Neoclassical Economic Perspective Research Articles

Real estate in the home country: Why Polish migrants keep properties in Poland

AbstractReal estate is often the most visible contribution that emigrants add to their home country's landscape. Such properties serve different functions, from rental investments, through migrant families' homes, to holiday homes or empty spaces. Economists often view real estate through financial lens, frowning upon vacant houses. I argue that keeping vacant houses is often caused by social and emotional factors rather than financial ones. This article uses data from 120 qualitative interviews with Polish EU migrants and juxtaposes them with the typology of remittance houses proposed by Boccagni and Erdal. The data, combined with the theoretical perspective of Neoclassical Economics, New Economics of Labour Migration, and Grzymała‐Kazłowska's concept of social anchoring, allow me to improve the typology. The updated typology systematises the functions of and reasons why migrants keep properties in their home countries and provides a sound frame for future research and policymaking.

A social-ecological systems perspective on dried fish value chains

Small-scale fisheries (SSF) support over 90% of the 120 million people engaged in fisheries globally. Dried fish is an important sub-sector of SSF, which is characterized by declining social, economic, political conditions of people involved in its production, and the ecosystems they depend on. Dried fish accounts for 12% of the total fish consumption globally but can increase up to 36% in low-income countries. About half of the people involved in dried fish production and marketing are women. The approach taken to analyse dried fish sector has so far followed a narrow subset of commodity chain approaches with a focus on financial value, transmitted in a linear ‘vertical’ fashion across value chain actors. Existing value chain approach fails to factor the non-capital relationships of dried fish that are contingent upon specific histories, ecologies, peoples, places, and the practices. The narrow neoclassical economic perspective of dried fish value chain (DFVC) also impedes appropriate responses to their unique attributes pertaining to social, ecological, institutional interactions across multiple scales. Failure to consider social-ecological system (SES) attributes, its connections and relationships with dried fish value chain not only undermine social wellbeing of upstream actors but also perpetuates social-environmental inequity and injustice. The paper offers a novel SES-oriented DFVC perspective that focuses on social wellbeing of fishers and dried fish workers. The reconceptualisation of structure, conduct and performance of DFVC is done by conducting an interdisciplinary analysis of peer-reviewed literature from SES, value chain and social wellbeing.

Reflecting on the Entrepreneurship Paradox in Sub-Saharan Africa

Entrepreneurship is a strategy for economic growth and is perceived to be higher in developing countries. However, other scholars found that it does not bring economic growth in developing countries. The purpose of the study was to reflect on this paradox in Sub-Saharan Africa from neoclassical economic theory, where entrepreneurship is perceived as carrying out innovations. In Malawi, a cross-sectional survey of enterprises was conducted to assess the values of new products, new production methods, new markets, and new enterprises. A comparison of mean values and two independent sample tests were used to analyse innovations carried out, types of entrepreneurial enterprises, and their prevalence. The study found that carrying out innovations among enterprises in Malawi is low. Very few entrepreneurial enterprises were opportunity-motivated, growth-oriented, and limited liability. Therefore, the paradox depends on the theory which guides the understanding of entrepreneurship. The classical economic perspective reflects the paradox, while the neoclassical economic perspective does not. This study contributes to knowledge of the types of entrepreneurial enterprises and shows that the paradox depends on the understanding of entrepreneurship. The findings imply that entrepreneurship is ineffective for economic growth in developing countries because of a lack of carrying out innovation. Therefore, the understanding of entrepreneurship in developing countries needs to be adjusted to neoclassical economic theories so that policy focuses on supporting entrepreneurial enterprises for entrepreneurship to be effective for economic growth, ceteris paribus.

The financial crisis: a history of the economic schools of thought

"Crisis is a very important aspect of our everyday life and no matter of the dimension we refer to this represents a period in the evolution of a society marked by great difficulties and anxiety. From an economic point of view this is a normal and necessary event, leading to marvellous growth and development. Even so, the authorities are often not prepared or do not know how to mitigate and manage its shortfalls. The main objective of this paper is to focus around the financial crisis development in the perspective of Classical, Neoclassical and Keynesian economics. Even hundreds years apart, all of the three schools have captured the determinants, implications and some measures to mitigate the imbalances which are still relevant today. The question remains though, so why the world did not resolve the puzzle of financial distress taking into consideration the age of these types of events, the number and the forms they hit our society in the last decades. This study will try to summarize the main ideas of ones of the greatest minds of the past in order to bring some light over the financial crisis phenomena."

