Showing papers in "Journal of Economic Issues in 1988"
133Â citations
TL;DR: In this article, an extension of the Institutionalist approach to Socioeconomic Analysis is presented. But the authors focus on the economic aspects of the analysis and do not consider the social aspects.
Abstract: (1988). Institutional Dynamics: An Extension of the Institutionalist Approach to Socioeconomic Analysis. Journal of Economic Issues: Vol. 22, No. 3, pp. 633-665.
91Â citations
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88Â citations
TL;DR: This paper explored the importance of the concept of habit to both orthodox and institutional economics and suggest how it might be fruitfully employed in future institutional research and suggested that the contemporary relevance of the notion of habit for institutionalists lies in its close relationship with the Veblenian dichotomy.
Abstract: The concept of habit has played only a very small role in the social sciences since the 1930s. During the 1930s the concept was relegated to psychology; prior to then it was extensively used in sociology.' The concept has never had widespread use in orthodox economics, for reasons we will explore later, but it is found frequently in the early literature of institutional economics, particularly in the works of Thorstein Veblen, John Dewey, and Charles Peirce.2 The term habit seldom occurs in contemporary neoinstitutional writings, but the concept is intimately entwined with the idea of ceremonial aspects of behavior. This article will explore the importance of the concept of habit to both orthodox and institutional economics and suggest how it might be fruitfully employed in future institutional research. Peirce, Veblen, and Dewey on Habit The contemporary relevance of the concept of habit for institutionalists lies in its close relationship with the Veblenian dichotomy, particularly, though not exclusively, ceremonial aspects of behavior. This is largely the result of Veblen's use of the concept in The Theory of the Leisure Class, published in 1899. The absence of citations in this work of Veblen's leaves the sources of some of his ideas ambiguous. To en
68Â citations
68Â citations
TL;DR: The Post-Keynesian and Institutionalist Theory of Money and Credit as mentioned in this paper is a theory of money and credit based on the post-Keysian and institutionalist theory of credit.
Abstract: (1988). The Post-Keynesian and Institutionalist Theory of Money and Credit. Journal of Economic Issues: Vol. 22, No. 4, pp. 1003-1021.
60Â citations
TL;DR: A taxonomy of anti-neoclassical economic theories can be found in this paper, where a distinction is made between those who literally believe that energy is identical to economic value, and those who regard the physics merely as a metaphorical resource and a cornucopia of ready-made mathematical models.
Abstract: One of the most striking and least noticed aspects of the history of anti-neoclassical thought in the twentieth century is the sheer volume of scientists-that is, research workers trained in physics, chemistry and biology-who have been under the impression that they were the first to believe that the only "true" economic value is energy. In fact, the variants on this theme are more luxuriant than the biological metaphors with which they are sometimes entwined. Since there are more varieties of proto-scientific economic theory that you can shake a stick at, we shall proceed by erecting some basic taxonomies that will help to guide us through the underworld of unorthodox economcs, which are represented by the two books here under review. The first distinction to be made is between those who literally believe that energy is identical to economic value, and those who regard the physics merely as a metaphorical resource and a cornucopia of ready-made mathematical models. We shall dub the former group the neo-energeticists, and the latter group the neo-simulators. The neoenergeticists may then be sub-divided into three separate categories: (1) those who never venture beyond the postulation of a crude identity of
51Â citations
TL;DR: Ellerman et al. as mentioned in this paper proposed a theory that integrates the labor theory of property and democratic theory into a Kantian framework, which is based on the generalization or universality principle of Kant's categorical imperative.
