Political economy after economics scientific method and radical imagination

Downloaded by [University of Ottawa] at 21:17 16 September 2016 Political Economy After Economics Scientific method and radical imagination David Laibman Routledge Frontiers of Political Economy www.ebook3000.com Downloaded by [University of Ottawa] at 21:17 16 September 2016 Political Economy After Economics The “magnificent dynamics” and broad social focus of the classical political economists were replaced, at the end of the nineteenth century, by mathematically structured abstract models of competition among “individuals” and “firms.” Should we reject modern economics and go back to the grand philosophical approaches of Adam Smith and Karl Marx (among others)? Or should we redevelop and strengthen those approaches by incorporating the more recent model-building methods? The question answers itself Chapter by chapter, this book examines a wide range of economic problems, among others: technical change and the rate of profit, value and price formation in capitalist economies, classical (as opposed to textbook) approaches to supply and demand, rationing and price control, the impact of government policy on economic activity, and the nature and role of incentives in a model of socialist planning that is both central and decentralized In each case, it is shown that formal economic-theory methods can be used to support, rather than to obscure, the core insight of critical political economics: the “economy” is really an aspect of a deeper system of social relations, with huge implications for power, conflict, and social transformation This re-incorporation of economics into political economy is one (small, but not insignificant) element in a larger project: to place all of the resources of present-day social-scientific research at the service of increasing democracy, in an ultimate direction toward socialism in the classic sense An economics-enriched political economy is, above all, empowering; working people in general can calculate, build models, think theoretically, and contribute to a human-worthy future, rather than leaving all this to their “betters.” David Laibman is Professor of Economics (retired) at Brooklyn College and the Graduate Center, City University of New York He is also Editor of Science & Society www.ebook3000.com Downloaded by [University of Ottawa] at 21:17 16 September 2016 Routledge frontiers of political economy    Equilibrium Versus Understanding Towards the rehumanization of economics within social theory Mark Addleson    Evolution, Order and Complexity Edited by Elias L Khalil and Kenneth E Boulding    Interactions in Political Economy Malvern after ten years Edited by Steven Pressman    The End of Economics Michael Perelman    Probability in Economics Omar F Hamouda and Robin Rowley    Capital Controversy, Post Keynesian Economics and the History of Economics Essays in honour of Geoff Harcourt, volume one Edited by Philip Arestis, Gabriel Palma and Malcolm Sawyer    Markets, Unemployment and Economic Policy Essays in honour of Geoff Harcourt, volume two Edited by Philip Arestis, Gabriel Palma and Malcolm Sawyer    Social Economy The logic of capitalist development Clark Everling    New Keynesian Economics/Post Keynesian Alternatives Edited by Roy J Rotheim   10 The Representative Agent in Macroeconomics James E Hartley   11 Borderlands of Economics Essays in honour of Daniel R Fusfeld Edited by Nahid Aslanbeigui and Young Back Choi   12 Value, Distribution and Capital Essays in honour of Pierangelo Garegnani Edited by Gary Mongiovi and Fabio Petri   13 The Economics of Science Methodology and epistemology as if economics really mattered James R Wible   14 Competitiveness, Localised Learning and Regional Development Specialisation and prosperity in small open economies Peter Maskell, Heikki Eskelinen, Ingjaldur Hannibalsson, Anders Malmberg and Eirik Vatne   15 Labour Market Theory A constructive reassessment Ben J Fine   16 Women and European Employment Jill Rubery, Mark Smith, Colette Fagan and Damian Grimshaw www.ebook3000.com   17 Explorations in Economic Methodology From Lakatos to empirical philosophy of science Roger Backhouse Downloaded by [University of Ottawa] at 21:17 16 September 2016   18 Subjectivity in Political Economy Essays on wanting and choosing David P Levine   19 The Political Economy of Middle East Peace The impact of competing trade agendas Edited by J.W Wright, Jnr   20 The Active Consumer Novelty and surprise in consumer choice Edited by Marina Bianchi   21 Subjectivism and Economic Analysis Essays in memory of Ludwig Lachmann Edited by Roger Koppl and Gary Mongiovi   22 Themes in Post-Keynesian Economics Essays in honour of Geoff Harcourt, volume three Edited by Claudio Sardoni and Peter Kriesler   23 The Dynamics of Technological Knowledge Cristiano Antonelli   24 The Political Economy of Diet, Health and Food Policy Ben J Fine   25 The End of Finance Capital market inflation, financial derivatives and pension fund capitalism Jan Toporowski   26 Political Economy and the New Capitalism Edited by Jan Toporowski   27 Growth Theory A philosophical perspective Patricia Northover   28 The Political Economy of the Small Firm Edited by Charlie Dannreuther   29 Hahn and Economic Methodology Edited by Thomas Boylan and Paschal F O’Gorman   30 Gender, Growth and Trade The miracle economies of the postwar years David Kucera   31 Normative Political Economy Subjective freedom, the market and the state David Levine   32 Economist with a Public Purpose Essays in honour of John Kenneth Galbraith Edited by Michael Keaney   33 Involuntary Unemployment The elusive quest for a theory Michel De Vroey   34 The Fundamental Institutions of Capitalism Ernesto Screpanti   35 Transcending Transaction The search for self-generating markets Alan Shipman   36 Power in Business and the State An historical analysis of its concentration Frank Bealey   37 Editing Economics Essays in honour of Mark Perlman Hank Lim, Ungsuh K Park and Geoff Harcourt   38 Money, Macroeconomics and Keynes Essays in honour of Victoria Chick, Volume Philip Arestis, Meghnad Desai and Sheila Dow www.ebook3000.com   39 Methodology, Microeconomics and Keynes Essays in honour of Victoria Chick, Volume Philip Arestis, Meghnad Desai and Sheila Dow Downloaded by [University of Ottawa] at 21:17 16 September 2016   40 Market Drive and Governance Reexamining the rules for economic and commercial contest Ralf Boscheck   41 The Value of Marx Political economy for contemporary capitalism Alfredo Saad-Filho   42 Issues in Positive Political Economy S Mansoob Murshed   43 The Enigma of Globalisation A journey to a new stage of capitalism Robert Went   44 The Market Equilibrium, stability, mythology S.N Afriat   45 The Political Economy of Rule Evasion and Policy Reform Jim Leitzel   46 Unpaid Work and the Economy Edited by Antonella Picchio   47 Distributional Justice Theory and measurement Hilde Bojer   48 Cognitive Developments in Economics Edited by Salvatore Rizzello   52 Kalecki’s Economics Today Edited by Zdzislaw L Sadowski and Adam Szeworski   53 Fiscal Policy from Reagan to Blair The left veers right Ravi K Roy and Arthur T Denzau   54 The Cognitive Mechanics of Economic Development and Institutional Change Bertin Martens   55 Individualism and the Social Order The social element in liberal thought Charles R McCann Jnr   56 Affirmative Action in the United States and India A comparative perspective Thomas E Weisskopf   57 Global