It is exhibited that mature scientific economical theory is a set of propositions that describe the relationship between theoretical objects of two types - basic objects and derivative ones. The set of basic objects makes up the aggregate of initial idealizations (the Fundamental Theoretical Scheme or FTS) with no direct reference to experimental data. The derivative theoretical objects are formed from the basic ones according to certain rules. The sets of derivative objects form partial theoretical schemes or PTS. Any mature (...) economics scientific theory grows due to transitions, in order to describe each new experimental situation, from FTS to PTS. Each PTS construction from the FTS represents a problem that cannot be reduced to a strict algorithm. (shrink)

This essay is my extended review of Eamonn Butler’s outstanding primer, Classical Liberalism. In his book, Butler notes that the phrase “classical liberal” encompasses a wide spectrum of views, from conservatism to libertarianism. Butler lays out 10 principles that characterize classical liberalism, sketches its history, and discusses the value classical liberals place on freedom and toleration. He also examines the classical liberal views of politics, government, and society, and some useful compendia for the reader.

: The theory of objective value is the central feature in the paradigm of political economy. The Newtonian heritage plays a major role in giving political economy the status of a self-standing empirical science, and a reconstruction of this heritage casts fresh light on the idea of value and its role in the definition of the subject matter of political economy. Cognitive progress carried by classical political economy turns out to be related with the dilemmas of Newtonian epistemology and (...) the alternative between essentialist realism and instrumental conventionalism. (shrink)

Given the endowment effect, the role of attention in decision-making, and the framing effect, most behavioral economists agree that it would be a mistake to accept the satisfaction of revealed preferences as the normative criterion of choice. Some have suggested that what makes agents better off is not the satisfaction of revealed preferences, but ‘true’ preferences, which may not always be observed through choice. While such preferences may appear to be an improvement over revealed preferences, some philosophers of economics (...) have argued that they face insurmountable epistemological, normative, and methodological challenges. This article introduces a new kind of true preference – values-based preferences – that blunts these challenges. Agents express values-based preferences when they choose in a manner that is compatible with a consumption plan grounded in a value commitment that is normative, affective, and stable for the agent who has one. Agents who choose according to their plans are resolute choosers. My claim is that while values-based preferences do not apply to every choice situation, this kind of preference provides a rigorous way for thinking about classic choice situations that have long interested behavioral economists and philosophers of economics, such as ‘Joe-in-the-cafeteria.’. (shrink)

This forum contribution addresses two major themes in de Goede’s original essay on ‘Financial security’: (1) the relationship between stable markets and the proverbial ‘security dilemma’; and (2) the development of new decision-technologies to address risk in the post-World War II period. Its argument is that the confluence of these two themes through rational choice theory represents a fundamental re-evaluation of the security dilemma and its relationship to the rule of law governing market relations, ushering in an era of perpetual (...) physical and financial insecurity. (shrink)

At first blush, values such as diversity appear to be worth striving for. The question is whether or not such values—which have become increasingly prevalent in university mission statements—are values as such, which is to ask whether they are things of moral worth (Value, n.d.), or are something else altogether. My unpopular suspicion leans toward the latter. Personal opinions, of course, are hardly a justification for an impassioned critique, however, my opinions mirror those held by moderate and conservative witnesses to (...) the sociopolitical climate of academia (Pew Research Center, 2017) as well as individuals who would typically be considered classically liberal such as Peter Boghossian (2021). Because of this concordance and in order to understand the constitutive relations of academic production, it becomes necessary to critically examine the nature of institutional values, separate from polemical rhetoric that either seeks to construct a "straw man" of them in order to lay them low or insulate them from outside reproach altogether Since "diversity" seems to be the chief concern among interested groups both in the academic setting and the world at large, this article's point of access to the relations of production in academia will be anchored by a Marxian assessment of diversity as a product of social labour in the academic environment. (shrink)

The political, economic and environmental policies of a hegemonic, oligarchic, political-economic international caste are the origin and cause of the ecological and political dystopia that we are living in. An utilitarian, resourcist, anthropocentric perspective guides classical economics and sustainable development models, allowing the enrichment of a tiny part of the world's population, while not impeding but, on the contrary, directly inducing economic losses and environmental destruction for the many. To preserve the integrity of natural systems we must abandon (...) the resourcist anthropocentric ethical fiction that is the current moral foundation underlying our relationship with nature and instead promote the realization of a new developmental landmark for democratic institutions: direct democracy, i.e. democracy truly governed by the people for the people, and ultimately for nature as well. (shrink)

The paper discusses the sense in which the changes undergone by normative economics in the twentieth century can be said to be progressive. A simple criterion is proposed to decide whether a sequence of normative theories is progressive. This criterion is put to use on the historical transition from the new welfare economics to social choice theory. The paper reconstructs this classic case, and eventually concludes that the latter theory was progressive compared with the former. It also briefly (...) comments on the recent developments in normative economics and their connection with the previous two stages. (Published Online April 18 2006) Footnotes1 This paper suspersedes an earlier one entitled “Is There Progress in Normative Economics?” (Mongin 2002). I thank the organizers of the Fourth ESHET Conference (Graz 2000) for the opportunity they gave me to lecture on this topic. Thanks are also due to J. Alexander, K. Arrow, A. Bird, R. Bradley, M. Dascal, W. Gaertner, N. Gravel, D. Hausman, B. Hill, C. Howson, N. McClennen, A. Trannoy, J. Weymark, J. Worrall, two annonymous referees of this journal, and especially the editor M. Fleurbaey, for helpful comments. The editor's suggestions contributed to determine the final orientation of the paper. The author is grateful to the LSE and the Lachmann Foundation for their support at the time when he was writing the initial version. (shrink)

This article identify catalysts of synthetic economic crisis. These catalysts are the subject of transnational corporations, international financial, trade organizations, regional integration groupings. Generalized mechanism for the flow of synthetic economic crisis and their types. This article also proves that the response of governments to the process flow of synthetic economic crisis with the help of the classical fiscal, monetary and administrative-legislative instruments are not effective.

