Econometrics and Economic Theory in the 20th Century

1999 ◽  
Keyword(s):  
Economic Theory ◽  
20Th Century

scholarly journals The Origins of the Income Theory of Money

2015 ◽  
Vol 14 (4) ◽  
pp. 373-392
Author(s):  
Josef Menšík
Keyword(s):  
Economic Theory ◽  
Political Economy ◽  
General Equilibrium ◽  
20Th Century ◽  
19Th Century ◽  
John Stuart Mill ◽  
Monetary Theory ◽  
Main Stream ◽  
Quantitative Modelling ◽  
The 19Th Century

Abstract The income theory of money was conceived in the 19th century, and in the first half of the 20th century it formed the backbone of all the main monetary approaches of the time. Yet, since it did so mostly implicitly rather than explicitly, and since the later developments moved economic theory in a different direction, the income theory of money is hardly remembered at present. While mainly accounting for the origins of the approach, I am also offering a brief comparison with the present mainstream economics and I shortly address the question of the possible future of the theory too. The income theory of money explains how nominal prices are formed by interaction of nominal expenditures streams with real streams of goods sold. While various ideas leading to this theory were expressed already by John Law, Richard Cantillon, and Jean-Baptiste Say, it is perhaps only Thomas Tooke whom we might want to call the originator of the theory. Within the Classical School of Political Economy, Tooke's ideas were further elaborated by John Stuart Mill. The theory reached a momentous formulation in the works of Knut Wicksell, in many respects a similar exposition was delivered also by Friedrich Wieser. The recognition of the theory was impaired by a change of the main-stream paradigm as well as by a surge in emphasis laid on the quantitative modelling in economics. Yet, there are certain fundamental questions of the monetary theory which the general equilibrium style models cannot cope with, while the income theory of money can, at least to a certain degree. This might give the theory some hope for the future.

On some antecedents of behavioural economics

2021 ◽  
pp. 095269512110009
Author(s):  
Kristian Bondo Hansen ◽  
Thomas Presskorn-Thygesen
Keyword(s):  
Economic Theory ◽  
20Th Century ◽  
Historical Analysis ◽  
Behavioural Economics ◽  
Economic Literature ◽  
Economic Theories ◽  
History Of ◽  
Economic Thinking

Since its inception in the late 1970s, behavioural economics has gone from being an outlier to a widely recognized yet still contested subset of the economic sciences. One of the basic arguments in behavioural economics is that a more realistic psychology ought to inform economic theories. While the history of behavioural economics is often portrayed and articulated as spanning no more than a few decades, the practice of utilizing ideas from psychology to rethink theories of economics is over a century old. In the first three decades of the 20th century, several mostly American economists made efforts to refine fundamental economic assumptions by introducing ideas from psychology into economic thinking. In an echo of contemporary discussions in behavioural economics, the ambition of these psychology-keen economists was to strengthen the empirical accuracy of the fundamental assumptions of economic theory. In this article, we trace, examine, and discuss arguments for and against complementing economic theorizing with insights from psychology, as found in economic literature published between 1900 and 1930. The historical analysis sheds light on issues and challenges associated with the endeavour to improve one discipline’s theories by introducing ideas from another, and we argue that these are issues and challenges that behavioural economists continue to face today.

scholarly journals A new understanding of the history of limited liability: an invitation for theoretical reframing

2020 ◽  
Vol 16 (5) ◽  
pp. 643-664 ◽  
Author(s):  
Ron Harris
Keyword(s):  
Economic Theory ◽  
20Th Century ◽  
Historical Development ◽  
Limited Liability ◽  
Theoretical Research ◽  
Business Corporation ◽  
Legal Personality ◽  
History Of ◽  
Research Questions ◽  
Modern Sense

AbstractI investigate the historical development of limited liability – widely considered a cornerstone of the business corporation – and challenge the commonplace linear narratives about how limited liability evolved. I dismiss the claim that limited liability was invented with the very first joint-stock business corporations around 1600. I also reject the assertion that it became dominant with the limited liability acts of the mid-19th century. My argument is that it was only around 1800 that limited liability became a separate corporate attribute, distinct from legal personality, and that limited liability in the modern sense became a uniform attribute of all corporations only in the 20th century. Since corporations, stock markets and the corporate economy enjoyed a long and prosperous history well before limited liability in its modern sense became established and dominant, the economic theory of limited liability needs to be revisited. The paper opens a new set of conceptual, empirical and theoretical research questions, and points to new possibilities in terms of viable future liability regimes.

