Classical Political Economy

Авторските материали в книгата се основават на общата представа, че в условията на глобализация все повече се изостря проблемът с насилието като израз на т.нар. култура на войната, насочена към принуждаване или унищожаване на едни участници в световното общество от други, които пречат или се противопоставят на интересите и стремежите на последните. По най-различни начини се установява, че основният път за ефективно и конструктивно решаване на този проблем е "въоръжаването" с "културата на мира и сътрудничеството", основана на взаимно разбирателство, търпимост и солидарност между цивилизациите, народите и културите, на принципите за мирно регулиране на възникващите конфликти, на взаимно уважение и разбирателство между всички членове на обществото, на подкрепата на демократичните институции и политиката на държавите за осигуряване и укрепване на социалното партньорство. Разгледани са и практически мерки за подготовка в различни страни на световната общност, особено в Европа и Русия, на миротворчески формирования и на проводници на идеите на сътрудничеството и социалното партньорство. Книгата е предназначена за научни работници и практици, педагози, специализанти, студенти и всички, които имат връзка с анализа, функционирането, прогнозирането и регулирането на международни, вътрешнодържавни, регионални, отраслови, политико-правни, образователни и други социални процеси и взаимоотношения.

This study proposes a revolutionary theory of business cycles, arguing that they are not market failures but rather endogenous and essential for maximizing economic efficiency. To demonstrate our theory, we introduce the Augmented National Income Equilibrium Model Business Cycle, which comprises income, consumption, investment, the pure interest rate (R), and the potential return on investment (P RI). Through heuristic application of the model, we demonstrate how the dynamic interplay of these components generates business cycles that continuously clear without achieving traditional equilibrium. Our model shows that (i) the Central Growth Rate (CGR), which represents the long-term income growth trend, establishes the upper and lower bounds for the oscillatory relationship between changes consumption and investment when considered independently of the absolute income level, ensuring long-term stability within cyclical dynamics; (ii) R, which represents the time preference for consumption, closely tracks the CGR, mediating income allocation between consumption and investment; and (iii) continuous oscillation of the PRI-R Differential, which we define as (P RI-R), is the primary driver of the business cycle, dynamically guiding capital allocation decisions. Our study empirically confirms that oscillations in consumption and investment fully account for GDP cyclicality. While shocks and other destabilizing influences undoubtedly play a role when they occur, the Augmented NIE Model Business Cycle demonstrates that cyclical behavior emerges even in their absence. When we remove the influence of the absolute level of income on consumption This working paper represents the formal development of a theory that has informed my market analysis for nearly 40 years. The initial ideas were conceived around the time of my book, The Speculator's Edge, in 1989, during my career as a professional speculator. Comments and feedback are welcome at [email protected].

This paper investigates efficiency and freedom as joint foundations of market economies. Whereas ideal perfect competition accommodates Mill’s principle of individual liberty in the economic arena, in real world, imperfectly competitive, markets economic freedom and efficiency appear often as conflicting values. Building on J. S. Mill’s utilitarian defense of free trade in On Liberty Chapter V, this paper puts forward a consequentialist defense of economic freedom under imperfect competition. Defense rests on the instrumental value of equal freedom, enjoyed by every market agent, as a source of general welfare in a world of dispersed information among unique human beings. The paper has a clear impact on contemporary antitrust debate, supporting neo-Brandesians’ rehabilitation of Structuralism in antitrust also on well founded, economic, i.e. efficiency, reasons.

This article delves into the nuanced influence of diverse economic theories on the concept of sustainable development, spanning economic, social, and environmental dimensions with intricate complexity. It
elucidates the varying perspectives on the sustainability of economic growth and the evolving ethical discourse within economics, offering valuable insights into their implications for sustainable development
efforts. Through an exploration of economic development, the article investigates the dynamic interplay between international dependence and liberal theory, drawing parallels among the ideas of influential
economists like Karl Marx, Adam Smith, and David Ricardo. It highlights the inherent link between economic and social spheres, particularly emphasizing income distribution’s pivotal role in addressing realworld
challenges and advancing sustainability objectives. Furthermore, the article delves into social development by examining Amartya Sen’s capability approach, which breathes new life into classical
economic concepts by emphasizing individual agency. It contrasts prevailing economic paradigms and their consequences for sustainable development. Finally, in the environmental realm, the article discusses
resource and environmental economics alongside ecological economics, presenting nuanced interpretations of sustainability rooted in either neoclassical or classical theory. This comprehensive analysis provides
valuable insights into the complex landscape of sustainable development, aiming to inform and guide future endeavors in this critical field.

