A New Input-Output Table Built from Neoclassical Analysis that Considers Economic Rent

Despite the extended use of the input-output framework, its acceptance among economists is limited due to lack of microfoundations and imposed omission of economic rent. A new input-output table is built from basic neoclassical profit maximization, which explicitly considers economic rent. The new table holds eight differences with conventional open input-output tables which enhances the framework’s theoretical basis, allows for economic rent, and yields new insights into economic structures.JEL Codes: C67, D57

Islamic Economics: An Agenda for Intellectual and Institutional Reform

This article agrees with Reardon (2019), that economics finds itself in a predicament caused by the neoclassical school. The dominance of neoclassical economics and its lack of response to calls for reform has been endemic. Reform must include both the neoclassical analysis as well as the system of market capitalism it strives to defend. This paper briefly discusses both aspects of reform. It introduces the new school of analytical Islamic economics and its agenda to reform both the discipline and the economic system. The paper enumerates several advantages of Islamic economics to the economics discipline itself as well as the economy, in addition to bringing together intellectuals and scholars of economics, both from East and West, in a more communicative and inclusive group. In addition, the article makes some proposals towards opening the doors in-between the different schools of thought for positive as well as enriching intellectual interactions.

Why does mainstream economy not explain the causes of contemporary negative socio-economic phenomena?

This article is a continuation and extension of the lecture ‘Causes and effects of incompleteness and non-inclusion of ownership structures of contemporary capital companies’ delivered at the conference in Wrocław in 2017 and published in the Scientific Notebooks of the University of Economics (No. 493). The aim of the article is to answer the question: why the Neoclassical Theory of Markets (Main Current Economics) does not explain the causes of a number of contemporary socio-economic phenomena, in particular, huge price fluctuations, breakdowns of individual markets and as a consequence of economic crises on a global scale? This required a new, different from the neoclassical view of the series of processes and market phenomena occurring in contemporary economies as well as the verification of the Neoclassical Market Theory paradigm constituting the main core of the Mainstream Economics. These include, in particular: 1) theoretical (classical) and real ‘object (s)’ analysis of market transactions; 2) rejection of one-dimensional, neoclassical analysis of exchange processes (transactions), accepting two or even three-dimensional analysis of the exchange process (transaction); 3) analysis of exchange processes (transactions), the ‘subject’ of which are complete, incomplete or partial (and their bundles) property rights; 4) analysis of exchange processes (transactions) by complete and exclusive and incomplete and non-exclusive decision-makers; 5) analysis of exchange processes (transactions), whose ‘subject’ are partial (and their bundles) property rights in relation to virtual (non-material) ‘goods’. Taking into account that the above verification (acceptance of a different from the neoclassical paradigm of market theory) allows to break out of the circle of elegant and logical neoclassical analysis of theoretical, never and nowhere existing markets (exchange processes), and more importantly, the explanatory reasons for a series of negative, contemporary socio-economic phenomena.

Climate change and the premises for a New Society

The starting point for this article is the excellent article by Professor Marglin on the dangers of climate change. He outlines a broad remedial prescription, a new economics based on ecological concerns and a broadly based cultural revolution to change people’s thinking. We agree with Marglin that the prevailing neoclassical analysis is fundamentally flawed because inter alia it adheres to individuals’ independent (rather than inter-dependent) utility functions. It is argued that ultimately the problem of the ecosystem, and indeed violent threats of mass destruction that we constantly face cannot be solved without the insights that community and spiritual thinking bring us.

Fuzzy Continuity of Almost Linear Operators

In this paper, the author studies relations between fuzzy continuity and boundedness of approximately linear operators in the context of neoclassical analysis. The main result of this paper (Theorem 1) demonstrates that for approximately linear operators, fuzzy continuity is equivalent to boundedness when the continuity defect (or measure of discontinuity) is sufficiently small. The classical result that describes continuity of linear operators becomes a direct corollary of this theorem. Applying Theorem 1, we demonstrate (Theorem 2) that for linear operators in normed vector spaces, fuzzy continuity coincides with continuity when the continuity defect is sufficiently small, i.e., when it is less than one. Results are oriented at applications in physics, theory of information and other fields where operator equations play an important role. Several open problems and directions for future research are considered at the end of the paper.

Monopsony Theory

This papers attempts to show that the neoclassical analysis of monopsony is erroneous. We deal with this issue under two sub-headings: those compatible with mainstream economics, and those that are not. In the first category are: paucity, wrong target, temporariness, limited window, complexity, information and timing (length of run). In the second category are those stemming from an alternative economic perspective, Austrianism: objective expenses vs. subjective costs, reliance on illegitimate interpersonal comparisons of utility, failure of trade to occur, coerced income transfers, difficulties with perfect competition and geometrical/mathematical considerations.