F. A. Hayek's realistic economic theory has been replaced by the formalistic use of equlibrium models that bear little resemblance to reality. These models are as serviceable to the right as to the left: they allow the economist either to condemn capitalism for failing to measure up to the model of perfect competition, or to praise capitalism as a utopia of perfect knowledge and rational expectations. Hayek, by contrast, used equilibrium to show that while capitalism is not perfect, it contains (...) error‐correcting institutions that bring it closer to perfection than is intuitively apparent. (shrink)

F. A. Hayek's realistic economic theory has been replaced by the formalistic use of equlibrium models that bear little resemblance to reality. These models are as serviceable to the right as to the left: they allow the economist either to condemn capitalism for failing to measure up to the model of perfect competition, or to praise capitalism as a utopia of perfect knowledge and rational expectations. Hayek, by contrast, used equilibrium to show that while capitalism is not perfect, it contains (...) error‐correcting institutions that bring it closer to perfection than is intuitively apparent. (shrink)

Do markets generate a “just” wage? The answer to this question will depend upon the particular theory of the market that the political economist employs. When comparing actual labor markets with the neoclassical theory of competitive equilibrium as its normative benchmark, Joseph Heath argues that factor pricing is orthogonal to normative issues such as distributive justice. We argue that Heath’s conclusion, though not invalid, follows from a similar normative benchmark of equilibrium, one that evaluates factor pricing without taking into account (...) the institutional conditions within which factor prices emerge. Though indeed classical political economists and early neoclassical economists failed to deliver an explicit theory of distributive justice, what Heath overlooks is that implicit to their understanding of the market process was an institutional theory of distributive justice. (shrink)

Following the October Revolution of 1917 the Bolsheviks embarked upon a series of initiatives in order to bring about a socialist economic order. Traditional accounts of these events?"War Communism?; and the New Economic Policy?are deficient in two respects. First, they do not consider the policy implications of early twentieth?century Marxism. Second, they do not appreciate the economic coordination problems such policies would, and did, encounter. As a result, the standard account of early Soviet socialism is distorted. This paper attempts to (...) rectify these deficiencies by discussing the Bolshevisks? own assessments of their purposes and exploring the consequences of their policies in the period 1918?1921. (shrink)

This volume critically explore and extend Hayek's Nobel Prize-winning work on knowledge and social interconnectedness from the disciplines of law, economics, philosophy, anthropology, political science, and history. Hayek's insights about knowledge become even more important once it is recognized that nothing in the social world occurs in isolation. There is no such thing as a distinct economic, political, or social sphere--they are inextricably intertwined. Given the range of both Hayek's work and the contributing authors' perspectives, the range of topics covered (...) in this volume is extraordinarily wide, running the gamut from immigration, to white supremacy, to ancient agricultural practices, to the nature of what it means to be free. (shrink)

Hayek argued that the central question of economics is the coordination problem: How does the spontaneous interaction of many purposeful individuals, each having dispersed bits of subjective knowledge, generate an order in which the actors' subjective data are coordinated in a way that enables them to dovetail their plans and activities successfully? In attempting to solve this problem, Hayek outlined an approach to economic theorizing that takes seriously the limited, subjective nature of human knowledge. Despite purporting to have appropriated Hayek's (...) thought by acknowledging the information-transmitting role of prices, mainstream economists have missed Hayek's point. The predominant tool of formal economics—equilibrium analysis—begins by assuming the data held by actors to have been pre-reconciled, and so evades the problem to be solved. Even the more advanced tools for modeling knowledge in economic analysis, such as the economics of information, assume away either the subjectivism of knowledge and expectations (rendering the coordination of beliefs and plans a trivial matter) or the frictions and “imperfections” of reality (rendering the coordination problem indeterminate). (shrink)

Socialism is strictly “impossible.” Its impracticability is not, as Bryan Caplan has suggested, a “quantitative” matter, nor does he show that real‐world socialism's incentive problems outweighed its informational ones. Caplan's criticism of Ludwig von Mises's critique of the “possibility” of socialism fails to appreciate what he meant by “socialism” and misunderstands Mises's argument about economic calculation. History, too, suggests that socialism's informational deficiency was the most significant problem facing those who tried to implement socialism.