Джон Роджърс Комънс (1862-1945) е водещ представител на американския институционализъм от първите десетилетия на 20 век. Трудовете му в областта на политическата икономия и социологията поставят началото на специфичен институционален подход, в който институциите са разбирани като колективни действия в рамките на съществуващите обществени норми (закони, обичаи, навици). Комънс въвежда в икономическата теория трансакцията (сделката) като най-малката единица на анализ. Изследванията му на трудови-те пазари, ролята на правните норми, както и работата му в сферата на социал-ното законодателство го превръщат в един от водещите автори в школата на стария институционализъм. ||

Abstract. John Rogers Commons (1862-1945) was a prominent representative of
American institutionalism in the early decades of the 20th century. As a political
economist and sociologist, he developed an institutional approach, defining institutions
as collective actions which take place within given norms such as law, habits, and
customs. Additionally, he introduced the transaction as the smallest unit of
interaction in economic theory. Commons' studies of the labour market, the role of
law, and his social policy work in legislation made him one of the most influential
proponents of old institutional economics.

Adam Smith had a follower from the Slovakian part of Hungary in his day. We display how Smith’s message was diffused through the British-ruled University of Göttingen to scholars from all over the continent. Gregor Berzeviczy (1763-1822) was one the Smithians the university nurtured. There were several types of German Smithians, some dedicated to the theory of economics, others practical, trying to apply economic reforms that they believed were implied in Smith’s works. Berzeviczy was a Smithian of practical sorts. In this regard, he was close to the Smithian generation of German liberal reformers of the Napoleon era: W. von Humboldt, F. von Stein, and F. von Hardenberg. These reformers enhanced German economic growth. Unlike them, Berzeviczy had no opportunity to implement reforms in the backward economy of Hungary. Though he wasn’t a theoretician, he wrote several books thanks to which he was known in his day. In the paper, we are reconstructing his reformist Smithian legacy (translated from Slovak).

Changes in land use and land cover are among the issues central to the study of global environmental change. In addition to their cumulative long-term global dimensions, such changes can have profound regional environmental implications during the life span of current generations. A better understanding of the dynamics in land and water use is thus critical for an informed debate of sustainability. Land use represents a critical intersection of economic and ecological systems. Landuse changes are most often directly linked with economic decisions. This recognition has led LUC to choose an economic framework as the organizing principle, resulting in a broad set of project activities geared towards providing a biophysical and geographical underpinning to the representation of land-based economic sectors in modeling land and water use decisions. This report addresses foremost researchers outside economics and should be viewed as a modest step towards reducing the deficit in transdisciplinary research, which, until now, has permitted only modest advances in closing the gaps between environment and economic analysis.

Целта на студията е да се анализират общотеоретичните проблеми на възникването, развитието и състоянието на психотерапията. Разгледани са възгледите за същността на психотерапията в хронологичен ред, започвайки от Древността, през Античността, Средновековието, Новото време и Модерното време. Обсъжда се развитието на концепциите за психотерапевтична помощ и тяхното влияние върху разбирането на човешкото функциониране.

This paper argues that attempts to mitigate rebound effects within growth-orientated economic systems are self-defeating. This arises because rebound effects contribute to economic expansion and individual 'welfare' improvements (i.e., they are welcome and even desirable) and they flourish in traditional market systems where resource allocation is conducted in an ex-post fashion. As such, in the context of the transition towards more sustainable societies, we suggest that ex-ante economic planning and coordination mechanisms are needed to help eliminate rebound effects. Specifically, we argue that mechanisms adopted in contemporary supply chains demonstrate the technical feasibility of economic planning. Such techniques, framed within a democratic economic planning architecture, could therefore encourage moves towards a future that allows us to live within biophysical limits. An interdisciplinary research agenda is proposed to this end.

Upper-division standing COURSE OVERVIEW This course offers an in-depth exploration of the intersection between law, society, and the economy, through the lens of macrosociology, economic sociology, and political economy. By examining how legal institutions function within broader social and economic structures, the course will challenge you to critically evaluate the role of law in shaping social relations, economic organization, and political power.

