In tort law, including Lithuanian tort law, damage usually is divided into two types: pecuniary and non-pecuniary damage. The concept of non-pecuniary damage has recently become a focus of attention of Lithuanian legal researchers. However, it has to be noted that the issues related to the concept of pecuniary damage remain scarcely analysed. As a result, the unique type of pecuniary damage, i.e. the damage of purely economic character, has received no attention whatsoever in Lithuanian tort law. It is (...) usually believed that the defence of the values of purely material character fall into the sphere of contractual law, while tort law is not concerned with the protection of these values. However, in the course of the development of social relations it has become apparent that in the present-day society personal financial losses have become equally important to the cases of actual damage to a person or a property. On the other hand, the fear to overextend the limits of tort law and, thus, limit the persons’ freedom to act, coupled with the different nature of the values protected by tort law provide grounds for the position that relatively abstract financial interests and absolute values or relative personal values should be protected in different ways. Referring to the doctrine and practice of foreign countries as well as the results of the analysis of Lithuanian positive law and court practices, in this article we aim at giving an answer to the question of where and how the ambit of protection under the tort law in the cases of damage of purely economic character should be defined. (shrink)

The English Court of Appeal is currently faced with three analytically distinct approaches to the question of when one party owes another a duty of care in respect of her economic interests, all of which bear the authority of the House of Lords. Unable to choose between them, it has recently adopted a fourth approach combining which combines them, in the apparent belief that the combination will eradicate any individual deficiencies. Against the background of a recent case, the author (...) argues that this is a holding strategy at best and methodologically deficient. He also challenges the continuing lip-service paid by courts to models of liability based upon ‘assumptions of responsibility,’ examining and criticising the causes of their persistence in the law in the face of widespread academic criticism. Instead, the author argues, the House of Lords should now clearly endorse a single reasoning strategy to economic loss cases based on the three-stage approach in Caparo Industries v Dickman. Properly understood, this approach offers the best prospect of facilitating consistent and transparent decision-making in the longer term. (shrink)

I argue that the growing-block theory of time and truthmaker maximalism jointly entail that some truthmakers undergo mereological change as time passes. Central to my argument is a grounding-based account of what I call the “purely incremental” nature of the growing-block theory of time. As I will show, the argument presented in this paper suggests that growing-block theorists endorsing truthmaker maximalism have reasons to take composition to be restricted and the “block” of reality to literally grow as time goes by.

In lieu of an abstract, here is a brief excerpt of the content:Reviewed by:Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate RaworthYoko NagaseKate Raworth, Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist. London: Random House Business Books, 2017. 372 pp. £20. ISBN 9781847941374.Question: Is this a book about utopia? Answer: Yes, indeed; it is a book about a twenty-first-century utopia represented by the Doughnut.The author presents a vision of a pragmatic utopia, represented by the (...) inside of her Doughnut that is both distributive and regenerative. According to the author, a distributive economy is "one whose dynamics tend to disperse and circulate value as it is created, rather than concentrating it in ever-fewer hands." A regenerative economy is "one in which people become full participants in regenerating Earth's life-giving cycles so that we thrive within planetary boundaries" (156).The emphasis on the fair distribution of income, wealth, and means of production is an ideal pursued by famous utopians, from perfectly equal distribution of everything in Thomas More's Utopia to very libertarian position of "whatever he has justly made he has a right to keep" by H. G. Wells.1 The distributive Doughnut community aims to enable individuals to be, in Amartya Sen's words, "healthy, empowered and creative—so that they can choose to be and do things in life that they value" (43). This ideal of individuals' rights to choose their life and to realise their ends is the centerpiece of libertarians' ideal society.2 The Doughnut, however, leans heavily toward democratic socialism. Arguments for redistributive measures such as a universal basic income and taxes on land and wealth put forward by the author go beyond promoting equal opportunity and emphasize the necessity of economic means to make the best out of the opportunities (164, 180, 200). [End Page 528]The issue of sustainability at the global level is a concept that does not appear in the classical utopian literature, even though the idea of living happily in perpetuity is very much the tenet of many classical utopian societies. Given the extent of the geographical knowledge that existed by the time Wells explored his idea of a utopia, he was no longer able to set it in some not-yetdiscovered place on Earth like his predecessors did—hence the adaptation of "another planet."3 But this setup had nothing to do with the concept of the ecological limit of Earth. Pre-nineteenth-century utopians would be familiar with the contents of the Doughnut's foundation, the inner shell that consists of the social and economic factors such as food, health, education, and housing. However, the outer shell of the Doughnut is very twenty-first century, enclosing the nine planetary boundaries of the Doughnut as a life-support system, such as ozone layer depletion, ocean acidification, biodiversity loss, and climate change (44–48).The author points out that we need to get a grip on understanding how we belong in the world. Instead of relying on the power of words as George Orwell's Thought Police, the author takes full advantage of the power of the visual, by drawing the Doughnut as a map for a new economy and society.4 If studying economics is tantamount to "mastering the mother tongue of public policy" (287), Doughnut Economics is a critical introduction to and the foundation of economic, environmental, and social policymaking.Rather than utopias as purely thought exercise by Plato or More, Raworth, like David Hume, presents a model of a utopia that is meant to be achievable.5 The economics of the Doughnut does not depend on any unrealistic assumptions of human nature. The author proposes means to reaching inside the Doughnut without abolishing the market system or private property rights. But a strong emphasis is placed on additional redistributive policies and regulations that are deemed critical toward sustainability. This position is consistent with that of the former chancellor of Germany who reportedly said that she "wanted as much market economics as possible, but as much state intervention as necessary."6 In promoting the open-source circular economy movement, the author wonders if it may seem "unfeasibly utopian" (231). Yet given the pace... (shrink)

