scholarly journals Austrian and Neoclassical Economics: Any Gains From Trade?

1997 ◽  
Vol 11 (4) ◽  
pp. 139-152 ◽  
Author(s):  
Sherwin Rosen
Keyword(s):  
Austrian Economic ◽  
Evolutionary Process ◽  
Economic Thought ◽  
Neoclassical Economics ◽  
Economic Activities ◽  
Incomplete Knowledge ◽  
Modern Economic ◽  
Economic Thinking ◽  
Survival Of The Fittest

The systems aspects of Austrian economic thought pertaining to the process of competition deserve a prominent place in modern economic thinking. The paper develops the differences between the Austrian view of competition as an evolutionary process, and the neoclassical emphasis on determining market equilibrium under known or given conditions. These bear importantly on the fundamental way we think about decentralization of economic activities among highly specialized agents with incomplete knowledge and information. The role of competition as a selection device that often encourages survival of the fittest and solves some types of agency problems is well worth thinking about.

An early mainstream economist from Hungary: István Varga (1897–1962)

2003 ◽  
Vol 53 (2) ◽  
pp. 195-213 ◽  
Author(s):  
K. Majoros
Keyword(s):  
Austrian Economic ◽  
National Income ◽  
Anglo Saxon ◽  
Turbulent Times ◽  
The Usa ◽  
New Ideas ◽  
Modern Economic ◽  
The Uk ◽  
Economic Thinking ◽  
Lasting Influence

The study introduces a Hungarian economic thinker, István Varga*, whose valuable activity has remained unexplored up to now. He became an economic thinker during the 1920s, in a country that had not long before become independent of Austria. The role played by Austria in the modern economic thinking of that time was a form of competition with the thought adhered to by the UK and the USA. Hungarian economists mainly interpreted and commented on German and Austrian theories, reasons for this being that, for example, the majority of Hungarian economists had studied at German and Austrian universities, while at Hungarian universities principally German and Austrian economic theories were taught. István Varga was familiar not only with contemporary German economics but with the new ideas of Anglo-Saxon economics as well — and he introduced these ideas into Hungarian economic thinking. He lived and worked in turbulent times, and historians have only been able to appreciate his activity in a limited manner. The work of this excellent economist has all but been forgotten, although he was of international stature. After a brief summary of Varga’s profile the study will demonstrate the lasting influence he has had in four areas — namely, business cycle research and national income estimations, the 1946 Hungarian stabilisation program, corporate profit, and consumption economics — and will go on to summarise his most important achievements.

Digital Economy and Knowledge Economics

2012 ◽  
pp. 1-14
Author(s):  
Bhekuzulu Khumalo
Keyword(s):  
Competitive Advantage ◽  
Comparative Advantage ◽  
Wave Theory ◽  
Paper Briefly ◽  
Michael Porter ◽  
True Meaning ◽  
Modern Economic ◽  
Economic Thinking ◽  
Over Time

The digitization of information has been one of the greatest stories of the last two decades. This paper seeks to explain the meaning of this process and how it affects already established models concerning trade and knowledge economics. This paper is based on the simple premise that knowledge is the most important resource, without which nothing can be done. The paper starts by looking at the competitive advantage theory that was largely promoted by Michael Porter whose works have greatly influenced the first part of this paper. The paper then discusses the ever more important role of knowledge due to competitive advantage theory and the digitalization of information. Finally the implications and discrediting the comparative advantage theory, this theory has no place in modern economic thinking. As we have more tools in our disposal, we must investigate the importance of wave theory as well as the true meaning of competition. It also looks into the greater role collaboration will play in the future. The paper briefly discusses the effects that the digitization of information will have over time.

On the economic consequences of automation and robotics

2019 ◽  
Vol 36 (2) ◽  
pp. 134-153
Author(s):  
Orlando Gomes ◽  
Sónia Pereira
Keyword(s):  
Economic Thought ◽  
Economic Consequences ◽  
Content Type ◽  
Current Wave ◽  
Macroeconomic Impact ◽  
Economic Reality ◽  
And Performance ◽  
Economic Thinking ◽  
New Phenomena

Purpose The academic literature is currently placing significant attention on the study of the socio-economic consequences of the observable fast automation of all sectors of economic activity. The purpose of this paper is to systematize meaningful ideas on the economic impact of the rise of the robots. Design/methodology/approach With the goal of evaluating the channels through which the current wave of fast technological change affects the organization and performance of the economy and the behavior of agents, the paper is structured into two parts. The first part assesses the state of knowledge regarding the potential revolutionary role of robot use in production. The second part designs a model aimed at exposing the interplay between the most prominent features associated with the new economic reality. Findings The current wave of innovation has implications that escape conventional economic thinking. The evaluation and prediction of what the new phenomena brings is fundamental to design policies that prevent income inequality to widen and growth to slow down. Research limitations/implications The full macroeconomic impact of the fast, pervasive and irreversible automation of production is far from being completely assimilated. At this level, no benchmark model should be interpreted as a definitive framework of analysis, and economic thought should evolve alongside with empirically observed evidence. Originality/value We are facing an automation convulsion that replaces humans by machines at an unprecedented fast rate. This paper systematizes ideas about this process and offers a novel conceptual model to better understand what really is at stake.

