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From mixed economy to entangled political economy: a Paretian social-theoretic orientation

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  • Meg Patrick
  • Richard Wagner

Abstract

This paper compares and contrasts two visions of political economy. These visions aren’t antagonistic, just different. The mixed economy vision associated with Ludwig von Mises and Sanford Ikeda treats politics as intervening into markets. The entangled political economy vision treats politics and markets as overlapping subsystems within a society. Entangled political economy thus descends from a theory of society and social processes. Similarly to quantum entanglement where the state of a particle cannot be described independently of that of other particles, entanglement in political economy means that rational market action cannot be defined independently of rational political action. The focal point of entangled political economy, moreover, is on individual actors and their search for gain within different action environments. Interaction among individuals across those environments generates societal tectonics, thereby adding insights from Vilfredo Pareto about social theory to those of Mises and Ikeda about interventionism. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Meg Patrick & Richard Wagner, 2015. "From mixed economy to entangled political economy: a Paretian social-theoretic orientation," Public Choice, Springer, vol. 164(1), pages 103-116, July.
    • Handle: RePEc:kap:pubcho:v:164:y:2015:i:1:p:103-116
    DOI: 10.1007/s11127-015-0273-8
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    Cited by:

    1. Paul Dragos Aligica & Richard E. Wagner, 2020. "Economic coordination in environments with incomplete pricing," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 33(3), pages 315-329, September.
    2. Pablo Paniagua Prieto, 2022. "The institutional evolution of central banks," Journal of Evolutionary Economics, Springer, vol. 32(3), pages 1049-1070, July.
    3. Meg Patrick Tuszynski, 2021. "Entanglement and Perverse Spontaneous Orders," Studies in Public Choice, in: David J. Hebert & Diana W. Thomas (ed.), Emergence, Entanglement, and Political Economy, pages 87-101, Springer.
    4. Qiyue Zhang & Zheng Wang & Godwin Okafor, 2022. "Understanding China’s Economic Engagement in Africa: An Exploration of the FDI-Trade Nexus," Sustainability, MDPI, vol. 14(23), pages 1-19, November.
    5. Richard Wagner, 2018. "Trade, Power, and Political Economy: Reason vs. Ideology in Edward Stringham’s Private Governance," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 31(2), pages 245-255, June.
    6. Wagner, Richard E., 2019. "Governance within a system of entangled political economy," Forest Policy and Economics, Elsevier, vol. 107(C), pages 1-1.

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    More about this item

    Keywords

    Dynamics of intervention; Mixed economy; Entangled political economy; Vilfredo Pareto; Social theory; Societal tectonics; Non-logical action; Political entrepreneurship; D23; D50; L32; P16;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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