Health economists claim to use market economics combined with the microeconomic concepts of opportunity cost and the margin to advise on priority setting. However, they are advising on setting priorities through a macro-economic analysis using the costs of the supplier, thus prioritising the producer and not the consumer as the dynamic of economic activity. For health economists any contention within priority setting is due to lack of data not their confusion over fundamental concepts.

Health economists claim to use market economics combined with the microeconomic concepts of opportunity cost and the margin to advise on priority setting. However, they are advising on setting priorities through a macro-economic analysis using the costs of the supplier, thus prioritising the producer and not the consumer as the dynamic of economic activity. For health economists any contention within priority setting is due to lack of data not their confusion over fundamental concepts.

Kevin Hoover explores retroduction as a means of theorizing in macro-economics, rather than exclusive reliance on deductivism or inductivism. Retroduction is discussed as involving conceptualization with respect to empirical evidence as a means of identifying causal mechanisms as the basis for theory in the form of mathematical models. It is put forward as a preferred alternative to more fundamental reform of macro-economics, whose justification Hoover dismisses as being ‘ideological’. Yet ideology refers to a position on metaphysics (...) such as Hoover himself sets out in terms of open systems, which would significantly extend the scope for retroduction. (shrink)

It is widely recognised that mainstream economics has failed to translate micro consistently into macro economics and to provide endogenous explanations for the continual changes in the economic system. Since the early 1980s, a growing number of economists have been trying to provide answers to these two key questions by applying an evolutionary approach. This new departure has yielded a rich literature with enormous variety, but the unifying principles connecting the various ideas and views presented are, as (...) yet, not apparent. This 2005 volume brings together fifteen original articles from scholars - each of whom has made a significant contribution to the field - in their common effort to reconstruct economics as an evolutionary science. Using meso economics as an analytical entity to bridge micro and macro economics as well as static and dynamic realms, a unified economic theory emerges. (shrink)

In this paper I describe and analyze an economic situation involving two competitive organizations. I put forth the argument that because of the systemic nature of decision making relative to managing the requirements of utilizing a descriptive equation that determines how many people an economic system can support, that even if all the players in the situation act ethically, the results will still be harmful, and necessarily so, to the system and to many innocent people. I will demonstrate that harming (...) innocent people is required and morally defensible given the choices available. The best one can do is slow down the increase in disutilities and possibly operate the system within a range of acceptable behavior that minimizes the resulting harm to innocent people, even if we cannot entirely remove this harm. In this context ethics becomes the study of the acceptable as opposed to the preferable. (shrink)

Recent developments in public economics have largely been in the direction of reaffirming the limits of the market and of establishing new ones. The possible existence of fundamental non-convexities, imperfect and asymmetric information, incentive compatibility, imperfect competition, strategic complementarity, and scale economies led to the conclusion that a large set of market failures exist; such situations also imply government failure. Acocella, considers this complicated picture and provides a discussion of the different approaches to establishing social 'rankings' of the possible (...) situations and the underlying principles. The arguments for and against different institutions are then analysed at a micro and macroeconomic level. The market and the government are recognised as imperfect, and thus complementary, institutions. Specific policy targets and instruments are considered in the areas of micro and macro-economic policy. Special attention is devoted to questions of policy management in an open economy. Finally, problems of domestic and international policy co-ordination are considered. (shrink)

My title refers to a very modern problem, for what else is modernization than a process of rational differentiation of society in autonomous, mutually isolated sub-spheres, to the point where no one any longer knows what the unity of it all is? We differentiate, we specialize, we hyperspecialize, and then we get puzzled over the fragmentation we have produced around us, between ourselves and even within ourselves. Look at our own area. You cannot even specialize in practical ethics any more. (...) You have to limit your attention to medical ethics, for example, the ethics of engineering, or business ethics. And within business ethics, my own field of research, the homo universalis is also threatened with extinction. You can do marketing ethics, ethics of finance or computer ethics, until you finally become the typical ‘expert’: someone who knows almost everything about almost nothing.From the despair over hyper-differentiation, the call for integration arises: the call for meaning, for reconfiguration, for making sense of our world and our lives again, the call for reconnection with the great traditions of our culture, the call for community.If we read the great theorists of modernization — Weber, Durkheim, Parsons, Habermas, Münch — we learn that the quest for integration is in fact an equally important aspect of modernization as is differentiation. They are two sides of the same coin. In this sense, I think, the integrative endeavour of the EEN can still be considered a modern one.We are presently facing an escalation, or a climax, of modernity. We live in a state of hypermodernity, in which technological, economic and cultural forces dynamize our society on an unprecedented scale. We are really living high up on the dazzling slopes of the exponential growth curves that the Club of Rome predicted over 25 years ago. Everyone speaks of change. Everything is changing, and with institutionalized change, everything has become uncertain. Within uncertainty, however, social disintegration is lurking. Does not the structural uncertainty that we are introducing in our society bring us back to a state of nature, to a state outside the hypothetical social contract on which modern social communities are based? Is not the life of the individualized, flexible wanderers on the labour market again resembling the pledge of man which Hobbes described as ‘solitary, nasty and brutish’ . Has not the life of many in our society again become ‘very unsafe and very insecure, full of fears and continual dangers’, in the way that Locke depicted the state of nature .I understand business ethics as an integrative undertaking in our society, integrative in particular with respect to the economy and the realm of formal organization, integrative also at the interface between life-world and system, to use the terminology of Habermas.Integrative endeavours in our society have an ambiguous relation to change. Change is a key challenge to business ethics. Should we accept disruptive forms of change as inevitable, in order to remain on speaking terms with the economy and its spokesmen? Or should we fiercely resist certain changes? Is change on our side, perhaps? Business ethics is sometimes presented as a way to help managers cope with the many paradoxes of our time. One-dimensional technological rationality, we say, is no longer adequate to grasp the complexities, ambiguities and paradoxes of our world. Successful management requires more flexible, more creative forms of thinking. Philosophy and ethics are then presented as alternatives. But then aren’t we, the philosophers, simply promoting ourselves as the new masters of change for our time? Isn’t the so-called postmodern consciousness in fact an ideological underpinning of hyper differentiation, and in this sense the ultimate self-realization of the spirit of modernity? What sense of direction do we offer, as business ethicists?I would like to speak about the integration of micro, meso and macro-levels in business ethics, from the perspective of social change. My basic thesis is that only an adequate ethics of responsibility can integrate a highly differentiated and ultra-complex society like ours. This integration through responsibility opens up new directions of social change, that proceed simultaneously at the micro, meso and macro-level.In order not to complicate matters too much, I will limit myself to two dimensions of change which are important for business ethics at the moment: economic change ; organizational change . In relation to these changes, I will conclude with some reflections on changes in business ethics itself, the ones that I think are needed. (shrink)

