Showing papers in "Forum for Social Economics in 2001"
TL;DR: The conventional neoclassical wisdom predicts that banning, restricting, or improving the working conditions of child labor will increase the costs of production, thereby diminishing the competitiveness of those jurisdictions that legislate against child labor as discussed by the authors.
Abstract: The conventional neoclassical wisdom predicts that banning, restricting, or improving the working conditions of child labor will increase the costs of production, thereby diminishing the competitiveness of those jurisdictions that legislate against child labor. However, from a behavioral theoretical perspective this need not be the case when a productivity differential favoring adult labor exists which at least compensates for the pay differential between child and adult labor, and where the increased cost of child labor is compensated for by their increased productivity. In this case, legislating against child labor will not have the negative economic consequences predicted by the conventional wisdom. The cost of such restrictions, however, will then fall largely on the family income of affected families unless compensated for by sufficient increases in real adult wages, increases in the adult labor force participation rate, or other sources of income.
10 citations
TL;DR: The application of economic methodology to the problem of terrorism is discussed in this paper, where theoretical and empirical results are discussed with particular focus on the September 11 attack and the retaliatory response by the United States.
Abstract: The application of economic methodology to the problem of terrorism is discussed. Theoretical and empirical results are discussed with particular focus on the September 11 attack and the retaliatory response by the United States. Economists have relied on the rational agent model to derive testable hypotheses regarding the behavior of terrorists. The rational agent model postulates that terrorists respond to incentives, including media publicity, and the model predicts that when the net marginal benefit from one type of terrorist activity is diminished, terrorists will substitute into alternative modes of terrorism. Empirical results demonstrating that such substitutions indeed occur are discussed. Therefore, policy designed to reduce a particular form of terrorism, such as increased airport security to prevent airplane hijackings, may simply result in terrorists choosing alternative modes of terrorism. Empirical evidence demonstrating that terrorism is cyclical in nature is also discussed. Evidence on substitution and cycles suggests that following temporary reduction in terrorist activity after retaliation against terrorists and their infrastructure, terrorists are able to successfully regroup and attack using alternative means. Therefore, the current US focus on fighting terrorism on all fronts and over the long haul is the correct approach.
8 citations
TL;DR: In this paper, the authors make a proposal for reintroducing sociological or social economics into contemporary economic science, by analyzing the social structuring of the economy, and formal, by including sociological/social economics in the current classification system of economic disciplines.
Abstract: This paper makes a proposal for reintroducing sociological or social economics into contemporary economic science. Such a reintroduction is proposed to be substantive, by analyzing the social structuring of the economy, and formal, by including sociological/social economics in the current (JEL) classification system of economic disciplines (code A.15). Both epistemological and ontological arguments can be presented to support the proposal. Epistemological arguments invoke the presence of essential components of sociological economics in the development of economic thought, and ontological arguments stress the role of social factors in economic life. In this paper I present primarily epistemological (theoretical-methodological) arguments for sociological economics, and secondarily ontological ones. I show that the present designation, sociology of economics, is something different from sociological or social economics in that the former refers to economic epistemology (knowledge) and the latter to economic ontology (reality). I conclude that, in addition to a sociology of economic science, we need a sociology of economic life.
8 citations
TL;DR: In this article, the authors argue that the philosophy of science has long been the dominant way to reflect on the work of scientists, to be joined in more recent times by both the sociology of science and the rhetoric of science.
Abstract: Economists can reflect on their own field of research and themselves in a number of ways. The philosophy of science has long been the dominant way to reflect on the work of scientists, to be joined in more recent times by both the sociology of science and the rhetoric of science. In this paper I do not argue that these approaches are wrong, but I do argue that they should be complemented with a study of the individual scientist. A psychology of economists, in other words, is called for. One important theory in recent psychological literature (social learning/cognitive theory) is introduced as an instance to indicate what kind of suggestions concerning the reflective position of individual scientists might be derived. It would be preferable from this perspective that scientists set high standards for themselves, have an open mind to what happens in different disciplines, and set high standards by which to judge others. Then follows a discussion where some potential objections to the approach in general, or to the specific psychological theory in particular, are refuted.
5 citations
TL;DR: The authors show that, while the agreements imposed considerable costs on employees in some manufacturing industries, overall, Canadian institutions have not been substantially changed by the agreements, other factors have been much more important.
Abstract: A central concern with respect to globalization is its effects on institutions. Institutions are thought to provide protections against the casual damage inflicted by market processes and, in various ways, to contribute toward aggregate economic efficiency. The effects of the Canada-United States Free Trade Agreement and the North American Free Trade Agreement on the Canadian labor market and its institutions provide a useful case study of the effects of globalization because Canadian trade is so heavily concentrated with the United States. In this paper I show that, while the agreements imposed considerable costs on employees in some manufacturing industries, overall, Canadian institutions have not been substantially changed by the agreements. Where those institutions have changed, other factors have been much more important.
5 citations
TL;DR: This paper explored the various options available to labor within a generally hostile ideological climate and found that labor's most promising options may not be found primarily in restablishing constrants upon markets, but rather in gaining greater control over production in the form of greater participation in both firm decision-making and ownership.
Abstract: New technology, the fall of Eastern European socialism, new international trade agreements, and a resurgence of classical liberalism have greatly augmented the pace of capitalism's creative destruction. The principal benefits of this process have come in the form of new, better, and less-expensive consumer goods. But this process also generates a generalized sense of insecurity that most afflicts labor. Yet, the dominant ideology that has accompanied this latest burst of creative destruction has not been terribly sympathetic to labor's plight. After analyzing the character of this most recent burst of creative destruction, this paper explores the various options available to labor within a generally hostile ideological climate. The principle focus is on how labor's most promising options may not be found primarily in restablishing constrants upon markets, but rather in gaining greater control over production in the form of greater participation in both firm decision-making and ownership.
3 citations
TL;DR: The authors examines the contributions included in a recent book on resource scarcity in the ecological sense and discussion of the relevant issues in the context of distributive justice, as well as intergenerational equity.
Abstract: Although allocation of scarce resources among alternative uses to satisfy unlimited human wants in the positivist framework (a la Lionel Robbins)has been a focus of economists for a long time, awareness of resource scarcity in the ecological sense and discussion of the relevant issues in the context of distributive justice, as well as intergenerational equity, are of more recent vintage. A perspective encompassing judicious use of natural resources inevitably leads to a discussion which includes ecological, economic and ethical dimensions. This essay examines the contributions included in a recent book.
2 citations
TL;DR: Malthus began publishing in economics two centuries ago, and his thoughts on income distribution and poverty are profound as discussed by the authors, and his thought remains relevant to the present debate on poverty and his foresight deserves respect.
Abstract: Malthus began publishing in economics two centuries ago. His thoughts on income distribution and poverty are profound. Recently, more original findings on these issues have appeared, but can be viewed as rediscovering Malthus. His thought remains germane to the present debate on poverty and his foresight deserves respect.
1 citations