Neoclassical Theory Research Articles

От противоречий экономики к возможностям ноономики: концептуальное переосмысление

The concept of the modern world economy systemic crisis as a derivative of the neoclassical economic theory systemic crisis has been articulated. The economic mainstream with its theoretical foundation full of structural internal contradictions and development constraints is experiencing increasing difficulty in its systemic projection of the ways and forms the brand new economic model of social interaction will arise. It is proved that the new type of material production should be modeled on the − criteria of the movement from the narrow and unperfect parameters of market self-organization that significantly transform traditional capitalist relations to the solidarism principles that socialize the social and economic structure. In this process, the key role must be given to the comprehensive progress of human creativity based on the highest criteria of human intelligence and culture.

ТЕОРЕТИЧНІ ТА МЕТОДИЧНІ АСПЕКТИ ЕФЕКТИВНОСТІ АГРАРНИХ ПІДПРИЄМСТВ

The article examines the theoretical and methodological aspects of the efficiency of agricultural enterprises. Summarizing the theoretical development of foreign and domestic scientists gives grounds for the conclusion that modern methodological approaches to determining efficiency are based on the provisions of neoclassical and institutional theory, which reveal the potential and actual possibilities of using factors of production, depending on the scale of activity. It is noted that quantitative and qualitative characteristics of land, labor, fixed and working capital are generally used to determine the efficiency of agricultural production. It is emphasized that, taking into account the multifacetedness of the category "efficiency" as a complex of natural, economic, social, scientific and technical conditions of the interaction of productive forces and production relations, the following types of efficiency are distinguished: technological, economic, social and ecological. Extensive and intensive methods of extended reproduction of labor force, means of production and natural resources are analyzed. It is noted that the efficiency of agricultural production depends primarily on the efficiency of the use of all its resources, which are factors of production, such as land, capital, labor and entrepreneurship. In agriculture, natural resources, as a factor of production, primarily mean agricultural land. Therefore, one of the main indicators of economic efficiency is gross production, gross income and profit obtained from one hectare of agricultural land, arable land or crops. It is concluded that an important form of increasing the efficiency of agriculture based on its intensification is the expansion of the reproductive process, the implementation of the results of scientific and technical progress, the implementation of methodical approaches to the assessment and management of risk factors affecting the development of entrepreneurship. This makes it possible to increase production output, increase labor productivity and reduce unit costs.

Well-Being and Equity: A Multi-Disciplinary Framework for Rethinking Education Policy

ABSTRACT We are living in an era in which equity in education is framed and measured through individual academic achievement. Schools are viewed as economic engines for a better life . By virtue of providing adequate preparation for entering the economy and gaining a well-paying job, they are construed as capable of closing the opportunity gap. This misguided and ahistorical notion of equity fails to account for the nested nature of students, families, communities, and cities, and it disregards centuries of policy decisions that have shaped unequal conditions in communities and schools. While neoclassical economic theory has only more recently come to influence education, it has long driven national and international economic development. We know from research in the fields of human, community, and sustainable development that this economic approach does not attend to the spectrum of noneconomic needs that being met allow for individuals and communities to thrive. Nor does this approach address the roots of structural inequality. This paper draws from those fields to present a conceptual framework that can guide policymakers, researchers, and especially school, district, and state leaders to (re)consider the ways policy decisions challenge inequity. It does so by asking these stakeholders to center humanity through prioritizing intergenerational individual and community well-being. Further, the framework highlights the capacity of schools to serve as the driver of community uplift. Finally, this paper suggests that policy actors and practitioners participate in cross-sector collaboration to design policies that allow individuals, communities, and schools to flourish.

