Microeconomics

I criticise, from a critical rationalist perspective, Israel Kirzner's notion of entrepreneurial alertness and Matthew McCaffrey's endorsement of Joseph Salerno's rival account of entrepreneurial judgment.

The fail-safe makes sure the fee is high enough to meet carbon emission reduction targets. The safeguard keeps the fee from getting any higher than needed. -/- One of the ways that we could account for the unpredictability of the price elasticity of demand for carbon would be to provide a fail-safe mechanism to ensure that we definitely stay on the carbon reduction schedule. If we keep Energy Innovation Act (HR 763) essentially as it is and scale up the annual (...) carbon fee increase by Number-of-Years-Behind-Schedule * 0.15. (shrink)

We investigate the conflict between the ex ante and ex post criteria of social welfare in a new framework of individual and social decisions, which distinguishes between two sources of uncertainty, here interpreted as an objective and a subjective source respectively. This framework makes it possible to endow the individuals and society not only with ex ante and ex post preferences, as is usually done, but also with interim preferences of two kinds, and correspondingly, to introduce interim forms of the (...) Pareto principle. After characterizing the ex ante and ex post criteria, we present a first solution to their conflict that extends the former as much possible in the direction of the latter. Then, we present a second solution, which goes in the opposite direction, and is also maximally assertive. Both solutions translate the assumed Pareto conditions into weighted additive utility representations, and both attribute to the individuals common probability values on the objective source of uncertainty, and different probability values on the subjective source. We discuss these solutions in terms of two conceptual arguments, i.e., the by now classic spurious unanimity argument and a novel informational argument labelled complementary ignorance. The paper complies with the standard economic methodology of basing probability and utility representations on preference axioms, but for the sake of completeness, also considers a construal of objective uncertainty based on the assumption of an exogeneously given probability measure. JEL classification: D70; D81. (shrink)

The authors of the book have come to the conclusion that toensuring the country’s security in the conditions of military aggression, it is necessary to use the mechanisms of protection of territories and population, support of economic entities, international legal levers of influence on the aggressor country. Basic research focuses on assessment the resource potential of enterprises during martial law, the analysis of migration flows in the middle of the country and abroad, the volume of food exports, marketing and logistics (...) system. The research results have been implemented in the different decision-making models during martial law, information and economic security management, formation of personnel potential and assets of enterprises, food, energy and environmental security management, use of budgetary levers and financial instruments. The results of the study can be used in the developing of directions, programs and strategies for the post-war recovery of Ukraine’s economy and the attraction of foreign investments in the regions, decision-making at the level of ministries and agencies that regulate security management processes. The results can also be used by students and young scientists in the educational process and conducting scientific research on the problems of ensuring the country’s security. (shrink)

The proposal on offer is a radical form of egalitarianism. Under it, each citizen receives the same income, regardless of profession or indeed whether he or she works or not. This proposal is bad for two reasons. First, it is inefficient. It would eliminate nearly all incentive to work, thereby shrinking national income and leaving all citizens poorly off (albeit equally poorly off). I illustrate this inefficiency via an indifference curve analysis. Second, the proposal would be regarded as unjust by (...) almost everyone. The empirical work on justice makes this plain. Equal pay for equal work is desirable; equal pay no matter what is something else entirely. It is an idea not likely to find adherents. (shrink)

The entire world community, since 2019, affected by the global pandemic COVID-19. The pandemic caused by this virus, led not only to significant human losses worldwide, but also imposed significant restrictions on the socio-cultural life of the population and radically changed the trends of the global economy and the further functioning of socio-economic systems. Now, huge economic losses have been recorded, which affected almost all sectors of the national economy and the state in the short, medium and long term. However, (...) it is important to consider individual economic development forecasts and measures developed by the governments of the world’s leading countries to overcome the negative effects of the COVID-19 pandemic. This will allow to form a real vision of the possible course of economic processes that will directly affect the living standards of the population and the restoration of socio-economic systems. To further restore the socio-economic system it is necessary to developing modern strategies and forecasts to ensure the effective functioning of economic entities through innovation, digitalization, marketing and use of competitive advantages in the consumer markets in conditions of limited resources, development promising sectors of the national economy, etc. The purpose of writing this scientific monograph is to substantiate the theoretical and methodological foundations, the formation new strategies for restoring socio-economic systems and overcoming the negative consequences of the caused by the COVID-19 pandemic, taking into account changes and challenges in the modern world. The object of the authors’ research is the process of forming new approaches, strategies and mechanisms for managing socio-economic systems in the context of the COVID-19 pandemic, eliminating the negative consequences in the activities of economic entities. The subject of research is socio-economic, organizational and institutional processes of formation and effective implementation of approaches, strategies and mechanisms for managing socio-economic systems; stabilization of the functioning of economic entities; introduction of innovative processes and digital technologies; implementation of best practices in the managing of socio-economic systems using world experience in various sectors of the economy caused by the COVID-19 pandemic. (shrink)

The monograph is devoted to the scientific substantiation of theoretical and methodological postulates of the integrated reporting formation and development of practical recommendations for definition and disclosure of the integrated reporting items. Preconditions of the integrated reporting genesis are defined, which include institutional theory development and institutional investors emergence, whose activities are based on the following principles: socially responsible investment; movement of Ukraine to the European Union; increasing the requirements for the disclosure of accounts by stock exchanges; international cooperation in (...) ecological safety issues; modern information and communication technologies development. An overview of the basic foundations of the integrated reporting compilation is presented, difficulties of its formation and popularization among Ukrainian companies are revealed. Perspective directions of activity on the integrated reporting implementation in Ukraine are determined. Recommended for managers, academics, graduate and undergraduate students of economic specialties. (shrink)

