scholarly journals Old and New Development Economics: A Reassessment of Objectives

2021 ◽  
Vol 24 (2) ◽  
pp. 254-285
Author(s):  
Victor Espinosa ◽  
Óscar Carreiro

The “new development economics” (also called behavioral development economics) consists of microeconomic experimentation based on behavioral economics and randomized controlled trials. This approach would illuminate the close relationships between preferences, culture, and institutions and point to new political opportunities. This paper describes and analyzes the new development economics’s main components and argues that the new development economics is just like the old development economics in terms of its central assumptions, objectives, and recommendations. Despite the growing recognition that social, cultural, and institutional factors profoundly affect decision-making, old and new development economists generally lean toward the extreme reductionism of the neoclassical paradigm. It is observed that research on the essence of economic development has been neglected or treated inadequately in the school’s literature. It is suggested that the findings of the Austrian theory of dynamic efficiency, based on human action’s creative and entrepreneurial feature, may allow the development economics to overcome its analytical challenges.

2021 ◽  
pp. 283-310
Author(s):  
Victor Espinosa ◽  
William Wang ◽  
Haijiu Zhu Zhu

Israel Kirzner lays the foundations of entrepreneurship as the driving force of the market process by referring to alertness, uncertainty, and plan coordination. His approach, following the footsteps of Mises and Hayek, legitimizes entrepreneurial creativity and profit-making as the heart of the dynamic market process. He argues that an accurate insight into the economic system requires exploring how entrepreneurial dynamics work in society. This statement contrasts with the theories and models that govern modern development economics, such as randomized controlled trials (RCTs), in which the zero-intelligence agents replace the flesh-and-blood entrepreneur. Randomized controlled trials are considered the gold standard in modern development economics to assess treatment intervention efficacy in underdeveloped countries (Rodrik 2009). As a causal inference method, RCTs seek to determine whether a program had the outcome for which it was designed. Experts often utilize purely quantitative and experimental strategies for their guiding insights through trial and error of different interventions. In the ethics domain, experts seek to maximize the cost-benefit of specific interventions subject to a given set of data to rectify the inequalities generated by the market economy in underdeveloped economies. The economist becomes a kind of plumber who designs the creation and distribution of the “social pie,” assigning the respective slices to the specific individuals who participate in the experiments. Consequently, RCTs have justified active government intervention in the market process on behalf of policy advisers.However, Kirzner’s theory of entrepreneurship indicates that modern development economics’s core problem is epistemological and related to using the criterion of static efficiency in applied economics. Although RCTs are considered one of the most rigorous methods to inquire into the effectiveness of development policies, their design lacks interpretative capacity on the essence of economic phenomena. Experts on RCTs do not recognize that economic development is the byproduct of achieving social cooperation and coordination driven by purposeful human action under the division of labor. If the essence of economic phenomena is disregarded, it is impossible to address poverty causes adequately. Accordingly, RCTs are limited to testing cosmetic problems of economic underdevelopment.This article does not seek to offer specific proposals to remedy RCTs’ shortcomings, but it provides a theoretical foundation to guide further theoretical and empirical work. It argues that development economists have overlooked Kirzner’s theory of efficiency, which cannot be omitted without impairing the premise that development theory involves studying the dynamic process of plan coordination. Its relevance lies in the fact that Kirzner’s research can reshape modern development economics, which implies a theoretical advancement in several areas:• Kirzner’s analysis of static efficiency reveals the epistemological and ethical problems of modern development economics.• The framework of Kirzner’s dynamic efficiency clarifies the role of entrepreneurship in understanding how the market works.• Dynamic efficiency recognizes the creative and coordinating potential of entrepreneurship and capital accumulation in economic development.• Kirzner’s economic development theory responds to ethical dilemmas about (in)equality and pure profit within a market economy.• Contemporary research on dynamic efficiency explores new branches, such as the role of psychology, culture, and morality in economic development.Most research on efficiency and underdevelopment is still packaged in mathematical models that reduce the market’s complexity to comparative statics. Fortunately, a growing number of theories have begun to challenge this state of affairs by examining the following: First, psychology’s impact on productivity or the unproductiveness of entrepreneurial profit opportunities. Second, the role of culture in the dynamic process of institutional change and the adaptation of the entrepreneurial performance that ensures or deter economic development. Third, the relationship between personal morality and dynamic efficiency concerns private property and contractual ties. Hence, there are several strands of new literature on dynamic efficiency and development economics. This article focuses on one aspect that concerns both economists and governments in terms of modern thinking and practice: the role of efficiency (static and dynamic) in economic development.


