New Economic Paradigm Research Articles

Rethinking the Theoretical Foundation of Economics I: The Multilevel Paradigm

Abstract This article is the first of a series that offers a new paradigm for economics, the “multilevel paradigm,” using generalized Darwinism as its theoretical framework. Generalized Darwinism refers to all processes that combine the ingredients of variation, selection, and replication – not just genetic evolution – making it relevant to the cultural evolution of economic systems that are embedded in political, social, and environmental systems. We contrast the multilevel paradigm with the neoclassical paradigm and other schools of economic thought. The multilevel paradigm, like the neoclassical paradigm, provides an integrative framework for micro- and macro-economics. It also incorporates the meso level, comprising groups of various sizes, linking micro and macro. Other schools of economic thought are not fully integrative in this sense, constituting instead a form of diffuse pluralism. In the integrative framework of the multilevel paradigm, many important ideas that are currently on the periphery of economics are brought toward the core.

TRANSFORMATION OF ECONOMIC POLICY PRIORITIES UNDER COVID-19

The aim of this paper is to analyze the main challenges of the new paradigm of economics in the context of Covid 19, the economic role of the state and the scale of state intervention in the economy. Economics teaches us that there is a time for budget expansion and a time for budget constraints. There are times when the government has to intervene in the value chain and there are times when it has to leave the markets alone. Sometimes the tax has to be high and sometimes low. Trade in some areas should be more independent and regulated elsewhere. Globalization is one of the primary variables impacting the state's economic condition in the modern world. The most important function of the state in the context of globalization is not only to protect the national economy from external influences (so-called "external shocks"), which is virtually impossible today, but also to effectively participate in international economic ties and increase the country's global competitiveness. In this aspect, the contemporary state plays a critical role. In turn, Georgia must construct a "Georgian model" of economy that will serve as the "core" of an economic model that would attract investment (in the real economy), generate employment, expand exports, and deliver true prosperity to all Georgians. Today is the day when, at the state's initiative, the country's economic priorities are defined and the country's distinctive economic potential is fulfilled. The modern economic crisis, which was triggered by the Covid-pandemic, has demonstrated that a route out of the current predicament is conceivable when the anti-crisis strategy is based on increased government participation in the economy. To accomplish so, the government and the public sector must play a larger role in crisis management. Despite these examples, the economic regulation of the state has always had strategic and tactical significance. For any country, there are and will always be state problems that are either not addressed through the supply-demand mechanism or are associated with negative side effects. Based on the existence of such cases, a set of free market economic measures is being developed through state programming of the economy and the use of regulatory tools. In view of the above, it is necessary to reconsider and reform the role and rights of the state in modern economic relations. The need to establish the state as a factor of progressive development in the economy should be emphasized during the reform. In addition, it should include legislative activities such as – compliance with labor safety conditions, regulation of the minimum wage, resolution of social conflicts, etc.

PROBLEMS OF IMPLEMENTATION OF NONLINEARITY BY AN IDEOLOGIST INTO THE ECONOMY AND ECOLOGY (IN THE CONTEXT OF RESEARCH AND MANAGEMENT)

Topicality. In recent decades, the problem of methodological and ideological comprehension of the nonlinear ideologemes of cognition of complex developing processes formed in the physical, chemical and other natural sciences, in the context of their use in economic and environmental research in management practice, has been increasingly.The statement of this problem is conditioned by the established traditions of simplifications in the knowledge of real economic phenomena and processes. The consequence of the simplification in understanding the complexities of economic and other activities is the prevailing phenomenon of nonlinear thinking and linear perception of the surrounding world. Currently, the problem of nonlinear complexities of socio-economic and economic-ecological systems is extremely poorly developed. Aim and tasks. The aim of this work is to discuss topical issues of the implementation of modern ideologemes of nonlinearity in the study of economic and environmental phenomena and processes, as well as in the systems of substantiating management decisions in the development of programs (projects) for territorial, sectoral and other development. The goal-setting system discussed in the work focuses on the solution of applied problems of the implementation of the ideology of nonlinearity in practice. Research results. Implementation is considered as a category of the theory of nonlinear control, as a formal hypothetical-deductive system for organizing knowledge about the management of complex nonlinear economic and environmental processes in interrelation and interdependence. The principles of nonlinearity and nonlinear approach to the study and management of systems related to the greening of the economy have been formed. The research results presented in the work are based on a comprehensive analysis of the formation of a new post-nonclassical stage in the development of modern science. The tendencies of radical changes in the foundations of science and the nature of scientific activity are taken into account. Special attention is paid to the increasing actualization of the formation of nonlinear research methods and scientific directions (synergetics, nonlinear dynamics, catastrophe theory, etc.), focused on the knowledge of complex nonlinear processes and the solution of strategic problems of nonlinear control.In the context of nonlinear paradigms, the author considers the search for new imperatives of economic science aimed at forming the conceptual foundations of a new scientific paradigm in economics and a new intellectual economy. The work focuses on the need to develop the theory of nonlinear management of complex processes of social and economic development, including those related to the management of the greening of the economy. The applied problems of the implementation of nonlinear ideologemes in the economy and ecology are considered in the interests of the national security of Ukraine. Conclusion.The presented results of theoretical and methodological comprehension of the modern problem of nonlinear world outlook are a certain basis for a new nonlinear approach to the study of complex processes and its implementation in the management of economic and environmental processes.

