A Non-Predictive View

Author(s):  
Gino Cattani ◽  
Mariano Mastrogiorgio

One of the central tenets of evolutionary thinking in economics, strategy, and innovation is that economic systems are continually evolving, out of equilibrium, owing to endogenous factors, such as technology, which is also intrinsically evolutionary. This view contrasts with that of neoclassical economics, which assumes the existence of equilibrium. In this chapter, we review some recent debates that show how the neoclassical notion of equilibrium traces its historical roots to classical physics, such as the first law of thermodynamics in a closed system. In reality, as indicated by these debates, economic systems are open, continually exposed to a growing diversity of technologies and artefacts and are inherently evolving out of equilibrium. A concept that acquires particular importance is that of exaptation because it implies a multitude of functions and uses that are latent in technologies and artefacts and cannot be simply pre-stated, and this is a possible source of disequilibrium.

1991 ◽  
Vol 5 (4) ◽  
pp. 59-76 ◽  
Author(s):  
Peter Murrell

This paper addresses whether neoclassical economics can provide the intellectual underpinning for a theory of reform. I examine whether the neoclassical model satisfies an essential condition to qualify for this role: does it give us a satisfactory explanation for the vast differences in performance between capitalist and socialist economic systems? First, I focus on the theoretical arguments that have traditionally been used to examine the comparative properties of central planning and markets. I show that developments within theory over the last 20 years have substantially changed the tone of these arguments, making their message more equivocal. Next I discuss empirical evidence, but of a particular sort. Much research shows that centrally planned economies perform less well than market economies; but few studies test whether the superiority of market economies appears within empirical models derived using the framework of basic neoclassical economics. Those studies are the relevant ones for the present exercise. The central conclusion is that economists must look outside the standard models of competition, the focus on Pareto-efficient resource allocation, and the welfare theorems to build a theory of reform.


2021 ◽  
pp. 25-33
Author(s):  
Julia Yereshko

Introduction. The issue of understanding the patterns and factors of economic growth is reflected in the work of scientists, politicians, historians and publicists from antiquity to the present. The economic system is transforming, at the same time evolving partly randomly, and quantitative changes often precede qualitative ones. Systems of this type are characterized by the bifucarial nature of development, i.e. a change in the qualitative behaviour of such dynamic nonequilibrium systems with a slight alternative to their parameters, bifurcation points (transition or progress) of which are the economic crises, and the equilibrium state is only a certain moment in their movement and development. This nature of evolution is decisive for the whole set of complex multicomponent nonlinear systems, represented by a multiparameter set of dynamic systems of lower order, which include economic ones. However, this typology automatically means a logical problem of finding patterns of their movement and development, given the difficulty of predicting the reaction of this type of system to the impact and change of their parameters. The aim of the article is to substantiate the optimal innovative model of the economy based on the determination of a key factor of economic development. The methodological basis of the research is dialectical analysis, the method of studying the causality of phenomena, determinism in the study of systems, theoretical and logical generalizations and hypotheses. Results. The characterization of economic systems as complex, multicomponent and chaotic, i.e. those that can be deterministic and predictable only in theory, explains the stochastic nature of economic laws and the logical absence of a "universal" recipe for development, which proves the need to find endogenous factors. Based on the assumption of a unified nature of development and unevenness, it is determined that the core of innovative development in the modern world is the intellectualization of economic systems. The factor of unevenness and development, at the same time, in the modern sense, development innovative that is, is the intellectual capital, which produces an innovative flash, which with the appropriate working mechanism becomes the driving force of development. The study of development theories proves the need to endogenize the "Sollow residual", because the assumption of the exogenous nature of scientific and technological development, and hence economic growth, does not explain the root causes of the uneven development of individual economies, and therefore does not explain the key development factor. Naturally, the general trajectory of global development is set exogenously, at the same time, it begins with an endogenous innovation outbreak, which turns into an innovation flow and forms the technological base adopted by the rest of economic systems. The contradiction of the neoclassical paradigm and institutionalism is purely nominal, because the establishment of rules and directives by institutions can be based on "ratio" and convergence of economic agents – institutions, or their synergy can provide recursive directiveness to the system, the economic system as a whole, that is, and "irrational" rules will be organically calibrated as a result of this interaction, at the same time, the presence of rules will give the chaotic multicomponent system some additional determinism. Thus, a five-fold synergy is proposed as an innovative model of economic development, which takes into account the whole set of interactions between economic agents in their joint development and conflict, determining the optimal trajectory of overall sustainable economic growth.


