Much work in economics, the social sciences, and elsewhere takes as it starting oint a somewhat unrealistic conception of rationality- a conception that ignores or downplays both the temporal and the situated aspects of human reason. Biological reason, I shall argue, is better concieved as an iterated process of adaptive response made under extreme time pressure and exquisitely keyed to a variety of external structures and circumstances.

Slight absolute changes in the Shanghai Stock Exchange Index (SHSE) corresponded to the city’s immediate increases in coronary heart disease deaths and stroke deaths. Significant fluctuations in the Shenzhen Stock Exchange Index (SZSE) corresponded to the country’s minor, delayed death rates. Investors deal with money, greed, stock volatility, and risky decision-making. Happy people live longer and better. We ask the following question: Who are the investors with the highest and most sustainable stock happiness, and why? Monetary wisdom asserts: Investors apply (...) their deep-rooted values (avaricious love-of-money aspiration and locus of control, Level 2) as a lens to frame critical concerns in the proximal-immediate (Shanghai Stock Exchange Index changes, Level 1) and the omnibus-distal contexts (domicile: city vs. country, Level 2) to maximize expected utility (portfolio changes, Level 1) and ultimate serenity (stock happiness, Level 1). We collected multilevel data—the longitudinal SHSE and 227 private investors’ daily stock happiness and portfolio changes for 36 consecutive trading days in four regions of China. Investors had an average liquid asset of $76,747.41 and $54,660.85 in stocks. This study is not a “one-shot” game with “nothing at stake.” We classified Shanghai and Beijing as the city and Shenzhen and Chongqing as the country. Our cross-level 3-D visualization reveals that regardless of SHSE volatility, investors with low aspiration, external control, and country domicile enjoy the highest and most sustainable stock happiness with minimum fluctuations. Independently, investors with low aspiration, external control, and country domicile tend to make fewer portfolio changes than their counterparts. Behaviorally, less is more, debunking the myth—risky decisions excite stock happiness. Our longitudinal study expands prospect theory, incorporates attitude toward money, and makes robust contributions to behavioral economics and business ethics. We help investors and ordinary citizens make happy, healthy, and wealthy decisions. Most importantly, the life you save may be your own. (shrink)

I argue that much current thinking on externalities—at least among “lay political economists” (but even, on occasion, among professional economists)—is saddled with two analytical errors. The first is what I call coextensivism: the conflation of public goods and externalities. The second error is what I call externality profligacy: the conflation of economic and “social” externalities. The principal dangers presented by these two “dogmas on externalities” are that, while in their grips, we are under-disposed to seek (...) negotiated, market-based solutions (of a broadly Coasean nature) to challenges posed by economic externalities, and over-disposed to seek coercive, state-based solutions (of a broadly Pigouvian nature) to challenges posed by social externalities. (shrink)

Francesco Guala has developed some novel and radical ideas on the problem of external validity, a topic that has not received much attention in the experimental economics literature. In this paper I argue that his views on external validity are not justified and the conclusions which he draws from these views, if widely adopted, could substantially undermine the experimental economics enterprise. In rejecting the justification of these views, the paper reaffirms the importance of experiments in economics.

(2001). The Invocation of External Economic Constraint: A Genealogy of the Concept of Globalization in the Political Economy of the British Labour Party, 1973—2000. The European Legacy: Vol. 6, No. 2, pp. 233-249.

(2001). The Invocation of External Economic Constraint: A Genealogy of the Concept of Globalization in the Political Economy of the British Labour Party, 1973—2000. The European Legacy: Vol. 6, No. 2, pp. 233-249.

(2001). The Invocation of External Economic Constraint: A Genealogy of the Concept of Globalization in the Political Economy of the British Labour Party, 1973—2000. The European Legacy: Vol. 6, No. 2, pp. 233-249.

It is sometimes argued that experimental economists do not have to worry about external validity so long as the design sticks closely to a theoretical model. This position mistakes the model for the theory. As a result, applied economics designs often study phenomena distinct from their stated objects of inquiry. Because the implemented models are abstract, they may provide improbable analogues to their stated subject matter. This problem is exacerbated by the relational character of the social world, which also sets (...) epistemic limits for the social science laboratory more generally. (shrink)

It is sometimes argued that experimental economists do not have to worry about external validity so long as the design sticks closely to a theoretical model. This position mistakes the model for the theory. As a result, applied economics designs often study phenomena distinct from their stated objects of inquiry. Because the implemented models are abstract, they may provide improbable analogues to their stated subject matter. This problem is exacerbated by the relational character of the social world, which also sets (...) epistemic limits for the social science laboratory more generally. (shrink)

