Until the late 1970s, it was difficult publishing economic methodology research in any mainstream economics journal. Today there are at least two journals devoted to articles about economic methodology. However, it is important to keep in mind that there are two types of economic methodology. There is what has been called small-m methodology which is about the assumptions made by economic model builders, and there is big-M methodology which is about matters of interest to philosophers but not to economists. (...) The recent history of economic methodology literature and conferences has displayed the hijacking of economic methodology research by philosophers with the result that those of us who wish to do research on small-m methodology are back where we were in the 1960s and 1970s. (shrink)

The importance of socio-economic impacts from the introduction and use of genetically modified crops is reflected in increasing efforts to include them in regulatory frameworks. Aiming to identify and understand the present knowledge on SEI of GM crops, we here report the findings from an extensive study of the published international scientific peer-reviewed literature. After applying specified selection criteria, a total of 410 articles are analysed. The main findings include: limited empirical research on SEI of GM crops in the (...) scientific literature; the main focus of the majority of the published research is on a restricted set of monetary economic parameters; proportionally, there are very few empirical studies on social and non-monetary economic aspects; most of the research reports only short-term findings; the variable local contexts and conditions are generally ignored in research methodology and analysis; conventional agriculture is the commonly used comparator, with minimal consideration of other substantially different agricultural systems; and there is the overall tendency to frame the research upon not validated theoretical assumptions, and to over-extrapolate small-scale and short-term specific results to generalized conclusions. These findings point to a lack of empirical and comprehensive research on SEI of GM crops for possible use in decision-making. Broader questions and improved methodologies, assisted by more rigorous peer-review, will be required to overcome current research shortcomings. (shrink)

In recent years, money, finance, and the economy have emerged as central topics in literary studies. The Cambridge Companion to Literature and Economics explains the innovative critical methods that scholars have developed to explore the economic concerns of texts ranging from the medieval period to the present. Across seventeen chapters by field-leading experts, the book highlights how, throughout literary history, economic matters have intersected with crucial topics including race, gender, sexuality, nation, empire, and the environment. It also explores (...) how researchers in other disciplines are turning to literature and literary theory for insights into economic questions. Combining thorough historical coverage with attention to emerging issues and approaches, this Companion will appeal to literary scholars and to historians and social scientists interested in the literary and cultural dimensions of economics. (shrink)

The Journal of Economic Literature codes classification system (JEL) published by the American Economic Association (AEA) is the de facto standard classification system for research literature in economics. The JEL classification system is used to classify articles, dissertations, books, book reviews, and working papers in EconLit, a database maintained by the AEA. Over time, it has evolved and extended to a system with over 850 subclasses. This paper reviews the history and development of the JEL classification system, (...) describes the current version, and provides a selective overview of its uses and applications in research. The JEL codes classification system has been adopted by several publishers, and their instructions are reviewed. There are interesting avenues for future research as the JEL classification system has been surprisingly little used in existing bibliometric and scientometric research as well as in library classification systems. (shrink)

Economics for Alfred Marshall, the last of the classical economists, is concerned with activities in the ordinary business of life. In that milieu, we find conflicts and chaotic behavior among people, firms, and countries, which make them conduct their affairs in different, and sometimes, ironic ways. Economic Ironies Throughout History explores, explains, predicts, and harnesses these ironies for economists and scholars alike. Szenberg and Ramrattan distill their core economic ironies from a vast history of philosophy and literature that (...) applies to economic thought. They include philosophical, psychological, literary and linguistic discussions and the personalities behind those ideas such as Socrates, Kierkegaard, Hume, Freud, Jung, Saussure, and Barthes. This book is ideal for economists as well as scholars across the business, social science, and humanities fields. (shrink)

Attempts to reach an understanding of how to live a Christian life in the contemporary context have never been more necessary. This is the aim of the International Symposium: Beyond Secular Faith, an annual conference held in Granada, Spain. This volume represents the fruits of over seven years of scholarship. The title Beyond Secular Faith suggests we are interested in (re)discovering and reflectively elaborating ways to overcome the limits imposed by the dominant contemporary culture. We are convinced that only a (...) faith liberated from the conceptual restrictions and reductions (put forward by secular philosophy and theology) and centered radically on Christ can flourish in the dimension that is proper to faith; that is, in all spheres of human life. Featuring contributions from internationally recognized philosophers and theologians such as Tracey Rowland, Jarosław Jagiello, Rocco Buttiglione, Alison Milbank, Massimo Borghesi, John Milbank, and others, we will explore a diversity of questions from this common perspective: the light of revelation illuminates how Christians should live in the modern world, leading to a new beginning. (shrink)

Migration is a key driver of economic and societal transformation, touching people’s lives worldwide. Understanding why people decide to migrate is crucial for fostering inclusive and diverse societies and informing effective policy-making. This paper focuses on economic migrants, a particular group of migrants whose study has primarily been confined to narrow areas of interest and characterized by inconsistent terminology, limiting cross-study comparability and the synthesis of findings. Viewed through the interdisciplinary lens and derived from theoretical, empirical, and analytical research outcomes, (...) the present paper concludes that economic migrants’ movements are influenced by the socio-demographic factors of ‘age’ and ‘education’ and are motivated by both the economic motives of ‘expected income’ and ‘employment’ and the economic-related motives of ‘corruption’, ‘amenities’, and ‘happiness’. These motives also reveal a typical profile of economic migrants: working-age, highly educated, predominantly male individuals who seek opportunities in developed countries to achieve a fulfilling life. The presented findings contribute to a better understanding of the dynamic decision-making process of economic migrants and offer valuable insights for policymakers to design more nuanced and targeted strategies for integrating migrants into societies. (shrink)

