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on History and Philosophy of Economics |
| By: | Christian, Grönroos (Swedish School of Economics and Business Administration) |
| Abstract: | The goods-dominated marketing model has major shortcomings as a guiding marketing theory. Its marketing mix approach is mainly geared towards buying and does not include consumption as an integral part of marketing theory. Although it is during the process of consuming goods and services that value is generated for customers and the foundation for repeat purchasing and customer relationships are laid, this process is left outside the scope of marketing. <p> The focus in service marketing is not on a product but on interactions in service encounters. Consumption has become an integral part of a holistic marketing model. Other than standardized goods-based value propositions can be better understood when taking a servicebased approach. It is concluded that marketing based on a goods logic is but a special case of marketing based on a service logic and applicable only in certain contexts with standardized products. |
| Keywords: | Service marketing; marketing logic; relationship |
| Date: | 2005–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:hhb:hanken:0508&r=hpe |
| By: | Nicolai J. Foss |
| Keywords: | firm growth; capabilities; firm strategy |
| JEL: | L21 L22 M2 |
| URL: | http://d.repec.org/n?u=RePEc:ivs:iivswp:98-1&r=hpe |
| By: | Kirsten Foss; Nicolai Foss |
| Abstract: | Proponents of the emerging knowledge-based (resource-based, competence-based, etc.) theory of the firm have subjected more traditional economics of organization theories to strong critiques. Rather than directly answering this critique, we examine key ideas of the knowledge-based approach, and argue that these are not necessarily in conflict with basic ideas from organizational economics (particularly ideas relating to the property rights approach), but are either complementary to or consistent with these. In fact, property rights economics and other organizational economics ideas may at least to some extent constitute a much needed micro-foundation for the knowledge-based perspective. The purpose of this exercise is 1) to facilitate dialogue, 2) to dispel false claims of insurmountable differences between the two approaches, and 3) to establish what is genuinely different in the knowledge-based approach. |
| Keywords: | economic organization; firm knowledge, governance |
| JEL: | M21 B49 |
| URL: | http://d.repec.org/n?u=RePEc:ivs:iivswp:98-5&r=hpe |
| By: | Katarina Juselius (Institute of Economics, University of Copenhagen); Søren Johansen (Department of Mathematical Statistics, University of Copenhagen) |
| Abstract: | The cointegrated VAR model is proposed as an empirically coherent framework for analyzing macroeconomic phenomena within a dynamic system of pulling and pushing forces. As an illustration we show how an economic theory for inflation and money demand gives rise to a number of hypotheses formulated as testable parameter restrictions on cointegrating relations and common trends. The procedure not only allows us to test prior theoretical hypotheses in a valid maximum likelihood framework but also provides additional empirical results suggesting how to modify or improve our theoretical understanding. The latter is important when theoretical implications fail to hold in the data. |
| Keywords: | cointegrated VAR; inflation; money growth; empirical methodology |
| JEL: | B41 C32 E40 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuiedp:0505&r=hpe |
| By: | Greg Hannsgen |
| Abstract: | Recently, many economists have credited the late-1990s economic boom in the United States for the easy money policies of the Federal Reserve. On the other hand, observers have noted that very low interest rates have had very little positive effect on the chronically weak Japanese economy. Therefore, some theory of how money affects the economy when it is endogenous would be useful. This paper pursues several such explanations, including the effects of interest rate changes on (1) investment; (2) consumer spending; (3) the exchange rate; and (4) financial markets. The theories of such authors as Kalecki, Keynes, Minsky, and J. K. Galbraith are discussed and evaluated, with an emphasis on the role of cash flow. Some of these theories turn out to be stronger than others when subjected to tests of logic and empirical evidence. |
| Date: | 2004–10 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp412&r=hpe |
| By: | Mathew Forstater |
| Abstract: | Ecological economics is a transdisciplinary alternative to mainstream environmental economics. Attempts have been made to outline a methodology for ecological economics and it is probably fair to say that, at this point, ecological economics takes a "pluralistic" approach. There are, however, some common methodological themes that run through the ecological economics literature. This paper argues that the works of Adolph Lowe and Robert Heilbroner can inform the development of some of those themes. Both authors were aware of the environmental challenges facing humanity from quite early on in their work, and quite ahead of time. In addition, both Lowe's <EM>Economics and Sociology</EM> (and related writings) and Heilbroner's "Worldly Philosophy" (itself influenced by this work of Lowe) recognized the endogeneity of the natural environment, the impact of human activity on the environment, and the implications of this for questions of method. Lowe and Heilbroner also became increasingly concerned with issues related to the environment over time, such that these issues became of prime importance in their frameworks. This work deals directly with ecological and environmental issues; both authors also dealt with other issues that relate to the environmental challenge, such as technological change. But it is not only their work that explicitly addresses the environment or relates to environmental challenges that is relevant to the concerns of ecological economists. Both Heilbroner's "Worldly Philosophy" and Lowe's "Political Economics" offer insights that may prove useful in developing a methodology of ecological economics. Ecological economists have taken a pluralistic approach to methodology, but the common themes in this work regarding the importance and nature of vision, analysis (including structural analysis), scenarios, implementation, the necessity of working backwards, the role for imagination, rejecting the positive/normative dichotomy, and so on, all are issues that have been elaborated in Lowe's work, and in ways that are relevant to ecological economics. The goal of the paper is actually quite modest: to make ecological economists aware of the work of the two authors, and get them interested enough to explore the possible contribution of these ideas to their methodological approach. |
