History of Economic Thought

The Origins and Interpretation of the Prebisch-Singer Thesis

by Richard Toye

The Entrepreneur in Economic Theory: From an Invisible Man Toward a New Research Field

by Vera Rocha

FEP Working Paper No 459

Mainstream economics had great difficulty in fitting entrepreneurship into its theory and for long time the... more Mainstream economics had great difficulty in fitting entrepreneurship into its theory and for long time the theoretical firm remained “entrepreneurless”. However, from the early 20th century onwards, we identify strong attempts of key economists to recognize the role of the entrepreneur as an explanatory force of several economic phenomena. This paper analyzes the evolution of economic thought on entrepreneurship, and in particular the path through which the entrepreneur (re)entered into economic theory over the 20th century, leading to the new and increasingly independent research field Economics of Entrepreneurship. The analysis goes through the main Economics fields where the (re)discover of the entrepreneur figure was most remarkable - namely Labor Economics, Microeconomics and Industrial Organization, and Economic Growth and Development - searching for the rationality to include the entrepreneur figure into the analyses of particular economic phenomena. The study is enriched by a brief bibliometric analysis, which helps to set forth a chronological trace of the entrepreneurship research within Economics literature.

Neoliberalism as discourse: between Foucauldian political economy and Marxian poststructuralism

by Simon Springer

Springer, S. Forthcoming. Neoliberalism as discourse: between Foucauldian political economy and Marxian poststructuralism. Critical Discourse Studies.

Contemporary theorizations of neoliberalism are framed by a false dichotomy between, on the one hand, studies... more Contemporary theorizations of neoliberalism are framed by a false dichotomy between, on the one hand, studies influenced by Foucault in emphasizing neoliberalism as a form of governmentality, and on the other hand, inquiries influenced by Marx in foregrounding neoliberalism as a hegemonic ideology. This article seeks to shine some light on this division in an effort to open up new debates and recast existing ones in such a way that might lead to more flexible understandings of neoliberalism as a discourse. A discourse approach moves theorizations forward by recognizing neoliberalism is neither a ‘top down’ nor ‘bottom up’ phenomena, but rather a circuitous process of socio-spatial transformation.

Oikos and Economy

by Gregory Cameron

THE PROVENANCES OF ECONOMIC THEORY'S IMPACT ON EDUCATION: FRENCH EDUCATIONAL THOUGHT AT THE END OF THE ANCIEN RÉGIME

by Tal Gilead

Published in: Educational Theory, 61/1, 2011, 55-73

Today, the influence of economic thought on educational theory is evident. It seems to weaken, however, the further we... more Today, the influence of economic thought on educational theory is evident. It seems to weaken, however, the further we travel back in history. In this article, Tal Gilead examines the historical origins of this influence. He shows that it first emerged in French educational thought during the second half of the eighteenth century. Through analyzing a number of books on educational theory from this period, Gilead demonstrates the educational impact of two innovative economic ideas: first, the idea that wealth stems from the product of the land, and, second, the idea that the wealth of the nation is positively correlated with that of the individuals composing it. Gilead argues that these economic ideas contributed to the emergence and spread of progressive notions regarding the scope, nature, and aims of educational provision. He especially stresses the role that these economic ideas played in transforming contemporary attitudes toward the education of the poor.

SALVADORI F., L’economia nel villaggio tardoantico

by Frank Salvadori

published in FRANCOVICH R, VALENTI M. (a cura di), Poggio Imperiale a Poggibonsi. Il territorio, lo scavo, il parco, 2007, pp. 93-94

Revisiting the ‘Natural’ Origins of Economics

by Alex M Thomas

Governing Model Populations: Queries, Quantification, and William Petty’s “Scale of Salubrity”

by Ted McCormick

Keynes: revolutionary or radical

by Brendan Sheehan

Three-quarters of a century ago the General Theory of Employment, Interest and Money by John Maynard Keynes was... more Three-quarters of a century ago the General Theory of Employment, Interest and Money by John Maynard Keynes was published. This anniversary provides an opportunity to reflect on Keynes’ most significant contributions to economics. The paper has three key objectives. The first is to demonstrate how Keynes departs from the classical orthodoxy – both theoretically and in policy terms. The paper carefully explains classical macro-economic theory – especially the special assumptions on which it relies – and the conservative policy agenda that it generates. The second objective is to introduce Keynes’ revolutionary approach to macroeconomics – formulated round the principle of effective demand - and the potentially radical policy proposals he recommends. The study of effective demand provides insights about how the actual economy operates, once the special classical assumptions are relaxed. In policy terms, Keynes addresses three urgent priorities: curing an economic depression, preventing war-time inflation and promoting post-war prosperity over the long-term. The final objective is to critically assess Keynes’ credentials as a theoretical revolutionary and policy radical. This assessment concludes that Keynes is a mild theoretical revolutionary, content to make good the deficiencies in classical orthodoxy. He neither moves beyond the paradigm of universal scarcity nor appreciates the ever-present threat of under-consumption. He is also a timid radical; his most rebellious instincts are restricted to proposing socialised investment and tight capital controls.

