Economics and Ethics

The article examines the peculiarities and modern specifics of the formation of ecological and economic security in Ukraine in the conditions of digitalization. It was determined that the lack of dynamic growth, the violation of the optimal balance and balance of the ecological and economic system are caused by the depletion of raw resources, a decrease in the overall potential of the environment, and the irrational use of natural resources. It has been proven that in the conditions of digitalization, a (...) new challenge for all enterprises is to ensure the ecological and economic efficiency of their activities, which combines the principles of transparency and openness in their functioning. It has been proven that the strategy of environmentally-oriented economic development should be aimed at solving environmental problems and preserving biological diversity. (shrink)

Determining the precise nature of the connection between preference, choice, and welfare has arguably been the central project in the field of welfare economics, which aims to offer a proper guide for economists in the making of policy decisions that affect people’s welfare. The two leading approaches here historically – the revealed preference and latent preference approaches – seem equally incapable of so guiding economists. I argue that the deadlock here is due to welfare economists’ failure to recognize a crucial (...) distinction between two senses of “preference.” I analyze and defend these senses of “preference,” and argue that each shares a close connection with just one of choice and welfare. This analysis reveals how economists should conceive of both the connections between “preference,” choice, and welfare, and the proper roles of these concepts in welfare economics. I conclude by showing this analysis to best explain the plausibility of two leading alternative approaches from Hausman and Sugden. (shrink)

El concepto de desarrollo humano del Programa de las Naciones Unidas para el Desarrollo surge en 1990 como una crítica a la consideración de la economía como el fin último de los esfuerzos del desarrollo. En la visión del PNUD, la economía es considerada un fin relativo, es decir, un fin y un medio para el desarrollo humano. Al considerar, por su parte, el fin del desarrollo humano, este es identificado con el ensanchamiento de las opciones y libertades de que (...) gozan los individuos. En este sentido, este concepto de desarrollo humano hace alusión a una práctica política más que a un entendimiento ético-ontológico del ser humano, evitando referirse a desarrollo humano entendido como un desarrollo del ser humano. Este artículo explora los antecedentes del concepto del desarrollo humano del PNUD y los fines que consideran estos enfoques previos. Se observa que la consideración subjetivista del PNUD proviene de la teoría de Amartya Sen, quien queda sujeto a la crítica objetivista de Martha Nussbaum al no considera un fin objetivo para los asuntos humanos, crítica que puede de igual manera aplicarse al concepto de desarrollo humano del PNUD. (shrink)

The paper presents the content, as well as approaches to the use in the educational process of the author’s Electronic educational methodical complex (EEMC) “Construction of car”. The course is created for students of the speciality 015 Professional education (Transport, the operation and repairing of automobiles). Its content covers general topics including the study of a car engine, electrical equipment and automotive driveline. The created electronic course embraces, in addition to textual material, illustrations, dynamic models, instructions, manuals, textbooks, reference books (...) and glossaries, test material for each topic. Its possibilities of application during lectures, in the course of performing 15 laboratory works, organizing test control of knowledge, as well as for managing students’ independent study activities have been shown. Approaches to expert evaluation of the developed electronic study course by 11 criteria have been disclosed. The directions for further improvement of the content and methods of organizing the study and cognitive activity of students when using the course have been highlighted. These include the organization of level assimilation of the material, the creation of an individual educational trajectory of students. A rather high assessment of the developed author’s course received from experts allows it to be used in the system of vocational preparation specialists in the transport area of expertise. (shrink)

Some meritocratic defenders of capitalism rely on the principle that cooperators should receive a share of the product commensurate with their contribution. However, such defences of capitalism fail due to a dilemma. Either they rely on an understanding of contribution that arguably will be reflected by the capital-labour split in suitably idealized capitalist economies, but cannot serve as a plausible standard of merit; or they rely on an interpretation of contribution that is a plausible standard of merit, but which won’t (...) tend to be reflected by the capital-labour split in capitalist economies. (shrink)