Preparers of financial statements are in a position to manipulate the view of economic reality presented in those statements to interested parties. This paper examines two principal categories of manipulative behaviour. The term macro-manipulation is used to describe the lobbying of regulators to persuade them to produce regulation that is more favourable to the interests of preparers. Micro-manipulation describes the management of accounting figures to produce a biased view at the entity level. Both categories of manipulation can be viewed (...) as attempts at creativity by financial statement preparers. The paper analyses two cases of manipulation. First, it describes a recent case of significant and successful lobbying against the accounting regulator in the USA. The second case examines some recent Spanish earnings manipulation to demonstrate the effects of biased reporting at the entity level. Both types of creativity are considered in an ethical context. The paper concludes that the manipulations described in it can be regarded as morally reprehensible. They are not fair to users, they involve an unjust exercise of power, and they tend to weaken the authority of accounting regulators. (shrink)

Recent developments in public economics have largely been in the direction of reaffirming the limits of the market and of establishing new ones. The possible existence of fundamental non-convexities, imperfect and asymmetric information, incentive compatibility, imperfect competition, strategic complementarity, and scale economies led to the conclusion that a large set of market failures exist; such situations also imply government failure. Acocella, considers this complicated picture and provides a discussion of the different approaches to establishing social 'rankings' of the possible (...) situations and the underlying principles. The arguments for and against different institutions are then analysed at a micro and macroeconomic level. The market and the government are recognised as imperfect, and thus complementary, institutions. Specific policy targets and instruments are considered in the areas of micro and macro-economic policy. Special attention is devoted to questions of policy management in an open economy. Finally, problems of domestic and international policy co-ordination are considered. (shrink)

Drawing on evolutionary realism as a guiding framework and using relevant theoretical bases at macro-, meso-, and micro- levels, we investigate the relative variance explained by each level on selection and retention of Benefit Corporations. Based on a sample of 5052 observations of certified B-Corps and 1403 observations of decertified B-Corps, relative to the country and industry differences, firm-level differences explain most of the variance in non-economic performance, especially for workers and community impact areas. Industry-level differences explain small differences (...) in customers and environmental performance while country differences do not explain meaningful performance differences. The results also show a similar pattern in relative effects for decertified B-Corps. Our findings point to the value of disaggregating the relative effects of multilevel factors in further understanding drivers of non-economic performance and the decertification of B-Corps. (shrink)

Behavioral economics is the latest trendy form of economics. Increasingly theorists are advocating using behavioral economics to do normative ethics or claiming that the behavioralists’ findings render normative claims otiose. I argue in this paper that we should be extremely wary when it comes to accepting any such normative pronouncements. I argue that behavioral economics: (a) minimizes and/or misunderstands the role that character and architectonic life goals play in accounting for the why of ethical behavior, (b) (...) fundamentally misconceives human practical rationality, (c) often unduly narrows the range of human action and choice, (d) misleadingly assumes that options are merely given to us rather than generated by us in accordance with our character, (e) is parasitic upon normative ethics, (f) results in an unhelpful ad hoc approach to ethical thinking, which is unlikely to prove all that useful and may even dangerously mislead ordinary agents or those who operate corporate compliance programs and who seek to improve corporate cultures, and (g) ignores the key role played in ethical behavior by meso‐ and macro‐factors. (shrink)

As in the field of economics, the questions of business ethics can be divided into two distinguishable types — micro and macro. Micro-ethical questions arise primarily for subordinates in an organization and concern what should be done when the demands of conscience conflict with perceived occupational requirements. Macro-ethical questions arise principally for superiors and concern the setting of policy for the organization in general. The present article elaborates upon this distinction and advances a line argument for resolving (...) micro-ethical problems when their affinity to macro-ethical issues is noted. (shrink)

In recent years, the long-standing questions of why, how, and which farm families continue farming in the face of ongoing changes have increasingly been studied through the resilience lens. While this body of work is providing updated and novel insights, two limitations, a focus on macro-level challenges faced by the farm operation and a mismatch between the scale of challenges and resilience measures, likely limit our understanding of the factors at play. We use the example of medical economic vulnerability, (...) a micro-level challenge traditionally confined to the household sphere of the agri-family system, as a way to call attention to these limitations. Focusing on United States farm households, we assess: To what extent are they experiencing medical economic vulnerability when using objective and subjective outcome measures? Which demographic and farm characteristics are associated with experiencing medical economic vulnerability? What is the association between institutional arrangements and medical economic vulnerability? Our analysis of over 900 surveys coupled with a conceptual framework merging complementary insights from three bodies of literature revealed seemingly large differences in the prevalence of medical economic vulnerability across the objective and subjective measures with the subjective measure indicating a general sentiment of medical economic vulnerability in a majority of respondents. Conversely, limited variations were noted in who experiences medical vulnerability on the basis of demographic and farm characteristics, with stronger associations being connected to the households’ health insurance arrangements. We conclude with three implications of our findings for the farm resilience literature. (shrink)