| Date: | 2004–10 |
| URL: | http://d.repec.org/n?u=RePEc:lev:wrkpap:wp413&r=hpe |
| By: | Giancarlo Origgi (Cattaneo University (LIUC)) |
| Abstract: | It’s some time since the ensemble of the economical activities, namely the "system" of creating welfare once described as the "capitalistic production system", is now arousing criticism also in those who still are its supporters, despite of the enormous results reached in terms of welfare spreading. This criticism concerns two distinctive aspects: the disparity increase between "first" and "third" world and the excessive relevance on quantitative and measurable life aspects compared to the qualitative ones, known in the common language as "values". This analysis aims to uphold that this situation does not depend as much on the particular "production system" as on the fact that, if the economy in its aspect of existential "activity" tends to be economy by respecting its finality of wealth creator, then it necessarily has to come into conflict with the other two "practices" forming the framework of every social system, politics and ethic, and this same conflict will become more sharp if the economy appears as the winning "practice". |
| Date: | 2005–02 |
| URL: | http://d.repec.org/n?u=RePEc:liu:liucec:163&r=hpe |
| By: | Schlicht, Ekkehart |
| Abstract: | Lujo Brentano (1844-1931) hat sich als "realistischen" Ökonomen verstanden. Im Bereich der Arbeitsmarkttheorie sind zwei Bereiche von besonderem Interesse: Seine Untersuchungen über den Zusammenhang zwischen Lohn, Arbeitszeit und Arbeitsleistung und seine Überlegungen zur Bildung von kollektiven Formen der Lohnsetzung. Diese beiden Themen werden unter Einbeziehung gesamtwirtschaftlicher und methodischer Aspekte unter Einbeziehung einiger moderner Gesichtspunkte diskutiert. |
| JEL: | J1 B1 J3 |
| Date: | 2005–04 |
| URL: | http://d.repec.org/n?u=RePEc:lmu:muenec:568&r=hpe |
| By: | Paul A. David (All Souls College, Oxford & Stanford University) |
| Abstract: | The current reconsideration of public research funding policies in the U.S., and U.K. and other industrialized economies makes it important that policy makers and the public understand the valid economic grounds for government support of science. This review article of a book that which argues for the ending of all government support of non-military R&D, provides an occasion to take stock of what is known about the subject. The review concludes that the extreme laissez-faire science policy arguments adroitly advanced by Terrance Kealey's book are analytically without foundation, and are based upon distortions and misinterpretations of the evidence of economic history, as well as on the misuse of econometric methods. The problem is that Mr. Kealey is an engaging writer and there still is in some policy circles an audience for his message, hence to undo the damage will call for concerted and persistent efforts on the part of economists specializing in the economics of science and technology. |
| JEL: | O P |
| Date: | 2005–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpdc:0502013&r=hpe |
| By: | M. Ulric Killion (Shanghai International Studies University) |
| Abstract: | Despite the shortcomings of Hayek’s spontaneous order, there is a positive side, perhaps even a positive feedback. Hayek left us with a “what if” question and returns us to that initial opening of Pandora’s Box, or perhaps the initial onset of neo-realism, neo-liberalism, developmentalism, globalism, transnationalism and other concepts, precepts and adjectives justifying institution building by bargaining and military force. In terms of new world order, institution building by necessity requires fundamental changes in governmental structures in non-Western cultures and nation-states such as China, Afghanistan and Iraq. Such changes are being prompted by means of political, economic and military powers of the U.S. and other developed nation-states, and international intergovernmental organizations dominated by developed nation-states such as the World Trade Organization. However arguably well intended there remains the question of what will eventually result from the introduction of Western institutions into non-Western cultures and developing countries. This article explores F. A. Hayek’s discourse concerning taxis and cosmos (Kosmos), in terms of institution building. This article addresses why China presents an instance of institution building by bargaining, while countries such as Iraq and Afghanistan offer instances of institution building by military force, then directs emphasis toward institutional and constitutional reform, and an evolution of Western law in non-Western cultures and developing nation- states such as China, Afghanistan, and Iraq. Although Hayek may have had contrary intentions, his discourse on taxis and cosmos (Kosmos), and spontaneous order, nonetheless, challenges a modern Western world to rethink its priorities and policies, and perhaps even foundational ideologies, especially in the realm of rebuilding non-Western cultures and developing countries. |
| Keywords: | Western, Institution building, F. A. Hayek, War, WTO, Cosmos, constitutions, laws, international, politics, economics, military, force, neo-realism, neo-liberalism, developmentalism, globalism, transnationalism |
| JEL: | F1 F2 P Q Z |
| Date: | 2005–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpdc:0503006&r=hpe |
| By: | Oded Galor (Brown University) |
| Abstract: | This chapter examines the process of development from an epoch of Malthusian stagnation to a state of sustained economic growth. The analysis focuses on recently advanced unified growth theories that capture the intricate evolution of income per capita, technology, and population over the entire course of human history. The inconsistency of non-unified growth models with the main characteristics of the process of development across most of human history induced growth theorists to advance an alternative theory that captures in a single unified framework the epoch of Malthusian stagnation, the modern era of sustained economic growth, and the recent transition between these distinct regimes. Unified growth theory reveals the underlying micro foundations that are consistent with the growth process over the entire history of the human species, enhancing the confidence in the viability of the theory, its predictions and its policy implications for the growth process of less developed economies. |
