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on History and Philosophy of Economics |
| By: | Guilhem Lecouteux (UCA - Université Côte d'Azur, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur) |
| Abstract: | Behavioural economics has challenged the normative consensus that agents ought to choose following their own preferences. I argue that normative economists implicitly defended a criterion of the sovereignty of the autonomous consumer, and that current debates in normative behavioural economics arise from disagreements about the nature of the threats to autonomy that are highlighted by behavioural economics. I argue that those disagreements result from diverging ontological conceptions of the 'self' in the literature. I distinguish between the unitary, psychodynamic, and socio-historical conceptions of the self, and show how different positive theories about preferences and the nature of the agent may determine normative positions in normative behavioural economics. |
| Keywords: | preference satisfaction,autonomy,welfare,reconciliation problem,socio-historical self |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03418228&r= |
| By: | Pierre Courtois (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Tarik Tazdaït (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Lacan's contribution in applying and promoting game theory in the early 1950s is mostly ignored in the history of game theory. Yet his early analyses of logical reasoning made him one of the first social scientists to consider the importance of the hypothesis of common knowledge. By retracing Lacan's path in his discovery of game theory, we show how much he has been a precursor in applying it. While accommodating a narrative approach, he demonstrated rigour and originality. Soliciting mathematicians open to interdisciplinarity, he introduced as early as 1945 modes of reasoning which corresponds to reasoning based on common knowledge. |
| Keywords: | la Lettre Volée,enigma of the three prisoners,common knowledge,Lacan |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03179414&r= |
| By: | Henri-Louis Vedie |
| Abstract: | En attribuant le Prix Nobel d'économie 2021 à trois représentants de l'économie expérimentale, D. Card, de Princeton, J. Angrist, du MIT et Imbens, de Princeton, le jury a non seulement distingué trois de ses meilleurs représentants, mais a aussi confirmé la montée en puissance de cette discipline, qui constitue à elle seule une révolution au sein de la science économique, remettant en cause les modèles théoriques sur lesquels elle s'était construite. Cette économie expérimentale vise à constituer des données empiriques, à partir d'expériences comportementales, individuelles ou collectives. Données, ensuite, analysées à partir d'outils économétriques, permettant de mettre en valeur des liens de causalité entre un ou des facteurs et leur incidence économique. Ce qui explique que les lauréats sont des économistes du travail, Card et Imbens, ou de l'éducation, Angrist, mais aussi des économètres reconnus. En 2002, D. Kahneman et V. Smith, qui sont parmi les pionniers de cette nouvelle approche méthodologique, ont été distingués par le jury Nobel. En 2011, T. Sargent et C. Sims, en 2015 A. Deaton, en 2017 R.Thaler, en 2019Banerjee, E. Duflo et M. Kremer vont rejoindre les lauréat(e)s du Nobel d'économie. Aussi, la nomination de Card, d’Angrist et d’Imbens n'est en rien une surprise, contribuant cependant à donner un coup d'accélérateur à l'économie expérimentale. |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb35-21&r= |
| By: | Robert Calvert Jump; Engelbert Stockhammer |
| Abstract: | A key characteristic of heterodox theories of the business cycle is their focus on endogenous business cycle mechanisms. This paper provides an overview and comparison of four models in heterodox business cycle theory: multiplier-accelerator models, Goodwin models, Minskyan debt-cycle models, and momentum trader models. A representative model from each theory is formulated as a two-dimensional predator-prey system in continuous time, which allows us to identify the different stabilising and destabilising mechanisms. We argue that the theories are substantially competing, as they posit different mechanisms that explain cycles, but we also argue that these mechanisms are not mutually exclusive. We suggest that heterodox economists work towards a synthesis. |
| Keywords: | Business cycles; Endogenous cycles; Crises |
| JEL: | B41 B50 E32 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2201&r= |
| By: | Guillaume Allègre (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po) |
| Abstract: | Should society feed surfers? The question has arisen in these terms since Van Parijs suggested to Rawls that a basic income would be in line with his theory of justice. Rawls replied that those who surf should find a way to support themselves. Most Western countries have guaranteed minimum incomes which have conditions in terms of social or professional integration efforts, in a logic of reciprocity. The refusal that others live voluntarily at their expense, in a parasitic relationship, is a value widely shared value across countries, religions and belief systems. For Van Parijs, basic income can be justified by the common ownership of exogenous resources (land, raw materials). From a non-perfectionist perspective, respecting everyone's conceptions of what a good life is, the fact that people using one's resources pay income to those who do not use them, maximizes the real freedom of all. It is argued here that this argument uses a specific conception of co-ownership (right equal to the income of the property), but that there is another conception (equal right to the use of the property). This later conception can be seen when co-owners of a tennis court can usually use it at leisure, but not rent the slots to an outside person. The idea of co-ownership of exogenous resources is therefore not a definitive argument for basic income. We conclude by discussing the characteristics of a guaranteed minimum income that would minimize various forms of injustice. |