Sustainability Mindsets for Strategic Management: Lifting the Yoke of the Neo-Classical Economic Perspective

While sustainability has attracted the attention of managers and academicians for over two decades, the macro-level indicators of sustainability are not moving in the right direction. Climate change continues to be an existential threat for humanity and other indicators of sustainability do not fare much better. The logic of the business case and the associated framing of tension between financial outcomes and sustainability have generated a limited and inadequate response to the existential challenges before humanity today. In this essay, we analyze the evolution of sustainability in the business context and call for a recognition that social and environmental outcomes must supersede economic ones in corporate sustainability thinking. We call for a widening of the spatial, temporal, and moral lenses in the formulation and execution of business strategy to ensure that it is in alignment with the needs of current and future generations of humanity and proportionate to planetary conditions.

How Natural Resource-Based Industry Affect Sustainable Development? An Evolutionary Study of China

The effects of natural resources on regional sustainable development is widely discussed by scholars and policymakers. However, most of the researchers concentrated on economic growth and technical development; evidence of how natural resources affect the soft environment is relatively lacking. Different from the neo-classical economics perspective of resource allocation, we used the evolutionary economics scope of factor creation and historical evolution to explore the effect on China’s regional entrepreneurship laid by the natural resource distribution on the early stage of China. The resource curse is explained from the aspect of regional entrepreneurship development in China. Based on the provincial panel data from China, in China’s industrial statistical yearbook and China’s statistical yearbook, we applied PLS-SEM (Partial Least Squares Structural Equation Model) to explore the path from natural resources to regional entrepreneurship. We also examined the mediating effect at the organizational scale, industry structure, the degree of regional openness, and the quality of human capital in the path between natural resource and entrepreneurship. The result shows that natural resources in the early-stage has negative effects on the growth of the entrepreneurship. Besides, industry structure and organizational scale are significant in terms of mediation effect in the path of the resource curse. An in-depth analysis is provided, and implications are discussed based on the results with the aim of revealing the mechanism and path-dependence of China’s regional development. The implications of this research include the suggestion of adapt the industry structure and motivate start-ups.

From Unidisciplinary to Multidisciplinary Rebound Research: Lessons Learned for Comprehensive Climate and Energy Policies

This article presents how the rebound phenomenon has evolved from only being considered from a neoclassical economic perspective to include several other disciplines such as psychology, sociology and industrial ecology. The intention is to show how different theoretical perspectives contribute to the scientific discourse about rebound effects. We summarize key findings from the various disciplinary strains of research and highlight new research questions and needs that arise. We discuss strengths and limitations of the expansion towards multi-disciplinary rebound research and suggest that a further expansion towards transdisciplinary research could be valuable. We identify the ‘micro-macro discrepancy’ and the ‘cause-effect relativity’ as two general challenges that have to be taken into account when rebound research becomes increasingly multi- and transdisciplinary. In the final section of the article, we present lessons learned from multi-disciplinary rebound research for policies and measures that aim to mitigate rebound effects. The main finding of this article is that if policy makers aim to make climate and energy policies as ‘rebound-proof’ as possible, findings not only from energy economics but from multi-disciplinary rebound research have to be taken into account.

有限理性的“社会人”与最优行为目标——基于对新古典经济学的批判视角

有限理性的“社会人”与最优行为目标——基于对新古典经济学的批判视角

Review of Regional Development Planning Based on the Human Rights Principles

The current development paradigm is still dominated by the neoclassical economic perspective which sees economic development as a mechanical and simplistic process, without the need to look at aspects of respect, protection, and fulfillment of human rights, although, human rights is the first state responsibility of government. As a result, human rights are not the focus of development policy-making. Human rights and development have a mutually reinforcing relationship that will direct the efforts towards a higher quality of development.On this basis, this study shines a spotlight and examines the management of regional development planning with a human rights basis. To get an idea of ​​the reality, researchers use three areas as a sample, namely: Batang (Central Java), Trenggalek (East Java), and Tanjungpinang (Riau Islands). Existing practices are examined with a human rights-based approach, namely: the formulation process, main content, implementation mechanisms, and protection and restoration. Furthermore, a descriptive qualitative approach is selected to describe the process, understand the nonconformities as well as identify the planning process and the implementation of the development plan. For that, primary data collection is done through interview techniques, focused discussions, and field observation. While for secondary data collection through a literature study. The study shows that the fulfillment of the right to healthcare, education, and food has become priorities in regional development planning. A more transparent and accountable planning approach also opens opportunities to make human right-based development planning as the mainstream. The prerequisites driving factors lie in the dynamics of regional regulation and the commitment of the regional heads with the vision and mission outlined in the RPJMD, including a commitment to maintain a transparent, accountable and clean bureaucracy. In conclusion, the transparent planning approach in the RPJMD needs to be balanced by using human rights standards to improve the quality of human development in the region.

