm: a model of the cobweb type

This paper explores the idea of using artificial adaptive agents in economic theory. In particular, we use Genetic Algorithms (GAs) to model the learning behavior of a population of adaptive and boundedly rational agents interacting in an economic system. We analyze the behavior of a GA in two versions of a model of the cobweb-type, one in which firms make only quantity choices, and the other one in which firms first decide to exit or to stay in the market, and subsequently decide how much to produce. We present simulations with different coding schemes and interpret the rather surprising differences between the results for different setups by employing the mathematical theory for GAs with state-dependent fitness functions. In particular, we explain the relationship between coding and convergence properties of GAs.     

Notes and comments. A re(in)statement of the labour theory of value: a comment

The aim of this paper is to show that the main conclusions inMohun's (1994) paper rest on an implicit assumption: the compositionof net output has to remain constant. When this is removed,some paradoxical results are obtained.     

Entrepreneurship and economic development in China: evidence from a time-varying parameters stochastic volatility vector autoregressive model

This paper investigates the impact of entrepreneurship on economic development in China for the period 1999–2013 using a time-varying parameters stochastic volatility vector autoregressive model. Our results suggest a positive relation between entrepreneurship and subsequent growth of industrial output and employment. Furthermore, the positive effect of entrepreneurship shock peaks in a lag of 5 quarters on industrial output and in a lag of 10 quarters in employment.     

An interdisciplinary model of soybean yield in the Amazon Basin: The climatic, edaphic, and economic determinants

Soybean production is one of the main economic forces driving the expansion of the agricultural frontier in the Brazilian Amazon. To assess the potential for expansion we estimate a model of soybean yield that integrates the major climatic, edaphic, and economic determinants in the Amazon Basin. Yield is modeled as a function of yield as simulated by a crop physiology model that captures the effects of climate and physical attributes on the development of soybean plant; fertilizer applications; and economic/spatial parameters such as credit, transports costs and latitude. Current values of these determinants indicate that roughly 20% of Amazon Region or ∼ 1,000,000 km² (excluding protected areas) can generate yields greater than 2000 kg/ha. Soybean production may be possible over a wider area of Amazon, but realizing this potential requires improvements in economic determinants such as the transportation infrastructure.     

Multigeneration diffusion model for economic assessment of new technology

In the era of 21st century, development of emerging information technology is the essence of the advancement. This kind of new technology, however, often requires a great deal of amount of initial investment for both procedures of R&D and commercialization. As cost invested in developing the specified technology is increasing, investors are paying more attention to cost to benefit analysis (CBA). One of the basic elements of CBA for new technological development is the diffusion pattern of demand of such technology. Typically, it would be hard to presume the diffusion pattern of demand when the new product or the technology is under development. In this case, a simulation study is necessary. Many studies of technology evaluation have adopted a single generation model to simulate the diffusion pattern of demand. This approach, however, considers the diffusion of the new technology itself, not taking into account newer generation, which can replace the one just invented. In the real market situation, one must consider the competition and substitution phenomena between old and new technologies. In this paper, we show how multigeneration technology diffusion model can be applied for more accurate CBA for information technology. Additionally, Monte Carlo simulation is performed to find influential factors on the CBA of a cybernetic building system (CBS).     

Equilibrium number of firms and economic welfare in a spatial price discrimination model

We examine welfare implications of the equilibrium number of entering firms in a spatial price discrimination model. In contrast to Salop [Salop, S., 1979. Monopolistic competition with outside goods. Bell Journal of Economics 10, 141–156.], the equilibrium number of firms can be either excessive or insufficient from the normative viewpoint.     

Hegel's theory of economic nationalism: political economy in the Philosophy of Right

The author explores Hegel's theory of economic nationalism in the Philosophy of Right. In that work, Hegel incorporates economics within a systematic theory of the nation-state. Hegel argues that both capitalism and nationalism are the products of the state, which emancipates human capacities by founding and securing individual rights. Capitalism, however, is an inherently self contradictory social phenomenon to which Hegel responds in a sophisticated manner, one eschewing those economic ideologies which subsequently dominated modern economic thought. Moreover, his response differs fundamentally from other supposed defenders of economic nationalism. Unlike the rationalist Fichte, that other great German defender of a national economics, Hegel paves the way to a scientific understanding of the relationship between the modern economy and the nation-state, in other words, a theory of economic nationalism.     

The core ideology of Ecological Marxism：Marx is the pioneer of internal factors theory of ecological environment

This paper from the unified visual angle of philosophy and economics has observed Marx＇s theory of ecological economics, clarified the misunderstanding on Marx＇s theory of nature and ecological environmental thought at home and abroad for a long time, studied systematically and deeply the Marx＇s thought that natural and ecological environment is external condition and internal elements of human social economic growth, confirmed firstly Marx is the forerunner who established the theory of internal cause of natural ecological environment. It is of far-reaching academic and practical significance.     

Rousseau's notion of envy: A comparison with modern economic theory

Abstract

The concept of envy is present both in Rousseau's economic philosophy and in modern economic theory. This paper compares these different uses of the concept and studies the relevance of the definition of envy adopted on each side, taking into account what is at stake when a notion of envy is introduced. It will be shown that Rousseau's envy cannot be expressed by modern conceptions of envy. Nevertheless, it enlightens the debate between the two competing notions of envy present in modern economic theory, revealing that the existence of envy questions the notion of self-interest.     

Toward a non-linear theory of economic fluctuations: Allais's contribution to endogenous business cycle theory in the 1950s

Abstract

In this framework, the existence of a limit cycle is mathematically proved and its existence confirmed by empirical evidence. The mathematical tools are similar to Keynesian pioneering non-linear macrodynamic advances but the theoretical framework is obviously totally distinct. In particular, for Allais, the origin of endogenous cycles is monetary, and explained by the interplay between two key elements: the agents that hold the desired money balances and the banking system that can create money.     

A health economic lifetime treatment pathway model for low back pain in Sweden

Aims: To develop a health economic model to evaluate the long-term costs and outcomes over the healthcare treatment pathway for patients with low back pain (LBP).

Materials and methods: A health economic model, consisting of a decision tree structure with a Markov microsimulation model at the end of each branch, was created. Patients were followed from first observed clinical presentation with LBP until the age of 100 years or death. The underlying data to populate the model were based on Swedish national and regional registry data on healthcare resource use and sickness insurance in patients presenting with LBP in the Swedish region Västra Götaland during 2008–2012. Costs (outpatient healthcare visits, inpatient bed days, pharmaceuticals, productivity loss), EUR 2016, and quality-of-life based on EQ-5D data from the registries and published estimates were summarized over the lifetime of the patients with 3% annual discount. A lost quality-adjusted life year (QALY) was valued at €70,000.

Results: Mean lifetime total cost was estimated at €47,452/patient, of which indirect costs were 57%. Total lifetime economic burden for all patients coming to clinical presentation in Sweden per year was €8.8bn. The average LBP patient was estimated to face a loss of 2.7 QALYs over their lifetime compared with the general population. For all patients in Sweden coming to clinical presentation in 1 year this gives 505,407 QALYs lost, valued at €35.3bn. Adding the economic burden, the total societal burden amounts to €44.1bn.

Conclusion: This pathway model shows that most patients with LBP receive conservative care, and a minority consume high-cost healthcare interventions like surgery. The model could be used to see broad economic effects of different patterns of healthcare provision in sub-groups with LBP and to estimate where it is possible to influence these pathways to increase utility for patients and for society.