Walter Eucken’s Concept of Economic Order and Business Cycle Analysis

ORDO ◽  
2020 ◽  
Vol 71 (1) ◽  
pp. 17-46
Author(s):  
Lachezar Grudev
Keyword(s):  
Business Cycle ◽  
Economic Order ◽  
Economic Crises ◽  
Empirical Observation ◽  
Ideal Types ◽  
Exogenous Shocks ◽  
Theoretical Approaches ◽  
The Subject ◽  
The Business Cycle

Abstract Walter Eucken formulated his concept of economic order as a solution to the tension between theoretical approaches and empirical observation that had constituted the conflict between the Austrian School of Economics and the German Historical School. Previous literature has established the linkage between the German-language business cycle debate of the late 1920 s and Eucken’s concept of economic order. This paper discusses how his concept of economic order can help to understand the severity of economic crises and thus concentrates on the elements constituting the economic order, i. e. its ideal types, with whose help Eucken aimed to derive hypothetical propositions. Based on the writings of his students Leonhard Miksch and Friedrich A. Lutz who underscored the role of equilibrium in business cycle research, this paper suggests that abstract theory of economic crises should employ ideal types as models and thus study how exogenous shocks affect the endogenous economic variables. The subject of inquiry should be oriented to the process of equilibrium reestablishment. Crucial for this paper is that the equilibrium reestablishment depends on institutional factors. This method to explain economic crises represents the link which connects the business cycle debate of the 1920 s and 1930 s to the subsequent emergence of the ordoliberal theory of institutions and orders.

scholarly journals Inequality over the business cycle: the role of distributive shocks

2021 ◽  
pp. 1-30
Author(s):  
Marius Clemens ◽  
Ulrich Eydam ◽  
Maik Heinemann
Keyword(s):  
Income Inequality ◽  
Income Distribution ◽  
Business Cycle ◽  
Parameter Estimates ◽  
Panel Estimation ◽  
Bayesian Techniques ◽  
Elasticity Of Intertemporal Substitution ◽  
Ex Ante ◽  
The Business Cycle

Abstract This paper examines how wealth and income inequality dynamics are related to fluctuations in the functional income distribution over the business cycle. In a panel estimation for OECD countries between 1970 and 2016, although inequality is, on average countercyclical and significantly associated with the capital share, one-third of the countries display a pro- or noncyclical relationship. To analyze the observed pattern, we incorporate distributive shocks into an RBC model, where agents are ex ante heterogeneous with respect to wealth and ability. We find that whether wealth and income inequality behave countercyclically or not depends on the elasticity of intertemporal substitution and the persistence of shocks. We match the model to quarterly US data using Bayesian techniques. The parameter estimates point toward a non-monotonic relationship between productivity and inequality fluctuations. On impact, inequality increases in response to TFP shocks but subsequently declines. Furthermore, TFP shocks explain 17% of inequality fluctuations.

scholarly journals The Instrumentarium for Sustainable Development of an Enterprise in Conditions of Crisis

2021 ◽  
Vol 4 (519) ◽  
pp. 285-293
Author(s):  
Y. S. Pohorelov ◽  
◽  
G. V. Kozachenko ◽  
Keyword(s):  
Sustainable Development ◽  
Business Cycle ◽  
Continuous Process ◽  
Central Place ◽  
General View ◽  
Stage Of Development ◽  
Crisis Scenarios ◽  
The Business Cycle ◽  
Key Resources

Development as a continuous process should be carried out at all stages of the business cycle of an enterprise. Particular attention should be paid to the development at the downturn stages of the business cycle of the enterprise, in particular in the conditions of crisis in its activities. The focus of the article led to the need to disclose the content of the concepts of «crisis», «development», «sustainable development» and «sustainable development of the enterprise in a crisis». At the descending stages of the business cycle of the enterprise, its development should be fully controlled and carefully managed. To ensure control and manageability of the development of the enterprise in a crisis, an appropriate instrumentarium is needed, wherein the central place belongs to the anti-crisis scenarios of sustainable development and its key resources. Anti-crisis scenarios of sustainable development of the enterprise in a crisis are proposed to be developed on the basis of identified and assessed threats to its activities, taking into account the nature of threats, their interconnectedness and interdependence, as well as the stage of development of each of the threats. Because the implementation of threats to the enterprise’s activities can further aggravate its condition: crisis phenomena are transformed into a crisis situation, which, in turn, threatens to develop into a crisis state. In order to develop an anti-crisis scenario for the development of the enterprise in the situation of the probable simultaneous implementation of several threats to its activities, the use of the method of tuples is proposed. A general view of the tuple for the anti-crisis scenario is presented. The role of key resources in ensuring sustainable development of the enterprise in a crisis is disclosed. The problematic aspects of using key resources in ensuring sustainable development of the enterprise in a crisis are displayed.

scholarly journals MODEL OF PSYCHOLOGICAL INFLUENCE IN SOCIAL MEDIA

2021 ◽  
pp. 4-38
Author(s):  
А. Н. Занковский ◽  
В. В. Латынов
Keyword(s):  
Social Networks ◽  
Social Media ◽  
Social Environment ◽  
Theoretical Approaches ◽  
Impact Processes ◽  
Psychological Influence ◽  
The Subject ◽  
The Impact ◽  
Flow Of Information

Статья посвящена изложению предложенной авторами модели психологического воздействия в социальных сетях. Основанием модели послужили теоретические подходы, направленные на понимание особенностей реагирования отдельного человека, столкнувшегося с потоком информации в социальных сетях, а также концепции, ориентированные на анализ роли социальной идентичности человека и его социального окружения в процессах воздействия. Описаны элементы модели: субъект воздействия, объект воздействия, средства, эффекты и контекст воздействия. Охарактеризованы четыре группы факторов эффективности психологического воздействия в социальных сетях: характеристики субъекта воздействия, особенности средств и контекста воздействия, характеристики объекта воздействия. The article is devoted to the presentation of the model of psychological influence on social media proposed by the authors. The model is based on theoretical approaches aimed at understanding the characteristics of the individual's response to the flow of information in social networks, as well as concepts focused on analyzing the role of a person's social identity and social environment in the impact processes. The elements of the model are described: subject of influence, object of influence, means, effects and context of influence. Four groups of factors of the effectiveness of psychological influence in social media are characterized: characteristics of the subject of influence, features of the means of influence and context of influence, characteristics of the object of influence.

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