In this thought-provoking book, well known economists Kurz and Salvadori cover original findings and new vistas on old problems. They cover: alternative interpretations of classical economists new growth theory the relationship between Sraffian theory and Von Neumann the treatment of capital in neoclassical long-period theory. Incorporating cutting-edge research and new work, this book will be of great interest to those working in the field of the history of economic thought.

Microeconomic theory and the theory of natural selection share salient features. This has encouraged economics to appeal to the character of evolutionary theory in defending the adequacy of microeconomics, despite its evident weaknesses as an explanatory or predictive theory. This paper explores the differences and similarities between these two theories and the phenomena they treat in order to assess the force of the economist's appeal to evolutionary theory as a model for how economic theory should proceed.

The first set in Routledge's new _Critical Reviews_ series focuses on the period from the founding of the _Edinburgh Review_ to the end of the Napoleonic Wars. Exhibiting all the richness that characterises economic writing of the period, the 95 articles collected here include pieces by Brougham, Horner, Southey and James Mill. The subjects addressed include: * international trade * banking and currency questions * the poor laws * the national debt * population Unlike many other recently published collections of (...) economic articles this work includes appropriate explanatory notes and a long introduction placing the anthology within the context of the times. (shrink)

This set focuses on the aftermath of the Napoleonic War, when the United Kingdom was rocked by a succession of economic crises. It includes articles by J.R. McCulloch, Sydney Smith and Robert Southey. Themes addressed include: * the response to Ricardo and the development of Ricardian economics * the conduct of colonial policy with special reference to the East India Company * the poor laws * banking and currency questions * continuing discussion of Malthus on population. The articles are (...) supplemented by extensive explanatory notes, and an introduction placing the articles in their historical context. (shrink)

This paper responds to Professor John McMurtry, primarily to his critique of my recent book, Economics as Moral Science. Although agreeing with my attribution of a "moral a priorism" to orthodox or neo-classical economics, McMurtry takes issue with my "conversion thesis", that an a priori, ethically committed theory can be transformed into a testable empirical science of actual behaviour through the application of institutional constraints to individual motivations. McMurtry views such a thesis as "logically possible but morally (...) abhorrent". In so doing, he ascribes a version of economic determinism to me which, he claims, leads me to mistakenly understand the neo-classical paradigm as circumscribing the "boundaries of reality itself" and thereby entrenching the life-destructive values presupposed by this paradigm. I reject such a reading of Economics as Moral Science and explain the manner in which it is inconsistent both with the theoretical substance and practical agenda of my work. I propose that the irreducible basis of disagreement remains one wherein I believe that a more radical reform of the capitalist market order is mandatory to establish more defensible moral ideals than does McMurtry. My reply closes by recommending a constitutional partitioning of material goods such that we may more securely act outside the ethical constraints of neo-classical theory. (shrink)

The eighteenth-century Physiocrats are widely considered to be precursors to classical economics, the French ninteenth-century Economistes, and contemporary free-market economics. They advocated free trade against mercantilism, and natural law against despotism. Although the Physiocrats also contributed to Walras and modern economic engineering, they fit squarely within the French (and world) liberal tradition.

Examines the origin and early development of the classical theory of distribution up to 1767, stressing the concept of economic `surplus' as a key determinant of economic phenomena.

It is frequently repeated that the rationality principle is the fundamental principle of economics and it is so much so that the same principle is equivalently designated as the «economic principle»1. However, it is often the doom of fundamental principles that they are so intimately associated with the science itself that those who practice this science rarely take notice of their presence and of their role. Consequently, it is not surprising not to find any entry for "rationality" or for (...) "rationality principle" in virtually any treaties on economy. If rational behaviour is the object of economics like living organism is the object of biology, specific references could hardly be expected in either of these sciences to what is nothing but the affirmation of the very existence of their subject matter. (shrink)

This essay seeks to start a dialogue between two traditions that historically have interpreted the economy in opposing ways: the individualism of classic economic liberalism (CEL), represented by Adam Smith and Milton Friedman, and the communitarianism of Catholic social teaching (CST), interpreted primarily through the teachings of popes and secondarily the U.S. Catholic bishops. The present authors, an economist and a moral theologian who identify with one or the other of the two traditions, strive to clarify objectively their similarities and (...) differences with the opposing perspective. Section one focuses on each position''s perspective of love of self and love of others. We find both CEL and CST saying that self-love, rightly understood, constitutes a moral good and that the love of others serves as an important principle in the political economy. We find less agreement in section two regarding justice and rights, but even here, we discover a few surprises. Both traditions uphold justice (giving to each party what is due) as essential to the political economy, and recognize some similarity in that type of justice called commutative. We note, however, substantial differences regarding a second type of justice that we call "public justice." First, they differ over the extent to which government should be involved. Here the meaning of rights, especially that of individual freedom, arises. Secondly, the traditions diverge over whether benevolence as a motivator ought to serve as a partner for public justice. Thirdly, CEL in general opposes CST''s emphasis on social justice that calls upon institutions to be proactive in helping citizens and groups to become active participants in the economy. We conclude our essay by summarizing our discoveries and by suggesting areas for further dialogue. (shrink)

First published in 1995. Routledge is an imprint of Taylor & Francis, an informa company.