In lieu of an abstract, here is a brief excerpt of the content:184 THE ECONOMIC THOUGHT OF DAVID HUME David Hume's views on economics are expressed in his Essays, Moral, Political and Literary, Part II (1752). He was a contemporary of Adam Smith and read Smith's The Wealth of Nations shortly before his death. Some commentators have suggested that Hume exercised some influence over Smith's views on economics; others are not so sure. Hume's commentators over the last 200 years (...) have emphasized his theory of knowledge, doctrine of causality and belief, theory of morals and historical writing. His views on economics have been relatively neglected. The purpose of this essay is to summarize and clarify Hume's views on economics. Commerce and Trade Hume's essay "Of Commerce" is an extension of his view of property rights. Just as government should not impair property rights, it should not impair commerce, which is the freedom to contract between consenting parties. But Hume was not a 'pure' advocate of laissez-faire. He supported the infant industry argument: A tax on German linen encourages home manufacturers, and thereby multiplies our people and industry. A tax on brandy encreases the sale of rum, and supports our southern colonies. The bulk of workers are employed either in argiculture or manufacturing. In the more primitive societies, almost everyone is employed in agriculture (husbandry), and as agricultural techniques are improved, the land becomes able to support more nonagricultural workers, including artisans and providers of luxuries as well as manufacturers. Some of these 185 surplus (i.e., nonagricultural or manufacturing) workers are sometimes appropriated by the sovereign for use in the army or navy (OC 256), which prevents them from producing luxury goods and services, and leads to a different kind of state than would exist if their labor were not so appropriated. Increases in industry, the arts and trade generally increase both the power of the sovereign and the happiness of the people (OC 260). Trade is something that is mutually beneficial -- both parties gain. Hume spends a great deal of time refuting the idea that one nation's gain is another's trade loss. Thus, trade is a win-win rather than a win-lose situation, as some modern-day mercantilists (such as Thurow fThe Zero Sum Gamel and Batra G The Great Crash of 1989l)would have us believe. Hume views everything in the world as purchased by labor, and sees labor as being caused by people's passions (OC 261). In modern language, one could say that wealth is produced either from physical or mental labor, and that it is individual incentive that causes the human action to begin in the first place. Of course, this view overlooks the fact that labor does not exist in a vacuum, but is mixed with land and perhaps capital (which can be seen as the result of accumulated labor). Exchange occurs when producers of a commodity produce more than they can consume. At that point, they trade their surplus for other goods and services (OC 261). In peacetime, the farmers' surplus goes toward the acquisition of manufactures or the cultivation of the liberal arts. In war, the surplus can go toward the support of an army or navy. The state becomes more powerful as it can produce increasingly beyond subsistence, what Hume refers to as employment beyond mere necessities (OC 186 262). But rather than encouraging the increase in state power by force, such increase is best accomplished by allowing individuals to produce as much as they want, which they will do automatically in the absence of coercion, and then appropriate part of the surplus: It is a violent method, and in most cases impracticable, to oblige the labourer to toil, in order to raise from the land more than what subsists himself and family. Furnish him with manufactures and commodities, and he will do it himself. Afterwards you will find it easy to seize some part of his superfluous labour, and employ it in the public service, without giving him his wonted return. Being accustomed to industry, he will think this less grievous, than if, at once, you obliged him to an argumentation of labour without any reward. (OC 262) Countries that engage in... (shrink)