Economic theory is the science that studies the actions of people in the process of choosing rare resources for the production, exchange, distribution and consumption of goods and services. Economic theory is a science that studies the laws of development of the economic system arising from the production and appropriation of goods and services in all spheres of social reproduction, as well as those aspects of the evolution of the national consciousness of the spirit of the people, its culture, psychology, (...) morality and behavior that affect the process economy. (shrink)

The monograph is devoted to the scientific substantiation of theoretical and methodological postulates of the integrated reporting formation and development of practical recommendations for definition and disclosure of the integrated reporting items. Preconditions of the integrated reporting genesis are defined, which include institutional theory development and institutional investors emergence, whose activities are based on the following principles: socially responsible investment; movement of Ukraine to the European Union; increasing the requirements for the disclosure of accounts by stock exchanges; international cooperation in (...) ecological safety issues; modern information and communication technologies development. An overview of the basic foundations of the integrated reporting compilation is presented, difficulties of its formation and popularization among Ukrainian companies are revealed. Perspective directions of activity on the integrated reporting implementation in Ukraine are determined. (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)

由于金蒂斯是一位资深经济学家,而且我饶有兴趣地阅读了他的一些以前的书,所以我期待对行为有更多的见解。可悲的是,他把群体选择和现象学的死手变成了他行为理论的核心,这在很大程度上使工作无效。更糟糕的是,由 于他在这里表现出了如此糟糕的判断,这就使他对以前的所有工作都提出了质疑。几年前,他在哈佛、诺瓦克和威尔逊的朋友试图重新选择团体,这是过去十年中生物学领域的重大丑闻之一,我在《利他主义、耶稣和世界末日》 一文中讲述了这个悲惨的故事——邓普顿·福 foundation 买下了哈佛大学教授职位,攻击了进化、理性和文明——对E.O.威尔逊的《地球的社会征服》(2012年)和诺瓦克和高菲尔德"超级合作者"(2012年)的回顾。与诺瓦克不同,金提人似乎并 非出于宗教狂热,而是强烈希望为人性的严峻现实创造一种替代方案,而(几乎普遍)缺乏对人类基本生物学的理解和空白石板主义的使之变得容易。行为科学家、其他学者和一般公众。 Gintis正确地攻击(正如他以前多次)经济学家、社会学家和其他行为科学家没有一个连贯的框架来描述行为。当然,理解行为所需的框架是一个进化的框架。不幸的是,他未能提供一个自己(根据他的许多批评家,我同 意),并试图嫁接腐烂的尸体的群体选择到任何经济和心理理论,他在他的几十年的工作,只是使他的整个项目无效。 虽然金蒂斯勇敢地努力去理解和解释遗传学,比如威尔逊和诺瓦克,但他远非专家,和他们一样,数学只是使他看不到生物学上的不可能性,当然这是科学的常态。正如维特根斯坦在《文化与价值》第一页中著名的指出的那样: "没有宗教派别滥用形而上学的表达方式像在数学中那样造成如此多的辛德。 一直很清楚,导致行为降低其自身频率的基因不能持久,但这是群体选择概念的核心。此外,众所周知,并经常证明,群体选择只是减少到包容性健身(亲属选择),正如道金斯指出,这只是另一个名字进化的自然选择。和威尔 逊一样,金蒂斯在这个舞台上工作了大约50年,但至今还没有掌握,但是丑闻爆发后,我只用了3天时间就找到、阅读和理解了最相关的专业工作,就像我的文章所详述的。想到金蒂斯和威尔逊在近半个世纪里未能实现这一点 ,这令人费解。 我讨论了群体选择和现象学的错误,这是学术界的常态,是几乎普遍不理解正在毁灭美国和世界的人性的特殊情况。 那些希望从现代两个系统的观点来看为人类行为建立一个全面的最新框架的人,可以查阅我的书《路德维希的哲学、心理学、Min d和语言的逻辑结构》维特根斯坦和约翰·西尔的《第二部》(2019年)。那些对我更多的作品感兴趣的人可能会看到《会说话的猴子——一个末日星球上的哲学、心理学、科学、宗教和政治——文章和评论2006-20 19年第3次(2019年)和自杀乌托邦幻想21篇世纪4日 (2019) .