The resources and resource potential of the innovative component of nanoeconomics are analyzed. The factors of production – classical types of resources such as land, labor, capital and technology – are described. Ways of influencing the security resources of nanoeconomics within the innovation paradigm are evaluated. The purpose of the study is to identify the factor of nanoeconomics in the formation of resource security potential in the innovation paradigm. To achieve this goal, the following tasks were set: to characterize the (...) importance of the land resource as a factor in the potential of economic nanosystems; to highlight the importance of capital as a factor of nanoproduction and an indicator of the innovation paradigm; to determine the labor resource in the development of innovative nanosystems; to analyze the intellectual potential of nanoeconomic development of the innovation paradigm; to identify clusters of innovative nanopotential in the regions of countries with transition economies. Each resource is examined separately with the first analysis of a resource security assessment such as land. The other resource under consideration is labor. Demographic factors become decisive in describing the development of labor resources. The capital factor allows the formation of independent economic systems, when the state budget affects the possibility of developing science, education and health care. A number of methods were applied during the study: methods of induction and deduction (to assess the importance of the innovation paradigm for the development of nanoeconomics); system analysis and structural approach (to determine the aggregate state of production factors); method of comparing the quality of production factors in market economies and in developed countries; an observation method (for assessing the state of resources in different countries); method of cluster analysis (to determine the existence of innovation-territorial regions in countries with economies in transition). The analysis is carried out to identify the conditions of the impact of production factors on the innovative paradigm of nanoeconomics. It reveals theoretical approaches to the formation of nanoeconomics and its active development. As a result of the study of intellectual and resource potential of security, a cluster analysis was carried out to assess the conditions for the formation of innovation-territorial regions. This study allows to understand the role of production security factors in the formation of the innovation paradigm and the efficiency of the development of nanoeconomics. The way of providing the basis for the development of nanoeconomics in the form of efficient use of production factors is considered as a perspective. (shrink)

Translation into Portuguese of SEP entries on Philosophy of Economics.

This teaching and learning guide accompanies the following article: Mintz-Woo, K., 2022. Carbon Pricing Ethics. Philosophy Compass 17(1):article e12803. doi:10.1111/phc3.12803. [Open access].

The three main types of policies for addressing climate change are command and control regulation, carbon taxes (or price instruments), and cap and trade (or quantity instruments). The first question in the ethics of carbon pricing is whether the latter two (price and quantity instruments) are preferable to command and control regulation. The second question is, if so, how should we evaluate the relative merits of price and quantity instruments. I canvass relevant arguments to explain different ways of addressing these (...) important policy questions, suggesting that carbon pricing is preferable to command and control regulation, and that price instruments have the theoretical edge over quantity instruments. [Open access]. (shrink)

Understanding the buying and shopping behaviour of current and potential consumers is essential in formulating a successful marketing strategy. It is no longer sufficient for companies to merely produce goods or provide services; companies must know who their consumers are, why they buy, when, where and at what price they buy, and what benefits they expect to gain from the purchase. Companies also need to identify how far consumers are willing to travel to make their purchases and whether the size (...) of the sales area plays a significant role in their preferences. Retailers must also determine whether their customers prefer online shopping or want to buy and spend their leisure time in shopping centres. The paper aims at presenting the selected current trends in buying and shopping through elaborating an overview of the selected research studies and secondary data. The paper also gives an overview of contemporary trends in shopping, customer preferences with regard to types of retail outlets, e-commerce as such, buying and shopping in the online environment and, last but not least, the changes in consumer behaviour during the COVID-19 pandemic. -/- Pochopenie nákupného správania súčasných a potenciálnych spotrebiteľov je podstatou úspešnej marketingovej orientácie na trhu. Nestačí už len vyrábať výrobky, resp. Poskytovať služby, je potrebné poznať, kto je spotrebiteľ, prečo nakupuje, kedy a kde nakupuje, za akú cenu a aký úžitok od nákupu očakáva. Akú vzdialenosť je ochotný prejsť za nákupmi, či hrá v tejto preferencii podstatnú úlohu predajná plocha predajne, alebo vzdialenosť. Či preferuje online prostredie, alebo chce okrem nákupov (hlavne) v nákupných centrách tráviť aj svoj voľný čas. Cieľom nášho príspevku bolo zhodnotiť vybrané súčasné trendy v nakupovaní prostredníctvom spracovania prehľadu vybraných výskumov a sekundárnych dát. V príspevku sa stručne venujeme prehľadu súčasných trendov v nakupovaní, preferenciám spotrebiteľov podľa typu predajní, elektronickému obchodu ako takému, nakupovaniu v online prostredí a v neposlednom rade aj zmenám v spotrebiteľskom správaní počas trvania pandemie COVID-19. (shrink)