In the theoretical description of prospect theory, distinct sets of parameters can control the curvature of the value function and the shape of the probability weighting function. There is one for the gain domain and one for the loss domain. However, in most estimations, behaviour over losses is assumed to perfectly reflect behaviour over gains, through a unique set of parameters. We examine the consequences of relaxing this simplifying assumption in the context of Tanaka et al.’s (Am Econ Rev (...) 100(1):557–571, 2010) risk-elicitation procedure based on multiple price lists. We show that subjects’ behaviour for gains is mostly reflected for losses at the aggregate and individual levels, and is consistent with the distinctive prospect theory fourfold pattern. Reflection is only partial as the mean curvature of the value function is slightly less convex for losses than it is concave for gains. These results are robust to a high-stake context. However, we demonstrate that assuming reflection can have huge consequences on loss-aversion measures. Incidentally, we also highlight the existence of a strong, negative and persistent pure loss-frame effect on elicited loss aversion. We recommend that future practitioners and modellers are particularly cautious about the loss-aversion values they obtain or use because these are especially sensitive to parametric assumptions and framing. (shrink)

The central insights of Philip Pettit’s republican account of liberty are that (1) freedom consists in the absence of domination and (2) non-domination is not reducible to what is commonly called ‘negative liberty’. Recently, however, Matthew Kramer and Ian Carter have questioned whether the harms identified by Pettit under the banner of domination are not equally well accounted for by what they call the ‘pure negative’ view. In this article, first I argue that Pettit’s response to their criticism is (...) problematic insofar as it produces the following dilemma: either Pettit must concede that domination which one regards as consistent with one’s own best interests does not limit one’s freedom or he must embrace the implication that one can be forced to be free, a result he explici tly wants to avoid. Second, I argue that, despite the inadequacy of Pettit’s response, he is ultimately right in thinking that domination and negative liberty are sometimes compatible. My central contention, then, is that neither Pettit’s non-domination view nor Carter and Kramer’s pure negative view are able to account for the loss of liberty one suffers under conditions of domination. (shrink)

The purpose of this essay is to challenge the Modern assertion that economics is a theologically neutral science founded in the pure rationality of number, yet also connected to morality, particularly in regards to the ancient virtue of justice—“to render to each one their due”. Such an understanding has come at great philosophical, moral, and economic cost, as the Great World Recession of 2008–2013 is demonstrating. Instead, I argue that today's current economic crises are due precisely to (...) a loss of orthodox Christian theological understanding of economics and virtue. I make this argument by examining St. Thomas Aquinas’ theological understanding of the virtues and his consequent understanding of political economy in the Summa Theologica. To evaluate the viability of applying Aquinas’ thought in addressing today's severe economic and ethical crises, I also consider Alasdair MacIntyre's call for a revival of Aristotelian virtue ethics along with his advocacy of Thomisic rationalism to combat the West's ethical decline. However, with John Milbank, I maintain that the integral deprivation of Western moral philosophy and political economy requires a distinctly theological solution that supersedes MacIntyre's neo-Aristotelianism and neo-Thomism. This is to be found in a orthodox reading of Aquinas’ Summa. (shrink)

: How do people make decisions? Previous psychological research consistently shed light on the fact that decisions are not the result of a pure rational reasoning, and that emotions can assume a crucial role. This is particularly true in the case of moral decision-making, which requires a complex integration of affective and cognitive processes. One question that is still open to debate concern the individual factors that can affect moral decisions. Gender has been consistently identified as a possible variable (...) of interest for the adoption of different strategic behaviors, with men using more rational processes and women more deontological principles. In the present study we aimed at exploring the presence of gender differences in different decision-making scenarios. Results showed that the moral scenario led to a similar acceptance rate in both genders, while economic and shopping offers were more likely to be accepted by men. Also, women were more inclined to refuse unfair offers, which included a higher personal benefit at the expense of the opponent, even if this meant a total loss for both parties. Finally, correlational analyses revealed a different relation between risk propensity and decision-making in men and women in different scenarios. Keywords: Decision-making; Utilitarianism; Altruism; Moral Decision-making; Economic Decision-making Decisioni morali, economiche e d’acquisto a confronto. Effetti di genere e utilitarismo Riassunto: Come prendiamo le decisioni? La letteratura psicologica disponibile ha chiarito in ampia misura come le decisioni non siano il risultato di un ragionamento puramente razionale e che le emozioni possono assumere un ruolo cruciale. Questo è particolarmente vero nel caso delle decisioni morali, che richiedono una complessa integrazione tra processi affettivi e cognitivi. Una questione ancora aperta riguarda i fattori individuali che possono incidere sulle decisioni morali. Il genere è stato identificato come una possibile variabile da considerare rispetto all’adozione di comportamenti strategici differenti, in cui gli uomini sembrano più inclini a far uso di processi razionali e le donne a considerare principi deontologici. In questo lavoro abbiamo provato a esplorare la presenza di differenze di genere in diversi contesti decisionali. I risultati hanno mostrano come in ambito morale entrambi i generi siano portati ad accettare opzioni simili, mentre offerte economiche e commerciali sono accettate in misura maggiore dagli uomini. Le donne sarebbero più inclini a rifiutare offerte inique che comprendono benefici personali maggiori a discapito di una controparte, anche se questo implica una perdita totale da ambo le parti. Infine, le analisi correlazionali hanno mostrato una diversa relazione tra propensione al rischio e processi decisionali tra uomini e donne in contesti diversi. Parole chiave: Processi decisionali; Utilitarismo; Altruismo; Processi decisionali morali; Processi decisionali economici. (shrink)