1969 ◽  
Author(s):  
Leslie W. Dalton ◽  
Wenden W. Henton ◽  
Henry L. Taylor ◽  
James N. Allen
Keyword(s):  

2017 ◽  
Vol 47 (188) ◽  
pp. 453-470 ◽  
Author(s):  
Hans-Peter Büttner

While the majority of the scientific community holds Marxian Value and Price Theory to be internally inconsistent because of the so-called “transformation problem”, these claims can be sufficiently refuted. The key to the solution of the “transformation problem” is quite simple, so this contribution, because it requires the rejection of simultanism and physicalism, which represent the genuine method of neoclassical economics, a method that is completely incompatible with Marxian Critique of Political Economy. Outside of the iron cage of neoclassical equilibrium economics, Marxian ‘Capital’ can be reconstructed without neoclassical “pathologies” and offers us a whole new world of analytical tools for a critical theory of capitalist societies and its dynamics.


2004 ◽  
pp. 36-49 ◽  
Author(s):  
A. Buzgalin ◽  
A. Kolganov

The "marketocentric" economic theory is now dominating in modern science (similar to Ptolemeus geocentric model of the Universe in the Middle Ages). But market economy is only one of different types of economic systems which became the main mode of resources allocation and motivation only in the end of the 19th century. Authors point to the necessity of the analysis of both pre-market and post-market relations. Transition towards the post-industrial neoeconomy requires "Copernical revolution" in economic theory, rejection of marketocentric orientation, which has become now not only less fruitful, but also dogmatically dangerous, leading to the conservation and reproduction of "market fundamentalism".


2008 ◽  
pp. 77-88
Author(s):  
M. Likhachev

The article is devoted to the analysis of methodological problems in using the conception of macroeconomic equilibrium in contemporary economics. The author considers theoretical status and relevance of equilibrium conception and discusses different areas and limits of applicability of the equilibrium theory. Special attention is paid to different epistemological criteria for this theory taking into account both empirical analysis of the real stability of economic systems and the problem of unobservability of equilibrium states.


2019 ◽  
pp. 46-64 ◽  
Author(s):  
Vladimir V. Klimanov ◽  
Sofiya М. Kazakova ◽  
Anna A. Mikhaylova

The article examines the impact of various socio-economic and financial indicators on the resilience of Russian regions. For each region, the integral index of resilience is calculated, and its correlation dependence with the selected indicators is revealed. The study confirms the relationship between fiscal resilience and socio-economic resilience of the regions. The analysis of panel data for 75 regions from 2007 to 2016 shows that there are significant differences in the dynamics of indicators in different periods. In particular, the degree of exposure to the negative effects of the crises of 2008—2009 and 2014—2015 in non-resilient regions is higher than in resilient ones.


2019 ◽  
pp. 127-149
Author(s):  
George B. Kleiner

This paper shows the diversity and significance of relations of duality among different economic systems. The composition of the principles underlying the system economic theory used for the analysis of duality in the economy is investigated. The concept of the economic system is clarified and the equivalence of three basic concepts of the economic system is shown: a) as a space-time volume (“black box”); b) as a complex of elements and connections among them; c) as a tetrad, including object, project, process and environment components. In a new way, the concept of the tetrad is revealed. The actual interpretation of the interrelationships of its components, based on the mechanisms of intersystem circulation of spatial and temporal resources and the transmission of abilities from one economic system to another, is proposed. On the basis of the obtained results, the most essential aspects of duality in the theory of economic systems are considered. It is shown that the interaction of internal content and the nearest external environment of economic systems lies in the nature of the relations of duality. A new approach to modeling the structure and to functioning of the economic system, based on the description of its activities in the form of two interconnected tetrads (the first tetrad reflects the intrasystem production cycle and the second one — the external realization-reproduction cycle) is put forward. It is shown that the concept of duality in a system economy creates prerequisites for adapting the functioning of local economic systems (objects, projects, etc.) in a market, administrative and functional environments and, as a result, harmonizing the economy as a whole.


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