The economic stability of a country, such as Pakistan is dependent on the construction of mega-projects, such as the China-Pakistan Economic Corridor. However, certain external factors and project characteristics may delay the construction of infrastructure projects; scholars have not investigated the development of CPEC from this perspective. In addition, the COVID-19 outbreak has hindered CPEC initiatives. This analysis will examine the effect of external environment factors on CPEC, and benchmark the project’s effects on economic stability through CPEC’s (...) development by incorporating 523 samples obtained from employees of various CPEC projects. Structural equation modeling was used to analyze all hypotheses proposed here on AMOS 21.0 tools. According to the findings of this study, the CPEC external environment and project benchmark characteristics have a negative effect on the construction of CPEC development. Furthermore, the development of CPEC is found to have a significant effect on economic stability. However, fear of COVID-19 has weakened the relationship between CPEC development and economic stability. Finally, we also discuss the implications and limitations of the study. (shrink)

As part of the roundtable “Economic Sanctions and Their Consequences,” this essay discusses whether economic sanctions are morally acceptable policy tools. It notes that both conventional and targeted sanctions not only often fail to achieve their stated objectives but also bring about significant negative externalities in target countries. Economic dislocation and increases in political instability instigated by sanctions disproportionately affect the well-being of opposition groups and marginalized segments of society, while target elites and their support base (...) remain insulated from the intended costs of foreign pressure. Sanctions might also incentivize target governments to use repressive means to consolidate their rule and weaken the opposition. Given these serious shortcomings, I argue that sanctions are ethically problematic tools of foreign policy. Nonetheless, this does not mean that sanctions should be rejected outright, as there might be cases where sanctions are the only viable option, and they might work effectively under certain circumstances. Rather, the essay suggests that policymakers should apply more caution in considering the use of sanctions given their low probability of success, and should be more concerned with the delicate balance between political gain and civilian pain before levying sanctions, whether comprehensive or targeted. (shrink)

According to a classical work on experimental design internal validity “refers to the approximate validity with which we infer that a relationship between two variables is causal or that the absence of a relationship implies the absence of cause”. External validity “refers to the approximate validity with which we can infer that the presumed causal relationship can be generalized to and across alternate measures of the cause and effect and across different types of persons, settings, and times”. Since then, these (...) have been the accepted definitions, with slight variations, of both concepts. However, there have been deep differences in interpreting the scope and limits of validity concepts in economics. From theory-driven experimental designs that defend the priority of the internal over the external validity to those researches that are demanding the importance of external validity in economics, we can find the most diverse points of view. What can experimental ethics learn, then, from recent debates on external and internal validity in experimental economics? If we want to elicit moral intuitions into the lab, are we testing moral theories that way? Could intuitions be generalized “across different types of persons, settings, and times”? Is that really possible? (shrink)

A series of studies in experimental philosophy have revealed that people blame others for foreseen negative side effects but do not praise them for foreseen positive ones. In order to challenge this idea, also called the Knobe effect, we develop a laboratory experiment using monetary incentives. In a game-theoretic framework we formalize the two vignettes in a neutral way, which means that we abstain from the use of any specific language terms and can easily control and vary the economic (...) parameters of the situation. We confirm the Knobe effect in one situation and present situations in which the effect vanishes or even reverses. Our results are in line with a theoretical approach where the assessment of intention is not based on the action itself but on the underlying motive – as modelled in Levine. (shrink)

Externalities are an important concept in economic theories of market failure, aiming to justify state regulation of the economy. This article explores the concept of externalities from a philosophical perspective. It criticizes the utilitarian nature of economic analyses of externalities, showing how they cannot take into account values like freedom and justice. It then develops the analogy between the concept of externalities and the 'harm principle' in political philosophy. It argues that the harm principle (...) points to the need for a theory of basic interests to judge when a harm is imposed. Similarly, externality analyses should use such a theory of basic interests as the basis for judgments about legitimate state intervention. This proposal is defended against objections, and illustrated with a case study of the US Supreme Court's ruling on the Affordable Care Act, which shows how the judicial reasoning implicitly interprets externalities in terms of basic interests. (shrink)

Pigovian policy is developed in economic theory as an efficient resolution to externality problems. The use of this type of policy to resolve real-world externality problems, including climate change in the form of carbon taxes, assumes that the Pigovian policy result derived in theory holds in the real world. By examining the bridging conditions from theory to the real world, I argue that this assumption holds only in an ambiguously defined subset of externalities. It is thus unclear when (...) Pigovian policy could be coherently applied, which is problematic given its widespread use in critical policy contexts. (shrink)