| Keywords: | Growth, Technological Progress, Demographic Transition, Income Distribution, Human Capital, Evolution, Natural Selection, Malthusian Stagnation, Class Structure. |
| JEL: | O11 O14 O33 O40 J11 J13 |
| Date: | 2005–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpdc:0504001&r=hpe |
| By: | Paul A.David (All Souls College, Oxford & Stanford University) |
| Abstract: | The concept of path dependence refers to a property of contingent, non- reversible dynamical processes, including a wide array of biological and social processes that can properly be described as 'evolutionary.' To dispell existing confusions in the literature, and clarify the meaning and significance of path dependence for economists, the paper formulates definitions that relate the phenomenon to the property of non-ergodicity in stochastic processes; it examines the nature of the relationship between between path dependence and 'market failure,' and discusses the meaning of 'lock-in.' Unlike tests for the presence of non-ergodicity, assessments of the economic significance of path dependence are shown to involve difficult issues of counterfactual specification, and the welfare evaluation of alternative dynamic paths rather than terminal states. The policy implications of the existence of path dependence are shown to be more subtle and, as a rule, quite different from those which have been presumed by critics of the concept. A concluding section applies the notion of 'lock-in' reflexively to the evolution of economic analysis, suggesting that resistence to historical economics is a manifestation of 'sunk cost hysteresis' in the sphere of human cognitive development. |
| Keywords: | path dependence, non-ergodicity, irreversibility, lock-in, counterfactual analysis |
| JEL: | N |
| Date: | 2005–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0502003&r=hpe |
| By: | Paul A. David (All Souls College, Oxford) |
| JEL: | N |
| Date: | 2005–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0502004&r=hpe |
| By: | Didier BENSADON (Université de Nantes) |
| Abstract: | This survey aims to analyse the evolutions of the consolidation perimeter concept through reports and studies issued by public and private organizations implied in the financial report issue. A supplementary lighting is brought on the practice of the groups thanks to the analysis of Saint-Gobain consolidated accounts between 1965 and 1985. Résumé Cette recherche se propose d’analyser les évolutions de la notion de périmètre de consolidation au travers de rapports et études émanant d’organismes publics et privés impliqués dans l’information financière. Un éclairage supplémentaire est apporté sur la pratique des groupes grâce à l’analyse des comptes consolidés de Saint-Gobain entre 1965 et 1985. |
| Keywords: | Accounting history, consolidated accounts, consolidation perimeter, Saint-Gobain. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503003&r=hpe |
| By: | Cheryll S. Mc WATTERS (University of Alberta); Yannick LEMARCHAND (Université de Nantes) |
| Abstract: | Malgré un titre très général qui explique certainement le peu de place qui lui a été fait jusque-là dans l'histoire de la comptabilité, le Guide du commerce de Gaignat de l'Aulnais (1771) est vraisemblablement l'un des tout premiers manuels spécialisés de comptabilité, mais d'une spécialisation qui lui confère une place très particulière. Au-delà de quelques paragraphes consacrés aux matières commerciales traditionnelles — marchandises à échanger en divers pays, pratique du change, effets de commerce, poids et mesures, etc. — et d'une présentation relativement classique de la tenue des livres en partie simple et parties doubles, l'ouvrage est essentiellement consacré au commerce maritime et, plus particulièrement, à l'un de ses aspects les plus dramatiques : la traite négrière. L’essor consécutif d’une fiscalité complexe a fourni par la suite tant à ces juristes qu’aux comptables un rôle de plus en plus important qu’ils se partageaient. L’Etat, pour assurer sa quiétude quant à l’établissement de l’assiette fiscale, formalisera alors une profession comptable libérale connue aujourd’hui sous le titre d’expert-comptable. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503011&r=hpe |
| By: | Yves LEVANT (ESC Lille); Marc NIKITIN (Université Orleans) |
| Abstract: | In the first half of the 20th century France, consultants offered their services to big firms, sometimes successfully. In a somewhat cloudy economic context, some of them, like Bedaux or Perrin, elaborated more ambitious social projects, in order to cope with the economic disorders. All those projects failed. L’Etat, pour assurer sa quiétude quant à l’établissement de l’assiette fiscale, formalisera alors une profession comptable libérale connue aujourd’hui sous le titre d’expert-comptable. |
| Keywords: | Consultants – Business History – France – 20th century- Bedaux – Perrin |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503012&r=hpe |
| By: | Marc MALHERBE (Université Montesquieu Bordeaux IV) |
| Abstract: | Comptabilité et droit n’ont pas toujours été deux sciences indépendantes. Sous l’Antiquité romaine, la comptabilité privée a largement contribué à la formation du droit romain, particulièrement entre le second siècle avant Jésus-Christ et le IIIe siècle de notre ère. Pendant cette période de cinq siècles, la comptabilité privée a tout d’abord constitué un moyen de preuve très utile en cas de litige, avant de devenir une véritable source du droit des contrats. Ce n’est qu’au Bas-Empire que son influence s’affaiblira, lorsque le droit deviendra complètement autonome. |
| Keywords: | Comptabilité privée. Droit romain. Codex accepti et expensi. Expensilatio. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503013&r=hpe |
| By: | Nicolas PRAQUIN (Université Marne la vallée) |
| Abstract: | En consacrant le principe de responsabilité limitée aux apports pour les actionnaires de sociétés anonymes, le législateur introduisait dans le code de commerce de 1807 une règle novatrice qui aura des répercussions majeures sur la façon de concevoir la comptabilité dans son rapport avec les créanciers ; elle se traduit par le principe de fixité du capital à partir de 1818. Initialement rudimentaire, le concept devient complexe à mesure que se transforment l’environnement socio-économique et les pratiques comptables. La discussion entre comptables et juristes s’avère féconde : la règle juridique s’inscrit progressivement comme principe comptable avant d’être abandonnée lors de la mise en œuvre des plans comptables français. |
