Communitarianism: A new paradigm of socioeconomic analysis

The kind of problems addressed by a given science and the set of techniques for analyzing them rest upon what philosophy of science defines as a “escientific paradigm,” or a “disciplinary matrix.” This paper aims to analyze the disciplinary matrix embodied in socioeconomic thought. First, I appraise the disciplinary matrix underlying neoclassical economics as the “orthodox” branch of modern economic analysis. Methodological individualism and utilitarianism are the two cornerstones of contemporary economic thinking. Then, I challenge the core assumption of the prevailing neoclassical paradigm that utility-maximizing individuals are the prime decision- making units in society. From this analysis, it appears that the Homo economicus is a radical abstraction from social reality. Building on this criticism, a more encompassing paradigm of economic analysis is developed, introducing “Communitarianism” as a new disciplinary matrix of socioeconomic thought.     

George Katona: A founding father of old behavioral economics

Assuming the division of behavioral economics into old and new, the paper begins to argue that old behavioral economics began with the works of two giants – George Katuna and Herbert Simon during the 1950s and early 1960s. The contributors of Herbert Simon are well established, thanks to the popularity of bounded rationality and satisficing, and his being award Noble Prize in economics. However, economists are much less familiar with the contributions of George Katona that can be viewed as the father of behavioral economics. Furthermore, the author argues that Katona was also misunderstood by various economists when he was attempting to create a psychologically based economics that rejected the mechanistic psychology of neoclassical economics and introducing the survey method to economic research that he had been using in his experimental psychology research previously. He also had influenced various economists during their debates in the 1950s without given the credit for. Many historians of behavioral economics limit Katona's contributions to the start of behavioral economics only to his contributions to macroeconomics. However, the paper demonstrates that Katona's behavioral economics included his contributions to macroeconomics (bringing realism to Keynesian consumption function and consumption behavior), micro-economics (business behavior, the rationality assumption, etc.), public finance and economic policy, and his introduction of the survey method. To demonstrate these contributions, the author argues that Katona attempted to bring realism to economic analysis – through psychological concepts – beginning with his early days of research in Germany which coincided with German hyper inflation- and continued whether working at New school for Social Research, Chicago University's Cowles Commission, the U.S. Department of Agriculture, or the University of Michigan's Survey Research Center. The author also argues that Katona's contributions went through stages, depending upon what economic problem persisted at the time, what advertises he was facing, and what institution/organization he was associated with.     

Max weber's vision of economic sociology

Max Weber's economic sociology is usually associated with The Protestant Ethic and the Spirit of Capitalism (1904–1905), but in this paper I show that what Weber himself called his “Wirtschaftssoziologie”, or economic sociology, looked quite different and was something that he developed during the last year of his life, 1919–1920. I present and outline Weber's (later) economic sociology and pay particular attention to his ideas of “economic (social) action” and of the three different forms of capitalism (rational capitalism, political capitalism and traditional capitalism). I also show that to Weber, economic sociology was part of a more general science of economics that he often referred to as “social economics” (“Sozialökonomik”). The paper ends with a comparison between the paradigm of economic sociology, which can be found in the work of Max Weber, and the paradigm of what is known as New Economic Sociology.     

Market management of the essential economy: an essay

This essay presents a framework for thinking about public economic policy. The argument is that the prevailing theory of competitive markets serves a useful public purpose but creates problems when made into an ideology. The core theory and philosophy suffers from oversights and illusions. Fundamentalist thinking found in it can be dangerous for the long run well-being of humanity. These insights lead to the conclusion that the fundamental task of an economics for public policy should be to develop a theory of workable markets.     

The Liberal Paradox: A generalisation

A largely unsolved problem in economics is what criteria should an economic policy satisfy to be desirable. The Pareto principle is the most widely used normative criterion in economics. Some recent criticisms have suggested that it is not compatible with other objectives of economic policy, most significantly that the Pareto principle conflicts with the respect of individual rights. This paper argues that the Pareto principle is not a significant cause of this conflict. Our argument is based upon a simple generalisation of the Liberal Paradox.For Comments I would like to thank Ruvin Gekker, Kevin Lang, Yew-Kwang Ng, Prasanta Pattanaik, Amartya Sen, John Wriglesworth, the referee, and the editor of this journal     

Interfacing Economics with Social Work Education

This paper explores the interface between economics and social work education in terms of the social worker generalist, administrator, and teacher suggesting what areas of economics should be emphasized and a basic set of readings. It also spells out three alternatives for implementing the interface.