The present paper discusses the problem of quantum-mechanical properties of a subject’s consciousness. The model of generalized economic measurements is used for the analysis. Two types of such measurements are analyzed – transactions and technologies. Algebraic ratios between the technology-type measurements allow making their analogy with slit experiments in physics. It has been shown that the description of results of such measurements is possible both in classical and in quantum formalism of calculation of probabilities. Thus, the quantum-mechanical formalism of (...) the description of states appears as a result of idealization of the selection mechanism in the proprietor's consciousness. (shrink)

This dissertation undertakes a philosophical analysis of “natural capital” and argues that this concept has prompted economists to view Nature in a radically novel manner. Formerly, economists referred to Nature and natural products as a collection of inert materials to be drawn upon in isolation and then rearranged by human agents to produce commodities. More recently, nature is depicted as a collection of active, modifiable, and economically valuable processes, often construed as ecosystems that produce marketable goods and services gratis. Nature (...) is depicted as consisting of various unproduced mechanisms or “natural machines” that are first discovered and then channeled so as to serve human ends. In short, nature as an ideal is a kind of garden that is characterized by natural objects purposefully arranged by intentional human agents. This dissertation first lays out working definitions of the key terms, such as capital and Nature, and then traces the historical roots of natural capital in the writings of eminent classical political economists, such as Adam Smith, John Stuart Mill, and Karl Marx. I then examine the question of substitutes for “critical natural capital”, and argue that the preservation paradox is warranted: no one can restore or preserve a part of Nature without turning it into an artifact. Following the recent work of Debra Satz and Michael Sandel, I finish my dissertation by situating the question of natural capital in the broader context of whether some goods should not be for sale, particularly those I define as Basic Ecological Goods. (shrink)

The paper discusses the possibility of constructing economic models using the methodology of model construction in classical mechanics. At the same time, unlike the "econophysical" approach, the properties of economic models are derived without involvement of any equivalent physical properties, but with account of the types of symmetry existing in the economic system. It has been shown that at this approach practically all known mechanical variables have their "economic twins". The variational principle is formulated on the basis of formal (...) mathematical construction without involving the subjective factor common to the majority of models in economics. The dynamics of interaction of two companies has been studies in details, on the basis of which we can proceed to modeling of more complex and realistic economic systems. Prediction of the possibility of constructing economic theory on the basis of primary principles analogously to physics has been made. (shrink)

This paper explores the implications of empirical theories of migration for normative accounts of migration and distributive justice. It examines neo-classical economics, world-systems theory, dual labor market theory, and feminist approaches to migration and contends that neo-classical economic theory in isolation provides an inadequate understanding of migration. Other theories provide a fuller account of how national and global economic, political, and social institutions cause and shape migration flows by actively affecting people's opportunity sets in source countries and (...) by admitting people according to social categories such as class and gender. These empirical theories reveal the causal impact of institutions regulating migration and clarify moral obligations frequently overlooked by normative theorists. (shrink)

Scholastics were a group of Christian theologians mainly active in Europe during the 12th to 17th centuries. One of the notable teachings in scholastic literature is the theory of just price, which can be considered one of the most frequent theories in the history of economic ideas. This study tries to reassess the theory of just price in the economic thought of scholastic thinkers by referring to classical scholastic texts, through which it examines the general experiences of scholastic theology (...) in confrontation with economic phenomena. For this purpose, the theory of just price is examined from the roots of its formation in scholastic practical wisdom to its most superficial form as an economic institution. Through this investigation, the question of how theology can play a role in its practical field, up to the most superficial economic institutions can be answered. The results of this study show that scholastic thinkers in the theoretical field of practical theology had significant achievements in promoting theology through their writings and teachings in schools. In its practical field, they tried to implement theology in the human foundations of society by building various divine institutions such as a just price. In this regard, the theory of dual human happiness in scholastic theology has significantly impacted the formation of economic issues as part of scholastic practical wisdom. Despite these achievements, their thought is wanting from two aspects: (1) systematic lack of understanding of modern phenomena such as capitalism and (2) no effort to implement their teachings in the social and economic construction of society. -/- . (shrink)

This chapter briefly reviews the present state of judgment aggregation theory and tentatively suggests a future direction for that theory. In the review, we start by emphasizing the difference between the doctrinal paradox and the discursive dilemma, two idealized examples which classically serve to motivate the theory, and then proceed to reconstruct it as a brand of logical theory, unlike in some other interpretations, using a single impossibility theorem as a key to its technical development. In the prospective part, having (...) mentioned existing applications to social choice theory and computer science, which we do not discuss here, we consider a potential application to law and economics. This would be based on a deeper exploration of the doctrinal paradox and its relevance to the functioning of collegiate courts. On this topic, legal theorists have provided empirical observations and theoretical hints that judgment aggregation theorists would be in a position to clarify and further elaborate. As a general message, the chapter means to suggest that the future of judgment aggregation theory lies with its applications rather than its internal theoretical development. (shrink)

This book is a collection and reworking of research done by Pascal Salin since around 1990. Salin is an economist in the tradition of the Austrian school of economics. He emphasizes the centrality of individual choice in an uncertain world in which individual actions interact to produce spontaneous orders. But he is no mere conduit of established ideas. He also offers his own highly original insights honed after a lifetime as an economist, one who has earned the respect in (...) which he is now held by his peers worldwide. The book makes delightful reading. Salin covers a lot of ground in this book, mostly within the topics indicated by the title, though in the final two chapters he goes beyond these and into the foundations of economic science. The book is divided into five parts: (1) firms, markets and competition, (2) globalization and international economic problems, (3) monetary integration, (4) money, finance and economic policies, and (5) foundations of economic theory. (shrink)