A decision was made at the UNFCCC, COP-18 meeting in Doha in 2012 to create a work programme on loss and damage. Part of this programme was to include the production of a technical paper to enhance the general understanding of non-economic losses from climate change. The following article looks carefully at that paper in order to discover whether it provides an adequate conceptual understanding of non-economic losses. Several shortcomings of the paper’s conceptualization of these losses are (...) identified. An alternative ethical framework with methods better suited for capturing a fuller range of non-economic losses is considered. This framework is likely to be most useful if used prospectively for the purpose of devising better adaptation policies to head off potential future losses rather than if used retrospectively for quantifying losses that have already occurred for the purposes of providing compensation. (shrink)

Several areas of welfare economics seek to evaluate states of affairs as a function of interpersonally comparable individual utilities. The aim is to map each state of affairs onto a vector of individual utilities, and then to produce an ordering of these vectors that can be represented by a mathematical function assigning a real number to each. When this approach is used in intertemporal contexts, a central theoretical question concerns the evaluative weight to be applied to utility coming at different (...) times. This question concerns the rate of pure time preference, which is one key determinant of the social discount rate. This article argues that the standard philosophical account of pure time preference is mistaken, because it ascribes to economists a methodological commitment they need not, and often do not, accept. This in turn undercuts the most common philosophical objection to pure time preference, which traces at least to Rawls’s A Theory of Justice. The article then evaluates three further objections to pure time preference, concluding that it might still be defensible under certain circumstances. The article closes by articulating a final argument that is suggested by the “Social, Economic and Ethical Concepts and Methods” chapter of the most recent Intergovernmental Panel on Climate Change report. If this further argument is sound, it would constitute a decisive objection to pure time preference as it currently figures in much intertemporal welfare economics. (shrink)

An association between age-related hearing loss and Alzheimer's Disease has been widely reported. However, the nature of this relationship remains poorly understood. Quantification of hearing loss as it relates to AD is imperative for the creation of reliable, hearing-related biomarkers for earlier diagnosis and development of ARHL treatments that may slow the progression of AD. Previous studies that have measured the association between peripheral hearing function and AD have yielded mixed results. Most of these studies have been small (...) and underpowered to reveal an association. Therefore, in the current report, we sought to estimate the degree to which AD patients have impaired hearing by performing a meta-analysis to increase statistical power. We reviewed 248 published studies that quantified peripheral hearing function using pure-tone audiometry for subjects with AD. Six studies, with a combined total of 171 subjects with AD compared to 222 age-matched controls, met inclusion criteria. We found a statistically significant increase in hearing threshold as measured by pure tone audiometry for subjects with AD compared to controls. For a three-frequency pure tone average calculated for air conduction thresholds at 500–1,000–2,000 Hz, an increase of 2.3 decibel hearing level was found in subjects with AD compared to controls. Likewise, for a four-frequency pure tone average calculated at 500–1,000–2,000–4,000, an increase of 4.5 dB HL was measured, and this increase was significantly greater than that seen for 0.5–2 kHz PTA. There was no difference in the average age of the control and AD subjects. These data confirm the presence of poorer hearing ability in AD subjects, provided a quantitative estimate of the magnitude of hearing loss, and suggest that the magnitude of the effect is greater at higher sound frequencies.Systematic Review Registration:https://www.crd.york.ac.uk/prospero/, identifier: CRD42021288280. (shrink)

Human activity is causing high rates of biodiversity loss. Yet, surprisingly little is known about the extent to which socioeconomic factors exacerbate or ameliorate our impacts on biological diversity. One such factor, economic inequality, has been shown to affect public health, and has been linked to environmental problems in general. We tested how strongly economic inequality is related to biodiversity loss in particular. We found that among countries, and among US states, the number of species that (...) are threatened or declining increases substantially with the Gini ratio of income inequality. At both levels of analysis, the connection between income inequality and biodiversity loss persists after controlling for biophysical conditions, human population size, and per capita GDP or income. Future research should explore potential mechanisms behind this equality-biodiversity relationship. Our results suggest that economic reforms would go hand in hand with, if not serving as a prerequisite for, effective conservation. (shrink)

The ArgumentIn the minds of many, the Bourbakist trend in mathematics was characterized by pursuit of rigor to the detriment of concern for applications or didactic concessions to the nonmathematician, which would seem to render the concept of a Bourbakist incursion into a field of applied mathematices an oxymoron. We argue that such a conjuncture did in fact happen in postwar mathematical economics, and describe the career of Gérard Debreu to illustrate how it happened. Using the work of Leo Corry (...) on the fate of the Bourbakist program in mathematics, we demonstrate that many of the same problems of the search for a formalstructurewith which to ground mathematical practice also happened in the case of Debreu. We view this case study as an alternative exemplar to conventional discussions concerning the “unreasonable effectiveness” of mathematics in science. (shrink)