Political Economy and the Wealth of Nations Performance, institutions, problems and policies Edited by Phillip Anthony O’Hara   58 Structural Economics Thijs ten Raa   59 Macroeconomic Theory and Economic Policy Essays in honour of Jean-Paul Fitoussi Edited by K Vela Velupillai   60 The Struggle Over Work The “end of work” and employment alternatives in post-industrial societies Shaun Wilson   49 Social Foundations of Markets, Money and Credit Costas Lapavitsas   61 The Political Economy of Global Sporting Organisations John Forster and Nigel Pope   50 Rethinking Capitalist Development Essays on the economics of Josef Steindl Edited by Tracy Mott and Nina Shapiro   62 The Flawed Foundations of General Equilibrium Theory Critical essays on economic theory Frank Ackerman and Alejandro Nadal   51 An Evolutionary Approach to Social Welfare Christian Sartorius   63 Uncertainty in Economic Theory Essays in honor of David Schmeidler’s 65th birthday Edited by Itzhak Gilboa www.ebook3000.com Downloaded by [University of Ottawa] at 21:17 16 September 2016   64 The New Institutional Economics of Corruption Edited by Johann Graf Lambsdorff, Markus Taube and Matthias Schramm   76 The Future of Social Security Policy Women, work and a citizen’s basic income Ailsa McKay   65 The Price Index and its Extension A chapter in economic measurement S.N Afriat   77 Clinton and Blair The political economy of the third way Flavio Romano   66 Reduction, Rationality and Game Theory in Marxian Economics Bruce Philp   67 Culture and Politics in Economic Development Volker Bornschier   68 Modern Applications of Austrian Thought Edited by Jürgen G Backhaus   69 Ordinary Choices Individuals, incommensurability, and democracy Robert Urquhart   70 Labour Theory of Value Peter C Dooley   78 Marxian Reproduction Schema Money and aggregate demand in a capitalist economy A.B Trigg   79 The Core Theory in Economics Problems and solutions Lester G Telser   80 Economics, Ethics and the Market Introduction and applications Johan J Graafland   81 Social Costs and Public Action in Modern Capitalism Essays inspired by Karl William Kapp’s Theory of Social Costs Edited by Wolfram Elsner, Pietro Frigato and Paolo Ramazzotti   71 Capitalism Victor D Lippit   82 Globalization and the Myths of Free Trade History, theory and empirical evidence Edited by Anwar Shaikh   72 Macroeconomic Foundations of Macroeconomics Alvaro Cencini   83 Equilibrium in Economics Scope and limits Edited by Valeria Mosini   73 Marx for the 21st Century Edited by Hiroshi Uchida   84 Globalization State of the art and perspectives Edited by Stefan A Schirm   74 Growth and Development in the Global Political Economy Social structures of accumulation and modes of regulation Phillip Anthony O’Hara   75 The New Economy and Macroeconomic Stability A neo-modern perspective drawing on the complexity approach and Keynesian economics Teodoro Dario Togati   85 Neoliberalism National and regional experiments with global ideas Edited by Ravi K Roy, Arthur T Denzau and Thomas D Willett   86 Post-Keynesian Macroeconomics Economics Essays in honour of Ingrid Rima Edited by Mathew Forstater, Gary Mongiovi and Steven Pressman www.ebook3000.com   87 Consumer Capitalism Anastasios S Korkotsides Downloaded by [University of Ottawa] at 21:17 16 September 2016   88 Remapping Gender in the New Global Order Edited Marjorie Griffin Cohen and Janine Brodie 101 Economic Policy and Performance in Industrial Democracies Party governments, central banks and the fiscal–monetary policy mix Takayuki Sakamoto   89 Hayek and Natural Law Erik Angner 102 Advances on Income Inequality and Concentration Measures Edited by Gianni Betti and Achille Lemmi   90 Race and Economic Opportunity in the Twenty-First Century Edited by Marlene Kim 103 Economic Representations Academic and everyday Edited by David F Ruccio   91 Renaissance in Behavioural Economics Harvey Leibenstein’s impact on contemporary economic analysis Edited by Roger Frantz 104 Mathematical Economics and the Dynamics of Capitalism Goodwin’s legacy continued Edited by Peter Flaschel and Michael Landesmann   92 Human Ecology Economics A new framework for global sustainability Edited by Roy E Allen 105 The Keynesian Multiplier Edited by Claude Gnos and Louis-Philippe Rochon   93 Imagining Economics Otherwise Encounters with identity/difference Nitasha Kaul   94 Reigniting the Labor Movement Restoring means to ends in a democratic labor movement Gerald Friedman   95 The Spatial Model of Politics Norman Schofield   96 The Economics of American Judaism Carmel Ullman Chiswick   97 Critical Political Economy Christian Arnsperger   98 Culture and Economic Explanation Economics in the US and Japan Donald W Katzner   99 Feminism, Economics and Utopia Time travelling through paradigms Karin Schönpflug 100 Risk in International Finance Vikash Yadav 106 Money, Enterprise and Income Distribution Towards a macroeconomic theory of capitalism John Smithin 107 Fiscal Decentralization and Local Public Finance in Japan Nobuki Mochida 108 The ‘Uncertain’ Foundations of Post-Keynesian Economics Essays in exploration Stephen P Dunn 109 Karl Marx’s Grundrisse Foundations of the critique of political economy 150 years later Edited by Marcello Musto 110 Economics and the Price Index S.N Afriat and Carlo Milana 111 Sublime Economy On the intersection of art and economics Edited by Jack Amariglio, Joseph W Childers and Stephen E Cullenberg www.ebook3000.com 112 Popper, Hayek and the Open Society Calvin Hayes 113 The Political Economy of Work David Spencer Downloaded by [University of Ottawa] at 21:17 16 September 2016 114 Institutional Economics Bernard Chavance 115 Religion, Economics and Demography The effects of religion on education, work, and the family Evelyn L Lehrer 116 Economics, Rational Choice and Normative Philosophy Edited by Thomas A Boylan and Ruvin Gekker 117 Economics Versus Human Rights Manuel Couret Branco 125 Full-Spectrum Economics Toward an inclusive and emancipatory social science Christian Arnsperger 126 Computable, Constructive and Behavioural Economic Dynamics Essays in honour of Kumaraswamy (Vela) Velupillai Stefano Zambelli 127 Monetary Macrodynamics Toichiro Asada, Carl Chiarella, Peter Flaschel and Reiner Franke 128 Rationality and Explanation in Economics Maurice Lagueux 129 The Market, Happiness and Solidarity A Christian perspective Johan J Graafland 118 Hayek Versus Marx and Today’s Challenges Eric Aarons 130 Economic Complexity and Equilibrium Illusion Essays on market instability and macro vitality Ping Chen 119 Work Time Regulation as Sustainable Full Employment Policy Robert LaJeunesse 131 Economic Theory and Social Change Problems and revisions Hasse Ekstedt and Angelo Fusari 120 Equilibrium, Welfare and Uncertainty Mukul Majumdar 132 The Practices of Happiness Political economy, religion and wellbeing Edited by John Atherton, Elaine Graham and Ian Steedman 121 Capitalism, Institutions and Economic Development Michael Heller 122 Economic Pluralism Robert Garnett, Erik Olsen and Martha Starr 133 The Measurement of Individual Well-Being and Group Inequalities Essays in memory of Z M Berrebi Edited by Joseph Deutsch and Jacques Silber 123 Dialectics of Class Struggle in the Global Economy Clark Everling 134 Wage Policy, Income Distribution, and Democratic Theory Oren M Levin-Waldman 124 Political Economy and Globalization Richard Westra 135 The Political Economy of Bureaucracy Steven O Richardson www.ebook3000.com 136 The Moral Rhetoric of Political