चूंकि Gintis एक वरिष्ठ अर्थशास्त्री है और मैं ब्याज के साथ अपने पिछले पुस्तकों में से कुछ पढ़ा है, मैं व्यवहार में कुछ और अंतर्दृष्टि की उम्मीद कर रहा था. अफसोस की बात है, वह समूह चयन और phenomenology के मृत हाथ व्यवहार के अपने सिद्धांतों के centerpieces में बनाता है, और यह काफी हद तक काम अमान्य. इससे भी बदतर, क्योंकि वह इस तरह के बुरे निर्णय यहाँ से पता चलता है, यह सवाल अपने पिछले काम में कहता है. (...) हार्वर्ड, Nowak और विल्सन, कुछ साल पहले में अपने दोस्तों द्वारा समूह चयन पुनर्जीवित करने का प्रयास पिछले दशक में जीव विज्ञान में प्रमुख घोटालों में से एक था, और मैं अपने लेख 'Altruism, यीशु और दुनिया के अंत में दुखद कहानी सुनाई है कैसे टेम्पलटन फू एक हार्वर्ड प्रोफेसरशिप खरीदा है और विकास, तर्कसंगतता और सभ्यता पर हमला किया - ईओ विल्सन 'पृथ्वी के सामाजिक विजय' (2012) और Nowak और Highfield 'SuperCooperators' (2012) की समीक्षा. Nowak के विपरीत, Gintis धार्मिक कट्टरता से प्रेरित नहीं लगता है, लेकिन मजबूत करने के लिए मानव प्रकृति की गंभीर वास्तविकताओं के लिए एक विकल्प उत्पन्न करने की इच्छा से, बुनियादी मानव जीव विज्ञान और खाली स्लेटिज्म की समझ की कमी (के पास सार्वभौमिक) द्वारा आसान बना दिया व्यवहार वैज्ञानिकों, अन्य शिक्षाविदों, और आम जनता. Gintis ठीक हमलों (जैसा कि वह पहले कई बार किया है) अर्थशास्त्री, समाजशास्त्रियों और अन्य व्यवहार वैज्ञानिकों के व्यवहार का वर्णन करने के लिए एक सुसंगत रूपरेखा नहीं होने के लिए. बेशक, व्यवहार को समझने के लिए आवश्यक ढांचा एक विकासवादी है। दुर्भाग्य से, वह एक खुद को प्रदान करने में विफल रहता है (अपने कई आलोचकों के अनुसार और मैं सहमत), और जो कुछ भी आर्थिक और मनोवैज्ञानिक सिद्धांतों वह काम के अपने दशकों में उत्पन्न किया है पर समूह चयन के सड़े शव कलम करने का प्रयास, केवल अपनी पूरी परियोजना को अमान्य करता है। हालांकि Gintis एक बहादुर को समझने और आनुवंशिकी की व्याख्या करने का प्रयास करता है, विल्सन और Nowak की तरह, वह एक विशेषज्ञ से दूर है, और उन्हें पसंद है, गणित सिर्फ उसे जैविक असंभव के लिए अंधा कर देता है और निश्चित रूप से यह विज्ञान में आदर्श है. के रूप में Wittgenstein प्रसिद्ध संस्कृति और मूल्य के पहले पृष्ठ पर उल्लेख किया "कोई धार्मिक संप्रदाय है जिसमें आध्यात्मिक अभिव्यक्ति का दुरुपयोग इतना पाप के लिए जिम्मेदार है के रूप में यह गणित में है." यह हमेशा क्रिस्टल स्पष्ट किया गया है कि एक जीन है कि व्यवहार का कारण बनता है जो अपनी आवृत्ति कम हो जाती है जारी नहीं रख सकते हैं, लेकिन यह समूह चयन की धारणा का मूल है. इसके अलावा, यह अच्छी तरह से जाना जाता है और अक्सर प्रदर्शन किया गया है कि समूह चयन सिर्फ समावेशी फिटनेस को कम कर देता है (किन चयन), जो, के रूप में Dawkins उल्लेख किया है, सिर्फ प्राकृतिक चयन द्वारा विकास के लिए एक और नाम है. विल्सन की तरह, Gintis के बारे में 50 साल के लिए इस क्षेत्र में काम किया है और अभी भी यह समझ में नहीं आया है, लेकिन बाद घोटाले तोड़ दिया, यह मुझे केवल 3 दिन लग गए खोजने के लिए, पढ़ने और सबसे प्रासंगिक पेशेवर काम समझ, के रूप में मेरे लेख में विस्तृत. यह महसूस करने के लिए मन boggling है कि Gintis और विल्सन लगभग आधी सदी में यह पूरा करने में असमर्थ थे. मैं समूह चयन और phenomenology की त्रुटियों पर चर्चा है कि निकट सार्वभौमिक विफलता के विशेष मामलों के रूप में शिक्षा के क्षेत्र में आदर्श हैं मानव प्रकृति है कि अमेरिका और दुनिया को नष्ट कर रहे हैं समझने के लिए. आधुनिक दो systems दृश्यसे मानव व्यवहार के लिए एक व्यापक अप करने के लिए तारीख रूपरेखा इच्छुक लोगों को मेरी पुस्तक 'दर्शन, मनोविज्ञान, मिनडी और लुडविगमें भाषा की तार्किक संरचना से परामर्श कर सकते हैं Wittgenstein और जॉन Searle '2 एड (2019). मेरे लेखन के अधिक में रुचि रखने वालों को देख सकते हैं 'बात कर रहेबंदर- दर्शन, मनोविज्ञान, विज्ञान, धर्म और राजनीति पर एक बर्बाद ग्रह --लेख और समीक्षा 2006-2019 3 एड (2019) और आत्मघाती यूटोपियान भ्रम 21st मेंसदी 4वें एड (2019) . (shrink)