Abstract: Normative ethical theories are usually divided into two broad categories: (A) utilitarian theories, and (B) rights-based (or deontological) theories. Bergson-Samuelson welfare economics is a well-known example of a utilitarian normative economic theory [Bergson 1966; Samuelson 1972]. In Samuelson's memorable phrase, "The cash value of a doctrine is in its vulgarization," and the cash value of welfare economics is to be found in the wealth maximization of the Law and Economics approach to jurisprudence. Immanuel Kant and Ronald Dworkin are classical and modem examples of ethical and juridical thinkers using a rights-based approach [Dworkin 1978, 1985]. The labor theory of property and the democratic principle of self-government are rights-based theories with direct economic implications when applied to production [Ellerman 1984, 1985, 1986]. The theory sketched here integrates the labor theory of property and democratic theory into a Kantian framework. There are at least two non-equivalent versions of "the" categorical imperative found in Kant's writings. The first version is the generalization or universality principle: "Act only on that maxim through which you can at the same time will that it should become a universal law" [Kant 1964, p. 88]. The second version is the personhood principle: "Act in such a way that you always treat humanity, whether in your own
41Â citations
38Â citations
TL;DR: In this article, an Institutional Analysis of Corporate Power is presented, with a focus on the role of corporate power in economic decision-making, and an analysis of the relationship between the two.
Abstract: (1988). An Institutional Analysis of Corporate Power. Journal of Economic Issues: Vol. 22, No. 1, pp. 79-111.
TL;DR: The Economics of Michal Kalecki Journal of Economic Issues: Vol 22, No 1, pp 287-291 as mentioned in this paper, was published in 1988, and is available from Amazon.
Abstract: (1988) The Economics of Michal Kalecki Journal of Economic Issues: Vol 22, No 1, pp 287-291
TL;DR: In this paper, the authors present, expand, and refine the author's introductory work on values, beliefs, and attitudes for the social fabric matrix and digraph system, and define three of the matrix's components.
Abstract: Yngve Ramstad has recently inquired about how to define the components of the social fabric matrix and digraph system [Ramstad 1986; Hayden 1982a, 1982b]. To answer that question with regard to three of the matrix's components is the purpose of this article. The article will present, expand, and refine the author's introductory work on values, beliefs, and attitudes for the social fabric matrix [Hayden 1977, 1985]. There are numerous meanings the word "values" evokes among institutionalist readers; for examples: social value, instrumental valuing, technological values, and valuation. Those concepts are concerned with "what ought to be," while the definition of values set out below is intended to describe "what is."
TL;DR: In this article, New Technology and Culture Change in Traditional Societies: Journal of Economic Issues: Vol. 22, No. 2, pp. 493-498, 1989.
Abstract: (1988). New Technology and Culture Change in Traditional Societies. Journal of Economic Issues: Vol. 22, No. 2, pp. 493-498.
TL;DR: In this paper, a brief description of the dichotomy is given, and several important corollary tenets are presented, along with a discussion of the relationship between the two concepts.
Abstract: This article is a descriptive and interpretative statement of a basic analytical tool of institutional economists-the dichotomy.' And, it is divided into two major sections: first, a brief description of the dichotomy is given; second, several important corollary tenets are presented.
TL;DR: In this paper, the effects of employee ownership and worker participation on productivity in the United States were investigated. But the authors focused on the lack of worker participation in employee-owned firms and found that most employees own less than a majority ownership stake.
Abstract: This article, which is a part of a larger comprehensive study of the effects of employee ownership and worker participation on productivity in the United States, focuses on and documents the lack of worker participation in employee-owned firms [Rooney 1987]. It is estimated that more than 7,000 U.S. firms covering some 10 million employees have some degree of employee ownership [Rosen, Klein and Young 1986, p. 15]. By employee ownership, we simply mean that most of the employees own some shares of stock in the company in which they work. While most employee-owned firms have less than a majority ownership stake, several hundred U.S. firms are majority emp10yeeowned, and are the target of this study.
TL;DR: A Research Agenda for Institutional Economics as discussed by the authors is a collection of papers published by the Institute of Economics and Business Sciences (IBEBS) since 1988. Journal of Economic Issues: Vol. 22, No. 4, pp. 983-1002.
Abstract: (1988). A Research Agenda for Institutional Economics. Journal of Economic Issues: Vol. 22, No. 4, pp. 983-1002.
TL;DR: In this article, the authors test the applicability of Minsky's financial fragility hypothesis to the U. S. consumer durables sector during the 1920s and show that it is appropriate for developed capitalist systems.