Economic formalism crowds out the analysis of change and adjustments to change under capitalism. The style of analytical narrative that was practiced by the first generation of neoclassical economists, in contrast, is more productive of genuine economic understanding. Despite Daniel Haus‐man's challenging argument to the contrary, I maintain that Joseph Stiglitz's work is formalist at its core. While I agree with Robert Heilbroner's critique of contemporary economics, there is a limited sense in which nonformalist economics can rely on universalistic assumptions. (...) And Thomas Mayer has provided useful guidelines for focusing nonformalist analysis on real‐world economic problems. (shrink)

ECONOMICS AND INSTITUTIONS: A MANIFESTO FOR MODERN INSTITUTIONAL ECONOMICS by Geoffrey Hodgson Philadelphia: University of Pennsylvania Press, 1988. 365pp., $39.95 Traditional institutional economics argued that the methodological individualism of both classical and neoclassical economics was grounded in a false conception of human nature and a pre?scientific understanding of economic life. Geoffrey Hodgson has provided a restatement of this position and extended the institutionalist critique to modern developments within economics at both a positive and normative level. In the course of doing (...) so, Hodgson both draws on and differs from developments within modem Austrian economics. It is argued that Hodgson misunderstands key aspects of the Austrian project and as a result his indiscriminate criticisms of methodological individualism and classical liberalism are not convincing. (shrink)

Abstract:This essay argues that liberty generates progress via the generalized increasing returns to commercial activity. These increasing returns to expanding commercial activity follow from the gradual, cumulative process of institutionalizing particular liberties. As a society adopts an institutional framework from accumulated liberties, there is greater scope for productive specialization and social cooperation under the division of labor. Greater scope for market exchange also delivers social norms and commercial values that tolerate experimentation and innovation. Taken together, the accumulation and institutionalization of (...) liberties gives rise to generalized increasing returns to commercial activity. It is through this cumulative process that the creative powers of a free civilization are unleashed, delivering societies from poverty and subjugation. (shrink)

Socialism is strictly “impossible.” Its impracticability is not, as Bryan Caplan has suggested, a “quantitative” matter, nor does he show that real‐world socialism's incentive problems outweighed its informational ones. Caplan's criticism of Ludwig von Mises's critique of the “possibility” of socialism fails to appreciate what he meant by “socialism” and misunderstands Mises's argument about economic calculation. History, too, suggests that socialism's informational deficiency was the most significant problem facing those who tried to implement socialism.

The Austrian School of Economics is an intellectual tradition in economics and political economy dating back to Carl Menger in the late-19th century. Menger stressed the subjective nature of value in the individual decision calculus. Individual choices are indeed made on the margin, but the evaluations of rank ordering of ends sought in the act of choice are subjective to individual chooser. For Menger, the economic calculus was about scarce means being deployed to pursue an individual's highest valued ends. The (...) act of choice is guided by subjective assessments of the individual, and is open ended as the individual is constantly discovering what ends to pursue, and learning the most effective way to use the means available to satisfy those ends. This school of economic thinking spread outside of Austria to the rest of Europe and the United States in the early-20th century and continued to develop and gain followers, establishing itself as a major stream of heterodox economics. The Oxford Handbook of Austrian Economics provides an overview of this school and its theories. The various contributions discussed in this book all reflect a tension between the Austrian School's orthodox argumentative structure and its addressing of a heterodox problem situations. The Austrian economists from the founders to today seek to derive the invisible hand theorem from the rational choice postulate via institutional analysis in a persistent and consistent manner. Scholars and students working in the field of History of Economic Thought, those following heterodox approaches, and those both familiar with the Austrian School or looking to learn more will find much to learn in this comprehensive volume. (shrink)

This book review of How Bad Writing Destroyed the World: Ayn Rand and the Literary Origins of the Financial Crisis by Adam Weiner finds that the author's indictment of Rand and the alleged effects that her ideas had on generating the 2008 financial crisis exhibits no knowledge of the relevant scientific or historical literature on economic policy.