Gintisはシニアエコノミストで、私は興味を持って彼の以前の本のいくつかを読んだので、私は行動にいくつかのより多くの洞察を期待していました。悲しいことに、彼はグループ選択と現象学の死んだ手を行動理論 の中心にし、これは主に仕事を無効にします。さらに悪いことに、彼はここでそのような悪い判断を示しているので、それは彼のすべての前の仕事に疑問を呼びかけます。ハーバード大学で彼の友人によるグループ選択を復 活させようとする試みは、 ノワクとウィルソンは、数年前に生物学の主要なスキャンダルの一つであり、私は私の記事「利他主義、イエスと世界の終わり--テンプルトン財団がハーバード大学教授職を買収し、進化、合理性と文明を攻撃した方法- E.O.ウィルソンのレビュー」(2012年)とノワクとスーパーフィールド(2012)で悲しい話を述べました。ノワクとは異なり、ギンティスは宗教的狂信によって動機づけられているようには見えないが、基本的 な人間の生物学と行動科学者、他の学者、および一般市民の空白のスレート主義の(ほぼ普遍的な)理解の欠如によって容易になった人間性の厳しい現実に代わるものを生み出したいという強い願望によって。 ギンティスは、行動を記述するための一貫した枠組みを持っていないために、エコノミスト、社会学者、その他の行動科学者を正しく攻撃します。もちろん、行動を理解するために必要なフレームワークは進化的なものです 。残念ながら、彼は自分自身を提供することができず(彼の多くの批評家と私は同意します)、彼が何十年もの仕事で生み出した経済的、心理的理論にグループ選択の腐った死体を移植しようとする試みは、単に彼のプロジ ェクト全体を無効にします。 Gintisはウィルソンやノワクのような遺伝学を理解し、説明するために勇敢な努力をしていますが、彼は専門家から遠く離れており、彼らのように、数学は生物学的不可能に彼を盲目にし、もちろんこれは科学の標準 です。ヴィトゲンシュタインが文化と価値の最初のページで有名に指摘したように、「形而上学的表現の誤用が数学ほど多くの罪を引き起こし続けている宗教的宗派はありません。 自らの頻度を低下させる行動を引き起こす遺伝子は持続できないことは常に明らかでしたが、これはグループ選択の概念の中核です。さらに、グループの選択は、ドーキンスが指摘したように、自然選択による進化のもう一 つの名前である包括的なフィットネス(親族選択)に減少することがよく知られており、しばしば実証されています。ウィルソンのように、Gintisは約50年間この分野で働いてきましたが、スキャンダルが起こった 後、私の記事に詳述されているように、最も関連性の高い専門的な仕事を見つけ、読み、理解するのに3日しかかかりませんでした。ギンティスとウィルソンが半世紀近くでこれを達成できなかったことに気づくのは気が遠 くなる。 アメリカと世界を破壊している人間性を理解する普遍的な失敗の特別なケースとして、アカデミアで当たり前であるグループ選択と表現論の誤りについて議論します。 現代の2つのシス・エムスの見解から人間の行動のための包括的な最新の枠組みを望む人は、私の著書「ルートヴィヒ・ヴィトゲンシュタインとジョン・サールの第2回(2019)における哲学、心理学、ミンと言語の論 理的構造」を参照することができます。私の著作の多くにご興味がある人は、「話す猿--運命の惑星における哲学、心理学、科学、宗教、政治--記事とレビュー2006-2019第3回(2019)と自殺ユートピア 妄想21世紀4日(2019))を参照してください。 .

The authors of the book have come to the conclusion that it is necessary to effectively use modern approaches to developing and implementation strategies of sustainable socio-economic development in order to increase efficiency and competitiveness of economic entities. Basic research focuses on economic diagnostics of socio-economic potential and financial results of economic entities, transition period in the economy of individual countries and ensuring their competitiveness, assessment of educational processes and knowledge management. The research results have been implemented in the different (...) models and strategies of supply and logistics management, development of non-profit organizations, competitiveness of tourism and transport, financing strategies for small and medium-sized enterprises, cross-border cooperation. 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 the basis of models and strategies for sustainable socio-economic development. The results can also be used by students and young scientists in modern concepts and mechanisms for management of sustainable socio-economic development of economic entities in the condition of global economic transformations and challenges. (shrink)

In this paper, I examine the decision-theoretic status of risk attitudes. I start by providing evidence showing that the risk attitude concepts do not play a major role in the axiomatic analysis of the classic models of decision-making under risk. This can be interpreted as reflecting the neutrality of these models between the possible risk attitudes. My central claim, however, is that such neutrality needs to be qualified and the axiomatic relevance of risk attitudes needs to be re-evaluated accordingly. Specifically, (...) I highlight the importance of the conditional variation and the strengthening of risk attitudes, and I explain why they establish the axiomatic significance of the risk attitude concepts. I also present several questions for future research regarding the strengthening of risk attitudes. (shrink)

This paper examines the preference-based approach to the identification of beliefs. It focuses on the main problem to which this approach is exposed, namely that of state-dependent utility. First, the problem is illustrated in full detail. Four types of state-dependent utility issues are distinguished. Second, a comprehensive strategy for identifying beliefs under state-dependent utility is presented and discussed. For the problem to be solved following this strategy, however, preferences need to extend beyond choices. We claim that this a necessary feature (...) of any complete solution to the problem of state-dependent utility. We also argue that this is the main conceptual lesson to draw from it. We show that this lesson is of interest to both economists and philosophers. (shrink)

In the present article, attention is focused on the existing potential to ensure national self-sufficiency, the main challenges to its achievement and future prospects. According to the authors, transportation and communication system of the country can become the dominant model for self-sufficient development, due to its geostrategic location which allows it to be an advantageous bridge for goods, and passengers transit transportation between the states of Europe, Asia and the Middle East. To date, the transport and communication system is hardly (...) the only sector of national economy, which is capable to become the catalyst for socio-economic growth without significant investment, a tool to achieve self-sufficient and safe level of Ukraine's development. -/- У представленій статті акцентовано увагу на наявних потенційних можливостях забезпечення національної самодостатності, основні проблеми на шляху її досягнення і подальші перспективи. Домінантою моделі самодостатнього розвитку країни може стати транспортно-комунікативна система, яка в силу геостратегічного розташування дозволяє їй бути вигідним мостом для транзитних перевезень товарів і пасажирів між державами Європи, Азії і Близького Сходу. На сьогоднішній день транспортно-комунікативна система є чи не єдиним сектором національної господарської системи, який здатний без істотних капіталовкладень стати каталізатором соціально-економічного зростання, інструментом досягнення самодостатнього і безпечного рівня розвитку України. (shrink)