THE ECONOMICS OF AIR POLLUTION AND ALTERNATIVE ECONOMIC APPROACHES TO HEALTH

Although there has been reasonable progress in the epidemiology of air pollution, significant changes in international air pollution guidelines, and the emergence of more systematic approaches to air pollution control, there has been little attempt to explain the origin of the air pollution problem in the first place. How did we come to this point? It is a fact that Neoclassical Environmental Economic view, even if it is not the sole cause, is still a major influence for the theories of natural capitalism and environmental finances. Therefore, with this increasing influence, Neoclassical Environmental Economics have been at the very centre of public policies on environmental issues for decades. The question of whether Neoclassical Environmental Economics is the best economic approach for policy decision-making is a very controversial subject, and there are few alternative approaches to Neoclassical Environmental Economics. This study provides some insight into air pollution and its impacts on health, starting from the Neoclassical Economic perspective and reviewing the main alternative approaches to reach a very balanced global environmental understanding.

Gentrification, Transit, and Land Use: Moving Beyond Neoclassical Theory

AbstractDespite attention to social equity in the way public transit services are distributed, little work has considered how transportation systems may impact social equity through land use changes, particularly gentrification. Existing research on transportation and land use has been grounded primarily in a neoclassical urban economic perspective. However, the neoclassical framework is limited in its ability to handle issues of social justice such as the gentrification process. Meanwhile, critical gentrification literature has seldom considered the potential influence of transport systems to alter the distribution of accessibility benefits within a city. It is argued that a Marxist approach that considers the roles of capital and class in the gentrification process offers a better understanding of how transit infrastructure matters and contributes to a reinvigoration of transport geography. Finally, some directions for future research are suggested.

An analysis of the financial crisis in the KOSPI market using Hurst exponents

Recently, the study of the financial crisis has progressed to include the concept of the complex system, thereby improving the understanding of this extreme event from a neoclassical economic perspective. To determine which variables are related to the financial event caused by the 2008 US subprime crisis using temporal correlations, we investigate the diverse variables that may explain the financial system. These variables include return, volatility, trading volume and inter-trade duration data sets within the TAQ data for 27 highly capitalized individual companies listed on the KOSPI stock market. During 2008 and 2009, the Hurst exponent for the return time series over the whole period was less than 0.5, and the Hurst exponents for other variables, such as the volatility, trading volume and inter-trade duration, were greater than 0.5. Additionally, we analyze the relationships between the variation of temporal correlation and market instability based on these Hurst exponents and the degree of multifractality. We find that for the data related to trading volume, the Hurst exponents do not allow us to detect changes in market status, such as changes from normal to abnormal status, whereas other variables, including the return, volatility and weekly inter-trade duration, indicate a significant change in market status after the Lehman Brothers’ bankruptcy. In addition, the multifractality and the measurement defined by subtracting the Hurst exponent of the return time series from that of the volatility time series decrease sharply after the US subprime event and recover approximately 50 days after the Lehman Brothers’ collapse. Our findings suggest that the temporal features of financial quantities in the TAQ data set and the market complexity perform very well at diagnosing financial market stability.

On the Natural and Economic Difficulties to Fulfilling the Human Right to Water Within a Neoclassical Economics Framework

We present a neoclassical economic model of the human right to water using a nonrenewable resource model inclusive of a backstop technology. The right is interpreted as a minimum consumption requirement the government is obligated to fulfill in the event that any one household cannot do so independently. Differing by income levels, households maximize utility by purchasing a composite consumption good and water from two distinct, government-owned sources. Facing physical and financial constraints, the government uses fiscal policy to address potential human rights violations. Reducing the analysis to two periods, we develop a novel approach to compare total welfare levels from a joint human rights and neoclassical economics perspective. We define a human rights welfare standard and discuss cases in which traditional social welfare measures would exceed, violate, or meet this standard. We thus offer a unique way to merge economic analysis with human rights research.