The paper distinguishes two types of entrepreneurial activity in terms of their institutionally relevant contexts. Type 1 entrepreneurship refers to catallactic activity in which coordinating mechanisms, operating via the exchange of property rights, generates market prices. We identify Type 2 entrepreneurship with noncatallactic processes.The paper argues that scientific activity, despite exhibiting characteristics congenial to the economic way of thinking, cannot be generally studied as a catallactic process under prevailing institutional arrangements. Recent changes in the institutional context of science, however, suggest (...) a widening scope for treating science as a market activity.Cet article fait la distinction entre deux types d’activité entrepreneuriale suivant les contextes institutionnels où ils apparaissent. Le premier type d’activité entrepreneuriale s’inscrit dans un cadre catallactique où les mécanismes de coordination opérant à travers l’échange des droits de propriété génèrent les prix marchands. Le second type d’activité entrepreneuriale que nous identifions relève de processus non catallactiques. L’article soutient que, même si elle présente des caractéristiques qui pourraient relever de la pensée économique, l’activité scientifique telle qu’elle est pratiquée dans les conditions institutionnelles actuelles, ne peut en général pas être étudiée comme un processus catallactique.Cependant, les changements récents dans le contexte institutionnel de la science suggèrent la possibilité grandissante d’envisager la science comme une activité marchande. (shrink)

ABSTRACTSchumpeter’s theory of socialism pivots on his response to Ludwig von Mises’s claim that rational economic calculation is “impossible” in a socialist economy. Mises held that because socialism eliminates market prices for the means of production, it is impossible under socialism to know the relative scarcities of productive inputs, and thus to determine rationally which of any number of technologically feasible production projects to pursue. Schumpeter appears to assume away Mises’s epistemic concerns about socialism by contending that it is theoretically (...) possible to determine which goods should be produced in a socialist economy if all the relevant data are known—which begs the question Mises had asked. Did Schumpeter really commit such an elementary error of interpretation? Or was the appearance of doing so part of his attempt to communicate to the reader of Capitalism, Socialism and Democracy a host of reservations about the likely consequences of socialism in practice, even as he ostentatiously praised its feasibility in principle? (shrink)

Boettke and Butkevich argue that a vibrant society is an entrepreneurial society. Entrepreneur- ial effectiveness is a function of the free movement of economic actions – their alertness to opportunities for mutual gain, and their sense of when and where to enter and exit a market. Boettke and Butkevich focus not so much on the behavior of entrepreneurship, but the institutional conditions within which entrepreneurship takes place. They argue that policies which hinder the above ground legitimate expression of (...) entrepreneurial discovery must be eliminated for the further development of the Russian economy towards a market system and away from the current “virtual economy”. Institutions of governance must be established which reduce political uncertainty and encourage individuals to be willing to bet on their ideas and find the financing to bring those bets to life.Boettke et Butkevich suggèrent que l’activité entrepreneuriale est la force motrice d’une société. L’efficacité de l’activité entrepreneuriale dépend de la libre circulation des acteurs économiques – leur vigilance à l’égard des opportunités de gains mutuels, et leur jugement concernant les moment et lieu opportuns pour entrer sur un marché ou en sortir. Les auteurs mettent l’accent, pas tant sur le comportement des entrepreneurs, que sur les aménagements institutionnels à l’intérieur desquels l’activité entrepreneuriale a lieu. Ils considèrent que les politiques qui font obstacle aux manifestations légitimes de découverte entrepreneuriale doivent être éliminées pour accompagner le développement de l’économie russe vers une économie de marché, distincte de l’actuelle “économie virtuelle”. Des institutions de gouvernance qui réduisent l’incertitude politique doivent être établies. Ces institutions devraient aussi encourager les individus à parier sur leurs idées et à trouver des sources de financement pour instaurer ces idées. (shrink)

