Economic Theory Commons^™

Working Paper No. 30, On The Origins Of Laissez-Faire, Thomas Breaden

Working Papers in Economics

This paper traces laissez-faire back to its French roots, and in particular, to its origins as a political philosophy evoking an economic approach. Related to his visit to France in the 1760s and his personal contacts, we suggest that Adam Smith serves as the link between selected French thinkers and what after Smith’s Inquiry would be widely accepted as a quintessentially Anglo-Saxon tradition in economics. Exploring doctrine, we offer linkages between F. Quesnay, A. Turgot, J.J. Rousseau, and Smith’s ideas. Similarities in Smith’s understanding and the French exponents regarding economic activity vis-a- vis a public sector are presented, along with …

(Review) Self-Interest Before Adam Smith: A Genealogy Of Economic Science, Spencer J. Pack

Economics Faculty Publications

Pierre Force, Self-Interest Before Adam Smith: A Genealogy of Economic Science (Cambridge: Cambridge University Press, 2003), pp. ix, 279, $65.00. ISBN 0-521 83060-5.

(Review) Pierre Force, Self-Interest Before Adam Smith: A Genealogy Of Economic Science, Spencer J. Pack

Economics Faculty Publications

Pierre Force, Self-Interest Before Adam Smith: A Genealogy of Economic Science (Cambridge: Cambridge University Press, 2003), pp. ix, 279, $65.00. ISBN 0-52183060-5.

Peace In Unity: 19th Century Irenic Motivations In European Unification, Robert Taft Keele

Undergraduate Honors Theses

The Hauptargumenten of politicians and citizens concerning the advantages and disadvantages of the EU are almost exclusively economic or political in nature: lower tariffs; loss of monetary instruments; immigration; disenfranchisement; etc. The object of my thesis is to remind everyone, amid the flurry of speculation and uncertainty prevalent in Europe since the French rejection of the EU constitution, that a major benefit of the European integration is peace, on a continent that has been ravaged by war for centuries. I prove that the establishment of peace was a major element in European unification by confirming links between peace movements and …

A New Approach To Robust Inference In Cointegration, Sainan Jin, Peter Phillips, Yixiao Sun

Research Collection School Of Economics

A new approach to robust testing in cointegrated systems is proposed using non-parametric HAC estimators without truncation. While such HAC estimates are inconsistent, they still produce asymptotically pivotal tests and, as in conventional regression settings, can improve testing and inference.

Financial Development And Financial Liberalization In Asia: Thresholds, Institutions And The Sequence Of Liberalization, Hiro Ito

Economics Faculty Publications and Presentations

I investigate whether financial openness leads to financial development after controlling for the level of legal/institutional development, and whether trade opening is a precondition for financial opening, focusing on Asia. Utilizing a panel encompassing 87 less developed countries over the period 1980 to 2000, I find that a higher level of financial openness spurs equity market development only if a threshold level of legal development has been attained, a condition prevalent particularly among emerging market Asian countries. On the issue of sequencing, trade openness is found to be a prerequisite for successful inducement of financial development via capital account liberalization.

Movement Of Economics Professors Among Top Research Universities In The Us, Benjamin E. Resnick

Renée Crown University Honors Thesis Projects - All

Abstract not Included

The College Football Gambling Market An Empirical Approach, Brian Mcneil

Renée Crown University Honors Thesis Projects - All

This study tests the efficiency of the college football gambling market and whether the market allows for profitable wagering. Operating upon the theoretical framework that, at any given time, prices fully reflect all information available in a particular market, I test for the existence of residual information that is not currently incorporated into the market, thus rendering it inefficient. This project expands upon several previous studies performed on sports betting – most notably that of Zuber, Gandar, and Bowers (1985), which examined the gambling market efficiency for National Football League games. The findings prove to be consistent with the conclusions …

A Dangerous Supplement, Daria Roithmayr

Journal of Legal Education

No abstract provided.