Mapping Mainstream Economics: Genealogical Foundations of Alternativity seeks to establish a definition of the mainstream, and by extension the alternatives to it, by adopting a genealogical approach: tracing the methodological development of the economic mainstream through its ancestry, which allows for a definition of the mainstream which is separate from politically charged categories or gridlocked academic arguments between received schools of thought. The book follows the evolution of the economic mainstream through four major transformations of the discipline: from political (...) to analytical economics, debates around a logical empiricist economics, the consolidation of neoclassical economics and the recent expansion of the mainstream. For each of these steps, the key point of departure is explored, illustrated through the work of leading authors at the time. Thus, the book draws on recent research from the history of economic thought and debates the crucial role of historic concepts of economics for alternativity in the field. Finally, to put the approach into practice, the book examines the relation between today's mainstream and two of its relatives: ecological economics and degrowth. Finally, the book reflects on recent exciting developments in the discourse on alternativity and sheds light on some distant relatives of today's mainstream. This book marks a significant contribution to the literature on the debates around the state and nature of mainstream, alternative and heterodox economics. (shrink)

We present a theoretical framework of individual-decision making that incorporates both moral motivations and social influence into the utility function. The main idea of the paper is that individuals face a trade-off between their material individual interests and their desire to follow moral obligation. In our model, we assume that moral motivation is weak or conditional in the sense that it may be influenced by others’ actions. Specifically, in our framework one’s moral obligation is a combination of two main components: (...) an autonomous component and a social component that captures the influence of others. Our theoretical framework is able to explain many stylized results commonly observed in the literature and suggests a different mechanism to explain economic behavior. (shrink)

The interpretation of economic theories varies along several dimensions. First, models can describe reality, illustrate a recommended state of affairs, or analyze the structure and implications of a theory. Second, theories can be used for prediction or for explanation. Third, theories can relate to reality in a rule-based or case-based manner. Fourth, theories can be statements about economic reality or about the act of economic reasoning itself. Fifth, theories can offer predictions or merely critique reasoning. We argue that theories are (...) often open to multiple interpretations which can shift depending on the context in which the theory is applied, the surrounding economic literature, and the argument made by the interpreter. (shrink)

Samuel Hollander is widely recognized as one of the most important and controversial historians of economic thought. This second volume collects together essays extending beyond classical economics, the subject with which he is most associated. This collection includes: * studies in Scholastic, Smithian and Marshallian literature * papers on the Corn-Law pamphlet literature of 1815, the post-Ricardian dissension, and the marginal revolution * essays on T.R. Malthus, including four bibliographical studies The volume also includes an autobiographical section (...) and reviews of a broad range of important books published in the last thirty years. (shrink)

Research in the cognitive sciences indicates that metaphors significantly shape perceptions and approaches to problem solving. With this in mind, this essay argues that it is problematic for ethicists that mainstream economics and other social scientific literature relies on naturalistic metaphors to describe markets. These imply an inaccurate picture of economic phenomena and rhetorically frame many solutions to problems such as inequality as interventionist. This essay proposes that religious ethicists may find resources for avoiding this conceptual hazard in (...) emerging fields of heterodox economics that are attentive to the role of culture and human agency in shaping markets. It introduces feminist, behavioral, institutional, and Austrian economics in particular and highlights some of the specific approaches to inequality adopted in these fields. It then suggests that engaging heterodox perspectives more generally may help ethicists keep in view the full complexity and social nature of the economic problems they analyze. (shrink)

The paper considers three questions. First, what is the connection between economics and agency? It is argued that causation and explanation in economics fundamentally depend on agency. So a philosophical understanding of economic explanation must be sensitive to an understanding of agency. Second, what is the connection between agency and causation? A causal view of agency-involving explanation is defended against a number of arguments from the resurgent noncausalist tradition in the literature on agency and action-explanation. If agency (...) is fundamental to economic explanation, it is argued, then so is causation. Third, what is the connection between causal explanation and the natural sciences? It is argued that, though the explanations given in economics and other social sciences are causal explanations, they are different in kind from the causal explanations of the natural sciences. On the one hand, then, the causal explanations of the social sciences are irreducible to those found in the natural sciences. On the other hand, the causal relations described by the social sciences are not completely autonomous; they do not float free of, or operate independently from, the causal relations charted by the natural sciences. (shrink)

The paper interprets and comparatively analyzes the economic conceptions of Christianity and Buddhism and their representative business models. The paper contributes to the business and society literature by showing the relevance and applicability of Christian and Buddhist business models in the Anthropocene era. The paper argues that Christianity and Buddhism represent distinct ontological and anthropological positions, and their economic conceptions and business models are also different. However, their basic ethical values (charity, justice, and solidarity on the one hand, and (...) simplicity, non-violence, and compassion on the other) are not antagonistic but can be considered complementary. The Christian–Buddhist dialog about the economy is much needed if humanity seeks to survive the crises of the Anthropocene. (shrink)