Deep adaptation to climate change in the maritime transport sector – a new paradigm for maritime economics?

ABSTRACT In recent years a significant body of work has been established on climate change adaptation by ports. Like climate change mitigation, work towards adaptation has stalled on the same collective action problem, whereby public and private sector actors avoid commitment to necessary investments. Recently the concept of ‘deep adaptation’ has appeared, which suggests that, rather than climate change bringing simply incremental challenges that can be adapted to in a piecemeal fashion, in fact, we should expect ‘disruptive and uncontrollable levels of climate change, bringing starvation, destruction, migration, disease and war’. However, current port and shipping forecasts continue to predict uninterrupted growth with only minor incremental policy changes already known to be insufficient for mitigation and adaptation. Thus, this paper argues that actors in the maritime transport sector need to consider greater threats than those currently identified and also prepare for a more advanced adaptation timetable.

SOFTWARE FOR RESEARCH OF DYNAMICS OF PROCESSES

Since Newton research of dynamics of processes consists in construction of corresponding mathematical model and its careful studying. However investigation of any more or less real system is impossible without a computer and information technology. Computer simulation derives from two steps: (i) modeling, i.e. finding a model description of a real system, and (ii) solving the resulting model equations using computational methods. In the natural sciences it is often not so difficult to find a suitable model. On the other hand, due to computer simulations economics has entered the stage of deep transformation of its bases. However in economics the resulting equations are easier to solve, but they are harder to find. Therefore, here it is expedient and convenient to use a computer at the stage of modeling itself, i.e. on the model search stage. The С# desktop application Model specially intends for support process of modeling itself using computer. It is advisable and convenient to use specialized software for numerical experiments, which allows obtaining the model in a subject language, without codes; immediately afterwards all the necessary research tools already tuned to this model; easily modify the model depending on the results of the experiments. It was developed and continuously improved simultaneously and in close relationship with the construction of the theory of the general market model according to the new dynamic paradigm of economics, computational experiments via Model played a major role in the construction of this theory. As a result of this real and hard testing the latest version of  Model  has now reached some complete form and is submitted in this paper. In particular use of this software in educational process is reasonable: to concentrate attention to very uneasy subject - the process of research

Knowledge as growth

The purpose of this paper is to reflect and articulate the key scholarly contributions made by Cristiano Antonelli in his pathbreaking book, The Knowledge Growth Regime: A Schumpeterian Approach and why it is so important, not only to scholars of innovation and Schumpeterian economics, but also to the entirety of economic thinking. This paper highlights how this important new book breaks new and important ground paving the way for a new paradigm in economics, where knowledge takes the center stage.

The gnoseological sense of a new paradigm of the institutional economics

Motivation: The gnoseological sense of a new paradigm, apart from the methodological and sociological sense, includes its the deepest essence. It is expressed in a process of forming and popularization of a paradigm. It includes essential factors of a particular paradigm which are reflected by its general sense. Revealing the essence of the gnoseological sense enables to reveal the main factors from the essential ones, which have been applied unintentionally. The same applies to new institutional economics when it is used without scientific reflection. An idea of revealing the essence of its (of the institutional economics) gnoseological sense is to reveal aspects of the individualism and the holism hidden in it.Aim: Goal of this paper is to reveal the essence of the outline of the gnoseological sense of the paradigm of the new institutional economics.Results: Result of the study is presentation of relations between the individualism and the holism in the paradigm of the new institutional economics. The main conclusion is that the paradigm of the economics sui generis is not homogeneous, similarly to the social sciences. The new institutional economics derives a holistic perspective from the sociology, and individualistic one from the neoclassical economics. Consequently the new institutional economics is based on contradictory foundations (it is of dual nature); this becomes clear at a detailed level of considerations concerning its paradigm.

