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on History and Philosophy of Economics |
| By: | José M. Menudo (Department of Economics, Universidad Pablo de Olavide); José Mª O’kean (Department of Economics, Universidad Pablo de Olavide) |
| Abstract: | This paper deals with the French economic thought throughout the eighteenth and nineteenth centuries. A series of distinctive concepts were developed to come to a clear understanding of the economic problems which the French authors were interested in. J.A. Schumpeter called these economists 'the French tradition'. The arguments presented in this paper aim at illustrating the process of construction of this framework of theoretical concepts which can be regarded as an unsuccessful alternative to the British classical economics. However, this fruitful view of the economy has left a legacy of important contributions to economic theory.. |
| Keywords: | Classical and Preclassical, Economic Methodology, Entrepreneurship, Production and Organisations. |
| JEL: | B1 B41 M13 D2 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpaper:06.24&r=hpe |
| By: | Franco DONZELLI |
| Abstract: | The notion of solution plays a crucial role in the conceptual system of Léon Walras, the founder of General Equilibrium Theory (GET). In this paper, after introducing the two solution concepts employed by Walras in the development of his version of GET, respectively called the “theoretical†and the “practical†solution, we discuss the problems such peculiar conception gives rise to, as well as the attempts Walras makes to dodge them. In particular, after showing how Walras tries to connect his two solution concepts by means of the well-known tâtonnement construct, we explain why Walras’s attempts turn out to be defective and elucidate the negative effects that this deficiency exerts on his overall theoretical system, as expressed in the various editions of the Eléments d’économie politique pure. Then we examine the stance taken by Vilfredo Pareto, Walras’s immediate successor and co-founder of GET, as regards the issue of the solvability of general equilibrium models. After explaining why Pareto substantially neglects Walras’s tâtonnement construct and, as a consequence, the “practical†solution concept as well, we discuss the dramatic evolution of Pareto’s ideas about the computability of economic equilibrium, over the period ranging from the publication of the Cours d’économie politique to the appearance of the Manuel d’économie politique, showing how his mature positions on this issue, as can be found expressed in the Manuel and later writings, significantly affect some later interpretations of the scope and significance of GET, such as Hayek’s |
| Keywords: | Walras, Pareto, solution, tatonnement, equilibrium existence, equilibrium computability |
| JEL: | B13 B21 B31 B41 C62 C68 D50 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:mil:wpdepa:2006-31&r=hpe |
| By: | Alain Béraud (THEMA, Department of Economics, Cergy-Pontoise University) |
| Abstract: | Les ingénieurs économistes français avaient accueilli avec beaucoup de réticences l’œuvre de Walras. Ils ne pensaient pas que l’emploi des mathématiques puisse constituer une méthode normale même en économie politique pure. Progressivement leurs réticences s’estompèrent quand ils reconnurent le rôle crucial de l’interdépendance dans l’analyse des phénomènes économiques. La théorie de l’équilibre général s’imposa alors comme le cadre nécessaire de référence. Dans cette évolution, la publication en 1928 de L’économique rationnelle marque une étape importante non seulement parce que Divisia propose, dans cet ouvrage, un nouvel exposé de la théorie de l’équilibre général mais parce qu’il met en évidence les difficultés que soulèvent les analyses que faisait Walras des choix intertemporels et de la formation des prix monétaires. C’est en s’appuyant sur ces critiques et sur les analyses de Fisher et de Pareto qu’Allais proposa, dans son Traité d’économie pure, un nouveau modèle d’équilibre général qui prend en compte de façon systématique le caractère temporel des phénomènes économiques. C’est à juste raison que ce modèle fut qualifié de néo-walrasien car c’est bien du modèle que Walras avait élaboré dans les Éléments d’économie politique pure que s’inspire Allais pour construire sa propre théorie de l’équilibre économique. |
| Keywords: | Histoire de la pénsée économique, théorie de l'équilibre général, Walras, Colson, Lenoir, Rueff, Roy, Divisia, Allais |
| JEL: | B13 B16 B21 B23 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2006-15&r=hpe |