In the economic debate, power is defined and studied mainly as an interpersonal relation occurring out of perfect competition. This is a consequence of the combination of methodological individualism and the assumption of competition as a natural and everlasting coordinating mechanism, operating without any sort of coercion. This methodology, however, is not adequate to analyze the forms of social coercion that characterize capitalism. " Economics and Power" criticizes the main theories of power developed in economic literature, analyzing ultraliberal (...) contractualism to radical political economics, and ultimately suggesting a Marxist conception of power and coercion in capitalism. Palermo s ontological argument is rooted in the philosophy of critical realism.This unique volume presents his main finding as being that the essential coercive mechanism of capitalism is competition. Capitalist power is not caused by a lack of competition, but by the central role it plays in this mode of production. Following this, the chapters reconstruct a Marxian conception of power where it is analyzed as a social relation and argues that perfect competition does in fact exist under the disguise of capitalist power. This book criticizes the construct of power and the underlying ideas surrounding perfect competition. This book is of interest to those who study political economy, as well as economic theory and philosophy. ". (shrink)

The economic and moral defense of sweatshops given by Powell and Zwolinski has been criticized in two recent papers. Coakley and Kates focus on putative weaknesses in the logic of Powell’s and Zwolinski’s argument. Preiss :55–82, 2014) argues that, even granting the validity of their economic argument, Powell’s and Zwolinski’s defense is without force when viewed from a Kantian republican viewpoint. We are concerned that sweatshop critics have misinterpreted the economic literature and overstated the conclusions that follow from their (...) ethical premises. We show that the best understanding of the current economic literature supports Powell’s and Zwolinski’s conclusions about the negative effects of sweatshop wage regulation, and that it is unreasonable to reject economic analysis in moral argument against sweatshops even from a Kantian perspective. Additionally, we defend the theory of exploitation as unfairness given by Wertheimer, and show how economic analysis can be applied to that theory to identify cases of sweatshop exploitation. (shrink)

Building on a theory of human intelligence, this book explores the importance of - and limits of - cost/benefit calculus (safety first in hostile environment), on the evolution of economic activity and political discourse. Arguing that intelligence consists of wisdom, cost/benefit reasoning, and creative genius, the book explores the history of the world from hunting and gathering to modern times, drawing on art, literature and invention. It emphasizes ethics, expectations and the importance of historical experience in shaping the humanist (...) economics story. (shrink)

'An extremely readable book that should provoke both economists and students of economic methodology to think more deeply about what they are doing.' Roger E. Backhouse, Professor of the History and Philosophy of Economics, University of BirminghamEconomic Methodology provides an accessible introduction to the subject-matter of and literature on the methodology of economics. It presents issues in economics in order to demonstrate the need for methodological awareness and debate. The core of the book then explains the (...) content and development of thought in methodology in relation to issues in economics, with an especial emphasis on the most recent thinking in the area. (shrink)

The interpretation of economic theories varies along several dimensions. First, models can describe reality, illustrate a recommended state of affairs, or analyze the structure and implications of a theory. Second, theories can be used for prediction or for explanation. Third, theories can relate to reality in a rule-based or case-based manner. Fourth, theories can be statements about economic reality or about the act of economic reasoning itself. Fifth, theories can offer predictions or merely critique reasoning. We argue that theories are (...) often open to multiple interpretations which can shift depending on the context in which the theory is applied, the surrounding economic literature, and the argument made by the interpreter. (shrink)

We define an evolutionary process of “economic Darwinism” for playing the field, symmetric games. The process captures two forces. One is “economic selection”: if current behavior leads to payoff differences, behavior yielding lowest payoff has strictly positive probability of being replaced by an arbitrary behavior. The other is “mutation”: any behavior has at any point in time a strictly positive, very small probability of shifting to an arbitrary behavior. We show that behavior observed frequently is in accordance with “evolutionary equilibrium”, (...) a static equilibrium concept suggested in the literature. Using this result, we demonstrate that generally under positive (negative) externalities, economic Darwinism implies even more under- (over-)activity than does Nash equilibrium. (shrink)

Our socio-economic innovation ecosystem is riddled with ever-increasing complexity, as we are faced with more frequent and intense shocks, such as COVID-19. Unfortunately, addressing complexity requires a different kind of economic governance. There is increasing pressure on economics to not only going beyond its traditional mainstream boundaries but also to tackle real-world problems such as fostering structural change, enhancing sustained growth, promoting inclusive development in the era of the digital economy, and boosting green growth, while addressing the divide between (...) the financial sector and the real economy. This book demonstrates how to apply complexity science to economics, in an effective and instructive way, in the interest of life-enhancing policies. The book revolves around the non-negligible problem of why economics, to date, seems to be insufficient in guiding economic governance to navigate through real and ever-intensifying complex socio-economic and environmental challenges. With its interdisciplinary approach, the book scans the nuanced nexus between complexity and economics by incorporating, as well as transcending the state-of-the-art literature. It identifies ways to trigger opportunities for behaviour change in the economic profession with respect to how to teach and what, introducing and developing further complexity economics thinking with the configuration of its main principles and outlining the silhouette of next-generation economic governance. The book deciphers recommendations both for economic theory, practice, and education and economic governance. It will be of interest to students, scholars, academics, think tank researchers and economic policy practitioners at the national and/or supranational level. Olivér Kovács is a senior research fellow in the Department of Economics and International Economics at the University of Public Service, Budapest, Hungary. (shrink)