El concepto de desarrollo humano del Programa de las Naciones Unidas para el Desarrollo (PNUD) surge en 1990 como una crítica a la consideración de la economía como el fin último de los esfuerzos del desarrollo. En la visión del PNUD, la economía es considerada un fin relativo, es decir, un fin y un medio para el desarrollo humano. Al considerar, por su parte, el fin del desarrollo humano, este es identificado con el ensanchamiento de las opciones y libertades de (...) que gozan los individuos. En este sentido, este concepto de desarrollo humano hace alusión a una práctica política más que a un entendimiento ético-ontológico del ser humano, evitando referirse a desarrollo humano entendido como un desarrollo del ser humano. Este artículo explora los antecedentes del concepto del desarrollo humano del PNUD y los fines que consideran estos enfoques previos. Se observa que la consideración subjetivista del PNUD proviene de la teoría de Amartya Sen, quien queda sujeto a la crítica objetivista de Martha Nussbaum al no considera un fin objetivo para los asuntos humanos, crítica que puede de igual manera aplicarse al concepto de desarrollo humano del PNUD. (shrink)

This paper defends the claim that mere temporal proximity always and without exception strengthens certain moral duties, including the duty to save – call this view Robust Temporalism. Although almost all other moral philosophers dismiss Robust Temporalism out of hand, I argue that it is prima facie intuitively plausible, and that it is analogous to a view about special obligations that many philosophers already accept. I also defend Robust Temporalism against several common objections, and I highlight its relevance to a (...) number of practical policy debates, including longtermism. My conclusion is that Robust Temporalism is a moral live option, that deserves to be taken much more seriously in the future. (shrink)

Risk assessment is one of the prerequisites for understanding its causes and possible consequences. We base our risk assessment on the principles described in the European standard EN 31000 - Risk Management Process. This standard comprehensively describes the continuous activities that are necessary in managing risks and minimizing their possible adverse effects on the operation of the system under investigation. In this activity, it is necessary to first identify the existing risks, then analyze and evaluate the identified risks. In the (...) analysis of existing risks, it is possible to use both qualitative and quantitative analytical methods, or combine them. We use qualitative methods in cases where we do not have a sufficient amount of input information, these are more subjective. Quantitative methods are more accurate, but also more demanding on input information and time. The choice of a suitable analytical method is a basic prerequisite for knowledge of risks and their evaluation. The values of individual risks obtained in this way are the basis for determining the measures that are ecessary to minimize them, i.e., to adjust them to an acceptable level. The draft measures are always based on the value of the individual components used to calculate the risk number, as well as on the value of the asset , which needs to be protected. Appropriately chosen analytical methods are one of the basic prerequisites for the consistent application of the principles of risk management, as a continuous process aimed at increasing the overall security of the system under study. In the article, the author describes the procedures used in risk assessment, as well as specific analytical methods that can be used in working with risks. The aim of identifying risk factors is to create a list of events that could cause undesirable disruption to ongoing processes. At this stage, we define all the risks that will be subsequently analyzed and evaluated. When identifying, we can use methods such as, e.g. SWOT, PHA (Preliminary Hazard Analysis) or CA (Checklist Analysis). Methods suitable for determining the causes and creating scenarios for the course of a risk event are ETA (Event Tree Analysis) or FTA (Fault Tree Analysis). The basic analysis of the system can be performed using the FMEA method (Failure Mode and Effect Analysis), which provides a numerical risk assessment. By comparison with the numerical value of the risk that we are willing to accept, we obtain 2 groups of risks. Acceptable, which will be given regular attention and unacceptable, which we will focus on in risk management and we will try to minimize its negative affect on the functioning of the system under study. (shrink)

The article aims to define the management mechanism of complex, open dynamic systems with human participation. The following parts of the system life-cycle were identified and unified in the theoretical scope: general and specific compositional elements of repeating changes, marginal index boundaries, the dynamics of the compositional elements of the lifecycle, the key points of the change in the character of the index dynamics. In the practical scope, two common trends of socio-economical system life-cycle management are considered. The first trend (...) is the regulation of the comprising element ratio, which provides the increase in the duration of the maximally effective performance of a functioning system. The second trend is the regulation of the reproduction time of a new system. The systems life cycle aspects are investigated in almost all sciences and studied within many disciplines in the field of higher education. Therefore, deepening the mastery of scientific and methodological foundations of the life cycle of a complex open dynamic system is useful for any subject in everyday and practical activities. A human being – in the formation of own human capital. Families – when it is formed, the birth of children, the distribution of income and expenses. Companies – for efficient business activities. As well as local communities, local self-government bodies, public authorities and global entities within their profile activities. The results of the research provide the possibility of the development of applicable mechanisms for effectiveness and stability enhancement of managerial and entrepreneurial operation in business projects. (shrink)