| By: | Kalina Koleva (Panthéon-Sorbonne Economie); Jean-Marie Monnier (Panthéon-Sorbonne Economie) |
| Abstract: | After specifying the legal nature of tax law as a coercive power application and as a public authority expression, this article examines the way economic tax theories acknowledge these essential fiscal dimensions. Indeed, tax constraint induces a behaviour modification, so that the legal rules produce important economic implications. We first consider the particular position of the old French public financial economics ; then, we underline some public economics' failures, and especially the optimal taxation theory ones. These flaws relate to the economic, fiscal and institutional specifications of the models. We present, then, the new fiscal economics of law framework of analysis. It pretends to take into account tax law and institutions' complexity. Finally, we draw a first critical assessment and propose a future research program, argued in three main directions. In addition to the fact that thenew fiscal economics of law carries out an analysis based primarily on costs, it under estimates the tax evasion results in terms of equity. The suggested framework ignores the way legal conflicts between the taxpayer and the administration are really resolved. This leads us to analyze the institutions'evolution issue. Thus, a true methodological renewal is needed. |
| Keywords: | Tax law, efficiency costs, economics of law. |
| JEL: | H20 H21 K0 K34 |
| Date: | 2006–09 |
| URL: | http://d.repec.org/n?u=RePEc:mse:wpsorb:r06057&r=hpe |
| By: | José M. Menudo (Department of Economics, Universidad Pablo de Olavide); José Mª O’kean (Department of Economics, Universidad Pablo de Olavide) |
| Abstract: | The entrepreneurial function as just one factor of production is actually being the point of a depth discussion in entrepreneurship research. It could be the cause of some confusion which impeders theoretical developments and it also makes difficult the effectiveness of pro-entrepreneurial programs. The aim of this article is to analyse the origin of this factor of production. For this purpose, we look back to the 18th century in order to analyze Turgot’s works (1727-1781) by means of a new conceptual framework that distinguishes between different productive agents. A series of analytical problems are exposed when the entrepreneurship is linked to a separate economic agent. |
| Keywords: | Entrepreneurship, History of economic thought, Turgot, methodology. |
| JEL: | M13 B1 B11 B41 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpaper:06.25&r=hpe |
| By: | Jawwad Noor (Department of Economics, Boston University) |
| Abstract: | Due to factors such as temptation, choices may not respect normative prefer- ence (the agent.s own, subjective view of what constitutes his welfare). Neverthe- less, the evidence on preference reversals suggests a means of recovering normative preference from choice. A de.nition of normative preference in terms of choices between su¢ ciently delayed alternatives is formulated and studied. Mild condi- tions on behavior are shown to ensure the existence of a normative preference. Two characterizations are provided. It is demonstrated that a notion of welfare may exist inspite of dynamic inconsistency of preferences. An application shows that the evidence on hyperbolic discounting implies that agents.normative discount functions must be exponential. |
| Keywords: | Preference Reversals, Welfare, Temptation, Hyperbolic Discount- ing, Ethics. |
| JEL: | D11 |
| Date: | 2005–10 |
| URL: | http://d.repec.org/n?u=RePEc:bos:wpaper:wp2005-039&r=hpe |
| By: | Bianca Biagi; Dionysia Lambiri; Vicente Royuela |
| Abstract: | Quality of life is increasingly becoming a concept researched empirically and theoretically in the field of economics. In urban economics in particular, this increasing interest stems mainly from the fact that quality of life affects urban competitiveness and urban growth: research shows that when households and businesses decide where to locate, quality of life considerations can play a very important role. The purpose of the present paper is to examine the way economic literature and urban economic literature in particular, have adopted quality of life considerations in the economic thinking. Moreover, it presents the ways various studies have attempted to capture the multidimensional nature of the concept, and quantify it for the purposes of empirical research. Conclusions are drawn on the state of affairs regarding the study of quality of life in economics, as well as the problems of measurement arising mainly from the complex nature of the concept. |