In this paper I consider various shifts in my research and understanding stimulated by seeking how to combat social ecological crises connected to modern economies. The discussion and critical reflections are structured around five papers that were submitted to Environmental Values in an open call to address my work. A common aspect is the move away from neoclassical environmental economics, and its reductionist monetary valuation, to a more realist theory and multiple methods. This relates to my work on environmental (...) ethics, plural values, stated preference validity and deliberative monetary valuation. Expanding beyond the narrow confines of mainstream orthodoxy has involved exploring a range of other disciplines (e.g. applied philosophy, social psychology, human geography, political science, social anthropology, history of thought and philosophy of science) and learning from this literature to rethink economics and develop social ecological economics. A broad range of subjects are covered here, including: personal responsibility, social practice, psychology of the individual, participatory processes, value (intrinsic, instrumental and relational), Nature–society relationships and interdependencies, critical realism and the conduct of unifying interdisciplinary science. I end with a series of comments concerning the failings of orthodox economics and the conduct of scientific research for social ecological transformation. (shrink)

Designing policy for climate change requires analyses which integrate the interrelationship between the economy and the environment. We argue that, despite their dominance in the economics literature and influence in public discussion and policymaking, the methodology employed by Integrated Assessment Models (IAMs) rests on flawed foundations, which become particularly relevant in relation to the realities of the immense risks and challenges of climate change, and the radical changes in our economies that a sound and effective response require. We (...) identify a set of critical methodological problems with the IAMs which limit their usefulness and discuss the analytic foundations of an alternative approach that is more capable of providing insights into how best to manage the transition to net-zero emissions. (shrink)

Although South African and international research has been enriched by a wide variety of empirical findings regarding supply chain management (SCM) corruption in South Africa, there is a significant gap in the literature, particularly in terms of the direct and indirect connections of black economic empowerment (BEE) entrepreneurs, local government and to processes of SCM at South African municipalities. This study is based on an inductive, qualitative and interpretative methodology aimed at analysing and dissecting relationships in the context of (...) BEE entrepreneurs engaging in corruption. Within this realm of corruption, the article also looks at the role of supply chain and procurement at two South African municipalities. The municipalities selected were situated in both urban and rural areas in KwaZulu-Natal and the Eastern Cape. The eight interviewees represented the political, administrative and workers’ sections of the municipalities. The findings pinpoint the realities of aspects of BEE associated with the nature of corruption in public procurement in the municipalities and the influence of BEE entrepreneurs in processes of corruption, particularly in SCM functions and processes. Contribution: Corruption remains a key threat to South Africa’s young democracy. This is particularly true at the local level, the central pivot in our society building exercise. A multidisciplinary journal of this nature will benefit from the focus of this article, particularly in light of the fact that it also hopes to ignite thought around the moral ramifications of rampant corruption in South Africa. (shrink)

With references to the theoretical framework of Michel Foucault and Pierre Bourdieu, this book offers a critical investigation into such epic issues as the end of art and the inherent laws of literature's evolution, while conflating the two into one major argumentation. The book proceeds from Hegel's claim of "the end of art" to tackle the universal yet essential problem of literature: its legitimacy in a sociological sense. It invests Bourdieu's sociological terms -- power, capital, habitus, field, etc. (...) into the study of literature and art while taking on other theoretical enquiries, particularly the Marxist exploration into ideology, as well as aspects of economics and communication studies. This book will be a valuable resource for students and scholars of the sociology of literature, cultural studies, and those with specific interests in Chinese literature, literary and art theory. (shrink)

Perhaps the most salient feature of Rawls's theory of justice which at once attracts supporters and repels critics is its apparent egalitarian conclusion as to how economic goods are to be distributed. Indeed, many of Rawls's sympathizers may find this result intuitively appealing, and regard it as Rawls's enduring contribution to the topic of economic justice, despite technical deficiencies in Rawls's contractarian, decision-theoretic argument for it which occupy the bulk of the critical literature. Rawls himself, having proposed a “coherence” (...) theory of justification in metaethics, must regard the claim that his distributive criterion “is a strongly egalitarian conception” as independently a part of the overarching moral argument. The alleged egalitarian impact of Rawls's theory is crucial again in normative ethics where Rawls is thought to have developed a major counter-theory to utilitarianism, one of the most popular criticisms of which has been its alleged inadequacy in handling questions of distributive justice. Utilitarians can argue, however, as Brandt recently has, that the diminishing marginal utility of money, along with ignorance of income-welfare curves, would require a utility-maximizing distribution to be substantially egalitarian. The challenge is therefore for Rawls to show that his theory yields an ethically preferable degree of equality. (shrink)

Executive compensation has long been a prominent topic in the management literature. A main question that is also given substantial attention in the business ethics literature—even more so in the wake of the recent financial crisis—is whether increasing levels of executive compensation can be justified from an ethical point of view. Also, the relationship of executive compensation to instances of unethical behavior or outcomes has received considerable attention. The purpose of this paper is to explore the social, ecological, (...) and existential costs of economic incentives, by discussing how relying on increasing levels of executive compensation may have an adverse effect on managerial performance in a broad sense. Specifically, we argue that one-dimensional economic incentives may destroy existential, social, and systemic values that influence the manager’s commitment to ensure responsible business conduct, and have negative spillover effects that may reduce the manager’s performance. There are well-documented findings that demonstrate that reliance on sources of extrinsic motivation (such as economic incentives) may displace intrinsic motivation. Our perspective is a holistic one, in the sense that we will explore the influence of sources of extrinsic motivation on the manager’s intrinsic commitment to different types of values. We will in particular investigate how it may influence the manager’s ethical reflection and behavior or lack thereof. (shrink)