This study aims to analyze the impact of Foreign Direct Investment, external debt and population growth on economic progress of Pakistan by using time series data from 1980 to 2014. It analyzes the correlation between Gross Domestic Product,FDI, external debt and population growth. Augmented Dickey Fuller test has been used to check stationarity in time series data. To evaluate the empirical results multiple regression method is used. GDP has been used as a dependent variable while FDI, external debt and (...) population as independent variables. Findings of this paper show the positive and significant impact of FDI, and population growth on GDP but external debt has negative impact on GDP. (shrink)

An important part of what it means for agents to be situated in the everyday world of human affairs includes their engagement with economic practices. In this paper we employ the concept of cognitive institutions in order to provide an enactive and interactive interpretation of market and economic reasoning. We challenge traditional views that understand markets in terms of market structures or as processors of distributed information. The alternative conception builds upon the notion of the market as a (...) ‘scaffolding institution’. Introducing the concept of market as a ‘socially extended’ cognitive institution we go beyond the notion of scaffolding to provide an enactive view of economic reasoning that understands the market participant in terms of social interactive processes and relational autonomy. Markets are more than inert devices for information processing; they can be viewed as ‘highly scaffolded’, where strong constraints and incentives predictably direct agents’ behavior. Building on this idea we argue that markets emerge from (a) the economic interaction of both supply and demand sides, in continual and mutual interplay, and (b) more basic social interactions. Consumer behavior in the marketplace is complex, not only determining the market price, but also extending the consumer’s cognitive processes to reliably attain a correct evaluation of the good. Moreover, this economic reasoning is socially situated and not something done in isolation from other consumers From a socially situated, interactive point of view buying or not buying a good is something that enacts the market. This shifts the status of markets from external institutions that merely causally affect participants’ cognitive processes to social institutions that constitutively extend these cognitive processes. On this view the constraints imposed by social interactions, as well as the possibilities enabled by such interactions, are such that economic reasoning is never just an individual process carried out by an autonomous individual, classically understood. In this regard, understanding the concept of relational autonomy allows us to see how economic reasoning is always embodied, embedded in, and scaffolded by intersubjective interactions, and how such interactions make the market what it is. (shrink)

Much work in economics, the social sciences, and elsewhere takes as its starting point a somewhat unrealistic conception of rationality — a conception that ignores or downplays both the temporal and the situated aspects of human reason. Biological reason, I shall argue, is better conceived as an iterated process of adaptive response made under extreme time pressure and exquisitely keyed to a variety of external structures and circumstances. These external structures and circumstances act as filters and constraints on the spaces (...) of possible real-time responses. Paramount among such structures and circumstances, in the case of human reason, are the cultural artifacts of language and of social and economic institutions. Models of rational decision making need to situate the reasoning agent as just one element in a complex and time-sensitive feedback system in which such external structures play a major role. It is therefore crucial that we understand the complex and mutually modulatory interplay between individual cognition and the extended environmental loops in which it participates. I shall explore a few potential avenues for developing such an understanding including neural network research and multiple time scale.. (shrink)

In the context of the digital economy development, the priority component of the economic security of an enterprise is changing from material to digital, constituting an independent element of enterprise security. The relevance of the present research is driven by the need to solve the issue of modernizing the economic security of the enterprise taking into account the new risks and opportunities of digitalization. The purpose of the academic paper lies in identifying the features of preventing internal and (...) external negative influences (threats) in order to guarantee the effective and stable functioning and dynamic social development of the enterprise in the context of digitalization. The research methods are as follows: general scientific research methods, in particular, logical analysis, theoretical substantiation, methods of induction and deduction, formalization and generalization, statistical observation. Results. It has been proposed to introduce the concept of “digital security of the enterprise” for replacing the concept of “information component of economic security” in order to bring the terminology in line with new economic realities. The implementation of the “black box” model has made it possible to identify the latest risks and threats to the economic security of an enterprise within the conditions of the digitalization that differs from the existing ones. The assessment of enterprises’ digital security of the European Union member states has revealed that the digital security level does not depend on the size of the country, however, it is influenced by the institutional environment (in particular, digital development tools in the EU) and the size of enterprises. Also, within the research framework, an assessment of the digital security level of enterprises in the context of digitalization has been proposed. In order to characterize enterprises by the level of digital security, a calculation procedure using the coefficient method has been proposed. (shrink)