Originally published in 1977, this book is a companion to Professor Morishima's book Marx's Economics which was published in 1973. As he did so successfully with Marx, Morishima intended with this book to change the standard assessment of his subject's contribution to the development of economic thought. The standard view was that Walras provided, in the second half of the nineteenth century, the basis for general equilibrium theory. He was thus regarded as a microeconomist, a founder of marginalism; but (...) Morishima argues that, while Walras certainly made important contributions in that area, it is his attempt to build a macroeconomics on that foundation that should be regarded as his main achievement. This book will provoke great interest amongst all economists and advanced students of economic theory and its history. (shrink)

At the end of the eighteenth century and beginning of the 19th, Spain and the Italian States contributed to the development of European agricultural science and the improvement of manufacturing. They collaborated with each other and reworked the most advanced models of France, Central Europe and Great Britain. Despite their somewhat less prosperous economic status, they demonstrated great originality in research and experimentation. In this process, botanical knowledge served as a starting point for a new epistemological path. Through three (...) case studies – the botanists Antonio José Cavanilles and Domenico Nocca, and the agriculturist Filippo Re – my article analyses how Spanish and Italian naturalists and learned individuals contributed to forming the concept of ‘economic botany’ through the exchange of seeds, plant specimens, books, journals, and – more in general – opinions, becoming germinal forces in a large transnational network. (shrink)

This is a history of economic thought from Adam Smith to John Maynard Keynes - but it is a history with a difference. Firstly, it is a history of economic theory, not of economic doctrines, that is, it is consistently focused on theoretical analysis, undiluted by entertaining historical digressions or biological colouring. Secondly, it includes detailed Reader's Guides to nine of the major texts of economics, namely the works of Smith, Ricardo, Mill, Marx, Marshall, Wickstead, Wicksell, Walras (...) and Keynes, in the effort to encourage students to become acquainted at first hand with the writings of all the great economists. This fifth edition, first published in 1997, adds new Reader's Guides to Walras's Elements of Pure Economics and Keynes' General Theory to the previous seven Reader's Guides of other great books in economics. There are significant and major additions to six chapters. (shrink)

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

Virilio and Lotringer revisit their prescient book on the invisible war waged by technology against humanity since World War II. In June 2007, Paul Virilio and Sylvère Lotringer met in La Rochelle, France to reconsider the premises they developed twenty-five years before in their frighteningly prescient classic, Pure War. Pure War described the invisible war waged by technology against humanity, and the lack of any real distinction since World War II between war and peace. Speaking with Lotringer in (...) 1982, Virilio noted the “accidents” that inevitably arise with every technological development: from car crashes to nuclear spillage, to the extermination of space and the derealization of time wrought by instant communication. In this new and updated edition, Virilio and Lotringer consider how the omnipresent threat of the “accident”—both military and economic—has escalated. With the fall of the Soviet bloc, the balance of power between East and West based on nuclear deterrence has given way to a more diffuse multi-polar nuclear threat. Moreover, as the speed of communication has increased exponentially, “local” accidents—like the collapse of the Asian markets in the late 1980s—escalate, with the speed of contagion, into global events instantaneously. “Globalization,” Virilio argues, is the planet's ultimate accident.Paul Virilio was born in Paris in 1932 to an immigrant Italian family. Trained as an urban planner, he became the director of the École Speciale d'Architecture in the wake of the 1968 rebellion. He has published twenty-five books, including Pure War and The Accident of Art, both with Sylvère Lotringer and published by Semiotext. Sylvère Lotringer, general editor of Semiotext, lives in New York and Baja California. He is the author of Overexposed: Perverting Perversions, 2007) and other books. (shrink)

Law, Economics, and Morality examines the possibility of combining economic methodology and deontological morality through explicit and direct incorporation of moral constraints into economic models. Economic analysis of law is a powerful analytical methodology. However, as a purely consequentialist approach, which determines the desirability of acts and rules solely by assessing the goodness of their outcomes, standard cost-benefit analysis is normatively objectionable. Moderate deontology prioritizes such values as autonomy, basic liberties, truth-telling, and promise-keeping over the promotion of (...) good outcomes. It holds that there are constraints on promoting the good. Such constraints may be overridden only if enough good is at stake. While moderate deontology conforms to prevailing moral intuitions and legal doctrines, it is arguably lacking in methodological rigor and precision. Eyal Zamir and Barak Medina argue that the normative flaws of economic analysis can be rectified without relinquishing its methodological advantages and that moral constraints can be formalized so as to make their analysis more rigorous. They discuss various substantive and methodological choices involved in modeling deontological constraints. Zamir and Medina propose to determine the permissibility of any act or rule infringing a deontological constraint by means of mathematical threshold functions. Law, Economics, and Morality presents the general structure of threshold functions, analyzes their elements and addresses possible objections to this proposal. It then illustrates the implementation of constrained CBA in several legal fields, including contract law, freedom of speech, antidiscrimination law, the fight against terrorism, and legal paternalism. (shrink)