Abstract: Hyman Minsky's financial fragility hypothesis reflects the competitive pressures faced and decision-making criteria used by firms in a market economy characterized by business cycles [Minsky 1975, Chaps. 4-6; 1982b]. His firm is profitand growth-oriented, so that in the expansionary phase of the business cycle the firm invests in its own growth. Understanding that investment, expansion, is its key to future profits and continued existence, the firm is ready to commit funds to investment projects as long as the expected demand price of capital is at least equal to its supply price. The sources of these funds that finance such projects are the focus of Minsky's hypothesis. Since funds for internal finance are limited, external sources must be utilized. It is the preponderance of debt usage, the accumulation of balance sheet debt over time, and the resulting move towards financial fragility with which Minsky's hypothesis is concerned. Minsky has noted that this hypothesis is appropriate for developed capitalist systems [Minsky 1 982a, pp. 15-48]. It is the task of this article to test its relevance in the U. S. consumer durables sector during the 1920s. The first section of the article will briefly describe Minsky's financial
TL;DR: The Minsky-Simons Connection: A Neglected Thread in the History of Economic Thought as discussed by the authors was a seminal work in the history of economic thought, focusing on the relationship between Minsky and Simons.
Abstract: (1988). The Minsky-Simons Connection: A Neglected Thread in the History of Economic Thought. Journal of Economic Issues: Vol. 22, No. 2, pp. 533-544.
TL;DR: Only if it is assumed that the division of labor and distribution of goods and services are structured to benefit the male head of the family can various trends be explained, including the low relative income of women compared to men, the increase in female labor force participation without a corresponding increase in household work by men.
Abstract: The authors present a case for including the patriarchal model into the analysis of female labor force participation in the United States. They argue that only if it is assumed that the division of labor and distribution of goods and services are structured to benefit the male head of the family can various trends be explained including the low relative income of women compared to men the increase in female labor force participation without a corresponding increase in household work by men and the increasing number of divorces initiated by women despite the fact that divorce increases female poverty.
TL;DR: The increasing importance of financial capital in the U.S. economy was discussed in this article, where the authors argue that financial capital is essential to the economic health of the United States.
Abstract: (1988). The Increasing Importance of Financial Capital in the U.S. Economy. Journal of Economic Issues: Vol. 22, No. 2, pp. 581-588.
TL;DR: In this article, the authors present a survey of the methodological aspects of the Radical Institutionalism: Methodological Aspects of the Radical Tradition (RIT). But they do not discuss the relationship between the two.
Abstract: (1988). Radical Institutionalism: Methodological Aspects of the Radical Tradition. Journal of Economic Issues: Vol. 22, No. 3, pp. 667-674.
TL;DR: In this paper, an examination of recent Canadian cyclical fluctuations is presented, focusing on the systemic viability and credit collapse of the Canadian financial system, with a focus on credit default swaps.
Abstract: (1988). Systemic Viability and Credit Crunches: An Examination of Recent Canadian Cyclical Fluctuations. Journal of Economic Issues: Vol. 22, No. 1, pp. 49-77.
TL;DR: This article argued that the "mainstream" answer to this question has changed dramatically over the past few decades-as indeed, labor economics as a subject area has changed, and that mainstream labor economics has largely deserted its institutional roots and has become an area for applied micro-economic theorizing and sophisticated econometrics.
Abstract: Unemployment is one of the outcomes that individuals experience in the labor market. Economics is a discipline that usually seeks to explain individual outcomes as the result of the choices individuals make subject to the constraints they face. Some economic explanations of unemployment, have, therefore, chosen to view unemployment as arising from voluntary individual adjustments of labor supply, given wage rates-but others view unemployment as directly reflecting constraints on the quantity of labor that individuals can supply. Although economists may agree on the importance of "choice subject to constraint," they disagree on the fundamental question "Is the outcome of unemployment primarily to be explained by individual choices or by the quantity constraints to which those choices are subject?" The major theme of this essay is that the "mainstream" answer to this question has changed dramatically over the past few decades-as, indeed, labor economics as a subject area has changed. As P. J. McNulty and others have noted, mainstream labor economics has largely deserted its institutional roots and has become an area for applied micro-economic theorizing and sophisticated econometrics [McNulty 19801. Instead of inductive analysis based (at least partially) on primary