The origins of both economic and philosophical value theory are examined and shown to be closely related. The status of neo-classical value theory is that it is internally flawed in any attempt to describe the real world. Cost-benefit analysis as it applies to the valuation of environmental agents relies upon the claim that this neo-classical theory has a particular status in optimal welfare maximisation and, therefore, suffers the same problems of internal consistency. Economic valuation of the environment is (...) not a scientific process derived from external law but a social process relying upon social agreement. Alternatives to economic valuation are considered and may possess a more plausible social base. However, all environmental valuation is at odds with beliefs based upon the existence of objective and intrinsic values. (shrink)

Economic theory has generally acknowledged the role that institutions have in shaping economic space. The distinction, however, between physical and institutional descriptions of economic activity has not received adequate attention within the mainstream paradigm. In this paper I show how a proper distinction between the physical and institutional space in economic models will help clarify the concept of externality and provide a better interpretation of the relationship between externality and nonconvexity. I argue that within the Arrow-Debreu (...) framework externality should be viewed as incongruence between the physical and institutional descriptions of the economic space. I also argue that, contrary to conventional wisdom, detrimental externality has no special association with nonconvexity. Starrett's (1972) fundamental nonconvexity has to do with the specific institutional structure of Arrow markets rather than the detrimental nature of externality. Indeed, Arrow markets may not eliminate externalities. In a similar vein, it is not detrimental externality, however intense, that causes the production possibility set to become nonconvex, as argued by Baumol and Bradford (1972), but the particular interpretation of intensity that would make even conventional production possibility sets nonconvex. These points become apparent when one distinguishes between the convexity of the physical and institutional production sets. (shrink)

Ever since Sen criticized the notion of internal consistency of choice, there exists a widespread perception that the standard rationalizability approach to the theory of choice has difficulties in coping with the existence of external norms. We introduce a concept of norm-conditional rationalizability and show that external norms can be made compatible with the methods underlying the traditional rationalizability approach. To do so, we characterize norm-conditional rationalizability by means of suitable modifications of revealed preference axioms that are well established in (...) the theory of rational choice on general domains as analysed in contributions by Richter and Hansson, for example. We compare our approach to alternative suggestions that have appeared in response to Sen's criticisms, and we discuss its links to Sen's notion of self-imposed choice constraints. (shrink)

Pollution, higher traffic noise, or a poisoned river are all examples of externalities---costs which are imposed by an action but which are not built in to the price of that action. One of the problems of economic theory is whether, when analysing the desirability of a new road, for example, the costs that occur as externalities can be fully incorporated into the price of that road. Dr Andreas Papandreou has provided a book which fully explains and analyses (...) the ideas lying behind the theory of externalities. Papandreou has made a survey of the various methodological approaches taken by economists to the issue of eternalities, and the failure of some markets to reconcile individual and social costs and benefits. He tackles the difficult issue of defining or characterizing externalities, surveys the current literature, and investigates the effect that externality theory has had on major economic issues. His major theme is an exploration of institutional inefficiency and the implications of incorporating organizational costs into economic models. Written in a non-technical style, this book is suitable not only for those economists who make a study of externalities, but for those who need to understand the theory for their own fields of research, and for postgraduate students. (shrink)

This book presents a theoretical treatment of externalities, public goods, and club goods. The new edition updates and expands the discussion of externalities and their implications, coverage of asymmetric information, underlying game-theoretic formulations, and intuitive and graphical presentations. Aimed at well-prepared undergraduates and graduate students making a serious foray into this branch of economics, the analysis should also interest professional economists wishing to survey recent advances in the field. No other single source for the range of materials explored (...) is currently available. Topics investigated include Nash equilibrium, Lindahl equilibria, club theory, preference-revelation mechanism, Pigouvian taxes, the commons, Coase Theorem, and static and repeated games. The authors use mathematical techniques only as much as necessary to pursue the economic argument. They develop key principles of public economics that are useful for subfields such as public choice, labor economics, economic growth, international economics, environmental and natural resource economics, and industrial organization. (shrink)

This book presents a new transhistorical framework of defining production, work and consumption. It shows that they all share the common feature of intentional physical transformation of something external to the agent, at some point in time.