Ludwig von Mises "Human Action" as a Textbook in Economics

2010 ◽  
pp. 62-82 ◽  
Author(s):  
J. Huerta de Soto
Keyword(s):  
Economic Theory ◽  
20Th Century ◽  
Human Action ◽  
Ludwig Von Mises ◽  
Teaching Economics ◽  
Magnum Opus ◽  
Development Of Economic Theory ◽  
Main Representative ◽  
Von Mises ◽  
The Impact

The author indicates shortcomings of the modern economics textbooks and surveys the contribution to economics made by Ludwig von Mises, the main representative of the Austrian school in the second half of the 20th century, and the impact of his magnum opus "Human Action" on the development of economic theory. The author summarizes the methodology of teaching economics (on the basis of "Human Action") he used in the Complutense University of Madrid.

scholarly journals Foundations of Contemporary Economics: Harold Hotelling on Location and Exhaustible Resources

2021 ◽  
Vol 27 (3) ◽  
pp. 143-152
Keyword(s):  
Economic Theory ◽  
20Th Century ◽  
Product Differentiation ◽  
Optimal Location ◽  
Exhaustible Resources ◽  
Microeconomic Theory ◽  
Spatial Economics ◽  
Mathematical Economics ◽  
Business Analysis ◽  
The 1950S

Harold Hotelling is an influential statistician working in the field of economic theory at the beginning of the 20th century. His contributions to economics are trailblazing and open new topics for economic and business analysis. His best-known work is his solution to the problem of exhaustible resources. He also triggered the exploration of spatial economics and the analysis of product differentiation through his solution of the optimal location of producers in a duopoly. Less known, but important, are his contributions to the development of modern neoclassical microeconomic theory. Hotelling is also one of the scientists who initiated the turn towards mathematical economics in the 1950s. In this paper we provide an introduction of his groundbreaking work on economic theory.

Back to the Present Bias

2021 ◽  
pp. 116-127
Author(s):  
Orhan Erdem ◽  
Melis Dik
Keyword(s):  
Decision Making ◽  
Economic Theory ◽  
20Th Century ◽  
Crucial Element ◽  
Financial Decision Making ◽  
Present Bias ◽  
Decision Making Processes ◽  
Financial Decision ◽  
In The Beginning

Much of the economic theory in the beginning of the 20th century assumes that people's tastes and preferences are invariant throughout time. However, recent studies show that this assumption cannot be supported by experiments. Humans are more inclined to present outcomes than future ones. Economists name this as present bias, which can formally be defined as the undervaluing of a larger, later reward and the preference for a smaller, sooner reward. Present bias has been considered a crucial element of economic/financial decision-making processes and it is shown to be related to various suboptimal outcomes. Here, the chapter per the authors summarizes several definitions of present bias, reviews the literature on present bias and behavioral based interventions. The chapter points out the importance and the relevance of some recent studies that stand out, as well as their implications for our day-to-day lives and how we can combat present bias.

scholarly journals Schumpeter’s Entrepreneur and The German Historical School. A Critical Analysis

2021 ◽  
pp. 91-120
Author(s):  
Marius Kleinheyer
Keyword(s):  
Economic Theory ◽  
Key Words ◽  
20Th Century ◽  
Critical Analysis ◽  
Jel Classification ◽  
Economic Thought ◽  
Conceptual Basis ◽  
Historical School ◽  
The Core ◽  
Palabras Clave

This paper provides a fundamental critic of the Schumpeterian concept of entrepreneurship. Being one of the most influential economist of the 20th century, Schumpeter inspired many different lines of economic thought. The nexus of his theory, the concept of entrepreneurship, can be seen as his most important contribution to economic theory. A deeper understanding of the complex work of Schumpeter requires to identify the intellectual roots and the core of his thinking. This paper claims that the core in his thinking can be found in the conceptual basis of the German Historical School. It is reasoned that the Schumpeterian entrepreneur is understandable and inherently consistent, if he is interpreted as a representative of the thought system of German historicism. Key words: German Historical School - Schumpeter - Entrepreneurship. JEL Classification: A12, A14, B15, B25, B31, B53. Resumen: Este artículo critica de forma fundamental el concepto de función empresarial de Schumpeter e identifica que el origen conceptual de su teoría sobre el empresario se encuentra en la Escuela Histórica Alemana. Palabras clave: Escuela Histórica Alemana - Schumpeter - función empresarial. Clasificación JEL: A12, A14, B15, B25, B31, B53.

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