By Jon Elster
ISBN-10: 0521371783
ISBN-13: 9780521371780
ISBN-10: 052137815X
ISBN-13: 9780521378154
The essays during this provocative assortment survey and investigate institutional preparations that may be choices to capitalism because it exists this day. The agreed element of departure one of the members is that at the one hand, capitalism results in unemployment, a scarcity of autonomy within the office, and large source of revenue inequalities; whereas nevertheless, significant socialist making plans is characterised by means of underemployment, inefficiency, and forms. partially I, quite a few possible choices are proposed: profit-sharing structures, capitalism mixed with a few important making plans, worker-owned organizations in a industry economic system, or the advent of the weather of marketplace financial system right into a centrally deliberate financial system as has happened lately in Hungary. half II offers a theoretical research and evaluation of those platforms.
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Extra info for Alternatives to Capitalism (Studies in Marxism and Social Theory)
Sample text
Not that neoclassical economists (well not all of them) believe their framework is a good picture of reality, as Solow (1966: 1259–60) admits: I have never thought of the macroeconomic production function as a rigorously justifiable concept. In my mind, it is either an illuminating parable, or else a mere device for handling data, to be used so long as it gives good empirical results, and to be abandoned as soon as it doesn’t, or as soon as something better comes along. Many would argue that the production function is not illuminating but does it give good empirical results?
So what is good for efficiency? The following is based on Gylfason (1999) but there are many similar prescriptions from the new growth theorists (see Sala-i-Martin 2002). First, the liberalisation of trade because of the usual implications of the orthodox theory of comparative advantage (on the limitations of this, see Kitson and Michie 1995). ). Third, macroeconomics stabilisation such as restrictive monetary and fiscal policies to reduce the distortionary impact of inflation. Fourth, investment in education and health, to improve human capital.
According to Abramovitz (1986: 406) changes in technology are ‘more congruent with the resources and institutional outfits of some countries but less congruent with those of others’. Social capability is a society’s ability to assimilate technology and realise its potential and is determined by institutional and social structures as well as market structures. A lack of social capability can be due to perverse incentive structures which dissuade agents (such as workers, producers and government) in the economy from engaging in the most efficient and productive way (as prescribed by the neoclassical paradigm) and due to vested interests hindering the growth process.
Alternatives to Capitalism (Studies in Marxism and Social Theory) by Jon Elster
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