Стаття присвячена дослідженню питань формування нової стратегії самодостатнього розвитку транспортно- комунікативної системи України. Проаналізовано стратегічний документ «Транспортна стратегія України на період до 2020 р.» та виявлено низку недоліків. Було виокремлено недоліки стратегічного та методич- ного характеру. Окрему увагу автором приділено недосконалості системи стратегічних документів, які регулюють розвиток ТКС, відсутності деяких стратегій розвитку галузей ТКС, проблемам фінансування, а також проблемам, пов’язаним з цільовими програмами розвитку. Вказано на проблеми, пов’язані із структурним наповненням зазначеної стратегії. -/- Статья посвящена исследованию вопросов формирования новой стратегии (...) самодостаточного развития транспортно-коммуникативной системы Украины. Проанализирован стратегический документ «Транс- портная стратегия Украины на период до 2020 г.» и выявлен ряд недостатков. Были выделены недостатки стратегического и методического характера. Особое внимание автором уделено несовершенству системы стратегических документов, регулирующих развитие ТКС, отсутствию некоторых стратегий развития отраслей ТКС, проблемам финансирования, а также проблемам, связанным с целевыми программами развития. Указано на проблемы, связанные со структурным наполнением действующей стратегии. (shrink)

Economic pressures, mounting environmental, security and health requirements, are all critical factors that shape economic action. With regard to environmental protection, an economic entity acting as homo oeconomicus finds himself in a situation resembling a prisoner’s dilemma. Signposts for a possible resolution of this dilemma include an environmental management system, a system of environmental law based on the principles of environmental ethics, and a new conception of human nature.

Although moral hazard is a well-known economic concept, there is a long-standing controversy over its moral implications. The language economists use to describe moral hazard is often value-laden, and implies moral judgments about the persons or actions of economic agents. This in turn leads some to question whether it is actually a scientific concept, or simply a convenient tool for criticizing certain public policies. At present, there is no consensus about the moral meaning of moral hazard, or about whether the (...) concept can be salvaged by economists. As a first step toward resolving this problem, I suggest a contracts approach to moral hazard. I use the ‘title-transfer’ theory of contract to clarify the moral content of moral hazard, thereby increasing its value to scholars in numerous disciplines. A contracts view is useful for economic policy discussions because it does not include hidden value judgments. At the same time, however, it is also valuable for ethicists because it directly explains a moral dimension of behavior under moral hazard, namely, the violation of property rights. (shrink)

We reexamine some of the classic problems connected with the use of cardinal utility functions in decision theory, and discuss Patrick Suppes's contributions to this field in light of a reinterpretation we propose for these problems. We analytically decompose the doctrine of ordinalism, which only accepts ordinal utility functions, and distinguish between several doctrines of cardinalism, depending on what components of ordinalism they specifically reject. We identify Suppes's doctrine with the major deviation from ordinalism that conceives of utility functions as (...) representing preference differences, while being non- etheless empirically related to choices. We highlight the originality, promises and limits of this choice-based cardinalism. (shrink)

In Southeast Asian countries (SEA), road transport accounts for the main energy consumption and CO2 emission. Air pollution is a major concern in densely populated cities such as Bangkok, Manila, and Kuala Lumpur. The main objective of this paper is to give insights on trends of transport development, car ownership, and CO2 emissions in Southeast Asia. This study also attempts to review the successful transportation policies around the globe and to introduce the possible instruments that can help reduce air pollution (...) in Southeast Asian countries. Economic instruments to estimate the benefits of a cleaner environment due to new policies are introduced as well. The results of this research could help policy makers consider approaches that could internalize external costs of transportation and maximize the societal welfare. (shrink)

We introduce a “reason-based” framework for explaining and predicting individual choices. It captures the idea that a decision-maker focuses on some but not all properties of the options and chooses an option whose motivationally salient properties he/she most prefers. Reason-based explanations allow us to distinguish between two kinds of context-dependent choice: the motivationally salient properties may (i) vary across choice contexts, and (ii) include not only “intrinsic” properties of the options, but also “context-related” properties. Our framework can accommodate boundedly rational (...) and sophisticatedly rational choice. Since properties can be recombined in new ways, it also offers resources for predicting choices in unobserved contexts. (shrink)

In this article the author considers the essential connection between liberal individualism, reforms and initiativeness. The author shows that liberal individualism has nothing in common with robinsonade, egoism and narrow view upon the things. On the contrary, it sets free the initiativeness of people and makes them active in social, economic and civil spheres. Consequently, if Ukrainians want the decentralization in all the spheres of life, then it is necessarily to realize the ideas of classical liberalism: liberty, equality and justice. (...) For the western countries of the later capitalism it is the passed way. Therefore in the article the author also considers the obstacles and the perspectives of the realization of ideas’ classical liberalism in Ukraine. (shrink)

Financial sustainability of protected areas is one of the main challenges of management. Financial self-sufficiency is an important element in improving conservation effort in these areas. This study seeks to review best practices in recreational fee systems in different countries and to find a relevant entry fee for a wildlife sanctuary in Malaysia. The revenue of the National Elephant Conservation Center (NECC) in Kuala Gandah, Malaysia, comes from several sources, including the national government, but all these budgetary sources are strained (...) by tighter public budgets and greater demands. The present study investigates the introduction of visitor entrance fees to supplement an otherwise inadequate budget for supporting the operational costs of the sanctuary. Factor analysis and a double-bounded contingent valuation method were combined to estimate tourists' willingness to pay (WTP) the proposed entrance fee. Factor analysis showed that respondents' motivation to support the NECC with user fees is conditioned by their direct experiences with elephants, their satisfaction with NECC's educational programs and services, and other experiences it gives to users. The WTP model considered respondents' four motivation factors with their sociodemographic characteristics. Since NECC visitors arrive from both within and outside the country, this study suggests to center managers a two-tier fee structure (residents vs. nonresidents of Malaysia), based upon mean WTP estimates. This study further suggests that revenue from such an entrance fee for NECC could support the Center's management and development costs. © 2015 Elsevier B. (shrink)