The case of Twin B involves the decision to send a newborn to a less intensive Level 2 special care nursery (SCN) than to the Level 3 neonatal intensive care unit (NICU) that is considered optimal by the physician. The physician’s acceptance of the transfer is against the child’s best interest and is due to parental convenience. In analyzing the case, we reject the best interest standard. Our rejection is partly supported by the views of Douglas Diekema, John Hardwig, and (...) Lannie Ross. Instead of the best interest standard, we offer and defend an approach we base on a microeconomic analysis of externalities, such as those involved with automobile emissions. This extends our previously presented general microeconomic approach to patient decision-making. It provides a clearer way to evaluate situations, like those of Twin B, in which burdens faced by family members may be used to determine the appropriate level of treatment for a decisionally incapable patient. (shrink)

Negative externalities pervade immigration law. For example, immigration rules can cause negative economic externalities by barring foreign nationals whose participation would make labor markets more efficient. On the other hand, sweeping executive-branch measures to assist immigrants may unduly expand executive power and yield adverse effects on governance. This essay divides immigration's negative externalities into three categories: economic, relational, and rhetorical. It then argues for specific legal and policy measures, including tailored executive discretion over deportation; more (...) robust court review of immigration restrictions that affect foreign nationals outside the United States; and classifying deportation of lawful permanent residents of the United States as punishment requiring advance notice that specific acts can prompt removal, like the notice the Constitution's Ex Post Facto Clause requires for criminal laws. (shrink)

This article aims to measure both the economic and social value of Tecnocampus, a Science and Technology Park in its region of influence. Our results show that the impact of Tecnocampus has a socioeconomic cost–benefit ratio of 2.39. Measuring the impact of this multifaceted centre requires a diverse approach. Although the methods used are not new, the combination of them presents a novel approach to measure the impact of an institution of this nature. We have measured the economic (...) value with the Input–Output model, including the Social Accounting Matrix. On the other hand, for social value calculations, we have used cost–benefit analysis adding measurements of firm localisation to estimate externality effects. Our main results present an economic value of more than 0.054% of the Catalan GDP, whereas the employment impact represents almost 0.37% of total employment in the region. The total economic multiplier of Tecnocampus activity is estimated to be 1.89. Social value generates an additional 0.50 euros to the multiplier according with our analysis. This additional social value represents an increase of productivity estimated in 20 million euros of operational income for Catalan firms and the creation of seven additional firms in the Maresme region as a result of knowledge spillovers. The social value also includes reduction of over-education caused by a better matching between graduates and enterprises, a more direct application of research, and an increase in consumer surplus. Finally, we discuss the policy implications of our findings to promote investments in this kind of infrastructures. (shrink)

The essays in this book discuss human behavior and the institutions of capitalism. The essays are non-technical and are written so as to be accessible to students of all disciplines and to all other persons interested in capitalism and in economic behavior. They often present unconventional views of the topics they discuss. Those containing unconventional views discuss self-interested behavior, selfish gene theory, the meaning and social function of private ownership, the externality problem, the nature of the firm and the (...) rise of capitalism. The essays are not meant to be a textbook, but they offer a useful supplementary reading source for courses in business, economics and law that deal with human behavior in the marketplace and with capitalism, ownership, markets and firms. (shrink)

Originally published in 1954, on behalf of the National Institute of Economic and Social Research, this book presents a general review of British economic statistics in relation to the uses made of them for policy purposes. The text begins with an examination, in general terms, of the ways in which statistics can help in guiding or assessing policy, covering housing, coal, the development areas, agricultural price-fixing, the balance of external payments and the balance of the economy. The problems (...) of statistical application are then separately discussed under the headings of quality, presentation and availability, and organization. A full bibliography and reference table of principal British economic statistics are also included. This book will be of value to anyone with an interest in British economic history and statistics. (shrink)

The axiological question of the role of economic values in the configuration of science is analyzed here following several steps: 1) the acceptance of the presence of values in science (among them, economic values in connection with scientific progress); 2) the clarification of the realms of values in science, which gives room for an "economics of science"; 3) the analysis of economic values in the internal perspective (cognitive and methodological), which is called "economy of research"; 4) the (...) examination of external economic values of science as social activity and in the uses and applications of science; and 5) the assessment of the possibility of an "economic axiology of science" (i.e., the articulation of economic values as a system where economic dimension of rationality should have an important task). The paper seeks an alternative vision to those already available, insofar as it is looking for new aspects of economic values, such as those involved in scientific results or outcomes, in addition to those considered in scientific aims and processes. (shrink)