The generalist needs basic knowledge of the functioning of the labor markets, employment policy, insurance, and subsidies as well as an understanding of economic decision making as it relates to setting priorities and budgeting. The planner-administrator needs economic analysis skills. It is suggested that doctoral students concentrate in a field related to human resources or public finance.     

Living will: Ruminations of an economist

The typical living will is an awfully imperfect instrument for doing what it is supposed to do. This paper is one economist's attempt to make sense of living will. The foray takes one deep into the domain of mainstream economics. The paper concludes that, despite its shortcomings, living will makes good economic sense and its future is bright.     

What is the Main Significance of Economic for Sociological Theory?

This paper reconsiders classical and neoclassical economics’ significance for or affinity and convergence with sociological theory. The paper identifies certain types or elements of classical and neoclassical economics that are potentially significant or convergent with sociological theory: pure market economics, the economics of society cum the “rational choice model”, and social or sociological economics. First, it argues that as pure economics economic theory’s significance for or affinity and convergence with sociological theory is low because the first is inconsistent with or divergent from the latter, notably theoretical economic sociology. Second, the paper suggests that as the economics of society economic theory’s significance for or affinity and convergence with sociological theory is non-existent or minimal, because the “rational choice model” is missing or an exception within conventional economics. Third, the paper proposes and demonstrates that classical and neoclassical economics’ main significance for or affinity and convergence with sociological theory lies in social economics as its second ingredient, alongside market economics. The paper aims to contribute to a better understanding of the relationship between economic and sociological theory and economics and sociology overall.     

Folk economics and its role in Trump’s presidential campaign: an exploratory study

This article focuses on an area of study that may be called folk economics and that is currently not on the social science agenda. Folk economics has as its task to analyze and explain how people view the economy and how it works; what categories they use in doing so; and what effect this has on the economy and society. Existing studies in economics and sociology that are relevant to this type of study are presented and discussed. A theoretical framework for analyzing folk economic issues is suggested, centered on the distinction between episteme and doxa or between scientific knowledge, on the one hand, and everyday knowledge, on the other. This is then applied to an exploratory case study of the role that folk economics played in Trump’s presidential campaign. It is shown that Trump and his voters thought in a parallel way on key economic issues, especially protectionism.     

Economic theory and international migration

The modern literature on the economics of immigration focuses on 3 related issues: 1) what determines the size and skill composition of immigrants flows to any particular host country; 2) how do the immigrants adapt to the host country's economy; and 3) what is the impact of immigrants on the host country's economy? This article reviews the theoretical framework and empirical evidence provided by the economics literature on these questions. It demonstrates that the economic approach, using the assumption that migration behavior is guided by the search for better economic opportunities and that the exchanges among the various players are regulated by an immigration market, leads to substantial insights in to these issues.     

Black lives matter,capital, and ideology: Spiraling out from India

Piketty's propositions for arresting inequality are discussed through the lens of racism/casteism. We focus on the case of India's George Floyds—the persistence of caste and tribe oppression under economic growth in India—through the insights of our long‐term ethnographic research. We show that inequalities are intimately tied to dynamics of capitalist accumulation in which racial/ethnic/caste/tribe and gender difference is crucial. We argue for an analysis that truly integrates ideology and the dynamics of political economy. The wider implications, we argue are political; they lie in the question of what is to be done. Despite his ambitions to decenter economics, Piketty remains trapped in the logic of economics for what he proposes are essentially economic reforms within capitalism. Moreover, ideological change cannot be a matter of choice only, and cannot be challenged solely at the level of ideas around economic inequality. It will also have to be fought as a direct contest of oppressive ideologies such as racism, casteism, and patriarchy, leading to new counter‐hegemonic positions. We will argue that this takes us from a global history of ideology to a global anthropology of praxis. A first step is to genuinely center conversations with disciplines like anthropology, sociology, and subaltern history studying people and voices from below and from the margins, and the perspectives of scholars and activists from below and from the margins.     

The Rational Choice Generalization of Neoclassical Economics Reconsidered: Any Theoretical Legitimation for Economic Imperialism?

The article reconsiders the generalization of neoclassical economics by modern rational choice theory. Hence, it reexamines the possible theoretical grounds or lack thereof within neoclassical economics for economic imperialism implied in much of rational choice theory. Some indicative instances of rational choice theory's generalization of neoclassical economics are reviewed. The main portion of the article addresses the question as to whether neoclassical economics allows its generalization in rational choice theory and thus legitimizes economic imperialism. Presented are a number of pertinent theoretical reasons why neoclassical economics does not fully justify its generalization into rational choice as a general social theory, particularly into an overarching economic approach to social action and society. Also discussed are some theoretical implications of the rational choice generalization of neoclassical economics. The main contribution of the article is to detect lack of a strong theoretical rationale in much of neoclassical economics for rational choice theory's manifest or latent economic imperialism.     