F.A. Hayek argued that the sciences of complex phenomena, including (perhaps especially) economics, are limited to incomplete “explanations of the principle” and “pattern predictions.” According to Hayek, these disciplines suffer from (what I call) a data problem, i.e., the hopelessness of populating theoretical models with data adequate to full explanations and precise predictions. In Hayek’s terms, explanations in these fields are always a matter of “degree.” However, Hayek’s methodology implies a distinct theory problem: theoretical models of complex phenomena may be (...) underspecified so that, even were all the data available, a full explanation could not be inferred from the model. Where the sciences of complex phenomena are subject to both the data and theory problems, explanations and predictions will be of even lesser “predictive degree.” The paper also considers how to interpret Hayek’s claim that pattern predictions are falsifiable. (shrink)

In recent years, the project of providing microeconomic foundations for macroeconomics has taken on new urgency. Some philosophers and economists have challenged the project, both for the way economists actually approach microfoundations and for more general anti-reductionist reasons. Reductionists and anti-reductionists alike, however, have taken it to be trivial that the macroeconomic facts are exhaustively determined by microeconomic ones. In this paper, I challenge this supposed triviality. I argue that macroeconomic properties do not even globally supervene on microeconomic ones. This (...) is simply a consequence of the difference in the explanatory goals of the respective fields, which implicitly carve out the microeconomic property set in such a way that it underdetermines macroeconomic properties. It means, however, that microeconomics-based foundations for macroeconomics are inadequate in principle. (shrink)

Abstract: This paper examines Mark Blaug's position on the normative character of Paretian welfare economics: in general, and specifically with respect to his debate with Pieter Hennipman over this question during the 1990s. The paper also clarifies some of the confusions that emerged within the context of this debate, and closes by providing some additional arguments supporting Blaug's position that he himself did not provide.

Network theory is applied across the sciences to study phenomena as diverse as the spread of SARS, the topology of the cell, the structure of the Internet and job search behaviour. Underlying the study of networks is graph theory. Whether the graph represents a network of neurons, cells, friends or firms, it displays features that exclusively depend on the mathematical properties of the graph itself. However, the way in which graph theory is implemented to the modelling of networks differs significantly (...) across scientific fields. This article compares the economics variant of network theory with those of other fields. It shows how the methodology employed by economists to model networks is shaped by two explanatory desiderata: that the explanandum phenomenon is based on micro-economic foundations and that the explanation is general. (shrink)

Consider a sequence of outcomes of descending value, A > B > C >... > Z. According to Larry Temkin, there are reasons to deny the continuity axiom in certain ‘extreme’ cases, i.e. cases of triplets of outcomes A, B and Z, where A and B differ little in value, but B and Z differ greatly. But, Temkin argues, if we assume continuity for ‘easy’ cases, i.e. cases where the loss is small, we can derive continuity for the ‘extreme’ case (...) by applying the axiom of substitution and the axiom of transitivity. The rejection of continuity for ‘extreme’ cases therefore renders the triad of continuity in ‘easy’ cases, the axiom of substitution and the axiom of transitivity inconsistent.As shown by Arrhenius and Rabinowitz, Temkin's argument is flawed. I present a result which is stronger than their alternative proof of an inconsistency. However, this result is not quite what Temkin intends, because it only refers to an ordinal ranking of the outcomes in the sequence, whereas Temkin appeals to intuitions about the size of gains and losses. Against this background, it is argued that Temkin's trilemma never gets off the ground. This is because Temkin appeals to two mutually inconsistent conceptions of aggregation of value. Once these are clearly separated, it will transpire, in connection with each of them, that one of the principles to be rejected does not appear plausible. Hence, there is nothing surprising or challenging about the result; it is merely a corollary to Expected Utility Theory. View HTML Send article to KindleTo send this article to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle. Find out more about sending to your Kindle. Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply. Find out more about the Kindle Personal Document Service.UNACCEPTABLE RISKS AND THE CONTINUITY AXIOMVolume 28, Issue 1Karsten Klint Jensen DOI: https://doi.org/10.1017/S0266267112000107Your Kindle email address Please provide your Kindle [email protected]@kindle.com Available formats PDF Please select a format to send. By using this service, you agree that you will only keep articles for personal use, and will not openly distribute them via Dropbox, Google Drive or other file sharing services. Please confirm that you accept the terms of use. Cancel Send ×Send article to Dropbox To send this article to your Dropbox account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about sending content to Dropbox. UNACCEPTABLE RISKS AND THE CONTINUITY AXIOMVolume 28, Issue 1Karsten Klint Jensen DOI: https://doi.org/10.1017/S0266267112000107Available formats PDF Please select a format to send. By using this service, you agree that you will only keep articles for personal use, and will not openly distribute them via Dropbox, Google Drive or other file sharing services. Please confirm that you accept the terms of use. Cancel Send ×Send article to Google Drive To send this article to your Google Drive account, please select one or more formats and confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about sending content to Google Drive. UNACCEPTABLE RISKS AND THE CONTINUITY AXIOMVolume 28, Issue 1Karsten Klint Jensen DOI: https://doi.org/10.1017/S0266267112000107Available formats PDF Please select a format to send. By using this service, you agree that you will only keep articles for personal use, and will not openly distribute them via Dropbox, Google Drive or other file sharing services. Please confirm that you accept the terms of use. Cancel Send ×Export citation Request permission. (shrink)

This article discusses the rationality principle, especially in Popper's version, on the occasion of a commentary of Maurice Lagueux's book, Rationality and Explanation in Economics (2010).

