This paper describes the way in which a certain representation of basic scientific knowledge can be coupled with traditional microeconomic analysis to provide an analysis of rational research planning or agenda setting in basic science. Research planning is conceived as a resource allocation decision in which resources are being allocated to activities directed towards the solution of basic scientific problems. A structuralist representation of scientific knowledge is employed to provide a relatively precise characterization of a basic scientific problem.

Health economists claim to use market economics combined with the microeconomic concepts of opportunity cost and the margin to advise on priority setting. However, they are advising on setting priorities through a macro-economic analysis using the costs of the supplier, thus prioritising the producer and not the consumer as the dynamic of economic activity. For health economists any contention within priority setting is due to lack of data not their confusion over fundamental concepts.

Eco-communities are a potential model for the socio-technological transition to a post-carbon society. The debate over their economic sustainability has, however, been limited. This article aims to enhance the discussion by offering a conceptualization of the economic micro-system created in eco-communities. It uses the economic terms households and firms to discuss two ways in which the community economy is positioned and then goes on to explore the principles behind the non-market (non-monetary) activities of households and the not-only-for-profit activities of (...) firms as the basis of the eco-community economy. It concludes by pointing out that both can operate in parallel, with eco-communities producing non-market capital that can be used to develop not-only-for-profit activities which support the economic sustainability of the projects. (shrink)

Health economists claim to use market economics combined with the microeconomic concepts of opportunity cost and the margin to advise on priority setting. However, they are advising on setting priorities through a macro-economic analysis using the costs of the supplier, thus prioritising the producer and not the consumer as the dynamic of economic activity. For health economists any contention within priority setting is due to lack of data not their confusion over fundamental concepts.

The aim of The Legal Foundations of Micro-Institutional Performance is to introduce the reader to a different way of thinking about economics that will allow them to both understand and apply legal concepts to economic analysis. To this end, it adopts and further develops Wesley Hohfeld's legal framework of jural (legal) relations as a tool of analysis. This analytical tool, as built into the Legal-Economic Performance framework, provides specific direction in identifying and describing interdependence among economic agents (including (...) rights, duties, liberties and exposure to various acts). The framework adopted and developed in this book relies on the concept of interdependence--that all economic agents are tied together in a legal system given the inherent interdependent nature of transactions in a complex modern global economy. The authors start by developing this framework and then apply it to a variety of settings and empirical examples. Using this new method, economists will be able to reshape their analysis to account for how legal systems and specific legal rules impact economic performance and outcomes. This approach will be of great interest to graduate and advanced undergraduate social science scholars, faculty interested in the intersections of law and economics and the application of legal concepts to impact analysis, and practitioners in the fields of policy, law and economics. (shrink)

In this paper, it will be argued that each time a procedure in a representational system is functioning adequately and automatically, the child steps up to a metaprocedural level and considers the procedure as a unit in its own right. Data will be drawn from microdevelopment in children's creation of external memory devices (i.e., changes in representation of a spatial task during a one hour's session) as well as from macrodevelopment in language acquisition (i.e., changes occurring over age in a (...) study of nominal determiners, pronouns and gender markers). These two aspects of development of representational systems are examined with respect to the spontaneous passage from concrete reference to abstract systems, from idiosyncratic to conventional notations, from redundant to economic marking, from unifunctional to plurifunctional meaningful units. These micro‐ and manodevelopmental changes take place in a spontaneous fashion despite the fact that the child's earlier system is adequate for successfully conveying the information required. A discussion will be made of the way in which children tend to indicate externally, by unifunctional markers, information which was implicit in their earlier use of an adult‐like system. They appear to be striving for the delicate balance between encoding and decoding efforts, ultimately leading to a felicitous representational system. Metaprocedural behavior is hypothesized to act as a control mechanism in the striving for this delicate balance of information content and information processing effort. It also appears to act as a control mechanism for the interprocedural organizotion of what was previously a plethora of juxtaposed, unconnected procedures yielding superficially analogous behavior. The stepping‐up to a metaprocedural level seems to occur each time the child has a handle on his currently functioning, goal‐oriented system. This enables the child to treat the system, or procedures which are part thereof, as units functioning in their own right. Thus there appears to be a deep‐rooted psychological tendency for a representational tool which functions well procedurally to become subsequently a problem‐space per se. (shrink)

In this paper, it will be argued that each time a procedure in a representational system is functioning adequately and automatically, the child steps up to a metaprocedural level and considers the procedure as a unit in its own right. Data will be drawn from microdevelopment in children's creation of external memory devices (i.e., changes in representation of a spatial task during a one hour's session) as well as from macrodevelopment in language acquisition (i.e., changes occurring over age in a (...) study of nominal determiners, pronouns and gender markers). These two aspects of development of representational systems are examined with respect to the spontaneous passage from concrete reference to abstract systems, from idiosyncratic to conventional notations, from redundant to economic marking, from unifunctional to plurifunctional meaningful units. These micro‐ and manodevelopmental changes take place in a spontaneous fashion despite the fact that the child's earlier system is adequate for successfully conveying the information required. A discussion will be made of the way in which children tend to indicate externally, by unifunctional markers, information which was implicit in their earlier use of an adult‐like system. They appear to be striving for the delicate balance between encoding and decoding efforts, ultimately leading to a felicitous representational system. Metaprocedural behavior is hypothesized to act as a control mechanism in the striving for this delicate balance of information content and information processing effort. It also appears to act as a control mechanism for the interprocedural organizotion of what was previously a plethora of juxtaposed, unconnected procedures yielding superficially analogous behavior. The stepping‐up to a metaprocedural level seems to occur each time the child has a handle on his currently functioning, goal‐oriented system. This enables the child to treat the system, or procedures which are part thereof, as units functioning in their own right. Thus there appears to be a deep‐rooted psychological tendency for a representational tool which functions well procedurally to become subsequently a problem‐space per se. (shrink)

Re-reads Marx in light of the contemporary critical interrogation of subjectivity.