This article reviews and brings together two literatures: classical political economists’ views on the skilling or deskilling nature of technological change in England, during the eighteenth and nineteenth centuries when they wrote, are compared with the empirical evidence about the skill effects of technological change that emerges from studies of economic historians. In both literatures, we look at both the skill impacts of technological change and at the “inducement mechanisms” that are envisaged for the introduction of new technologies. Adam (...) Smith and Karl Marx both regarded the deskilling of the labour force as the predominant form of biased technical change, but other authors such as Charles Babbage also took account of capital-skill complementarities and skill-enhancing effects of technological change. For Smith, the deskilling bias was an unintended by-product of the increasing division of labour, which in his view “naturally” led to ever more simplification of workers’ tasks. As opposed to Smith, Marx considered unskilled-biased technical change as a bourgeois weapon in the class struggle for impairing the workers’ bargaining position. Studies of economic historians lend support to Marx’s hypothesis about the inducement mechanisms for the introduction of unskilled-biased innovations, but have produced no clear-cut empirical evidence for a deskilling tendency of eighteenth- and nineteenth-century technological change as a whole. Industrialization in the eighteenth and nineteenth centuries rather led to labour polarization, by simultaneously deskilling a large part of the workforce and raising the demand for some high-skilled workers. (shrink)

1. The Real Claim of the Chicago School If anything dramatic has happened in economic theory over the last one hundred years – namely, since the advent of marginalism – then, everyone agrees, it was not the rise of the Chicago neo -classical school which, after all, only synthesized the various versions of marginalism, but the Keynesian Revolution. Assessments of this revolution were repeatedly invited, particularly by opponent, chiefly from Chicago. F. A. von Hayek has explicitly and bitterly blames (...) Keynes for all our economic troubles; Harry Johnson has repeatedly declared the most revolutionary work of Keynes, his General Theory of 1936, so poor that but for its author's name on its title page it would have totally flopped. Can such a flop cause so much damage? Are these two assessments – of Hayek and of Johnson – in conflict or no t? Don Patinkin has raised a different question: how different is Keynes from his Chicago opponents, say, Milton Friedman? How many heads need roll, to use his metaphor, before a revolution may be declared? Patinkin sees Keynes as slightly deviant but stil l a member of the mainstream – the mainstream of the mainstream being Friedman and his Chicago followers, of course. Now, can a minor deviant be a flop? Can minor deviations from the true blue doctrine be to blame for all of our economic woes? I do not kno w. Joan Robinson sees in Keynes a minor deviation from classical theory because he said once his correction of classical theory is implemented, that theory takes over once again. Moreover, Samuelson and Friedman have endorsed a (poor) version of Keynes' theory of shortterm relative price and ignored his general theory of price and money. (shrink)

Why are human beings inclined to commit violence that finally brings themselves into conflict? How could human beings have maintained their society that is full of violence and conflicts? René Girard's theory of mimetic desire and the scapegoat mechanism are the answers to these two anthropological questions. Even though his theory basically belongs to the tradition of anthropological philosophy, it is not limited to that realm. In reality, his theory has been applied in other academic disciplines, in particular, in social (...) science, such as political science and economics.There are two remarkable features of Girard's theory that make it possible for its influence to extend beyond anthropology. The first one is that... (shrink)

Classical economics was oriented towards the advancement of the common interest as defined by the political institutions of the state, whereas neoclassicism is defined in a social and political vacuum. Furthermore, the former related realistically to an excess supply of labour, while the latter assumes full employment. These differences have significant implications for income distribution, accumulation, growth and development. Classical economists advocated free trade to increase domestic productivity and employment at stable or growing real wages. Contemporary globalization (...) recreates the classical surplus labour economy to reduce domestic wage levels through moving domestic production from high to low wage areas around the globe. Free trade becomes necessary so that the goods produced abroad can be imported into capital exporting countries. However, without a corresponding growth of exportables, the trade balance must be adversely affected. Furthermore, adverse changes in income distribution diminish domestic demand for goods. The policy of globalization must become self-defeating. (shrink)