Owing to the mainstream interpretation of classical economics as
being supply-side, studies examining the analytical role of
demand and consumption have been scarce. In this paper, I bring
together such passages in Cantillon, Steuart, Smith and Ricardo
and forge an analytical link between social tastes and consumption—
an attempt at reconstructing a classical theory of taste formation.
A classical theory of taste formation has as its foundation
methodological holism—viewing social classes as the fundamental
unit of analysis. Through a discussion of necessaries and luxuries
in the above classical economists, the social division of
commodities is highlighted. By drawing on social classes and the
social division of commodities, it is seen that taste plays a critical
role in the determination of economic growth by influencing consumption
expenditure. Finally, it is demonstrated that taste is
both a cause and consequence of foreign trade.

Since the industrial revolution, the world has not witnessed at a grand scale and at such a speed a revolution such as the digitalization of virtually every facet of human Endeavour. Through electronic governance, business with government is exceedingly facilitated rapidly and probably with less stress. Like globalization which affects countries and regions differently, so is electronic governance. As a mechanism of governance, its positive impact is enormous when viewed in relation to time, volume of materials transmitted, speed, accuracy etc. in fact, its unfolding transformation of the world is unspeakable. In this study positioned to explore the impact of e-governance in Nigeria vis-à-vis citizen participation and political leadership responsibility; primary data were used through structured Likert Scale Questionnaire. The survey research design covered different segment of society such as the civil servant, trader, teacher/lecturer, civil society, lawyer and students. The non-p...

Una recensione critica ma simpatetici dell'importante opera di Michael Heinrich, "La scienza del valore. La critica marxiana dell’economia politica tra
rivoluzione scientifica e tradizione classica", a cura di Riccardo Bellofiore e Stefano Breda, trad. ital. di Stefano Breda, Pgreco edizioni, Milano 2023

The focus of this work is to address the problem of socioeconomic development in Nigeria using Adam Smith's notion of political economy as a framework. According to Adam smith, what accounts for opulence across nations is the absence of political policies that hinder a free market economy. This study relies on his theory of invisible hand (1776). In this theory, Adam Smith proposed a free market economy as a means to achieving economic growth, although some of his leanings seem to tilt towards the extreme of complete deregulation of the markets as interpreted by various scholars. Hence, this paper employs the critical method of philosophical enquiry to find out if there is a positive relationship between Adam Smith's notion of political economy and economic growth of nations especially within the Nigerian context. Given the apparent overbearing influence of Nigerian government on the markets, the nation is presently facing so many economic drawbacks such as recession, currency exchange crisis and other high cost of living conditions. Findings of the study revealed that well guided implementation of market liberalization ideas gleaned from Adam Smith will positively impact the growth and development of Nigeria. The study recommended the provision of stable economic environment to foster sustainable growth, pro-growth regulatory and competition policies, investments in infrastructure, human resource development, governance and the rule of law as means to socioeconomic development within a liberalized economy.

Разработката обяснява генезиса на капитализма по принципно различен начин от този на социологическата класика. Новоевропейската трансконтинентална търговия се разглежда като механизъм, като социалноструктурен процес от надличностен порядък, действащ системно в продължение на повече от три века и пораждащ капитализма като свой продукт. Пазарът, подпомогнат от калвинизацията на християнството, се приема не само като историческото, но и като “логическото начало” на модерния тип общества. The paper explains the genesis of capitalism in a principally different way from that of sociological classics. The new European trans-continental trade is viewed as a mechanism, as a social-structural process of supra-personal order, operating systematically in the course of over three centuries and giving rise to capitalism as its own product. Market aided by Calvinisation of Christianity is accepted not only as a historical but also as „a logical beginning” of the modern type of societies

Статията разглежда т.нар. "револвираща собственост" като метамодел на притежание, чиято структура позволява смяна (завъртане) на включените в нея разнородни компоненти, всеки от които може да постига различни цели по различни начини. Посочено е, че метамоделът на револвиращата собственост може да бъде използван при създаването и структурирането на модели на притежание върху определени вещи, които изискват отчитането на специфични социални и екологически съображения. В този контекст е направено и разграничението между ян собствеността ("класическата" частна собственост, използвана като инструмент за растеж чрез извличане и натрупване, аналог на т.нар. "екстрактивна" собственост) и ин-собствеността (ангажирано притежание, в чието съдържание се включва здравословен баланс между права и задължения, т.е. гъвкаво разпределение на различни компоненти, насочени към постигане на устойчиво равновесие, аналог на т.нар. "генеративна" собственост). Представена е тезата, че колкото по-бързо бъде преодолян "свещеният" характер на ян собствеността и той отстъпи от доминацията си чрез интегрирането на балансиращи ин компоненти, толкова по-лесно и по-ефективно юристите ще могат да предложат нови разнообразни модели на собственост. Откриването и признаването на комплексността на природата предполага и по-голяма сложност на съвременното вещно право. Време е вещното право да преосмисли своите непоклатими аксиоми и да потърси адекватно решение на съществуващите днес предизвикателства пред човечеството.