Two sources of human irrationality: Cognitive dissonance and brain dysfunction

Akerof and Dickens explored the relevance of cognitive dissonance theory for economics, and the theory is shown here to predict occasional irrational thinking. Secondly, it is proposed that the focus of neuroeconomics on brain dysfunction and the role of neurotranmitters on cognition suggests two ways in which the functioning of the brain can impair rational decision-making.     

How to fight the ‘Methodenstreit’? Veblen and Weber on economics,psychology and action

There have been comparative discussions about Thorstein Veblen and Max Weber before, but not quite from the most appropriate viewpoint. The present paper treats them as theorists of action, in social and economic analysis, and this perspective yields some interesting new findings. Both theorists are to be taken as participants in the great Methodenstreit in economics, 100 years ago, and it is Veblen who suggests a more radical solution to this dispute, he suggests its final abolishment. The main difference between Veblen and Weber is in their respective appreciations of the role of psychology in social analysis. Weber does not think it important, but in so thinking he misses the viewpoint of evolutionary psychology that Veblen endorses. Accordingly, both of these classical thinkers are to be considered as theorists of action, but so that it is Veblen who proffers a more general theory.     

The expanding definition of framing and its particular impact on economic experimentation

In both experimental economics and psychology, framing research has focused primarily on the reflection effect. Recently, however, economic research on framing has employed a broader definition which incorporates context and institutional factors in a more general and productive way-a way which is also more consistent with the goals of socio-economics. This paper explores this expanding definition of framing and its particular impact on economic experimentation. A wide range of studies are reviewed to illustrate the influence on economics of the changes in understandings of framing, and to examine some of the evidence for context-dependent choice. Research concerning fairness and institutional framing, social norms, reference points, and non-rational choice is considered. Because of the complementarity between economic experimentation and economic theory, these advances in framing research are viewed as further positive signs of the opening of neoclassical economics to socio-economic premises.     

Towards a “New” outrageous public choice

Public choice theory has identified and emphasised “failings” in political processes. However, an assessment of “failure” is sensitive to the framework used for evaluation. Recent developments in cognitive psychology and in experimental economics suggest that “deficiencies” in the political process (ie. “defects” that weaken the link between self interest and policy outcome) are, instead, attractive attributes (which safeguard individuals from the costs of “anomalous behavior”). A “new” public choice perspective (outrageously!) identifies “strengths” (as well as “failings”) in democratic political processes when what has been regarded as “anomalous” behavior is deemed relevant.     

The development of economic notions: Single sequence or separate acquisitions?

The conceptions on shops and factories of a group of 3rd-grade children were assessed by means of the Piagetian clinical method. Factorial analysis showed that children's answers about the two economic institutions yielded two distinct factors. Children were then divided into three groups (one control and two experimental); children in the experimental groups were taught, by means of two different training procedures, how the shopkeeper can earn a profit. A post-test interview, one month later, showed that both experimental groups had progressed in the target notion; however, children did not generalize to the factory what they had learned about shops. According to these results, 3rd-graders' thinking about economics consists of separate part-systems, which will eventually become integrated as children grow older.     

Exchange Relationships in Inshore Fisheries1

Research on the long‐term, informal exchange strategies of harvesters and dealers working in inshore fisheries has been important to theory surrounding economic exchange. In transaction costs economics, this research provides evidence for economic exchange governed by trust, and in exchange theory, it provides evidence for the emergence of cooperation and trust. In this article I examine the emergence of economic exchange relationships in the new sea urchin fishery. The research is ethnographic in nature, utilizing a variety of data sources including participant observation, in‐depth interviews, and existing quantitative data. I find that, just as experience or improved efficiency can have an impact on the emergence of trust between exchange partners, potential exchange partners can be deemed untrustworthy based on general characteristics unrelated to the particular individual. Once established, these assessments become part of the strategic context of exchange in the fishery.     

On lateral thinking

Lateral thinking led to results on the measurement of risk being applied to the problem of measuring income inequality. In this, and in other areas of economics, lateral thinking has made a significant contribution. At the same time, there are dangers. The parallel may be deceptive. The paper examines two ways in which a straightforward translation of techniques from one field to another can be misleading and one example where lateral thinking about multi-dimensional inequality has considerable promise.