| Abstract: | La société doit-elle nourrir les surfeurs ? La question se pose dans ces termes depuis que Van Parijs a suggéré à Rawls qu'un revenu universel serait conforme à sa théorie de la justice et que ce dernier lui a répondu que ceux qui font du surf devraient trouver une façon de subvenir à leurs propres besoins. Comme en France, la plupart des pays occidentaux ont mis en place des revenus minimum garantis sous conditions d'efforts d'insertion sociale ou professionnelle, dans une logique de réciprocité. Le refus qu'autrui vive volontairement à ses dépens, dans une relation de parasitage, est une valeur largement partagée à travers les pays et les religions. Pour Van Parijs, le Revenu universel peut être justifié par la propriété commune de ressources exogènes (la terre, les matières premières). Dans une optique non-perfectionniste, respectant les conceptions de chacun de ce qu'est la vie bonne, le fait que les personnes utilisant ses ressources versent un revenu à ceux qui ne les utilise pas, permet de maximiser la liberté réelle de tous. On argue ici que l'auteur utilise une conception spécifique de la copropriété (droit égal aux revenus de la propriété), mais qu'il existe une autre conception (droit égal à l'utilisation de la propriété), de même que les co-propriétaires d'un tennis peuvent en général l'utiliser à loisir, mais pas louer les créneaux à une personne extérieure. L'idée de copropriété des ressources exogènes n'est ainsi pas un argument définitif en faveur du Revenu universel. Nous discutons en conclusion des caractéristiques d'un revenu minimum garanti qui minimiserait différentes formes d'injustice. |
| Keywords: | basic income,minimum income schemes,reciprocity,revenu universel,minimum social,réciprocité |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03474895&r= |
| By: | Mr. Paolo Mauro |
| Abstract: | This note provides an overview of recent studies that have begun to investigate how differing moral perspectives shape attitudes toward tax and spending policies. Recent advances in evolutionary moral psychology and their application to survey-based economic analysis yield promising insights. Understanding the moral underpinnings of various groups’ views may help policymakers design and make the case for measures that can muster broader support. |
| Keywords: | Moral foundations, moral philosophy, public finance, redistribution, public debt, taxation, political economy, surveys |
| Date: | 2021–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/287&r= |
| By: | Stark, Oded; Budzinski, Wiktor |
| Abstract: | We study a parent’s demand for gratitude from his child. We view this demand as an intervening variable between the parent’s earnings and the incidence of child labor. The demand for gratitude arises from the desire of a parent to receive care and support from his child late in life, while the inclination of the child to provide this support during his adulthood is determined by how the child was treated by his parent during childhood. Specifically, we model the child’s gratitude as an inverse function of the intensity of his labor in childhood. We show that when we keep the child’s (imputed) wage constant, the intensity of child labor decreases with the parent’s earnings. However, when we make the child’s (imputed) wage a function of the parent’s earnings, then the outcome can be different. With the help of a numerical example, we show that the pattern of child labor related to the parent’s earnings can be U-shaped. |
| Keywords: | Institutional and Behavioral Economics, Public Economics |
| Date: | 2021–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:316825&r= |
| By: | Jacob Turton; Ali Kabiri; David Tuckett; Robert Elliott Smith; David P. Vinson |
| Abstract: | There is growing interest in the role of sentiment in economic decision-making. However, most research on the subject has focused on positive and negative valence. Conviction Narrative Theory (CNT) places Approach and Avoidance sentiment (that which drives action) at the heart of real-world decision-making, and argues that it better captures emotion in financial markets. This research, bringing together psychology and machine learning, introduces new techniques to differentiate Approach and Avoidance from positive and negative sentiment on a fundamental level of meaning. It does this by comparing word-lists, previously constructed to capture these concepts in text data, across a large range of semantic features. The results demonstrate that Avoidance in particular is well defined as a separate type of emotion, which is evaluative/cognitive and action-orientated in nature. Refining the Avoidance word-list according to these features improves macroeconomic models, suggesting that they capture the essence of Avoidance and that it plays a crucial role in driving real-world economic decision-making. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.02607&r= |