Nancy MacLean’s book, Democracy in Chains, raised questions about James M. Buchanan’s commitment to democracy. This paper investigates the relationship of classical liberalism in general and of Buchanan in particular to democratic theory. Contrary to the simplistic classical liberal juxtaposition of “coercion vs. consent,” there have been from Antiquity onwards voluntary contractarian defenses of non-democratic government and even slavery—all little noticed by classical liberal scholars who prefer to think of democracy as just “government by the consent of (...) the governed” and slavery as being inherently coercive. Historically, democratic theory had to go beyond that simplistic notion of democracy to develop a critique of consent-based non-democratic government, e.g., the Hobbesian pactum subjectionis. That critique was based firstly on the distinction between contracts or constitutions of alienation (translatio) versus delegation (concessio). Then the contracts of alienation were ruled out based on the theory of inalienable rights that descends from the Reformation doctrine of inalienability of conscience down through the Enlightenment to modern times in the abolitionist and democratic movements. While he developed no theory of inalienability, the mature Buchanan explicitly allowed only a constitution of delegation, contrary to many modern classical liberals or libertarians who consider the choice between consent-based democratic or non-democratic governments (e.g., private cities or shareholder states) to be a pragmatic one. But Buchanan seems to not even realize that his at-most-delegation dictum would also rule out the employer-employee or human rental contract which is a contract of alienation “within the scope of the employment.”. (shrink)

Following Anthony Downs’s classic economic analysis of democracy, it has been widely noted that most voters lack the incentive to be well-informed. Recent empirical work, however, suggests further that political partisans can display selectively lazy or biased reasoning. Unfortunately, political knowledge seems to exacerbate, rather than mitigate, these tendencies. In this paper, I build on these observations to construct a more general skeptical challenge which affects what I call creedal beliefs. Such beliefs share three features: (i) the costs to the (...) individual of being wrong are negligible, (ii) the beliefs are subject to social scrutiny, and (iii) the evidential landscape relevant to the beliefs is sufficiently complex so as to make easy verification difficult. Some philosophers and social scientists have recently argued that under such conditions, beliefs are likely to play a signaling, as opposed to a navigational role, and that our ability to hold beliefs in this way is adaptive. However, if this is right, I argue there is at least a partial debunker for such beliefs. Moreover, this offers, I suggest, one way to develop the skeptical challenge based on etiological explanation that John Stuart Mill presents in On Liberty when he claims that the same causes which lead someone to be a devout Christian in London would have made them a Confucian in Peking. Finally, I contend that this skeptical challenge is appropriately circumscribed so that it does not over-extend in an implausible way. (shrink)

Indigenous people often do not get the full benefits of economic development, regardless of their proximity to production factors. While many academics have recognised and investigated indigenous people’s problems, relatively few have suggested entrepreneurship as a means to addressing them. In this paper, we explore Peredo et al.’s (2004) work, ‘Towards a theory of indigenous entrepreneurship – a theory of entrepreneurship that accounts for indigenous people and sustainability’. Using Scopus and Google Scholar, a bibliometric analysis confirmed the impact of this (...) work, first published some 16 years ago. The analysis reveals that the paper has been referenced over 300 times, with over 70% of these citations originating from online academic journal articles and books and 30% from different types of websites. The paper’s substantial impact on future research in indigenous entrepreneurship indicates that it is and will continue to be a foundational work on indigenous entrepreneurship. (shrink)

It is difficult to advance a point beyond what Keynes himself commented about his own vision in The General Theory of Employment, Interest and Money in 1936 (hereafter TGT) in its Chapter 24. It is also difficult to express a deeper thought than what Skidelsky wrote about Chapter 24 of TGT (cf. Skidelsky, 1997). The purpose of this article is to identify whether Chapter 24 of TGT is the gist of Keynes’s legacy, having set the foundations of macroeconomics in the (...) previous 23 Chapters. Relevant topics included in Chapter 24 are the consequences of full employment, the fate of income distribution, the future of overall wealth, the socialization of investment, saving, expectations, the role of the State in economies, the future of financial markets and the interaction between economics and other disciplines. Indeed this Chapter displays Keynes’s genius as a social philosopher, following the tradition of The Economics Possibilities for our Grandchildren (1930). In Chapter 24 he was taking a glance at his product as did Phillip II when he was observing the construction of his castle El Escorial in XVII Spain. Within his vision, is this piece of work a justification of capitalism? Keynes sees the State as both the spender and the employer of last resort, thereby proposing a new role for the government (Skidelsky, 1998). He also suggests a new role for the private sector and reconsiders the interrelation between the two sectors. He is fully optimistic about this issue, which he considers as evolutionary. In addition, Keynes blurs the distinction between economics and sociology, advancing new interdisciplinary hints in his thinking. Keynes is also concerned on the epistemological role of assumptions in order to obtain defensible conclusions. Thereafter the British economist proposes new methods. He was a neo-realist and was against the inductive method. In addition, it can be stated that TGT is grounded on new psychological laws and motivations, that is, on a new vision of humankind, especially the analyzed chapter. His topics are the bypassing of Classical Economics; the destiny of macroeconomics in both theoretical and policy terms, highlighting new roles for interest rates; savers and rentiers; and the relevance of the concepts of ideas, interests and power. In all these respects Keynes is once again far ahead of his time. Finally a debatable topic dealt with by Keynes in Chapter 24 of TGT is 1 PhD in Economics, Lancaster University, UK; Professor-researcher at ISEC Universidad de Negocios, Mexico City. socialisation of investment. This is in words of Skidelsky, a shift in the balance of social power. Keynes is thus in Chapter 24 of TGT a visionary and an idealist, a reformer, and certainly a trans-generational thinker. When he talks about the passion of thriftiness and the setting of reasonable financial rewards arising from financial instruments he is advancing explications for financial crises in terms of speculation. The open conclusion is that Chapter 24 contains the gist of Keynes’s mature philosophical thinking and legacy, confirming that for him attitudes are one of the most relevant issues in life. In addition, he considers that both social and psychological elements are necessary for a thorough understanding of economic issues and their consequences, such as peace and happiness. Section 1 is an introduction. Section 2 is both a literature review and a summary of Keynes’s general philosophical insights. Section 3 is an analysis of Chapter 24 of TGT in the specific fields of Epistemology, Ethics, Ontology, and Political and Social Philosophy. Section 4 is a conclusion. References are listed at the end of the article. (shrink)

Sumantra Ghoshal’s condemnation of “bad management theories” that were “destroying good management practices” has not lost any of its salience, after a decade. Management theories anchored in agency theory (and neo-classical economics generally) continue to abet the financialization of society and undermine the functioning of business. An alternative approach (drawn from a more classic institutional, new ecological, and refocused ethical approaches) is reviewed.