Economy Justice and modern economic thought Paul Turpin Downloaded by [University of Ottawa] at 21:17 16 September 2016 137 Macroeconomic Regimes in Western Industrial Countries Hansjörg Herr and Milka Kazandziska 138 Business Ethics and the Austrian Tradition in Economics Hardy Bouillon 139 Inequality and Power The economics of class Eric A Schutz 140 Capital as a Social Kind Definitions and transformations in the critique of political economy Howard Engelskirchen 141 Happiness, Ethics and Economics Johannes Hirata 142 Capital, Exploitation and Economic Crisis John Weeks 143 The Global Economic Crisis New perspectives on the critique of economic theory and policy Edited by Emiliano Brancaccio and Giuseppe Fontana 144 Economics and Diversity Carlo D’Ippoliti 145 Political Economy of Human Rights Rights, realities and realization Bas de Gaay Fortman 146 Robinson Crusoe’s Economic Man A construction and deconstruction Edited by Ulla Grapard and Gillian Hewitson 147 Freedom and Happiness in Economic Thought and Philosophy From clash to reconciliation Edited by Ragip Ege and Herrade Igersheim 148 Political Economy After Economics Scientific method and radical imagination David Laibman www.ebook3000.com Political Economy After Economics Downloaded by [University of Ottawa] at 21:17 16 September 2016 Scientific method and radical imagination David Laibman www.ebook3000.com Downloaded by [University of Ottawa] at 21:17 16 September 2016 222   Bibliography Maler, Henri 1998 “An Apochryphal Testament: Socialism, Utopian and Scientific.” In Joost Kircz and Michael Löwy, eds., “Friedrich Engels: A Critical Centenary Appreciation.” Science & Society (special issue), 62:1 (Spring), 62–78 Mankiw, N Gregory, and David Romer, eds 1991 New Keynesian Economics Volume 2: Coordination Failures and Real Rigidities Cambridge, Massachusetts: MIT Press Marcuzzo, M.C 1999 “Sraffa and Cambridge Economics, 1928–1931.” Paper delivered at History of Economics Society, Allied Social Sciences Association, New York, January Marx, Karl 1906 Capital, Vol I Chicago, Illinois: Charles H Kerr Marx, Karl 1909 Capital, Vol III Chicago, Illinois: Charles H Kerr Marx, Karl 1915 Capital, Vol II Chicago, Illinois: Charles H Kerr Marx, Karl 1933a Wage-Labour and Capital/Value, Price and Profit New York: International Publishers Marx, Karl 1933b The Critique of the Gotha Programme New York: International Publishers Marx, Karl 1954 [1852] The Eighteenth Brumaire of Louis Bonaparte Moscow: Progress Publishers Marx, Karl 1966 Critique of the Gotha Programme With appendices by Marx, Engels and Lenin New York: International Publishers Marx, Karl 1967 Capital, Vol I New York: International Publishers Marx, Karl 1977 Capital, Vol I New York: Random House Marx, Karl 1982 Capital, Vol III New York: Random House Marx, Karl, and Friedrich Engels 1971 The Communist Manifesto In Dirk J Struik, ed., Birth of the Communist Manifesto New York: International Publishers Meek, Ronald 1967 “Some Notes on the ‘Transformation Problem.” In Ronald Meek, ed., Economics and Ideology and Other Essays London: Chapman and Hall Morishima, Michio 1973 Marx’s Economics: A Dual Theory of Value and Growth London: Cambridge University Press Morishima, Michio, and George Catephores 1975 “Is There an ‘Historical Transformation Problem’?” Economic Journal, 86:338 (June), 309–328 Moseley, Fred 1991 The Falling Rate of Profit in the Postwar United States Economy Basingstoke, England: Macmillan Moseley, Fred 1993 “Marx’s Logical Method and the ‘Transformation Problem’.” In Fred Moseley, ed., Marx’s Method in Capital: A Reexamination Atlantic Highlands, New Jersey: Humanities Press Moseley, Fred 1996 “The Return to Marx: Retreat or Advance?” Paper presented to Third Miniconference, International Working Group in Value Theory, Boston, Massachussetts, March Mukherji, Anjan 1990 Walrasian and Non-Walrasian Equilibria: An Introduction to General Equilibrium Analysis Oxford, England: Clarendon Press Nell, Edward J 1972 “Property and the Means of Production: A Primer on the Cambridge Controversy.” Review of Radical Political Economics, 4:2, 1–27 Nell, Edward J 1998 The General Theory of Transformational Growth: Keynes After Sraffa Cambridge, England/New York: Cambridge University Press Nove, Alec 1961 The Soviet Economy: An Introduction New York: F.A Praeger Nove, Alec 1983 The Economics of Feasible Socialism London/Boston, Massachusetts: G Allen & Unwin Ochoa, Eduardo 1989 “Values, Prices, and Wage-Profit Curves in the U S Economy.” Cambridge Journal of Economics, 13:3, 413–429 Downloaded by [University of Ottawa] at 21:17 16 September 2016 Bibliography   223 Okishio, Nobuo 1961 “Technical Change and the Rate of Profit.” Kobe University Economic Review, 7, 86–99 Okishio, Nobuo 1963 “A Mathematical Note on Marxian Theorems.” Weltwirtschaftsliches Archiv, 91:2, 287–299 Ollman, Bertell 1996 “Market Mystification in Capitalist and Market Socialist Societies.” Paper presented to American Political Science Association, San Francisco, California, August 29 to September Ollman, Bertell, ed 1998 Market Socialism: The Debate Among Socialists New York: Routledge Pasinetti, Luigi 1977 Lectures in the Theory of Production New York: Columbia University Press Perlo, Victor 1968 “Capital–Output Ratios in Manufacturing.” Quarterly Review of Economics and Business, 8:3, 28–42 Pickersgill, Gary M., and Joyce E Pickersgill 1973 Contemporary Economic Systems: A Comparative View Englewood Cliffs, New Jersey: Prentice-Hall Ricardo, David 1951 [1821] On the Principles of Political Economy and Taxation Ed Piero Sraffa Cambridge, England: Cambridge University Press Roberts, K 1979 “The Characterization of Implementable Choice Rules.” In J.-J Laffont, ed., Aggregation and Revelation of Preferences Amsterdam: North-Holland Robinson, Joan 1966 [1942] An Essay on Marxian Economics New York/London: Macmillan/St Martin’s Press Robinson, Joan 1971 Economic Heresies London: Basic Books Roemer, John E 1981 Analytical Foundations of Marxian Economic Theory Cambridge, England: Cambridge University Press Roemer, John E 1994 A Future for Socialism London/Cambridge, Massachusetts: Verso/Harvard University Press Romer, C.D., and D.H Romer 1989 “Does Monetary Policy Matter? A New Test in the Spirit of Friedman and Schwartz.” NBER Macroeconomics Annual, vol Chicago, Illinois: University of Chicago Press Roosevelt, Frank, and David Belkin, eds 1994 Why Market Socialism? Essays from Dissent Armonk, New York: M.E Sharpe Rosdolsky, Roman 1977 The Making of Marx’s “Capital.” London: Pluto Press Samuelson, Paul A 1957 “Wages and Interest: A Modern Dissection of Marxian Models.” American Economic Review, 47:6 (December), 884–912 Samuelson, Paul A 1971 “Understanding the Marxian Notion of Exploitation: A Summary of the So-Called Transformation Problem Between Marxian Values and Competitive Prices.” Journal of Economic Literature, 9:2 (June), 399–431 Schumpeter, Joseph A 1951 Ten Great Economists, From Marx to Keynes New York: Oxford University Press Schwartzman, David 1996 “Solar Communism.” Science & Society, 60:3 (Fall), 307–331 Schweickart, David 1996 Against Capitalism Boulder, Colorado: Westview Press Science & Society 2002 Special Issue: “Building Socialism Theoretically: Alternatives to Capitalism and the Invisible Hand,” Pat Devine, ed Science & Society, 66:1 (Spring) Seton, Francis 1957 “The ‘Transformation Problem.’ ” Review of Economic Studies, 24:3 (June), 149–160 Shaikh, Anwar 1977 “Marx’s Theory of Value and the ‘Transformation Problem’.” In Jesse Schwartz, ed., The Subtle Anatomy of Capitalism Santa Monica, California: Goodyear Downloaded by [University of Ottawa] at 21:17 16 September 2016 224   Bibliography Shaikh, Anwar 1998 “The Empirical Strength of the Labor Theory of Value.” In Riccardo Bellofiore, ed., Marxian Economics: A Reappraisal, Volume II New York: St Martin’s Press Shaikh, Anwar, and E Ahmet Tonak 1994 Measuring the Wealth of Nations: the Political Economy of National Accounts New York: Cambridge University Press Silberberg, Eugene, and Wing Suen 2001 The Structure of Economics: A Mathematical Analysis 3rd edn Boston: Irwin/McGraw-Hill Skillman, Gilbert M 1995 “The Temporal Single-System Approach to the ‘Transformation Problem’.” Paper presented at URPE Summer Conference, August Smith, Adam 1985 [1776] An Inquiry into the Nature and Causes of the Wealth of Nations New York: Modern Library College Editions 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27:1, 97–126 Thompson, Frank 1996 “The Composition of Capital and the Rate of Profit: A Reply to Laibman.” Review of Radical Political Economics, 30:1, 90–107 van der Linden, Marcel 2007 Western Marxism and the Soviet Union: A Survey of Critical Theories and Debates Since 1917 Historical Materialism Book Series, Vol 17 Leiden, Amsterdam/London: Brill van Parijs, Phillippe 1980 “The Falling Rate of Profit Theory of Crisis: A Radical Reconstruction by Way of Obituary.” Review of Radical Political Economics, 12:1, 1–16 Varian, Hal R 1984 Microeconomic Analysis 2nd edn New York, London: W.W Norton Varoufakis, Yanis 1998 Foundations of Economics: A Beginner’s Companion London/ New York: Routledge Vickrey, William S 1961 “Counterspeculation, Auctions, and Competitive Sealed Tenders.” Journal of Finance, 16:1 (March), 8–37 Weisskopf, Thomas 1992 “Toward a Socialism for the Future, in the Wake of the Demise of the Socialism of the Past.” Review of Radical Political Economics, 24: 3/4 (Fall/Winter), 1–28 Weitzman, Martin L 1977 “Is the Price System or Rationing More Effective in Getting a Commodity to Those Who Need It Most?” Bell Journal of Economics, 8:2 (Autumn), 517–524 Winternitz, J 1948 “Values and Prices of Production: A Solution of the So-Called Transformation Problem.” Economic Journal, 58:230 (June), 276–280 Wolff, Rick, Antonio Callari, and Bruce Roberts 1984 “A Marxian Alternative to the Traditional Transformation Problem.” Review of Radical Political Economics, 16:2, Bibliography   225 Downloaded by [University of Ottawa] at 21:17 16 September 2016 Wright, Erik Olin, ed 1996 Equal Shares: Making Market Socialism Work John E Roemer and Contributors London/New York: Verso Yang, Jinhai 2009 “The Historical Significance of the Combination of Socialism and the Market Economy.” Science & Society, 73:2 (April), 170–176 Young, Allyn A 1928 “Increasing Returns and Economic Progress.” Economic Journal, XXXVIII:152 (December), 527–542 Downloaded by [University of Ottawa] at 21:17 16 September 2016 Index abstract capitalist economy, and value‒price determination 34 accumulation: and anomalous character of physicalist wage assumption 78; biased, and endogenous technical change 68‒72; financial forms of 72; and labor (power) market 63‒68; no long-run falling profit rate tendency 76; and prisoners’ dilemmas 73; and profit-rate cycles 75‒7; and profit share 76; and technical change 90 accumulation ratio 74; constancy of 78 Adams, John aggregate demand 157; curve 159 aggregate supply: theory of 154‒71 Akerlof, George, and Janet Yellen 202 Albert, Michael, and Robin Hahnel 175, 177, 214 Allen, R.G.D 182 Althusser, Louis 141 “Analytical Marxism” 11, 36, 176 arbitrage, competitive 125 Aristotle 19 Arrow, Kenneth 38, 143; and Frank Hahn 143 atomistic competition: critique of, and envisioning of social alternatives 153 Austrian School 38 balance of class forces: creation of a general balance 33; relative/specific versus general 32 Böhm-Bawerk, Eugen von 38, 52, 54, 88, 122 Bortkiewicz, Ladislaus von 40, 46‒8, 51, 52, 54; “logical error” accusation against Marx 45 Brody, Andras 17, 24, 42 Brooklyn Botanic Garden 183 Bureau of Economic Analysis 79 Cambridge Criticism 59, 116 Campbell, Al 72 Campbell, Donald 194 capital: as disembodied entity 86; fixed versus circulating 80‒1; and private property 86 capital stock: and depreciation 95; estimation, and capacity utilization 80; estimation, inflated book values 80; estimation, perpetual inventory method 80; marginal versus average valuation 91‒4; and refinancing 95; scrapping of early vintages 95; total replacement, exaggeration of profit rate 103; valuation, conflict between historical and replacement cost 102; valuation, in one-good model 91 Capital I 21, 53, 82, 83, 86, 98 Capital III 42, 49, 58, 121‒2 capitalism: abstract, defined 14; and bargaining 33; beyond rational choice 72; competition and value formation 40; creative and managerial functions in 177; crisis, multiple sites 72; crisis, role of critical tendencies in 71; crisis, structural versus contingent 56; crisis, theory of 55; as expression of human nature 173; growth, non-steady-state 58; growth model, basic equation 60; growth model, and heterogeneous capital 59; logic 84; monopoly 14; nature 84; nature, systemic versus rational 34; post-industrial-revolution 89; regional differentiation 14; and rational choice 31; sectoral structure 15; transformative and homeostatic properties 39; upper limit to possible wage rate 178; and valorization 33; value determination 24‒30; value determination and production culture Downloaded by [University of Ottawa] at 21:17 16 September 2016 Index   227 33; and value dimension 14; workplace, incentive versus control 177 Capitalism, Nature, Socialism 72 capitalist economy, abstract 14, 23 capitalist value determination see value Carchedi, Guglielmo 40, 44, 51, 87, 88 central planning: loses local and tacit knowledge 215; versus need for delegation 215; new IT model of 215 Cherry Esplanade Conjecture 172‒89, 178; and development of productive forces 173‒4; and historical materialism 184; logic 182‒7; reversal of quality‒productivity curve 183; shape of quality‒productivity curve 173; as simple hypothesis 173 Chiang, Alpha C and Kevin Wainwright 8, 86, 115 China: Chinese Academy of Social Science class struggle: “solved” in rational choice theory 32 classical model: capitalist subcase 152; generalized to fixed endowments 152; n sectors 144; Pareto optimality in 144; simple commodity (producer‒trader) subcase 143; sectors 144 classical‒Sraffian theory 34 Cobb-Douglas utility function 133, 137, 150; labor versus leisure 161 cobweb dynamics 115; in socialism 181 Cockshott, Paul, and Allin Cottrell 188, 215 collateralization: dynamic, and rate of profit 103 Collective Morale Function 191, 194, 203‒5; answer to Impossibility Theorem 194‒5; constraining reward maximization 205‒8; and material incentives 210‒12; and TINA thinking 191, 192; specification of 204‒5 communism 187; lower phase of 210 Communist Manifesto 55, 71, 83, 182‒3; theory of crisis 55 Communist Parties 215 communitarian socialism 175 competition: “free” 14; “perfect” 14; specifically capitalist 143; unrestrained 14 competitive equilibrium 140; MRT ≠ mrt 152; Pareto inefficiency of 152; and strategic behavior 140; welfare loss in 151; welfare loss not related to specific externalities 153 composition of capital, definitions of 81‒2; increasing, and crisis 73; increasing, empirical evidence 79‒80; increasing, possible optimality of 70; increasing, and reserve