BLAUG VERSUS GAREGNANI ON THE ‘FORMALIST REVOLUTION’ AND THE EVOLUTION OF NEOCLASSICAL CAPITAL THEORY

2014 ◽  
Vol 36 (4) ◽  
pp. 455-478 ◽  
Author(s):  
Fabio Petri
Keyword(s):  
Economic Theory ◽  
Process Tracing ◽  
Single Factor ◽  
Mainstream Economic ◽  
Capital Theory ◽  
Variable Form ◽  
Great Uncertainty ◽  
Capital Endowment ◽  
Walrasian Equilibria

In a series of papers, Mark Blaug has accused modern, mainstream economic theory of sterility because of the abandonment of “competition as a process,” tracing the cause to the Formalist Revolution of the 1950s. The paper agrees with the criticism but disagrees on the cause, which is, rather, to be found in the shift from the treatment of capital as a single factor of variable ‘form’ to a Walrasian specification of the capital endowment as a given vector, a datum incompatible with the role of equilibrium as a center of gravitation of time-consuming adjustments. The shift was due, as shown by Pierangelo Garegnani, to unease in the 1930s with the conception of capital as a single factor, a fact neglected by Blaug but historically evident and a cause of great uncertainty in capital theory in subsequent decades. The conclusion is that, to avoid the sterility of neo-Walrasian equilibria, one cannot return to Alfred Marshall with his inconsistent notion of capital as a single factor, but Blaug himself indicates another possible direction.

Whatever Happened to the Cambridge Capital Theory Controversies? (With comments by L. Pasinetti, F. Fisher, J. Felipe and J. McCombie, R. Greenfield and reply by the authors)

2009 ◽  
pp. 4-27
Author(s):  
A. Cohen ◽  
G. Harcourt
Keyword(s):  
Economic Theory ◽  
Economic Thought ◽  
Point Of View ◽  
Chronological Order ◽  
Capital Theory

The article written by the well-known theorists and historians of economic thought contains a detailed overview of the Cambridge capital controversy, which had raged from the mid-1950-s through the mid-1970-s. The authors track the origins of the controversy and cover arguments of both sides in chronological order. From their point of view, the discussion hasnt been resolved, and its main underlying aspects were ideological beliefs and fundamental methodological controversies on the nature of equilibrium and on the role of time in economic theory. The article is published with comments written by other leading theoreticians.

Capital or people – what is the true purpose of education?

2017 ◽  
Vol 25 (1) ◽  
pp. 4-6 ◽  
Author(s):  
Tanweer Ali
Keyword(s):  
Design Methodology ◽  
Extensive Literature ◽  
Mainstream Economic ◽  
Capital Theory ◽  
Policy Makers ◽  
Content Type ◽  
Proper Role ◽  
Economic Progress ◽  
True Purpose

Purpose The purpose of this study is to present the book Education, Economy and Society, edited by Salim Vally and Enver Motala (UNISA Press, Pretoria, 2014), which highlights the main concepts introduced and discussed. Design/methodology/approach The study primarily summarizes the critique of human capital theory (HCT) which is developed in the book. This is done using different approaches and is comprehensive in scope. The study also introduces some of the alternative visions of education as presented by the contributing authors. The author of the review also draws on other literature which addresses the same fields. Findings HCT dominates the discourse on the role of education in society, but the concept is hard to measure and evidence of its importance is scant. Despite the criticism of this theory, it continues to dominate the mainstream economic theory. Research limitations/implications The main premise merits more systematic study, ideally drawing on more extensive literature, and extending beyond the confines of any one country. As a review, this study aimed to maintain a focus on this one important collection. Social implications HCT tends to promote a view of education as a tool of material economic progress. This excludes a discussion of social justice and de-emphasizes the role of education in advancing individual fulfilment and in strengthening democratic values. A view of useful human activity outside of production within a corporate environment is also ignored. This book covers all of these ideas. Originality/value This study draws attention to an important book which discusses the proper role of education in economic development and critiques policy making in South Africa. The book is broad enough in scope to be of relevance to educators, academics and policy makers in the developing and developed worlds.

scholarly journals Does Culture Matter in Economic Behavior?