CRISE NA PERIFERIA: A CONCEPÇÃO DE “CRISE” NO DESENVOLVIMENTISMO LATINO-AMERICANO E EM RAÚL PREBISCH, ANOS 1929-1980

Abstract This article offers a study of the uses of the concept of crisis in Latin America in the context of Dependency Theory and Developmentalism. This conceptual history of “crisis” in twentieth-century Latin America identifies the intellectual trajectory of Argentine economist Raul Prebisch as a starting point and narrative thread, followed by the iconic sociological products of, or influenced by, the Economic Commission for Latin America and the Caribbean (ECLAC/CEPAL). The trajectory of the concept of crisis in the region begins with a concrete temporal application referring to specific historical critical moments or junctures. Based on Prebisch’s work, it shows how a fundamental conceptual shift may be observed during the crisis of the 1930s, when crisis is conceptualized as an opportunity that leaves “the lesson” of an urgent need to revise neoclassical economic theory, promote industrialization, and to deeply restructure the role of the State in the region. Later, in the late 1950s and in the context of CEPAL and Development Sociology, the concept changed from a conjunctural to a structural meaning. The article tackles other temporal applications, such as cyclical crisis, structural crisis, and permanent crisis.

Концепція формування інституціонального середовища управління енергетичною безпекою

The purpose of the article is to develop a conception for the formation of an institutional environment for energy security management, taking into account factors of external and internal influence. According to the results of the carried out study, it can be said that the transformation of the State system and the economic system, accompanied by centrifugal tendencies in the spheres of institutional management and the economy of the fuel and energy complex, has led to the emergence of a number of general, interrelated tendencies, among which are: changing the role of defining and expanding the conceptual mechanisms of market interaction between business entities; decentralization of service management in general, transfer of powers to the regional level; liberalization of prices for goods and services; change in qualitative and quantitative parameters of the functioning of enterprises of the fuel and energy complex. It is determined that along with the development of the enterprise, there is an objective need to eliminate the state of uncertainty and establish control over risks, and with the achievement of maturity, the business entity is «included» in the process of forming a conceptual institutional environment. The activities of economic entities in the modern economy cannot be analyzed from the point of view of neoclassical theory, since its methodological and categorical basis is insufficient for adequate analysis and explanation of economic phenomena in dynamics, for this it is necessary to form an institutional approach. It is determined that the systematization of institutions as elements of the institutional environment of economic entities of the fuel and energy complex allowed to identify their conceptual multilateral and multi-level nature.

Internal Adjustment Costs of Firm-Specific Factors and the Neoclassical Theory of the Firm

Internal Adjustment Costs of Firm-Specific Factors and the Neoclassical Theory of the Firm

Internal Adjustment Costs of Firm-Specific Factors and the Neoclassical Theory of the Firm

Internal Adjustment Costs of Firm-Specific Factors and the Neoclassical Theory of the Firm

МІЖДИСЦИПЛІНАРНІ ЗВ’ЯЗКИ ЕКОНОМІЧНОЇ НАУКИ: СВІТОВА ТА УКРАЇНСЬКА ПРАКТИКА

The article considers a problem that has significant theoretical and applied significance for understanding the economy as a field of knowledge without which it is difficult to imagine the existence of modern human community. This is due to the comprehensive role of economic activity for social reproduction. It is from this angle that the interdisciplinary links between economics and related social and behavioral sciences are explored. The purpose of the study is to compare the world and Ukrainian practice of identifying interdisciplinary links of the economy. The following tasks have been formulated for her implementation: revealing the essence of interdisciplinary ties; characteristics of ways of interdisciplinary connections of economic science; identification of distinctive and common features of world and Ukrainian practice of presenting the interdisciplinarity of the economy. Given that behavioral economics has a fairly strong tradition in foreign scientific thought, analyzed of world and Ukrainian practice of identifying interdisciplinary links of economics with psychology, political science, sociology and other sciences. This is the scientific novelty of the study. It was found that the formation of behavioral economics was largely due to the implementation of the theoretical apparatus of psychology in the process of managerial decision-making, which more adequately than the cognitive tools of neoclassical theory, characterizes the behavior of individuals in changing environments. A comparative analysis of world and Ukrainian practice in determining the interdisciplinary links of the economy shows some differences between them. Foreign scholars, first, focus on the behavioral component of economics as a social and behavioral science. Secondly, to this field of knowledge in addition to economics, political science, psychology, sociology, they also include anthropology together with archeology, management and public administration. Third, foreign interdisciplinary discourse is based on a bibliometric approach that favors quantitative indicators of interdisciplinarity. Ukrainian practice of interdisciplinary economic ties is characterized by increased attention to social aspects that should be taken care of by economic, political and sociological science. World and Ukrainian practice is united by a common research field related to identifying trends and determining forecasts of social development. Prospects for further scientific research in this area are outlined.