This paper is focused on the theory of drives, particularly on its economic model, which was an integral part of Freud’s original formulation. Freud was aiming to make a link between the psychic energy of drives and the biophysical rules of nature. However, he was not able to develop this model into a comprehensive system linking the body and the mind. The further development of psychoanalytic theory, in various attempts to comprehend the theory of drives, can be described as (...) taking different approaches. Some of them equate drives with bodily impulses, others abandon the economic model, a few stay with Freud’s original model. I believe that the Friston notion of free energy and the hierarchical model of the brain allows us to develop this model and to integrate the economic model into some contemporary theories of drives. I argue against those theories equating drives with biological impulses. My arguments are supported by Freud’s project itself but also by recent developments within neuro-psychoanalysis describing the process of mentalizing homeostasis, interoceptive signals and relations with caregivers. I argue for those theories which see the drives as psychic forces, which through developmental processes and cathexes acquire aims and objects, and become intertwined with impulses originating internally and externally, such as affect, interoceptive impulses, perception of the external world, and impulses from erotogenic zones in particular. Here, I present my analysis of the compatibility and consistency of free energy and the hierarchical model perspective, and two psychoanalytical traditions of thoughts: French psychoanalysis and the post-Kleinian school of British psychoanalysis. In particular, my analysis focuses on the contemporary Kleinian notion of unconscious phantasies, especially Bronstein’s description of their semiotic aspects. Secondly, I look at Segal’s view of drives as dialectic forces of adaptation vs. conservatism. Analyzing the French tradition, I focus on Green’s perspective on the drives, Lacan’s distinction between drives and desire, and Penot’s description of the process of subjectivation. I conclude that free energy, as described by Friston, can be seen as a source of the drives’ energy and the process of minimizing it is an equivalent of what Freud described as binding the free energy, in which psychic unbound energy acquires distinctive features and becomes bound. (shrink)

We define an evolutionary process of “economic Darwinism” for playing the field, symmetric games. The process captures two forces. One is “economic selection”: if current behavior leads to payoff differences, behavior yielding lowest payoff has strictly positive probability of being replaced by an arbitrary behavior. The other is “mutation”: any behavior has at any point in time a strictly positive, very small probability of shifting to an arbitrary behavior. We show that behavior observed frequently is in accordance with (...) “evolutionary equilibrium”, a static equilibrium concept suggested in the literature. Using this result, we demonstrate that generally under positive (negative) externalities, economic Darwinism implies even more under- (over-)activity than does Nash equilibrium. (shrink)

The micro-level corporate social responsibility (CSR) literature has underscored the economic benefits of an organization's CSR investments, such as bolstering employees' organizational commitment and improving work performance. Yet, research on the potential influence of CSR in fostering socially oriented outcomes among employees has been rather scarce. This study aims to investigate the influence of CSR on employees' internal whistleblowing behaviors and the underlying mechanisms. A three-time-point survey was distributed across the service, manufacturing, construction, and financial insurance industries in Chinese (...) enterprises. The findings reveal that both internal and external CSR positively impact employees' internal whistleblowing behaviors through the mediating role of moral courage, with internal CSR demonstrating a stronger effect. Organizational loyalty positively moderates the mediating role of moral courage in the relationship between internal CSR/external CSR and internal whistleblowing behaviors. Theoretically, this study presents a pioneering endeavor in establishing the link between CSR and employees' internal whistleblowing behaviors, underscoring the significant role that employees' perceptions of CSR play in enhancing societal well-being and ethical governance. Besides contributing to the micro-level CSR literature, this study also provides practical insights for organizations seeking to leverage CSR as a tool for promoting employees' ethical conduct. (shrink)

Human life in contemporary society is extremely complex and there are various external factors that directly affect the realization in the individual ends. In this work I analyze the effects of the global market economy, manifested by a mode of production and distribution of goods and services in the form of a global network of economic relations, which involve people, transnational corporations and political and social institutions in moral sphere of people, affecting their choices and the realization of these (...) choices. Individual freedom can be understand as a freedom to realize our choices in the environment of a global economic market, but it is still problematic in the sense that the choices of goods and services available in this market do not reflect individual choices, but a set of preferences standardized according to the market itself. In this paper I will reflect about the individual freedom in economic globalization pointing from the debate between Pettit and Berlin that social freedom advocated by Republican Petit can be satisfactory for a start. (shrink)