| Keywords: | Fixité du capital – Capital social – Créanciers – Code de commerce – Principes comptables – Situation nette. |
| JEL: | N |
| Date: | 2005–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0503014&r=hpe |
| By: | stephane verani (The University of Western Australia) |
| Abstract: | In this short note, a broad analysis of the tatonnement in Leon Walras theory of General Equilibrium is conducted. The possible origin of the tatonnement in Walras's theory and the basic mechanics of this process are discussed. Using modern and conflicting interpretations of the Edgeworth-Walras debate it is shown that the tatonnement process is not part of a dynamic model. |
| Keywords: | Leon Walras, tatonnement process, Edgeworth-Walras debate |
| JEL: | N |
| Date: | 2005–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpeh:0504001&r=hpe |
| By: | Cornelis A. Los (Kent State University) |
| Abstract: | In 1928 Cobb and Douglas (C&D) presented a system analysis which established the first empirically identified production model, which forms the foundation for Solow's growth theory and research into productivity growth factors, such as 'technological progress ' and 'human capital development '. C&D claimed that their production model ('function') showed neutral economies of scale, i.e., constant returns to scale, with a labor production elasticity of 3/4 and a capital production elasticity of 1/4. A simple CLS analysis shows that C&D's data were incorrectly identified by an (n,q)=(3,1) linear model. C&Ds claim that their neutral 'constant returns of scale ' was the inevitable scientific conclusion of their analysis was also incorrect, since that conclusion is strictly determined by their subjectively chosen projection direction. In fact, the data shows that with their model and identification technology constant, increasing and diminishing returns to scale are all three compatible with the uncertain data. Their (n,q) = (3,1) model was never identified with an acceptable level of scientific accuracy, with a maximum coefficient value variation of 212%). In contrast, a simple two-equation (n,q) = (3,2) system model can be accurately identified from C&Ds data set, with an acceptable level of accuracy, with a maximum coefficient value variation of 7.4%). |
| Keywords: | System identification, growth theory, production elasticities, projections, Complete Least Squares, noisy data |
| JEL: | C1 C2 C3 C4 C5 C8 |
| Date: | 2005–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpem:0502013&r=hpe |
| By: | Patrick Crowley (Texas A&M University - Corpus Christi) |
| Abstract: | Wavelet analysis, although used extensively in disciplines such as signal processing, engineering, medical sciences, physics and astronomy, has not yet fully entered the economics discipline. In this discussion paper, wavelet analysis is introduced in an intuitive manner, and the existing economics and finance literature that utilises wavelets is explored. Extensive examples of exploratory wavelet analysis are given, many using Canadian, US and Finnish industrial production data. Finally, potential future applications for wavelet analysis in economics are also discussed and explored. |
| Keywords: | statistical methodology, multiresolution analysis, wavelets, business cycles, economic growth |
| JEL: | C19 C87 E32 |
| Date: | 2005–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpem:0503017&r=hpe |
| By: | J.S. Armstrong (The Wharton School) |
| Abstract: | Studies in marketing research often start with data rather than with a theory. This exploratory or inductive approach is at odds with the more preferred scientific method where the theory precedes the data in any single research study. (See, for example, the discussion by Francis, 1957) Because exploratory research is common, however, one might argue that it is of some value. A number of researchers have claimed that the exploratory approach leads to new and useful theories. But there is also the danger that the research will produce false leads or useless theories. An attempt is made in this paper to illustrate the dangers inherent in the exploratory approach. The question of whether the potential benefits are large enough to outweigh the dangers is left to the reader. |
| JEL: | A |
| Date: | 2005–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502002&r=hpe |
| By: | J.S. Armstrong (The Wharton School) |
| Abstract: | The importance of the researcher^Rs interpretation of factor analysis is illustrated by means of an example. The results from this example appear to be meaningful and easily interpreted. The example omits any measure of reliability or validity. If a measure of reliability had been included, it would have indicated the worthlessness of the results. A survey of 46 recent papers from 6 journals supported the claim that the example is typical, two-thirds of the papers provide no measure of reliability. In fact, some papers did not even provide sufficient information to allow for replication. To improve the current situation some measure of factor reliability should accompany applied studies that utilize factor analysis. Three operational approaches are suggested for obtaining measures of factor reliability: use of split samples, Monte Carlo simulation, and a priori models. |
| Keywords: | factor analysis |
| JEL: | A |
| Date: | 2005–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502003&r=hpe |
| By: | J.S. Armstrong (The Wharton School) |
| Abstract: | Recently, I published a letter in the Wall Street Journal (Armstrong 2004a) with the basic message that business school education has been losing effectiveness. Most important, students are not learning to do things, such as making an effective oral presentation, writing a persuasive management report, listening to others, conducting a meeting, or using statistical procedures to analyze data. This problem is not confined to business schools; it is plaguing the educational system on almost every level. My letter drew responses from alumni, faculty, recruiters, consultants, and students. Nearly all of them agreed with my assessment, claiming that the problem is rampant but ignored. As I will show below, however, evidence-based suggestions can resolve the problem. |
| Keywords: | learning, universities |
| JEL: | A |
| Date: | 2005–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502006&r=hpe |
| By: | J.S. Armstrong (The Wharton School) |