It is exhibited that mature scientific economical theory is a set of propositions that describe the relationship between theoretical objects of two types - basic objects and derivative ones. The set of basic objects makes up the aggregate of initial idealizations (the Fundamental Theoretical Scheme or FTS) with no direct reference to experimental data. The derivative theoretical objects are formed from the basic ones according to certain rules. The sets of derivative objects form partial theoretical schemes or PTS. Any mature (...) economics scientific theory grows due to transitions, in order to describe each new experimental situation, from FTS to PTS. Each PTS construction from the FTS represents a problem that cannot be reduced to a strict algorithm. (shrink)

It is exhibited that mature scientific economical theory is a set of propositions that describe the relationship between theoretical objects of two types - basic objects and derivative ones. The set of basic objects makes up the aggregate of initial idealizations (the Fundamental Theoretical Scheme or FTS) with no direct reference to experimental data. The derivative theoretical objects are formed from the basic ones according to certain rules. The sets of derivative objects form partial theoretical schemes or PTS. Any mature (...) economics scientific theory grows due to transitions, in order to describe each new experimental situation, from FTS to PTS. Each PTS construction from the FTS represents a problem that cannot be reduced to a strict algorithm. (shrink)

_Classic Papers in Natural Resource Economics Revisited_ is the first attempt to bring together a selection of classic papers in natural resource economics, alongside reflections by highly regarded professionals about how these papers have impacted the field. The seven papers included in this volume are grouped into five sections, representing the five core areas in natural resource economics: the intertemporal problem; externalities and market failure; property rights, institutions and public choice; the economics of exhaustible resources; and (...) the economics of renewable resources. The seven papers are written by distinguished economists, five of them Nobelists. The papers, originally published between 1960 and 2000, addressed key issues in resource production, pricing, consumption, planning, management and policy. The original insights, fresh perspectives and bold vision embodied in these papers had a profound influence on the readership and they became classics in the field. This is the first attempt to publish original commentaries from a diverse group of scholars to identify, probe and analyse the ways in which these papers have impacted and shaped the discourse in natural resource economics. Although directed primarily at an academic audience, this book should also be of great appeal to researchers, policy analysts, and natural resource professionals, in general. This book was published as a series of symposia in the _Journal of Natural Resources Policy Research_. (shrink)

This book is about the conceptual foundations of an intermediate way between liberalism and socialism: a synthesis of classical and Keynesian political economy. Classical theory deals with proportions between individuals or collectives and society in tackling problems of distribution and value. Keynesian theory is concerned with the scale of economic activity as explained by effective demand. The economy considered is primarily a monetary production economy, not a market or a planned economy. The author sets up a system linking (...) political economy with other social sciences, i.e. sociology, law and politics in the traditional sense, thus establishing the unity of the social sciences. To complete the picture, issues of method associated with the theory of knowledge in the social sciences and the problem of linking theory with historical reality are also covered. (shrink)

Peter Groenewegen's reputation as a chronicler of the history of economics is unparalleled. Building on his respected collection on eighteenth century economics, this new book focuses on the nineteenth and early twentieth centuries, reprinting essays on classical and modern economics. Several of the included essays have never been published before, whilst many have previously been difficult to access having been written across the 1970s, 1980s and 1990s. This important collection will be an invaluable resource for any (...) historian, student or academic involved in the history of economics. (shrink)

Most textbooks on the history of economic theory scarcely mention the Islamic contribution. The writings of Grice-Hutchinson, Lowry, and Essid are notable exceptions, in that they offer a broad summary of the Islamic literature that enriched the Mediterranean tradition. Yet, Islamic civilization simply deepened the flow of ideas inherited from Antiquity before, and passed them on. From the twelfth century, its brilliance started a slow transfer of Islamic knowledge to a West which was ready to receive it.

