Search Results (69)

The effects of initial institutions and change in institutions on the growth of ex-socialist countries is unsettled in the literature. This is due to difficulties in modeling the effects of institutions and their change. The objective of this paper is to contribute to this area. Ex-socialist countries faced heterogenous initial conditions at transition. Those that joined the EU experienced institutional integration as well as institutional improvement. Using publicly available data from about ten years before and after EU accession and two-way fixed effects differences-in-differences estimation, this paper finds that these countries experienced growth boosts post-EU accession. Achieving institutional integration cum improvement by accepting and implementing EU’s regulations and norms in all details permitted this boost. The initial conditions mattered—the effect was greater in “new” ex-socialist countries (which had the additional burden of creating new administrative structures and economic relationships) than in the “old.” Using the neo-classical growth model, the paper then examines whether this boost in growth was due to a higher contribution of inputs or due to an increase in the efficiency with which inputs were used. It indicates that it was due to increased contribution of human capital rather than an increase in the amount of human capital or other economic or political confounders. These countries’ skilled labor, already high in skills at transition by OECD standards, needed the right institutions to unlock its potential. Full article

Progress toward achieving the Sustainable Development Goals (SDGs) has been disappointingly slow, raising fundamental questions about whether our dominant economic framework can deliver sustainable development outcomes. This research systematically evaluates six economic paradigms—Neoclassical Welfare Economics, Green Growth, Degrowth, Agrowth, Steady State Economics, and Doughnut Economics—against all 17 SDGs to determine which might better support sustainability transformations. Using a rigorous mixed-methods approach, we first characterize each paradigm according to key attributes, then assess their alignment with SDG objectives using a four-point scoring system. Our analysis reveals that the dominant Neoclassical Welfare Economics paradigm shows the weakest alignment with the SDGs, while alternative frameworks demonstrate significantly stronger alignment: Degrowth, Steady State Economics, Doughnut Economics, Green Growth, and Agrowth. No single paradigm fully addresses all dimensions of sustainable development, with most showing notable weaknesses in people-centered SDGs. Each paradigm demonstrates distinct complementary strengths: Green Growth in technological innovation, Degrowth in redistribution mechanisms, Steady State Economics in resource boundaries, Agrowth in redefining welfare, and Doughnut Economics in balancing social foundations with ecological ceilings. We conclude that selective integration of complementary elements from multiple paradigms offers the most promising pathway forward and propose four specific recommendations: (1) developing integrated assessment frameworks, (2) establishing experimental policy zones, (3) reforming economics education, and (4) creating context-specific transition pathways. This research provides the first comprehensive evaluation of how alternative economic paradigms align with the full spectrum of SDGs, offering crucial guidance for policymakers seeking more effective approaches to sustainable development. Full article

As an early vehicle for the spread of Western architectural culture in China, Catholic churches from the late 19th to the early 20th century exhibited unique Sino-Western fusion characteristics, serving as tangible witnesses to modern cultural encounters. This study focuses on the Anqing Catholic Church as a typical example and systematically analyzes its architectural translation strategies and the generation logic of fusion mechanisms through literature analysis, field research, typological analysis, and comparative research. This study shows that the church, based on the archetypes of Neoclassical and single-tower Gothic churches, constructs a localized translation system through five paths: site selection strategy, form adjustments, element replacement, technical integration, and spatial secularization. Our research further points out that churches with dual archetypes are mainly located in economically prosperous urban centers, with their spatial forms reflecting a fusion mechanism of “sacredness–regionalism–humanism”. While following religious space requirements, these churches adapt to the local environment and foster cultural identification through localized translation, reflecting the diverse perspectives of the architects. Full article

The axiomatic framework of quantum game theory gives us a new platform for exploring economics by resolving the foundational problems that have long plagued the expected utility hypothesis. This platform gives us a previously unrecognized tool in economics, the statistical ensemble, which we apply across three distinct economic spheres. We examine choice under uncertainty and find that the Allais paradox disappears. For over seventy years, this paradox has acted as a barrier to investigating human choice by masking actual choice heuristics. We discover a powerful connection between the canonical ensemble and neoclassical economics and demonstrate this connection’s predictive capability by examining income distributions in the United States over 24 years. This model is an astonishingly accurate predictor of economic behavior, using just the income distribution and the total exergy input into the economy. Finally, we examine the ideas of equality of outcome versus equality of opportunity. We show how to formally consider equality of outcome as a Bose–Einstein condensate and how its achievement leads to a corresponding collapse in economic activity. We call this new platform ‘statistical economics’ due to its reliance on statistical ensembles. Full article

Focusing on a specific interaction between physics and economics, this study delves into the realm of econophysics and investigates the birth, evolution, and practical applications of this interdisciplinary field. This study explores the influence of Newton’s laws, the concept of gravity, and, more generally, mechanical physics on the development of economic thought. It examines the application of Newtonian principles in interpreting economic dynamics, with a particular focus on the contributions of neoclassical economists and Isard’s gravitational model, offering insights into the intricate dynamics of economic equilibrium in complex systems. Finally, these concepts are situated within the broader debate between determinism and indeterminism in the social sciences. Full article

