Economic Policy Recommendations Research Articles

The Academic Jungle: Social Practice and the Survival of Economic Ideas

This paper uses an evolutionary model to analyse the replication of points of view within the economics profession. The model is capable of two very different interpretations regarding the production of knowledge claims. One is labelled the "social practice" approach, while the other is labelled the "intellectual appeal" approach. These competing interpretations have profound implications for understanding the intellectual composition of the economics profession, which in turn has ramifications for the understanding of economic knowledge and economic policy recommendations.

Economic Prospects and Policy Recommendations

As has been noted by other commentators, the economy is at a state in the cycle at which policy mistakes have often been made in the past. The need to correct these mistakes may have been a factor leading to subsequent recessions. It would be prudent both to restrict the growth in demand and take steps to improve the budgetary position. Budgetary tightening would achieve both these goals.

The fate of economics and the role of economists

Academic economists have become more partisan and mathematical in their training and in their role as observers and predictors of economic events. The result of such an educational mind set and agenda has led economists to search for precise and politically correct answers to economic problems. Instead of looking for possible solutions to these problems from a broad social science multi-discipline approach, they have turned to mathematical models which point to definitive answers and which, based upon the assumptions of the model, support the political agenda of those involved. The result is a quantitative partisan perspective on economic events which does not bode well for economic policy recommendations.

Inflation in the czech republic in the mid-nineties (a comparison of alternative explanations)

The aim of the present study is, firstly, to organize existing theoretical approaches to the explanation of inflation in the Czech Republic. Secondly to investigate to what extent the rate of inflation in the Czech Republic was determined by the growth of the money stock and to what extent by the development of wages and productivity of labor. Chapter 1 gives a general description of inflation in the Czech Republic. Chapter 2 offers a list of its existing theoretical explanations. Chapter 3 contains a brief summary of the previous empirical research. Chapters 4, 5 and 6 contain our empirical model, its interpretation, and recommendations for economic policy and for further research.

Interpersonal comparisons of utility: positive, normative or value-laden?

The paper examines whether interpersonal comparisons of utility have to be interpreted as positive, normative or value-laden. It suggests first that recent arguments advanced by John Davis which appeal to the functional role of utility comparisons neither suffice to characterise utility comparisons as value-laden nor warrant the derivation of specific normative conclusions. An alternative approach is then developed which focuses on the extent to which value judgements are necessary in the course of making utility-comparisons. This approach is then applied to the notion of utility comparisons and to the concept of efficiency. It is argued that value-judgements do not provide a sufficient basis for deriving economic policy recommendations from interpersonal comparisons.

Economic Prospects and Policy Recommendations

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Zwischen Kelch und Lippe

Many of the typical economic policy recommendations, especially those of neo-classical economists, are often hardly covered by their own theoretical findings. Despite this, such recommendations are made and followed. The article not only lists a number of examples for this disproportion, but also analyzes the social causes of this phenomenon using the example of the USA.

Economic Prospects and Policy Recommendations

Economic conditions continue to improve, with growth at a satisfactory rate and inflation subdued, whether one considers the UK in particular or the world economy in aggregate. This cheerful prospect may be threatened however by financial developments, with some turbulence in foreign exchange markets and uncertainty about the future of monetary policy. In the UK this uncertainty is particularly acute following the surprise decision not to raise short-term interest rates in May.

The feminist challenge to neoclassical economics

This paper describes a feminist research agenda within economics, how some of the research priorities have been accommodated within neoclassical economics, and how others fundamentally challenge the neoclassical economic paradigm. There are three major challenges to neoclassical economics raised by feminists. First, women are invisible in much economic analysis and this situation needs to be remedied. Second, tests may be affected by educational, social, and economic institutions. We need a feminist model of endogenous preferences and to incorporate the endogeneity of preferences into welfare economic analysis and policy recommendations. Finally, institutional structures matter and deserve careful analysis. (c) 1993 Academic Press, Inc. Copyright 1993 by Oxford University Press.

The Global Flea Market: Migration, Remittances and the Informal Economy in Tonga

ABSTRACTSome common assumptions about the form and use of migrants' remittances in the South Pacific are examined and questioned in the light of information from a micro‐economic study of one group of remittance recipients in the flea market of Nuku'alofa, the capital of the Kingdom of Tonga. The findings of this study suggest that economic analysis and policy recommendations based on the existing macro‐economic data on recorded remittances and other economic aggregates should be treated with caution. The unrecorded inflows of remittances in kind and the associated spread of the domestic informal sector have had some important implications for the functioning of Tonga's economy. There is some evidence to suggest that the growth of informal, international trade is fostering other significant changes in the domestic economy. The functioning of remittance‐dependent economies such as Tonga is much more complex than existing economic analysis suggests, and involves substantial investment – not just consumption – with the emergence of entrepreneurs and the manipulation of dependence, rather than merely passive receipt of cash and expenditure focused on consumption.

ON THE NON UNIQUENESS OF COMPETITIVE EQUILIBRIUM WITH AN INTENSIVE MARGIN

Adding an intensive margin, such as working time, to a simple two-factor general equilibrium model of efficient contracts yields at least two perfectly competitive equilibria under simple and intuitive assumptions, such as nonwage labor costs. Longer hours or greater division of labor are associated with lower workers' utility and a higher return on capital in respective equilibria, so distributive conflict appears to be unavoidable even in the choice of competitive equilibrium. The quasi-normative implications of a unique, efficient market allocation that have formed the basis of economic policy recommendations since Adam Smith lose their foundation. Copyright 1993 by Scottish Economic Society.