Ekonomia i etyka. Inspiracje konfucjańskie

Ekonomia i etyka. Inspiracje konfucjańskie [Economics and ethics. Confucian inspirations] edited by W. Banach, M.A. Michalski, J. Sójka, „Człowiek i Społeczeństwo” vol. XLVI: Między Chinami a Zachodem. Pytanie o źródła chińskiego sukcesu gospodarczego [Between China and the West. An inquiry into the sources of the Chinese economic miracle], Poznań 2018, pp. 43–66, Adam Mickiewicz University. Faculty of Social Sciences Press. ISSN 0239-3271.The aim of this article is to assess what kind of possible inspirations for economic thinking one can expect from Confucianism. A direct challenge was issued by the work of Kazimierz Poznański who claims that Confucianism is a source of a new paradigm for economics, the one based on ethics. So the question posed in this paper is, to what extent Confucian economics, as presented by Poznański, can become an alternative view counterposed to the western liberal economics, allegedly devoid of ethical contents. To answer that question one should first analyse the relation between economics and ethics within traditional, western, liberal approach. The author of this article posits that ethical component is present within this approach and, at the same time, Confucian values are not that different as far as the goals of economic life are concerned. What is more, one can find some conceptual affinities between Confucius and Adam Smith.

The Role of Corporate Social Responsibility (CSR) in the Telecommunications Industry : An Overview of the Case of "Orange Tunisie" Operator

The aim of this paper is to present new orientations for research in the field of information systems in the context of CSR. It offers an original conceptual analysis that integrates the CSR approach, which enables decision making, governance and strategic alignment of the Information and Communication Technologies (ICT), business and sustainability. In the actual context of the changing environment, a consensus regarding the need to change the pattern of development and growth comes to light. The CSR emerges as a new paradigm for economics. Its alliance with other economic concepts seems to become a necessity that aims at an approach for a global and sustainable performance for the company. As long as the firms’ IT departments are energy consumers, it is of paramount importance to reconcile the new technologies and the CSR. Hence, in order for the company to stand out and increase its competitiveness, it has to think in terms of global, economic, social and environmental performance that would ensure a sustainable growth. The importance of the small and medium-sized enterprises in the Maghreb’s economies and the challenges of the CSR implementation in such institutions should prompt us to wonder about the incentives and the engagement factors of managers in favor of the CSR while incorporating the ICT. It seems interesting, then, to discover the way to combine the ICT and the social practices, in order to ensure a sustainable performance for the company. An illustration of the case of "Orange Tunisie" operator will be advanced.

Green Products Recognition, Understanding, and Preference: The Case of Coffee Eco-Labels

We conducted a survey to gauge consumer awareness, understanding, and preferences for coffee eco-labeling. The survey covers the following labels: Rainforest Alliance Certified, Fair Trade Certified, USDA Organic, Bird Friendly and UTZ. The results, based on more than 800 responses, show that the USDA Organic label was the most recognized, followed by Fair Trade, Rainforest Alliance, Bird Friendly, and lastly UTZ. Rainforest Alliance, Bird Friendly, and UTZ were the least understood eco-labels. Respondents were given definitions of each eco-label and then asked how appealing certain components of the coffee certification are. They rated each component on a scale of 1 (not appealing) to 7 (very appealing). “Environmental sustainability” had the highest average response, followed by “no pesticides”, “social justice”, “animal welfare”, “birds”, and lastly “third-party certification.” The descriptions of the Fair Trade and USDA Organic labels had a positive effect on respondents’ willingness to make future purchases of coffee products displaying these labels. The description of the UTZ label had the least enthusiastic response. Generally, the majority of respondents reacted favorably, indicating they were likely, very likely, or extremely likely to purchase coffee from any of the five labels after having read a description of what the labels represent. Participants were also asked about their attitudes towards the environment and their perceived altruism using the New Economic Paradigm (NEP) and the Altruism (ALT) scales.