| Abstract: | Despite the lead article^Rs title ^SValidity Concerns and Usefulness of Student Ratings of Instruction^T (Greenwald 1997) in the American Psychologist^R^Rs special section on teacher ratings, the papers did not provide direct evidence on ^Susefulness.^T There is no evidence that the use of teacher ratings improves learning in the long run. The papers do not show that the effects would improve the allocation of effort between teaching and research, or that the quality of the educational experience will be better, or that students and faculty will be happier. Given the evidence to date, the case for student ratings is weak. I raise some questions about usefulness, with a particular emphasis on the ratings^R effects on learning. |
| Keywords: | learning, universities |
| JEL: | A |
| Date: | 2005–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502007&r=hpe |
| By: | J. S. Armstrong (The Wharton School) |
| Abstract: | We examined the relationships between the research originating at business schools, students^R satisfaction with the schools, and the published ratings of the school^Rs prestige. Research was positively correlated to prestige (where prestige was based on the perceptions of academics, firms, and student candidates). The satisfaction of recent graduates was not related to a school^Rs prestige (based on the perceptions of academics and business firms). Research productivity of schools was not associated with lower satisfaction among their recent graduates. We conclude that schools should emphasize research instead of teaching if they desire high prestige. |
| Keywords: | learning, universities, business schools |
| JEL: | A |
| Date: | 2005–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502009&r=hpe |
| By: | J. S. Armstrong (The Wharton School) |
| Abstract: | Romer (1993) suggests that universities should undertake experiments that would test the value of mandatory attendance for economics courses. He presents evidence showing that those who attended his classes received higher grades on his exams and concluded that ^San important part of the relationship [to the course grade] reflects a genuine effect of attendance.^T This conclusion is likely to be welcomed by some economics professors. In this note, I address two issues. First, what does prior research imply about a relationship between attendance and learning? Second, does Romer^Rs own evidence support his conclusion that mandatory attendance is beneficial? |
| Keywords: | learning, universities, business schools |
| JEL: | A |
| Date: | 2005–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502010&r=hpe |
| By: | J. S. Armstrong (The Wharton School) |
| Abstract: | Formal education can be improved by transferring responsibility from the teacher to the learner. A simple approach to this is the time contract. Time contracts have been used successfully in nine quasi-experiments but, despite these successes, some educators see this as subversive research. |
| Keywords: | learning, universities, teachers |
| JEL: | A |
| Date: | 2005–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502012&r=hpe |
| By: | JS Armstrong (The Wharton School) |
| Abstract: | Hartley, Trueman and Meadows [3] contribute useful evidence on whether scientists can gain prestige by writing in a manner that is difficult to read. This has been called the bafflegab theory by some. They concluded that the evidence was not strong. This comment examines some of the conclusions from Hartley, Trueman, and Meadows (HTM) and recommends directions for further research. |
| Keywords: | readability, prestige, scientific journal, publication |
| JEL: | A |
| Date: | 2005–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502053&r=hpe |
| By: | Ianina Rossi (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Alvaro Forteza (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República) |
| Abstract: | The purpose of this paper is to serve as an input in the revision of the evaluation guidelines of the Department of Economics FCS – UDELAR (dECON). With this aim, we report on what is taken into account in academic evaluation around the world, and which are the most frequently used methods of evaluation and the sources of information related to them. Finally, we present the evaluation guidelines used in economic departments in Brazil, Chile, Spain and the United States and compare them with those currently used in dECON. This paper has three files attached with detailed information on references and points granted to journals in several academic institutions(http://www.decon.edu.uy/pub lica/publicac_.html). |
| Keywords: | academic evaluation, bibliographic references, bibliometric indicators, citation analysis, journal ranking, opinion surveys. |
| JEL: | A14 |
| Date: | 2005–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502070&r=hpe |
| By: | Thomas Colignatus (Thomas Cool Consultancy & Econometrics) |
| Abstract: | This paper gives the announcement that the 2nd edition of DRGTPE is available at Dutch University Press. The basic idea of the book is that Keynes's General Theory is generalised even further by including endogenous government in the model, so that we arrive at a truly general Political Economy. By including 'stagnation in economic policy making' in our analysis we arrive at a better understanding of the Great Depression and the Great Stagflation. The general theory also explains why it would be advisable for a democratic society to create an Economic Supreme Court as a separate constitutional power, next to the Legislative, Executive and Judicial branches. This book primarily gives theory and stylized facts, and it is primarily directed at my fellow economists. The colleagues specifically will need to learn to understand the Definition and Reality methodology before they will appreciate that my analysis is scientifically warranted. Much work remains to be done in practical research. And much work remains to be done by the other professions. It may be hoped, none the less, that the parliaments of our democratic nations investigate the issue too, so that there is more hope for improvement in the living conditions of the many victims of the current imbalance of powers. |
| JEL: | A00 |
| Date: | 2005–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502072&r=hpe |
| By: | Thomas Colignatus (Thomas Cool Consultancy & Econometrics) |