O escritor A. J. Jacobs (2018) decidiu agradecer todas os envolvidas na preparação de seu cafezinho diário; isso o levou a uma jornada épica para contatar milhares de pessoas, desde a barista que lhe vendia o expresso matinal, passando por designers e inventores, até os agricultores que plantaram e colheram o grão em outro continente. Não existe um único indivíduo ou grupo responsável pelo seu café: é preciso um mundo para produzi-lo; é resultado de uma cadeia produtiva, uma rede decentralizada (...) que envolve diversos serviços espalhados internacionalmente – e todas essas pessoas, por sua vez, consomem outros produtos, com outras cadeias. Como este livro. Contraste esse exemplo com a anedota do diplomata soviético que, visitando Londres, fica maravilhado com as padarias – e então pergunta pelo encarregado da distribuição de pães na cidade (Harari, 2016, p. 372). Para seu espanto, os economistas ingleses respondem que ninguém tem esse cargo: o fornecimento de pães é resultado de um agregado de decisões individuais, em que cada fornecedor de matéria-prima (como farinha, sal, fermento) e serviços (transporte, padaria, limpeza) regula sua oferta a partir do que espera que os consumidores querem consumir – e o quanto estes estão dispostos a pagar. É o caso clássico do funcionamento de uma economia de mercado – em contraste com uma economia de comando, onde um grupo de pessoas, conscientemente, toma decisões sobre produção e distribuição. Esses exemplos ressaltam as “vantagens” dos mercados; pode ser tentador pensar, a partir deles, que todos os bens e serviços deveriam ser fornecidos dessa forma, porque isso maximiza a liberdade individual ou tende a 553 levar ao bem-estar coletivo, e que o melhor a fazer é evitar interferências nesse sistema – ideias associadas ao liberalismo econômico, uma teoria política e econômica que tem por patrono Adam Smith (o primeiro economista clássico). No entanto, mesmo economistas liberais reconhecem que há falhas de mercado (como bens públicos e monopólios129). Voltemos a A. J. Jacobs, o qual frisa seu agradecimento ao serviço de fornecimento de água, um “milagre moderno”: ao longo da história, a imensa maioria das pessoas não teve acesso a água encanada – mesmo hoje, 2 bilhões de pessoas ainda carecem de condições sanitárias adequadas (água e esgoto), o que causa doenças que matam 829 mil por ano (WHO, 2015). É um problema que não pode ser resolvido só por mercados, nem por associações filantrópicas; na maior parte do mundo, é um serviço público, geralmente fornecido ou regulado por estados – e sua ausência decorre de falhas de governo. (shrink)

This chapter qualitatively lays out some of the ways that climate change impacts are evaluated in integrated assessment models (IAMs). Putting aside the physical representations of these models, it first discusses some key social or structural assumptions, such as the damage functions and the way growth is modeled. Second, it turns to the moral assumptions, including parameters associated with intertemporal evaluation and interpersonal inequality aversion, but also assumptions in population ethics about how different-sized populations are compared and how we think (...) about distributing goods across or within times. The intention is to survey the morally important assumptions that go into estimates of the social cost of carbon, the marginal cost of an additional tonne of carbon dioxide to society. (shrink)

This article develops a diagnostic lens to make sense of the still baffling development of a ‘humanitarian marketplace’. Ambivalently hybrid initiatives such as volunteer tourism, corporate social responsibility or even fair trade do not strictly obey a distributive logic of market exchange, social reciprocity or philanthropic giving. They engender a type of ‘economy’ that must be apprehended in its own terms. The article argues that the large-scale collaborative effects of such a dispersed market can be theorized without resorting to the (...) classical biopolitical move of simplified agency/holistic reification. The argument proceeds counterintuitively, by appropriating the notion of symbiosis as redefined by contemporary biology, contending through historical contextualization and conceptual work that nature itself offers the best example to grasp spontaneous collaboration among unrelated human beings as a non-automatically balanced and intrinsically political affair that calls for critical management through an ex post facto interventionist policy of selective cultivation. (shrink)

In the recent well-being literature, various theory-free accounts of well-being have been proposed to ground informative evaluations of policies’ welfare implications without relying on any specifi...