From Freakonomics to Political Economy

2012 ◽  
Vol 20 (3) ◽  
pp. 81-96 ◽  
Author(s):  
Ben Fine ◽  
Dimitris Milonakis
Keyword(s):  
Political Economy ◽  
Intellectual History ◽  
Second World War ◽  
Economic Thought ◽  
Neoclassical Economics ◽  
Economic Science ◽  
The Social ◽  
History Of ◽  
Second World

AbstractIn this response to the symposium on our two books we try to deal as fully as possible in the brief space available with most of the major issues raised by our distinguished commentators. Although at least three of them are in agreement with the main thrust of the arguments put forward in our books, they all raise important issues relating to methodology, the history of economic thought (including omissions), and a number of more specific issues. Our answer is based on the restatement of the chief purpose of our two books, describing the intellectual history of the evolution of economic science emphasising the role of the excision of the social and the historical from economic theorising in the transition from (classical) political economy to (neoclassical) economics, only for the two to be reunited through the vulgar form of economics imperialism following the monolithic dominance of neoclassical economics at the expense of pluralism after the Second World War. The importance of political economy for the future of economic science is vigorously argued for.

scholarly journals Views of Ivan Vernadsky on the role of foreign trade policy in economic development

2021 ◽  
Vol 2021 (54) ◽  
pp. 182-198
Author(s):  
Tetiana Bodnarchuk ◽  
◽  
Keyword(s):  
Economic Policy ◽  
Economic Development ◽  
Foreign Trade ◽  
Trade Policy ◽  
Free Trade ◽  
Economic Transformation ◽  
Economic Thought ◽  
Foreign Trade Policy ◽  
Modern Economic

Nowadays, the process of making effective economic decisions requires reference to the history of Ukrainian economic thought. The study of intellectual heritage and innovative ideas of prominent Ukrainian economists, among whom Ivan Vernadsky occupies an important place, will enrich the understanding of the mechanisms and ways of modern economic transformation. The purpose of the article is to analyze and generalize Ivan Vernadsky’s conceptual views on the role of foreign trade policy in economic development. The theoretical basis of this study is conceptual approaches to understanding the nature of foreign trade policy, in particular, protectionism and free trade. Systematic, comparative-historical, institutional-evolutionary, and historical-genetic analyses were used as the research methodology. The author considers Ivan Vernadsky’s conceptual approach to foreign trade as a basis for providing the country's economic leadership in the international area. The economist’s ideas on the advantages of liberal foreign trade policy, free trade, and its mutual benefits for countries are revealed. Ivan Vernadsky was a staunch opponent of restrictive foreign trade policy, which creates obstacles to the country's competitive advantages and economic progress. Attention was paid to Ivan Vernadsky's criticism of customs protectionism. According to the scientist's point of view, protectionism leads to monopolization, price rises, technical and technological backwardness of production, destabilization of foreign trade relations, etc. At the same time, one of the scientist’s merits is the formation of an innovative approach to the interpretation of protectionism as a general economic doctrine and a realistic economic policy. Ivan Vernadsky’s vision of the basics of efficient management is generalized. He creates an original theory of economic development, which can be used for selection of effective mechanisms of modern economic policy.

ECONOMIC CONSCIOUSNESS AS A MECHANISM FOR THE DEVELOPMENT OF ENTREPRENEURSHIP

2021 ◽  
Vol 5 (12) ◽  
pp. 4-9
Author(s):  
Nadezhda Yu. Romanenko ◽  
Keyword(s):  
High Efficiency ◽  
Economic Thought ◽  
Entrepreneurial Activity ◽  
Dark Side ◽  
Professional Activity ◽  
Active Behavior ◽  
Spiritual Foundations ◽  
Modern Economic ◽  
Economic Consciousness ◽  
Economic Thinking

In modern realities, physical and mental activity come to the fore, allowing the entrepreneur to maximize the use of available resources, both his own and those presented by the environment. Only in the presence of these psychological characteristics, the leader is able to manifest an ontological essence that allows him to achieve high efficiency of the subordinate team. The article substantiates the need to understand that economic consciousness is not a substance di-vorced from the world and everything earthly. On the contrary, the principles of clarity, comprehensibility, and objectivity should be laid at the basis of economic thought in any of its manifestations. Professionalism in entrepreneurial activity must be based on universal standards. No one has canceled the originality and creativity of thinking, and it is they who become the basis of modern economic thinking. But completely ignoring the spiritual foundations, traditions or opposing their ac-tivities to them is fraught with transition (as Darth Vader said) “on the dark side of economic consciousness”. Separately, the author highlights such a concept as the ethics of an entrepreneur, determined by the norms and standards of a cultural society. The development of economic thinking of any person is impossible without practice. One theory or even simulators, simulators can not do. Consciousness and thinking are formed only through active behavior. By expanding the range of interests in professional activity, a person is forced to learn new things, be-comes richer not only in educational or economic terms, but also morally and socially. Through active actions, there is the development of intelligence, the formation of experience and wisdom, the knowledge of the laws of society and being.