We consider the potential contribution of economics to an interdisciplinary research partnership between sociology and neuroscience. We correct a misunderstanding in previous literature over the understanding of humans as ‘social animals’, which has in turn led to misidentification of the potential relevance of game theory and the economics of networks to the social neuroscience project. Specifically, it has been suggested that these can be used to model mindreading. We argue that mindreading is at best a derivative and (...) special basis for social coordination, whereas the general and pervasive phenomenon on which it depends is mindshaping. We then outline the foundations of Conditional Game Theory as a mathematical model of mindshaping, which extends game theory without displacing its classic solution concepts, and which exploits economists’ experience in modeling networks. (shrink)

The lack of attention to sustainability, as a concept with multiple dimensions, has presented a developmental gap in green marketing literature, sustainability, and marketing literature for decades. Based on the established premise of customer–corporate (C–C) identification, in which consumers respond favorably to companies with corporate social responsibility initiatives that they identify with, we propose that consumers would respond similarly to companies with sustainability initiatives. We postulate that consumers care about protecting and preserving favorable economic environments (an economic dimension (...) of sustainability) as much as they care about natural environments. Thus, we investigate how two sustainability dimensions (i.e., environmental and economic) and price can influence consumer responses. Using an experimental method, we demonstrate that consumers favor sustainability in both dimensions by giving positive evaluations of the company and purchase intent. In addition, consumers respond more negatively to poor company sustainability than to high company sustainability. In comparison, consumers respond more negatively to the company’s poor commitment to caring for the environment than to the company’s poor commitment to economic sustainability. We also find that consumers do not respond favorably to low prices when they have information about the firm’s poor environmental sustainability. Finally, we find support for an interaction effect between consumer support for sustainability and corporate sustainability; that is, consumers evaluate a company more favorably if the company shares the consumers’ social causes. Overall, we conclude, from our empirical study, support for the idea that consumers do respond to multiple dimensions of sustainability. (shrink)

Efforts to recruit and retain farmers have traditionally supported the farm business through a focus on access to land, capital, and business skills. While these efforts are critical, a small body of work indicates that these may be insufficient because they rarely account for the social and economic needs of farm households and how the (in)ability to meet these needs interacts with the development and economic viability of the farm enterprise. Social and economic needs include, but are not limited to (...) access to health insurance and health care, childcare, adequate household and retirement income, affordable housing, and food security. This article introduces a symposium intended to shed light on these underappreciated needs and how they connect to the farm enterprise. We contend that a greater understanding of farm households’ lived realities meeting their social and economic needs could lead to a paradigm shift in how we understand and support farm families’ resilience. We set the stage for the eight articles in this symposium in two ways. First, we present the theoretical and empirical reasons why considering household-level needs is crucial when working towards supporting the agricultural sector. Second, we review the literature on farm households’ social and economic needs. We then thematically summarize the key insights from the eight articles. Despite variations in topics studied, research designs, and geographical contexts, we note a clear pattern in what the authors see as the implications of their findings. Namely, they reaffirm the need to challenge the traditional view that separates household needs from farm enterprise activities and outcomes. Their collective call for stronger social and agricultural programs and policies is noteworthy and may in part be connected to the structural underpinnings of the challenges meeting social and economic needs highlighted across the articles. (shrink)

The connection between economics and ethics is as old as economics itself, and central to both disciplines. It is an issue that has recently attracted much interest from economists and philosophers. The connection is, in part, a result of the desire of economists to make policy prescriptions, which clearly require some normative criteria. More deeply, much economic theory is founded on the assumption of utility maximization, thereby creating an immediate connection between the foundations of economics and the (...) philosophical literature on utilitarianism and reasons for action. In fact, some influential contemporary approaches to ethics advocate decision-theoretic or game-theoretic foundations of some sort for moral principles, while several economic theorists are now prepared to take into account the ethical dimensions of rational decisions. As a result, it appears that economics and ethics are somehow inextricably linked through theories of rational decision-making. Most of us would probably find it disturbing to concede that there are contradictions between the prescriptions of rationality and the requirements of moral `rightness'. The essays included in the present volume provide a detailed analysis of the connections between ethics and economics as viewed from several different - sometimes conflicting - perspectives. This book, the outcome of a joint meeting of philosophers and economists, has three main themes: the validity of utilitarianism much used by economists, the notion of fairness and equity, and the coherence of the rationality postulate of economics. The book does not reach any final conclusions, but it greatly illuminates the exact areas of possible disagreement and indeed the open-ended nature of ethical reasoning. There is much that economists, and especially welfare economists, can learn from these papers - not least circumspection. (shrink)

On the face of it, the protracted public controversy over abortion in the United States and elsewhere might seem to rest on intractable normative questions inaccessible to economic analysis. But an influential early essay in the now sizable philosophical literature on the subject suggests otherwise. Judith Jarvis Thomson disarmingly inclined toward the view that “the fetus has already become a human person well before birth”,. presumably with all the rights pertaining thereto. She denied, however, that such rights necessarily include (...) use of the mother's womb until birth. To illustrate her point, she compared the mother's situation to that, for example, of an unwilling Good Samaritan with a uniquely suited blood type, who is forced to share a kidney for 9 months with a famous, ailing violinist who needed its use for that duration to recover. Even if the life of a human being was at stake, the assertion of rights for the violinist or the fetus, she argued, would be too degrading for either the Good Samaritan's or the mother's status as a person, where large unwanted sacrifices would be required. Reduced to its economic essentials, the argument is that the mother has property rights to her own body, including the right to expel a “trespasser”. who would die as a consequence. Thus, the antiabortion position is neatly undercut by granting its major premise while denying its conclusion. (shrink)