In a number of very influential publications, Epstein and Hoover (among other authors) have recently argued that a thoroughly micro-foundationalist approach towards economics is unconvincing for metaphysical reasons. However, as we show in this article, this metaphysical/social ontological approach to the debate fails to resolve the status of micro-foundations in the practice of economic modelling. To overcome this, we argue that endogenizing a model—that is, providing micro-foundations for it—correlates with making that model more complex. Specifically, we (...) show that models with more micro-foundations tend to have more parameters or variables. This matters, as there are well-established methodological reasons for preferring models with fewer parameters or variables—ceteris paribus. We therefore conclude that, from a practice-based point of view, micro-foundations are only defensible to the extent that they significantly improve the ability of the relevant model to fit the data of interest. In this way, we arrive at a practice-based, methodological reconceptualization of the debate surrounding the need for micro-foundations in economics. (shrink)

My title refers to a very modern problem, for what else is modernization than a process of rational differentiation of society in autonomous, mutually isolated sub-spheres, to the point where no one any longer knows what the unity of it all is? We differentiate, we specialize, we hyperspecialize, and then we get puzzled over the fragmentation we have produced around us, between ourselves and even within ourselves. Look at our own area. You cannot even specialize in practical ethics any more. (...) You have to limit your attention to medical ethics, for example, the ethics of engineering, or business ethics. And within business ethics, my own field of research, the homo universalis is also threatened with extinction. You can do marketing ethics, ethics of finance or computer ethics, until you finally become the typical ‘expert’: someone who knows almost everything about almost nothing.From the despair over hyper-differentiation, the call for integration arises: the call for meaning, for reconfiguration, for making sense of our world and our lives again, the call for reconnection with the great traditions of our culture, the call for community.If we read the great theorists of modernization — Weber, Durkheim, Parsons, Habermas, Münch — we learn that the quest for integration is in fact an equally important aspect of modernization as is differentiation. They are two sides of the same coin. In this sense, I think, the integrative endeavour of the EEN can still be considered a modern one.We are presently facing an escalation, or a climax, of modernity. We live in a state of hypermodernity, in which technological, economic and cultural forces dynamize our society on an unprecedented scale. We are really living high up on the dazzling slopes of the exponential growth curves that the Club of Rome predicted over 25 years ago. Everyone speaks of change. Everything is changing, and with institutionalized change, everything has become uncertain. Within uncertainty, however, social disintegration is lurking. Does not the structural uncertainty that we are introducing in our society bring us back to a state of nature, to a state outside the hypothetical social contract on which modern social communities are based? Is not the life of the individualized, flexible wanderers on the labour market again resembling the pledge of man which Hobbes described as ‘solitary, nasty and brutish’ . Has not the life of many in our society again become ‘very unsafe and very insecure, full of fears and continual dangers’, in the way that Locke depicted the state of nature .I understand business ethics as an integrative undertaking in our society, integrative in particular with respect to the economy and the realm of formal organization, integrative also at the interface between life-world and system, to use the terminology of Habermas.Integrative endeavours in our society have an ambiguous relation to change. Change is a key challenge to business ethics. Should we accept disruptive forms of change as inevitable, in order to remain on speaking terms with the economy and its spokesmen? Or should we fiercely resist certain changes? Is change on our side, perhaps? Business ethics is sometimes presented as a way to help managers cope with the many paradoxes of our time. One-dimensional technological rationality, we say, is no longer adequate to grasp the complexities, ambiguities and paradoxes of our world. Successful management requires more flexible, more creative forms of thinking. Philosophy and ethics are then presented as alternatives. But then aren’t we, the philosophers, simply promoting ourselves as the new masters of change for our time? Isn’t the so-called postmodern consciousness in fact an ideological underpinning of hyper differentiation, and in this sense the ultimate self-realization of the spirit of modernity? What sense of direction do we offer, as business ethicists?I would like to speak about the integration of micro, meso and macro-levels in business ethics, from the perspective of social change. My basic thesis is that only an adequate ethics of responsibility can integrate a highly differentiated and ultra-complex society like ours. This integration through responsibility opens up new directions of social change, that proceed simultaneously at the micro, meso and macro-level.In order not to complicate matters too much, I will limit myself to two dimensions of change which are important for business ethics at the moment: economic change ; organizational change . In relation to these changes, I will conclude with some reflections on changes in business ethics itself, the ones that I think are needed. (shrink)

This book provides both an explanation of the inflation which has bedeviled economic policy in the West since the end of World War II and a micro-economic theory to purge Keynesian models of the Walrasian strain derived from Marshall's Principles. By focusing on what is taken to be the representative business firm of the twentieth century - the large corporation or megacorp - the microeconomic model presented in the book reverses the usual assumptions of economic analysis. Instead of assuming (...) the existence of firms with no control over prices, the book examines how the megacorp uses its pricing power to finance its own internal rate of growth. The result is a determinant model of how prices are set under the sort of oligopolistic conditions which prevail in most modern industries throughout the world. (shrink)

This research article analyses the influence of micro-enterprise managers' perception of their relationship to their environment on the nature of their ethics. We carried out a survey with the head managers of 125 French MEs, providing a large set of primary data. Two types of variables were defined: variables related to the nature and intensity of the relationships between ME managers and their social environment, and variables related to the ethical framework that the managers used. The results of univariate (...) and bivariate analyses show significant statistical relationships between the variables that indicated perceived embeddedness in the community and ethical variables. This result underlines the idea that "communities of ethics" may have an important influence in MEs. (shrink)