2012 ◽  
Vol 20 (1) ◽  
pp. 183-191 ◽  
Author(s):  
Vanessa de Brito Poveda ◽  
Edson Zangiacomi Martinez ◽  
Cristina Maria Galvão

This study analyzed the evidence available in the literature concerning the effectiveness of different active cutaneous warming systems to prevent intraoperative hypothermia. This is a systematic review with primary studies found in the following databases: CINAHL, EMBASE, Cochrane Register of Controlled Trials and Medline. The sample comprised 23 randomized controlled trials. There is evidence in the literature indicating that the circulating water garment system is the most effective in maintaining patient body temperature. These results can support nurses in the decision-making process concerning the implementation of effective measures to maintain normothermia, though the decision of health services concerning which system to choose should also take into account its cost-benefit status given the cost related to the acquisition of such systems.


2019 ◽  
Vol Volume 13 ◽  
pp. 1153-1174 ◽  
Author(s):  
Nahara Anani Martínez-González ◽  
Andreas Plate ◽  
Stefan Markun ◽  
Oliver Senn ◽  
Thomas Rosemann ◽  
...  

2010 ◽  
Vol 2010 ◽  
pp. 1-9 ◽  
Author(s):  
Maria Cristina Polidori ◽  
Gereon Nelles ◽  
Ludger Pientka

The objective of this paper is to summarize current knowledge on the possible advantages of lifestyle interventions, with particular attention to physical fitness, cognitive activity, leisure and social activity as well as nutrition. There is a large amount of published papers providing partial evidence and asserting the need for immediate, appropriate preventive lifestyle measures against dementia and AD development. Nevertheless, there are currently great difficulties in drafting effective guidelines in this field. This depends mainly upon lack of randomized controlled trials assessing benefits versus risks of particular lifestyle interventions strategies. However, due to the rapid increase of dementia burden, lifestyle factors and their amelioration should be already made part of decision making in light of their health-maintaining effects while awaiting for results of well-designed large prospective cohort studies in dementia.


2018 ◽  
Vol 5 (1) ◽  
pp. 26-38 ◽  
Author(s):  
Ryan D. Enos ◽  
Christopher Celaya

AbstractInter-ethnic residential segregation is correlated with intergroup bias and conflict, poorly functioning states and civil societies, weak economic development, and ethnocentric political behavior. As such, segregation has been a subject of long-standing interest. However, segregation has not been assigned in randomized controlled trials, so the observed correlations may be spurious and the mechanism behind these correlations is poorly understood. In two experiments, we randomly assign segregation in a laboratory and demonstrate that segregation affects perceptions of other people and causes intergroup bias in costly decision-making. Rather than segregation merely inhibiting intergroup contact, we demonstrate that segregation directly affects perception and thus can affect intergroup relations even when holding contact constant.


Author(s):  
Michel Abramowicz ◽  
Ariane Szafarz

Equipoise is defined by Freedman (1987: 141) as a “state of genuine uncertainty on the part of the clinical investigator regarding the comparative therapeutic merits of each arm in a trial.” This principle is grounded in the ethical motivation that any ex-ante preference for a given option would undermine the interests of those who are offered another. Randomized controlled trials (RCTs) in development economics disregard the equipoise requirement by typically disadvantaging the control group. This chapter investigates how the equipoise principle is formalized in the medical literature and discusses whether and how it should be taken into consideration by economists. It argues that equipoise is especially relevant when double (or even single) blindness is excluded and when the control group includes already vulnerable individuals. More generally, this chapter advocates for developing a vibrant ethics conversation on the design and fairness of RCTs in social sciences.


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