Analisis Kritis dan Pragmatis Caring Economics sebagai Paradigma baru Kajian Ekonomi

This article critically and pragmatically analyze and expose the concept and basic principles of caring economics as a new paradigm of economics as opposed to neo-liberal economics and its implications to economic education in Indonesia. The analysis and exposition based on unobtrusive research techniques, i.e. comparative content analysis and historical notes among references used here and in the context of Pancasila and UUD 1945. The implications of the study in this article are formulated into three key recommendations: (a) the need to review and operational translation of Articles 33 and 34 of the UUD 1945 (Amendment IV, 2002); (b) the need to review the curriculum, learning approaches and tools, and practices of learning economics in schools in order that caring economic becoming educational character of the national economy; and (c) the need to campaign of introduction to paradigm and practice of caring economics in the universities, both as an academic study or studies the development of teaching-learning models based on caring economics, through collaboration of higher education, school, community and local government. Keywords: caring economics, neo-liberal economics, pendidikan ekonomi, Pancasila, UUD 1945 JEL Classification: B51, P51

Институциональные предпосылки формирования парадигмы экономической безопасности

The article explores the institutional paradigm shift as the theoretical basis of economic security through the prism of perception of the role and importance of social, political, economic, military or religious institutions. There were presented traditional and new consensual approaches to economic security in the context of the transition from the accumulation of forces as a tool for achieving secure coexistence of countries, peoples, businesses and citizens, to address the challenges of protecting their own economic interests through bargaining institutions. It is discussed that economic security is a way of thinking and acting, based on the ability to formulate and address the causes of the use of means of force, and in their place have come political and moral resources. Attempts were made to substantiate the thesis that in the world of competition and rivalry it is possible to avoid violence. The author proceeds from the position that within some societies and in international relations, where different nationalities divided by borders and among peoples, where they live in the same state of different nationalities, dominated by violence because there is no idle or institutions of morality and morals. There were reviewed the scientific origins of the formation of the paradigm of the new institutional economics and its requirements, because, obviously, it must be accepted by consensus of most researchers and should not be questioned, since this belief system is taken for granted and is not contrary to existing research. Through the use of the methodology of institutional economic theory analyzes the concept of scientific research programs, the structure of which is allocated a “hard core” and “protective belt”. There were made the conclusion that the concept of the new paradigm of the new institutional economics can be considered as the result of all the existing views of the contemporary representatives of different schools of institutionalism, and in relation to society security is about meeting the needs of existence, survival, confidence, stability, integrity, independence, preservation of level and quality of life within certain society. Economic security is defined as a process that requires the continuous activity of individuals, businesses, communities, states and international organizations for the economic state security.

The Decimation and Displacement of Development Economics

ABSTRACTContemporary mainstream development economics is an overdetermined product of three historical processes: the late neoclassical turn within mainstream economic theory; transformations within the institutional‐discursive matrix of development, from growth‐centred policies to poverty alleviation‐ and good governance‐oriented policies; and a broader transition from post‐war Keynesian developmentalism (with its variants in the second and third worlds) to existing varieties of neoliberal governmentality. This article assesses the trajectory of development economics through two historical shifts in the theoretical field. The first is from the ‘old’ school of structural transformation with a focus on sectoral balance and shifts to the ‘new’ school of structural adjustment programmes with a focus on micro‐level incentive problems. The second shift is from the aggressively neoclassical orientation of the ‘new’ school to that of the contemporary constellation, where what is considered to be ‘good’ development economics has been gradually reduced to micro‐level impact appraisals of developmental projects (the so‐called ‘randomization approach’), while the broader macro‐economic and historical questions are being increasingly handled through methodologically‐individualist, late neoclassical models of institutions and growth (the so‐called ‘new institutionalism’). The article concludes by insisting on the need for a new paradigm of development economics that would not only unearth the conflictual and antagonistic nature of development, but also render it an indispensable dimension of the study of development in a pluralist manner.

The need for a new paradigm in economics

The multidimensional challenges confronting humanity today, combined with our inability to fully harness the abundant human, social, technological, and financial resources to meet human needs, point to serious insufficiencies in prevailing economic theory modeled on the natural science. A paradigm change is needed in the social sciences akin to that which occurred in Physics a century ago. A human-centered theoretical framework is needed to bridge the divide between economics and human values, reintegrate economy with society, and unify the objective and subjective, individual and collective dimensions of social reality. This article identifies nine essential characteristics of new economic theory.