The implementation of the UN Sustainable Development Goals and the Lisbon Strategy sets the task of a comprehensive study of the citizens` well-being, determining the state and trends in the level and quality of life not only by traditional methods of social statistics, but also through comprehensive sociological research. This approach has significant advantages since it allows us to generalize the state of social development of a society based on the population`s opinions, to study the emerging social risks that concern (...) the population, to determine the differentiation of countries by indicators of well-being. The foundations of the new approach to the analysis of social processes were laid by the scientific achievements of the 60s of the last century. The dominant paradigm was the economic goals and parameters of statistically measured national income, household income, wages and their differentiation. The environmental risks that threaten the future of civilization were identified and analyzed in the 70s of the XX century. The production contradiction, which raised the question of measuring the quality of life in a new way, was articulated. The economic component was mixed and replaced with the welfare parameter. The sustainable development, including the indicators of well-being, the fight against poverty, and the environment were declared to be the goals of the society. The tasks of monitoring the solution of these problems are solved by sociological research, whose mathematical formalization can become a structural element of economic and mathematical modeling of social processes. (shrink)

Chapter 1 is introductory. It identifies a cluster of philosophical problems that arise in the foundations of neoclassical economic theory. Issues growing out of the unusually tenuous connection between the theory and the world are singled out as especially troublesome. Is it, after all, possible for economics to look more like an empirical science like physics than like of branch of mathematics? ;Chapter 2 argues that economic methodology has been constrained by the application of faulty philosophy of science, or (...) by the faulty application of philosophy of science. Economists with good intentions have wanted to protect economic theory from intrusions by "unscientific" constructs that had no clear operational criteria for their application. I argue that these attempts to protect economics went astray because theoretical constructs were consequently made to answer to an excessively stringent notion of economic data. Consequently, I find means to argue that all data and, in particular, psychological data about individual economic agents is relevant in the construction and confirmation of economic theory. Actually, I advance the stronger thesis that economics actually owes us an account of the behavior of individuals and that this makes it evident that economic theory should strive to cover the widest range of phenomena is reasonable. ;Chapter 3 takes this broadened notion of economic theory as a starting point and shows why the new outlook can be expected to enrich present theory and make progress towards the project of connecting economics to the phenomena. I include explanations of how prima facie difficulties with the new outlook overcome. In the course of doing this, many striking analogies between economics and linguistics, another science that closely related to psychology, are brought out. The relatively successful resolution of methodological problems in linguistics that parallel methodological problems in economics seems encouraging. ;Finally, Chapter 4 examines a bundle of problems concerning the relationship between microeconomics and macroeconomics. Most of the conclusions drawn in this chapter are negative: I argue that the connection between the micro and the macro is more difficult to fathom than many writers seem to imply. . . . UMI. (shrink)

Literature on ethical behavior has paid little attention to the mechanism between macro-environmental variables and environmental performance. This study aims at constructing a model to examine the relationships which link cultural values, population growth, economic development, and environmental performance by incorporating the mediating role of education. The multiple linear regression model was employed to test the hypotheses on a 3-year-pooled sample of 51 countries. Empirical results conclude that national culture, economic development, and population growth would significantly influence environmental performance (...) directly. In addition, through the mediating effect of education, population growth and national culture would significantly affect environmental performance indirectly. These findings provide theoretical and managerial implications for constructing the mechanism of cultural values and ethical behavior in general and environmental management in particular. (shrink)

Baumard proposes that life history slowing in populations over time is the principal driver of innovation rates. We show that this is only true of micro-innovation rates, which reflect cognitive and economic specialization as an adaptation to high population density, and not macro-innovation rates, which relate more to a population's level of general intelligence.

Introduction. The fourth industrial revolution significantly changes the structure of economic relations and transforms the importance of factors in the development of territories. The purpose of the article is to identify the most significant factors in the regional development of the Ural macro region in the context of the fourth industrial revolution and to determine the directions of impacts to ensure the competitiveness and long-term growth of territories. Methods. The methodological basis of the study is based on a set (...) of scientific approaches to economic growth, concepts of regional and institutional economics. Research methods include regional, comparative and econometric factor analysis. Scientific novelty of the study. A method for identifying the significance of factors in the development of regions is proposed and the key factors for developing the subjects of the Ural macro region in the context of the fourth industrial revolution are established. The study contributes to the scientific debate on the meaning and management of institutional development factors. Results. The author presents the results of diagnosing the regulatory environment and geographic factors of the subjects of the Ural macro region. An econometric analysis of their impact on economic development has been carried out. The statistical significance for developing the volume of mining and the quality of the legal environment in the regions has been established. Informal institutions (the authors explain the phenomenon by weak differentiation of cultural characteristics and business practices of regions due to their historical connectivity) and transport and geographical location (due to a decrease in spatial influence and an increase in the role of digital technologies in production chains in Industry 4.0). Conclusions. In the Sverdlovsk and Chelyabinsk regions, it was possible to ensure higher values of GRP per capita due to a favorable regulatory environment. In general, in the Russian regions in the second decade of the 21st century, the raw material orientation remains (among the studied objects, the economies of the Orenburg region and Udmurtia are the most extractive). To ensure the country’s long-term development, it is necessary to create a favorable business climate: improving the legal environment in the areas outlined in the study, increasing the level of trust and reducing the level of corruption. (shrink)