| Abstract: | The world has 6 billion people, and rising, and we like them all to know a little bit of economics. This means that there is a huge market for economic theory, economics textbooks and teachers. As groups of economists have the objective to get a little bit of the action, a key strategy seems to be to label oneself differently, say X, so that all customers can be told that if they want the real thing then they need X. What to think of labels like "realistic economics", "heterodox economics" and the "post-autistic economics network" ? If you don't join, are you non-realistic, orthodox and autistic ? Economics is in danger of turning into a zoo. As the animals have taken over the zoo too, there is nothing to control them but common sense. Common sense can be taxed needlessly. The preferred strategy is to provide quality, and then add proper labels that advance understanding. |
| JEL: | A00 |
| Date: | 2005–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0502074&r=hpe |
| By: | Ofer H. Azar |
| Abstract: | Rewards for publications in good economics journals are very high, while submission fees and other monetary costs associated with submitting an existing manuscript are low. Consequently, the editorial delay (especially the first response time – the time until the first editorial decision), by postponing monetary rewards to publication, constitutes the major submission cost (from the author’s perspective). Reducing the delay will induce many additional submissions of low-quality papers to good journals, increasing significantly the workload of editors and referees. Moreover, the rejection rate will increase and cause papers to be rejected more times prior to publication, offsetting at least some of the shorter first response times. As a result, the efforts of many editors to reduce the editorial delay, while attracting more submissions to their journals, may have adverse effects from a social perspective, and the optimal delay might be longer than the current average of four months. |
| Keywords: | Review process, refereeing, publishing, academia, research, first response times, academic review process |
| JEL: | A19 |
| Date: | 2005–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpgt:0503013&r=hpe |
| By: | Christian Jaag (University of St. Gallen Institute of Public Finance & Fiscal Law) |
| Abstract: | This paper deals with the optimality of teacher incentive contracts in the presence of costly or limited government resources. It considers educational production under asymmetric information as a function of teacher effort and class size. In the presence of costly government resources and convex effort costs, teacher monitoring - which is wasteful in principle - may be superior to merit pay in order to induce second-best teacher effort; optimum class size is not affected by informational deficiencies. If the government budget is exogenously fixed, optimum teacher effort may not be affordable, which is shown to make the case for monitoring activity instead of incentive pay even stronger. |
| Keywords: | Education, Moral Hazard, Monitoring, Merit Pay, Incentives, Teachers |
| JEL: | I21 I28 D82 |
| Date: | 2005–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwphe:0503003&r=hpe |
| By: | Jean-Michel Dalle (Université Pierre et Marie Curie); P. A. David (Stanford University); Rishab A. Ghosh (University of Maastricht-MERIT); W. E. Steinmueller (University of Sussex-SPRU) |
| Abstract: | Early contributions to the academic literature on free/libre and open source software (F/LOSS) movements have been directed primarily at identifying the motivations that account for the sustained and often intensive involvement of many people in this non-contractual and unremunerated productive activity. This issue has been particularly prominent in economists’ contributions to the literature, and it reflects a view that widespread voluntary participation in the creation of economically valuable goods that is to be distributed without charge constitutes a significant behavioral anomaly. Undoubtedly, the motivations of F/LOSS developers deserve to be studied more intensively, but not because their behaviors are unique, or historically unprecedented. In this essay we argue that other aspects of the “open source” phenomenon are just as intriguing, if not more so, and possibly are also more consequential topics for economic analysis. We describe the re-focusing and re-direction of empirical and theoretical research in an integrated international project (based at Stanford University/SIEPR) that aims at better understanding a set of less widely discussed topics: the modes of organization, governance and performance of F/LOSS development -- viewed as a collective distributed mode of production.. We discuss of the significance of tackling those questions in order to assess the potentialities of the “open source way of working” as a paradigm for a broader class of knowledge and information- goods production, and conclude with proposals for the trajectory of future research along that line. |
| JEL: | L |
| Date: | 2005–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpio:0502007&r=hpe |
| By: | Joseph Farrell (Department of Economics, University of California at Berkeley) |
| Abstract: | While exclusive dealing can be efficient, the Chicago School has also argued that it cannot be anticompetitive, or that it seldom is. That argument takes two forms; both are weak. First, a pricetheory argument (“the Chicago Three-Party Argument”) depends crucially on a special model of oligopoly and predicts that we will never see what we see. I show how simply replacing the embedded oligopoly model suggests new efficiency and anticompetitive motives for exclusive dealing; these motives differ markedly from those usually discussed. Second, “the Chicago Vertical Question” is a challenge to theories of anticompetitive vertical practices, including exclusive dealing. While that Question is salutary and helpful, its apparent force dissipates if we pay careful attention to externalities, as others have noted, and to the issue of alternatives versus benchmarks, as I describe below. Overall, economic logic does not support any general presumption that exclusive dealing is efficient. |
| Keywords: | Exclusive dealing, vertical restraints, monopoly, antitrust |
| JEL: | L |
| Date: | 2005–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpio:0504017&r=hpe |
| By: | Paul David (Stanford University) |