While markets are all around us, not all markets are the same. Markets come in a variety of colors based on the legality of activities in the specific market. As such, there is no market economy per se, but instead various shades of markets. The different shades of markets that are evidenced in practice directly depend on the institutional environment that makes certain activities legal or illegal. Shifts in the institutional environment are a result of entrepreneurial activity over the rules (...) of the game. The rules of the game and resulting shade of the market in turn impact entrepreneurs acting within those rules and hence economic development or the lack thereof.L’économie de marché est en réalité une économie des marchés. La variété des marchés s’explique par la légalité des activités sur chacun d’entre eux. Ainsi il n’existe pas une économie de marché en soi, mais plutôt plusieurs formes de marché. Ces formes manifestes de marché sont fonction de l’environnement institutionnel qui rend certaines activités légales ou illégales. Les changements de l’environnement institutionnel sont le résultat de l’activité entrepreneuriale en dehors des règles du jeu. Les règles du jeu ainsi que la forme du marché qui leur est associée influencent à leur tour les actions entrepreneuriales et donc le développement économique. (shrink)

Acknowledgments 1. Culture Is Essential 2. Culture Exists 3. Culture Evolves 4. Culture Is an Adaptation 5. Culture Is Maladaptive 6. Culture and Genes Coevolve 7. Nothing about Culture Makes Sense except in the Light of Evolution.

The norm of assertion, to be in force, is a social norm. What is the content of our social norm of assertion? Various linguistic arguments purport to show that to assert is to represent oneself as knowing. But to represent oneself as knowing does not entail that assertion is governed by a knowledge norm. At best these linguistic arguments provide indirect support for a knowledge norm. Furthermore, there are alternative, non-normative explanations for the linguistic data (as in recent work from (...) Van Elswyk). Direct arguments would rely on normative judgments about the permissibility or impermissibility of assertions with and without the speaker knowing the content asserted. John Turri's work experimental results purport to show that our norm of assertion is factive, and probably knowledge. But as a number of recent experimentalists (Kneer, Reuter and Broessel, Marsili and Wiegmann) have shown, Turri's results rely on the problemmatic use of 'should' as in 'Maria should assert that she owns a 1990 watch.' Correcting for this, these experimentalists provide strong evidence that our norm of assertion is not factive. The standard reply to evidence like this from the assertion of unlucky falsehoods is the excuse maneuver. But Marsili and Wiegmann, following Turri's protocol for testing for excuse validation, show that participants who judge that assertions unlucky falsehoods are permissible are not guilty of excuse validation. Given our current understanding of the experimental evidence, knowledge is not our norm of assertion. (shrink)

This article outlines a training activity that can enable both business and governmental professionals to translate the principles in a code of ethics to a specific list of company-related behaviors ranging from highly ethical to highly unethical. It also explores how this list can become a concrete model to follow in making ethical decisions. The article begins with a discussion as to what will improve ethical decision making in business and government. This leads us to explore the factors that can (...) most easily lead to improvement, namely a comprehensive code of conduct and employee training. From there we look at the Critical Incident Technique as a training strategy that has the potential for identifying those behaviors that distinguish really outstanding behaviors from those that go by the book, and can be used to encourage more independent thinking and to set expectations for future decisions. If employees are given the skills and examples that will enable them to make better decisions, they can apply them to any situation. (shrink)

Advances in molecular biological research in the latter half of the twentieth century have made the story of the gene vastly complicated: the more we learn about genes, the less sure we are of what a gene really is. Knowledge about the structure and functioning of genes abounds, but the gene has also become curiously intangible. This collection of essays renews the question: what are genes? Philosophers, historians and working scientists re-evaluate the question in this volume, treating the gene as (...) a focal point of interdisciplinary and international research. It will be of interest to professionals and students in the philosophy and history of science, genetics and molecular biology. (shrink)