army of unemployed 64; invariant to rate of exploitation 82; official data, critical analysis of 79‒80 comprehensive planning 175, 190 conjunctural standpoint (of the firm), versus macro action of firms 142 consensualization, in socialism 175 consistent path 58, 69, 70; empirical likelihood of 70 consumption, and class reproduction 76 contracts, incomplete 203 control ceiling 177 convergence, as non-conscious process 33 cost: in classical theory, and balance of class forces 124 crisis: of legitimation 33; structural tendencies towards 55 crisis theory: accumulation versus biased technical change 82; constant real wage, irrelevance of 83; and falling rate of profit 83; falling r‒rising π dilemma 71; and finance 72; and formation of proletariat 71; multiple sites in 72; need for synthesis 72; non-mechanistic interpretation of 72; and state sector 72; and working-class capability 87 critical tendencies, and theory of crisis 71 Critique of the Gotha Programme 195 Critique of Political Economy 21 cross-dual dynamics 52 Cuba: University of Havana, Faculty of Economics Da Silva, Ednaldo 18 Debreu, Gerard 38, 143 decreasing returns 143; in classical model, formalized 147; crop/dairy example 145; to implicit fixed factors 145 demand curve 123 demand, substitution effects in 123 demand and supply see supply and demand democracy, in left thought 187‒8 Democratic Republic of Vietnam, Working Youth Union depreciation, accelerated 80 Devine, Pat 175, 214 devolution ratio 177 dialectic, and methodology 11 disequilibrium dynamics: versus “nonequilibrium” 20 Downloaded by [University of Ottawa] at 21:17 16 September 2016 228   Index Dixon, H.D., and N Rankin 157 Dobb, Maurice 42, 51, 58, 121, 156, 161, 162, 166, 193 Dobb Effect 161‒3; application to macroeconomic equilibrium and policy 163; conflict and indeterminacy in 163; and customary standard of living 163; and variability of labor supply 163 Dornbusch, Rudiger, Stanley Fischer and Richard Startz 157, 158, 159, 164 Duménil, Gérard 17, 28, 42, 51 dynamic collateralization 103 dynamics, “non-equilibrium” 38 economic coordination: binary view of market versus command 192‒3 economic rationality, and left agenda 72 economic theory: ideology versus practical uses 141; mainstream, hidden assumptions in 155; mainstream, internal critique of 155; as radical searchlight 6; and subtle misdirection 129 effective quantity of money 27 efficiency‒equity tradeoff 172; slim theoretical basis for 182 Ehrenreich, Barbara 164 Ellman, Michael 193, 194, 198 Elster, Jon empiricism, in value theory 18 Engels, Friedrich 6, 22, 175 equations, non-algebraic 130 equilibria, multiple 140 equilibrium: as ideology 4; methodological 4, 53; ontological 4, 53; and political economy 85 Ernst, John 40, 87 essence, and phenomenon 11 exchange of equivalents 30‒1 falling rate of profit 85, 87; “absence of positive accumulation” assumption 58; and biased technical change 56; cone of microrational possibilities 62; empirical likelihood of 58; graphical analysis 57; historical cost valuation, illogic of 104; inevitable versus contingent 56; and labor market 57; of lagging capitals 103; Marxist “golden age” 63; and microrationality 58; and short time horizons 57; of successful capitals 103; ultimate TSSI argument 100‒3; and viability, cone of possibilities with variable wage 61‒2; and viability, nonoverlapping when wage is constant 61 Farmer, R.E.A 159, 161 fear of authority, in models of socialism 213‒14 fear of calculation, in models of socialism 214 fear of delegation, in models of socialism 215 fear of planning, in models of socialism 213 fear of the Soviet experience, in models of socialism 215 Federal Reserve 156 finance: popular arguments on Fine, Ben 30 fiscal policy 8, 154; in disrepute 156 fixed capital: and joint production 81; in model of technical change 89 Flaschel, Peter, and Willi Semmler 52 Folbre, Nancy 177 Foley, Duncan 20, 58, 71; as “dualist equilibrium theorist” 111 formal models: caution in drawing conclusions 30 formalism, in value theory 19 Freeman, Alan 37‒8, 40, 44, 45, 87, 88; and Andrew Kliman 87, 104‒12; and Guglielmo Carchedi 20, 44, 45, 87, 88 Friedman, David 132 General Electric 1970 strike 114‒15 general equilibrium 140; post-Arrow– Debreu 153 Gillman, Joseph 58 Gini coefficient 139 Giussani, Paolo 40 Goodwin, Richard M 66 Gorbachev, Mikhail 215 Gordon, Robert 80 Gramsci, Antonio 56 Great Depression 154 Great Recession Gregory, Paul 193 growth factors, defined 90 growth rates, algebra of 74 Hahnel, Robin 214 Halevi, Joseph, et al Harcourt, Geoffrey 59 Harris, Donald 42 Hart-Landsberg, Martin 132 Hayek, Friedrich 38, 192, 193 Hegel, G.W.F 11 Heilbroner, Robert 10, 13, 34, 84 Henderson, James M., and Richard E Quandt 132, 133 Downloaded by [University of Ottawa] at 21:17 16 September 2016 Index   229 Heroclitus 45 historical cost valuation 88, 102‒4; capital stock valuation 92; and profit rate, model of 88‒96; and unanticipated technical change 102 historical transformation problem 23 Ho Chi Minh, “Testament” Howard, M.C and J.C King 15, 58 human nature: and capitalism 174; and socialism 174 Hume, David 20 Hurwicz, Leonid 194 hydraulic Keynesianism 171 Impossibility Theorem 190‒1, 194 incentive design literature 194 incentive floor 178 incentives: and growth in socialist consciousness 216; individual and collective 180; material and moral 180; for non-distorting behavior 194; objective existence of 180; required for rising consciousness 195; transcendence of need for 216 indifference curves 129 indirect utility function 133 individuation 174 industrial reserve army, stagnant component 56 information, imperfect 140 information technology, and central planning 215 input‒output tables, in value theory 18 International Working Group in Value Theory 37 invariance condition 51; inherent, for value determination 28; in “new view” 28; for value‒price transformation 15, 16‒17 invisible hand 140 IS‒LM 159 “Iteration Facilitation Board” 214 iteration, horizontal 213; reproduction of market equilibrium in 214 iterative planning: and local knowledge 193; micro rationality and macro stability 193; in socialism 175; in Soviet Union 193; and tacit knowledge 193 Jablonowski, Mark 215 Kahn, R.F 116 Kaldor, Nicholas 79 Keynes, John Maynard 154 Keynesian model 156 Khudokormov, G.N 193 Kliman, Andrew 86, 88, 89, 91‒3, 97, 99, 100, 102, 104; and Ted McGlone 20, 40, 45‒52, 54, 87 Knight, Frank 38 Kornai, Janos 38 Krause, Ulrich 19, 20 Kurz, Heinz, and Neri Salvadori 24, 117, 144 labor: ethnic differentiation 14; modern, and importance of morale 203; skill differentiation 14; and value 35 labor (power) market: and accumulation 63‒8, 75; equilibrium, two views of 162; in macroeconomics 161‒3; and rate of profit 57‒72; and technical change 57‒72; and wage share determination 69 labor time: dimension of value 13 labor value pricing: resulting from net income ratio maximization 145‒7 Laibman, David 3, 6, 13, 15, 17, 22, 30, 33‒5, 40, 61, 54, 60, 68, 71‒2, 77‒9, 82, 88, 90, 97, 107, 109, 111, 175, 177, 188, 195, 215; as “dualist equilibrium theorist” 111; and Edward J Nell 54, 59, 116 learning theory 155 legitimation crisis 33 Lenin, V.I 4, 213 Leninist problematic 179 Lipietz, Alain 20, 28, 42, 51 Lovejoy, Derek 186 low-level equilibrium trap macroeconomic policy macroeconomics: logic versus empiricism 8; mainstream, opposite poles in 155; New Classical 8; New Critical macroeconomic policy 154; and balance of class forces 156; expansionary, and rate of exploitation 156 Mage, Shane 27, 44, 58, 60, 