Download e-book for iPad: Varieties of Capitalism, Varieties of Approaches by D. Coates

By D. Coates

ISBN-10: 0230522726

ISBN-13: 9780230522725

ISBN-10: 1349514284

ISBN-13: 9781349514281

ISBN-10: 5345310149

ISBN-13: 9785345310144

Although the rising sub-discipline of comparative political economic climate is now wealthy in stories of alternative complex capitalisms, it nonetheless lacks a scientific attention of the organizing frameworks and methodologies underpinning these stories. This definitive quantity outlines the 2 nice debates at the moment shaping the research of complicated capitalism. It makes the case for a better understanding of underlying theoretical matters within the layout of empirical study, and demonstrates the price of exploring the interconnections among competing highbrow ways.

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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.

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Varieties of Capitalism, Varieties of Approaches by D. Coates


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