This article discusses the new microhistory of the 1970s and 1980s in terms of the concept of exceptional typical, and contrasts the new microhistory to old microhistory, in which the relationship between micro and macro levels of phenomena was defined by means of the concepts of exceptionality and typicality. The focus of the essay is on Carlo Ginzburg's method of clues, Walter Benjamin's idea of monads, and Michel de Certeau's concept of margins. The new microhistory is also compared with (...) methodological discussions in the social sciences. In the mid-1970s concepts like the micro-macro link or the microfoundations of macrotheory were introduced in sociology and economics. But these largely worked in terms of the concepts of typicality or exceptionality, and this has proved to be problematic. Only historians have developed concepts that escape these and the older definitions of the micro-macro relationship; indeed, the "new microhistory" can best be described in terms of the notion of "exceptional typical." The essay explores the meaning of this notion. (shrink)

Intellectual property has traditionally been a matter for the legal professions, but with the shift to evidence-based policy, the global economic upheaval, and the advent of the digital age, intellectual property is increasingly informed by economic perspectives. This book is a comprehensive, critical analysis of economic interpretations of intellectual property, written for researchers, practitioners and policymakers. It analyses the interface between economics, finance, accountancy and intellectual property law. Commencing with a critical analysis of the economics of innovation, law, (...) industrial organisation and welfare, the book then critiques the economics of specific intellectual property rights, including copyright, patents, trade marks, geographical indications and design rights. It further assesses the interaction between economics, IP and competition. Finally, it examines why, when and how IP generates value, reviewing contemporary approaches to valuation and accounting, and the emerging use of IP to facilitate business finance. This analytical text offers readers a better understanding of IP's contribution to macro- and microeconomics, as well as insights that inform the debate on evidence-based IP policy. (shrink)

Monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the dark side of monetary Intelligence and behavioral economics—dishonesty. Dishonesty, a risky prospect, involves cost–benefit analysis of self-interest. We frame good or bad barrels in the environmental context as a proxy of high or low probability of getting caught for dishonesty, respectively. We theorize: The magnitude and intensity (...) of the relationship between love of money and dishonest prospect may reveal how individuals frame dishonesty in the context of two levels of subjective norm—perceived corporate ethical values at the micro-level and Corruption Perceptions Index at the macro-level, collected from multiple sources. Based on 6382 managers in 31 geopolitical entities across six continents, our cross-level three-way interaction effect illustrates: As expected, managers in good barrels, mixed barrels, and bad barrels display low, medium, and high magnitude of dishonesty, respectively. With high CEV, the intensity is the same across cultures. With low CEV, the intensity of dishonesty is the highest in high CPI entities —the Enron Effect, but the lowest in low CPI entities. CPI has a strong impact on the magnitude of dishonesty, whereas CEV has a strong impact on the intensity of dishonesty. We demonstrate dishonesty in light of monetary values and two frames of social norm, revealing critical implications to the field of behavioral economics and business ethics. (shrink)

An examples-driven treatment of introductory economic dynamics for students with a basic familiarity with spreadsheets. Shone approaches the subject with the belief that true understanding of a subject can only be achieved by students themselves setting out a problem and manipulating it experimentally. Although all economics students now have access to spreadsheets, they are often used for little more than graphing economic data. This book encourages students to go several stages further and set up and investigate simple dynamic models. (...) The book presents the essentials of macro and micro economic dynamics, including: demand and supply dynamics, Keynesian dynamics, IS-LM, Inflation-unemployment, dynamics of the firm, rational expectations and saddle points, fiscal dynamics and the Maastricht Treaty and Chaos theory. The book contains 50 exercises. The support website contains an additional 100 questions for students and 100 for lecturers: www.cambridge.org/resources/economics. (shrink)

Do government policies increase the likelihood that some citizens will become persistent criminals? Using criminological concepts such as the idea of a “criminal career” and sociological concepts such as the life course, this article assesses the outcome of macro-level economic policies on individuals’ engagement in crime. Few studies in political science, sociology, or criminology directly link macroeconomic policies to individual offending. Employing individual-level longitudinal data, this article tracks a sample of Britons born in 1970 from childhood to adulthood and (...) examines their offending trajectories through the early 1980s to see the effects of economic policies on individuals’ repeated offending. A model is developed with data from the British 1970 Birth Cohort Study that incorporates individuals, families, and schools and takes account of national-level economic policies. Findings suggest that economic restructuring was a key causal factor in offending during the period. Criminologists are encouraged to draw on ideas from political science to help explain offending careers and show how political choices in the management of the economy encourage individual-level responses. (shrink)

This article attempts to account for professional historians’ relative neglect of the history of economic life over the past thirty years, looking mainly at the American case. This neglect seems paradoxical, considering the remarkable transformations that have taken place in world capitalism during this same period. I trace the neglect to the capture of the once interdisciplinary field of economic history by mathematically inclined economists and to the roughly simultaneous turn of historians from social to cultural history. I conclude by (...) suggesting some topics in the history of economic life that seem both timely and exciting. I also suggest some intellectual resources that other disciplines, particularly economic sociology and economic history, could offer should historians decide to tackle the history of economic life once again. (shrink)