The theory of contracts grew out of the failure of the general equilibrium model to account for the strategic interactions among agents that arise from informational asymmetries. This popular text, revised and updated throughout for the second edition, serves as a concise and rigorous introduction to the theory of contracts for graduate students and professional economists. The book presents the main models of the theory of contracts, particularly the basic models of adverse selection, signaling, and moral hazard. It emphasizes the (...) methods used to analyze the models, but also includes brief introductions to many of the applications in different fields of economics. The goal is to give readers the tools to understand the basic models and create their own.For the second edition, major changes have been made to chapter 3, on examples and extensions for the adverse selection model, which now includes more thorough discussions of multiprincipals, collusion, and multidimensional adverse selection, and to chapter 5, on moral hazard, with the limited liability model, career concerns, and common agency added to its topics. Two chapters have been completely rewritten: chapter 7, on the theory of incomplete contracts, and chapter 8, on the empirical literature in the theory of contracts. An appendix presents concepts of noncooperative game theory to supplement chapters 4 and 6. Exercises follow chapters 2 through 5. (shrink)

Alongside other types of mass atrocities, genocide has received extensive scholarly, policy, and practitioner attention. Missing, however, is the contribution of economists to better understand and prevent such crimes. This edited collection by 41 accomplished scholars examines economic aspects of genocides, other mass atrocities, and their prevention. Chapters include numerous case studies, probing literature reviews, and completely novel work based on extraordinary country-specific datasets. Also included are chapters on the demographic, gendered, and economic class nature of genocide. Replete with (...) research- and policy-relevant findings, new insights are derived from behavioral economics, law and economics, political economy, macroeconomic modeling, microeconomics, development economics, industrial organization, identity economics, and other fields. Analytical approaches include constrained optimization theory, game theory, and sophisticated statistical work in data-mining, econometrics, and forecasting.A foremost finding of the book concerns atrocity architects' purposeful, strategic use of violence, often manipulating nonrational proclivities among ordinary people to sway their participation in mass murder. Relatively understudied in the literature, the book also analyzes the options of victims before, during, and after mass violence. Further, the book shows how well-intended prevention efforts can backfire and increase violence, how wrong post-genocide design can entrench vested interests to reinforce exclusion of vulnerable peoples, and how businesses can become complicit in genocide. In addition to the necessity of healthy opportunities in employment, education, and key sectors in prevention work, the book shows why new genocide prevention laws and institutions must be based on reformulated incentives that consider insights from law and economics, behavioral economics, and collective action economics. (shrink)

This paper discusses recent attempts by economists to analyze institutional structure using individualist methodology. It is argued that developments in game theory, as well as advances in the analysis of transactions costs, have proved surprisingly fertile in yielding insights into the nature and structure of institutions. The example of the university is used to illustrate the ways in which the economic approach to institutions can be applied. In particular, the nature of academic contracts and the non?profit status of universities are (...) related to the literature on contractual hazards. Although methodologically very different from sociological or historical analysis of institutions, it is argued that the new institutional economics may provide a bridge permitting greater contact between hitherto almost entirely separate disciplines. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:Philosophy and Literature 29.1 (2005) 1-23 [Access article in PDF] Literature and Evolution: A Bio-Cultural Approach Brian Boyd University of Auckland Many now feel that the "theory" that has dominated academic literary studies over the last thirty years or so is dead, and that it is time for a return to texts.1 But many more outside literary studies—in fields as diverse as anthropology, economics, law, psychology, (...) and religion—have recently come to recognize that the deep past that shaped our species can help to explain our present and recent past. Since a bio-cultural model of the human can only be richer than a solely cultural model, and since it implies neither genetic determinism nor limitation to the status quo, I want to argue for a bio-cultural or evolutionary approach to literature, first in very general terms, and then through a few aspects of a single familiar example, Hamlet.2 Such an approach, I suggest, can offer both a more comprehensive theory of literature and a closer investigation of literary texts. I Traditional views of literature tended to see it as reflecting nature, especially human nature, all the way from Plato's discomfort with, or Aristotle's admiration for, mimesis to Shakespeare's or Stendhal's images of art as holding the mirror up to nature. Common-sense traditional views of art and literature have easily shaded into transcendental views, widespread because religious beliefs have been so pervasive and because both artists and their patrons in state or church benefit by nurturing a sense of awe at art's putatively divine origins and power.In the twentieth century, first in sociology, anthropology, and even [End Page 1] psychology, then by the 1960s in the combination of these with Saussurean linguistics that produced structuralism and its aftershocks, and therefore impacted on literature, there has been a rejection of human nature as a given and a stress on human nature as the product only of culture and convention. "Theory," or what the Norton Anthology of Theory and Criticism more pointedly calls cultural critique, rightly critiques traditional common-sense and transcendental views of art, pointing out that the nature, human nature, or supernature that art or literature was supposed to reflect was merely what was assumed of these things from within a local cultural perspective.3 Roland Barthes, for example, criticized "the mystification which transforms petit-bourgeois culture into a universal nature."4 Modern Theory also rejects the individual as another bourgeois or capitalist or Western notion, as when Fredric Jameson echoed Barthes's Death of the Author by announcing the Death of the Subject.5 Criticism since the 1960s "has denied, on theoretical grounds, the relevance of the single historically definable author."6However, as many have lately realized, there are problematic ethical consequences of both the denial of human nature and the denial of the individual. After such denials, on what basis do we then claim equal rights for all humans, and on what basis do we assign responsibility for particular actions?7 If there is no "single historically definable author," does that mean that someone penning a racist screed cannot be held accountable?A critique of unquestioned Western assumptions about human nature was needed, but the post-1960s critique was shortsighted: it has not looked nearly far enough. While structuralism and its more or less rebellious offspring were continuing the lineage of early twentieth-century social sciences, the natural sciences were moving in the opposite direction, towards the first comprehensive scientific attempt to understand human nature in the context of evolution and human, animal, and artificial cognition and behavior.In the humanities there has of late been widespread skepticism about science. Some postmodernists have what they deem "a sophisticated appreciation of the futility of proof and the relativity of all knowledge claims." But, as Daniel Dennett comments, "this opinion, far from being sophisticated, is the height of sheltered naïveté, made possible only by... ignorance of the proven methods of scientific truth-seeking and their power."8 Science does not generate only true answers: ideas proposed within it can of... (shrink)