Scholarship on Corporate Social Responsibility has progressed to encompass a variety of theoretical frameworks. The adoption of Stakeholder Theory is prominent with regard to CSR among big businesses but its applicability towards micro and small businesses is contested. Micro and small businesses possess distinct differences most notably their less formal structure and more pronounced indigenous cultural diversity. To expand scholarship on CSR, this research explores the relatively less studied realm of micro businesses or informal businesses. Due to (...) their rudimentary structure, micro businesses normally operate with other organizations, institutions, and each other, and are thus intricately linked with the local community. Hence, this research explores a locality and institution where micro businesses thrive—Jelutong wet market in Penang, Malaysia. This research offers a rare and arguably novel perspective. Firstly, the micro businesses are operating alongside and constantly interacting with each other within the institutional setting of a wet market. Secondly, the said wet market is located in Penang, Malaysia that is highly diverse in terms of ethnicity, culture, religion, language, age, and socio-economics. The fieldwork employs multiple local languages for a high degree of authenticity and richness in data. Thirdly, this research adopts the methodology of phenomenology with a multi-layered approach. The fieldwork consists of thirty primary interviews followed by five verification interviews all conducted in local languages the respondents are most comfortable in expressing themselves, fifteen non-participant observations, and ten participant observations. An abductive research strategy is adopted and first-order constructs in the form of everyday typifications are adduced. The first-order constructs are analyzed along the layers of Carroll’s Pyramid of CSR. Subsequently, the second-order constructs are iteratively analyzed and three typologies on CSR among micro businesses emerged. Finally, the findings from the second-order constructs are superimposed back onto the Pyramid of CSR. A different Pyramid of CSR emerges with fresh insights on the phenomenon of CSR among micro businesses. Retroductive reflection, reasoning, and analysis reveal Social Capital Theory as the most suitable theoretical framework and the implications for CSR scholarship are discussed. (shrink)

The article explores a particular mode of time synthesis as carried out in the field of Islamic micro-finance in Indonesia. It approaches this financial experiment through Deleuze's tripartite division of time and the concept of promise advanced here. I argue that the analytical promise the concept of promise holds is partly related to its ability to circumscribe a field of practice that is at once theological and economic and partly to its privileging of the time of the future. What (...) the study of Islamic micro-finance offers to studies of Deleuze is a timely reminder that this explicit privileging is not adequate in and of itself for ‘relativising’ the effects of habit and memory on time, thought and politics. This is primarily because promising has a dual, ‘schizoid’ and distressed constitution: it is motivated as much by the affirmative ‘will to power’ as by the negative ‘will to improve’. (shrink)

In this paper I describe and analyze an economic situation involving two competitive organizations. I put forth the argument that because of the systemic nature of decision making relative to managing the requirements of utilizing a descriptive equation that determines how many people an economic system can support, that even if all the players in the situation act ethically, the results will still be harmful, and necessarily so, to the system and to many innocent people. I will demonstrate that harming (...) innocent people is required and morally defensible given the choices available. The best one can do is slow down the increase in disutilities and possibly operate the system within a range of acceptable behavior that minimizes the resulting harm to innocent people, even if we cannot entirely remove this harm. In this context ethics becomes the study of the acceptable as opposed to the preferable. (shrink)

Corruption involves greed, money, and risky decision-making. We explore the love of money, pay satisfaction, probability of risk, and dishonesty across cultures. Avaricious monetary aspiration breeds unethicality. Prospect theory frames decisions in the gains-losses domain and high-low probability. Pay dissatisfaction (in the losses domain) incites dishonesty in the name of justice at the individual level. The Corruption Perceptions Index, CPI, signals a high-low probability of getting caught for dishonesty at the country level. We theorize that decision-makers adopt avaricious love-of-money aspiration (...) as a lens and frame dishonesty in the gains-losses domain (pay satisfaction-dissatisfaction, Level 1) and high-low probability (CPI, Level 2) to maximize expected utility and ultimate serenity. We challenge the myth: Pay satisfaction mitigates dishonesty across nations consistently. Based on 6500 managers in 32 countries, our cross-level three-dimensional visualization offers the following discoveries. Under high aspiration conditions, pay dissatisfaction excites the highest- (third-highest) avaricious justice-seeking dishonesty in high (medium) CPI nations, supporting the certainty effect. However, pay satisfaction provokes the second-highest avaricious opportunity-seizing dishonesty in low CPI entities, sustaining the possibility effect—maximizing expected utility. Under low aspiration conditions, high pay satisfaction consistently leads to low dishonesty, demonstrating risk aversion—achieving ultimate serenity. We expand prospect theory from a micro and individual-level theory to a cross-level theory of monetary wisdom across 32 nations. We enhance the S-shaped Curve to three 3-D corruption surfaces across three levels of the global economic pyramid, providing novel insights into behavioral economics, business ethics, the environment, and responsibility. (shrink)

The goal of “Inclusive Economics” is to tie together various authoritative strands of contemporary economic theory into an easily comprehensible whole that illuminates the need for a broader approach to contemporary economic policymaking undistorted by obsolete 18th century rationalist assumptions about utility, ethics, worthiness and traditional culture. This is accomplished by elaborating the rationalist competitive ideal along the optimizing lines pioneered by Paul Samuelson (neoclassical economics); plumbing modifications necessitated by Herbert Simon's realist concepts of “bounded rationality” and “satisficing”; (...) refined further by applying a pragmatist outlook to probe the consequences of relaxing Enlightenment teleological, ethical, spiritual and cultural taboos. The exercise will explain why competitive market economies guided by rational utility-seeking invariably are less productive, efficient, just and beneficent than most theorists concede, and will illuminate the full range of interventions needed to achieve better outcomes. We call this program in its entirety “Inclusive Economics”, including the integration of micro and macroeconomics. (shrink)