Monetary Intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the bright side of Monetary Intelligence and behavioral economics, frames money attitude in the context of pay and life satisfaction, and controls money at the macro-level and micro-level. We theorize: Managers with low love of money motive but high stewardship behavior will have high subjective well-being: pay (...) satisfaction and quality of life. Data collected from 6586 managers in 32 cultures across six continents support our theory. Interestingly, GDP per capita is related to life satisfaction, but not to pay satisfaction. Individual income is related to both life and pay satisfaction. Neither GDP nor income is related to Happiness. Our theoretical model across three GDP groups offers new discoveries: In high GDP entities, “high income” not only reduces aspirations—“Rich, Motivator, and Power,” but also promotes stewardship behavior—“Budget, Give/Donate, and Contribute” and appreciation of “Achievement.” After controlling income, we demonstrate the bright side of Monetary Intelligence: Low love of money motive but high stewardship behavior define Monetary Intelligence. “Good apples enjoy good quality of life in good barrels.” This notion adds another explanation to managers’ low magnitude of dishonesty in entities with high Corruption Perceptions Index. In low GDP entities, high income is related to poor Budgeting skills and escalated Happiness. These managers experience equal satisfaction with pay and life. We add a new vocabulary to the conversation of monetary intelligence, income, GDP, happiness, subjective well-being, good and bad apples and barrels, corruption, and behavioral ethics. (shrink)

The average annual profits before fees of the $10 billion plus Renaissance Technologies’ hybrid Medallion “Leveraged, High Frequency, Artificial Intelligence ” trading hedge fund between 1988 and 2019 were about 66 percent. Total trading profits during this period were over $100 billion. The fund has never had a losing year. The fund is not open to the general public. First, distinctions among, in more or less historical order, the traditional market-maker trading model, the hedge fund trading model, the artificial intelligence (...) trading model, and the hybrid LHFAI trading model are discussed. Second, the micro components of the LHFAI trading model are explained in the context of Renaissance Technologies’ Medallion Fund. Third, key positive contributions of the model with respect to profitability, low annual volatility, market liquidity, and intellectual property development; negative ethical issues concerning exclusive access, tax fairness, financial transparency, shared responsibility for losses and systemic risk, and short vs. long-term capital allocation are discussed. Potential reforms that retain the positives, reduce the negatives, and that could positively transform the model are discussed. Fourth, potential impacts that the potential reforms might have on the macro LHFAI form of finance capitalism and the larger finance capitalism political-economic system are considered. Fifth, conclusions are offered and discussed. (shrink)

Over the past 10 years the sales of Fair Trade goods - particularly those carrying the Fair Trade Labelling Organizations International (FLO) certification mark - have grown exponentially. Academic interest in Fair Trade has also grown significantly over the past decade with researchers analysing the model from a wide range of theoretical perspectives. Whilst Fair Trade is generally acknowledged as a new supply chain model, it has tended to be studied at the micro/organisational level rather than at the macro/systems (...) level. As a consequence, its wider impact as institutional innovation at the field level appears to have been under-theorised so far. In order to address this research gap, this article uses a neo-institutionalist perspective to analyse Fair Trade not simply as a new exchange model working within existing organisational and economic structures, but rather as an agent of institutional entrepreneurship at, and beyond, the field level. From this latter perspective, Fair Trade brings a new set of transformational meanings to extant exchange and consumption models and reforms fields of economic exchange by disrupting and then re-assembling key institutional elements around modern consumption to roll back commodity fetishism and reconnect consumers and producers. The type of institutional change driven by Fair Trade can be seen as a form of social entrepreneurship. (shrink)

Recent neuroeconomic studies challenge the conventional economic logic of behavior. After an introduction to some starting points of brain research in ‘classical’ economics we discuss the final and contingent causes of rational and irrational behavior in neuroeconomics and standard economics and present the concept of expanded rationality models (ERM) which imports neuroeconomic elements like emotions, beliefs and neuroscientific constraints and exports improved testable predictions. The typical structure of neuroeconomic proof of economic models and the imprecise neuroscientific measurement let (...) us suggest a feed-back structure of economic research. We apply Hirshleifer’s conception of macro-/micro-technology and contrast it to the neuroeconomic black box critique on economic theory. Furthermore, instead of direct adjustment of preference structures we propose the auxiliary creation of neuroeconomic constraints like action-dependent or outcome-dependent neuroeconomic belief constraints (NBC) and emotion compatibility constraints (ECC). This prepares the ground for our examination of neuroeconomics and ERM as two different paths towards an analytical unification of behavioral sciences. (shrink)

First published in 1977, this is an applied economics text, in which the basic theory of any introductory economics couurse is applied to a whole range of UK macro- and micro-economic policy issues. The book is designed specifically for first and second year university students, with the aim of demonstrating the relevance of theory to policy, how theory can be applied to policy problems and, in the process, to improve their understanding of the theory itself.

This present article explores the effects of cultural value, economic prosperity, and community mental wellbeing through multi-sectoral infrastructure growth projects under the Belt and Road Initiative. The implications of the social exchange theory are applied to observe the support of the local community for the China-Pakistan Economic Corridor. This study explores the CPEC initiative, it’s direct social, cultural, economic development, and risk of environmental factors that affect residents’ lives and the local community’s wellbeing. CPEC is a multibillion-dollar project to uplift (...) economic growth and free trade between Pakistan, China, and other regional stakeholders. Although CPEC is still in its initial phases with partial startups, policymakers and government officials claim this mega project as a “game-changer” in the region, mainly for Pakistan and China. This gigantic project offers the significant potential to generate business slews and employment opportunities with international outreach. Due to the term’s newness, numerous studies have recently explored the macro and microeconomic benefits of the CPEC initiatives; still, these projects are theoretical. The existing literature insufficiently explored how helpful CPEC would be to a specific group and how residents perceive its advantages. This study fills in the literature gaps and explores the likely advantageous potential of the CPEC for the regional states. The study applied a convenient sampling technique for the data collection process. It used a mixed-method approach to gain scientific results, with a standardized questionnaire survey of 459 people from five major cities of Pakistan. The study results designate that residents believe that CPEC infrastructure projects will significantly improve residents’ life quality through more job openings and community poverty reduction. Still, they raised their concerns regarding environmental protection issues in the region. The findings specified that residents had an optimistic approach to better educational productivity by adopting environment-oriented policies. Policymakers should establish new CPEC study centers in different areas, and investors should be encouraged to participate in the industrial sector. Officials can overwhelm community worries about environmental degradation. Government officials in both countries can utilize the findings to raise public awareness about CPEC’s social, economic, cultural, mental wellbeing, and ecological implications. (shrink)