GILBERT JEAN FACCARELLO (Paris, 1950) is professor of economics at Université Panthéon-Assas, Paris, and a member of the Triangle research centre (École Normale Supérieure de Lyon and CNRS). He is presently chair of the ESHET Council (European Society for the History of Economic Thought). He completed his doctoral research in economics at Université de Paris X Nanterre. He has previously taught at the Université de Paris-Dauphine, Université du Maine and École Normale Supérieure de Fontenay/Saint-Cloud (now École Normale Supérieure (...) de Lyon). He is a co-founder of The European Journal of the History of Economic Thought, which he co-edited for 20 years with J. L. Cardoso, Heinz D. Kurz, and A. Murphy. With Alain Béraud, he edited the Nouvelle histoire de la pensée économique (La Découverte, 3 volumes, 1992-2000) and, together with Heinz D. Kurz, he is presently editing a Handbook of the History of Economic Analysis (3 volumes, forthcoming with Edward Elgar). -/- EJPE interviewed Gilbert Faccarello about his research career in the history of economic thought, where he has focused especially on old and new classical and Marxian political economy, and French political economy during the 18th and 19th centuries. G. Faccarello discusses his interest not only in the logical structure and context of the economic ideas of past thinkers but also the links between economic thought, philosophy, and religion. (shrink)

ES: La economía tradicional explica la evolución de los individuos y del conocimiento de forma muy parcial. Los nuevos medios exigen una reconsideración del papel del individuo y del valor comunal del conocimiento que permita una reorientación del sentido económico y las acciones individuales. Frente a la teoría de juegos tradicional de suma 0, es posible encontrar formulaciones cooperativas que muestran su robustez y pertinencia. EN: Classical economics explains the evolution of individuals and knowledge in a very partial (...) way. New technological means require a reconsideration of the role of individuals and communal value of knowledge. This rethinking allows a reorientation of both the economic sense and individual actions to become a reality. Against a classical theory of zero-sum games, it is possible to reshape cooperative ways that show their robustness and pertinence. (shrink)

This article critically discusses the concept of economic rationality, arguing that it is too narrow and specific to encompass the full concept of practical rationality. Economic rationality is identified here with the use of the optimizing model of decision, as well as of expected utility apparatus to deal with uncertainty. To argue that practical rationality is broader than economic rationality, the article claims that practical rationality includes bounded rationality as a particular case, and that bounded rationality cannot be reduced to (...) economic rationality as defined here. (shrink)

Adam Smith is respected as the father of contemporary economics for his work on systemizing classical economics as an independent field of study in The Wealth of Nations. But he was also a significant moral philosopher of the Scottish Enlightenment, with its characteristic concern for integrating sentiments and rationality. This article considers Adam Smith as a key moral philosopher of commercial society whose critical reflection upon the particular ethical challenges posed by the new pressures and possibilities of (...) commercial society remains relevant today. The discussion has three parts. First I address the artificial separation between self-interest and morality often attributed to Smith, in which his work on economics is stripped of its ethical context. Second I outline Smith’s ethical approach to economics, focusing on his vigorous but qualified defence of commercial society for its contributions to prosperity, justice, and freedom. Third I outline Smith’s moral philosophy proper as combining a naturalistic account of moral psychology with a virtue ethics based on propriety in commercial society. (shrink)

The idea that «natural» environments should be protected is a relatively recent one. This new attitude is reflected in the activities of preservation and restoration of natural environments, ecosystems, flora and wildlife that, when scientifically based, can be defined as conservation. In this paper, we would like to examine the framework of values behind these activities. More specifically, we would like to show that there is no single specific reason that can justify conservation in each of its manifestations It is (...) therefore necessary to adopt a complex framework of values, which must be composed carefully, since many of the canonical arguments used to justify conservation provide, when combined together, an incoherent or, at least, incomplete set of reasons. One way to avoid these inconsistencies or incompleteness is, in our view, to adopt, in conjunction with the classic economic and ecological arguments for conservation, a set of arguments appealing to the importance of nature for human flourishing. (shrink)

The richer you are, the less equally rich or richer people. The richest is only one (=unique). Maximization of richness or leisure (=classic utility), maximizes the uniqueness (=improbability) that can be maximized also by: extreme sport, suicide, tattoo, count of views... The richest seem unique as the poorest, but the rich can easily become poor, while the poor can hardly get rich. So the aim of maximization reflects IQ and options. Few options increase irrationality, regardless of IQ. I also present (...) the law of values' equality, Utility of Suicide, motivation to support the better, and overview the economics as such. Presented as PhD thesis at CERGE-EI, 2000, exhibited in Holland Park, W8 6LU, 2013, presented at conferences in Santorini 2016, Daejon 2016, Adelaide 2016. (shrink)

The article discusses Friedman's classic claim that economics can be based on irrealistic assumptions. It exploits Samuelson's distinction between two "F-twists" (that is, "it is an advantage for an economic theory to use irrealistic assumptions" vs "the more irrealistic the assumptions, the better the economic theory"), as well as Nagel's distinction between three philosophy-of-science construals of the basic claim. On examination, only one of Nagel's construals seems promising enough. It involves the neo-positivistic distinction between theoretical and non-theoretical ("observable") terms; (...) so Friedman would in some sense argue for the major role of theoretical terms in economics. The paper uses a model-theoretic apparatus to refine the selected construal and check whether it can be made to support the claim. This inquiry leads to essentially negative results for both F-twists, and the final conclusion is that they are left unsupported. (shrink)

I reconstruct a few themes of the early twentieth-century discussion that headed to the claim of a value-free character of economic theory and of the subsequent discussion that headed to a resumption of a rich discussion of economic ethics and of applied ethics with regard to economic practices. I examine the discussion on value-freedom from classical political economy to Robbins, the role played by utilitarianism in economic theory and the puzzles connected to the idea of utility and several recent (...) discussions on social choice, welfare, and collective choice. I end by discussing a few good reasons for the revival of business ethics. (shrink)