This article analyzes Thomas Piketty's latest book, Capital and Ideology (2020). We begin by placing the work in the context of the thesis developed by the author in his previous works, before pointing out a number of limitations. We first question Piketty's way of thinking about capitalism, before discussing his theory of ideology. Finally, we will try to define the scope and limits of Piketty's vision of overcoming capitalism, that is, his vision of a just society, a "participatory socialism", as (...) it is presented in the last chapter of the book. (shrink)

The coronavirus disease 2019 (COVID-19) crisis ought to serve as a reminder about the costs of failure to consider another long-term risk, climate change. For this reason, it is imperative to consider the merits of policies that may help to limit climate damages. This essay rebuts three common objections to carbon taxes: (1) that they do not change behaviour, (2) that they generate unfair burdens and increase inequality, and (3) that fundamental, systemic change is needed instead of carbon taxes. The (...) responses are (1) that there is both theoretical and empirical reason to think that carbon taxes do change behaviour, with larger taxes changing it to a greater extent; (2) that undistributed carbon taxes are regressive but distributing the tax receipts can alleviate that regressivity (and, in many cases, make the overall effect progressive); and (3) that while small changes for increasing democratic decision-making may be helpful, (fundamental) change takes time and the climate crisis requires urgent action. [Open access] //// -/- La crise de lamaladie à coronavirus 2019 (COVID-19) devrait servir de rappel sur les coûts de la non-prise en compte d’un autre risque à long terme, les changements climatiques. Pour cette raison, il est impératif de considérer lesmérites des politiques susceptibles de contribuer à limiter les changements climatiques. Cet essai réfute trois objections courantes aux taxes sur le carbone : (1) qu’elles ne changent pas les comportements (2) qu’elles génèrent des charges injustes et augmentent les inégalités, et (3) qu’un changement fondamental et systémique est nécessaire au lieu de taxes sur le carbone. Les réponses sont (1) qu’il existe des raisons à la fois théoriques et empiriques de penser que les taxes sur le carbone modifient effectivement les comportements, et que des taxes plus élevées les modifient dans une plus grande mesure; (2) que les taxes sur le carbone non distribuées sont régressives,mais que la distribution des recettes fiscales peut atténuer cette régressivité (et, dans de nombreux cas, rendre l’effet global progressif); et (3) que, bien que de petits changements pour l’amélioration de la prise de décision démocratique peuvent être utiles, un changement (fondamental) prend du temps et la crise climatique exige une action urgente. (shrink)

[Newspaper opinion] strengthening carbon pricing during COVID-19 is the best time to do so for both consumers and for governments.

[Newspaper Opinion] Before the COVID-19 pandemic and the accompanying fall in oil prices, a carbon price would have been immediately painful for the countries that imposed it, but far better for everyone over the longer term. In this unprecedented moment, introducing a carbon price would be beneficial both now and for the future.

Cuestiones vinculadas a la responsabilidad social empresaria y la presencia de valores éticos en las empresas han cobrado especial importancia. Si bien no siempre se manifiestan concretamente, al menos se han hecho presentes en los aspectos a considerar en las organizaciones sociales. Pero los mayores inconvenientes al tratar el tema de la ética en la empresa, no residen en señalar si hay o no valores que rigen la práctica de las organizaciones sociales, porque en sentido amplio todos estaríamos de acuerdo (...) en que los hay, sino en determinar cuál es el contenido de la ética a la que se hace referencia cuando se habla de ética de la empresa; donde el concepto " valor " , ya no es entendido en sentido amplio, y " se convierte " en " determinados valores éticos " que ordenan o " debieran ordenar " el quehacer de las organizaciones sociales. Con el fin de señalar el contenido propio de esta ética, y siguiendo la propuesta de Adela Cortina, intentaremos penetrar en esto que la autora ha llamado ética de mínimos, sobre la que se apoya la ética de máximos que permite a las personas alcanzar la felicidad. (shrink)

The article examines the process of formation inventory of the enterprise and determines the optimal volume of commodity resources for sale. A generalization of author’s approaches to the formation and evaluation of inventories of the enterprise is carried out. The marketing-logistic approach was applied for the purpose of distribution groups of commodity resources due to the risk of non-fulfillment the order for the supply of goods of the enterprise. In order to ensure an effective process of commodity provision of the (...) enterprises, the costs associated with the formation of inventories are determined. The formalized scheme of the formation commodity provision and the process of optimization inventory of the enterprise is offered. The analysis the structure of the company’s inventory is carried out, the volume of goods turnover is defined, the stocks are grouped for various clustering characteristics. To conduct the study, statistical information was used on commodity resources of the enterprises, statistical methods (grouping, structure analysis, estimation of dynamic series), tools for assessing the efficiency of inventory use, HML-FMR clustering were used. The necessity of using XYZ and ABC analysis is indicated in order to obtain more reliable results and forecast values of the product support of the enterprise. Economic-mathematical modeling is applied and graphically shown the difference in the formation of commodity resources by various features of HML-FMR clustering. The calculations allow the enterprise to determine the optimal amount of commodity resources in accordance with the needs of consumers and their solvent demand, to plan financial resources for the formation of inventories, to develop assortment policy in accordance with demand for products and their implementation. The results of calculations the volume of merchandising of the enterprise, taking into account the HML-FMR clustering affect the formation of final financial performance of the enterprise — income and profits. (shrink)