The Irrationality Illusion: A New Paradigm for Economics and Behavioral Economics

The Irrationality Illusion: A New Paradigm for Economics and Behavioral Economics

Toward a recalibrated human right to a clean and healthy environment: making the conceptual transition

Despite many noble efforts to champion the right to a clean and healthy environment and related regulation, the official recognition and jurisdictional reach of this right is highly limited. It does not matter if it is understood as an entitlement derived from other substantive rights, as a substantive right autonomous unto itself, or as a cluster of procedural entitlements. Our highly decentralized and far too voluntarist international legal order is far more concerned with privileging commercial imperatives than in protecting human rights and environmental values. However, we may be approaching a ‘Grotian Moment’ that presents an unusual opening for change. A variety of civil resistance movements, new sorts of Internet-based collaboration and governance, and dissenting schools of thought in economics, environmental stewardship and human rights, are gaining both credibility and adherents – locally, nationally, regionally, globally, and points in between. This convergence points to a new paradigm of law, economics, and governance that could provide a practical new way to reframe the human right to environment as the human right to commons- and rights-based ecological governance – what we call ‘Green Governance.’ Unlike the right to environment now practiced – theoretically appealing but troublingly indeterminate operationally – the human right to Green Governance would be anchored in a cognizably well-defined, rich history of both substantive and procedural justice. As we explain, Green Governance can provide a powerful means for challenging the State/Market's structural limitations by drawing upon the power of Human Rights, Vernacular Law, and Self-Organized Governance as a complement or substitute for State-based governance. A human right to Green Governance could help protect the creations of nature and related societal institutions that we inherit jointly and freely from our forebears, hold in trust for future generations and seek to manage democratically in accordance with human rights principles. To advance this vision, we offer a Universal Covenant Affirming a Human Right to Commons- and Rights-based Governance of Earth's Natural Wealth and Resources, a declaration ready for immediate adoption by and for all levels of concerned society worldwide.

The Irrationality Illusion: A New Paradigm for Economics and Behavioral Economics

A new conceptual and formal framework for analyzing economic decisions, the homo communitatis paradigm, is introduced. The framework is in the form of seven principles, which collectively articulate the entire range of factors that affect choice, including all aspects of individual behavior and of the social context—the communities—the actor is a member of. Traditional economic analysis is shown to be a special case of homo communitatis analysis in which key variables are omitted. Using the principles, we show that experimental results such as loss aversion, framing effects, mental accounting, and judgment biases are not irrational and that the apparent irrationality is in every case an illusion arising from incomplete specification and control of independent variables elucidated in the principles. Several implications for future work are discussed, including high-fidelity models of socioeconomic systems, significantly more powerful and detailed economics simulations, and adoption of significantly different approach to design of economic experiments, one that takes into account all the variables involved in human choice.

Ekonomia w służbie zrównoważonego rozwoju

The main branch of traditional economics used to focus on economic and social development, and on increasing profits. This led to disregard for the scantiness of natural resources and their renewal. This article looks at the criticism of traditional economic theory by the proponents of the economics of sustainable development, most notable amongst them being the theoretician, Holger Rogall. The notion and crucial principles of the economics of sustainable development are also discussed. The proposed new paradigm in economics is strong sustainability. The theory put forward is strictly related to the idea of sustainable development and the rules of inter- and intragenerational justice and responsibility in the meaning of environmental ethics.

Method and Substance of Islamic Economics:Moving Where?

Islamic economics started as a challenge and a fundamental critique of conventional economics, and the ambition of most Islamic economists of the first generation was the replacement of mainstream economics by a new paradigm based on or at least consistent with comprehensive Islamic worldview. It is questionable whether this goal has been achieved. A growing volume of literature with an ‘Islamic economics’ label follows the same quantitative approach and differs from mainstream only in so far as it deals with phenomena in Muslim countries, especially with aspects of Sharī‘ah-compliant banking and finance. Such studies of economic issues from an Islamic perspective are deeply rooted in conventional economics and lack the systemic or holistic dimension which is indispensable for the establishment of a new paradigm for a science of Islamic economics. Islamic economics as an autonomous discipline requires a systemic orientation, and it is conceptually inextricably linked with Islamic theology and law. However, the necessary intellectual interaction between economists and Sharī‘ah scholars is deficient. While Islamic economists had come forward with models of a financial system based on participatory modes of finance and widespread risk-sharing, many scholars of Islamic law were more concerned with the replication of conventional instruments for risk-free fixed-return transactions or with Sharī‘ah-compliant derivatives. Their efforts have moved Islamic finance closer to the conventional status quo and further away from an alternative system of financial intermediation. This did not contribute to the development of a new paradigm of Islamic economics, but this process is reversible

The Need for a New Paradigm in Scandinavian Health Economics

This paper argues that the discipline of health economics has lost its way due to its persistent focus on individualistic and consequential values. The paper suggests how this might be remedied in both theory and practice. It proposes a new paradigm for health economics, which focuses on communitarian values. This new paradigm is discussed in the context of the Scandinavian welfare model.