Efficiency requires legislative political institutions. There are many ways efficiency can be promoted, and so an ongoing legislative institution is necessary to resolve this choice in a politically sustainable and economically flexible way. This poses serious problems for classical liberal proposals to constitutionally protect markets from government intervention, as seen in the work of Ilya Somin, Guido Pincione & Fernando Tesón and others. The argument for the political nature of efficiency is set out in terms of both Pareto optimality (...) and aggregate welfare maximisation, and similar arguments can be generalised to other social values. (shrink)

Abstract: Economists are accustomed to distinguishing between a positive and a normative component of their work, a distinction that is peculiar to their field, having no exact counterpart in the other social sciences. The distinction has substantially changed over time, and the different ways of understanding it today are reflective of its history. Our objective is to trace the origins and initial forms of the distinction, from the English classical political economy of the first half of the 19th century (...) to the emergence of welfare economics in the first half of the 20th century. This sequential account will also serve to identify the main representative positions along with the arguments used to support them, and it thus prepares the ground for a discussion that will be less historical and more strictly conceptual. -/- Résumé : Les économistes ont coutume de distinguer entre une composante positive et une composante normative de leurs travaux, ce qui est une singularité de leur discipline, car cette distinction n'a pas de répondant exact dans les autres sciences sociales. Elle a fortement évolué au cours du temps et les différentes manières de la concevoir aujourd'hui en reflètent l'histoire. On se propose ici d'en retracer les origines et les premières formes, de l'économie politique classique anglaise de la première moitié du XIXe siècle jusqu'à l'apparition de l'économie du bien-être dans la première moitié du XXe siècle. Ce parcours séquentiel vise aussi à identifier les positions les plus représentatives et les arguments invoqués pour les soutenir, en préparant ainsi une discussion qui serait moins historique et plus strictement conceptuelle. (shrink)

Distributive justice is one of the central questions of contemporary moral and political philosophy. Discussions on this topic are often presented as a confrontation between two groups of thinkers: libertarians and luck egalitarians. The former emphasize the dependence of the existing distribution on the individual choice and personal responsibility of people, and therefore are skeptical about various redistribution programs. The latter, on the contrary, emphasize the influence of morally arbitrary luck on the economic situation of people, and therefore welcome redistributive (...) measures to compensate for this brute luck. Left-libertarian claims to reconcile these two types of moral considerations. The classical left-libertarian point of view seeks to offset the influence of brute luck through an egalitarian distribution of the benefits of owning natural resources that are independent of anyone’s choice and responsibility. However, this position does not sufficiently take into account the influence of other factors of brute luck and, in particular, genetic endowments on the distribution of economic wealth. This article discusses three approaches that allow left-libertarians to take into account the factor of genetic luck in interpersonal distribution. First, it is Hillel Steiner’s proposal to attribute genetic information to natural resources, the benefits of which are subject to egalitarian redistribution. Second, it is the concept of equal opportunity for welfare by Peter Vallentyne, Michael Otsuka and Eric Roark. Third, it is the universal dominance criterion of Philippe Van Parijs and Kasper Ossenblok. The first two approaches face a number of moral and practical difficulties, but the third approach is able to overcome them. Thus, the universal dominance criterion is the most promising way to reconcile left-libertarianism and justice in the distribution of genetic endowments. (shrink)

This article revisits, analyzes and critiques Bruce Chatwin’s 1987 bestseller, The Songlines,1 more than three decades after its publication. In Songlines, the book primarily responsible for his posthumous celebrity, Chatwin set out to explore the essence of Central and Western Desert Aboriginal Australians’ philosophical beliefs. For many readers globally, Songlines is regarded as a—if not the—definitive entry into the epistemological basis, religion, cosmology and lifeways of classical Western and Central Desert Aboriginal people. It is argued that Chatwin’s fuzzy, ill-defined (...) use of the word-concept “songlines”2 has had the effect of generating more heat than light. Chatwin’s failure to recognize the economic imperative underpinning Australian desert people’s walking praxis is problematic: his own treks through foreign lands were underpropped by socioeconomic privilege. Chatwin’s ethnocentric idée fixe regarding the primacy of “walking” and “nomadism,” central to his Songlines thématique, well and truly preceded his visits to Central Australia. Walking, proclaimed Chatwin, is an elemental part of “Man’s” innate nature. It is argued that this unwavering, preconceived, essentialist belief was a self-serving construal justifying Chatwin’s own “nomadic” adventures of identity. Is it thus reasonable to regard Chatwin as a “rogue author,” an unreliable narrator? And if so, does this matter? Of greatest concern is the book’s continuing majority acceptance as a measured, accurate account of Aboriginal belief systems. With respect to Aboriginal desert people and the barely disguised individuals depicted in Songlines, is Chatwin’s book a “rogue text,” constituting an act of epistemic violence, consistent with Spivak’s usage of that term? (shrink)

[This version of the paper has been superseded by "Reason-based choice and context-dependence: An explanatory framework", forthcoming in Economics & Philosophy.] -/- We introduce a “reason-based” way of rationalizing an agent’s choice behaviour, which explains choices by specifying which properties of the options or choice context the agent cares about (the “motivationally salient properties”) and how he or she cares about these properties (the “fundamental preference relation”). Reason-based rationalizations can explain non-classical choice behaviour, including boundedly rational and sophisticated (...) rational behaviour, and predict choices in unobserved contexts, an issue neglected in standard choice theory. We characterize the behavioural implications of different reason-based models and distinguish two kinds of context-dependent motivation: “context-variant” motivation, where the agent cares about different properties in different contexts, and “context-regarding” motivation, where the agent cares not only about properties of the options, but also about properties relating to the context. (shrink)