In recent years, the long-standing questions of why, how, and which farm families continue farming in the face of ongoing changes have increasingly been studied through the resilience lens. While this body of work is providing updated and novel insights, two limitations, a focus on macro-level challenges faced by the farm operation and a mismatch between the scale of challenges and resilience measures, likely limit our understanding of the factors at play. We use the example of medical economic vulnerability, a (...) micro-level challenge traditionally confined to the household sphere of the agri-family system, as a way to call attention to these limitations. Focusing on United States farm households, we assess: To what extent are they experiencing medical economic vulnerability when using objective and subjective outcome measures? Which demographic and farm characteristics are associated with experiencing medical economic vulnerability? What is the association between institutional arrangements and medical economic vulnerability? Our analysis of over 900 surveys coupled with a conceptual framework merging complementary insights from three bodies of literature revealed seemingly large differences in the prevalence of medical economic vulnerability across the objective and subjective measures with the subjective measure indicating a general sentiment of medical economic vulnerability in a majority of respondents. Conversely, limited variations were noted in who experiences medical vulnerability on the basis of demographic and farm characteristics, with stronger associations being connected to the households’ health insurance arrangements. We conclude with three implications of our findings for the farm resilience literature. (shrink)

Preparers of financial statements are in a position to manipulate the view of economic reality presented in those statements to interested parties. This paper examines two principal categories of manipulative behaviour. The term macro-manipulation is used to describe the lobbying of regulators to persuade them to produce regulation that is more favourable to the interests of preparers. Micro-manipulation describes the management of accounting figures to produce a biased view at the entity level. Both categories of manipulation can be viewed (...) as attempts at creativity by financial statement preparers. The paper analyses two cases of manipulation. First, it describes a recent case of significant and successful lobbying against the accounting regulator in the USA. The second case examines some recent Spanish earnings manipulation to demonstrate the effects of biased reporting at the entity level. Both types of creativity are considered in an ethical context. The paper concludes that the manipulations described in it can be regarded as morally reprehensible. They are not fair to users, they involve an unjust exercise of power, and they tend to weaken the authority of accounting regulators. (shrink)

Sweatshop labour is sometimes defended from critics by arguments that stress the voluntariness of the worker’s choice, and the fact that sweatshops provide a source of income where no other similar source exists. The idea is if it is exploitation—as their opponents charge—it is mutually beneficial and consensual exploitation. This defence appeals to the non-worseness claim (NWC), which says that if exploitation is better for the exploited party than neglect, it cannot be seriously wrong. The NWC renders otherwise exploitative—and therefore (...) morally wrong—transactions permissible, making the exploitation of the global poor a justifiable path to development. In this paper, I argue that the use of NWC for the case of sweatshops is misleading. After reviewing and strengthening the exploitation claims made concerning sweatshops, most importantly by refuting certain allegations that a micro-unfairness account of exploitation cannot evaluate sweatshop labour as exploitative, I then argue that even if this practice may seem permissible due to benefits otherwise unavailable to the global poor, there remains a duty to address the background conditions that make this form of wrong-doing possible, which the NWC cannot accommodate. I argue that the NWC denies this by unreasonably limiting its scope and is therefore incomplete, and ultimately unconvincing. (shrink)

Drawing on evolutionary realism as a guiding framework and using relevant theoretical bases at macro-, meso-, and micro- levels, we investigate the relative variance explained by each level on selection and retention of Benefit Corporations. Based on a sample of 5052 observations of certified B-Corps and 1403 observations of decertified B-Corps, relative to the country and industry differences, firm-level differences explain most of the variance in non-economic performance, especially for workers and community impact areas. Industry-level differences explain small differences (...) in customers and environmental performance while country differences do not explain meaningful performance differences. The results also show a similar pattern in relative effects for decertified B-Corps. Our findings point to the value of disaggregating the relative effects of multilevel factors in further understanding drivers of non-economic performance and the decertification of B-Corps. (shrink)

The target article summarizes important research demonstrating that the canonical model of selfish, economic man is not empirically supported outside competitive settings, and that experimental research conducted in university settings should not be discounted because undergraduates were the subjects. Assuming that individuals are capable of reciprocity and trust provides a firmer foundation for the study of institutions, incentives, and outcomes.

As in the field of economics, the questions of business ethics can be divided into two distinguishable types — micro and macro. Micro-ethical questions arise primarily for subordinates in an organization and concern what should be done when the demands of conscience conflict with perceived occupational requirements. Macro-ethical questions arise principally for superiors and concern the setting of policy for the organization in general. The present article elaborates upon this distinction and advances a line argument for resolving (...) micro-ethical problems when their affinity to macro-ethical issues is noted. (shrink)

Economies are complicated systems encompassing micro behaviors, interaction patterns, and global regularities. Whether partial or general in scope, studies of economic systems must consider how to handle difficult real-world aspects such as asymmetric information, imperfect competition, strategic interaction, collective learning, and the possibility of multiple equilibria. Recent advances in analytical and computational tools are permitting new approaches to the quantitative study of these aspects. One such approach is Agent-based Computational Economics (ACE), the computational study of economic processes modeled (...) as dynamic systems of interacting agents. This chapter explores the potential advantages and disadvantages of ACE for the study of economic systems. General points are concretely illustrated using an ACE model of a two-sector decentralized market economy. Six issues are highlighted: Constructive understanding of production, pricing, and trade processes; the essential primacy of survival; strategic rivalry and market power; behavioral uncertainty and learning; the role of conventions and organizations; and the complex interactions among structural attributes, institutional arrangements, and behavioral dispositions. (shrink)