Beyond blue economic horizons: U.S. trade performance and international competitiveness in the 1990s

Foreword by Peter G. Peterson Preface U.S. International Competitiveness Trade Deficits and International Competitiveness: Two Key Problems of the 1990s Determinants of International Competitiveness The U.S. Trade Deficits The Dominance of Manufactures Trade Causes of the Trade and Current Account Deficits Implications of U.S. Trade and Current Account Deficits The U.S. Debtor Position and Foreign Direct Investment Global Adjustment Problems Narrowing Global Imbalances: Central Problem of the 1990s Trimming the U.S. Trade and Current Account Deficits: How It Wll and Won't--Occur Trading Partner Adjustment Problems Implications for LDC Debtors Coping with the Future Policy Alternatives Making U.S. International Economic Policy Conclusions and Recommendations Bibliography Index

Metaphysics, MSRP and Economics

Lakatos' MSRP is utilized to provide a response to Koertge's claim (in her ‘Does Social Science Really Need Metaphysics?’) that the heuristic significance of metaphysics has been vastly overrated. By outlining the hard cores and positive heuristics of the two major research programmes in economics (namely, the ‘orthodox’ and ‘Marxist’ research programmes), the paper demonstrates (in opposition to Koertge's claim) not only that the metaphysical statements in the respective hard cores are far from vague but also how these exert an important regulative influence both on the theories and economic policy recommendations generated within the respective programmes. It also indicates how the adoption of the MSRP method of appraisal in economics would help to protect against the danger of entrenched metaphysical dogmatism with its implications not only for economic policy recommendations but also for moral and political recommendations.

The Passage from Theology to Economics

Beginning with value premises of any kind, clearly one may judge the economic choices of individuals, since they are only part of moral behaviour in general. But my concern here is with the institutions which both shape and are shaped by behaviour, and which are greatly responsible for social good and evil. How successfully may one get from theological values underpinned by religious faith and dogma to valid judgements and recommendations for economic institutions and policy? Further, must they be contingent on the intervention of economic science, introducing specialised information and analysis and such goals as cost and output efficiency? These are the matters I propose to discuss in general terms and illustrate from Laborem Exercens and Ethical Reflections on the Economic Crisis to reach some conclusions.

Energy Policy: An Optimal Allocation Approach

Any system of ideas which underlies economic policy recommendations needs to be made explicit so that its doctrinal premise may be examined and debated. Section I of this paper, therefore, explicitly states the philosophical under -pinning of this study. Section 2 presents the central energy problem in a general mathematical form whereas the solution of the specific energy problem for the Pakistani economy is presented in Section 3, in which policy guidelines for obtaining the desired solution have also been discussed. Finally, Section 4 briefly presents our concluding remarks.

‘The optimality of socialist development strategies: An empirical inquiry’ By Josef C. Brada, Arthur E. King and Don E. Schlagenhauf

These Comments state that the model on which the computations and conclusions of the paper are built is a very interesting exercise towards building an econometric model that can be used to analyse long-run development problems of a socialist country. The model, however, has some weaknesses and cannot be used to substantiate economic policy conclusions or recommendations regarding the fundamental problems of socialist development policy. The evidence offered in the paper is therefore not convincing enough to refute the argumentation that a more balanced investment structure giving greater weight to agriculture and services, as well as to the less developed regions seems advantageous.

The 1978 annual report of the bank for international settlements: An examination of its economic analysis and policy recommendations

The 1978 annual report of the bank for international settlements: An examination of its economic analysis and policy recommendations

Relative prices, income distribution and stabilization plans: The Argentine experience, 1967–1970

The objective of this paper is to analyze the anti-inflationary plan applied in Argentina in 1967, a plan which did not eliminate inflation. With respect to the failure of this plan, two different explanations have been offered: one according to which the problems were essentially political, and another, which maintained the program contained basic technical flaws. From the analysis of this paper it is clear that the truth lies much closer to the second explanation. In the last section of the paper, economic policy recommendations relevant for future anti-inflationary plans, be they implemented in Argentina or in other inflationary economies, are presented.

OBSERVATIONS SUR LA SIGNIFICATION DES TERMES D' ÉCHANGE DES PAYS SOUS-DÉVELOPPES

SUMMARY Having defined the terms of trade, the author deals with the restrictions resulting from their use, for instance, in their statistical application, and, he gives a survey of the theories on the subject. He goes on to examine the various views on the terms of trade between primary commodities and manufactures and on those between developed and developing countries. However, generalizations on the matter are difficult. The widely di-vergent opinions are due in great part to uncomplete and defective statistical material. The trend of the terms of trade between primary commodities and manufactures and between developed and developing countries (which is not necessary the same) has but little significance. It is therefore to be regretted that economic policy recommendations are based on the assumption that the terms of trade will deteriorate. This is in fact what happened in numerous papers prepared for the two UNCTAD-conferences. There is no relationship between the terms of trade and economic development. The author concludes that the use of the terms of trade is to be avoided, except, in the last resort, for the study of a specified country and for a period not longer than some years. Moreover, an appropriate comment, for instance, on the productivity trends and the quantities traded, is necessary. The developing countries have, therefore, no interest in giving priority to the terms of trade.