The making of neoliberalism

by Will Davies

Review essay of:

The Road from Mont Pèlerin: The Making of the Neo-Liberal Thought Collective
Philip Mirowski and Dieter Plehwe (eds)
Harvard University Press, 2009

Invisible Hands: The Making of the Conservative Movement from the New Deal to Reagan
Kim Phillips-Fein
Norton, 2009

Du Châtelet, Voltaire, and the Transformation of Mandeville's Fable

by Felicia Gottmann

The Economic Thought of St James and The Jerusalem Love Community

by Sarah Drakopoulou Dodd

This paper was co-authored with Dr G.Gotsis, and published in the History of Economic Ideas, 1:2004. pp  7-35. The file available here is the pre-publication version of the study.

The Epistle of James provides a window into the economic thought of the Jerusalem Church immediately prior to the... more The Epistle of James provides a window into the economic thought of the Jerusalem Church immediately prior to the rapid expansion of Christianity through the Pauline movement. James’ work pays special attention to the piety of the poor as they are tested by economic exploitation and oppression. It attacks in the strongest possible terms the capital accumulation of the rich, and the unjust means used to acquire this wealth. James’ epistle also condemns merchants for trusting to their vision of the future, especially given the (presumed) imminence of the Parousia (Second Coming). James’ writings, however virulently anti-worldly, nonetheless stand in a strong tradition of both Judaic and other ancient writings, as well as with many parts of the New Testament, most especially the two Lucan books. He cannot, therefore, be dismissed as an aberative example of proto-Christian economic thought.

On Ethics and Economics

by Uday Chandra

Winner of the 2005 Baumann Prize, Grinnell College (USA)

Ill fares the land, to hastening ills a prey,
Where wealth accumulates, and men decay.
—Oliver Goldsmith,... more Ill fares the land, to hastening ills a prey,
Where wealth accumulates, and men decay.
—Oliver Goldsmith, The Deserted Village (1770)

Echoing Goldsmith’s 18th-century lament on the ills of modern industrial society, noneconomists frequently bemoan and berate modern economics’ neglect of a wide range of ethical concerns. This criticism is bolstered by the evidence that a standard microeconomics text for undergraduates such as Hal Varian’s book does not even use the word “ethics” anywhere. Even when “bads” are discussed, they are defined as commodities that the “consumer doesn’t like” (Varian 1996: 41). Similarly, utility is interpreted as a “way to describe [consumer] preferences” (Varian 1996: 54).

These instances of discord between ethics and economics, however, obscure the fact that there exists a multifaceted historical relationship between ethical and economic ideas. Aristotelian ideas of eudaimonia (human flourishing) and justice in economic activities dominated the Western intellectual environment until the Enlightenment, stressing the complementarities between the ethical and economic realms. Enlightenment scholars, notably Adam Smith, sought to supplant the old Aristotelian paradigm with a new relationship between ethics and economics. However, the 20th-century ascendancy of neoclassical economics, with its penchant for mathematical models and “scientific” tools, has meant the neglect of both Aristotelian and Smithian ethics. Although Amartya Sen’s ethical
concerns have reintroduced Aristotelian ideas into modern economics without discarding basic Smithian values, Sen’s challenge to neoclassical thinking may itself be inadequate in the contemporary context. This paper analyzes the linkages between ethics and economics in the writings of Aristotle, Smith and Sen, and then provides an alternative paradigm for addressing ethical or normative concerns within contemporary economics.

Mill's 'Socialism'

by Dale E. Miller

Insofar as John Stuart Mill can be accurately described as a socialist, his is a socialism that a classical liberal... more Insofar as John Stuart Mill can be accurately described as a socialist, his is a socialism that a classical liberal ought to be able to live with, if not to love.  Mill's view is that capitalist economies should at some point undergo a `spontaneous' and incremental process of socialization, involving the formation of  worker-controlled `socialistic' enterprises through either the transformation of `capitalistic' enterprises or creation de novo. This process would entail  few violations of core libertarian principles. It would proceed by way of a series of voluntary transactions. Capitalists' property rights would be respected  throughout. The process would take place within a national system of laws that permits private ownership of productive property and competition, and would not  result in that system's overthrow. And, if we accept some basic tenets of Mill's social philosophy, the outcome at which we should expect the process to arrive is a `patchwork' economy in which capitalistic and socialistic enterprises exist side by side.

Economics and the 'nonsense' of Law: The Case of the Chicago anti-trust revolution

by Will Davies

The Law and Economics movement that emerged in the University of Chicago through the 1940s and 1950s, around Ronald... more The Law and Economics movement that emerged in the University of Chicago through the 1940s and 1950s, around Ronald Coase's example, is a manifestation of the neo-liberal project of applying neo-classical economics to state sovereignty. In the 1970s and 1980s, Law and Economics ideas revolutionized the application of antitrust laws in the United States. However, this achievement came about not through a transformation in economic orthodoxy, but through persuading legal experts to recognize the inherent ‘nonsense’ at work in their own normative assumptions. The Chicago antitrust revolution is therefore symptomatic of trends that Foucault viewed as definitive of neo-liberalism more broadly.