Now more than ever it is clear that the global economy needs to be assessed and governed from a moral point of view. Such moral assessment can, however, come in at least two quite different forms. Political philosophers have tended to focus on a range of issues (e.g. poverty, human rights, or general distributive justice) whose basic moral importance is “external” to and wholly independent of how the global economy is socially organized. The result has been relative neglect of a (...) quite different class of “internal” moral issues, which do in various ways depend on the complex legal and social relations that now organize the global economic scene. These include a dizzying array of politically important but poorly understood fairness concerns—concerns such as “non-discrimination,” “special and differential treatment,” “fair trade,” “fair play,” “fair competition,” “level playing fields,” “equitable growth,” “fair wages,” and “exploitation.” My aim in this discussion is to suggest a framework for understanding how several such fairness notions might be systematically connected and have an internal rather than external character. Specifically, I suggest that the content and internal nature of several such fairness notions can be explicated in terms of a more fundamental idea of “structural equity.” From the point of view of political philosophy, the issue turns on the sorts of principles that might ground moral assessment of the global economy. External principles are justified and apply quite independently of what the global economy and its social organization happens to be like. Humanitarian principles are a natural example: in asking whether or not the current global economy is set up so as to bring as many people as possible out of poverty, the assumed goal of poverty reduction can be seen as important and morally necessary quite independently of how the global economy is institutionally organized, and indeed independently of its very existence. Internal principles, by contrast, are not justified, and do not apply, independently of the global economy and its organizing institutions.. (shrink)

Comparing the degree of openness of the economy of Poland and the Netherlands, we can say the following. The Netherlands is more dependent on foreign trade than Poland. The Netherlands export quota reaches almost 50%, unlike 41,37% in Poland in 2016. However, Poland has become more import-dependent. Poland, in contrast to the Netherlands, is continuing to increase the indicators of "economic globalization". To date, the Netherlands has been pursuing more moderate foreign trade policy and trying to protect itself from (...) external risks by focusing on an internal market with high purchasing power. On the contrary, Polish politics tries to focus on the new markets for its products in order to increase the prosperity and well-being of its citizens. Poland as a country and an economic entity has made a qualitative leap in its development. The economy of this country has become more open and integrated into the world economy. (shrink)

The need to design and build according to the resident’s demands is the best possible option, in today's economic market. Nowadays, buildings that ensure a good thermal performance is increasing. This article compares the thermal transmittance coefficient (U-value) between a wall with a simple composition of bricks, plaster and graffito without thermal insulation and a wall composed of stone wool, anti-vapors membrane, air gap and terracotta tiles (ventilated façade). This comparison explains the thermal benefits and the best ways to (...) increase the thermal performance of a building, in a particular case of Polis University, Tirana, Albania. The results and conclusions drawn from this article are factual indicators with concrete values that professionals should take into consideration since in the initial stage of design. Choosing the best layers for a façade may result in the creation of a comfortable indoor thermal comfort for the inhabitance in a micro perspective. A good thermal insulation improves the building’s thermal balance and contributes decisively to the thermal comfort of the occupants, which means a considerable reduction in heating and cooling loads, in order to increase the building’s energy efficiency. The measurements of this comparative analysis will be done by using a specific instrument such as Testo 435-2. Atmospheric conditions will also be considered during the measurements, respectively for internal and external environments. (shrink)

Whether dealing with contracts, tort actions, or government regulations, lawyers are more likely to be successful if they are conversant in economics. Economics for Lawyers provides the essential tools to understand the economic basis of law. Through rigorous analysis illustrated with simple graphs and a wide range of legal examples, Richard Ippolito focuses on a few key concepts and shows how they play out in numerous applications. There are everyday problems: What is the social cost of legislation enforcing below-market (...) prices, minimum wages, milk regulation, and noncompetitive pricing? Why are matinee movies cheaper than nighttime showings? And then there are broader questions: What is the patent system's role in the market for intellectual property rights? How does one think about externalities like airport noise? Is the free market, a regulated solution, or tort law the best way to deliver the "efficient amount of harm" in the workplace? What is the best approach to the question of economic compensation due to a person falsely imprisoned? Along the way, readers learn what economists mean when they talk about sorting, signaling, reputational assets, lemons markets, moral hazard, and adverse selection. They will learn a new vocabulary and a whole new way of thinking about the world they live in, and will be more productive in their professions. (shrink)

What are the reasons for theory change in economics? – The author tries to give a sober answer on the basis of his epistemological model reconstructing the internal aspects of theory change. It is conjectures that a more subtle approach including the external facets can be provided with the “communicative rationality” concept. Key words: economics, theory change, internalism, external factors .