The purpose of the paper is to provide a comprehensive comparison of fiscal and monetary policies with different forms of public expenditure, including a job guarantee (JG) plan. Our key findings are as follows. First, expansionary fiscal policies (including JG) are effective in reflating the economy independently of the way in which they are funded. However, deficit monetization should be expected to be more effective in the short run, while bill-funded government spending is likely to be more effective in the long run. Second, expansionary monetary policies are reflationary in the short run. However, they may have deflationary effects on the economy in the medium to long run. Third, a lower reserve requirement can reflate the economy, but the expected impact is rather weak. Fourth, non-selective tax cuts are effective, but less effective than government spending. Fifth, the impact on the price level is harder to predict than the impact on output. Sixth, conventional spending outclasses JG in terms of GDP growth and inflation rate control, but the JG is a better option in terms of employment results and income distribution.

Contemporary capitalism is characterized by periods of vigorous economic growth and periods of slow or even negative growth. This book draws on the classical political economy approach to consider both economic cycles and economic growth and draw conclusions about the inherent instability of the modern economy. The book shows that the work of the old classical economists (Smith and Ricardo) and Marx is theoretically sound and capable of providing answers to both growth and cycles. It also demonstrates the potential and natural integration of growth and cycles in a single model. The microeconomic foundation of
this model is the labor theory of value, which continues with the General Law of Capital Accumulation, the Law of the Falling Rate of Profit, and the movement of the Industrial Reserve Army of Labour. Finally, a dynamic model of growth-cum-cycles is constructed consisting of the evolution and interaction of five key variables, namely, the rate of profit, the propensity to invest in fixed capital, technological change, the reserve army of labor, and the rate of capital devaluation. The analysis demonstrates that economic growth and cycles are not disconnected from each other, as they have been treated in the literature, but rather interdependent aspects of the same evolutionary process of a capitalist
economy. This book will interest readers in the history of economic thought, economic growth and development, macroeconomics, and political economy.

A study in three parts of Marx's 1844/Paris Manuscripts, in which I show that 'alienated labor', which Marx derives from problems immanent to political economy itself, forms the basis of Marx's early critique of political economy and generates the requirement for historical materialism.

This paper critically examines Gottfried von Haberler’s reformulations of  David Ricardo’s work. It starts by raising doubts about whether Haberler fully understood the true purpose behind Ricardo’s numerical illustration which Ricardo uses to show that commodities do not exchange according to embodied quantities of labour. It then argues Haberler did not interpret either Ricardo’s theory of value or Ricardo’s numerical example provided in Chapter VII of the Principles (1817) correctly, raising doubts about whether his reformulations accurately preserved the intended meaning behind the numerical example. The following section examines Haberler’s concerns regarding the mobility of the factors of production. Haberler was correct to note that the classical economists differentiated between home and foreign trade, but undue focus on factor mobility led him to overlook the role of the rate of profit for determining exchange-values. The last section examines how Haberler’s reformulation gained widespread acceptance over competing interpretations, despite its inaccuracies, and explains how textbook portrayals of Ricardo are effectively based on Haberler’s invalid interpretation of his numerical example.

This paper examines John Stuart Mill's discussion of economic liberty and individual liberty, and his view of the relationship between the two. It explores how, and how effectively, Mill developed his arguments about the two liberties; reveals the lineages of thought from which they derived; and considers how his arguments were altered by political economists not long after his death. It is argued that the distinction Mill drew between the two liberties provided him with a framework of concepts which legitimised significant government intervention in economic matters without restricting individual liberty.

Capital theory and the associated with it price effects consequent upon changes in the distributive variables hold centre stage when it comes to the internal consistency of both classical and neoclassical theories of value. This paper briefly reviews the literature and then focuses on the detected skew eigenvalue distribution of the vertically integrated technical coefficients matrices of actual economies. The findings prompt the use of the Schur triangularization theorem for the construction even of a single industry from the input-output structure of the entire economy. Such a hyper-basic industry, in combination with hyper-non-basic industries, embodies properties that may capture the behaviour of the entire economic system. Thus, we can derive some meaningful results consistent with the available empirical evidence, which finally suggest that actual economies tend to respond as 'irregular-uncontrollable' systems.

