Showing papers on "Schools of economic thought published in 1992"

The analytics of uncertainty and information

Abstract: Economists have always recognised that human endeavours are constrained by our limited and uncertain knowledge, but only recently has an accepted theory of uncertainty and information evolved. This theory has turned out to have surprisingly practical applications: for example in analysing stock market returns, in evaluating accident prevention measures, and in assessing patent and copyright laws. This book presents these intellectual advances in readable form for the first time. It unifies many important but partial results into a satisfying single picture, making it clear how the economics of uncertainty and information generalises and extends standard economic analysis. Part One of the volume covers the economics of uncertainty: how each person adapts to a given fixed state of knowledge by making an optimal choice among the immediate 'terminal' actions available. These choices in turn determine the overall market equilibrium reflecting the social distribution of risk bearing. In Part Two, covering the economics of information, the state of knowledge is no longer held fixed. Instead, individuals can to a greater or lesser extent overcome their ignorance by 'informational' actions. The text also addresses at appropriate points many specific topics such as insurance, the Capital Asset Pricing model, auctions, deterrence of entry, and research and invention.

Sunk costs and market structure : price competition, advertising, and the evolution of concentration

Abstract: Sunk Costs and Market Structure bridges the gap between the new generation of game theoretic models that has dominated the industrial organization literature over the past ten years and the traditional empirical agenda of the subject as embodied in the structure-conduct-performance paradigm developed by Joe S. Bain and his successors.The new theoretical literature has engendered pessimism in recent years because many results turn out to depend on detailed features of the market that are difficult to measure. This has led many observers to argue that the new literature offers little basis for the kind of cross-industry studies that have formed the empirical base of the subject since the 1950s. Using current game-theoretic methods, John Sutton reexamines the traditional agenda. He argues that despite the "delicate" nature of many results, there are theoretical predictions that turn out to be extremely robust to reasonable changes in model specification, and these results should be taken into account when looking for statistical regularities across a broad spectrum of different industries.Sutton draws on a wide range of historical sources and on an intensive program of company interviews to assemble a matrix of industry studies relating to twenty markets within the food and drink sector, in six countries - France, the Federal Republic of Germany, Italy, Japan, the United Kingdom and the United States. He combines theory, econometric evidence, and a detailed account of the various patterns of evolution of structure found in these industries in a rigorous evaluation of the strengths and limitations of a game-theoretic approach in explaining the evolution of industrial structure.John Sutton is Professor of Economics at the London School of Economics.

Foundations of Post-Keynesian Economic Analysis

Abstract: This innovative book demonstrates that it is possible to construct a coherent alternative to neoclassical economics based on the contributions of post-Keynesian and Kaleckian economists. It identifies elements from the non-orthodox traditions, in particular from the neo-Ricardian school, that can be welded into a convincing alternative theoretical framework.

The Meaning of the Market Process : Essays in the Development of Modern Austrian Economics

Abstract: Part I: The Market Process Approach 1. Market Process Theory: In Defence of the Austrian Middle Ground 2. The Meaning of the Market Process Part II: The Emergence of the Austrian View 3. The Austrian School of Economics 4. Carl Menger and the Subjectivist Tradition in Economics 5. Menger, Classical Liberalism and the Austrian School of Economics 6. The Economic Calculation Debate: Lessons for Austrians 7. Ludwig von Mises and Friedrich von Hayek: The Modern Extension of Austrian Subjectivism Part III: Some New Explorations in the Austrian Approach 8. Prices, the Communication of Knowledge, and the Discovery Process 9. Economic Planning and the Knowledge Problem 10. Knowledge Problems and their Solutions: Some Relevant Distinctions 11. Welfare Economics: A modern Austrian Perspective Part IV: Some Related Issues Emerging from the Austrian Approach 12. Self-Interest and the New Bashing of Economics 13. Discovery, Private Property, and the Theory of Justice

Economics, Bounded Rationality and the Cognitive Revolution

Abstract: Part 1 Bounded rationality: discussion introductory comment colloquium with H.A. Simon. Part 2 Herbert Simon reprints: rational choice and the structure of the environment (1956) thinking by comuters (1966) information processing in computers and man (1964) scientific discovery as problem solving (1988). Part 3 New papers: subejective rationality and the explanation of social behaviour, Raymond Boudon organizational learning, problem solving and the division of labour, Massimo Egidi cognitive constraints of economic rationality, Ricardo Viale implications for economics, Robin Marris.

Small Business Economics: A Global Perspective

Abstract: (1992). Small Business Economics: A Global Perspective. Challenge: Vol. 35, No. 6, pp. 38-44.

Individual rights revisited

Abstract: Since Amartya Sen's contribution on the impossibility of a Paretian liberal, his formulation of libertarian rights has been under debate. In this paper, the authors highlight some important strands in this debate, and achieve some conceptual clarification of the different and often incompatible views of individual rights. They demonstrate in terms of a counterexample and general reasoning that Sen's concept can, more often than not, be inconsistent with our intuitive view of rights and fails to capture important categories of rights. An alternative formulation in terms of game form is introduced and its relative merit vis-a-vis Sen's formulation is discussed. Copyright 1992 by The London School of Economics and Political Science.