We briefly review the recent literature on globalization, and present empirical evidence showing that economic globalization has been correlated with higher economic growth and lower poverty rates. We then evaluate the consequences of economic globalization in light of standards of commutative justice as Smith articulated, distributive justice as Rawls presented, and practical justice as Kolm explicated. This essay argues that economic globalization fulfills the requirements of all three species of justice.

In an important contribution to educational policy, Daniele Checchi offers an economic perspective on the demand and supply of education. He explores the reasons why, beyond a certain point, investment in education has not resulted in reductions in social inequalities. Starting with the seminal work of Gary Becker, Checchi provides an extensive survey of the literature on human capital and social capital formation. He draws on individual data on intergenerational transmission of income and education for the USA, Germany and (...) Italy, as well as aggregate data on income and educational inequality for a much wider range of countries. Checchi explores whether resources spent in education are effective in raising students' achievement, as well as analysing alternative ways of financing education. The Economics of Education thus provides the analytical tools necessary to understand the complex relationships between current income inequality, access to education and future inequality. (shrink)

Recently, game theory and evolutionary game theory - mathematical frameworks from economics and biology designed to model and explain interactive behavior - have proved fruitful tools for philosophers in areas such as ethics, philosophy of language, social epistemology, and political philosophy. This methodological osmosis is part of a trend where philosophers have blurred disciplinary lines to import the best epistemic tools available. In this vein, experimental philosophers have drawn on practices from the social sciences, and especially from psychology, to (...) expand philosophy's grasp on issues from morality to consciousness. We argue that the recent prevalence of formal work on human interaction in philosophy opens the door for new methods in experimental philosophy. In particular, we discuss methods from experimental economics, focusing on a small literature we have been developing investigating signaling and communication in humans. We describe results from a novel experiment showing how environmental structure can shape signaling behavior. (shrink)

Economics is the only established discipline that is regularly charged not just with including ideologically motivated research programs and hypotheses, but with actually being (at least in its institutionalized mainstream form) an ideology. As Coleman (2002) documents, this charge has followed economics since its modern inception as ‘political economy’ in the eighteenth century. There is a veritable tradition of what Coleman calls ‘anti-economics’, most famously populated by people such as Ruskin and Carlyle, and extending in the contemporary (...) environment to include philosophers John Gray[1] and John Dupré,[2] numerous popular agitators associated with environmentalism and the self-styled ‘anti-capitalist’ and ‘anti-globalization’ movements, and no small number of disillusioned economists.[3] Of course all disciplinary establishments rightly attract critical literature; but as far as I know no one has ever published a book called ‘The Death of Geology’ featuring a hangman’s noose on the cover.[4] Coleman’s compendium of evidence shows conclusively, in case anyone hasn’t been keeping their eyes and ears open, that economics is actively hated by a substantial number of people. There is no other discipline of which this is true, except insofar as some people hate all actual and would-be scientific disciplines from religious, green, or aesthetic motivations. (shrink)

Despite triggering one of the largest civilian death tolls in modern history, the policy and human consequences of economic sanctions on Iraq between 1990-2003 remain largely unexamined. This lack of scrutiny mirrors the euphemism and mis-information surrounding the embargo itself and the Oil-for-Food program ostensibly adopted to protect Iraq's civilian population. But it also reflects incomprehension among Western publics - long removed from the realities of hunger and economic destitution - of the intimate link between economic conditions and mortality. Iraq (...) suffered an estimated 1.5 million excess deaths because of a catastrophic undermining of civilian livelihood triggered by the embargo; an outcome termed slow famine in the demographic literature. With much of the population fully dependent on daily food rations of less than 21 cents per person for much of the sanctions period, OfF `relief' was inherently incapable of substituting for a functioning civil economy. Recent positive accounts of the impact of OfF, in the form of the Independent Inquiry Committee into the Oil-for-Food Program, are refuted by close analysis of malnutrition and mortality rates across the sanctions period. The example of Iraq reveals the danger in treating economic sanctions as a cheap, `non-violent' tool for conflict resolution. In reality their deadly power is terrorizing for societies not protected from their application by permanent member status on the UN Security Council, a threat which continues to generate global insecurity. The Iraq experience reveals how current, narrowly framed, international law prohibitions on starvation as a weapon of war need to be extended to cover interference with civilian livelihood and hence access to food. (shrink)

Where should experimental economics go next? This paper uses the literature on inequity aversion as a case study in suggesting that we could profit from tightening up our act.