Four dogmas have shaped modern neoclassical economics. The first proposes that markets may fail to allocate resources efficiently, that is, to those willing to pay the most for them. The second asserts that choices, particularly within markets, reveal preferences. The third is the assumption that people always make the choices they expect will benefit them or enhance their welfare. The fourth dogma holds that perfectly competitive markets will allocate resources to their most beneficial uses. This is the doctrine of the (...) invisible hand. I argue that these dogmas of applied welfare economics should be abandoned. One consequence of doing so will be an increased interest in the institutional context of production. A second will be a turn toward empiricism. (shrink)

The environmental economic response to mainstream neo-classical economics’ disconnect from the natural world was to value external environmental costs and include those into decisions about human welfare. The ecological economic response, heavily influenced by systems ecology, brought the concept of ecological scale or carrying capacity, as a limit to human choice. The divisions between these two theories are not merely cosmetic as illustrated by the highpolitical stakes in recent economic and environmental debates. This article concerns itself specifically (...) with the question how Christian economists position themselves towards the unfolding ecological and economic crises. It is shown that the main positions taken in the policy debates on economy and ecology are closely mirrored in the broader Christian economic community, raising the question whether the Christian economic tradition does have anything particular to offer in response to the ecological and economic crises. We approach this question from two angles, first, reviewing the literature on an earlier debate by the Association of Christian Economists on what Christian economists should be doing and, second, reviewing the literature on the relationships between Christianity and environmental beliefs and behaviour. With reference to eco-theological literature on the varying theological views on the relationship between humanity and the rest of creation, and on different expectations of the eschaton, it is shown why such diverging positions are taken among Christian economists. Nevertheless, the objective reality of Jesus Christ demands a particular Christian ethics and behaviour, which in turn, kindles fertile questions for Christian economists in their practical engagement withthe economic and ecological sciences and with broader culture. (shrink)

Underdevelopment increases unemployment, which further worsens poverty levels among people in rural communities and inequality in the country at large. At present, government financial institutions are failing to reach rural communities which they are meant to develop. The inability of such communities to access capital from formal financial institutions drives them to devise alternative means through which they can survive and improve their livelihoods. Stokvels are effective self-help economic development strategies in rural South Africa which do not depend on (...) external forces but rely totally on the determination of members of the community to improve their lives themselves. The creation of self-help projects such as stokvels are founded on the principle of ubuntu, which goes beyond the enrichment of the individual. Stokvels constitute an ethical framework that could improve the economic distribution in modern-day society. Adopting indigenous African ways of dealing with African problems could therefore prove an effective tool for helping to alleviate poverty in rural areas. Keywords : South Africa, development, unemployment, rural communities, unmasking, social capital, stokvels, ubuntu. (shrink)

Economic growth is terribly important. Small differences in growth rates eventually overwhelm most other considerations, so the clustering and innovation externalities that create growth differences deserve far more public attention. Unfortunately most people yawn at growth theory; they prefer stories about conflict, status, moral fiber, heroes, and epic changes.

This paper describes the general structure of an environmental philosophy. There can be many such philosophies, and those with their roots in economic theory have been extensively studied recently. Specific examples cited in the paper include the work of David Pearce and Robert Goodin. Economics-based philosophies can founder on the issue of externalities and a misplaced attempt to provide a comprehensive approach to valuing nature as a bundle of goods and services. It is argued that it is dangerously (...) easy to slide from considering nature as a standing reserve of processes and objects that have the potential to satisfy human desires to the idea that it is nothing more than that. In general, the consequentialist basis of economics limits its usefulness in contributing to informed environmental decisions. But there is room for a sensitive use of institutional environmental economics as a partial guide for our reflections and choices. Any such development should take on board the existence of a plurality of perspectives on fundamental issues and the pluralism of values that can be found within moral theory itself. (shrink)

We conduct quantitative and qualitative analysis of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing. Our results show external whistleblowers have less tenure with the organization, greater evidence of wrongdoing, and they tend to be more effective in changing organizational practices. External whistleblowers also experience more extensive retaliation than internal whistleblowers, and patterns of retaliation by management against the whistleblower vary depending on whether the whistleblower reports internally or externally. We discuss implications for organizations and whistleblowers, (...) and we conclude that researchers need to develop different theoretical explanations of internal and external whistleblowing processes. (shrink)

We conduct quantitative and qualitative analysis of 33 cases of internal and external whistleblowers wrongfully fired for reporting wrongdoing. Our results show external whistleblowers have less tenure with the organization, greater evidence of wrongdoing, and they tend to be more effective in changing organizational practices. External whistleblowers also experience more extensive retaliation than internal whistleblowers, and patterns of retaliation by management against the whistleblower vary depending on whether the whistleblower reports internally or externally. We discuss implications for organizations and whistleblowers, (...) and we conclude that researchers need to develop different theoretical explanations of internal and external whistleblowing processes. (shrink)