Werner Sombart’s classic text "Luxury and Capitalism" is revisited in the light of recent economic historians’ works that have analyzed luxury’s role in the development of capitalism. Most of these works, as well as Sombart’s book itself, are focused on the eighteenth century, since it was then that the proliferation—and availability—of luxury manifested itself for the first time most conspicuously. By employing secondary texts by economic historians and primary sources from the debates on luxury in the eighteenth century—some of which (...) overlooked by a number of historians—the essay attempts a renewed outlook on a text that was controversial when written over a century ago and remains a prominent argument in the eternal discussion and dispute on the cause(s) of the rise of capitalism. (shrink)

Amartya Sen’s remarkable endeavour to realize the normative capability of welfare economics goes beyond the impecunious resultants of the neoclassical welfare economy. The neoclassical welfare economy decoratively bracketed values to speculate about factual observations. This was due to the influence of logical positivists and their convictions about experimental scientific statements (primarily mathematical) and their vicinity to empirical truths and analytic statements. Sen adequately inquires “whether morality can be expressed in the form of choice between preference patterns rather than between (...) actions” (Sen, 1997a, 78). “A new phase classical theory” in economics from the hands of Sen and some others put forth two pivotal issues in a unified manner: a. Mathematical models of an economy. b. Ethical reflection on the subject of welfare economy–a value-laden enterprise in Sen’s literature. -/- In general, welfarists and utilitarians affirm that moral values are anchored in individual agency and involve mental metric utilities (pleasure, happiness, pain etc.). This focus, first of all, results in a disadvantage, as it undermines freedom in terms of achievement. Secondly, it pays no heed to achievement reasonably giving more importance to those who are incapable of reflecting on any one of those mental metrics. Besides, Sen argues that equality of opportunity does not accord with the equality of freedom, and its reason is rooted in the scope of the incongruity of human beings and the diversified meanings of efficiency. Developing a general methodological approach to revisit the notion of inequality concerned by exploring a particular substantive stand that Sen aims to underscore involves examining how social arrangements work to define freedom, capabilities, and welfare to ensure comparisons and assessments of quality of life. (shrink)

The epistemic status of Natural Selection has intrigued to biologists and philosophers since the very beginning of the theory to our present times. One prominent contemporary example is Elliott Sober, who claims that Natural Selection, and some other theories in biology, and maybe in economics, are peculiar in including explanatory models/conditionals that are a priori in a sense in which explanatory models/conditionals in Classical Mechanics and most other standard theories are not. In this paper, by analyzing what we (...) take to be the four possible interpretations of Sober’s claim, we argue that, terminological preferences aside, the possible senses in which explanatory models in Natural Selection can qualify, or include elements that can qualify, as a priori, also apply to Classical Mechanics and other standard, highly unified theories. (shrink)

Aesthetic theorists often interpret and understand works of art through the social and political context that creates and inspires the work. The recent economic recessions, and the accompanying austerity measures in many European countries, provide an interesting test case for this contextual understanding. Economists debate whether or not spending on entertainment and arts drops during times of recession and austerity. Some economists assume that spending will decline in times of austerity, but others point to evidence that spending on creative arts (...) and entertainment remains steady and even increases during a recession because of the relief and escapism that the arts provide. Tax incentives and production rights are often given to filmmakers in the United States; in hopes that such projects will enliven a local economy and provide work for a local creative community. In the context of recent austerity measures in Greece and Spain, new and creative ways for members of the arts community to bring about new projects, and fund them in ways that critique political leadership, have emerged. Following Richard Wollheim’s classic aesthetic theory of “criticism as retrieval,” we should be mindful of the cultural values that are at stake in the creativity-culture market now being created. In any case, some scholars estimate that austerity measures in many countries will last until 2020, giving us ample opportunity to be even more “creative” with both financial incentives and artistic achievements. Keywords: Austerity, Cultural Economy, Creative Class, Tax Incentives, Aesthetics, Microtheatres, Entertainment. (shrink)

The problem of measurement in economic models and the possibility of their quantum-mechanical description are considered. It is revealed that the apparent paradox of such a description is associated with a priori requirement of conformity of the model to all the alternatives of free choice of the observer. The measurement of the state of a trader on a stock exchange is formally defined as his responses to the proposals of sale at a fixed price. It is shown that an analogue (...) of Bell's inequalities for this measurement model is violated at the most general assumptions related to the strategy of the trader and requires a quantummechanical description of the dynamics of his condition. In the framework of the theory of weak continuous quantum measurements, the equation of stock price dynamics and the quantum-mechanical generalization of the F. Black and M. Scholes model for pricing options are obtained. The fundamental distinctions between the obtained model and the classical one are discussed. (shrink)

This essay is my review of Colleen Dyble’s book, Taming Leviathan: Waging a War of Ideas around the World. Dyble is affiliated with the legendary classical liberal British think tank, the Institute of Economic Affairs. Her anthology is a collection of essays by people around the world who have been involved with similar free-market think tanks in countries with historically statist economic systems. These writers include Greg Lindsay, founder of the Center for Independent Studies in Australia; Margaret Tse, of (...) the Instituto Liberdade in Brazil; Michael Walker, co-founder of the Fraser Institute in Canada; Cristian Larroulet, of Libertad y Desarrollo in Chile; Giancarlo Ibarguen, of the Center for Economic and Social Studies in Guatemala (which actually founded a free-market-oriented university); Parth Shah, founder of the Center for Civil Society in India; Daniel Doron, co-founder of the Israeli Center for Social and Economic Progress; Alberto Mingardi, of the Instituto Bruno Leoni in Italy; Masaru Uchigama, founder of the Japanese for Tax Reform; Elena Leontjeva, co-founder of the Lithuanian Free Market Institute; Alexander Magno, co-founder of the Foundation for Economic Freedom in the Philippines; and last, Leon Louw, of the Free Market Foundation of South Africa. I then discuss seven important reasons why classical liberal think tanks are so important in modern societies. (shrink)