| Keywords: | Urban Economics, Quality of life. |
| JEL: | R00 I31 R12 |
| Date: | 2006 |
| URL: | http://d.repec.org/n?u=RePEc:cns:cnscwp:200610&r=hpe |
| By: | Janis Kapler |
| Abstract: | se’s 1937 paper on “The Nature of the Firm” formed the basis of the transaction-cost and internalization theories of transnational enterprises in the 1970s-1990s. These emphasized the problem of firms transferring intangible assets across national borders. Newer theories of the firm adopt resourcebased Penrosian, knowledge-based, capabilities and evolutionary perspectives, yet most continue to explain the international firm as a function of transaction-cost economizing. It is argued that Coase’s intention was to present a theory of the firm abstracted from its competitive environment. The application of this approach to a theory of the TNC is flawed because it cannot explain the TNC without reference to competitive conditions. This leaves us with incomplete theories of multinational firms in their competitive environments, because they address transactioncost problems and solutions to the exclusion of many other competitive considerations that must influence the transnational step in the firm’s evolution. The newer knowledge-based theories of the firm represent progress because they focus on the institutional details of dynamic firm creation of (investment in) the intangible or knowledge-based competitive assets by which firms transform their environments. For international firms, this has global consequences. Most recently, theory has begun to emphasize the advantages and not just the costs of internationalization. Additionally, the necessity to address the juxtaposition of internalization and externalization by global firms provides a context for creating a dynamic explanation of both. The key is to recognize the process of standardization as a part of the process of innovation at the heart of learningbased theories. This can help to explain the hierarchical division of labor both within and between firms. |
| Keywords: | Transnational Corporation, Theory of the Firm |
| JEL: | F23 |
| URL: | http://d.repec.org/n?u=RePEc:mab:wpaper:6&r=hpe |
| By: | Bernard Billaudot (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - [CNRS : FRE2664] - [Université Pierre Mendès-France - Grenoble II]) |
| Abstract: | On montre dans ce texte pourquoi la tentative récurrente de découpler le développement de la croissance est veine. Ce qui se cache derrière cette tentative est l'impérieuse nécessité de dissocier deux couples, d'une part le couple "développement et croissance d'ordre économique", qui est relatif à cet ordre de socialisation fondé en modernité sur la monnaie et le marché, d'autre part le couple "développement et croissance de nature économique", qui est propre au registre de socialisation ayant trait à l'exploitation de la nature par l'homme, registre qui est présent dans tout genre de société. Cela passe par la construction d'une autre représentation de l'économie que celle offerte par la science économique normale, en reprenant et en poussant jusqu'à son terme la critique de Karl Polanyi concernant le fait qu'elle est fallacieuse. Cette autre représentation permet une clarification des débats actuels. La principale question qui en ressort est la suivante : faut-il une décroissance de l'ordre économique pour assurer, à l'échelle mondiale, un développement de nature économique écologiquement soutenable et socialement équitable ? |
| Keywords: | développement économique ; théorie du développement ; concept ; science économique ; croissance économique ; développement durable |
| Date: | 2006–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:papers:halshs-00105020_v1&r=hpe |
| By: | Edward L. Glaeser |
| Abstract: | Economists are quick to assume opportunistic behavior in almost every walk of life other than our own. Our empirical methods are based on assumptions of human behavior that would not pass muster in any of our models. The solution to this problem is not to expect a mass renunciation of data mining, selective data cleaning or opportunistic methodology selection, but rather to follow Leamer's lead in designing and using techniques that anticipate the behavior of optimizing researchers. In this essay, I make ten points about a more economic approach to empirical methods and suggest paths for methodological progress. |
| JEL: | A11 B4 |
| Date: | 2006–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberte:0329&r=hpe |