IDEAS home Printed from https://ideas.repec.org/a/bla/ajecsc/v69y2010i4p1155-1177.html
   My bibliography  Save this article

Evolutionary Alternatives to Equilibrium Economics

Author

Listed:
  • Joseph E. Pluta

Abstract

Built on the fictional concept of equilibrium, mainstream economics provides a method of analysis that, when paired with the calculus, enables relatively easy identification of maximum and minimum values. Lacking empirical evidence of its behavioral assumptions, the profession accepts such familiar claims as consumer maximization of utility and business firm maximization of profit or revenue. In place of the relatively static concept of equilibrium, the Veblen‐Myrdal notion of circular and cumulative causation (CCC) arguably has greater descriptive capability and more penetrating insight for policy recommendations. This article traces the historical origins of both concepts and argues that CCC offers considerable potential for a broad, dynamic, interdisciplinary, more thorough, and more accurate analytical framework. Specific examples of work that has been done along with suggestions for future applications of this concept are given.

Suggested Citation

  • Joseph E. Pluta, 2010. "Evolutionary Alternatives to Equilibrium Economics," American Journal of Economics and Sociology, Wiley Blackwell, vol. 69(4), pages 1155-1177, October.
  • Handle: RePEc:bla:ajecsc:v:69:y:2010:i:4:p:1155-1177
    DOI: 10.1111/j.1536-7150.2010.00739.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1536-7150.2010.00739.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1536-7150.2010.00739.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lee,Frederic S., 2006. "Post Keynesian Price Theory," Cambridge Books, Cambridge University Press, number 9780521030212, September.
    2. F. Gregory Hayden, 2008. "Circular and Cumulative Causation and the Social Fabric Matrix," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(2), pages 389-397, June.
    3. Steven Pressman & Richard P. F. Holt, 2008. "Nicholas Kaldor and Cumulative Causation: Public Policy Implications," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(2), pages 367-373, June.
    4. Gunnar Myrdal, 1978. "Institutional Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 12(4), pages 771-783, December.
    5. Fred S. McChesney & William F. Shughart & David D. Haddock, 2004. "On the Internal Contradictions of the Law of One Price," Economic Inquiry, Western Economic Association International, vol. 42(4), pages 706-716, October.
    6. John Hall & Oliver Whybrow, 2008. "Continuity and Continuousness: The Chain of Ideas Linking Peirce’s Synechism to Veblen’s Cumulative Causation," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(2), pages 349-355, June.
    7. Mark Nichols & Oleg Pavlov & Michael J. Radzicki, 2006. "The Circular and Cumulative Structure of Administered Pricing," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(2), pages 517-526, June.
    8. Cherrier, Beatrice, 2009. "Gunnar Myrdal And The Scientific Way To Social Democracy, 1914–1968," Journal of the History of Economic Thought, Cambridge University Press, vol. 31(1), pages 33-55, March.
    9. Sebastian Berger, 2008. "Circular Cumulative Causation (CCC) à la Myrdal and Kapp — Political Institutionalism for Minimizing Social Costs," Journal of Economic Issues, Taylor & Francis Journals, vol. 42(2), pages 357-365, June.
    10. Sebastian Berger, 2009. "Myrdal's Institutional Theory of the State: From Welfare to Predation - and Back?," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(2), pages 353-360.
    11. John Hall & Udo Ludwig, 2009. "Gunnar Myrdal and the Persistence of Germany's Regional Inequality," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(2), pages 345-352.
    12. P. Ho, 2009. "An Institutionalist's Policy Advice to Address International Inequalities: The Contributions of Gunnar Myrdal," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(2), pages 337-344.
    13. F. Gregory Hayden, 2006. "The Inadequacy of Forrester System Dynamics Computer Programs for Institutional Principles of Hierarchy, Feedback, and Openness," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(2), pages 527-535, June.
    14. Myrdal, Gunnar, 1978. "Political and Institutional Economics," Research Series, Economic and Social Research Institute (ESRI), number GLS11.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jackson, William A., 2015. "Distributive Justice With and Without Culture," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(6), pages 673-688.