Recent applications of economic theory in Information Technology research

Abstract: Academicians and practitioners are becoming increasingly interested in the economics of Information Technology (IT). In part, this interest stems from the increased role that IT now plays in the strategic thinking of most large organizations, and from the significant dollar costs expended by these organizations on IT. Naturally enough, researchers are turning to economics as a reference discipline in their attempt to answer questions concerning both the value added by IT and the true cost of providing IT resources. This increased interest in the economics of IT is manifested in the application of a number of aspects of economic theory in recent information systems research, leading to results that have appeared in a wide variety of publication outlets This article reviews this work and provides a systematic categorization as a first step in establishing a common research tradition, and to serve as an introduction for researchers beginning work in this area. Six areas of economic theory are represented: Information economics, production economics, economic models of organizational performance, industrial organization, institutional economics (agency theory and transaction cost theory), and macroeconomic studies of IT impact. For each of these areas, recent work is reviewed and suggestions for future research are provided.

The Economics of European Integration (Theory, Practice, Policy)

Abstract: Part I General issues: basic concepts and structures short history institutions. Part II Customs union: customs union theory goods services. Part III Common market: common market theory labour capital. Part IV Sectors of activity: agriculture manufacturing energy services transport. Part V Conditions for balanced growth: allocation, internal market policies stabilization - towards a monetary union redistribution - cohesion policies external relations. Part VI Conclusion: evaluation and outlook. Annexes.

Feminism and Anti-Feminism in Early Economic Thought

Abstract: Evaluates the place of women in the development of the neo-classical school of economics. It traces the origins of the school's approach to women and exposes the bias in methodology and discourse which has characterised the school's treatment of women and their place in the capitalist economy.

The post-Keynesian approach to economics : an alternative analysis of economic theory and policy

Abstract: This major book provides a coherent critique of the neo-classical synthesis together with a comprehensive and systematic introduction to the Post-Keynesian alternatives. Professor Arestis demonstrates that Post-Keynesian economics offers a challenge to conventional neo-classsical economics. He argues that although Post-Keynesianism is not problem-free, it neverless offers a more satisfactory explanation of "real" phenomena. The Post-Keynesian Approach to Economics reveals the microfoundations of post-Keynesian economics and describes how these theoretical propositions link up with the macrofoundations. In doing so, it demonstrates that money pricing capital accumulation, growth and distribution are linked very closely together. The economic policy implications are discussed extensively.

Towards a New Economics

Abstract: In the first part of the book, Professor Boulding pushes economics towards a more evolutionary type of theory, towards a greater interest in the real world and towards some fairly specific theoretical positions. He stresses the importance of positive-feedback as well as equilibrium processes. The second part focuses on the grants economy, that is the study of the economics of one-way transfers. In part three, he turns his attention to international economic relations particularly the economics of conflict in unilateral national defence. The final part is on ecological systems, stressing that economies are essentially an eco-system of commodities, part of the total eco-system of the world, which is undergoing a constant and irreversible evolutionary change.

Research in the History of Economic Thought and Methodology

Abstract: Part of a series which offers contemporary work and research in the areas of methodology and the history of economic thought.

The Inexact and Separate Science of Economics

Abstract: This book offers a comprehensive overview of the structure, strategy and methods of assessment of orthodox theoretical economics. In Part I Professor Hausman explains how economists theorise, emphasising the essential underlying commitment of economists to a vision of economics as a separate science. In Part II he defends the view that the basic axioms of economics are 'inexact' since they deal only with the 'major' causes; unlike most writers on economic methodology, the author argues that it is the rules that economists espouse rather than their practice that is at fault. Part III links the conception of economics as a separate science to the fact that economic theories offer reasons and justifications for human actions, not just their causes. With its lengthy appendix introducing relevant issues in philosophy of science, this book is a major addition to philosophy of economics and of social science.

Retrospectives The Lost Art of Economics

Abstract: Economists generally divide economics into two distinct categories—positive and normative—but how applied economics fits within these categories is unclear. This paper argues that applied economics belongs in neither normative nor positive economics; instead it belongs in a third category—the art of economics. Currently, many economists are trying to use a methodology appropriate for positive economics to guide their applied work, work that properly belongs in the art of economics. This three-part distinction is not mine, but dates back to a classic book, The Scope and Method of Political Economy (1891) by John Neville Keynes. In his book, Keynes argued that economists' failure to distinguish the art of economics as a separate branch from positive and normative economics would lead to serious problems. One hundred years later, he has turned out to be clairvoyant.