| By: | Khan, Abhimanyu |
| Abstract: | I develop the notion of evolutionary stability of behavioural rules in a game-theoretic setting. Each individual chooses a strategy, possibly taking into account the game's history, and the manner in which he chooses his strategy is encapsulated by a behavioural rule. The payoffs obtained by individuals following a particular behavioural rule determine that rule's fitness. A population is stable if whenever some individuals from an incumbent behavioural rule mutate and follow another behavioural rule, the fitness of each incumbent behavioural rule exceeds that of the mutant behavioural rule. I show that any population comprised of more than one behavioural rule is not stable, and present necessary and sufficient conditions for stability of a population comprised of a single behavioural rule. |
| Keywords: | behavioural rules, evolutionary stability |
| JEL: | C73 |
| Date: | 2021–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111309&r= |
| By: | Yotov, Yoto (Drexel University) |
| Abstract: | On the eve of its 60th anniversary, the gravity model of trade is a `celebrity', due to its intuitive appeal, solid theoretical foundations, and remarkable empirical success. Yet, many economists still view gravity simply as an intuitive but naive reduced-form estimating equation and apply it without guidance from theory, while others are skeptical about its usefulness for counterfactual projections. The objective of this paper is to celebrate the anniversary of gravity by offering a historical overview of its evolution from an a-theoretical application to an estimating computable general equilibrium (E-CGE) model, which can be nested in more complex frameworks. Along the way, I address some misconceptions about the gravity model, summarize the current best practices for gravity estimations, and highlight some properties that have made gravity so successful |
| Keywords: | Structural Gravity; Evolution; Theory; Estimation; General Equilibrium |
| JEL: | F10 F14 F16 |
| Date: | 2022–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ris:drxlwp:2022_001&r= |
| By: | Harvey, Oliver |
| Abstract: | The merits of Britain’s trade policy in the late nineteenth century have been long debated. Williamson and O’Rourke found a positive correlation between tariffs and growth across countries in the period, suggesting that free trade harmed the British economy. By contrast, Crafts and Broadberry disagree with the idea that the late Victorian slowdown in British productivity can be ascribed to weak exports, and instead highlight the benefits of openness to Britain’s services sector. This dissertation will aim to contribute to this debate by examining a little studied example of British soft protectionism. In 1887, Britain sought to protect manufacturers from competition in home and foreign markets by passing the Merchandise Marks Act. This required that a large share of imports had to be marked with an indication of their country of origin. It was hoped the Act would protect the reputation of British products, curtail unfair foreign trade practices, and encourage consumers to buy British products. While the Act was not a tariff, it generated controversies that echo those today over geographical indicators (GIs) and can be seen as an early form of non-tariff barrier. The second part of the dissertation addresses whether the Act affected British trade. I do not find evidence the Act was able to halt the advance of German manufacturing exports to Britain. But there is strong evidence that it damaged Britain’s entrepot trade and enhanced trade between commercial rivals and colonial markets. This supports Broadberry and Craft’s assertion that economic openness benefitted the British economy. |
| JEL: | N73 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:113000&r= |
| By: | Chris D'Souza; Jane Voll |
| Abstract: | Many central banks conduct economic field research involving in-depth interviews with external parties. But very little is known about how this information is used and its importance in the formation of monetary policy. We address this gap in the literature through a thematic analysis of open-ended interviews with senior central bank economic and policy staff who work closely with policy decision-makers. We find that these central bankers consider information from field research programs not just useful but also an essential input for monetary policy making. They use this information in conjunction with quantitative tools primarily to inform their near-term forecasts. The information is considered most valuable at potential turning points in the economy when uncertainty about the pace of economic growth is heightened (in the advent of large shocks to the economy) and when timely official data are not available or are viewed as unreliable. Senior staff also place a high value on maintaining a reliable and credible sample of representative economic agents that can be accessed on an ongoing basis and very quickly when required. |
| Keywords: | Business fluctuations and cycles; Monetary policy; Monetary policy and uncertainty |
| JEL: | C83 E52 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocadp:22-1&r= |