Twitter is a linguistic marketplace in which the processes of self-branding and micro-celebrity depend on visibility as a means of increasing social and economic gain. Hashtags are a potent resource within this system for promoting the visibility of a Twitter update. This study analyses the frequency, types and grammatical context of hashtags which occurred in a dataset of approximately 92,000 tweets, taken from 100 publically available Twitter accounts, comparing the discourse styles of corporations, celebrity practitioners and ‘ordinary’ Twitter members. (...) The results suggest that practices of self-branding and micro-celebrity operate on a continuum which reflects and reinforces the social and economic hierarchies which exist in offline contexts. Despite claims that hashtags are ‘conversational’, this study suggests that participatory culture in Twitter is not evenly distributed, and that the discourse of celebrity practitioners and corporations exhibits the synthetic personalization typical of mainstream media forms of broadcast talk. (shrink)

This volume examines themes that complicate the conventional economist's view of the world and thereby provide for a notably more complex, and humane, subject of study than the traditional Homo economicus. Written by economists and philosophers, these essays attempt to place neoclassical economic theory, especially conventional textbook micro-economic theory, in the broader context of other social sciences and modern economics. In doing so, the book aims to find the boundaries of economics and to define more sharply its (...) relationship to other kinds of inquiry. Though the widespread use of textbook microtheory in business, economic, and political analysis is a clear testament to its power, the restrictions and artificialities of neoclassical assumptions give cause for worry even to many economists. This book examines the extent to which the economist's paradigm - that man is characterized chiefly by self-interested goals and rational choice of means - is useful in studying traditional noneconomic fields such as philosophy, political theory, and rhetoric. It also looks at how insights from other disciplines are changing - and perhaps improving - the current practice of economics. (shrink)

Recent developments in public economics have largely been in the direction of reaffirming the limits of the market and of establishing new ones. The possible existence of fundamental non-convexities, imperfect and asymmetric information, incentive compatibility, imperfect competition, strategic complementarity, and scale economies led to the conclusion that a large set of market failures exist; such situations also imply government failure. Acocella, considers this complicated picture and provides a discussion of the different approaches to establishing social 'rankings' of the possible (...) situations and the underlying principles. The arguments for and against different institutions are then analysed at a micro and macroeconomic level. The market and the government are recognised as imperfect, and thus complementary, institutions. Specific policy targets and instruments are considered in the areas of micro and macro-economic policy. Special attention is devoted to questions of policy management in an open economy. Finally, problems of domestic and international policy co-ordination are considered. (shrink)

Chapter 1 is introductory. It identifies a cluster of philosophical problems that arise in the foundations of neoclassical economic theory. Issues growing out of the unusually tenuous connection between the theory and the world are singled out as especially troublesome. Is it, after all, possible for economics to look more like an empirical science like physics than like of branch of mathematics? ;Chapter 2 argues that economic methodology has been constrained by the application of faulty philosophy of science, or (...) by the faulty application of philosophy of science. Economists with good intentions have wanted to protect economic theory from intrusions by "unscientific" constructs that had no clear operational criteria for their application. I argue that these attempts to protect economics went astray because theoretical constructs were consequently made to answer to an excessively stringent notion of economic data. Consequently, I find means to argue that all data and, in particular, psychological data about individual economic agents is relevant in the construction and confirmation of economic theory. Actually, I advance the stronger thesis that economics actually owes us an account of the behavior of individuals and that this makes it evident that economic theory should strive to cover the widest range of phenomena is reasonable. ;Chapter 3 takes this broadened notion of economic theory as a starting point and shows why the new outlook can be expected to enrich present theory and make progress towards the project of connecting economics to the phenomena. I include explanations of how prima facie difficulties with the new outlook overcome. In the course of doing this, many striking analogies between economics and linguistics, another science that closely related to psychology, are brought out. The relatively successful resolution of methodological problems in linguistics that parallel methodological problems in economics seems encouraging. ;Finally, Chapter 4 examines a bundle of problems concerning the relationship between microeconomics and macroeconomics. Most of the conclusions drawn in this chapter are negative: I argue that the connection between the micro and the macro is more difficult to fathom than many writers seem to imply. . . . UMI. (shrink)

Are humans fair by nature? Why do we often willingly trust strangers or cooperate with them even if those actions leave us vulnerable to exploitation? Does this natural inclination towards fairness or trust have implications in the market-place? Traditional economic theory would perhaps think not, perceiving human interaction as self-interested at heart. There is increasing evidence however that social norms and norm-driven behaviour such as a preference for fairness, generosity or trust have serious implications for economics. This book provides (...) an easily accessible overview of economic experiments, specifically those that explore the role of fairness, generosity, trust and reciprocity in economic transactions. Ananish Chaudhuri approaches a variety of economic issues and problems including: Pricing by firms Writing labour contracts between parties Marking voluntary contributions to charity, Addressing issues of environmental pollution, Providing micro-credit to small entrepreneurs, Resolving problems of coordination failure in organizations. The book discusses how norm-driven behaviour can often lead to significantly different outcomes than those predicted by economic theories and these findings should in turn cause us to re-think how we approach economic analysis and policy. Assuming no prior knowledge of economics and containing a variety of examples, this reader friendly volume will be perfect reading for people from a wide range of backgrounds including students and policy-makers. The book should appeal to economics undergraduates studying experimental economics, microeconomics or game theory as well as students in social psychology, organizational behaviour, management and other business related disciplines. (shrink)