En el mundo actual se muestra preocupación por los grandes problemas que enfrentan los sistemas económicos. El libre mercado ha demostrado ser eficiente pero no completamente exitoso en satisfacer verdaderamente al hombre en bienestar y bienser. Se presentan argumentos en favor de la economía de mercado en relación con la colectivista, pero se llega a afirmar que la concepción del hombre dentro de la primera tiene que completarse: verlo en sus facetas individual, social, material y espiritual. Por último, se propone (...) adoptar esa visión completa en el análisis económico a través de cuatro medidas concretas. (shrink)

Economists usually assume that rational actions are the ones motivated by a self-interested agent. However in our daily life we often see people doing altruistic actions which we praise and which we do not call irrational. How can we account for this paradox? This question and the tension underlying it, is at the heart of Philip Pettit’s classic essay, “The Virtual Reality of Homo Economicus” (1995). This dissertation constitutes a detailed analysis and evaluation of the claims that Pettit makes there, (...) in particular his original proposal of reconciliation between economic science and common sense, and the role that self-interest occupies in his model. Despite its importance, there are still few written commentaries or critiques of Pettit’s essay (1995). Among the few, most concentrate on the thesis of resilience explanation that Pettit presents at the end of the essay. What is lacking in the literature is a thorough examination of the central claim that Pettit makes there, and which gives the title to his essay: namely, the thesis of the "virtual self-interested control". In my view, this constitutes one of the most sophisticated defences of the assumption of self-interest in rational choice theory and economics. Therefore, it is surprising that it has not been subjected to more discussion, and published research. In section 1, present some of the central concepts of rational choice theory and economics, namely the homo economicus. In section 2, I introduce Pettit’s model, and then evaluate in which sense it is a plausible model to explain the behaviour in non-market contexts. Section 3 presents my criticism of the shortcomings of the model. (shrink)

The preconditions and features of the formation of post-industrial society are defined in the article. The distinctive role of active innovation infrastructure of the country in integrating into the European community and society based on knowledge are proved. The characteristic features of the economy of post-industrial society are the increasing role of intangible resources in ensuring social reproduction, “softization” and “servization” the subjects of innovation infrastructure. The essence of economic category “innovation infrastructure“ is defined in the article. It is a (...) dynamic self-regulating system of markets and subjects that entering these markets in certain economic relations and it provides the necessary conditions for implementation of the innovation processes. Mechanism of functioning of the constituent elements of innovation infrastructure in market economy is proposed, relationships between them are defined. (shrink)

In 2001 soon after the Asian Crises of 1997-1998, the DotcomBubble, 9/11, the Enron crises triggered a fraud crisis in Wall Street that impacted the market to the core. Since then scandals such as the Lehman Brothers and WorldCom in 2007-2008 and the Great Recession have surpassed it, Enron still remains one of the most important cases of fraudulent accounting. In 2000’s even though the financial industry had become highly regulated, deregulation of the energy industry allowed companies to place bets (...) on future prices. At the peak of the dotcom bubble Enron was named as a star innovator but when the dotcom bubble burst, Enron’s plan to build high speed internet did not flourish and investors started to realize losses. Furthermore, the financial losses of the operations were hid using the market to market accounting technique instead of book value and using special purpose entities to hide debt. The root cause that was identified as a company with a toxic corporate culture focused on officer compensation rather than social responsibility and hence faulty leadership. Is it possible then that; ethical accounting practices, social responsibility and ethics all become inferior goods as income rises in an ‘irrationally exuberant’era? (shrink)

The credit crises experienced in the US in year 2008 is labeled as perhaps the most significant crises since the great depression. The roots of the crises were found in the default of the sub-prime mortgages and the failure occurred in both the US and the UK. Due to the integrated nature of international financial systems the spillover impacted many countries as the economies in Asia and Europe were purchasers of the sub-prime mortgages that originated in both UK and US. (...) The impact of the credit crises in Canada is of unique importance due to the close proximity to US, and both the US and Canada being of great strategic importance to each other as well as one of the largest trading partners.Even though the international financial credit crises adversely impacted many countries, the evidence that has come across recent years point towards the conclusion that Canada was able to weather the crises much better than many other countries. (shrink)

