# Tag Info

17

I disagree that: a) The core curriculum should not include things that are relevant only for those pursuing graduate school. b) A university degree should necessarily focus only on career outcomes for students. c) There are only two relevant careers and therefore the only thing worth teaching is how to handle different types of data. The core curriculum ...

14

Among economic historians, Marx is often considered the most important economist of the 19th century. His attempts to provide a systematic explanation of the functioning of capitalism was on a far grander scale than anyone who preceded him, and in that sense, he reset the bar very high for what would henceforth be considered comprehensive economic theory, ...

13

I was recently amazed to discover instances of computational social choice in The Nine Chapters on the Mathematical Art, the Chinese counterpart of Euclid's element, written by several generations of scholars from the 10th up to the 2nd century BCE. The core issues in social choice theory is the question of fair allocation, or fair collective decision. Once ...

10

"...capitalists buy and sell money as though it were a productive economic good." No they don't. They buy and sell currency, because the price of currency fluctuates (due to imagination and/or economic fundamentals) and so there are profit opportunities there. Also, they are after liquidity, (i.e. holding money instead of physical capital), because ...

10

I second/third/whatever the objection to the "ideal careers" put forth here. Data Analyst - Most of these jobs will go to comp-sci graduates, especially as artificial intelligence and machine learning methods become more widely adopted. Tools such as deep learning, generative adversarial networks, and reinforcement learning explicitly require no or little ...

9

Game Theory in the Talmud by Robert J. Aumann discusses a bankruptcy problem and a variety of fair division problems of a contested sum from the Talmud, a document written roughly between 200 and 500 CE. For example: A fascinating discussion of bankruptcy occurs in the Babylonian Talmud 2 (Ketubot 93a). There are three creditors; the debts are 100, 200 and ...

8

I don't think I can really do this question justice. A lot of us probably have different things that come to mind when we think of the history of economics. I tend to take an academic interpretation of your question. A potpourri of random (mostly microecon, but maybe it'd be better to sort them) events that come to mind: 1838 - Supply and Demand: Antoine ...

8

Adding to previous answers ... The basic Solow model is an example of a class of long-term macroeconomic models in which output is a function of inputs of two or more factor inputs and the ratios of the inputs may vary over time or between countries. Other examples include: The Mankiw-Romer-Weil model which treats physical and human capital as separate ...

7

I find the following quotes to be interesting: "[Political economy is] a branch of the science of a statesman or legislator [with the objective to provide] a plentiful revenue or subsistence for the people [and] to supply the state or commonwealth with a revenue for the publick services."—Adam Smith, 1776. "Economics is a study of man in the ordinary ...

7

I can only speculate on what Mill meant, but it seems to me that This is mostly a figure of speech. People sometimes say things like "I have no money, but I am wealthy in other ways", meaning they have something they would not trade for money, i.e. monetary wealth. If there is a distinction, it is in the concept of ownership. Air is not wealth ...

6

Warren Samuels addresses this issue in his article "Why the Georgist Movement Has Not Succeeded: A Speculative Memorandum." In summary he argues first that Georgism did not succeed because of the conflation of the ideas of income and productivity, leading people to view a tax on land as a tax on productivity even though the tax is meant to equate income ...

6

Marx is indeed an influential classical economist, however he added almost nothing to economics as a discipline. His theories of labor value, exploitation and modes of production were all articulated before him, which he acknowledged. What he did do was systematize and popularize these theories as scientific. Marx was closer to Malthus than to Smith in terms ...

6

Alecos is correct that Smith is talking about packaging, but I don't believe that "paper" refers to a paper bag. Straight pins used to be sold on sheets of paper (usually as sets of a dozen), through which they passed twice, like so: So by "put them into the paper" Smith means exactly what he said: the pins are put into paper before being sold.

6

Covering the historical part, you may want to look at: 1) The Battle of Bretton Woods: John Maynard Keynes, Harry Dexter White, and the Making of a New World Order which appears to be written in a "non-fiction thriller" style, revolving around the argument that "(Bretton Woods) was in reality part of a much more ambitious geopolitical agenda hatched ...

6

I think that the main reason why the Solow model is a must in every undergrad curriculum is the Solow residual. The fact that the bulk of the differences of per capita income between countries is not due to capital intensity or human capital is on face value paradoxical. Among non-economists this is the most underappreciated insight from economic research ...