The Political Economy of Unhappiness

by Will Davies

The History of Hayek's Theory of Cultural Evolution

by Erik Angner

Angner, Erik (2002) "The History of Hayek’s Theory of Cultural Evolution," Studies in History and Philosophy of Science Part C: Studies in History and Philosophy of Biological and Biomedical Sciences 33(4): 695-718.

The present paper traces the historical origins of Friedrich A. Hayek’s theory of cultural evolution, and argues that... more The present paper traces the historical origins of Friedrich A. Hayek’s theory of cultural evolution, and argues that Hayek’s evolutionary thought was significantly inspired by Alexander M. Carr-Saunders and Oxford zoology. While traditional Hayek scholarship emphasizes the influence of Carl Menger and the British eighteenth century moral philosophers, I claim that these sources underdetermine what was most characteristic of Hayek’s theory, viz. the idea that cultural evolution is a matter of group selection, and the idea that natural selection operates on acquired as well as on inherited properties.

Book Review: Friedrich Hayek: A Biography, by Alan Ebenstein

by Erik Angner

Behavioral Economics

by Erik Angner

Angner, Erik and George Loewenstein (in press, 2012) "Behavioral Economics," in Uskali Mäki (Ed.) Handbook of the Philosophy of Science: Philosophy of Economics (Amsterdam: Elsevier), pp. 641-690.

Behavioral economics is the effort to increase the explanatory and predictive power of economic theory by providing it... more Behavioral economics is the effort to increase the explanatory and predictive power of economic theory by providing it with more psychologically plausible foundations. Behavioral economics, which recently emerged as a bona fide subdiscipline of economics, raises a number of questions of a philosophical, methodological, and historical nature. This chapter offers a survey of behavioral economics, including its historical origins, results, and methods; its relationship to neighboring fields; and its philosophical and methodological underpinnings. Our central thesis is that the development of behavioral economics in important respects parallels the development of cognitive science. Both fields are based on a repudiation of the positivist methodological strictures that were in place at their founding and a belief in the legitimacy of making reference to unobservable entities such as beliefs, emotions, and heuristics. And both fields adopt an interdisciplinary approach, admitting evidence of many kinds and using a variety of methods to generate such evidence. Moreover, there are in fact more direct links between the two fields. The single most important source of inspiration for behavioral economists has been behavioral decision research, which can in turn be seen as an integration of ideas from cognitive science and economics. Exploring the parallels between the two endeavors, we attempt to show, can shed light on the historical origins of, and the specific form taken by, behavioral economics.

Reexamination of Thornton’s Innovative Monetary Analysis: The Bullion Debate during the Restriction Once Again

by Arie Arnon

2009 History of Political Economy, Vol. 41, pp 545-574.

The Restriction period, which began in England in 1797, marked a crucial turning point for both monetary theory and... more The Restriction period, which began in England in 1797, marked a crucial turning point for both monetary theory and policy. The debates during the Restriction concerning the complicated relationship between inflation, the exchanges and monetary aggregates came to be known as the Bullion Debate. The Bullionists were critical of the Bank of England and supported a return to convertibility, whereas the anti-Bullionists defended the Bank and approved an inconvertible system.
Throughout the period, discussions fluctuated in intensity, as Jacob Viner (1937) and Frank W. Fetter (1965) pointed out, with the market price of gold. When the price of gold in terms of inconvertible notes was high, as in 1800-01 and in 1809-10, and the exchanges were bad, the controversy intensified. The first round in the debate started with a Bullionist argument published by Walter Boyd (1801) to which Francis Baring (1801), the anti-Bullionist, reacted; their intense exchange provides an historic context for examining and re-evaluating Henry Thornton's seminal contribution to monetary theory.
The paper argues that Thornton’s path breaking Paper Credit (1802) presents an innovative and consistent anti-Bullionist position, one that differs from that of the Bank of England and other anti-Bullionists who accepted the Smithian Real Bills Doctrine for both convertible and inconvertible situations. Thornton, on the other hand, rejected the Real Bills Doctrine and more generally Smith’s monetary thinking as it applied to both convertible and inconvertible monetary arrangements. The fundamental idea behind Thornton's defense of the Bank of England and inconvertibility was the crucial role of the Bank in managing the monetary system under both currency regimes.
After 1802, particularly as a member of the famous Bullion Committee, Thornton played an important role on the side of the Bullionists that resulted in his being described by later scholars as a "moderate Bullionist." However, as I intend to show, his reserved support for convertibility during this period reflects his disappointment with the Bank directors, whose poor management skills and fundamental misunderstanding of the monetary system threatened the stability of the British economy. For this reason, the shift in Thornton's position may be better understood as a political and pragmatic response to an untenable situation rather than as a reversal of his theory or a principled rejection of an inconvertible, properly managed, regime.