2016 ◽  
Vol 5 (1) ◽  
pp. 52 ◽  
Author(s):  
Edward O'Boyle
Keyword(s):  
Economic Theory ◽  
Economic Activity ◽  
Human Person ◽  
Economic Behavior ◽  
Economic Systems ◽  
Mainstream Economic ◽  
One Dimensional ◽  
Mainstream Economics ◽  
The One

In this article we address the following question: does culture play a role in economic behavior? We conclude that culture influences economic behavior in all three areas of economic activity: work, consumption, and leisure. Our proof lies not so much in replicating certain experimental results, but in documenting in real-world circumstances how culture influences economic behavior. Attention to the role of culture in economic affairs acknowledges that humans are more than the one-dimensional, autonomous, individuals, as premised in mainstream economics, whose very existence is temporal, whose role in economic affairs is strictly instrumental, and whose behavior is virtually the same across cultures. We have argued that humans are two-dimensional twice over. First, humans are individual beings and social beings: solitary and communal, self-made and culture-bound, autonomous and dependent, rational and emotional, self-centered and other-centered. Second, humans are both matter and spirit. The duality of the human person, rooted in individuality and sociality, affords an opportunity to unify economic theory wherein individuality is the focus of microeconomics and sociality is the center of macroeconomics. Putting the isolated individual at the very heart of economics closes down that opportunity and assures that mainstream economic theory will remain truncated indefinitely. The makeover of mainstream economics will take place once neo-classical economists accept that the ultimate end of economic systems relates not to maximum personal net advantage but to integral human development.

Lifestyle entrepreneurs in winemaking

2019 ◽  
Vol 31 (3) ◽  
pp. 385-405 ◽  
Author(s):  
Andrea Dominici ◽  
Fabio Boncinelli ◽  
Enrico Marone
Keyword(s):  
Economic Theory ◽  
Family Business ◽  
Design Methodology ◽  
Profit Maximization ◽  
Mainstream Economic ◽  
Content Type ◽  
Explorative Study ◽  
Hands On ◽  
Depth Interviews

Purpose The purpose of this study is to investigate non-pecuniary motivations and benefits of involvement in the wine business. Combining these motives with winery owners’ characteristics, attitudes and implemented strategies, the aim is to identify different winery owners’ styles in small-medium family-run firms. Design/methodology/approach The applied method is a qualitative explorative study involving in-depth interviews with Tuscan winery owners. They have hands-on involvement in the winemaking process, own a family business and supervise all of the production phases, from grape growing to bottling. Findings The study highlights the key role of non-economic motivations for winery owners. Passion, independence and a desire to live close to nature are predominant compared to pecuniary motivations, such as profit maximization. Therefore, the “lifestyle-oriented” style, characterized especially by the achievement of non-pecuniary benefits, represents the prevailing style amongst the interviewed winery owners, in contrast to the “business-oriented” style, which features typical producers described by mainstream economic theory. Originality/value The findings of this study are pivotal because they can facilitate a better understanding of how family-run wineries make decisions related to, e.g. firm size, staff management, product quality, exports and sustainability.

Kornai, Schumpeter, and Economic Theory

2012 ◽  
pp. 145-152 ◽  
Author(s):  
V. Maevsky
Keyword(s):  
Economic Theory ◽  
Economic System ◽  
Evolutionary Theory ◽  
Economic Models ◽  
Macro Level ◽  
Mainstream Economic ◽  
Level Of Analysis

The author claims that J. Kornai in his paper Innovation and Dynamism (Voprosy Ekonomiki. 2012. No 4) ignored the understanding of socialism as a specific type of culture and not just as an economic system. He also shows profound differences between Schumpeters theory and mainstream economic models. Evolutionary theory, he claims, may itself become mainstream if Schumpeters legacy is not interpreted straightforwardly and if evolutionary economists consider not only micro-, but also macro-level of analysis in studying macrogenerations of capital of a different age.

Wilfred Ethier. Modern International Economics. New York: W. W. Norton and Company. 1983. xviii + 588 pp.

