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The Social Costs of Neoliberalism - Essays on the Economics of K. William Kapp

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The Social Costs of Neoliberalism
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... 10 Fifth, the idea of analysing the environmental problems simply as externalities, whose value can be priced, raises many questions. In practice, these prices are estimated using methodologies that often rely on subjective valuations of life and pollution, which cannot reflect the intrinsic value of nature and the actual social cost of environmental degradation ( Neuteleers and Engelen, 2015;Berger, 2017). In addition, according to the tradition of ecological economics, the environmental problems should not be viewed as side effects of economic activity. ...
... There are diametrical differences between the institutionalist conception of social costs and its neoliberal doppelganger conceptions (seeSebastian Berger 2017). ...
Conference Paper
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The article discusses commitment to full employment in light of institutional theory and offers a renewed examination of Keynes's "socialization of investment" concept. The discussion builds on Veblen's theory of human development, predation, and capitalism. It highlights contemporary institutional inquiry in a discussion of ongoing issues of care and social disparities. Based on this, the article formulates problems for a broader inquiry about socialization of investment. The article provides insights about Job Guarantee based on original institutional economics concepts.
... 10 Fifth, the idea of analysing the environmental problems simply as externalities, whose value can be priced, raises many questions. In practice, these prices are estimated using methodologies that often rely on subjective valuations of life and pollution, which cannot reflect the intrinsic value of nature and the actual social cost of environmental degradation (Neuteleers and Engelen, 2015;Berger, 2017). In addition, according to the tradition of ecological economics, the environmental problems should not be viewed as side effects of economic activity. ...
Article
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Fiscal policy has a strong role to play in the transition to an ecologically sustainable economy. This paper critically discusses the way that green fiscal policy has been analysed in both conventional and post-Keynesian approaches. It then uses a recently developed post-Keynesian ecological macroeconomic model in order to provide a comparative evaluation of three different types of green fiscal policy: carbon taxes, green subsidies and green public investment. We show that (i) carbon taxes reduce global warming but increase financial risks due to their adverse effects on the profitability of firms and credit availability; (ii) green subsidies and green public investment improve ecological efficiency, but their positive environmental impact is partially offset by their macroeconomic rebound effects; and (iii) a green fiscal policy mix derives better outcomes than isolated policies. Directions for future heterodox macroeconomic research on the links between fiscal policy and ecological sustainability are suggested.
... 10 Fifth, the idea of analysing the environmental problems simply as externalities, whose value can be priced, raises many questions. In practice, these prices are estimated using methodologies that often rely on subjective valuations of life and pollution, which cannot reflect the intrinsic value of nature and the actual social cost of environmental degradation ( Neuteleers and Engelen, 2015;Berger, 2017). In addition, according to the tradition of ecological economics, the environmental problems should not be viewed as side effects of economic activity. ...
Article
Fiscal policy has a strong role to play in the transition to an ecologically sustainable economy. This paper critically discusses the way that green fiscal policy has been analysed in both conventional and post-Keynesian approaches. It then uses a recently developed post-Keynesian ecological macroeconomic model in order to provide a comparative evaluation of three different types of green fiscal policy: carbon taxes, green subsidies and green public investment. We show that (i) carbon taxes reduce global warming but increase financial risks due to their adverse effects on the profitability of firms and credit availability; (ii) green subsidies and green public investment improve ecological efficiency, but their positive environmental impact is partially offset by their macroeconomic rebound effects; and (iii) a green fiscal policy mix derives better outcomes than isolated policies. Directions for future heterodox macroeconomic research on the links between fiscal policy and ecological sustainability are suggested.
... 10 Fifth, the idea of analysing the environmental problems simply as externalities, whose value can be priced, raises many questions. In practice, these prices are estimated using methodologies that often rely on subjective valuations of life and pollution, which cannot reflect the intrinsic value of nature and the actual social cost of environmental degradation (Neuteleers and Engelen, 2015;Berger, 2017). In addition, according to the tradition of ecological economics, the environmental problems should not be viewed as side effects of economic activity. ...
Chapter
Fiscal policy has a strong role to play in the transition to an ecologically sustainable economy. This contribution critically discusses the way that green fiscal policy has been analysed in both conventional and post-Keynesian approaches. It then uses a recently developed post-Keynesian ecological macroeconomic model in order to provide a comparative evaluation of three different types of green fiscal policy: carbon taxes, green subsidies and green public investment. We show that (i) carbon taxes reduce global warming but increase financial risks due to their adverse effects on the profitability of firms and credit availability; (ii) green subsidies and green public investment improve ecological efficiency, but their positive environmental impact is partially offset by their macroeconomic rebound effects; and (iii) a green fiscal policy mix derives better outcomes than isolated policies. Directions for future heterodox macroeconomic research on the links between fiscal policy and ecological sustainability are suggested.
Article
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We will try to show the potential of a research perspective that we have tentatively called an Institutional Economics of Gift (IEG). For this purpose, we dwell on two key issues that any nascent research perspective is expected to address: the subject matter and the method. Without any claim to exhaustiveness, the subject matter of an IEG will be explored through the analysis of three important forms of institutionalized gift-giving: the welfare state, the third sector, and the percentage philanthropy tax scheme. All of them raise the issue: to what extent gift-giving can be institutionalized and even legally enforced without losing some of its characteristics such as spontaneity, freedom and/or voluntariness? Moreover, this investigation points to the need to reflect more on the relationship between obligation and freedom as well as to go beyond the State/Market dichotomy. Methods will be explored by addressing the question: which methodological approaches are most suitable for an IEG? Methodology is a contentious issue between Original Institutional Economics and New Institutional Economics. However, both approaches, New Institutional Economics implicitly and Original Institutional Economics explicitly, tend to rely on qualitative and mixed empirical research methods. Particular emphasis is placed on anthropology and ethnography.
Article
This article critically examines the institutional economics theory of social costs by way of reviewing The Dark Places of Business Enterprise: Reinstating Social Costs in Institutional-Economics (2019). In particular, the article assesses the proposal to re-root institutional economics in the theoretical synthesis of “Veblen-Kapp-Mirowski” to better understand the social costs of neoliberalism. One of the findings is that while such a synthesis seems justified on the grounds of significant commonalities and the merits of deeper insights, it nevertheless runs into difficulties due to divergent philosophical foundations. One of the conclusions is that further philosophic clarification is needed on how an alternative economy would understand the relationship between “social costs” and Truth.
Book
This thought-provoking volume presents essays on the foundations of non-equilibrium economics, i.e. the principle of circular cumulative causation (CCC). This work presents empirical research on how the interplay of technology’s increasing returns to scale, institutions, resources, and economic policy leads to virtuous circles of economic growth and development, but also to vicious circles of social and ecological degradation. In particular, evidence is provided for the important role of the "development state" and strategic trade policy, economies of large-scale production in manufacturing, the regional level of development and community-based resource management regimes. While demonstrating CCC’s strength in generating empirical research, the book also provides insights into its philosophical foundations and intellectual history. Several essays trace the roots of this full-fledged theoretical framework back to Adam Smith, Classical Political Economy, Thorstein Veblen, Gunnar Myrdal, K. William Kapp and Nicholas Kaldor. As the most comprehensive collection of the growing body of CCC research to date, this book also reflects the emergence of an economic paradigm for understanding economic dynamics and for crafting viable development strategies for the 21st century. The volume will be of great interest to scholars of growth and development economics, institutional and evolutionary economics, political economy, and Post Keynesian economics from undergraduate to postgraduate research levels.