62, 87 Mankiw, N Gregory, and David Romer 202 Mannheim, Karl 176 marginal productivity theory 114 marginal rate of substitution (MRS) 151 marginal rate of transformation 144; macro (MRT) 148; micro (mrt) 148‒9 marginal utility of income 162 market: and instability 213; versus intentionality 213; as invisible fist 216; and polarization 213 Downloaded by [University of Ottawa] at 21:17 16 September 2016 230   Index market price 119‒20 market socialism 175, 188, 213 “market socialism with Chinese characteristics” 193 Marshall, Alfred 115, 116, 127, 128 Marx, Karl 4, 6, 7, 10, 16, 17, 19, 21, 22, 26, 29, 32, 40, 42, 44, 45, 52, 55, 58, 62, 66, 82, 84‒5, 89, 98, 121‒2, 175, 195, 210; charge of internal inconsistency 54; deification of 112; 1862‒63 Manuscript 21; errors I and II 54; and Friedrich Engels 182; as holy prophet 53; “logical error” in value theory 41; and mathematics 115; rising composition of capital, inadequacy of argument 64; textualist search for the one “true” interpretation 111‒12; writings, summary 21 Marxism 141; and bible study 21; concepts ‒ comprehensiveness and complementarity 52; crisis theory tradition 71; as normal science 142; three sources and component parts Marxists: “twentieth century” 40 material, in philosophy, versus “physical” or “real” 10 material balances, system-wide 215 material incentives 195; and reward function 200‒3 mathematical models: description versus explanation 25 mathematicism, in Soviet economics 19; in value theory 19 mathematics: delights of matrix, definition 11 mechanization function 77 Meek, Ronald 42 MEGA 21 Mencken, H.L 177 microeconomic theory: neutrality with respect to social policy 131 “minimal assumption”: real wage rate variant 76; wage share variant 76 monetarism, in value theory 19‒20 monetary expression of labor time (MELT) 13, 20, 23, 27 monetary policy 8, 154 money income, cutoff: algebraic subcases 136‒7; between beneficiaries of and sufferers from rationing 135‒8 money prices, in abstract capitalist economy 25 Morishima, Michio 44, 52; and George Catephores 23 Moseley, Fred 19, 40, 42, 43, 51, 54, 58 MRT and mrt compared, at different output compositions 149‒50 MRT, mrt and MRS compared 151 Mukherji, Anjan 143 National Bureau of Economic Research 79 natural price 119‒20 negotiated coordination 214 Nell, Edward J 4, 115, 116 neo-anarchism 175 neoclassical economics, defined neoclassical price theory: Marshallian 42; Walrasian 42 “neo-Ricardian” theory 19 net income ratio 143; maximization yields labor value prices 145‒7; maximized, in producer‒trader variant of classical model 145; in simple commodity production 22 net transformation surface 144; aggregate 148; constant returns variant 144; hypothetical extrapolation variant 144 New Classical macroeconomics 157; adjustment mechanism 160; aggregate supply curve 158‒9; canonical model 158‒61; dynamics of price and quantity 160; logic 159‒60; long-run policy ineffectiveness in 160‒1 New Classical/New Critical synthesis 167‒70; alternating version 167‒70; convergence to positive multiplier 169; dire implications for rational expectations 170; multiplier derived 168‒70 New Critical macroeconomics 154‒71; adjustment mechanism 165; aggregate supply curve 157, 164‒5; Dobb Effect in 164; effectiveness of fiscal policy 166; expansion, sophisticated case 167; full model 163‒167; and hydraulic Keynesianism 171; long-run horizontal aggregate supply curve 165; “naive” Keynesian multiplier vindicated 165; neither policy ineffectiveness nor finetuning triumphalism 171; and pure Keynesian goods market 165; and stylized facts 171 New Economic Policy 213 New Keynesian macroeconomics 157 New Orthodox Marxists (NOMists) 38‒9, 40; methodological argument 43; retroactive argument 43‒4; sequential argument 44‒5; transformation tableau, Index   231 Downloaded by [University of Ottawa] at 21:17 16 September 2016 analysis of 45‒52; and twentieth century 54 non-accelerating inflation rate of unemployment (NAIRU) 159 nonequilibrium, as institutionalism 45 “normal profit” 119 Nove, Alec 192, 193, 194 Ochoa, Eduardo 18 Okishio, Nobuo 40, 60, 84‒112, 87, 98, 100, 102 Okishio Theorem 40, 60, 61, 63, 71, 87, 88, 96‒102, 110‒11; and continuous time 96‒7; not a refutation of Marx 112; and temporary monopoly of innovator 97; truth of 96‒7 Ollman, Bertell 175 ontology: and time 84 organic composition of capital, defined 60 Pareto optimality 1, 140, 142, 194; in classical model 143; of competitive equilibrium 140‒53; ideological uses of 143, 153; obstacles to 140; and social optimum 142 Pareto, Vilfredo 140 Pasinetti, Luigi 24 Peano, Giuseppe 113 perestroika 215 “perfect competition” 117 performance measure, in socialism: economic and social indicators 197; locally known best value 203‒4; multiple dimensions 197; planned versus actual variants 197; reduction to scalar 197 Perlo, Victor 79 Perron‒Frobenius theorems 16‒17, 96 phenomenon, and essence 11 Phillips Curve 158 Pickersgill, Gary M and Pickersgill, Joyce E 198 planning: ambitious and realistic 193; decentralized, and Impossibility Theorem 194; democratic, in socialism 175; iterative 190; participatory 214; “taut” 208 policy ineffectiveness proposition 155, 156 political economy: of capitalism, and value 30; and economic realm 1, 3; literary tradition in 2; “meta” nature 10; and “persuasive semantics” 23; training ground for revolutionary transformation possibility theorem, for efficient and democratic socialist coordination 216 post-Keynesians 52 postmodernism 39 post-Sraffians 52 price: adjustment, anomalous, in supply‒demand curves 118; classical model 121; and competition 120; market adjustment 124; market prices versus market-values 121; and money wage 118; natural and market 119 price control, and rationing 129‒39 price level, pivotal, in New Critical macromodel 164 price of production 16, 41; determinacy of 16; “pooling and redistribution” 49; simultaneous determination 41; simultaneous equations 50; and supply and demand 115; and transformation of inputs 42; see also value price theory: classical, role of supply in 124; formal classical model 123‒6 price vector: money 25; real 25 primitive communism 174 Principles of Political Economy and Taxation 120 prisoners’ dilemmas 75‒9; and accumulation 73, 75‒7; and biased technical change 77; defined 73 producer‒trader model see simple commodity production production possibility curve 172 productive and unproductive labor profit rate see rate of profit profit, and exploitation of labor 41 profit share, rising, critical implications of 79 Putnam, Hilary 141 qualitative and quantitative: drive to separate 4; simultaneity of quality of work-life circles (QWLs) 178 quality of work‒life: as precondition for productivity advance 184 quantitative dimension: denial of 2; and expertise 4; and new avenues of research 8; and precise thinking 7‒8; and social reality 1; and social theory i; techniques for study ii quantitative and qualitative: drive to separate 4; simultaneity of quantity equation 26, 159 rate of exploitation 29; in value transformation 46 Downloaded by [University of Ottawa] at 21:17 16 September 2016 232   Index rate of profit: in Adam Smith 120; conjunctural 68; conjunctural, maximization of 69; in David Ricardo 120; drag of historical cost, with periodic replacement 107‒8; dynamics, centrality of replacement cost valuation in 104; falling 1, 55, 87; falling, counteracting causes 55‒6; dynamics, successful and lagging capitals 103; falling: and dynamics of wage share 82‒3; falling, and labor market dynamics 