The aim of this paper is twofold. First, we offer a methodological reflection on how the explanatory virtues of economic theories can be assessed in a systematic way. Second, we use that theoretical apparatus to study the explanatory virtues of Transaction Cost Economics (TCE, henceforth). Precisely, we are primarily interested in assessing the progress within TCE with respect to its explanatory power rather than directly comparing TCE’s explanatory virtues to alternative theories. The paper offers also some general insights into the (...) way we compare economic theories. (shrink)

This introduces the symposium on judgment aggregation. The theory of judgment aggregation asks how several individuals' judgments on some logically connected propositions can be aggregated into consistent collective judgments. The aim of this introduction is to show how ideas from the familiar theory of preference aggregation can be extended to this more general case. We first translate a proof of Arrow's impossibility theorem into the new setting, so as to motivate some of the central concepts and conditions leading to analogous (...) impossibilities, as discussed in the symposium. We then consider each of four possible escape-routes explored in the symposium. (shrink)

The term neoclassical economics delineates a distinct and relatively homogenous school of thought in economic theory that became prominent in the late nineteenth century and that now dominates mainstream economics. The term was originally introduced by Thorstein Veblen to describe developments in the discipline (of which Veblen did not entirely approve) associated with the work of such figures as William Jevons, Carl Menger, and Leon Walras. The ambition of these figures, the first neoclassicists, was to formalize and mathematize the subject (...) in the aftermath of the so-called marginalist revolution. Economics is, according to one definition, the science that studies human behavior as a relationship between ends and scarce means that have alternative uses. Neoclassical economics pursues this study by means of supply and demand models that determine prices based on the subjective preferences of producers and consumers. Neoclassical economics relies on subjective preferences for determining prices in order to escape from the so-called objective value theory of classical economics, according to which the value of goods could be established by reference to some basic commodity (usually corn) or the labor input required to produce a good. Neoclassicists hoped that by jettisoning objective value, economics could be placed on a more scientific basis as an essentially descriptive and predictive theory of human behavior. Political theory, by contrast, involves both positive and normative elements. It is a positive science to the extent to which it aims to describe and predict political behavior. It is a normative science to the extent to which it prescribes how agents should behave in the political arena and what the best political institutions are. Neoclassical economics is relevant to both of these elements. (shrink)

Economic theory has tended to reduce all social bonds and relations to forms of contract, whereas social theory has seen contracts as opposed to, and destructive of, genuine social bonds. Bruni sees these contrapositions as ideological (‘left’ against ‘right’, p. xi). His main goal is to overcome them; to show that three forms of reciprocity, covering the ideological spectrum from left to right, are complementary and simultaneously required in a healthy society. These three forms are, in his words: ‘(1) the (...) reciprocity of contract or ‘cautious’; (2) the reciprocity of friendship or philia and (3) the ‘unconditional’ reciprocity, the one more controversial . . .’ (p. x). (shrink)

The thesis of methodological individualism in social science is commonly divided into two different claims—explanatory individualism and ontological individualism. Ontological individualism is the thesis that facts about individuals exhaustively determine social facts. Initially taken to be a claim about the identity of groups with sets of individuals or their properties, ontological individualism has more recently been understood as a global supervenience claim. While explanatory individualism has remained controversial, ontological individualism thus understood is almost universally accepted. In this paper I argue (...) that ontological individualism is false. Only if the thesis is weakened to the point that it is equivalent to physicalism can it be true, but then it fails to be a thesis about the determination of social facts by facts about individual persons. Even when individualistic facts are expanded to include people’s local environments and practices, I shall argue, those still underdetermine the social facts that obtain. If true, this has implications for explanation as well as ontology. I first consider arguments against the local supervenience of social facts on facts about individuals, correcting some flaws in existing arguments and affirming that local supervenience fails for a broad set of social properties. I subsequently apply a similar approach to defeat a particularly weak form of global supervenience, and consider potential responses. Finally, I explore why it is that people have taken ontological individualism to be true. (shrink)

Al-Najjar and Weinstein propose to scrutinize the implications of recent theories of ambiguity in dynamic settings. They conclude that such implications are so unreasonable as to cast doubts on the legitimacy of the theories under consideration. The present paper argues that the seemingly unreasonable implications highlighted by Al-Najjar and Weinstein can be understood as the result of basic trade-offs that arise naturally in the presence of ambiguity. In particular, Al-Najjar and Weinstein are uncomfortable with the possibility that an ambiguity-averse individual (...) may reject freely available information; however, this phenomenon simply reflects a trade-off between the intrinsic value of information, which is positive even in the presence of ambiguity, and the value of commitment. (shrink)

Models treating the simple properties of social groups have a common shortcoming. Typically, they focus on the local properties of group members and the features of the world with which group members interact. I consider economic models of bureaucratic corruption, to show that (a) simple properties of groups are often constituted by the properties of the wider population, and (b) even sophisticated models are commonly inadequate to account for many simple social properties. Adequate models and social policies must treat certain (...) factors that are not local to individual members of the group, even if those factors are not causally connected to those individuals. Key Words: individualism • corruption • supervenience • model • cause. (shrink)