Is Exchange Risk Priced Beyond Intertemporal Risk?, Ines Chaieb, Stefano Mazzoto, Oumar Sy

Faculty Articles

Recent conditional tests show that exchange risk is priced in integrated international markets. However, these results are typically obtained assuming that intertemporal risk does not matter. We test an intertemporal international asset-pricing model where the investment opportunity set is dynamic. Using a conditional orthogonalization approach, we investigate whether the exchange risk is priced once the market and intertemporal risks are fully taken into account. We find that, in addition to the market and intertemporal risks, the exchange risk is an important determinant of risk premium. We also find that the intertemporal risk, which is often overlooked in the literature, is …

Some Patterns Of Market Shares Of Brands Within And Across Product Categories, Rajeev Kohli, Raaj Sah

Research Collection School Of Economics

This paper: (i) reports an empirical regularity in the market shares of brands; (ii) presents a theoretical framework for understanding the observed regularity; (iii) adduces additional empirical consequences of the framework, which are some counterintuitive relationships among market shares of brands across different product categories; and (iv) presents empirical evidence for these consequences, thus providing additional support for the theoretical framework. Our cross-sectional data on market shares consists of 1171 brands in 91 product categories of foods and sporting goods sold in the US. If we assign a lower rank to a brand with a higher market share, then the …

Free Riding In Noncooperative Entry Deterrence With Differentiated Products, Dan Kovenock, Suddhasatwa Roy

Economics Faculty Articles and Research

We examine free riding and underinvestment in noncooperative entry deterrence in the Gilbert and Vives (1986) model with differentiated products. Our analysis proves that for products that are differentiated enough, when both entry allowing and entry deterring equilibria coexist, the symmetric entry deterring equilibrium may Pareto dominate the entry equilibrium. Hence, "coordination failure" underinvestment in entry prevention can occur. However, as claimed, the overinvestment result of Gilbert and Vives remains robust to moderate amounts of product differentiation. We also show that coordination failure underinvestment arises in a wide variety of entry deterrence models and does not rely on assumptions regarding …

Comparative Analysis Of Litigation Systems: An Auction‐Theoretic Approach, Michael R. Baye, Dan Kovenock, Casper G. De Vries

Economics Faculty Articles and Research

A simple auction-theoretic framework is used to examine symmetric litigation environments where the legal ownership of a disputed asset is unknown to the court. The court observes only the quality of the case presented by each party, and awards the asset to the party presenting the best case. Rational litigants influence the quality of their cases by hiring skilful attorneys. This framework permits us to compare the equilibrium legal expenditures that arise under a continuum of legal systems. The British rule, Continental rule, American rule, and some recently proposed legal reforms are special cases of our model.

Auction Markets For Evaluations, Cary Deck, Bart J. Wilson

Economics Faculty Articles and Research

When the value of a product or service is uncertain, outcomes can be inefficient. A market for evaluations can theoretically increase efficiency by voluntarily eliciting an evaluation that would otherwise not be provided. This paper uses a controlled laboratory experiment to test the performance of four market mechanisms to provide product evaluations. The mechanisms considered are derived from the oft studied uniform price sealed bid, discriminatory price sealed bid, English clock auction, and Dutch clock auction. Our results indicate for this nonrivalrous product that (i) each of these institutions improves social welfare and (ii) the performances of the four mechanisms …

Harrod Graphs, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (n.d.). Figure 1: Effects of a fall in the savings rate (s) on the path of output [Graph].

• Shaikh, A. (n.d.). Figure 2: “Modest” government spending raises the growth rate of output [Graph].

• Shaikh, A. (2005, November 30). Economic policy in a growth context: 5. Extensions to growth [Typed course notes]. Includes sections on the Keynesian time path and the Harrodian warranted growth path.

• Shaikh, A. (n.d.). Figure 3: “Excessive” government spending lowers the rate of growth of output [Graph].

• Shaikh, A. (2005, November 30). Economic policy in a growth …

Ape 205 Section 8 Interest Rates I, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (1989). Notes on money, interest and capital. Unpublished handwritten notes.
• Rogers, C. (1989). Money, interest and capital: A study in the foundations of monetary theory. Cambridge University Press.
• Harrod, R. (1969). Money. Macmillan.
• Shaikh, A. (1969). Notes on money. Unpublished handwritten notes.
• Lutz, F. A. (1968). The theory of interest. D. Reidel Publishing Company.
• Shaikh, A. (1968). Notes on the theory of interest. Unpublished handwritten notes.
• Fongemie, C. A. (2005). A note on fisher's equation and keynes's liquidity hypothesis. Journal of post keynesian economics, 27(4), 621–632. …

More Historical Foundations 02-05, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Anwar Shaikh. (2002, October 29). Midterm paper assignment for ECO 104: Historical foundations of political economy [Unpublished course assignment]. Author.