Two different arguments for Free Trade are given in the Lectures and neither of them is quite the argument later provided in the Wealth of Nations. In view of the importance of Free Trade both In the history of economics as well as in Adam Smith's own conceptual scheme it is worth examining this difference more closely. After describing the axiomatic basis for Free-Trade, as developed primarily in Book. IV of the Wealth of Nations , in the rest of the Introduction, section II goes on to quote from the Lectures on Jurisprudence to illustrate how the argument there differs from that in the Wealth of Nations. Section III considers the possible significance of the change in argument, which moves us away from the utilitarian framework of the "Mercantilist" literature towards the economic aspects of the natural-law tradition of moral philosophers, while Section IV considers how the change in argument may have Influenced the perception of Smith as a "politician." The argument in the Wealth of Nations , it will be recalled, is based on three axioms. Al. Individuals wish to maximize wealth. A2. Individuals know better than governments how to maximize their own wealth. A3. National wealth is the sum of individual wealth. Al and A2 establish that a policy of non-interference will make individuals richest, while A3 makes this policy socially optimal also. So

Adam Smith, with An Inquiry into the Nature and Causes of the Wealth of Nations published in 1776 is unanimously hailed as the founder of economics as a social science and also of “economic liberalism” or “capitalism” as it is called to contrast it with “socialism”, the latter propagated by K. Marx at a later date.
The group of economists that followed A.Smith, including such notable names as D.Ricardo, N.W.Senior, John Stuart Mill, culminating in Alfred Marshall (1890: Principles of Economics) is called the “Classical School” or alternately the “Manchester School” to refer to their place of origin. Their macroeconomic system is called the “Classical System” (Schumpeter 1954; Roll 1992; Hiç 1994, Paya 1997; Ackley 1961, Branson 1989; Froyen 1990, etc.). Having accepted the Malthusian law of population (T.Robert Malthus: 1798 Essays on the Principle of Population) D. Ricardo had come up with a model in which growth eventually comes to a halt, moving to that point, however, all along at full employment equilibrium (Baumol and Turvey 1970, Hiç 1994). This was also in line with the views of Adam Smith. Marshall had introduced the concept of elasticities and used the partial method of analysis. In contrast, Leon Walras, in his 1874-7: Eléments d’Economie Pure ou Theorie de La Richesse Sociale (1. ed). used the general equilibrium approach to prove that the economy arrives automatically to full employment equilibrium, following Adam Smith and the Classical School.

In alignment with classical investment theory, this study explores the enduring relationships and causal linkages among total private investment, profit rate, unit labour costs, and demand growth within the European Union throughout the period spanning from 1961 to 2019. The empirical approach adopted involves the use of advanced econometric techniques designed to address cross-sectional dependence and slope heterogeneity. As a first stage, we examine stationarity and cointegration by employing second-generation panel unit root and cointegration tests. Subsequently, we estimate long-run equations through estimators intended to control for cross-sectional dependence and slope heterogeneity. As a further step, we use the Dumitrescu-Hurlin procedure to examine potential bidirectional causality between the variables and detect whether there exists endogeneity in the data. Finally, we apply the dynamic common correlated effects estimator mean group with instrumental variables to control for the potential presence of endogeneity. The outcomes of the analysis underscore a positive association between private investment and the profit rate, unit labour costs, and demand growth, thus providing robust empirical support for the classical theory of investment.