scholarly journals Multidisciplinarity in economics education and how it can shape economic thinking in the future

2018 ◽  
Vol 12 (1) ◽  
pp. 263-275
Author(s):  
Adrian – Ioan Damoc
Keyword(s):  
Business Education ◽  
Global Economy ◽  
Multidisciplinary Approach ◽  
Global Financial Crisis ◽  
Economic Thought ◽  
Neoclassical Economics ◽  
New Paradigm ◽  
Track Record ◽  
Education Today ◽  
Economic Thinking

Abstract During the period known as the economic and global financial crisis, economic forecasting came under heavy criticism for its inability to predict the crisis, to the point where said crisis was deemed not just a crisis of the global economy, but of economic thinking as well, in particular mainstream, neoclassical economics. The critique of economics has focused primarily on the following aspects: its unrealistic assumptions regarding markets and human behaviours; its poor track record in predicting phenomena such as the crisis itself; its over-reliance on models that bear little resemblance to real world conditions, and also that it has a very narrow focus, reluctant to integrate useful inputs from other fields, which is perceived as leading to stagnation and hindering progress in the field. Following the crisis, several academic debates occurred within the field of economics, with several heterodox schools of economic thought receiving renewed attention, while universities have begun to expand the range of disciplines included in their business programmes, gravitating towards a multidisciplinary approach. The present paper aims to examine the concept of multidisciplinarity with a focus on its role in business education today and to assess the extent to which its spread and prevalence can usher in a new paradigm in economic thinking.

A Reflection on Postwar Neoclassical Economics: The Shift from General Equilibrium Theory to the New Microeconomic Theories

Modern China ◽  
2021 ◽  
Vol 48 (1) ◽  
pp. 29-52
Author(s):  
Yuan Gao
Keyword(s):  
General Equilibrium ◽  
Economic Thought ◽  
Equilibrium Theory ◽  
Neoclassical Economics ◽  
General Equilibrium Theory ◽  
Dominant Position ◽  
Economic Practices ◽  
Political Economic ◽  
Small Models

The theoretical focus of neoclassical economics experienced a significant change in the 1970s–1980s. General equilibrium theory lost its dominant position in theoretical economic studies, with its role of setting the research agenda taken over by what this article calls the “new microeconomic theories,” principally decision theory, game theory, and mechanism design. Mainstream economists, post-Keynesians, and historians of economic thought each give a different explanation of the hows and whys of that change, but all miss some critical methodological implications. That change, as this article discusses, shows that neoclassical economics has turned from “grand theory” toward “small models” with empirically delimited utility and that the ideology of marketism lacks a valid scientific foundation. This interpretation can help illuminate the deeper dynamics of the postwar development of neoclassical economics and provide insights for a new political economy that can come to grips with political-economic practices that cannot be fully grasped by the neoclassical tradition.

Digital Economy and Knowledge Economics

2010 ◽  
Vol 1 (1) ◽  
pp. 19-36
Author(s):  
Bhekuzulu Khumalo
Keyword(s):  
Competitive Advantage ◽  
Comparative Advantage ◽  
Wave Theory ◽  
Important Resource ◽  
Michael Porter ◽  
True Meaning ◽  
Modern Economic ◽  
Economic Thinking ◽  
Over Time

The digitization of information has been one of the greatest stories of the last two decades. This article seeks to explain the meaning of this process and how it affects already established models concerning trade and knowledge economics. This article is based on the simple premise that knowledge is the most important resource, without which nothing can be done. The article starts by looking at the competitive advantage theory that was largely promoted by Michael Porter whose works have greatly influenced the first part of this article. The article then discusses the ever more important role of knowledge due to competitive advantage theory and the digitalization of information. Finally the implications and discrediting the comparative advantage theory, this theory has no place in modern economic thinking. As we have more tools in our disposal, we must investigate the importance of wave theory as well as the true meaning of competition. It also looks into the greater role collaboration will play in the future. The article briefly discusses the effects that the digitization of information will have over time.

The Role of Viticulture and Enology in the Development of Economic Thought: How Wine Contributed to Modern Economic Theory

2012 ◽  
Vol 7 (2) ◽  
pp. 213-225
Author(s):  
Stephen Chaikind
Keyword(s):  
Karl Marx ◽  
Adam Smith ◽  
John Stuart Mill ◽  
Jel Classification ◽  
Economic Thought ◽  
History Of Economic Thought ◽  
History Of ◽  
Modern Economic ◽  
David Ricardo

AbstractThis paper introduces the role wine has played as a central factor in the history of economic thought. The focus is on an examination of documented sources that connect wine and its viticulture and enology with the evolution of economic concepts. Works by Adam Smith, David Ricardo, Karl Marx, John Stuart Mill, Léon Walras, Alfred Marshall, and others are examined, as well as wine economic ideas postulated by Greek and Roman thinkers. (JEL Classification: A1, B1, B3, N00)

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