78; falling, and optimal technical change choice 78; falling, and other critical tendencies 71; falling, with positive accumulation 67; falling, and rate of exploitation 83; falling, and simple reproduction 66; falling: ultimate TSSI argument 100‒3; illogic of historical cost argument 104; illusory distinction between “value” and “material” rate 104, 110; and labor market 57‒72; “material” 85, 92, 93; “material,” equal to “value” rate 93; “material,” unaccountable derogatory interpretation of 111; in one-good model 90, 91; and technical change 57‒72; and time lags 85, 92; “value” 85; “value,” conditions for fall in 95; “value,” falling, illusory nature of 106;“value,” “tracks” the “material” rate 106 rational choice: and equivalent exchange 31; as one aspect of capitalist production relations 34; one dimension of value determination 36 rational choice theory: obliteration of social conflict in 113 rational expectations 155, 171; and empirical data 157; logical superiority of 157 rational understanding, in labor process 203 rationing: effects on rich and poor individuals 131; and inefficiencies 130; and participatory mechanisms 131; popular support for 130; and price control 129‒39; and price control, counterintuitive result 139; and price control: counterintuitive result 139; and price control, criteria beyond hedonistic calculation 139; and price control, effects, numerical estimates 136, 138‒9; and price control, welfare effects, modeled 133‒9; stochastic analysis of 131 rationing and price control: indifference curve analysis 131‒3 real abstraction 34 reality: deep versus surface 10 Reed, John ii “red versus expert” dichotomy 5, replacement cost valuation 88; and creative refinancing 103 reserve army of unemployed: and rising composition of capital 64; and wage share dynamics 69 Resultate 21 returns to scale, non-constant 140; and competitive equilibrium 140‒53 revolution: bourgeois, and role of lower classes 7; and class structure 7; qualities now required for reward function 198‒200; and basic social support 196; for central planning 198; forcing achievement level 209‒10; forcing locally known best performance 208‒9; for iterative comprehensive planning 198; managerial 198; and material incentives 200‒3; maximization, geometry of 207; maximization, and material incentives 202, 210‒12; maximization, subject to Collective Morale Function 205‒8; policy implications 207‒210; properties 199; in socialist planning 194, 195‒8 Ricardian equivalence 155 Ricardo, David 18, 120, 121 Ricardo Effect 114‒15 “road to serfdom” 192 Roberts, K 194 Robinson, Joan 4, 8, 116, 117, 127 Roemer, John 58, 71, 213, 175, 176 Romer, C.D., and D.H Romer 157 Roosevelt, Frank, and David Belkin 175 Rosdolsky, Roman 58, 87 ruling class: contradictory definition of 10 Ruskin College, Oxford 115 Russia xviii Samuelson, Paul 15, 18, 38, 41, 44, 52, 58, 87, 88 Schumpeter, Joseph 18, 38, 41, 66 Schwartzman, David 186 Schweickart, David 175, 213 science: beyond the observable 12; and ideology sealed-bid auction 194 Seton, Sir Francis 51, 115 Downloaded by [University of Ottawa] at 21:17 16 September 2016 Index   233 Shaikh, Anwar 14, 18, 42, 44, 80; and E Ahmet Tonak 80; as “neo-Ricardian” 45 sidenotes xviii Silberberg, Eugene, and Wing Suen 132, 133 simple commodity production 21; and fixed inputs 145; and value 21; subcase of classical model 143 simple reproduction: inadequacy of, in Marx 66; and Thompson’s core argument 66 “simultaneism” 85 simultaneous equations: classical versus Walrasian 53; and value system 16; in value transformation 50 Skillman, Gil 87 Smith, Adam 38, 119, 120, 140 social reality: more than rational individuals 11; and quantitative abstraction social reproduction prices socialism 1; autonomous but principled activity 188; bipolar thinking concerning 193; broad productivity measure 178; Collective Morale Function 191; and collectivity 174; complex concept of cost and profit in 196; and complexities of modern life 189; comprehensive planning 175; consensualization 175; and cybernetic macrocoordination 188; demise of authoritarian regimes 1989‒81 174; desirability 176; distinguished from communism 178; distinguished from transition period 178; early stage equilibrium 181; and ecological constraints 186; effective and experiential dimensions 176; evaluation, possibility of political distortion 197; feasibility 176; five great fears 213‒15; four stages of development 184; gradual transcendence of labor‒income connection 216; hard choices facing 173; incentives, individual and collective 180; incentives, material and moral 180; incentives as necessary for rising consciousness 195; initial tradeoff between work‒life quality and productivity 179; and human nature 191; income differentiation in 195; instrumental view of 176; iterative coordination 175, 190, 193; and libertarian values 174; link from productivity to quality of work‒life 180; material incentives 195; mature, and new forms of private life 187; mature, transcendence of both market and plan 188; maturing 210; maturing, convergence to efficient and dynamic plans 216; maximization of reward, with constant achievement level 200; and meritocracy 187; “millions of equations” critique 190; and modern IT 193; multi-level iterative democratic coordination 216; and neoliberal thinking 187; operationalization of 175; and parametric forms 214; and participatory democracy 214; performance measure, economic and social indicators 197; performance measure, multiple dimensions of 196, 197; planning, and local knowledge 193; planning, and tacit knowledge 193; “plan versus market” 176; planning system 7; and political self-rectification 177; “politics in command” an earlystage characteristic 187; possibility theorem 216; as public provisioning 173; quality of work‒life experience 178; realistic and inspirational 189; reenvisioning of 172‒89; renaissance, denial of Soviet experience 175; reward function 194, 198‒200; reward function, and material incentives 200‒3; scalar performance measure 197; spontaneous progress in stage 4, 185; stable highlevel equilibrium with continued qualitative development 186; and takeoff into spontaneous development 174; and theoretical stages 187; and “voice” relations 214 “Socialism for the Twenty-first Century,” misleading slogan 216 solar communism 186 Soviet Union: authoritarian legacy 188; collapse 213, 215; economic reforms 188; economic reform literature 194; experience, importance of 215; as model 215; and multilevel iterative coordination 193 Spulber, Nicholas 193 Sraffa, Piero 3, 24, 42, 51, 116, 117, 118, 128, 144; integration of early and later work 128 stability: Marshallian versus Walrasian 185, 186 Stalin, cult of 215 Star Trek 45, 48‒9 Downloaded by [University of Ottawa] at 21:17 16 September 2016 234   Index state, the: evil or ineffective 154 Steedman, Ian 3, 42, 44, 58, 72, 119, 123 Stigler, George 18 supply and demand: asymmetrical interpretation, need for 117; beyond contentless abstractions 128; classical equation, inadequacy of 122‒3; classical equation, problem of dimensionality 123; as classical “forces” 121‒2; as classical “forces,” measurement of 126; classical supply dynamics 125; classical model 121; classical and neoclassical conceptions, possible inconsistency of 119; classical theory of 119‒128; classical theory, demystification of “normal profit” 127; classical theory, and micro/macro dichotomy 127; classical theory, and rise in wages 127; classical theory, role of supply in 124; classical view, importance of 