The central classical liberal insight is that private property appears both to protect personal liberty and to promote general productivity. By way of philosophically clarifying this insight, Escape from Leviathan (EfL) posits the extreme classical liberal, or libertarian, Compatibility Thesis: there is no long-term, systemic, practical conflict among economic rationality, interpersonal liberty, human welfare, and private-property anarchy (i.e., four plausible and relevant theories of these that are presupposed, or entailed, by libertarianism and consonant social science). The review (Liberty, (...) November 2002) holds that this extreme version is probably false and suggests that perhaps even EfL’s author would agree. He (still) does not, although he remains open to argument. But what anyone happens to believe at any particular moment is a piece of fleeting biography that is irrelevant to the truth of the thesis or the soundness of the arguments in EfL. (shrink)

The world never stands still. There is always a Brownian movement of economic subjects and objects on the face of it. But, if we have been visualizing this movement over a relatively long period of time, then we can distinguish the acceleration and increase in the volume of movements along individual commodity routes, the growth and formation of new subjects of international economic relations. From time to time, "accelerators" of this movement appear, either in the form of new types of (...) energy to service production, or technologies to simplify the exchange and distribution of benefits. The market, controlled by the "invisible hand", is gradually taking over the whole world, and some new goods appear to meet the needs. We use technologies and devices described in unreal fantasy plots of classical literature already today in real life. The speed of change is exciting on the one hand and is frightening on the other hand. In the modern world, it would seem, everything is mobile. The quality and cost of transportation has no longer been a physical obstacle to any exchange and travel. The forms of modern financial transactions for service international economic relations, their speed and coverage are impressive. Enterprises, in terms of capitalization, exceed the national incomes of states and do not have spatial territorial boundaries, being the main players in international economic relations along with states, their associations and international organizations. Digitalization is no longer a challenge for society, but our present. It seems sometimes that the world allegedly wants to slow down the further development of mankind and creates obstacles in the form of wars, epidemics and crises. Such obstacles become challenges for the development of economic entities of all levels. Change always creates unexpected opportunities for someone and insurmountable restrictions for other one. Change always leads to a redistribution of forces. Changes are needed to overthink the nature and direction of movement. Changes are the certain reorganization of the world economic system. The world is always on the verge of changes. What will they be this time? (shrink)

Confirming Robinson’s Statement? A Lakatosian Analysis of Keynes and his Immediate Orthodoxy Jesús Muñoz Abstract Was the Keynesian message alive during the second half of the XXth Century, or was it betrayed by his followers? This article in the fields of the history of economic thought and methodology contrasts the Scientific Research Programmes (SRPs), a Lakatosian concept, of Keynes in The General Theory of Employment, Interest and Money (TGT) with those of its immediate orthodox schools: Monetarism (MS), Neoclassical Synthesis (NS), (...) New Classical Macroeconomics – rational expectations – (RE) and General Disequilibrium (GD). The objective is to to assess the immediate impact of Keynes’s vision in economics. It can be concluded according to this comparison that Keynes’s bequeath was alive during the period between 1950 and 1980, but that it was accepted under different names. Many economists deny this statement. However it is hereby argued with the help of Lakatosian methodology that in both economic and philosophical terms the MS, NS, RE and GD SRPs are degenerative variants of Keynes's SRP. The Keynesian reasoning chain -a non self-regulated system, non neutrality on the part of money, organicism, non-ergodicity, historical time and uncertainty- is misunderstood and hence misapplied on the part of these deviant schools, or transformed into “bastard Keynesianism”, to quote Joan Robinson (Joan Robinson, 1975[1973], 125). In other words, Keynes’s economics is different from Keynesian economics as was firstly proposed by Axel Leijonhuvfud (Leijonhuvfud, 1968). The internal history of macroeconomics in those periods is undertaken, since it is is the rational reconstruction of the meaning of a SRP. Section 1 is an introduction to basic concepts related to philosophy of science and methodology, especially Lakatosian methodology, which can be skipped by the specialized reader. Section 2 is an analysis of Keynes’s hard core in his SRP, also being an introduction to the problem as it outlines Keynes’s thinking, Section 3 describes initial Post Keynesianism, which was faithful to the original message. Sections 4, 5, 6 and 7 outline the hard cores of Monetarists, Neoclassical Synthesis, New Classical Macroeconomics and General Disequilibrium, respectively. Section 8 is a comprehensive analysis of the differences between the mentioned paradigms, and hence concludes. References are listed at the end of the article. (shrink)

I start with some famous comments by the philosopher (psychologist) Ludwig Wittgenstein because Pinker shares with most people (due to the default settings of our evolved innate psychology) certain prejudices about the functioning of the mind and because Wittgenstein offers unique and profound insights into the workings of language, thought and reality (which he viewed as more or less coextensive) not found anywhere else. The last quote is the only reference Pinker makes to Wittgenstein in this volume, which is most (...) unfortunate considering that he was one of the most brilliant and original analysts of language. -/- In the last chapter, using the famous metaphor of Plato’s cave, he beautifully summarizes the book with an overview of how the mind (language, thought, intentional psychology) –a product of blind selfishness, moderated only slightly by automated altruism for close relatives carrying copies of our genes--works automatically, but tries to end on an upbeat note by giving us hope that we can nevertheless employ its vast capabilities to cooperate and make the world a decent place to live. -/- Pinker is certainly aware of but says little about the fact that far more about our psychology is left out than included. Among windows into human nature that are left out or given minimal attention are math and geometry, music and sounds, images, events and causality, ontology (classes of things), dispositions (believing, thinking, judging, intending etc) and the rest of intentional psychology of action, neurotransmitters and entheogens, spiritual states (e.g, satori and enlightenment, brain stimulation and recording, brain damage and behavioral deficits and disorders, games and sports, decision theory (incl. game theory and behavioral economics), animal behavior (very little language but a billion years of shared genetics). Many books have been written about each of these areas of intentional psychology. The data in this book are descriptions, not explanations that show why our brains do it this way or how it is done. How do we know to use the sentences in their various way (i.e., know all their meanings)? This is evolutionary psychology that operates at a more basic level –the level where Wittgenstein is most active. And there is scant attention to context. -/- Nevertheless this is a classic work and with these cautions is still well worth reading. -/- Those wishing a comprehensive up to date framework for human behavior from the modern two systems view may consult my book ‘The Logical Structure of Philosophy, Psychology, Mind and Language in Ludwig Wittgenstein and John Searle’ 2nd ed (2019). Those interested in more of my writings may see ‘Talking Monkeys--Philosophy, Psychology, Science, Religion and Politics on a Doomed Planet--Articles and Reviews 2006-2019 3rd ed (2019), The Logical Structure of Human Behavior (2019), and Suicidal Utopian Delusions in the 21st Century 4th ed (2019). (shrink)