The present work has the proposal of explaining the conception of the human nature according to the thought of Adam Smith, that is, to seek an understanding of the philosophical anthropology in the thinking of a modern philosopher and economist. In this way, the discussion will be incorporated with the main works of the author: The Theory of Moral Sentiments, Essays on Philosophical Subjects, An Inquiry into the Nature and Causes of the Wealth of Nations, Lectures on Jurisprudence and Lectures on Rhetoric and Belles Letters, to deepen the answering attempts of the moral system of Smith. However, we emphasize the first work, The Theory of Moral Sentiments, for we understand that this work establishes the major assumptions of the Modern Philosophy that approach the understanding of the philosophical anthropology, and also, by situating the discussion into the scenario of the "moral crisis" that took place during the centuries of XVII and XVIII. Another observation to make on the discussion comprises the interpretation that we understand from the method adopted by Smith, who goes by the vision of man's philosophical system and market society. So, for a moment, the theme will be addressed with elements that dialogue with other works of the thinker. In other words, we understand that the relations that magnetize the Scottish philosophical school of the "moral sense", i.e., the conditions that are signaled to the human nature about the moral sentiments, are all propositions of a modern philosophical system that are presented, later, as social and economic science. For such, the reach searched in this work intends to answer the following question: what is the place in the thinking of Smith for the Philosophical Anthropology? In this sense, the method to be adopted in the study intends to examine the assumptions of the moral system of the thinker, in the light of the logical and temporal time of what can be called as "modern moral crisis". The study still signs that the existing inter-subjectivity relation in the social and economic order is expressed by the sympathetic feelingsto feel withthat are suggested as an answer by the author to the new modern social and economic order and, to my understanding, is situated on the ground of the general rules of moral. With 9 Cf. Smith, A. Em sua principal obra: "An Inquiry into the Nature and Causes of the Wealth of Nations." 10 Mais adiante, farei exposição acerca desse juiz inquilino, isto é, desse espectador imparcial que acompanha o homem moral moderno, bem como das tentativas de outros intelectuais que buscam sistematizar um entendimento moral à época moderna. 11 Cf. Dumont, L. 'Homo Aequalis', p. 14. 21 Cf. Kuhn, T. "A estrutura das revoluções científicas.", 2005, p. 29. 22 Cf. Baiges, V. M. ps. 95-96. 23 Cf. Ross apud Wodrow, a "Teoria dos sentimentos morais" estaria "fundamentada na

The present study seeks to deepen the understanding of Xenophon's political philosophy as it is reflected in Socrates' investigation of economic knowledge in the dialogue titled Oeconomicus. The study concentrates on the six conventional parts of the oikos or household (house, things, slaves, land, horses, and wife), which are loosely connected with six facets of human life (pleasure, order, rule, leisure, enrichment, and education), as presented by the perfect gentleman (rich and successful) Ischomachus and his pupil, the (poor and wretched) philosopher Socrates. It demonstrates how the latter, learning Ischomachus' economic teaching, radically transforms it, simultaneously showing the most serious possibilities lying behind the common notions of economic and political life and the inherent limitations of their fulfillment and threatening to undermine (and, indeed, undermining, in the personal case of Socrates) said ways of life as they are conventionally perceived.

This Article has sprung from ideas put forth in my dissertation for the Stanford Law School, and has undergone several changes over the past few years. Many people have helped me form the ideas in this Article, or commented on its various versions. I would like to thank especially

Резюме: Елинор Остром променя начина на мислене за общите ресурси в икономиката. Предлаганият от нея институционален анализ показва, че групите могат да намерят решения на сложни проблеми, свързани с управлението на колективните блага. Тя демонстрира, че успешно колективно действие може да се организира и от равноправни рационални индивиди. Заедно със съпруга ѝ Винсент Остром се противопоставят на приватизацията, национализацията и
централизираното административно управление на общите блага. Вместо това те насърчават полицентричното управление като решение за много общи ресурси. Подходът става известен като Блумингтънска школа по политическа икономия, същевременно бурно развиващо се направление в теорията на публичния избор. ||
Abstract: Elinor Ostrom changed the way of thinking about common-pool resources in economics. She provided an institutional analysis that shows how groups can find solutions to complex problems for collective goods. Ostrom showed that collective action can work among rational individuals. She and her husband Vincent objected privatization, nationalization, and centralized government for governing the commons. Instead, they promoted polycentric governance as a solution for many common-pool resources. Her approach is known as the Bloomington School of Political Economy, a thriving direction in Public Choice Theory.

The Royal Swedish Academy of Sciences has decided that the Swedish National Bank Prize for Excellence in Economic Sciences in Memory of Alfred Nobel for 2020 will be awarded to Paul Milgram and Robert Wilson "for improvements in auction theory and the creation of new auction formats". Paul R. Milgram1 was born in 1948 in Detroit, USA. He received his Ph.D. in 1979 from Stanford University in Cambridge, USA, on the topic of information structure in competitive bidding. He is currently a professor in the Department of Economics and the School of Business at the same university. Doctor Honoris Causa, Stockholm School of Economics (2001).