126; counterfactual curves approach 116; formal classical model of 123‒6; historically and institutionally specific realities 127; ideology, ubiquity of 116; Marshallian equilibrium 117; neoclassical curves, inconsistent with classical price theory 117‒19; neoclassical view, absolute hegemony of 126; and “normal profit” 115; no role in explaining natural price 121; partial equilibrium method 123; and rational choice 113; symmetry of 115 supply: classical theory, historical, institutional and cultural factors 125; classical theory, and reaction coefficient 126; two meanings 127 supply curve: and cost curve 114; nonexistence, in classical theory 125; of labor 161; vertical in pure working-class case 161 sweated trades 162 Sweezy, Paul 2, 15, 40, 42, 58 TARP 141 technical change: autonomous component 68; biased, as prisoners’ dilemma 73; biased, and profit-rate trend 77‒9; and capital stock vintages 90; composition increasing, likelihood of 71; composition increasing, significance of 70‒1; and conjunctural profit rate maximization 77; diminishing returns to mechanization 68; and disequilibrium dynamics 97; endogenous 97; endogenous, and biased accumulation 68‒72; and falling rate of profit 1, 60, 74; historical cost versus replacement cost 88; labor market 57‒72; and macro trends 59‒63; one-good model, and Marxist categories 89; one-good model, properties 88‒9; optimal 77; optimal, and falling rate of profit 78; optimal, and wage share 68; with positive accumulation 67; pure fixed capital stock model 59, 60; and rate of profit 57‒72; rich determination of 68; and short time horizons 57; and simple reproduction 66; and structural trends 87; viability condition 60 technology: and socialist possibility 191 temporal single system interpretation (TSSI) 20, 37‒8, 40, 85‒6; arbitrary assumptions 105; collapse of falling-r argument 101‒2; constant output argument for falling rate of profit 101; critique of Okishio, and value 98‒9; critique of “simultaneism” 20; critique of “twentieth century Marxists” 42‒5; denial of theory 39; dualist separation of dynamic and static analysis 111‒12; “expulsion of living labor” 99‒100; on falling rate of profit 56; falling-r model, analysis of 105‒9; falling-r theory, double standards in 104‒5, 110; inconsistencies in 51; and institutionalism 20; loss of rich capitalist determinations in 111; and Okishio Theorem 97‒8; polemical excesses 109‒12; and “really existing” socialism 86; value theory 20‒1 Temporal-Value Profit-Rate Tracking Theorem 109 tertium comparationis 31 textualism, in value theory 21 Thatcher, Maggie theoretical time/consistent structure (TT/ CS) 39, 49 “There Is a Revolutionary Alternative” (TIARA) 6, 172, 174 “There Is No Alternative” (TINA) 6, 141, 143, 172 Thompson, Frank 56, 57, 58, 63, 67, 71, 72, 73, 74, 78, 82; core argument 64; “minimal assumption” 63, 69, 75; “minimal assumption,” and simple reproduction 66 time, historical versus theoretical 37; methodological conception of 49, 51; and theory 38 Index   235 Tracking Theorem 109 transformation problem 2, 12, 29, 116; historical 23; solutions of 13 Tugan-Baranowski, Mikhail 40 twin equalities 51 Downloaded by [University of Ottawa] at 21:17 16 September 2016 unit values, in one-good fixed-capital model 91 utility: maximization, constrained 123; maximized, in controlled and uncontrolled regimes 133‒4 valorization 176; of labor, dialectical nature of 31; and sense of fairness or equivalence 35 value 1; and capitalism 14‒24; and class balance of forces 31; and class struggle 32; complete determination in abstract capitalist economy 24‒30, 29; composition of output 30; conceptual taxonomy 21‒4; and convergence 16; and current world economic crisis 12; debate, interminable quality of 12; and deep structure 11, 39; determination, and aggregate equalities 23; determination, and false trails 18‒21; determination, and intuition 17; determination, and invariance postulates 35; determination versus transformation 23; dialectical understanding of 98; false trails 13; false trails, empiricism 18; false trails, formalism 19; false trails, mathematicism 19; false trails, monetarism 19‒20; false trails, temporalism 20‒1; false trails, textualism 21; and full political‒economic vision 30; insight versus proof 36; invariance condition, inherent 28; irrelevant to TSSI critique of Okishio 98; linear models, political‒economic interpretation of 24; and methodological individualism 36; and money form 20, 26, 30; mystifies and enables exploitation 33; “neoRicardian” theory 44; and nonconscious convergence 33; quantitative determination in capitalism 13; quantitative dimension as key to qualitative dimension 11; and rational choice 36; real role of money form 35; and reification of capitalist social relations 33; sequential transformation, iterative process 48; sequential transformation, renewed production variant 47‒9; sequential transformation, surplus value redistribution variant 47, 49‒52; and specific characteristics of accumulation 96; scale versus proportions 17; and TINA 12; transformation, “brother enemy” metaphor 47; transformation, convergence 44; transformation, “erase and replace” 44; transformation, inputs isolated from outputs 44; transformation of inputs, sequential 46; transformation, iterative method 44; transformation, and mystification of capitalist relations 41; transformation, and passage of time 44; transformation problem 40; transformation, simultaneous equations 50; transformation, and theory of exploitation 43; transformation, threesector model 46‒52; transformation, twin equalities 41; ultimate purpose of 12, 30‒4; unit, defined 15; and wage determination 32; and wage share 27, 33 Value, Price and Profit 32 value theory: culs de sac 37; ethical versus economic dimension 10; and linear models 24; and mathematical methods 7; rhetoric versus precision in 53 van der Linden, Marcel 86 van Parijs, Phillippe 58, 72 Varian, Hal 132, 133 Varoufakis, Yanis 124 vector, definition 11 Vickrey, William S 194 von Clausewicz, Carl 19 von Mises, Ludwig 38 wage rate: elasticity with respect to labor demand 63; real versus monetary 118; versus wage share in crisis theory 71 wage share 27; and balance of class forces 28; falling, and optimal rate of capital intensification 70; and labor market 69; and perceived reality in capitalism 28; and Okishio-viable technical change 79; and technical and structural transformation 34; versus wage rate in crisis theory 71 wage‒profit frontier 26 wages, advanced versus ex post 80 “Walrasian psychopathology” 45 Walrasian tâtonnement 214 Wealth of Nations 119 Weisskopf, Tom 213 Weitzman, Martin 131 236   Index Downloaded by [University of Ottawa] at 21:17 16 September 2016 welfare loss, in competitive equilibrium 151 Winternitz, J 42 Wolff, Rick, et al 40 working class: capacities required to assume power 7; household sector 30 Wright, Erik Olin 175, 176 Yang, Jinhai 193, 213 Young, Allyn A 148 ... Ege and Herrade Igersheim 148 Political Economy After Economics Scientific method and radical imagination David Laibman www.ebook3000.com Political Economy After Economics Downloaded by [University... Publication Data Laibman, David Political economy after economics : scientific method and radical imagination / David Laibman p cm Economics Political aspects Economics Marxism I Title HB74.P65.L35... critique of political economy 150 years later Edited by Marcello Musto 110 Economics and the Price Index S.N Afriat and Carlo Milana 111 Sublime Economy On the intersection of art and economics