Since the choice of a particular loss function strongly influences the resulting inference, it seems necessary to rely on “intrinsic” losses when no information is available about the utility function of the decision-maker, rather than to call for classical losses like the squared error loss. Since this setting is quite similar to the derivation of noninformative priors in Bayesian analysis, we first recall the conditions of this derivation and deduce from these conditions some requirements on the intrinsic losses. (...) It then appears that these loss functions should only depend on the sampling distribution and that they should be independent of the parameterization of the distribution. The resulting estimators are therefore transformation equivariant. We study the properties of two natural intrinsic losses, namely entropy and Hellinger losses, and show that they can be expressed in closed form for exponential families. Moreover, the entropy loss also provides analytic expressions of Bayes estimators under conjugate priors; the derivation of Bayes estimators associated with the Hellinger loss is more cumbersome, as shown in Poisson and Gamma cases, while leading to similar estimators. (shrink)

A good way of characterizing what is usually called the 17th-century “revolution of modern science” is to focus on Galileo Galilei’s theory of explanation. As is well known, he set aside three of the four Aristotelian causes (material, formal and final causes) in order to base all sound scientific explanations in terms of efficient causes. In the second half of the 19th century a new scientific revolution occurred, with Darwin’s theory of evolution. As it has been stated repeatedly, Darwinism also (...) has something to do with the abandoning of teleology in science, as speciation is explained without any appeal to final causes. But in the last quarter of the 19th century a third scientific revolution occured, this time in the social sciences. Many philosophers of science fail to notice or understand this intellectual event. This third scientific revolution is usually called the “marginalist revolution.” The transformation of political economy into pure economics, and progressively, into mathematical economics had at least two distinctive features. First, this revolution broke out simultaneously but independently in three different European countries: with Carl Menger (1840- 1921) in Austria, with William Stanley Jevons (1835-1882) in England, and with Léon Walras (1834- 1910), who, in 1870, was the first to hold the Chair of Political Economy at the University of.. (shrink)

Classifying accounts of institutionalized social norms that rely on individual rule-following as ‘sociological’ and accounts based on individual opportunity-seeking behavior as ‘economic’, the paper rejects purely economic accounts on theoretical grounds. Explaining the realworkings of institutionalized social norms and social order exclusively in terms of self-regarding opportunityseeking individual behavior is impossible. An integrated sociological approach to the so-called Hobbesian problem of social order that incorporates opportunityseeking along with rule-following behavior is necessary. Such an approach emerges on the horizon (...) if economic methods are put to good sociological use on the basis of recent experimental economic findings on rule-following behavior. (shrink)

Objective: Losing the only child is considered as the most severe kind of bereavement. It can trigger intense grief symptoms along with loss of psychosocial resources, but meanwhile, it can also lead to posttraumatic growth (PTG). The current study aimed to examine (a) whether a curvilinear relationship exists between grief and PTG, and (b) the moderating role of resources-loss among Chinese bereaved parents who lost their only child (shidu parents). Methods: 199 shidu parents from five provinces completed the (...) assessment packet covering prolonged grief symptoms and PTG, as well as resource loss. Hierarchical regression analyses were computed to examine the curvilinear relationship and the moderating effect of interpersonal loss and socio-economic loss. Results: There was no significant curvilinear relationship between grief and PTG in shidu parents. Under the high levels of interpersonal loss, shidu parents’ PTG scores decreased as the severity of grief increased. However, the socio-economic loss did not show a significant moderating effect. Conclusion: The results of the current study did not show a significant curvilinear relationship between grief and PTG in shidu parents. High levels of grief coupled with high levels of interpersonal loss may interfere with their ability to achieve PTG. Therefore, evaluating degrees of interpersonal loss seems to be an important part of the treatment process when working with shidu parents. To facilitate their adaptation from a positive perspective, helping them maintain existing or develop new interpersonal relationships may be helpful. (shrink)

The theme of this issue of the St. Gallen Business Review is "Harmony". For this reason, we would like to discuss whether two aspects of our life- world are in harmony, namely economic optimization and morality. What is the relation between them? According to a widely shared view, which is one aspect of the doctrine of "mainstream economics", the functioning of an economic system does not require moral behaviour on the part of the individual economic agent. In (...) what follows, we will try to convince you that this is false. If all economic agents – managers, employees, bankers, consumers and so on – were purely self-interested, as mainstream economics assumes, our economic practice would fail. There are various reasons for this. Here we will focus on one of them, namely the pivotal role of interpersonal communication. (shrink)