    2. Jackson, William A., 2015. "Markets and the Meaning of Flexibility," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(2), pages 45-65.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Söderbaum, 2019. "Reconsidering economics in relation to sustainable development and democracy," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 13(1), pages 19-38, November.
    2. Buchs, Arnaud & Calvo-Mendieta, Iratxe & Petit, Olivier & Roman, Philippe, 2021. "Challenging the ecological economics of water: Social and political perspectives," Ecological Economics, Elsevier, vol. 190(C).
    3. Norgaard, Richard, 1983. "Equilibria, Environmental Externalities, and Property Rights: A Coevolutionary View," CUDARE Working Papers 198266, University of California, Berkeley, Department of Agricultural and Resource Economics.
    4. Peter Söderbaum, 2020. "Positional Analysis: A Multidimensional and Democracy-Oriented Approach to Decision-Making and Sustainability," Sustainability, MDPI, vol. 12(14), pages 1-11, July.
    5. Brian Chi‐ang Lin, 2007. "A New Vision Of The Knowledge Economy," Journal of Economic Surveys, Wiley Blackwell, vol. 21(3), pages 553-584, July.
    6. Panos KALIMERIS, 2018. "Ecce Homo-Economicus? The Dr. Jekyll and Mr. Hide syndrome of the economic man in the context of natural resources scarcity and environmental externalities," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 12(1), pages 89-111, November.
    7. Anggi Rahajeng & Wihana Kirana Jaya & Evita Hanie Pangaribowo & Muhadjir Darwin, 2024. "Assessment of regional development pattern towards sustainability urban areas: empirical evidence from Yogyakarta urban areas," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 25827-25848, October.
    8. Frederic Jennings, 2010. "Toward a Horizonal Theory of Justice: Efficiency, Equity, Rights and Capabilities in a Free Market Economy," Forum for Social Economics, Taylor & Francis Journals, vol. 39(1), pages 77-87, January.
    9. Buchs, Arnaud & Petit, Olivier & Roman, Philippe, 2020. "Can social ecological economics of water reinforce the “big tent”?," Ecological Economics, Elsevier, vol. 169(C).
    10. Frederic B Jennings Jr., 2021. "'Everything You Know is Wrong'. A series of challenges and responses," Post-Print hal-03414864, HAL.
    11. Spash, Clive L., 2012. "Ecological Economics and Philosophy of Science: Ontology, Epistemology, Methodology and Ideology," SRE-Discussion Papers 2012/03, WU Vienna University of Economics and Business.
    12. Frederic Jennings Jr., 2022. "The Opportunity Costs of Neoclassical Economics," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 15(1), pages 282-310.
    13. Frederic B. Jennings Jr., 2019. "Economic essays (part one): toward a realistic concept of choice," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 13(1), pages 65-105, November.
    14. K. Kounetas & G. Androulakis & M. Kaisari & G. Manousakis, 2023. "Educational reforms and secondary school's efficiency performance in Greece: a bootstrap DEA and multilevel approach," Operational Research, Springer, vol. 23(1), pages 1-29, March.
    15. Geoffrey M. Hodgson, 2012. "Veblen, Commons and the Theory of the Firm," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 5, Edward Elgar Publishing.
    16. P. Sai-wing Ho, 2010. "Rethinking Trade and Commercial Policy Theories," Books, Edward Elgar Publishing, number 2659.
    17. Valentinov, Vladislav, 2012. "Understanding the rural third sector: insights from Veblen and Bogdanov," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 41(1/2), pages 177-188.
    18. Dirk Ehnts & Michael Paetz, 2021. "COVID-19 and its economic consequences for the Euro Area," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 227-249, June.
    19. Michalis Nikiforos & Simon Grothe & Jan David Weber, 2024. "Markups, profit shares, and cost-push-profit-led inflation," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(2), pages 342-362.
    20. Andrew Phiri, 2017. "Nonlinear adjustment effects in the purchasing power parity," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 60(2), pages 14-38.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajecsc:v:69:y:2010:i:4:p:1155-1177. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0002-9246 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.