In this paper we focus on the structural approach and structural method developed from Sampedro’s work. We propose that this approach is inside the systemic paradigm and it has two interdependent and necessary ideas. On the one hand, we take as a reference some schools of thought in economics and the structural method with two stages. On the other hand, some macroeconomic principles has been derived from the vision and the methodology, which give the structural approach an analytical, synthetic, (...) aggregate and historiographical character. In this sense, the main argument is that structural analysis has its own macro-theoretical characterization. In this way, the structural approach allows valid analysis in order to increase our knowledge of the economic reality. En este trabajo se realiza una aproximación al enfoque y método estructural, a partir de los conceptos postulados en la obra de Sampedro y su posterior inclusión dentro de un paradigma sistémico, distinguiéndose dos pilares interdependientes y mutuamente necesarios. Por un lado, para tratar los aspectos epistemológicos se distinguen las escuelas consideradas de referencia en economía y se detalla el método estructural basado en la etapa descriptiva y la de síntesis. Por otro lado, se tratan los principios macroeconómicos que se derivan de la visión y de la metodología y que otorgan al enfoque estructural un carácter analítico, sintético, agregado e historiográfico. En este sentido la tesis principal del artículo es que el análisis estructural posee una caracterización macroeconómica propia que permite realizar análisis válidos de modo sistemático, con el propósito de aumentar los conocimientos sobre la realidad económica. (shrink)

This insightful Modern Guide offers a broad coverage of questions and controversies encountered by contemporary economists. A refreshing approach to philosophy of economics, chapters comprise a range of methodological and theoretical perspectives, from lab and field experiments to macroeconomics and applied policy work, written using a familiar, accessible language for economists. Highlighting key areas of methodological controversy, the Modern Guide looks at estimating utility functions in choice data, causal modelling, and ethics in randomised control trials. Chapters further explore topical (...) issues, including: economists' attitudes to other disciplines; gender bias in economic research; methods of modelling social influence in economics; behavioural welfare economics; anti-poverty policy controversies; and inflexible reliance on DSGE models in macroeconomics. Furthermore, it explores the implications of the last financial crisis for macroeconomic confidence, and ways to adapt abstract theory to everyday policy advice. Avoiding philosophical jargon, and with the majority of chapters written by economists, this Modern Guide will challenge economists and scholars of philosophy of economics to engage with different approaches to the topic. This will also be a useful tool for policy makers administering nudges, development initiatives, macro-forecasting and monetary policy."--Publisher's description. (shrink)

With financial liberalization processes which started during the 1980’s, Turkey and the other emerging market economies have experienced many financial volatilities. From past to present, the most severe of these for Turkey is certainly the banking and currency crisis experienced in the period of 2000-2001. In tis study, the Turkish 2000-2001 Crisis, which takes special attention in academic literature in terms of their results and the economic damages, are analyzed under the asymmetric information theory; the factors which are thought to (...) trigger in crises such as financial liberalization, negative macro-economic indicators, deposit insurance, moral hazard problem and deterioration in the banking sector balance-sheets are evaluated and the consistency of this severe crisis with the theory is investigated. (shrink)

In this article, I contest Brian Epstein’s argument (2014) against the applicability of global supervenience to relate micro and macroeconomic properties. Epstein rejects supervenience via a causal-chain relation inside the macroeconomic set in his criticism. Accordingly, the rise of the macro set is fixed by a weather event without any mediation from the realm of microeconomics. As it stands, this idea would demonstrate the autonomy of macroeconomics from microeconomics. However, as I intend to argue, in Epstein’s weather-cases scenarios, the (...) corresponding macroeconomic sets are fixed by their micro bases that codify weather events and thereby fix the macro. This is so because the microeconomic base must include institutional facts; they are as much necessary as the facts about people’s conditions. In so doing, we re-establish bottom–top determination from the micro to the macro, rescuing the applicability of global supervenience. (shrink)

While the literature on corporate social responsibility (CSR) suggests that its form and content differ at least somewhat from country to country, it has not begun to address whether CSR practices converge or diverge over time as countries benefit from higher levels of economic development, or whether these practices relate to specific cultural values and institutional structures. This paper proposes an initial conceptual model and propositions to begin to assess whether and how the different levels of economic development, cultural values, (...) and institutional structures influence CSR behaviors. Mediating variables related to industry sector and executive moral development are also included in the model. The paper begins to lay the groundwork for empirical country and regional studies that cancontribute to a greater understanding of the factors that influence CSR behaviors. (shrink)

The following is a short introduction to this special issue, which builds on and significantly extends and updates the research published recently in the Iwanami Series on Japanese economic history. First, we offer a modern interpretation of four institutional elements that are particularly important for understanding the growth path of the Japanese economy. These are (a) ownership; (b) regulation of factor markets; (c) labor mobility and (d) the judiciary. These four elements properly clarify the incentive structure behind economic institutions. We (...) then briefly explain how the four articles in this special issue—two at the macro level providing updated estimates of long-run rates of growth in gross domestic product (GDP) and total factor productivity (TFP), and two at the micro level examining institutional changes in specific markets—build on this unified framework, and deepen our understanding of Japanese economic history. (shrink)