Although much has been written about the vigorous debates over science and religion in the Victorian era, little attention has been paid to their continuing importance in early twentieth-century Britain. Reconciling Science and Religion provides a comprehensive survey of the interplay between British science and religion from the late nineteenth century to World War II. Peter J. Bowler argues that unlike the United States, where a strong fundamentalist opposition to evolutionism developed in the 1920s (most famously expressed in the (...) Scopes "monkey trial" of 1925), in Britain there was a concerted effort to reconcile science and religion. Intellectually conservative scientists championed the reconciliation and were supported by liberal theologians in the Free Churches and the Church of England, especially the Anglican "Modernists." Popular writers such as Julian Huxley and George Bernard Shaw sought to create a non-Christian religion similar in some respects to the Modernist position. Younger scientists and secularists—including Rationalists such as H. G. Wells and the Marxists—tended to oppose these efforts, as did conservative Christians, who saw the liberal position as a betrayal of the true spirit of their religion. With the increased social tensions of the 1930s, as the churches moved toward a neo-orthodoxy unfriendly to natural theology and biologists adopted the "Modern Synthesis" of genetics and evolutionary theory, the proposed reconciliation fell apart. Because the tensions between science and religion—and efforts at reconciling the two—are still very much with us today, Bowler's book will be important for everyone interested in these issues. Contents: Illustrations Preface Introduction: A Legacy of Conflict? Confrontation, Cooperation, or Coexistence? Victorian Background Science and Religion in the New Century Part One: The Sciences and Religion 1. The Religion of Scientists Changing Patterns of Belief Scientists and Christianity Scientists and Theism Method and Meaning Science and Values 2. Scientists against Superstition Science and Rationalism Religion without Revelation Marxists and Other Radicals Science, Religion, and the History of Science 3. Physics and Cosmology Ether and Spirit The New Physics The Earth and the Universe 4. Evolution and the New Natural Theology Science and Creation Evolution and Progress The Role of Lamarckism Darwinism Revived 5. Matter, Life, and Mind The Origin of Life Vitalism and Organicism Mind and Body Psychology and Religion Part Two: The Churches and Science 6. The Churches in the New Century The Challenge of the New The Churches’ Response 7. The New Theology in the Free Churches Precursors of the New Theology Campbell and the New Theology Modernism in the Free Churches 8. Anglican Modernism Modernism and the New Natural Theology Charles F. D’Arcy E. W. Barnes W. R. Inge Charles Raven 9. The Reaction against Modernism Evangelicals against Evolution Liberal Catholicism The Menace of the New Psychology Science and Modern Life Theology in the Thirties Roman Catholicism Part Three: The Wider Debate 10. Science and Secularism Against Idealism Popular Rationalism The Social Reformers 11. Religion’s Defenders From Idealism to Spiritualism Creative and Emergent Evolution Evolution and the Human Spirit Progress through Struggle The Christian Response Epilogue Biographical Appendix Bibliography Index. (shrink)

Metaphysicians should pay attention to quantum mechanics. Why? Not because it provides definitive answers to many metaphysical questions-the theory itself is remarkably silent on the nature of the physical world, and the various interpretations of the theory on offer present conflicting ontological pictures. Rather, quantum mechanics is essential to the metaphysician because it reshapes standard metaphysical debates and opens up unforeseen new metaphysical possibilities. Even if quantum mechanics provides few clear answers, there are good reasons to think that any adequate (...) understanding of the quantum world will result in a radical reshaping of our classical world-view in some way or other. Whatever the world is like at the atomic scale, it is almost certainly not the swarm of particles pushed around by forces that is often presupposed. This book guides readers through the theory of quantum mechanics and its implications for metaphysics in a clear and accessible way. The theory and its various interpretations are presented with a minimum of technicality. The consequences of these interpretations for metaphysical debates concerning realism, indeterminacy, causation, determinism, holism, and individuality are explored in detail, stressing the novel form that the debates take given the empirical facts in the quantum domain. While quantum mechanics may not deliver unconditional pronouncements on these issues, the range of possibilities consistent with our knowledge of the empirical world is relatively small-and each possibility is metaphysically revisionary in some way. This book will appeal to researchers, students, and anybody else interested in how science informs our world-view. (shrink)