Hayek‘s interpretation of Smith‘s invisible hand as a metaphor for the theory of
spontaneous order still holds as the only authentic interpretation of that famous phrase, despite all criticism. Although not many authors noticed it, Hegel was a theorist of spontaneous order. Namely, he was a theorist of the spontaneous order of market economy. There is evidence that Hegel followed here Adam Smith‘s teachings about the invisible hand. The invisible hand is present in Hegel‘s writings as an element, from what sprang his theory of spirit. That means that his theory of spirit is a general theory of spontaneous order, although written metaphysically. However, being a theorist of spontaneous order didn‘t prevent him from being an interventionist. He was led to interventionism by his synoptic fallacy of mind. He never tried to apply this fallacy to the studies of the market economy. Marxists did that. Some recent scholars (Sciabarra, Johnson, and Cristi) identified Hegel‘s theory of spontaneous order, but in their interpretation, they didn‘t perfectly follow Hegel‘s texts. On the one hand, these authors correctly denied Popper‘s and Hayek‘s opinions that Hegel was a totalitarian. He wasn't. At the same time, there is a need to enrich the studies of the mentioned current scholars. Here I take into account only what Hegel wrote himself, not considering later additions or corrections by other authors. This thesis is also an attempt to evaluate the history of economic thought from the standpoint of Smith‘s and Hegel‘s methodology.

Bernard Mandeville é conhecido por uma única obra, e talvez mesmo por uma única frase: 'Vícios Privados, Benefícios Públicos', justamente o subtítulo da obra A Fábula das Abelhas. Este artigo tem como objetivo discutir apenas algumas das propostas de Mandeville, expostas numa das várias partes em que se divide A Fábula das Abelhas, a saber: a crítica extremada de Mandeville à educação das classes trabalhadoras de sua época. Foi esse ensaio que primeiro chamou a atenção do público e começou a fazer do médico holandês, transformado em escritor britânico, uma figura mal quista. Trata-se, no final, de tentar relacionar as ideias de Mandeville sobre a educação para os pobres com sua teoria principal sobre o social.

Собствеността е една от най-важните категории на икономическата система и е сред най-популярните като обект на икономическата теория. Съвсем бегла справка за броя на резултатите в специализираната академична търсачка на Scholar Google дава над 2,2 млн. заглавия само за права на собственост (property rights), плюс над 10 хил. за теория за правата на собственост-ТПС (property rights theory), а ако се добавят и изследванията, свързани с другия английски термин "ownership", общият им брой става огромен. В същото време собствеността

* licenciado en economía por la Facultad de ciencias económicas, universidad de Buenos aires, argentina. Posgrado en economía, universidad de Buenos aires, argentina. asesor económico en la secretaría de comercio del Ministerio de economía de la argentina. unidad asia, África y oceanía, y MERCOSUR.

This paper focuses on a key concern of the Cambridge capital controversies: Sraffa's theoretical demonstration that competitive relative prices, and hence the money value of aggregate capital, can vary in complex ways as the wage share (profit rate) changes. We find that, on the contrary, individual prices are usually linear or mildly curved. We develop a formal measure of curvature, and find that average price curvature does not fall with matrix size as proposed in Brody's random matrix hypothesis. Since the average curves are near-linear, it follows that aggregates such as capital, wages, and net output will exhibit the same behavior. We believe this explains the widely observed near-linearity of the wage–profit curve.

RESUMO: O objetivo deste artigo é mostrar que o trabalho de Adam Smith é realmente unificado, como pode ser visto a partir dos conceitos fundamentais que permeiam tanto a Teoria dos Sentimentos Morais quanto a Riqueza Das Nações. Essa abordagem opõe-se à leitura canônica da obra de Adam Smith, no sentido de que ela une quatro conceitos-chave aninhados paridades em uma cadeia sucessiva de três grupos que se cruzam, levando, finalmente, ao entendimento unificado de sua contribuição, aparentemente disperso em várias partes independentes. Os quatro conceitos organizados em três grupos são: experiência e imaginação, imaginação e moralidade e moralidade e interesse próprio. A conclusão, de acordo com Adam Smith, é que The Wealth deve ser lido à luz do TSM; a mão invisível retribui a moralidade real, a economia e a moral se reúnem sem nenhum conflito sob a justificativa da ordem social fornecida pelo mercado.

RESUMO O objetivo do artigo é recuperar a unidade da obra da Adam Smith apontando para uma reconciliação inevitável do autor, da obra e do nascimento da economia com a filosofia. Num primeiro movimento, o texto transita pela história das idéias da modernidade sublinhando as idiossincrasias e dificuldades da ruptura da economia com a filosofia moral. Explora a tensão existente entre a resposta fornecida pelo autor a uma importante questão filosófica dos modernos e a busca pelos fundamentos autônomos da economia. Num segundo movimento, o artigo recupera na História do Pensamento Econômico o chamado Das Adam Smith Problem, apresentando as duas teses opostas sobre a obra: a da unidade e a da ruptura. Advogando a unidade da obra, o artigo tece as relações existentes entre a Teoria dos sentimentos morais e a Riqueza das nações.