We investigate the conflict between the ex ante and ex post criteria of social welfare in a new framework of individual and social decisions, which distinguishes between two sources of uncertainty, here interpreted as an objective and a subjective source respectively. This framework makes it possible to endow the individuals and society not only with ex ante and ex post preferences, as is usually done, but also with interim preferences of two kinds, and correspondingly, to introduce interim forms of the (...) Pareto principle. After characterizing the ex ante and ex post criteria, we present a first solution to their conflict that extends the former as much possible in the direction of the latter. Then, we present a second solution, which goes in the opposite direction, and is also maximally assertive. Both solutions translate the assumed Pareto conditions into weighted additive utility representations, and both attribute to the individuals common probability values on the objective source of uncertainty, and different probability values on the subjective source. We discuss these solutions in terms of two conceptual arguments, i.e., the by now classic spurious unanimity argument and a novel informational argument labelled complementary ignorance. The paper complies with the standard economic methodology of basing probability and utility representations on preference axioms, but for the sake of completeness, also considers a construal of objective uncertainty based on the assumption of an exogeneously given probability measure. JEL classification: D70; D81. (shrink)

This open access book presents a comparative study of two classics of world literature, offering the first sustained study of what unites and divides the Nicomachean Ethics and the Bhagavad Gita. -/- Asking what the texts think is the nature of moral action and how it relates to the highest good, Roopen Majithia shows how the Gita stresses the objectivity of knowledge and freedom from being a subject, while the Ethics emphasizes the knower, working out Aristotle’s central commitment to the (...) idea of substance as the primary building block of the world. Yet both the Gita and the Ethics explain variety in human behaviour in terms of three driving forces. Both agree moral agency is a construct that is a function of background, education and habit, presupposing a cultural, political and economic infrastructure. -/- What distinguishes the texts is how the content of right action is generated. Reading them together, alert to their individual accounts of how the practical relates to the reflective dimensions of life, Majithaia enriches our understanding of two cornerstone texts in the Greek and Indian philosophical traditions. -/- The ebook editions of this book are available open access under a CC BY-NC-ND 4.0 licence on bloomsburycollectionsdotcom. Open access was funded by The Marjorie Young Bell Faculty Fund and The Hart Almerrin Massey Endowment. (shrink)

Istvan Hont’s classic work on the theoretical links between the seventeenth-century natural jurists Hugo Grotius and Samuel Pufendorf and the eighteenth-century Scottish political economists remains a popular trope among intellectual and economic historians of various stamps. Despite this, a common criticism levelled at Hont remains his relative lack of engagement with the relationship between religion and economics in the early modern period. This paper challenges this aspect of Hont’s narrative by drawing attention to an alternative, albeit complementary, assessment of (...) the natural jurisprudential heritage of eighteenth-century British political economy. Specifically, the article attempts to map on to Hont’s thesis the Christian Stoic interpretation of Grotius and Pufendorf which has gained greater currency in recent years. In doing so, the paper argues that Grotius and Pufendorf’s contributions to the ‘unsocial sociability’ debate do not necessarily lead directly to the Scottish school of political economists, as is commonly assumed. Instead, it contends that a reconsideration of Grotius and Pufendorf as neo-Stoic theorists, particularly via scrutiny of their respective adaptations of the traditional Stoic theory of oikeiosis, steers us towards the heart of the early English ‘clerical’ Enlightenment. (shrink)

Extensive measurement is the standard measurement-theoretic approach for constructing a ratio scale. It involves the comparison of objects that can be concatenated in an additively representable way. This paper studies the implications of extensively measurable welfare for social choice theory. We do this in two frameworks: an Arrovian framework with a fixed population and no interpersonal comparisons, and a generalized framework with variable populations and full interpersonal comparability. In each framework we use extensive measurement to introduce novel domain restrictions, independence (...) conditions, and constraints on social evaluation. We prove a welfarism theorem for these domains and characterize the social welfare functions that satisfy the axioms of extensive measurement at both the individual and social levels. The main results are simple axiomatizations of strong dictatorship in the Arrovian framework and classical utilitarianism in the generalized framework. (shrink)

Historically, republicans were of different minds about markets: some, such as Rousseau, reviled them, while others, like Adam Smith, praised them. The recent republican resurgence has revived this issue. Classical liberals such as Gerald Gaus contend that neo-republicanism is inherently hostile to markets, while neo-republicans like Richard Dagger and Philip Pettit reject this characterization—though with less enthusiasm than one might expect. I argue here that the right republican attitude toward competitive markets is celebratory rather than acquiescent and that republicanism (...) demands such markets for the same reason it requires the rule of law: because both are essential institutions for protecting individuals from arbitrary interference. I reveal how competition restrains—and in the limit, even eradicates—market power and thereby helps us realize “market freedom,” i.e., freedom as non-domination in the context of economic exchange. Finally, I show that such freedom necessitates “Anglo-Nordic” economic policies. (shrink)

We cooperate with other people despite the risk of being exploited or hurt. If future artificial intelligence (AI) systems are benevolent and cooperative toward us, what will we do in return? Here we show that our cooperative dispositions are weaker when we interact with AI. In nine experiments, humans interacted with either another human or an AI agent in four classic social dilemma economic games and a newly designed game of Reciprocity that we introduce here. Contrary to the hypothesis that (...) people mistrust algorithms, participants trusted their AI partners to be as cooperative as humans. However, they did not return AI's benevolence as much and exploited the AI more than humans. These findings warn that future self-driving cars or co-working robots, whose success depends on humans' returning their cooperativeness, run the risk of being exploited. This vulnerability calls not just for smarter machines but also better human-centered policies. (shrink)