This is an expanded second edition of Nicholas Mercuro and Steven Medema's influential book Economics and the Law, whose publication in 1998 marked the most comprehensive overview of the various schools of thought in the burgeoning field of Law and Economics. Each of these competing yet complementary traditions has both redefined the study of law and exposed the key economic implications of the legal environment. The book remains true to the scope and aims of the first edition, but (...) also takes account of the field's evolution. At the book's core is an expanded discussion of the Chicago school, Public Choice Theory, Institutional Law and Economics, and New Institutional Economics. A new chapter explores the Law and Economics literature on social norms, today an integral part of each of the schools of thought. The chapter on the New Haven and Modern Civic Republican approaches has likewise been expanded. These chapters are complemented by a discussion of the Austrian school of Law and Economics. Each chapter now includes an "At Work" section presenting applications of that particular school of thought. By providing readers with a concise, noncritical description of the broad contours of each school, this book illuminates the fundamental insights of a field with important implications not only for economics and the law, but also for political science, philosophy, public administration, and sociology. (shrink)

In earlier work, the author has studied the economic role of planning horizons in making a case for complementarity as the predominant feature of social interdependence. This paper compares the different choice strategies implied by substitution, opposition and conflicts of interest in an economics of fear with those arising from horizon effects, economic complementarity and concerts of interest in an economics based on love. The contrasting implications of a psychological literature on negative vs. positive emotions and their (...) health effects, along with the findings in neurophysiological research about how humans are hard-wired for empathy and compassion leads to some fundamental changes in how we might address and revise social problems through economic analysis. The aim of this paper is to extend a horizonal case for complementarity in the author's previous work into its psychological links to research findings on healthy cognitive function and its emotional basis. An economics of substitution yields quite different conclusions about optimal institutional forms and how we address and frame social relations than are implied by an explicitly horizonal economics of complementary social relations. Recent psychological and neurophysiological studies support a horizonal case for complementarity in social relations, showing that our orthodox substitution assumptions and models of competitive equilibrium should be rejected for a renewed economic analysis based on horizonal models of complementarity and cooperation as a means to achieve greater social well-being in a healthier and more integrative form of social organization. The issues to be explored are not entertained within the currently existing frame of orthodox economics, so we must step beyond our standard habitual assumptions. (shrink)

This volume, first published in 1991, represents a wide-ranging inquiry into the general field of structural economic analysis and provides a thorough appraisal of the method of economic dynamics. It comprises nine original essays by distinguished scholars, all of which assess different aspects of the concept of economic structure. The analytical contribution of the volume is to draw attention to the relationship between 'horizontal' and 'vertical' treatments of economic structure that have characterized economic theory. The former focuses on the circular (...) character of economic relationships, as exemplified in the Quesnay–Leontief literature, while the latter concentrates on the relationships between the 'fund' of productive resources and the production of finished goods. Perhaps the most important contribution of the volume is to provide a linkage between the two approaches and to put forward a new conceptual framework that combines an appreciation for the importance of technical relationships with a recognition of the institutional arrangements in the economic system. (shrink)

This was the first cross-over book into the history of science written by an historian of economics. It shows how 'history of technology' can be integrated with the history of economic ideas. The analysis combines Cold War history with the history of postwar economics in America and later elsewhere, revealing that the Pax Americana had much to do with abstruse and formal doctrines such as linear programming and game theory. It links the literature on 'cyborg' to (...) class='Hi'>economics, an element missing in literature to date. The treatment further calls into question the idea that economics has been immune to postmodern currents, arguing that neoclassical economics has participated in the deconstruction of the integral 'self'. Finally, it argues for an alliance of computational and institutional themes, and challenges the widespread impression that there is nothing else besides American neoclassical economic theory left standing after the demise of Marxism. (shrink)

As the transaction cost theory of the firm was taking shape in the 1970s, another important movement in economics was emerging: a revival of the ‘Austrian’ tradition in economic theory associated with such economists as Ludwig von Mises and F. A. Hayek . As Oliver Williamson has pointed out, Austrian economics is among the diverse sources for transaction cost economics. In particular, Williamson frequently cites Hayek , particularly Hayek’s emphasis on adaptation as a key problem of economic (...) organisation . Following Williamson’s lead, a reference to Hayek’s ‘The Use of Knowledge in Society’ has become almost mandatory in discussions of economic organisation . However, there are many other potential links between Austrian and transaction cost economics that have not been explored closely and exploited.This article argues that characteristically Austrian ideas about property, entrepreneurship, economic calculation, tacit knowledge, and the temporal structure of capital have important implications for theories of economic organisation, transaction cost economics in particular. Austrian economists have not, however, devoted substantial attention to the theory of the firm, preferring to focus on business-cycle theory, welfare economics, political economy, comparative economic systems, and other areas. Until recently the theory of the firm was an almost completely neglected area in Austrian economics, but over the last decade, a small Austrian literature on the firm has emerged. While these works cover a wide variety of theoretical and applied topics, their authors share the view that Austrian insights have something to offer students of firm organisation. (shrink)