This introduction provides a re-reading of Luigi Einaudi’s "On Abstract and Historical Hypotheses and on Value Judgments in Economic Sciences", focusing on how Einaudi conceived the relationship among economics, the humanities and values. In particular, its aim is: (§ 1) to explain the reasons why this essay can be considered a confession of a humanist-economist who constantly stepped “beyond the hedge of the garden reserved to the economist”; (§ 2) to clarify the nature of one of the main doubts that (...) Einaudi had concerning the issue of value judgments, with specific reference to the problem of entanglement of fact and value; (§ 3) to cast further light on why, at the end of his life, Einaudi claimed: “I proudly place economic disciplines within the humanities”. (shrink)

Externalities are an important concept in economic theories of market failure, aiming to justify state regulation of the economy. This article explores the concept of externalities from a philosophical perspective. It criticizes the utilitarian nature of economic analyses of externalities, showing how they cannot take into account values like freedom and justice. It then develops the analogy between the concept of externalities and the 'harm principle' in political philosophy. It argues that the harm principle points to the need for a (...) theory of basic interests to judge when a harm is imposed. Similarly, externality analyses should use such a theory of basic interests as the basis for judgments about legitimate state intervention. This proposal is defended against objections, and illustrated with a case study of the US Supreme Court's ruling on the Affordable Care Act, which shows how the judicial reasoning implicitly interprets externalities in terms of basic interests. (shrink)

Building on the system of reason provided for by the Greek philosopher and specifically Aristotle, St. Thomas Aquinas built a comprehensive system and theory of natural law which has lasted through the ages. The theory was further developed in the Middle Ages and in the Enlightenment Ages by many a prominent philosopher and economist and has been recognized in the Modern Age. The natural law-theory and system has been repeatedly applied to the spheres of economic thought and has produced many (...) lasting contributions such as private property rights and individual rights. In recent times with the collapses of the financial system and rapid globalization, there has been a renewed interest in the application of natural law theory to economics to counter a certain anthropology and distortion of values created by a modern economic system of selfpreservation deriving its insights from the philosophies of Thomas Hobbes and Niccolo Machiavelli. (shrink)

At the paper the dynamics of the development of the services market in Ukraine and its structure are analized. The influence of global economic processes on the services market has been studied. The concepts of "services" and "outsourcing" are characterized. Attention is paid to the development of services in the field of informatization and consulting. The main functions of information and consulting services in agriculture are defined. The purpose of the paper is to study and analyze the current state of (...) the Ukrainian market of services, its structure and dynamics of development, the definition of the dominant sectors of the market of services, as well as substantiation of the possibilities of using professional advisory services in agriculture. (shrink)

The authors of the book have come to the conclusion that it is necessary to effectively use modern approaches the management of innovative development the economic entities in order to increase the efficiency of activity, to ensure competitiveness, to intensify innovation activity. Basic research focuses on assessing the innovation processes, the fourth generation of new industrial revolution, diagnosis of sources of innovation financing, assessment of social innovations. The research results have been implemented in the different models of development innovation management, (...) renewable energy, introduction of start-up projects and lifelong learning. The results of the study can be used in decision-making at the level the economic entities in different areas of activity and organizational-legal forms of ownership, ministries and departments that promote of development the economic entities on an innovative basis. The results can also be used by students and young scientists in modern concepts and mechanisms for management of innovative development the economic entities in the context of efficient use the resource potential and improvement of innovation policy. (shrink)

A short presentation of James Steuart's neglected philosophical publications as well as of his well-known economic contribution.