On the normativity of mainstream economics (what a positive economic theory may look like)

It is shown in the article that there is no fundamental difference between normative and positive theories either in terms of development methods or internal architecture. It is substantiated that the modern neoclassical theory as a whole is not positive. Another way of developing a positive microtheory based on the approach of Maurice Allais is proposed: the concept of searching for surplus within the framework of the cost approach.

Креативная экономика патерналистского государства: что день грядущий нам готовит?

The paper presents the author’s view on the formation of economics of culture which was acceded to the neoclassical theory as a branch science only in the second half of XXth century with the inherent law of «price disease» causing deficiency of income of cultural goods producers. The present stage of the development of this science is determined by the modern theory of economic growth where the hypothesis of dependence of total factor productivity on intangible assets is presented as an innovation allowing discovering inner resources of culture and other creative economy branches which fundamentally change their position in the economic world. The question is about the economic valuation of the results of cultural activity, including copyrights that were transformed into intellectual property. At the same time, the article formulates a contrary assessment of the concept of cultural industries, which can only become an additional reason for the financial authorities to reduce the amount of budget subsidies to producers of cultural goods.

Internal Adjustment Costs of Firm-Specific Factors and the Neoclassical Theory of the Firm

Internal Adjustment Costs of Firm-Specific Factors and the Neoclassical Theory of the Firm

The Impact of Environmental Sustainability and Financial Resources Utilization on Firm Financial Performance: The Mediating Role of Leadership Styles

The paper aims to explore the impact of environmental sustainability and financial resources utilization on a firm’s financial performance through the mediation of leadership style in the manufacturing sector of Pakistan. First, a conceptual framework is devised among the relationship of exogenous and endogenous variables and the hypotheses are examined conferring to the relationships in the conceptual framework. Data is collected using a questionnaire from a sample of 47 registered manufacturing firms (Chemical, Pharmaceuticals). Then, the study is supported by neoclassical theory, resource-based theory, and financial slaked theory, multiple regression analyses are implemented with the data analyzed by the partial least square equation. The research results indicate that the utilization of financial resources has a positive relationship with firm financial performance. In the short run, the adoption of environmental sustainability is negatively related to the firm financial performance with a transactional leadership style, but in the long run, it will give positive impacts on the firm financial performance with transformational leadership. The comparative analysis of Leadership styles showed that transactional leadership style mediates better results than transformational leadership for the manufacturing sector of Pakistan. The study affords the modern ways, provides new insights to organizations, top management, and policymakers for the implementation of environmental sustainability and leadership skills for enhancing firm performance.

Transatlantic Relations under Trump Administration and the National Interest Policies in Europe

This paper bases on the research related to the change of US - EU relations under Donald Trump administration in the United States and its effect on the EU member states' pursuing autonomous policies. Recent analyses reveal that under the Trump administration, there has been a change of traditional economic and political relations with the EU member states. How this policy change affected the EU member states has not received much attention. The analysis reveals Trump's questioning the function of NATO and putting tariffs on the products of the EU, supporting Brexit process and having close relations with the far-right leaders of Europe present important evidence of this policy change. This change has been visible in parallel with the leading European countries' creating their own foreign and domestic policies related to increasing the power of anti-EU political parties such as in Poland, Hungary, and the United Kingdom. The analysis thus suggests Trump’s approach to these countries encouraged them to pursue autonomous policies. Moreover, current President of the US, Joe Biden’s connivance of European politics shows the continuation of this policy even without direct support to the far-right leaders of Europe. With the neoclassical realist theory informed analysis, this paper aims to present the effect of Trump administration's restructuring attempts of US - EU relations on EU member states' pursuing autonomous policies.