Evolutionary modelling of the macro-economic impacts of catastrophic flood events

This paper examines the possible contribution of evolutionary economics to macro-economic modelling of flood impacts to provide guidance for future economic risk modelling. Most macro-economic models start from a neoclassical economic perspective and focus on equilibrium outcomes, either in a static or dynamic way, and describe economic processes at a high level of aggregation. As a consequence, they typically fail to account for the complexity of social interactions and other behavioural responses of consumers and producers to disasters, which may affect the macroeconomic impacts of floods. Employing evolutionary principles and methods, such as agent-based modelling, may help to address some of the shortcomings of current macro-economic models. We explore and discuss the implications of applying consumer and producer heterogeneity, bounded rationality, network effects, social and technological learning, co-evolution and adaptive policy-making concepts into existing economic frameworks for the assessment of macro-economic impacts of floods.

The impact of competition associated with charter schools and inter-district school choice policies on educators and schools

This study uses survey data to examine how teachers and school administrators in traditional public schools in Michigan (USA) perceive the impact of charter schools and inter-district school choice policies on themselves and their schools. The authors utilise two competing economics perspectives to examine these questions: the neoclassical economics (NCE) perspective and the institutional and behavioural economics (IBE) perspective. The findings do not support the assumption of the NCE perspective that educators will respond to charter schools and inter-district choice programmes by improving school quality (by, for example, making improvements in their teaching or leadership practices, academic programmes, extra-curricular activities, or relationships with parents; or increasing teacher collaboration with colleagues).

Henry George and Immigration

Henry George's opposition to free immigration may be surprising in light of his positions on other aspects of economic theory and policy. This essay reviews George's statements on immigration policy, discusses inconsistencies of these statements with his positions on free trade and Malthusian population theory, compares George's views with the neoclassical economic perspective on immigration, and suggests that implementation of George's policy of taxing land values would share the gains from immigration in a manner that might reduce opposition to open borders.

Cardinal Scales for Health Evaluation

Policy studies often evaluate health for an individual or for a population by using measurement scales that are ordinal scales or expected-utility scales. This paper develops scales of a different type, commonly called cardinal scales, that measure changes in health. Also, we argue that cardinal scales provide a meaningful and useful means of evaluating health policies. Thus, we develop a means of using the perspective of early neoclassical welfare economics as an alternative to ordinalist and expected-utility perspectives.

Managing Diverse Commodities? From Factory Fodder to Business Asset

AbstractFrom its foundation in 1919, the International Labour Organisation's (ILO) guiding principle has been that labour is not a commodity. Following an examination of the origins and impact of this principle on ILO and United Nations (UN) conventions relating to migrant workers, the paper examines how Australia has responded to such conventions. In this regard, the paper highlights the counterveiling influence of the neoclassical economic perspective on the way migrant workers in Australia have been treated and represented from the post-war period until recent times as either ‘factory fodder’ and/or ‘business assets'. Both representations, we argue, treat migrants as commodities. To challenge this approach the paper identifies how migrant workers have distinguished themselves from commodities through resistance to poor working conditions and also management strategies that treat them as if they were commodities.

Economic Transformations of Gay Urban Spaces: revisiting Collins’ evolutionary gay district model

Over the past half century, many visible gay districts emerged in Western inner cities as sites of gay and lesbian residence, commerce, entertainment, culture and politics. Rather than static enclaves, these visibly gay districts are constantly changing, reflecting improved social attitudes towards homosexuality, increasing diversity of social activities and venues, and financial constraints on residential location in the inner city for many lesbians and gay men. This paper revisits Collins’ evolutionary gay district model to examine recent changes around one such inner-city district, Oxford Street in Sydney, Australia. A neoclassical economic perspective, focusing on market forces, consumer preferences and incentives, is used to hypothesise whether these changes are a process of decline, integration or colonisation of gay space. For the Oxford Street district there is growing evidence that various factors have eroded the vibrancy of gay cultural expressions. The paper concludes by discussing the different possible ongoing transformations of inner-city gay districts.

Expanding Economic Perspectives for Sustainability in Urban Water and Sanitation

The economic principles and tools that are commonly applied to recover costs for urban water and sanitation arise from the dominant perspective of neo-classical economics, with its emphasis on ‘full cost pricing’ based on the ‘user pays’ principle. Kumudini Abeysuriya, Cynthia Mitchell and Juliet Willetts examine two other qualitatively different economic perspectives to demonstrate how they lead to different approaches: ecological economics takes a more holistic approach explicitly committed to sustainability, while Buddhist economics brings ethics to the fore and opens the possibility for cooperation between the various actors in creating solutions to benefit individuals, society and the environment. We propose a set of interconnected guiding principles based on an expanded economic perspective that integrates all three perspectives, to enable water and sanitation services for developing countries to align with sustainability.