Loss aversion can occur in riskless and risky choices. We present novel evidence on both in a non-student sample (660 randomly selected customers of a car manufacturer). We measure loss aversion in riskless choice in endowment effect experiments within and between subjects and find similar levels of average loss aversion in both. The subjects of the within study also participate in a simple lottery choice task which arguably measures loss aversion in risky choices. We find substantial (...) heterogeneity in both measures of loss aversion. Loss aversion in riskless choice and loss aversion in risky choice are strongly positively correlated, but on average riskless loss aversion is higher than risky loss aversion. We find that in both choice tasks, loss aversion increases in age, income, and wealth, and decreases in education. Our results provide novel supportive input to the debate about the reality of loss aversion. (shrink)

Whether economics warrants public trust depends on the extent to which assertions by economists can be deemed credible. Three examples from microeconomics are examined to assess how the discipline performs in this regard. First, a purely theoretical argument with broad conceptual implications: a quasi-evolutionary argument for rational choice based on the notion of money pumps. Second, a modelling-related claim with significant social implications: economists’ objection to minimum wages based on a simple supply-demand model. Third, methodological choices with implications for all (...) empirical work in microeconomics: the recent proclamation of a ‘credibility revolution’ in applied microeconomics through the use of experimental and quasi-experimental methods. These are assessed against proposed criteria for credibility: epistemic validity, epistemic reliability, and epistemic reflexivity. On the basis of the performance of the discipline against these criteria on the examples considered, I conclude that public distrust of economics and economists can be well-founded. (shrink)

Current debates between behavioural and orthodox economists indicate that the role and epistemological status of first principles is a particularly pressing problem in economics. As an alleged paragon of extreme apriorism, the methodology of Austrian economics in Mises’ tradition is often dismissed as untenable in the light of modern philosophy. In particular, the defence of the so-called fundamental axiom of praxeology—“Man acts.”—by means of pure intuition is almost unanimously rejected. However, in recently resurfacing debates, the extremeness of Mises’ epistemological (...) position has been called into question. Rather than directly engaging in these exegetical discussions, this paper aims to substantiate the possibility and plausibility of conventionalist defences of praxeology per se. The proposed shift includes settling for an analytic fundamental axiom and acknowledging the prima facie tenability of other research programs than praxeology. Since conventionalist praxeology is only moderately aprioristic, mainstream economists and philosophers might be more likely to engage in fruitful discussions with those Austrian scholars who elaborate pragmatic arguments for praxeology instead of invoking pure intuition. (shrink)

The models of internal self-control that have recently been proposed by behavioral economists do not depict motivational interaction that occurs while temptation is present. Those models that include willpower at all either envision a faculty with a motivation (“strength”) different from the motives that are weighed in the marketplace of choice, or rely on incompatible goals among diverse brain centers. Both assumptions are questionable, but these models’ biggest problem is that they do not let resolutions withstand re-examination while being challenged (...) by impulsive alternatives. The economists’ models all attempt to make a single equilibrium preference predictable from a person’s prior incentives. This was the original purpose of these models’ hyperboloid (“β–δ”) delay discount functions, which have been widely justified by the assumption that a person’s intertemporal inconsistency (impulsiveness) can be accounted for by the arousal of appetite for visceral rewards. Although arousal is clearly a factor in some cases of intertemporal inconsistency, it cannot be blamed for others, and furthermore does not necessarily imply hyperboloid discounting. The inadequacy of β–δ functions is particularly evident in models of internal self-control. I have reviewed several of these models, and have argued for a return to pure hyperbolic discount function as originally proposed, the relatively high tails of which can motivate a recursive process of self-prediction and thereby the formation of self-enforcing intertemporal contracts. Such a process does not require a separately motivated faculty of will, or incompatible goals among brain centers; but it also does not permit the prediction of unique preferences from prior incentives. (shrink)

A cash-flow viability model is used to evaluate the impacts of land-use zoning on farm households in New Jersey. Findings suggest that zoning results in increased production expenses, lower efficiency and profitability, and the devaluation of land assets. Cash flow and economic viability are, thus, reduced. Impacts of zoning on farm incomes, off-farm incomes, revenues from land sales, indebtedness, and farm sizes were not statistically significant. The results suggest that the use of land-use zoning statutes to guarantee the existence (...) of agriculture may not be equitable unless transferable development rights or other methods of compensating farmers for their losses are simultaneously implemented. (shrink)

This work stresses the illogical manner in which mathematics has developed, the question of applied mathematics as against 'pure' mathematics, and the challenges to the consistency of mathematics' logical structure that have occurred in the twentieth century.