Workplace democracy is often advocated on two intertwined views. The first is that the authority relation of employee to firm is akin to that of subject to state, such that reasons favoring democracy in the state may likewise apply to the firm. The second is that, when democratic controls are absent in the workplace, employees are liable to objectionable forms of subordination by their bosses, who may then issue arbitrary directives on matters ranging from pay to the allocation of overtime (...) and to relocation and promotion. Daniel Jacob and Christian Neuhäuser have recently submitted these views to careful criticism. They argue that the parallel between firms and states is unwarranted. For, unlike managerial authority, state authority is final. The state grants firms their legal status and subjects their authority to its regulations, which citizens in democracies already control. And they also argue that suitable workplace regulation alongside meaningful exit options may suffice to prevent, with no need for democratization, objectionable forms of workplace subjection. Neither view offers, they resolve, compelling reasons to believe that justice requires that firms be democratic. I here inspect these criticisms in turn, and offer reasons for skepticism. (shrink)

The principle that people's lives and fundamental interests are of equal value and that they must therefore be given equal weight has immense intellectual appeal and intuitive force. It is often enough to discredit a theory or proposal simply to show that it violates this principle. When measures are said to be discriminatory or unfair it is this principle which is in play. Recent philosophers of widely differing schools and outlooks give versions of this principle a central role in their (...) theories. (shrink)

In days gone by, when we had something called Rapid Economic Growth, we used to worry about it. We worried especially about its social costs and its technical limits. If growth meant gearing people to efficient production, we would have to be geographically and socially mobile. That threatened our old ways of community life, with their neighbourhood values and extended families. There were more obvious costs too, like chemicals in the air and highways through the landscape. Furthermore, the cornucopia need (...) not be bottomless. To sustain its effusions, nature might have to be pillaged until we ran out of trees or oil. Technology might hit bottlenecks so severe that costs began to outrun benefits. That would mean thwarting the new expectations which economic growth had aroused and which were its motivating force. But, for all that, our island race faced the horrors of affluence, abundance and goodies for all with a stiff upper lip. (shrink)

ZusammenfassungDie Frage nach der Gerechtigkeit im Gesundheitswesen wird aus der Perspektive einer allgemeinen Theorie der Gerechtigkeit betrachtet. Diese Theorie ist ein Befähigungsansatz, der zwischen 1) der Grundversorgung aller Bürger mit Grundbefähigungen, 2) einem gerechten Anteil an den Früchten gesellschaftlicher Kooperation und 3) individuell erstrebten Gütern und Leistungen differenziert. Die Anwendung dieser Theorie reagiert auf charakteristische Probleme der Allokation im Gesundheitssektor: den prinzipiell ungedeckten Bedarf, die mangelnde Zurechenbarkeit des Bedarfes und die asymmetrische Informationsstruktur zwischen Patienten und Leistungserbringern.

Michael Sandel’s latest book is not a scholarly work but is clearly intended as a work of public philosophy—a contribution to public rather than academic discourse. The book makes two moves. The first, which takes up most of it, is to demonstrate by means of a great many examples, mostly culled from newspaper stories, that markets and money corrupt—degrade—the goods they are used to allocate. The second follows from the first as Sandel’s proposed solution: we as a society should deliberate (...) together about the proper meaning and purpose of various goods, relationships, and activities (such as baseball and education) and how they should be valued. -/- Public philosophy is a different genre from academic philosophy, but that does not mean that it cannot be held to high standards. In my view, while this book does provide food for thought and food for conversation, it nevertheless has significant failings as a work of public philosophy rather than journalistic social activism on the model of Naomi Klein’s No logo (1999). (shrink)

Consistindo em um processo ético-jurídico de deliberação coletiva, o que se impõe à manifestação da Vontade Geral como um fenômeno histórico-cultural é a condição de imanência que a caracteriza em um movimento dinâmico-dialético que demanda uma formação econômico-social que possibilite a emergência de valores e práticas, condutas e comportamentos, necessidades e objetivos que, tendo como fundamento o interesse comum, se lhe correspondam, convergindo para uma forma de autodeterminação que guarda possibilidade de promover a superação da alienação das capacidades humanas no (...) contexto das relações socioprodutivas, a saber, a autogestão. Tal experiência social de autodeterminação coletiva, conforme assinala o artigo, envolve tanto a esfera política quanto o âmbito econômico e encerra a noção que implica desde a igualdade substancial até a efetiva participação política, sobrepondo-se ao viés mercadológico da organização econômico-social vigente e à estrutura burocrática corporificada pelo Estado no sistema capitalista. (shrink)

Although, according to the Austrian school, economic competition, since it pushes entrepreneurs to innovations that benefit not only themselves but consumers as well, is supposed to lead to the public good, it is essential to consider also the possibility of cartel formation. In this case a mechanism is set up whereby the prices of goods and services are kept artificially high. The article shows that it is the same entrepreneurial spirit celebrated by the Austrian school that makes that in certain (...) situations, whose logic can be analyzed according to the model of the prisoner’s dilemma, companies agree to keep prices high. The conclusion is that the public good can only be realized through institutional interventions with both legal and ethical dimensions. (shrink)