• Shaikh, A. (2004, Fall). Syllabus and course outline for historical foundations of political economy I (GECO 104) [Unpublished syllabus and course outline]. Author.

• Unknown author. (n.d.). List of readings in the fourth folder [Unpublished reading list]. Author.

• Unknown author. (n.d.). Figure 1: The planned structure of Marx’s “economics” [Unpublished diagram]. Author.

Monetarist Papers, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Brumm, H. J. (2005). Money growth, output growth, and inflation: A reexamination of the modern quantity theory's linchpin prediction. Southern Economic Journal, 71(3), 661–667.
• Moroney, J. R. (2002). Money growth, output growth, and inflation: Estimation of a modern quantity theory. Southern Economic Journal, 69(2), 398–413.
• Smith, B. D. (1988, Summer). The relationship between money and prices: Some historical evidence reconsidered. Quarterly Review (Federal Reserve Bank of Minneapolis), 12(3), 18–32. Federal Reserve Bank of Minneapolis.

The Great Wars, The Great Crash And Steady State Growth & Misc Documents, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Garegnani, P. (n.d.). Reply. Unpublished manuscript.

• Shaikh, A., PhD. (2003, June 30). Response to comments on Godley-Shaikh 2002 [Document addressed to Esteban]. Unpublished manuscript.

• Pérez, E. (n.d.). The standard neo-classical macroeconomic model [Draft comments]. Unpublished manuscript.

• Ben-David, D., & Papell, D. H. (1995, December). The great wars, the great crash, and steady state growth: Some new evidence about an old stylized fact. Unpublished manuscript.

• Moudud, J. K. (2005, November 29). The role of the state and long-run growth: Beyond neoliberalism and the superstate—some provocative thoughts on new policy options for developing countries [NASDAQ lecture]. Unpublished …

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Eco104 Marx's Thought, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection contains:

• Chronology of the works of Marx and Engels [Photocopy]. (n.d.).

• Gravitation [Photocopied page with sticky note regarding Kepler and Newton]. (n.d.).

• Shaikh, A. (2001, October 24). Historical foundations I: Marx: Introduction [Typed outline for Economics 104].

• The planned structure of Marx’s economics [Figure 1]. (n.d.).

• Shaikh, A., PhD. (1988, September). Outline: Brief history of Marxist political economy [Handwritten notes].

• Shaikh, A., PhD. (1988, September). II. From classical stages in Marx’s thought [Handwritten notes].

• Shaikh, A., PhD. (1992, October 5). Stages in Marx’s thought [Handwritten notes for ECO 106].

• Shaikh, …

Adam Smith And Greed, Jonathan B. Wight

Economics Faculty Publications

The virtues of greed have been widely promoted by some economists in the 20th century. Allegedly it is Adam Smith who provides this new dignity to greed (Lerner, 1937, ix). Kenneth Arrow and Frank Hahn in the General Equilibrium Analysis (1971), for example, implicitly assume that Adam Smith's self-interest is the greed that promotes economic efficiency (quoted in Evensky, 1993, 203). Walter Williams (1999), a devoted follower of Smith, writes in his column that, "Free markets, private property rights, voluntary exchange, and greed produce preferable outcomes most times and under most conditions." These pronouncements have become part of the cultural …

Disequilibrium Dynamics, Stock-Flow Consistency, And Economic Policy, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Moudud, J. K. (2005, November 4). Disequilibrium dynamics, stock-flow consistency, and economic policy [Book proposal].

Loss, Heidi Li Feldman

Georgetown Law Faculty Publications and Other Works

Within Republican political circles, numerous state legislatures, and even the U.S. Congress, advocating caps on "noneconomic" damages in tort suits is in vogue, as part of the ongoing politics of "tort reform." Yet, the distinction between "economic" and "noneconomic" damages is nonsensical. It does not originate in the discipline of economics, but seems instead to be purely a rhetorical invention of those who wish to limit damages by any means politically possible. But law reform based on sheer rhetoric should be shunned; unprincipled rhetoric is no substitute for justificatory reasons, and to make laws without reasons exemplifies arbitrariness and injustice. …

The Relationship Between Import Prices And Inflation In The United States, Thomas D. Corrigan