6

tl;dr: It is most likely an arbitrary date because they had to set some year. In fact the year 1925 is not even a strict guideline but only loose criterion. As such the year was not set due to some special significance. The JEL classification also responds not just to the needs of academicians but also grant agencies, government, university HR departments ...

5

Friedman's involvement with the Reagan administration was only as an advisor, he was not part of the administration as a cabinet member or on the budget committee (roles he was offered), specifically because he did not want to moderate his writing and public opinion. On the Reagan administration Friedman supported the Reagan Era tax cuts, but noted that tax ...

5

Fair division: from cake cutting to dispute resolution (Brams (1996)) claims that the following text from Hesiod’s Theogony (sometime in 750 and 650 BCE) is the earliest recorded example of an envy-free (but not regret free!) fair division problem: For when the gods and mortal men had a dispute at Mecone, even then Prometheus was forward to cut up a great ...

5

In an essay entitled Economic Possibilities for Our Grandchildren, Keynes famously argued that people would one day only need to work 15 hours per week (see bottom of p 4). This was linked to an argument about satiation (see p 3, half way down), although he was careful to say that this applies to absolute needs, and that relative needs (ie needs to feel ...

5

Well, in macroeconomics, namely in DSGE modelling, VOXEU has recently published a report on its uses by Central Banks (CBs), and future lines of improvement, which academics have been tackling but still hasn't found its way into CBs policy analysis. There's no space to explain all the new topics, nor do I think it's the intention of this question. So, I'll ...

5

As pointed in the comments this was done by Ragnar Frisch. At least Barten and Böhm. (1982) as well as Johansen (1969) attribute these axioms to one of these two publications: Frisch, Ragnar (1926). "Sur un problème d'économie pure [On a problem in pure economics]". Norsk Matematisk Forenings Skrifter, Oslo. 1 (16): 1–40 Frisch,(1926). "...

4

My app is acting odd and won't allow me to comment, but here's my follow up comment. Yeah, for sure! My list consists of this: Wealth of Nations - Adam Smith Capital - Karl Marx Principles of Economics - Alfred Marshall General Theory of Employment, Interest and Money - John Maynard Keynes. Those are just the most definitive works in the field that I'...

4

There is a major disciplinary specification problem here: “who is an economist?” At the time Marx was active as an author (including posthumously with Engels) the field of knowledge was known as “political economy,” so as to distinguish it from the domestic economy of household management—both from the Greek oikos. Political economy was, and still can, be ...

4

Both another answer and the OP have linked to the wikipedia article on the matter. I think the following passage from the article sums adequately the situation (bold mine): "The term “Islamic banking” refers to a system of banking or banking activity that is consistent with Islamic law (Shariah) principles and guided by Islamic economics. The ...

4

A recently published (and perhaps the only one) paper on the matter is Lloyd, P. (2012). The Discovery of the Isoquant. History of Political Economy, 44(4), 643-661. From the Introduction : "The absence of a history of the isoquant is in marked contrast to the universal recognition that F. Y. Edgeworth (1881) invented the concept of the indifference ...

4

If you're referring to a land-value tax, I'll just quote The Economist: Other economists like it too. Adam Smith said “nothing could be more reasonable”; Milton Friedman termed it “the least bad tax”. Winston Churchill said scornfully that a landlord “contributes nothing to the process from which his own enrichment is derived”. The Organisation for Economic ...

4

The way you have defined excess demand, it is only consumer excess demand. But Walras's law holds in any private ownership economy at all prices (at which demand and supply are well defined). Walras's law is basically equivalent to consumers spending their budget fully. Let there be $l$ commodities, so every commodity bundle is an element of $\mathbb{R}^l$. ...

4

Is there any more information about why von Neumann had this attitude? There must be, but I have never seen it. Or can we infer a reasonable answer? Here is one possibility based on hearsay among the Game Theory community. Von Neumann thought that there was a sharp distinction between zero-sum games and other games. In zero-sum games, there was no ...

4

Beyond Michel De Vroey's book, I know of no other book on the history of macroeconomics, as it is praised by macroeconomists. See for example this review. De Vroey has a true vision of macroeconomics, he shares it with his reader and gives clear guidelines to understand the developments in the field. Anyway, you will find below some nice references that ...

4

There are several other economists/observers that share view that this was time of growth and relative stability. For example, according to Smiley writing for the Economic History Association 1920s are a period of vigorous, vital economic growth. Smiley is drawing upon quite wide list of research on economic history that generally shares that view. I mean ...

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