While the literature on corporate social responsibility suggests that its form and content differ at least somewhat from country to country, it has not begun to address whether CSR practices converge or diverge over time as countries benefit from higher levels of economic development, or whether these practices relate to specific cultural values and institutional structures. This paper proposes an initial conceptual model and propositions to begin to assess whether and how the different levels of economic development, cultural values, and (...) institutional structures influence CSR behaviors. Mediating variables related to industry sector and executive moral development are also included in the model. The paper begins to lay the groundwork for empirical country and regional studies that cancontribute to a greater understanding of the factors that influence CSR behaviors. (shrink)

This book provides both an explanation of the inflation which has bedeviled economic policy in the West since the end of World War II and a micro-economic theory to purge Keynesian models of the Walrasian strain derived from Marshall's Principles. By focusing on what is taken to be the representative business firm of the twentieth century - the large corporation or megacorp - the microeconomic model presented in the book reverses the usual assumptions of economic analysis. Instead of assuming the (...) existence of firms with no control over prices, the book examines how the megacorp uses its pricing power to finance its own internal rate of growth. The result is a determinant model of how prices are set under the sort of oligopolistic conditions which prevail in most modern industries throughout the world. (shrink)

Population Dynamics fills the gap between the classical supply-side population theory of Malthus and the modern demand-side theory of economic demography. In doing so, author Cyrus Chu investigates specifically the dynamic macro implications of various static micro family economic decisions. Holding the characteristic composition of the macro population to always be an aggregate result of some corresponding individual micro decision, Chu extends his research on the fertility-related decisions of families to an analysis of other economic determinations. Within this (...) framework, Chu studies the income distribution, attitude composition, job structure, and aggregate savings and pensions of the population. While in some cases a micro-macro connection is easily established under regular behavioral assumptions, in several chapters Chu enlists the mathematical tool of branching processes to determine the connection. Offering a wealth of detail, this book provides a balanced discussion of background motivation, theoretical characterization, and empirical evidence in an effort to bring about a renewal in the economic approach to population dynamics. This welcome addition to the research and theory of economic demography will interest professional economists as well as professors and graduate students of economics. (shrink)

In a series of insightful publications, Philip Pettit and Frank Jackson have argued for an explanatory ecumenism that is designed to justify a variety of types of social scientific explanation of different , including structural and rational choice explanations. Their arguments are put in terms of different kinds of explanatory information; the distinction between causal efficacy, causal relevance and explanatory relevance within their program model of explanation; and virtual reality and resilience explanation. The arguments are here assessed from the point (...) of view of the illumination they are able to cast on the issue of economics imperialism, the project of privileging rational choice as a unifying basis for explanations. While the Jackson–Pettit arguments turn out to be helpful in specifying some of the ontological and pragmatic constraints on economics imperialism, they are also shown to conflate distinct dimensions in the purported explanantia (such as small grain and particular grain, and the macro and the existentially quantified) and thereby to miss an important class of individualist causal process explanations of social phenomena. (shrink)

Introduction. The article deals with the problem of the functional status of regions in the system of economic federalism, which is associated with the high spatial heterogeneity of Russia, and explains the need to move from the model of economic fed- eralism, which combines the presence of universal institutions and institutional exceptions, to a model that takes into account the spatial diversity of ter- ritories. The purpose of the study is to substantiate the decrease in the heterogeneity of the economic (...) federalism space when moving on to a model based on macro territories - groups of regions with the same functional status. Methods. The author uses methods of a mono- graphic review, logical and statistical analysis in the context of applying a spatial approach in studying the relations of economic federalism, as well as the concept of “smart specialization” in relation to the regions of Russia to differentiate the relationship of the federal center with the territories within the same specialization. Scientific novelty of the study. The article is the first to present a methodology for determining the functional status of regions, which is the basis for the subsequent formation of a model of relations between the federal center and macro regions. Results. The author proposes methods for deter- mining the functional status of regions and calcu- lating indicators that characterize the relations of economic federalism. The first methodology, based on economic and territorial criteria, makes it possi- ble to attribute each region of Russia to a group of macro regions according to their functional status. The second method makes it possible to substanti- ate a greater asymmetry of indicators character- izing economic federalism in the country as a whole than in the context of macro territories. Conclusions. Regarding the higher stability of indicators characterizing economic federalism by groups of macro-territories than in the country as a whole, the need for a transition to a flexible model of economic federalism based on differentiated measures and specific tools to support regions in the context of their functional specializations is substantiated. (shrink)

How and why did comparative political economy lose sight of the sources of growing macroeconomic and political instability, a problem that encompassed a growing financial bubble and then a crash in the housing market, a period of sluggish growth that plausibly constitutes secular stagnation, and a crisis of political legitimacy manifesting itself in the rise of antisystem “populist” parties? A gradual shift in CPE’s research agenda from macroeconomic to microeconomic concerns, and from demand-side to supply-side explanations, diminished its ability to (...) analyze adequately the central economic and political problems of the past twenty years. This article traces CPE’s evolution through successive “supermodels” that constituted its core research foci. To understand the current crisis, CPE needs to revisit and update its original roots in Keynes, macroeconomics, and the demand side. This shift is already happening at the margins, as CPE scholars struggle to understand the current crisis. (shrink)

This paper forms part of a research project investigating conceptions of the relationship between micro-level selfseeking agent behaviour and the desirability or otherwise of the resulting macro-level social outcomes in the history of economics.