Rerum Novarum, the papal encyclical of Pope Leo XIII, has had a major impact on Catholic thinking. Issued in 1891 it immediately received much public attention. This was especially the case in the United States where it was seen as the response re-affirming the sanctity of private property long sought by the American bishops in the public debates with Henry George and his supporters. George was a central public figure in the United States, England and Ireland, whose speeches and writings (...) supported free market ideas, especially free trade. But, George's main idea was that the sole tax should be a singletax on land values.His justification seemed to place the sanctity of private property in doubt. Since some Catholics were strong supporters of George, the Catholic bishops were anxious that the Pope clearly state the morality of private property. Rather than condemn the writings of George directly, Leo XIII prefered to reaffirm the sanctity of private property in a positive form. The American origins of Rerum Novarum had not been appropriately recognized.Rerum Novarum, l’encyclique papale de Léon XIII, a eu un impact majeur sur la pensée catholique. Publiée en 1891 elle reçut immédiatement une très grande attention. Ce fut spécialement le cas aux Etats-Unis où elle fut prise comme une réponse réaffirmant le caractère sacré de la propriété privée longtemps recherchée par les évêques Américains dans leurs débats publics avec Henry George et ses partisans. George était un personnage public central aux Etats-Unis, en Angleterre et en Irlande, dont les discours et les écrits étaient en faveur des idées du libre marché et notamment celles qui concernent l’échange libre. Mais, l’idée majeure de George était que le seul impôt qui devait exister était celui sur la valeur des terrains.Sa justification semblait émettre des doutes à l’égard du caractère sacré de la propriété privée. Alors que quelques Catholiques étaient de forts partisans de George, les évêques catholiques tenaient beaucoup à ce que le Pape se positionne clairement sur la moralité de la propriété privée. Plutôt que de condamner directement les écrits de George, Léon XIII préféra réaffirmer le caractère sacré de la propriété privée de manière positive. Les origines américaines de Rerum Novarum n’ont pas été reconnues à leur juste valeur. (shrink)

This second volume of essays on nineteenth and twentieth century economic thought, complements the first and continues the high standards of scholarship and academic rigour.

John Maurice Clark’s article “The Changing Basis of Economic Responsibility,“ published in the Journal of Political Economy, is the topical starting point for all scholars interested in economic responsibility and responsible economic action. John Maurice Clark, a leading institutional economist, reflected on the consequences of the social and economic change taking place at the turn of the last century for the responsibility of individuals, businesses, and corporations and called for the development of an economics of responsibility. This book contains (...) in-depth articles by scholars from within and beyond economics who continue on the Clark project or address actual problems calling for economic responsibility in the light of his approach. (shrink)

It is argued in this paper that sustainability is not a major concern of contemporary economic theory even though the roots of the concept dig deep into the development literature and into nineteenth century Classical economics (sections 1 and 2). Contemporary Neo-Classical economic theory is built upon utilitarian ethics and is not at all communitarian except to the extent that an economic theory of community can be built upon an utilitarian ethics (section 3). Contrary to what some (...) NeoClassical economists argue, it is possible to give a relatively precise definition of sustainable economic development. What has not been established yet is whether all alleged properties of sustainable economic development are non-contradictory. In other words, the economic growth literature has not provided us with an ideal model of sustainable development yet even though the latter's main characteristics are economic (section 4). Non-economists have great difficulty in accepting some of the economic methodology when applied to sustainability. The fault lies not in the economic methodology itself but rather in the assertion—made by some economists—that sustainability is only an economic problem (section S and 6). Economic-ecological sustainability should be the central and pragmatic concern for public policy even though it will necessarily have social implications. Widening sustainability to social and moral concerns can only hasten its demise as a practical ideology (section 7). (shrink)

Stakeholder theorists have traditionally objected to the neoclassical conception of the firm as a vehicle for maximizing profit or shareholder wealth, thus opening up space for controversial engagement with neoclassical economics. The present paper fills some of this space by elaborating the parallels between stakeholder theory and classical institutional economics, a heterodox school of economic thought that has long been critical of a broad range of neoclassical ideas. Rooted in the writings of Veblen and Commons, classical (...) institutional economics explores how the social provisioning process is coordinated or hindered by real-world business institutions. From this standpoint, stakeholder theory highlights the possibility of overcoming the institutionally ingrained conflicts and trade-offs for the sake of realizing common human interests in organizing the social provisioning process in an orderly and reasonable way. This argument not only illuminates the relationship of stakeholder theory to the wider societal context of modern capitalist economies but also elaborates novel aspects of the moral nature of stakeholder management. (shrink)

: The theory of objective value is the central feature in the paradigm of political economy. The Newtonian heritage plays a major role in giving political economy the status of a self-standing empirical science, and a reconstruction of this heritage casts fresh light on the idea of value and its role in the definition of the subject matter of political economy. Cognitive progress carried by classical political economy turns out to be related with the dilemmas of Newtonian epistemology and (...) the alternative between essentialist realism and instrumental conventionalism. (shrink)

This essay is my extended review of Eamonn Butler’s outstanding primer, Classical Liberalism. In his book, Butler notes that the phrase “classical liberal” encompasses a wide spectrum of views, from conservatism to libertarianism. Butler lays out 10 principles that characterize classical liberalism, sketches its history, and discusses the value classical liberals place on freedom and toleration. He also examines the classical liberal views of politics, government, and society, and some useful compendia for the reader.