Reviews : Kozo Uno, Principles of Political Economy : Theory of a Purely Capitalist Society, Make to Itoh, Value and Crisis: Essays on Marxian Economics in Japan.

I am a behavioral economist, who is interested in both behavioral sciences and economic behavior. By the term “economic behavior” I refer to the calculative reasoned domain of economic analysis, whereas by “behavioral economics” I address aspects of human feelings, emotions and everything that is not captured by the “rational” paradigm. Evidently, erroneous calculations, as well as unhinged sentiments lead to economic losses, and every change in the economics of the world has both calculative and behavioral (...) sides to it. In what follows, we examine these two sides of behavior in relation to the COVID-19 pandemic by drawing on contemporaneous data, forecasts, and images. Each side of behavior reveals distinctive insights, and intriguingly, not all outcomes count as loss. As we face this crisis, there is a clear environmental gain that we would be smart to preserve post pandemic. (shrink)

In June 2007, Paul Virilio and Sylvère Lotringer met in La Rochelle, France to reconsider the premises they developed twenty-five years before in their frighteningly prescient classic, Pure War. Pure War described the invisible war waged by technology against humanity, and the lack of any real distinction since World War II between war and peace. Speaking with Lotringer in 1982, Virilio noted the "accidents" that inevitably arise with every technological development: from car crashes to nuclear spillage, to the (...) extermination of space and the derealization of time wrought by instant communication. In this new and updated edition, Virilio and Lotringer consider how the omnipresent threat of the "accident"--both military and economic--has escalated. With the fall of the Soviet bloc, the balance of power between East and West based on nuclear deterrence has given way to a more diffuse multi-polar nuclear threat. Moreover, as the speed of communication has increased exponentially, "local" accidents--like the collapse of the Asian markets in the late 1980s--escalate, with the speed of contagion, into global events instantaneously. "Globalization," Virilio argues, is the planet's ultimate accident.Paul Virilio was born in Paris in 1932 to an immigrant Italian family. Trained as an urban planner, he became the director of the École Speciale d'Architecture in the wake of the 1968 rebellion. He has published twenty-five books, including Pure War and The Accident of Art, both with Sylvère Lotringer and published by Semiotext. Sylvère Lotringer, general editor of Semiotext, lives in New York and Baja California. He is the author of Overexposed: Perverting Perversions, 2007) and other books. (shrink)

This article endeavors to establish the moral force behind the worker’s claim to a compensatory wage in return for the labor burdens she endures. The apparent incompatibility between compensation and voluntary losses suggests that the only reason for providing a compensatory wage is the need to entice a valued service. In response, the article considers and rejects attempts to ground the compensatory wage on duress, mutual trade, and desert. Instead, it argues that the worker is not responsible for her (...) class='Hi'>loss of well-being because she would not have incurred it in the absence of the employer’s promise to compensate. Key Words: compensatory wage • contributory wage • detrimental reliance • desert • labor burdens • promises • responsibility. (shrink)

Ultrasociality refers to the social organization of a few species, including humans and some social insects, having a complex division of labor, city-states, and an almost exclusive dependence on agriculture for subsistence. We argue that the driving forces in the evolution of these ultrasocial societies were economic. With the agricultural transition, species could directly produce their own food and this was such a competitive advantage that those species now dominate the planet. Once underway, this transition was propelled by the (...) selection of within-species groups that could best capture the advantages of (1) actively managing the inputs to food production, (2) a more complex division of labor, and (3) increasing returns to larger scale and larger group size. Together these factors reoriented productive life and radically altered the structure of these societies. Once agriculture began, populations expanded as these economic drivers opened up new opportunities for the exploitation of resources and the active management of inputs to food production. With intensified group-level competition, larger populations and intensive resource exploitation became competitive advantages, and the “social conquest of Earth” was underway. Ultrasocial species came to dominate the earth's ecosystems. Ultrasociality also brought a loss of autonomy for individuals within the group. We argue that exploring the common causes and consequences of ultrasociality in humans and the social insects that adopted agriculture can provide fruitful insights into the evolution of complex human society. (shrink)

The last financial crisis revealed a gap between business practice and ethics. In Value Economics, Griffiths and Lucas examine some of the reasons for this ethical gap and discuss the resulting loss of confidence in the financial system. One of the reasons has been hazy or inadequate thinking about how we value economic enterprises. With the close link between the creation of value and business ethics in mind, this book proposes that economic value should become the basic (...) metric for evaluating performance in the creation of value, and for establishing fair and reasonable standards for executive compensation. Value Economics considers a number of rational philosophical principles for business management, on which practical codes of business ethics can be based. As the creation of value has moral implications for economic justice, the book reaffirms the argument for economics as a moral science, and seeks, within the context of proposed changes in the regulation and control of financial services, to answer the following question: will things really change after the last financial crisis? (shrink)