The European Heritage in Economics and the Social Sciences

Transcription

1 The European Heritage in Economics and the Social Sciences Series Editor: Jürgen Georg Backhaus For further volumes:

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3 Jürgen Georg Backhaus Editor Handbook of the History of Economic Thought Insights on the Founders of Modern Economics

4 Editor Prof. Dr. Jürgen Georg Backhaus University of Erfurt Krupp Chair in Public Finance and Fiscal Sociology Nordhäuser Str Erfurt Thüringen Germany ISBN e-isbn DOI / Springer New York Dordrecht Heidelberg London Library of Congress Control Number: Springer Science+Business Media, LLC 2012 All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper Springer is part of Springer Science+Business Media (

5 Preface Avant Propos A further reason for studying the history of economic thought was provided by Pareto in the lead article of the Giornale di Economisti of 1918 (Volume 28; pages 1 18) under the title Experimental Economics. 1 In as much as economic theories also have an extrinsic value, that is, they lead people to act as informed by the theory, such as in economic policy or public finance, the theory becomes a subject for economic investigation itself. The distinction between the intrinsic aspect and the extrinsic aspect of a theory is crucial for this argument. The intrinsic aspect of a theory refers to its logical consistence and, as such, has no further repercussions. As far as the intrinsic aspects are concerned, theoretical knowledge is actually cumulative. On the other hand, the extrinsic aspect of an economic theory will become a derivation (in Pareto s terminology) in that it serves as the rationalization of human activity. In Pareto s sociology, human action is determined by residues, innate traits that determine human behaviour, and derivations. Derivations are more or less logical theories or world views that guide people s behaviour. To the extent that economic theory can also guide human behaviour, economic theory becomes a social fact or construct that is itself subject to economic analysis. As we experiment with different economic theories to guide economic policy in general and fiscal policy in particular, the history of economic thought can actually be practised as experimental economics in documenting the impact different economic theories have on economic behaviour. Of course, this experimental kind of history of economic thought becomes the more relevant the more similar the situations are in which different economic theories are applied. 1 The following account is based on Michael McLure, The Paretian School and Italian Fiscal Sociology. London, Palgrave v

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7 Contents 1 Introduction... 1 Jürgen G. Backhaus 2 The Tradition of Economic Thought in the Mediterranean World from the Ancient Classical Times Through the Hellenistic Times Until the Byzantine Times and Arab-Islamic World... 7 Christos P. Baloglou 3 Mercantilism Helge Peukert 4 The Cameralists: Fertile Sources for a New Science of Public Finance Richard E. Wagner 5 The Physiocrats Lluis Argemí d Abadal 6 Adam Smith: Theory and Policy Andrew S. Skinner 7 Life and Work of David Ricardo ( ) Arnold Heertje 8 John Stuart Mill s Road to Leviathan: Early Life and Influences Michael R. Montgomery 9 John Stuart Mill s Road to Leviathan II: The Principles of Political Economy Michael R. Montgomery 10 Jeremy Bentham ( ) Christos P. Baloglou vii

8 viii Contents 11 Johann Heinrich von Thünen: A Founder of Modern Economics Hans Frambach 12 The Legacy of Karl Marx Helge Peukert 13 Friedrich List s Striving for Economic Integration and Development Karl-Heinz Schmidt 14 The Entwickelung According to Gossen Jan van Daal 15 Gustav Schmoller as a Scientist of Political Economy Reginald Hansen 16 The Empirical and Inductivist Economics of Professor Menger Karl Milford 17 Antoine Augustin Cournot Christos P. Baloglou 18 Léon Walras: What Cutes Know and What They Should Know J.A. Hans Maks and Jan van Daal 19 Alfred Marshall Earl Beach 20 Knut Wicksell and Contemporary Political Economy Richard E. Wagner 21 Werner Sombart Helge Peukert 22 The Scientific Contributions of Heinrich von Stackelberg Peter R. Senn 23 Joseph Alois Schumpeter: The Economist of Rhetoric Yuichi Shionoya 24 Against Rigid Rules Keynes s View on Monetary Policy and Economic Theory Elke Muchlinski 25 Keynes s Long Struggle of Escape Royall Brandis

9 Contents ix 26 John Maynard Keynes and the Theory of the Monetary Economy Hans-Joachim Stadermann and Otto Steiger 27 James Steuart and the Theory of the Monetary Economy Hans-Joachim Stadermann and Otto Steiger 28 Friedrich August Hayek ( ) Gerrit Meijer Index

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11 Contributors Jürgen G. Backhaus University of Erfurt, Nordhäuser Street , Erfurt, Germany Christos P. Baloglou Hellenic Telecommunications Organization, S.A. Messenias 14 & Gr. Lamprakis, Nea Philadelphia, S.A. Athens, Greece Earl Beach Charles Beach, Department of Economics, John Deutsch Institute, Kingston, ON, Canada Royall Brandis University of Illinois at Urbana, Champaign, IL, USA Lluis Argemí d Abadal University of Barcelona, Diagonal, 690, 08034, Barcelona, Spain argemi@eco.ub.es Jan van Daal Triangle, University of Lyon-2, Lyon, France jan.van.daal@orange.fr Hans Frambach Department of Economics, Schumpeter School of Business & Economics, University of Wuppertal, Gaußstraße 20, Wuppertal, Germany frambach@wiwi.uni-wuppertal.de Reginald Hansen Luxemburger Strabe 426, Cologne, Germany Arnold Heertje Laegieskampweg 17, 1412 ER, Naarden, The Netherlands joab@simplex.nl J.A. Hans Maks Euroregional Centre of Economics (Eurocom), Maastricht University, Maastricht, The Netherlands h.maks@algec.unimaas.nl xi

12 xii Contributors Gerrit Meijer Department of Economics, Maastricht University, Larixlaan 3, 1231 BL Loosdrecht, The Netherlands Karl Milford Department of Economics, University of Vienna, Vienna, Austria Michael R. Montgomery, PhD School of Economics, University of Maine, 5774 Stevens Hall, Orono, ME 04469, USA Elke Muchlinski Institute of Economic Policy and Economic History, Freie Universität Berlin, Boltzmannstraße 20, Berlin, Germany Helge Peukert Faculty of the Sciences of the State/Economics, Law and Social Science, Nordhäuser Str. 63, Erfurt, Germany Karl-Heinz Schmidt Department of Economics, University Paderborn, Warburger Street. 100, Paderborn, Germany Peter R. Senn 1121 Hinman Avenue, Evanston, IL 60202, USA Yuichi Shionoya Hitotsubashi University, Kunitachi, Tokyo , Japan, Andrew S. Skinner Adam Smith Professor Emeritus in the University of Glasgow s Department of Political Economy, Glen House, Cardross, Dunbartonshire G82 5ES, UK a.s.skinner@socsci.gla.ac.uk Hans-Joachim Stadermann Berlin School of Economics and Law, Hochschule für Wirtschaft und Recht Berlin, Badensche Straße 50 51, Berlin, Germany stadermann@aol.com Otto Steiger Institut für Konjunktur- und Strukturforschung (IKSF), FB 7 Wirtschaftswissenschaften, Universität Bremen, Postfach , Bremen, Germany osteiger@uni-bremen.de Richard E. Wagner Department of Economics, George Mason University, Fairfax, VA 22030, USA rwagner@gmu.edu