Biases in Managerial Decision Making: Overconfidence, Status Quo, Anchoring, Hindsight, Availability

Decision-making processes occur with the interaction of some cognitive and psychological variables. Neoclassical theories deal with rational reactions in these processes. However, in an environment where there is no information or where there is uncertainty instead of risk, decisions cannot be made rationally as the mind indicates. In this direction, firm managers have to make many decisions under uncertainty. For this reason, managers resort to various simple and useful shortcuts called bias for different reasons. In this study, it was aimed to reveal the effects of behavioral biases on management decisions. In this context, five biases in the behavioral finance literature, namely overconfidence, status quo, anchoring, hindsight and availability, were evaluated with theoretical and empirical studies and their effects on managerial decisions were discussed. It was seen that raising awareness of these biases in terms of managers provides benefits such as realistic evaluation of themselves, giving more realistic weights to events when making decisions, reaching rational judgments more easily and being open to innovations. In addition, this awareness, when combined with the emotional competencies of managers, helps them make successful decisions.

India’s Withdrawal from Regional Comprehensive Economic Partnership (RCEP)

The Sino-US competition in the Indo-Pacific has become a central issue in international relations and how the competition of both countries affects state behavior. This article attempts to provide explanations of India's behavior in deciding to leave the Regional Comprehensive Economic Partnership (RCEP) agreement by using the neoclassical realism theory. Neoclassical realism believes that the actors' behavior is influenced by the constellation of international structures and domestic constellations. India's exit from RCEP was influenced by structural changes in the Indo-Pacific region, with the loss of China's balance of power marked by the withdrawal of the United States from the Trans-Pacific Partnership (TPP). Moreover, the condition has been exacerbated by the pressure received by Narendra Modi at the domestic level with the emergence of rejection of India's involvement in RCEP. It has influenced Narendra Modi's perception, who was active in the region with the two factors above, decided to resign from RCEP.

The Model of Bounded Rationality: a New Methodological Tool of Economic Theory

The main purpose of this article is to study and analyze the economic behaviour of market participants in real conditions, and to outline the very natural trait of individuals to show bounded rationality. The theoretical framework of bounded rationality is presented, and a comparative analysis is carried out between the neoclassical theory of rational behaviour and the concept of quasi-rational economic agents according to behavioural economics. Special emphasis is placed on the correlation between the decisionmaking process and the concept of limited rationality. This article confirms the thesis that the model of the rational economic individual is not the best model. Research in this area proves that this model has great imperfections, but, at the moment, the empirical material is still not enough to create another, newer and practically applicable model of behaviour of the real economic person, which is characterized by bounded rationality.

Understanding the Socioeconomics of International Migration Decisions and Outcomes Through the Capability-Based Migration Framework

Abstract This dissertation critically reviews neoclassical migration theories and conceptualises the capability-based framework as a prospect in migration theory. I show that most of the neoclassical migration theories were formed in the twentieth century. They therefore require an update to accommodate contemporary migration dynamics. I argue that a multifaceted and multidimensional capability-based approach that centralises human agency and capabilities can address the earlier theories’ shortcomings. Hence, I adopt the capability-based migration framework as the main framework in my dissertation. The dissertation differs from previous empirical studies in its unique methodology and exceptional attention to the grey areas in the migration discourse. Using data from prospective Nigerian migrants living in Nigeria, actual migrants living in Italy and a collection of secondary data sources, the dissertation addresses three research questions: how do capabilities influence migration decisions in the home country; what are the capability-depriving constraints faced by migrants in the host country; and how do migrants contribute to capability improvement in the home country?