1988 ◽  
Vol 27 (1) ◽  
pp. 81-83
Author(s):  
Nadeem A. Burney
Keyword(s):  
International Economic ◽  
New York ◽  
Economic Theory ◽  
International Economics ◽  
International Monetary System ◽  
International Markets ◽  
The Past ◽  
Monetary System ◽  
Recent Developments

Its been long recognized that various economies of the world are interlinked through international trade. The experience of the past several years, however, has demonstrated that this economic interdependence is far greater than was previously realized. In this context, the importance of international economic theory as an area distinct from general economics hardly needs any mentioning. What gives international economic theory this distinction is international markets for some goods and effects of national sovereignty on the character of economic activity. Wilfred Ethier's book, which incorporates recent developments in the field, is an excellent addition to textbooks on international economics for one- or twosemester undergraduate courses. The book mostly covers standard topics. A distinguishing feature of this book is its detailed analysis of the flexible exchange rates and a discussion of the various approaches used for their determination. Within each chapter, the author has extensively used facts, figures and major events to clarify the concepts in the light of the theoretical framework. The book also discusses, in a fair amount of detail, the existing international monetary system and the role of various international organizations.

scholarly journals Retrospectives Whatever Happened to the Cambridge Capital Theory Controversies?

2003 ◽  
Vol 17 (1) ◽  
pp. 199-214 ◽  
Author(s):  
Avi J Cohen ◽  
G. C Harcourt
Keyword(s):  
Business Cycle ◽  
Endogenous Growth ◽  
Path Dependence ◽  
Real Business Cycle ◽  
Capital Theory ◽  
Economic Process ◽  
The 1950S ◽  
Simple Models

We argue that the Cambridge capital theory controversies of the 1950s to 1970s were the latest in a series of still-unresolved controversies over three deep issues: explaining and justifying the return to capital; Joan Robinson's complaint that, due to path dependence, equilibrium is not an outcome of an economic process and therefore an inadequate tool for analyzing accumulation and growth; and the role of ideology and vision in fuelling controversy when results of simple models are not robust. We predict these important and relevant issues, latent in endogenous growth and real business cycle theories, will erupt in future controversy.

Mexico's Pre-Revolutionary Reckoning with Railroads

1985 ◽  
Vol 42 (1) ◽  
pp. 1-28 ◽  
Author(s):  
Robert W. Randall
Keyword(s):  
Economic Growth ◽  
Economic Theory ◽  
Transportation Network ◽  
Underdeveloped Country ◽  
Role Of The State ◽  
Economic Interpretation ◽  
Short Run ◽  
Railway System ◽  
Economic Considerations

Economic considerations all but dominate recent historical writing in this country about the railroads of Mexico. Technical matters of construction and operation, as well as the role of the state in both, are touched upon, but economic interpretation, whether of the development of a railway system or of its impact on the nation, is the watchword if not catchword of most writing. Probably the leading example of the dominant approach is Growth against Development: The Economic Impact of Railroads in Porfirian Mexico (Northern Illinois University Press, 1981), by John H. Coatsworth, in which the author concludes that, while “the short run contribution of railroads to economic growth was large,” their longrun impact helped “to create the underdeveloped country Mexico has become.” Applying economic theory and measuring, Coatsworth in essence proves with numbers a case argued more elegantly in straight prose early in this century: that the application of a modern transportation network to a staple producing economy will do little more than extend and intensify the production system so as to increase the staple output.

A Joyful Economist. Scitovsky's Memoirs

2012 ◽  
pp. 57-73
Author(s):  
Marina Bianchi
Keyword(s):  
Economic Theory ◽  
Original Thinking ◽  
Personal Philosophy

Few economists choose to write memoirs, and of those who do most adopt the "logic of my contributionsŁ approach. Tibor Scitovsky, Hungarian-born theorist who spent most of his career at Stanford and Berkeley, instead left us unpublished recollections, many of his childhood, others bearing on his personal philosophy (and shift therein) - of teaching, of the role of economic theory, of its imperfections. By their nature these Memoirs give us glimpses into his nimble, original thinking, without being weighed down with considerations of priority, answering critics, and so on. The paper tries to capture this spirit, frequently in Scitovsky's own words.

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