An examples-driven treatment of introductory economic dynamics for students with a basic familiarity with spreadsheets. Shone approaches the subject with the belief that true understanding of a subject can only be achieved by students themselves setting out a problem and manipulating it experimentally. Although all economics students now have access to spreadsheets, they are often used for little more than graphing economic data. This book encourages students to go several stages further and set up and investigate simple dynamic models. (...) The book presents the essentials of macro and micro economic dynamics, including: demand and supply dynamics, Keynesian dynamics, IS-LM, Inflation-unemployment, dynamics of the firm, rational expectations and saddle points, fiscal dynamics and the Maastricht Treaty and Chaos theory. The book contains 50 exercises. The support website contains an additional 100 questions for students and 100 for lecturers: www.cambridge.org/resources/economics. (shrink)

First published in 1977, this is an applied economics text, in which the basic theory of any introductory economics couurse is applied to a whole range of UK macro- and micro-economic policy issues. The book is designed specifically for first and second year university students, with the aim of demonstrating the relevance of theory to policy, how theory can be applied to policy problems and, in the process, to improve their understanding of the theory itself.

Monetary intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the dark side of monetary Intelligence and behavioral economics—dishonesty. Dishonesty, a risky prospect, involves cost–benefit analysis of self-interest. We frame good or bad barrels in the environmental context as a proxy of high or low probability of getting caught for dishonesty, respectively. We theorize: The magnitude and intensity (...) of the relationship between love of money and dishonest prospect may reveal how individuals frame dishonesty in the context of two levels of subjective norm—perceived corporate ethical values at the micro-level and Corruption Perceptions Index at the macro-level, collected from multiple sources. Based on 6382 managers in 31 geopolitical entities across six continents, our cross-level three-way interaction effect illustrates: As expected, managers in good barrels, mixed barrels, and bad barrels display low, medium, and high magnitude of dishonesty, respectively. With high CEV, the intensity is the same across cultures. With low CEV, the intensity of dishonesty is the highest in high CPI entities —the Enron Effect, but the lowest in low CPI entities. CPI has a strong impact on the magnitude of dishonesty, whereas CEV has a strong impact on the intensity of dishonesty. We demonstrate dishonesty in light of monetary values and two frames of social norm, revealing critical implications to the field of behavioral economics and business ethics. (shrink)

Organizational learning, at the broadest levels, as it has come to be understood within the organization theory and management literatures, concerns the experientially driven changes in knowledge processes, structures, and resources that enable organizations to perform skillfully in their task environments (Argote and Miron–Spektor, 2011). In this chapter, we examine routines and capabilities as an important micro–foundation for organizational learning. Adopting a micro–foundational approach in line with Barney and Felin (2013), we propose a new model for explaining how (...) routines and capabilities play a causal role in transforming experience into repertoires of (actual or potential) organization–level behavior. More specifically, we argue that routines and capabilities are built out of capacities for shared – both joint and collective – intentionality (Tomasello, 1999, 2014; Bratman, 1999a, 2014) that enable individuals to engage in complex forms of collaboration in conjunction with multiple layers of scaffolds that encompass material and symbolic resources, social processes, and cultural norms and practices (Weick, 1995; Hutchins, 1995; Clark, 1997, 2008; Orlikowski, 2007). In short, we outline what we call the ‘scaffolded joint action’ model and suggest its potential as a micro–foundation of organizational learning. (shrink)

National governments in several countries have promoted and carried out different forms of mergers, consolidations and alliances within their higher education systems in order to increase efficiency, effectiveness and governmental control to ensure that the universities more directly serve the national and regional economic and social objectives. This article sets out to explore structural reforms between and within universities from a micro-level perspective by investigating how academics make sense of and respond to the structural reforms, and how these reforms (...) shape academic cultures, work practices and identities. Drawing upon in-depth interviews with 31 Finnish academics working under structural rearrangements, five core meanings of structural reforms are discerned: structural development as part of a flood of changes, expanding bureaucracy, profiling, searching for partners and branding. The paper concludes that structural reforms along with other managerial transformations foster experiences of competition and polarization at the departmental and individual level of academia, involving redefining what it means to be a successful academic. (shrink)

For twenty years since the publication of his seminal paper 'The Market for "Lemons"', George A. Akerlof's work has changed the way we see economics, and the economics of information in particular. In abandoning the perfect-competition benchmarks of classical economics, the pragmatic modern economics championed by Akerlof has provided deep insights into markets, identity, discrimination, motivation, and work, and into behavioural economics in general.This collection of Akerlof's most important papers provide both an introduction to Akerlof's (...) work and a grounding in modern economics. Divided into two broad areas, micro- and macroeconomics, they cover the economics of information; the theory of unemployment; macroeconomic equilibria; the demand for money; psychology and economics; and the nature of discrimination and other social issues. The collection closes with Akerlof's 2001 Nobel Lecture, in which he argues that it is imperative that macroeconomics be considered inherently behavioural.Akerlof's substantial introduction to this volume tells the story of these papers, connecting them and showing how his later work has built upon his early contributions, in many cases improving their arguments, their subtlety, and their usefulness today. (shrink)

This article comprises an up-to-date critical review of the field known as Economic Methodology or Philosophy of Economics (EM/PE). Two edited volumes (Kincaid and Ross 2021; Heilmann and Reiss 2021), a special issue of the Journal of Economic Methodology (2021), and a recent bibliometric analysis of the field (Claveau et al. 2021) constitute the basis of the review. Drawing on these sources, we identify a number of problematic trends in current EM/PE research. We claim that these trends could be (...) interpreted as two kinds of biases, namely a micro-level bias and a mainstream bias. We discuss the respective details of these biases and their normative implications for the discipline. (shrink)