“The ‘fallacy of composition’ that drives a felicitous wedge between micro and macro, between the individual and the aggregate, and gives rise to emergent phenomena in economics, non-algorithmic ways – as conjectured originally by John Stuart Mill…, George Herbert Lewes … , and codified by Lloyd Morgan … in his popular Gifford Lectures - may yet be tamed by unconventional models of computation.” --K. Vela Velupillai (2008, p. 21).

Computation and Simulation have always played a role in economics – whether it be pure economic theory or any variant of applied, especially policy-oriented, macro- and microeconomics or what has increasingly come to be called empirical or experimental economics. Computations and simulations are also intrinsically dynamic. This triptych – computation, simulation and dynamic – is given natural foundations, mainly as a result of developments in the mathematics underpinnings in the potentials of computing, using digital technology. A running (...) theme in this essay is the recognition that, increasingly, the development of economic theory seems to go hand in hand with advances in the theory and practice of computing, which is, in turn, a catalyst for the move away from too much reliance on any kind of mathematics for the formalisation of economic entities that is inconsistent with the mathematical, methodological and epistemological foundations of the theory of computation. (shrink)

This article argues that agent-based modeling is the methodological implication of Lawson’s championed ontological turn in economics. We single out three major properties of agent-based computational economics, namely, autonomous agents, social interactions, and the micro-macro links, which have been well accepted by the ACE community. We then argue that ACE does make a full commitment to the ontology of economics as proposed by Lawson, based on his prompted critical realism. Nevertheless, the article also points out the (...) current limitations or constraints of ACE. Efforts to overcome them are deemed to be crucial before ACE can make itself more promising to the current ontological turn in economics. (shrink)

The aim of the article. The aim of the article is to identify the components of social and economic systems life cycle. To achieve this aim, the article describes the traits and characteristics of the system, determines the features of social and economic systems functioning and is applied a systematic approach in the study of their life cycle. The results of the analysis. It is determined that the development of social and economic systems has signs of cyclicity and is explained (...) methodologically by the axiomatics, rules and laws. Understanding of circular patterns has been formed long ago and now is recorded by scientists monitoring the properties of natural and artificial environment of human activity. During the study, it was found out that in scientific literature there is no unified description of the life cycle elements of social and economic systems at personal, micro, meso, macro and global levels. The paper investigates the cyclical patterns in multilevel social and economic systems for a human, employee, family, product, company, city, industry, elite, macroeconomic indicators, humanity, global processes, global economic system and the Universe. It is noted that at grass-roots administrative levels of the global environment of a human life activity system, a thesis about the cyclicity of development and the stages of the life cycle is considered by a wide circle of scientists and is doubtless. On hierarchically higher management levels of the global environment of human activity system, the scientists noticed the similar patterns of the cyclical nature. Problematic and discussion questions about cyclic development of social and economic systems are identified: the uncertainty of the driving force source of repeated changes; the vague distinction between systemic (internal) and off-system (external) influence on development; the lack of a unified description of development nature at different managerial levels; the use of different descriptive terms for the same constituent elements of repeated changes (period, stage, phase, wave, cycle); the uncertainty of the number of repeated changes constituent elements; the absence of an identification mechanism of the exact time of changes in the constituent elements of repeated changes; the surface description of out-of-system period of the subjects activity («before-system» period of creation and «after-system» period of liquidation); attaching more importance to primary and less importance to ultimate component elements of the repeated changes; the lack of reliable mechanism for predicting and forecasting the dynamics of constituent components of repeated changes. It is noted that all social and economic systems are developed within repeated changes and they have the same attributes of cyclicity: the fluctuation of indicators is marked that characterize the condition of the subject; the presence of system (from creation to liquidation) and out-of-system (creation – «design» and liquidation – «disposal») periods are noted; the subjects are created by the actions of other subjects (that is, subjects do not arise «out of nowhere», but are the result of actions of other subjects – «constructors»); after cessation of subjects functioning, their resources are used by other subjects (that is, the subjects do not disappear «nowhere», and they are transformed into the resources of other subjects – «recovery»); a unidirectional life cycle from «birth» to «death» is observed in the subjects; the subjects do not have to undergo the whole life cycle (each time might be the last); the subjects display similar changes of the indicators during their activity; ascending, peak and descending fluctuations of indicators are observed in the subjects; minor fluctuations occur in the constituent elements; the subjects have individual nature of indicator fluctuations and duration of activity. Conclusions and directions of further researches. The scientific novelty of the study is identification structure of life cycle of social and economic system with definitions of: common («before-system state», «growth», «stabilization», «reduction», «after-system state») and specific («creation», «slow growth», «rapid growth», «growth stabilization», «short stabilization», «rapid reduction», «slow reduction», «liquidation») constituent elements of repeated changes; marginal borders of indicators; dynamics of constituent elements of life cycle; key points of changing nature of the indicators dynamics. Identification of the life cycle of social and economic systems characterizes potentially possible limits of their activity in time and provides the possibility of further research of aspects of the cyclical development for methodological basis formation and the development of applied measures of systemic development in the areas of marketing and management innovations. (shrink)

Many epistemic anomalies of the neoclassical research programme originate from its ontologically reductionist meta-axioms, which predicate how economic macro-systems are constituted from their micr...

This paper discusses two key claims of Tomas Sedláček’s Economics of Good and Evil in the light of Catholic social teaching—that mainstream economics cannot grasp the domain of the human because of its focus on ‘utility-maximisation’ and that human interiority with its wild desires is at the roots of economic dynamics. I call these claims the ‘H-claim’ and the ‘I-claim’ respectively. After having clarified these claims I look at Catholic social teaching and its perspective on interiority and on (...) the relationship between personal micro-relations and structural macro-relations. In this light, I suggest, in a third step, an understanding of ‘the inner dimension’ of economics and social thinking making use of the concept of intangible infrastructures. (shrink)