The Gaia atlas of green economics

Abstract: Every day, all over the world, billions of people play their part in humanity's global growth economy. Money is the god, material wealth the principal virtue, and market economics the ruler of our times. But this economics of consumption is full of hidden costs. It is drawing us ever deeper into social, ecological, and economic crisis. We are trading the health of the Earth and our communities for freeways and the free market. This pioneering work in "green" economics shows us a way out of this destructive obsession with economic growth. It explores a new concept of wealth and wealth creation; it describes a new economics synthesis between the market, state, families, and communities; it sets out what governments and people can do to build a sustainable society - to create prosperity and a fairer world in a healthy environment. Paul Ekins is one of the foremost thinkers in a new field, working to bring economics into line with the realities of our time and show people how economics affects all our lives. Mayer Hillman and Robert Hutchison contribute their specialist knowledge of social policy issues.

Growth, Political Instability, and the Defense Burden

Abstract: The author develops and tests a model to examine the economic effects of political instability and military expenditure. Defense plays three important roles in the model: (1) it provides insurance against political instability; (2) it augments the human capital stock by training the labour force; but (3) it comes at the expense of consumption. The resulting theory predicts that increased political instability or increased defense can inhibit economic growth. Using panel data, the author finds that increases in political instability do decrease growth while increases in defense do decrease political instability. I also find that increases in defense have a direct negative effect on growth, although the relation is weak. Copyright 1996 by The London School of Economics and Political Science.

Towards a New Economics: Critical Essays on Ecology, Distribution, and Other Themes

Abstract: Part 1 Introduction: a biographical autobiography. Part 2 Towards a new economics: allocation and distribution space as a factor of production puzzles over distribution what went wrong with economics? the economics of pride and shame appropriate methodologies for the study of the economy (published in Polish only) the implications of macrodistribution for personal distribution taxonomy as a source of error. Part 3 The grants economy: innovation and the grant economy pathologies of the public grants economy a second look at "Progress and Poverty". Part 4 International economic relations: international economic relations the role of conflict in the dynamics of society an economic assessment of unilateral national defense unilateral national defense organizations - an economic analysis of non-economic structures the role of organized nonviolence in achieving stable peace. Part 5 Ecological economics: the unimportance of energy development as evolution towards human betterment cybernetics in the evolutionary process regions of time population factors in development economics.

Science, Rationality, and Neoclassical Economics

Abstract: This work examines the claim to scienific status made by supporters and practitioners of neoclassical economics. The approach taken is that of the history and philosophy of science. Analysis points to the conclusion that theories of economic choice are necessarily normative, essentially because of the nature of human behavior.

Understanding Unemployment : New Perspectives on Active Labour Market Policies

Abstract: Eithne McLaughlin, University of Belfast Simon Deakin, University of Cambridge Andrew Dilnot, Institute for Ficscal Studies David Fryer, University of Stirling Catherine Hakim, Richard Jackman, London School of Economics Malcolm Maguire, Leicester University Hilary Metcalf, Policy Sudies Unit Christopher Pissarides, London School of Economics Alan Townsend, University of Durham Johnathan Wadsworth, London School of Economics Michael White, Policy Studies Institute Frank Wilkinson, University of Cambridge.

Ideology in Economics

Abstract: This chapter explores the sensitive issue of the degree to which economics is infused with ideology. It summarizes, interprets, and assesses the discussion of this question within economics from the 1950s to the mid-1970s.

The Political Economics Of Health Insurance Market Reform

Abstract: Our country’s system for financing health care cannot be fundamentally reformed without significant compromise by all affected interest groups. Providers must yield on cost containment; consumers must accept restrictions in benefits; personal injury lawyers must tolerate tort reform; employers must pay either higher employee compensation or taxes; and private insurers must change the way they do business. So far, the insurance industry is the only one of these groups to come forward with an unconditional offer to make a significant concession. The Health Insurance Association of America (HIAA) and the National Association of Insurance Commissioners (NAIC) have drafted model legislation that imposes extensive restrictions on the pricing, marketing, underwriting, and design of small-group policies. These reforms are also endorsed by the Blue Cross and Blue Shield Association. It is remarkable for any industry to invite such heavy regulation of itself. It is even more surprising, given the wide divergence of opinion among various interest groups on how best to carry out other aspects of health financing reform, that the basic structure of small-group market reform has broad political support in states and in federal policy circles. Hence, it is instructive to examine the social dynamic that prompted the industry to propose these reforms and that is influencing their likely acceptance by various political constituencies. This Commentary synthesizes a political and economic analysis of the insurance industry’s reform proposals based on interviews with and documents from a wide variety of industry, governmental, and interest-group sources.

Essays in the History of Heterodox Political Economy

Abstract: The scope of economics historically considered the history of economic thought as intellectual history the state, law and economic organization a centenary reconsideration of Bellamy's "Looking Backward" thorstein veblen, heterodox economist, in retrospect the firing of E.A. Ross from Stanford University - injustice compounded by deception? Edwin E. Witte's concept of the role of government in the economy the economy as a system of power and its legal bases - the legal economics of Robert Lee Hale legal realism and the burden of symbolism - the correspondence of Thurman Arnold Galbraith on economics as a system of professional belief Gardiner C means's institutional and post Keynesian economics in praise of Joan Robinson - economics as social control.