Relation Between the Low Frequency GAM and the Neoclassical Flow

Since the magnetic field strength is not constant on the magnetic flux surface, the flow also varies so that the density compression occurs along the poloidal direction. Since the inhomogeneous flow causes the density compression in the poloidal direction, the parallel flow is also perturbed. In this study, we investigate the effects of the parallel flow perturbation on the geodesic acoustic mode (GAM) when it is described by the kinetic approach. Using the continuity equation, it is shown that the flow perturbation in the geodesic curvature direction is balanced by the lowest-order term of the density perturbation in , and the flow perturbation in the parallel direction is balanced by the higher-order terms of the density perturbation. Since the density perturbation includes both the perpendicular and parallel flow perturbation contributions, the GAM frequency obtained by the kinetic approach has the parallel flow perturbation contribution, which is 1/ term in the GAM frequency equation. The low frequency branch of the dispersion relation is also discussed to demonstrate the connection between the GAM theory and neoclassical theory for the first time. It is shown that the flow perturbation in the geodesic curvature direction is balanced mostly by the parallel flow perturbation. It means that the flow in the flux surface is divergence free approximately as in the usual transport ordering. Thus, the poloidal flow goes to the neoclassical flow when the low frequency branch is taken.

Technological progress spillover effect in Lithuanian manufacturing industry

Research background: Various methods for technological progress assessment and evaluation exist in the context of economic development. Each of the methods possesses distinct advantages and disadvantages in analysis of technological progress fluctuations. For most neoclassical growth theories, technological progress measures are included as exogenous variables, thus excluding evaluation of factors influencing technological progress variation throughout time.
 Purpose of the article: The aim of this article is to offer improvements on classical technological progress evaluation methodologies for manufacturing industries, separating effect of intersectoral technological progress spillover effect from internal factors influencing technological progress growth and perform analysis in the case of Lithuanian manufacturing industry.
 Methods: Earlier research papers used linear time series regression and vector autoregression methods to assess technological progress values and define equations explaining effect of different manufacturing level indicators on technological progress measure growth. This research paper uses results of previously mentioned methods and performs simulation analysis applying agent-based modelling framework.
 Findings & value added: The conducted vector autoregression analysis has showed that two variables which influence technological progress most significantly are labor productivity measure and gross profit value. Sensitivity analysis emphasizes that effect of these two variables on technological progress growth is substantially different. Increase in gross profit value affects technological progress growth for wider range of sectors from Lithuanian manufacturing industry (15 out of 18 analyzed sectors? technological progress measure values are affected by changes in gross profit, while changes in labor productivity influence technological progress values in the case of 9 sectors). Rising gross profit values also produce intersectoral technological progress spillover effect more significantly, while growth in labor productivity measure has stronger effect on technological progress fluctuations for sectors which are able to exploit this effect. Presented research suggests improved methodology for intersectoral technological progress spillover effect assessment in the context of manufacturing industries.

Recent developments in engineering design for the quasi-axisymmetric stellarator CFQS

A quasi-axisymmetric stellarator, the CFQS, has been designed as a joint project of the National Institute for Fusion Science and Southwest Jiaotong University to prove intrinsic advantages of quasi-axisymmetry. Principal parameters of the CFQS are as follows: the major radius is 1 m, the magnetic field strength is 1 T, the aspect ratio is 4, and the toroidal periodic number is 2. The magnetic field configuration is designed based on that of the CHS-qa. Enhanced confinement properties within the context of neoclassical theory are achieved by its quasi-axisymmetric configuration. In the entire radial range, the magnetic well is retained to keep favourable stability features in the magnetohydrodynamic equilibrium. A magnetic field coil system was designed for the CFQS, which consists of 16 modular coils, 12 toroidal field coils, and 4 poloidal field coils. The supporting structure is designed to withstand strong electromagnetic force under 1 T operation, maintaining enough space for heating and diagnostic systems. The mock-up modular coil with the most complicated shape was constructed by Hefei Keye Electro Physical Equipment Manufacturing Co., Ltd. to check manufacturability and the achieved accuracy. A heat-run test was performed to check the temperature rise of conductors, and the capability of 1 T operation was confirmed. After various tests for the mock-up coil, construction of actual modular coils and the vacuum vessel has begun.