Much of what we believe we know, we know through the testimony of others. While there has been long-standing evidence that people are sensitive to the characteristics of the sources of testimony, for example in the context of persuasion, researchers have only recently begun to explore the wider implications of source reliability considerations for the nature of our beliefs. Likewise, much remains to be established concerning what factors influence source reliability. In this paper, we examine, both theoretically and empirically, the (...) implications of using message content as a cue to source reliability. We present a set of experiments examining the relationship between source information and message content in people's responses to simple communications. The results show that people spontaneously revise their beliefs in the reliability of the source on the basis of the expectedness of a source's claim and, conversely, adjust message impact by perceived reliability; hence source reliability and message content have a bi-directional relationship. The implications are discussed for a variety of psychological, philosophical and political issues such as belief polarization and dual-route models of persuasion. (shrink)

It is beyond the scope of this paper to describe in detail the rise to popularity of the emboîtement theories during the last decades of the seventeenth century.51 Eventually the theories did gain great influence, but some points emerging from the above discussion indicate that the rise to popularity was not, perhaps, quite as rapid as has sometimes been assumed.52 Although the earlier preformation theories were sometimes regarded as the ancestors of the later ideas,53 there was little intellectual continuity between (...) the two movements, based as they were upon such divergent motivations. Nor can the preformation theories be regarded as the origin of the belief that a miniature can actually be seen within the egg, since the existence of metamorphosis as a perfectly valid alternative to epigenesis meant that the work of Malpighi and others, usually described as “preformationist,” was not always taken in this latter sense at the time it was published. The pre-existence theories developed in response to particular philosophical problems, and were themselves responsible for the reinterpretation of the observations. In France, the thoughts of Malebranche and Perrault were probably already exerting influence before their written support for pre-existence appeared, but elsewhere the idea was not taken up so rapidly, and ovism, for instance, could develop without associating itself with emboîtement. Malpighi always seems to have remained opposed to pre-existence,54 but by the last decade of the century, the idea had become sufficiently powerful to influence Ray and Garden in Britain, and was receiving support from as influential a thinker as Leibniz.55 But Garden and Hartsoeker were responsible for dividing emboîtement between two schools, just as the concept itself was becoming popular. The work of both Malpighi and Leeuwenhoek served as the basis of the animalculist version, illustrating how the microscopic discoveries served as much to disrupt the intellectual development of the emboîtement concept as they did to promote it. *** DIRECT SUPPORT *** A8402051 00002. (shrink)

Shows that the dialogue in Plato's Phaedo is primarily devoted to presenting Socrates' final defense of the philosophical life against the theoretical and political challenge of religion.

Peter J Arnold; Sport, Moral Education and the Development of Character, Journal of Philosophy of Education, Volume 18, Issue 2, 30 May 2006, Pages 275–281, htt.

The launch of a revolutionary new scientific theory represents a rare occasion on which the apparently cumulative development of science might be influenced by particular events. Yet in the case of the Darwinian revolution it is often claimed that the theory of evolution by natural selection would have emerged more or less inevitably, given the scientific and cultural circumstances prevailing in mid-Victorian Britain. This essay challenges that claim by arguing that if Darwin had not been there to write his Origin (...) of Species the subsequent development of biology would have occurred along a line that steadily diverged from the sequence of events we actually experienced. There would certainly have been an evolutionary movement in the late nineteenth century, but there would have been no selection theory to disturb the progressionist assumptions of the time. A totally non-Darwinian evolutionism might not have generated the challenges that led to the emergence of modern genetics in the early twentieth century, resulting in a very different understanding of the relationship between development, heredity, and environment. (shrink)