WCBT Faculty Publications

Inflation has been a non-issue in the United States in recent years despite strong economic growth, on balance, and falling unemployment. Some analysts believe that "new economy" dynamics are responsible for this favorable outcome and further claim that the traditional Phillips curve tradeoff between growth and inflation is no longer a valid assumption underlying economic policy decisions. Others believe that the Phillips curve is indeed alive and well but that favorable "supply shocks" have masked the still relevant tradeoff between growth and price stability. One potential "supply shock" candidate is a declining trend in the cost of imports into the …

Trade (2), Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Real per capita GDP growth in developed and developing countries — a photocopied chart apparently excerpted from a published report. The source publication, author, and publisher are not indicated on the scanned page, so a verified full reference cannot be supplied; the data appear to span the early-to-mid 2000s.
• Handwritten notes on real exchange rates and balance-of-trade theory — Shaikh, A., PhD. Unpublished manuscript notes, undated.
• Note on new and old exchange rate file comparisons — Shaikh, A., PhD. Unpublished note referencing companion digital files, undated.
• Handwritten notes on trade balance and exchange rate derivations — Shaikh, …

Simplest Sfc, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes:

• Shaikh, A. (1994, December 5). Godley: Private expenditure function [Handwritten notes].

• Shaikh, A. (2005, January 15). Notes on the simplest possible stock-flow accounts: Comments on Claudio’s simplification model [Typed manuscript].

• Shaikh, A. (n.d.). Short-run model closures and steady state growth (Chap. 2) [Scanned pages with handwritten annotations].

• Shaikh, A. (2005, January 17). Simplest stock-flow accounts [Typed manuscript with handwritten annotations].

• Shaikh, A. (2005, January 16). Two types of stock-flow consistencies [Handwritten notes].

Course Evaluations, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Course evaluation results for world political economy (GECO 5108). (2005, Spring). [Course evaluation report]. Graduate Program in Economics, The New School for Social Research. (Anwar Shaikh, PhD, author).

• Course evaluation results for seminar on Marx, Keynes, and Kalecki (GECO 6210). (2005, Fall). [Course evaluation report]. Graduate Program in Economics, The New School for Social Research. (Anwar Shaikh, PhD, author).

• Course evaluation results for historical foundations of political economy I (GECO 5104). (2005, Fall). [Course evaluation report]. Graduate Program in Economics, The New School for Social Research. (Anwar Shaikh, PhD, author).

• …

Ltv, Anwar Shaikh Phd

Archives of Anwar Shaikh

This collection includes.

• Syllabus for Eco. 308S: Labor theory of value: The classical labor theory of value, covering Smith and Ricardo, with handwritten notes on the scope of work and Ricardo’s necessity of price and money. (1974, Fall). [Course syllabus with handwritten notes]. Department of Economics, The New School for Social Research. (Anwar Shaikh, PhD, author and annotator).

• Syllabus for Eco. 308S: Value seminar: The classical labor theory of value, covering sections on Smith, Ricardo, and Marx on Smith and Ricardo. (1975, Fall). [Course syllabus]. Department of Economics, The New School for Social Research. (Anwar Shaikh, …

Attitudes Toward Race, Hierarchy And Transformation In The 19th Century, Sandra J. Peart, David M. Levy

Jepson School of Leadership Studies articles, book chapters and other publications

Using the debates between Classical political economists and their critics as our lens, this paper examines the question of whether we're the same or different. Starting with Adam Smith, Classical economics presumed that humans are the same in their capacity for language and trade ; observed differences were then explained by incentives, luck and history, and it is the "vanity of the philosopher" incorrectly to conclude otherwise. Such "analytical egalitarianism" was overthrown sometime after 1850 , when notions of race and hierarchy came to infect social analysis as a result of attacks on homogeneity by the Victorian Sages (including Thomas …

The Micro-Foundations Of Intertemporal Price Discrimination, Winston T. H. Koh

Research Collection School Of Economics

This paper investigates the optimality of intertemporal price discrimination for a durable-good monopoly in a model where infinitely-lived households face an intertemporal budget constraint, and consume both durable goods and non-durable goods. We prove that the optimal price of the durable good is not constant, and may decrease or increase over time. Some households may choose to purchase the durable good at a later date, and pay lower or higher prices, since the gain in discounted utility of consuming more of the non-durable good more than compensates for the loss in utility from delaying the consumption of the durable good.