Monetary Intelligence theory asserts that individuals apply their money attitude to frame critical concerns in the context and strategically select certain options to achieve financial goals and ultimate happiness. This study explores the bright side of Monetary Intelligence and behavioral economics, frames money attitude in the context of pay and life satisfaction, and controls money at the macro-level and micro-level. We theorize: Managers with low love of money motive but high stewardship behavior will have high subjective well-being: pay (...) satisfaction and quality of life. Data collected from 6586 managers in 32 cultures across six continents support our theory. Interestingly, GDP per capita is related to life satisfaction, but not to pay satisfaction. Individual income is related to both life and pay satisfaction. Neither GDP nor income is related to Happiness. Our theoretical model across three GDP groups offers new discoveries: In high GDP entities, “high income” not only reduces aspirations—“Rich, Motivator, and Power,” but also promotes stewardship behavior—“Budget, Give/Donate, and Contribute” and appreciation of “Achievement.” After controlling income, we demonstrate the bright side of Monetary Intelligence: Low love of money motive but high stewardship behavior define Monetary Intelligence. “Good apples enjoy good quality of life in good barrels.” This notion adds another explanation to managers’ low magnitude of dishonesty in entities with high Corruption Perceptions Index. In low GDP entities, high income is related to poor Budgeting skills and escalated Happiness. These managers experience equal satisfaction with pay and life. We add a new vocabulary to the conversation of monetary intelligence, income, GDP, happiness, subjective well-being, good and bad apples and barrels, corruption, and behavioral ethics. (shrink)

It is widely recognised that mainstream economics has failed to translate micro consistently into macro economics and to provide endogenous explanations for the continual changes in the economic system. Since the early 1980s, a growing number of economists have been trying to provide answers to these two key questions by applying an evolutionary approach. This new departure has yielded a rich literature with enormous variety, but the unifying principles connecting the various ideas and views presented are, as (...) yet, not apparent. This 2005 volume brings together fifteen original articles from scholars - each of whom has made a significant contribution to the field - in their common effort to reconstruct economics as an evolutionary science. Using meso economics as an analytical entity to bridge micro and macro economics as well as static and dynamic realms, a unified economic theory emerges. (shrink)

Positive economic models aim to provide truthful explanations of significant economic phenomena. While the notion of ‘preferences’ figures prominently in micro-economic models, it suffers from a remarkable lack of conceptual clarity and rigor. After distinguishing narrow homo economicus models from broader ones and rehearsing the criticisms both have met, I go into the most promising attempt to date at addressing them, developed by Hausman. However, his definition of preferences as ‘total comparative evaluations’, I argue, plays into the general disregard (...) that economists have for human psychology. My alternative definition of preferences as ‘overall comparative evaluations’ – and hence as one of the many factors that influence people’s behavior – allows for more adequate causal explanations of people’s dutiful, committed, and norm-guided actions. Against Hausman but in agreement with Sen, it also allows for counterpreferential choice. (shrink)

Baumard proposes that life history slowing in populations over time is the principal driver of innovation rates. We show that this is only true of micro-innovation rates, which reflect cognitive and economic specialization as an adaptation to high population density, and not macro-innovation rates, which relate more to a population's level of general intelligence.

The convergence of nano-, bio-, information, and cognitive sciences and technologies (NBIC) is advancing continuously in many societal spheres. This also applies to the manufacturing sector, where technological transformations in robotics push the boundaries of human–machine interaction (HMI). Here, current technological advances in micro- and nanomanufacturing are accompanied by new socio-economic concepts for different sectors of the process industry. Although these developments are still ongoing, the blurring of the boundaries of HMI in processes at the micro- and nano- (...) level can already be observed. According to the authors, these new socio-technical HMIs may lead to the development of new work environments, which can also have an impact on work organization. While there is still little empirical evidence, the following contribution focuses on the question whether the “manufacturing (or working) life” using enhancement practices pushes the boundaries of HMI and how these effects enable new modes of working in manufacturing. Issues of standardization, acceleration of processes, and order-oriented production become essential for technological innovation in this field. However, these trends tend to lead to a “manufacturing life” in work environments rather than to new modes of work in industry. (shrink)

Professor Roemer's goal in this book is to give a rigorous view of classical Marxian economic theory by presenting specific analytic models. The theory is not extended to deal with new problems, but it is deepened: Marxian theory is given micro-foundations and upon those foundations the author begins to rebuild a tightly constructed Marxian economics. The book begins, after a methodological introduction, with an examination of the Marxian notion of equilibrium and the theory of exploitation, and goes on (...) to deal with the theory of the falling rate of profit. The next section explores one of the points made in the first section of the book, that the Marxian theory of exploitation can be constructed completely independently of the labor theory of value as a theory of exchange. Technical study of this problem allows comment on various issues, such as the relative importance of 'marginal utilities' and 'class struggle' in determining relative prices. The final part examines models of various Marxian concepts. (shrink)

This article discusses the new microhistory of the 1970s and 1980s in terms of the concept of exceptional typical, and contrasts the new microhistory to old microhistory, in which the relationship between micro and macro levels of phenomena was defined by means of the concepts of exceptionality and typicality. The focus of the essay is on Carlo Ginzburg's method of clues, Walter Benjamin's idea of monads, and Michel de Certeau's concept of margins. The new microhistory is also compared with (...) methodological discussions in the social sciences. In the mid-1970s concepts like the micro-macro link or the microfoundations of macrotheory were introduced in sociology and economics. But these largely worked in terms of the concepts of typicality or exceptionality, and this has proved to be problematic. Only historians have developed concepts that escape these and the older definitions of the micro-macro relationship; indeed, the "new microhistory" can best be described in terms of the notion of "exceptional typical." The essay explores the meaning of this notion. (shrink)