Minimum wages are usually assumed to be inefficient as they prevent the full exploitation of mutual gains from trade. Yet advocates of wage regulation policies have repeatedly claimed that this loss in market efficiency can be justified by the pursuit of ethical goals. Policy makers, it is argued, should not focus on efficiency alone. Rather, they should try to find an adequate balance between efficiency and equity targets. This idea is based on a two-worlds-paradigm that sees ethics and economics as (...) two inherently conflicting ways of thinking. We, however, believe that this view of the relationship between ethics and economics is fundamentally flawed and blurs our understanding of how an ethically responsible regulation of the labour market should be conducted. In drawing on an economic-ethical approach that resolves the antinomy between efficiency and equity, we show that ethics and economics are, in fact, two sides of the same coin and that minimum wage legislation can only be ethically responsible, if it is at the same time economically efficient. In other words, we can have our cake and eat it too. On the basis of our approach, we develop two simple game theoretical models for different types of labour markets and derive policy implications from an economic-ethical viewpoint. We suggest that under the assumption of perfectly competitive labour markets a tax-funded wage subsidy is preferable over minimum wages, as it makes everyone better off. If, however, employers have monopsony power in the wage setting process, the minimum wage is justifiable under certain conditions. (shrink)

This essay explores the detailed argument of the Coase Theorem, as found in Ronald Coase’s “The Problem of Social Cost” and subsequently defended by Coase in The Firm, the Market, and the Law. Fascination with the Coase Theorem arises over its apparently unassailable counterintuitive conclusion that the imposition of legal liability has no effect on which of two competing uses of land prevails, and also over the general difficulty in tying down an unqualified statement of the theorem. Instead of entering (...) the debate over what exactly the theorem holds, this article suggests that the core of Coase’s reasoning is flawed and to the extent that any version of the theorem relies upon this reasoning it can be disproved. It is further suggested that a version of the theorem which avoided the need for Coase’s core argument by focusing on “the efficiency thesis” at the expense of “the invariance thesis” would be insufficiently significant to merit the status of a theorem; and that, in any event, Coase’s reasoning does not sustain an efficient outcome. The heart of the essay comprises the allegation of an error made by Coase when he transferred his core argument to the context of economic rents. The essay commences by considering and modelling the nature of the counter-intuitive thrust to the Coase Theorem, which is used to trace the development of Coase’s reasoning, and ultimately to expose the flaw it contains. Ancillary observations are made on the relationship between the Coasean analysis of characteristically legal problems and the conditions of general market equilibrium, and the theoretical status of law-and-economics. (shrink)

Although general equilibrium theory originated in the late nineteenth century, modern elaboration and development of the theory began only in the 1930s and 1940s. This book focuses on the version of the theory developed in the second half of the twentieth century, referred to by Lionel McKenzie as the classical general equilibrium theory. McKenzie offers detailed and rigorous treatment of the classical model, giving step-by-step proofs of the basic theorems. In many cases he elaborates on the individual steps to give (...) a fuller understanding of the underlying principles. His goal is to provide readers with a true mastery of the methodology so that they can derive new results that will further enrich their thinking about general equilibrium theory. Special attention is given to the McKenzie model, in which it is not assumed that the number of firms is given but rather that technologies or activities are available to any agents who can supply the resources they require. The McKenzie model is used to establish the turnpike theorems of optimal and competitive capital accumulation. (shrink)

This article challenges the general thesis that an unconditional basic income, set at the highest sustainable level, is required for maximizing the income-leisure opportunities of the least advantaged, when income varies according to the responsible factor of labor input. In a linear optimal taxation model (of a type suggested by Vandenbroucke 2001) in which opportunities depend only on individual productivity, adding the instrument of a uniform wage subsidy generates an array of undominated policies besides the basic income maximizing policy, including (...) a “zero basic income” policy which equalizes the post-tax wage rate. The choice among such undominated policies may be guided by distinct normative criteria which supplement the maximin objective in various ways. It is shown that most of these criteria will be compatible with, or actually select, the zero basic income policy and reject the basic income maximizing one. In view of the model's limited realism, the force of this main conclusion is discussed both in relation to Van Parijs' argument for basic income in Real Freedom for All (1995) and to some key empirical conditions in the real world. Footnotes1 I am grateful for useful comments on various stages of this paper by Marc Fleurbaey, Susan Hurley, Mathias Hild, Dirk Van de gaer, Frank Vandenbroucke, Alex Voorhoeve, Roland van der Veen, Andrew Williams, Chris Woodard and an anonymous referee. Above all I thank Loek Groot for his contribution. The research has also been supported by the Netherlands Organization for Scientific Research (NWO), and the Social and Political Theory Program of the Research School of Social Sciences, Australian National University. (shrink)

This paper develops a normative evaluation of the minimum wage in the light of recent evidence and theory about its effects. It argues that the minimum wage should be evaluated using a consequentialist criterion that gives priority to the jobs and incomes of the worst off. This criterion would be accepted by many different types of consequentialism, especially given the two major views about what the minimum wage does. One is that the minimum wage harms the jobs and incomes of (...) the worst off and the other is that it does neither much harm nor much good. The paper then argues at length that there are no important considerations besides jobs and incomes relevant to the assessment of the minimum wage. It criticizes exploitation arguments for the minimum wage. It is not clear that the minimum wage would reduce exploitation and the paper doubts that, if it did, it would do so in a morally significant way. The paper then criticizes freedom arguments against the minimum wage by rejecting appeals to self-ownership and freedom of contract and by arguing that no freedom of significance is lost by the minimum wage that is not already taken account of in the main consequentialist criterion. The conclusion is that, at worst, the minimum wage is a mistake and, at best, something to be half-hearted about. Footnotes1 My thanks to Paul Brown and Jerry Cohen for their written and verbal help, Andrew Williams for long discussions of this paper, two anonymous referees and the editors, and audiences at the Universities of Auckland, Newcastle, and Reading. (shrink)