Basic innovations and their diffusion, the expansion or contraction of the level of economic activity and the volume of international trade, rising sovereign debts and their defaults, conflicts and the outbreak of wars, are some of the major phenomena appearing during the downswing or upswing phases of long cycles. In this article, we examine the extent to which these phenomena constitute stylized facts of the different phases of long cycles which recur quite regularly in the turbulent economic history of capitalism. The main argument of this paper is that the evolution of long cycles is a result of the long-run movement of profitability. During the downswing of a long cycle, falling profitability induces innovation investment and the associated with it "creative destruction" of the capital stock that eventually set the stage for the upswing phase of a new long cycle.

Slouching toward an illusion and scurrying toward a delusion: A COVID19-shocked doughnut model economy By Voxi Heinrich AMAVILAH a † Abstract. An easy way of observing and predicting changes in the structure and behavior of any free-market economy is to track changes in its circular flow model of economic activity. Using book titles as a literature review in combinations with a few classics, I describe how the circular flows of free-market economies evolved from little, gentle, and now nearly powerless government role, culminating in super-duper capitalism. First the evolution generated great wealth and income, and of late also increasing inequality. Processes like globalization that allowed for economic convergence also spurred enormous tensions. The resulting stresses and strains are responsible for unpopular populism and nationalism. The doughnut economic model provides a reasonable framework for explaining what we observe. It shows a decline in the social foundations of human rights, made worse by breaches in the "planetary boundaries" both of which squeeze the livable space ever more tightly like a boa-constrictor suffocating its prey. In this paper I do not go as far as measuring my observations, but the directions for policy and future research have clearly been established. Regarding the latter, one may want to examine how COVID19 has shocked into scurrying towards a delusion of a system that was already slouching towards an illusion. It turns out that the illusion is not a new prediction. In his critique of Marx and rationalization of Kondratieff's waves (K-waves) Schumpeter predicted that capitalism as an innovation is not immune to the "gale of creative destruction.

A particular aspect of the labor theory of value, whether put forward by the classics or further developed by the moderns, is that this theory is usually focused on the cause, measure and variations of value without distinguishing the value of commodities, as " products of labor" , and the value of " labor as labor". This trend originated with Adam Smith himself in those ambiguous parts of his work where he seems, first, to confuse these concepts as if there were no difference between the point of view of an individual and the point of view of the whole society (Wealth of Nations, I.v.3); and where he seems, secondly, to contradict himself when introducing the important distinction between " work done" and " work to be done" in his public-mourning example (Wealth of Nations, I.vii.19) 2. The main consequences of Adam Smith' s inaccuracies on these crucial issues can be detected in the Ricardo-Malthus controversies concerning the theory of value in general (starting from the principles of labor embodied and labor commanded) and of the value of labor in particular (starting from the role played by the principle of demand and supply in determining this value). At the roots of these controversies is, as is well known, Ricardo' s rejection, and Malthus' s support, of the principle of labor commanded along with Ricardo' s confinement of the principle of demand and supply to the determination of market prices, in contrast with Malthus' s extension of this principle to the determination of natural prices, including the natural price of labor. The conflicts between Ricardo' s and Malthus' s theories of the value of labor are brought to the fore in different parts of their Principles and are then amplified, first, in their voluminous correspondence and in Ricardo' s Notes on Malthus' s Principles [(1821)1951-1973, Vol. II] and, secondly, in Ricardo' s Notes on Malthus' s ' Measure of Value' [(1823)1992]. In all these circumstances the terms value and labour have been sometimes used without paying due attention to the different concepts they convey depending on whether these terms are used to mean the use

The aim of this paper is to focus, within Adam Smith's system of thought, on the various aspects of the twofold link between the accumulation of capital and the demand for labor, on the one hand, and between an increasing population and increasing wages, on the other. This link is examined, first, in the light of the relationship between the principles of self-interest and competition; and, secondly, in support of the possibility (neglected by Smith) that the long-run supply of labor may fall short of the long-run demand for it. The paper's main argument is that this possibility is peacefully implemented in advancing economies by the "uniform, constant, and uninterrupted effort of every man to better his condition" which lies behind a continuous process of capital accumulation (including technical progress) along with the birth control techniques so widely used in our times.