Homo oeconomicus and homo politicus in Ecological Economics

The model of homo oeconomicus has been criticised in Ecological Economics. We discuss this critique and alternative approaches that have been developed in the literature. In contrast to these approaches, which are based on Arrow's concept of the Social Welfare Function, psychology, biology, and general considerations, we propose a concept of homo politicus that is founded in political philosophy. We show that this concept is suitable for normative purposes of Ecological Economics. At the same time, we demonstrate in a case study that the concept has empirical relevance in explaining real political processes.     

Heterogeneity and Time

A bstract .   Although heterogeneity and time are central aspects of economic activity, it was predominantly the Austrian School of economics that emphasized these two aspects. In this paper we argue that the explicit consideration of heterogeneity and time is of increasing importance due to the increasing environmental and resource problems faced by humankind today. It is shown that neo-Austrian capital theory, which revived Austrian ideas employing a formal approach in the 1970s, is not only well suited to address issues of structural change and of accompanying unemployment induced by technical progress but also can be employed for an encompassing ecological-economic analysis demanded by ecological economics. However, complexity, uncertainty, and real ignorance limit the applicability of formal economic analysis. Therefore, we conclude that economic analysis has to be supplemented by considerations of political philosophy.     

“Burden of Debt” in HIPC Countries in the Light of Current Account Statistics

For many years, debt relief has been a prominent theme in public debate. Supporters of debt relief argue that debt service drains the resources of needy countries – resources which could be employed in such important areas as infrastructure, education and medical treatment. The question, however, whether foreign debt does, indeed, lead to a draining of resources is hardly ever addressed.     

Cyber-Security aus ordnungspolitischer Sicht: Verfügungsrechte,Wettbewerb und Nudges

From an economic point of view, the problem of cyber security is not primarily a technological challenge but one based on misaligned incentives. When market participants do not bear the full costs of their negligent behaviour in digital transactions, the market outcome tends to be inefficient. In this article, the authors argue that one of the main reasons for a lack of investment in digital security is the lack of property rights for personal data in the internet. They argue that the right institutional environment can lead to a market for data that would spark a reputational competition for computer security technologies. Effective antitrust law and behaviourally informed policies can lead to further welfare improvements in digital markets.     

Changes in human nutrition and US exports

Changes in US nutrition could increase the availability of grains for world food use. This study examines such changes by means of a programming model which allows an optimal inter-regional allocation of grains while simultaneous shifts are made in consumer diets. The three alternatives examined include use of added US production potential for wheat production and exports, a substitution of 25% soy protein for meat and reducing the animal protein intake by 25%. Sizable increases in food exports could be made under each of the three alternatives. Of course, institutional means would need to be created to facilitate these shifts.     

Inflation and growth

A recent empirical study conducted by Robert Barro and published by the Bank of England finds surprisingly little evidence for harmful effects of inflation on growth, seemingly refuting the many theories purporting the contrary. Have the costs of inflation been exaggerated in the past? Is inflation in fact essentially harmless?     

Chaos theory and social science: A methodological analysis

This article investigates the relevance of chaos theory for social science. The application of chaos models in the analysis of social phenomena is accompanied by some important scientific problems. First, whether observations of social phenomena are generated by nonlinear dynamics cannot be ascertained beyond considerable doubt, especially when these observations contain measurement errors; i.e., there is a problem of external validity. Secondly, and more important, as a theory of irregular cyclical social behaviour is lacking, inductive-statistical theoryformation about such behaviour, which is based on fitting a mathematical model of chaos to observations of social phenomena, is impossible unless additional information is used concerning the context and circumstances wherein the social phenomena occur; i.e., the internal validity of any theoretical explanation that is derived from only a fitted mathematical model (of chaos) cannot be assessed. So, research into the suggestion derived from mathematical chaos theory that irregular cycles may be present in the development of social phenomena over time requires theory-formation about irregular cyclical social behaviour on the basis of established theoretical insights and empirical evidence instead of fitting sophisticated mathematical models of chaos to observations of social phenomena.     

Entrepreneurial Orientation and Corruption

Organizational corruption is a wide-spread negative aspect of economic activity, and a seemingly never-ending series of corruption scandals has been made public around the globe. Although research is performed in a broad variety of disciplines, ranging from psychology to management to law, a fully satisfactory explanation for the causes of organizational corruption has not been found. By looking at organizational factors as potential triggers for corruptive behavior, this study draws upon the concept of entrepreneurial orientation (EO). Diverse studies have shown that EO, as an antecedent to company performance, has a positive effect. Recent EO literature, however, indicates that EO has not only positive but also negative consequences. In this line of reasoning, this study builds upon principal agent theory and makes a first step in exploring the impact of EO on a negative aspect of business behavior, namely organizational corruption. We gathered survey data and publicly available data from 411 firms, inquiring for both acts of corruption from within the top management team over the last 3 years and the level of entrepreneurial orientation within the organization. Results show diverging effects along the individual dimensions of EO; they point to risk orientation as the dark side of EO, as it significantly increases the likelihood of corrupt behavior in companies. In contrast, innovation orientation, to a certain extent, counterbalances by reducing the likelihood of corrupt behavior.     

Models in evolutionary economics and environmental policy: Towards an evolutionary environmental economics

In this paper we review evolutionary economic modelling in relation to environmental policy. We discuss three areas in which evolutionary economic models have a particularly high added value for environmental policy-making: the double externality problem, technological transitions and consumer demand. We explore the possibilities to apply evolutionary economic models in environmental policy assessment, including the opportunities for making policy-making endogenous to environmental innovation. We end with a critical discussion of the challenges that remain.     

The structural effect of cooperatives on price volatility in the European dairy sector

Theoretical models and empirical evidence suggest that high market shares of cooperatives can force investor-oriented firms to pay higher producer prices within a region. In the same vein, cooperatives may force investor-oriented firms to reduce price volatility. We use panel data from 27 European Union member states over the period 2001–2015 to investigate how the market share of cooperatives in a country affects milk price volatility. Our key finding is that a higher market share of cooperatives reduces price volatility at the national level. Volatility is influenced by a number of other variables, such as fluctuation in raw milk production, oil price volatility spillover and the number of dairy processors. Policymakers should consider that the promotion of cooperatives might positively affect price stability in the dairy sector.