| Abstract: | The three most extensively cited papers by Zvi Griliches deal with the diffusion of innovations, distributed lags and the sources of the growth of measured total factor productivity, respectively. The close economic connections between these dynamic phenomena remained largely unexplored and were at best only implicit in his published writings until late in his career. Yet, from his later reflective writings, it is clear that Griliches not only recognized the existence of those connections, but regarded them to be critically important in understanding the determinants of the pace of economic growth. The present paper proceeds in that spirit. It examines the relationship between Gliches’ pioneering study of the diffusion of hybrid corn and the subsequent development of economic theories explaining diffusion phenomenon. Rather than offering a comprehensive survey of the literature, its aim is to expose the connections with lagged investment in capital-embodied innovations, and formalize of the micro-to macro links between technological diffusion dynamics and the pace of measured productivity growth. The heterodox, “evolutionary economics” aspects of this approach to explaining technological ‘transitions’ may be thought to be a significant yet under-appreciated part of Griliches’ intellectual legacy. |
| JEL: | J |
| Date: | 2005–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpla:0502002&r=hpe |
| By: | Edgar L. Feige (University of Wisconsin-Madison) |
| Abstract: | This paper examines the contribution of Hernando De Soto’s “The Other Path” in the context of the literature on “underground economies”. Various types of “underground economies” are described and are shown to arise from different causes and to have different consequences. The underground economies of the Western World are compared to those in Socialist countries and those most likely to be found in developing nations. Reference: The World and I, June 1989 |
| Keywords: | Underground, informal, unreported, unrecorded,De Soto, |
| JEL: | O17 H26 |
| Date: | 2005–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpma:0502010&r=hpe |
| By: | Edgar L. Feige (University of Wisconsin-Madison) |
| Abstract: | The “underground economy” literature has generated a plethora of vague terms (shadow, hidden, subterranean) that have served to confuse rather than clarify the substantive issues raised by the finding that significant segments of economic activity may be imperfectly accounted for in the conventional data bases that form the foundation of empirical inquiry in economics. This paper outlines a taxonomic framework that clarifies the distinction between “unrecorded” and “unreported” economic activities and examines the appropriate empirical counterparts of these concepts. All too often, the under-recording of income in National Income and Product Accounts has been confused with the underreporting of income on tax forms. The concept of a “full compliance deficit” is introduced in order to distinguish between structural, cyclical and compliance components of budget deficit measures. Reference: The Unofficial Economy, Alessandrini and Dallago (eds.) Gower, 1987. pp. 83- 106. |
| Keywords: | underground, unreported, unrecorded, non-observed, shadow,deficits, full compliance deficit,IRS,tax gap. |
| JEL: | H26 H62 |
| Date: | 2005–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpma:0502011&r=hpe |
| By: | Elke Muchlinski (Freie Universitaet Berlin) |
| Abstract: | This paper provides textual evidence of Keynes´s position on monetary policy and shaping international monetary relations. One result of my contribution is that the famous dichotomy 'rules versus discretion' is of no relevance to his economic theory, because he used the term 'rules' not in the meaning of a formal brilliantly designed notion. He definitely made a distinction between non-rigidly-fixed-rules and discretion. I give an explanation why his economic theory is not compatible with principles of constructivism, empiricism and ontological realism by referring to a key term of his economic writings, i.e., discretionary decision. |
| Keywords: | Key words: History of Economic Thought since 1925, Methodology, Central Banking, International Monetary Arrangements and Institutions |
| JEL: | B22 B E58 F33 |
| Date: | 2005–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpma:0503018&r=hpe |
| By: | Elke Muchlinski (Freie Universität Berlin) |
| Abstract: | Considering the history of macroeconomics it is surprising that Tinbergens theory of policy is identified with so-called Keynesian economics by Lucas and Lucasians. Keynesian macropolicy is accused of neglecting the role of expectations and the effects of any changes of institutions. Due to textual evidence this paper explains that both the disregard of expectations and the institutional evolutionary process can not be addressed to Keynes's analysis. |
| Keywords: | Keynes on expectations, macroeconomics and modelbuildung contra Lucas and Tinbergen |
| JEL: | B B B E E |
| Date: | 2005–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpma:0503019&r=hpe |
| By: | B.V. GOPINATH (No affiliation) |
| Abstract: | Quantity Theory is a foolproof theory. This Theory is based on Law of Conservation of Wealth. This Theory tests positive with Law of Mass Action of reversible economic (chemical) reactions. Study of utility ( I call utility as all that a human being needs) helps us understand Quantity Theory better. Utility and water have similarities. Water is a form of matter and utility is a form of wealth. Water is universal solvent and so is utility. All other forms of wealth dissolve in utility. Water is in the form of H + OH. Similarly utility exists in the form of Goods and services which are otherwise called as WANTS by economists + money and money related forms of wealth that are called as MEANS by economists. According to Law of Law of Conservation, value of wants = value of means. Any economic entity, be it an individual, a family, a society, a business firm, a state or a nation tries to attain equilibrium between wants and means. Quantity Theory is relevant to all branches of Economics. |
| Keywords: | Law of Conservation of Wealth, Utility, Law of Mass Action of reversible chemical reactions, Economic reactions |
| JEL: | D1 |
| Date: | 2005–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpma:0504003&r=hpe |
| By: | Chiara Oldani (Luiss Guido Carli) |
| Abstract: | A derivative is defined by the BIS (1995) as “a contract whose value depends on the price of underlying assets, but which does not require any investment of principal in those assets. As a contract between two counterparts to exchange payments based on underlying prices or yields, any transfer of ownership of the underlying asset and cash flows becomes unnecessary”. This definition is strictly related to the ability of derivatives of replicating financial instruments2. Derivatives can be divided into 5 types of contracts: Swap, Forward, Future, Option and Repo, the last being the forward contract used by the ECB to manage liquidity in the European inter-bank market. For a further definition of contracts, which should although be known by the reader, see Hull (2002). These 5 types of contracts can be combined with each other in order to create a synthetic asset/liability, which suits any kind of need; this extreme flexibility and freedom widely explain the incredible growth of these instruments on world financial markets. In section 2 I will look at some micro-economic results about derivatives; in section 3 the issue of risk is addressed; in section 4 monetary policy results about derivatives are shown, and in section 5 fiscal policy results are shortly presented. In a brief statistical appendix some relevant data are presented. |