Societies with a higher level of income inequality tend to have lower levels of intergenerational income mobility. Known as the Great Gatsby Curve, this negative relationship in part derives from greater intergenerational economic heritance among the poor. Societies with higher rates of relative poverty will have a higher level of income inequality, but they will also tend to have lower intergenerational mobility due to the reduced capacity of low-income persons to become upwardly mobile. Reviewing relevant research in psychology, we describe (...) how poverty is associated with decreased psychological resources that compromise the competitiveness of low-income persons for superior attainment in the educational system and for greater productivity in the labor market. Economic deprivation in itself thus leads to a “vicious circle” of disadvantage that diminishes intergenerational mobility even without the existence of any culture of poverty or monopolistic institutions in the economy. (shrink)

In this paper we highlight the racialized effects of agricultural labor laws on Southeast Asian family farmers in California’s Central Valley. We show how agricultural labor laws intended to protect farmworkers on industrial farms discriminate against and challenge small Southeast Asian refugee farmers. Hmong, Iu-Mien and Lao family farmers rely on cultural practices of labor reciprocity and unpaid help from extended family and clan networks to sustain the economic viability of their farms. This kind of labor sharing, a central tenet (...) of their customary farming practices, and a cornerstone of the American family farm ideal, is illegal in California agriculture. We examine the historical context that gave rise to agricultural labor regulations in California and the ways in which these regulations are both under-enforced and unevenly enforced, differentially impacting immigrant family farms, while failing to protect those for whom the laws were originally intended. In highlighting how employment and labor laws and their enforcement or lack thereof discriminate against Southeast Asia farms, this study illustrates how other “small family farms” reliant on volunteerism or labor-sharing arrangements, part of the emergent “sharing economy,” may be confronting similar legal conundrums to those faced by Southeast Asian farms. (shrink)

How and why did comparative political economy lose sight of the sources of growing macroeconomic and political instability, a problem that encompassed a growing financial bubble and then a crash in the housing market, a period of sluggish growth that plausibly constitutes secular stagnation, and a crisis of political legitimacy manifesting itself in the rise of antisystem “populist” parties? A gradual shift in CPE’s research agenda from macroeconomic to microeconomic concerns, and from demand-side to supply-side explanations, diminished its ability to (...) analyze adequately the central economic and political problems of the past twenty years. This article traces CPE’s evolution through successive “supermodels” that constituted its core research foci. To understand the current crisis, CPE needs to revisit and update its original roots in Keynes, macroeconomics, and the demand side. This shift is already happening at the margins, as CPE scholars struggle to understand the current crisis. (shrink)

Fundamentally, Roman economic history is the study of how and why inhabitants of the Roman world produced, distributed and exchanged goods and services. By understanding the economic actions, events, institutions and products of the Roman world, Roman economic historians come to understand better the Romans themselves: their motivations, values, relationships and identities, among other things. With such a broad remit, today's Roman economic and monetary historians not only scour traditional sources for evidence of Roman commerce, prices, labour, capital and contracts, (...) but they now deploy an ever-broadening range of methodologies, theories and approaches – some of which originate well outside the disciplines of both history and economics. Some Roman economic historians, for example, create, investigate and run simulations, using massive digital archives of data gleaned from ancient evidence. Others compare micro-nutrients in ancient wheat varieties with their modern counterparts to gain a better understanding of diet, nutrition and economic prosperity in Roman cities. Increasingly, specialists in some aspect of the Roman economy find themselves members of internationally funded interdisciplinary teams seeking to understand what Arctic ice cores or North-American tree rings say about money production in the Roman principate. Roman economic historians’ scholarly sprawl has never been more challenging to describe, but I believe it is possible to group recent developments in the field into three overlapping areas: digitisation, particularisation and consilience. (shrink)

Unemployment has been at historically high rates for an extended period, and while it has recently improved in certain countries, the unemployment that remains may be becoming structural. Aside from inequality, unemployment is accordingly the problem that is most likely to put critical pressure on our political institutions, disrupt the social fabric of our way of life, and even threaten the continuation of liberalism itself. Despite the obvious importance of the problem of unemployment, however, there has been a curious lack (...) of attention paid to this issue by contemporary non-Marxist political philosophers. Non-Marxists typically view unemployment as a technical matter, and doing something about it a question of means not ends, with the solution to this question depending on the kind of empirical determinations about what causes what that are best left to economists, not political philosophers. But I think this is a mistake. Because work is a major part of our social life, as well as something that for a great many people grounds their sense of who they are and provides the basis of their sense of self-respect, those unable to find work are missing out on a great deal of what makes for a meaningful life, and not just the economic benefits that social cooperation has to offer. Those who are unemployed accordingly have something to complain about, even if we do not let them starve, and the rest of us (or at least the institutions that represent us) may have some sort of moral obligation to take action to increase the number of employment opportunities currently available regardless of any uncertainty surrounding the effects that any actions open to us might have. The nature and extent of this moral obligation is what On Unemployment is dedicated to exploring. (shrink)

Recent developments in public economics have largely been in the direction of reaffirming the limits of the market and of establishing new ones. The possible existence of fundamental non-convexities, imperfect and asymmetric information, incentive compatibility, imperfect competition, strategic complementarity, and scale economies led to the conclusion that a large set of market failures exist; such situations also imply government failure. Acocella, considers this complicated picture and provides a discussion of the different approaches to establishing social 'rankings' of the possible (...) situations and the underlying principles. The arguments for and against different institutions are then analysed at a micro and macroeconomic level. The market and the government are recognised as imperfect, and thus complementary, institutions. Specific policy targets and instruments are considered in the areas of micro and macro-economic policy. Special attention is devoted to questions of policy management in an open economy. Finally, problems of domestic and international policy co-ordination are considered. (shrink)