| JEL: | G |
| Date: | 2005–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpma:0504004&r=hpe |
| By: | Eran Binenbaum (University of Adelaide, School of Economics) |
| Abstract: | A core question addressed in this paper is: Can mainstream economic methodology be improved, and if so, how? In the process, it also considers the following questions: Is there much scope for improvement of intellectual property strategy? Is such improvement valuable? Can economics, and in particular the field of industrial organisation, help achieve it? The improvements in economic methodology that are suggested in this paper may be summarized as 'relational economics'. An important aspect of this methodology is an emphasis on inter-organisational relations. |
| Keywords: | Economic methodology, INdustrial organisation, Inter- organisational relations, Intellectual property strategy |
| JEL: | B41 L14 O34 |
| Date: | 2005–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpmh:0502001&r=hpe |
| By: | Francesco Schettino (Department of public economics, University of Rome 'La Sapienza') |
| Abstract: | Questo articolo indaga sulla reale portata dell'analisi di Marx, basata in maniera fondamentale sulla propria teoria del valore e del plusvalore. L'idea innovativa dell'articolo consiste nel mostrare come sia possibile capire realmente l'analisi della teoria del valore di Marx, partendo da Marx stesso, ovvero dall'inizio del suo più rilevante lavoro (Il Capitale), esaminando quindi come sia il lavoro l'unica qualità che è comune a tutte le merci consentendone la confrontabilità e la scambiabilità. Conseguentemente, parlare di Marx e della sua analisi, osservando unicamente il 'famoso' mistificante sistema di equazioni di prezzo a-là Sraffa significa indagare su una forma (il prezzo) prescindendo da conoscerne la sostanza (il valore). |
| Keywords: | Marxism, value, price |
| JEL: | B |
| Date: | 2005–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpmh:0502003&r=hpe |
| By: | William Barnett (University of Kansas); Morgan Rose (Washington University) |
| Abstract: | This paper explores the conceptual links between Joseph Schumpeter’s theory of instability under capitalism and both theoretical and empirical research that has been done over the past fifteen years in nonlinear dynamics. Recent work related to chaos and bifurcation theory is shown to be consistent with Schumpeter’s view that instability is an inherent feature of capitalism, and that there is a positive, though difficult, role for stabilization policy as a result. The strong claim that modern research has proven Schumpeter correct is not made, but rather that existing recent research is not inconsistent with his views. |
| Keywords: | Schumpeter, Austrian Economics, unstable dynamics, nonlinear dynamics |
| JEL: | D5 |
| Date: | 2005–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpmh:0504001&r=hpe |
| By: | Stanley C. W. Salvary |
| Abstract: | This paper addresses two problematic issues arising from the importation of terms into financial accounting: (1) the nature of economic reality; and (2) the role of assumptions. These two issues have stirred a lot of controversy relating to financial accounting measurements and affect attestation reports. This paper attempts to provide conceptual clarity on these two issues. |
| Keywords: | Economic reality; audit opinion; Savings and Loan Associations; aggregative analysis; planning data; simplifying assumptions; going concern; liquidating concern; realization. |
| JEL: | D1 D2 D3 D4 |
| Date: | 2005–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpmi:0502006&r=hpe |
| By: | Ofer H. Azar (Ben-Gurion University of the Negev) |
| Abstract: | The article presents a theory that I denote “Relative Thinking Theory,” which claims that people consider relative differences and not only absolute differences when making various economics decisions, even in those cases where the rational model dictates that people should consider only absolute differences. The article reviews experimental evidence for this behavior, summarizing briefly several experiments I conducted, as well as some earlier related literature. It then discusses how we can think about relative thinking and formalize this behavior. Later, the article addresses several related questions: why do people exhibit relative thinking, whether it is beneficial to do so, and whether experience and education can change relative thinking. Finally, the article explains why firms seem to respond to relative thinking of consumers, and raises additional implications of relative thinking for economics and management. |
| Keywords: | Relative thinking, relative differences, behavioral decision making, behavioral economics, psychological economics, Weber's law, absolute differences, percentages, ratios |
| JEL: | D10 M30 L10 C91 A12 |
| Date: | 2005–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpmi:0504002&r=hpe |
| By: | Antonio Quesada (Universitat Rovira i Virgili, Spain) |
| Abstract: | Two results showing the limitations of the “as if” methodology are proved under relatively mild assumptions. In an interpretation of the results, a competitive market cannot simulate the outcome of a market M in which the single price assumption does not hold. In a second interpretation, the market M resulting from the aggregation of a finite number of competitive markets is not competitive. In both cases there is no ground to sustain the fiction that M operates as if it were competitive. |
| Keywords: | “As if” methodology; Competitive market; Market aggregation; Market simulation; Price aggregation. |
| JEL: | D40 E10 |
| Date: | 2005–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpmi:0504003&r=hpe |
| By: | Marcus Berliant (Washington University in St. Louis) |
| Abstract: | Review of the 'Handbook of Regional and Urban Economics: Volume 4: Cities and Geography' edited by J.V. Henderson and J.-F. Thisse |
| JEL: | R0 |
| Date: | 2005–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:wpa:wuwpur:0503001&r=hpe |