How to incentivize green innovation is an important issue of great concern to scholars. Drawing on the theories of evolutionary analysis and neoclassical economic analysis, this study incorporates environmental policies and market participants into a unified analytical framework to explore the synergistic impacts of carbon emissions trading (CET) and market participants on green innovation. Using a sample of Chinese listed companies from 2006 to 2018, the empirical results based on the difference in difference (DID) model show the following: first, the CET pilot policy significantly promotes pilot firms’ green innovation; second, economic and environmental legitimacy are the mechanisms through which CET promotes corporate green innovation; and third, further analysis shows that CET and market participants have a synergistic effect on firms’ green innovation. This study provides new evidence as to how market-oriented CET affects green innovation through market participants, which provides a theoretical reference for policymakers to use market-based environmental regulation to promote green transformation. Full article

The literature on growth in economics encompasses two main facets of thinking: the applicability of diminishing productivity of capital, as has been in the neoclassical growth model with exogenous technological progress, and the applicability of non-diminishing productivity of capital, as has been in the endogenous growth models. The main conclusion of the former is the cross-country convergence to a common steady state while that of the latter is non-convergence. The tremendous history of the growth of the world’s so-called developed economies in the 1980s, diverging with the so-called backward economies, has nullified the applicability of the neoclassical growth model and justified non-steady state positive per capita growth of income and consumption through endogenous technological progress in terms of knowledge capital, human capital, good public institutions, etc. The present study aims to examine whether per capita income growth is explained by the size of government intervention coupled with the working population size in the world’s top twenty countries in terms of aggregate income. With the theoretical setup of the model and using empirical tools, such as cointegration, error correction and causality in a vector autoregression structure, this study reveals that eighteen countries maintain long-run relationships among per capita income growth, government participation, population and the interaction factors between government intervention and population, excepting Germany and Canada. Further, in the short run, for eleven countries on the list, there are instances in which public institutions associated with the population and the interaction term have a causal influence on the growth of per capita income. The empirical results relating to income growth, thus, have sustainability implications. Full article

Economic science is built on the basis of the concept of competition. Classical School economists have not defined this concept with precision. The “Neoclassic Revolution” defined the concept of perfect competition as an ideal combination of productive resources accessible to all permanently (optimal size). Within this framework, competition ensures that suppliers will cover demand by matching market prices to both average and marginal costs corresponding to the optimal size. Large and persistent differences in profit and wage rates, when interpreted from a perfect competition perspective, will always be considered a sign of the absence of competition. Only an alternative concept of competition can modify such an interpretation. In this context, the objective of this work was to develop an alternative concept of full competition, which is formally formulated, to foster a more sustainable environment for the coexistence of enterprises of different sizes. The full competition definition assumes that firms maximize long-term benefits (fixed-capital amortization period) by trying to ensure full use of productive capacity and achieving relative advantages through innovation instead of merely adjusting prices to maximize short-term benefits. This approach provides a different explanation for inequalities in profit and wage rates, from simple adjustment in prices (perfect competition) to the search for new and better opportunities through innovation (full competition). This could change the meaning and scope of economic policies, which are influenced by both Neoclassical and Keynesian approaches, when addressing the entrepreneurial challenges of sustainable development. Full article

This article emphasises the critical role higher education institutions (HEIs) play in fostering critical knowledge and social cohesion by exploring students’ perceptions of the social and solidarity economy (SSE). It addresses the need for a more diverse curricular approach within HEIs, particularly in economics and business education, to challenge the dominance of the neoclassical model. This study, conducted at the Faculty of Economics and Business (FEB) of the University of the Basque Country, investigates whether students perceive the SSE as a viable alternative to the current economic paradigm and its necessity and innovation in higher education. Utilizing a free-association questionnaire and Iramuteq software analysis, the findings reveal a strong demand for a more inclusive educational framework that incorporates heterodox economic theories, especially the SSE. This research contributes to the discourse on integrating SSE into economics and business courses as part of university social responsibility (USR), highlighting its unique social values. Full article

This study explores the pivotal role of theories of economics in shaping the multifaceted concept of sustainable development and integrates economic, social, and environmental dimensions. It traces the intellectual trajectory of classical, neoclassical, and contemporary economic paradigms, analysing their contributions to sustainability-oriented policies and practices. The study critically analyses key concepts, including equitable income redistribution, resource stewardship, and ecological preservation. It contrasts liberal and dependency theories while also comparing insights from environmental and ecological economics. Employing a rigorous literature review and comparative analytical methodology, the study bridges the theoretical foundations with real-world applications, illustrating the dynamic interplay between theories of economics and sustainability imperatives. The findings elucidate the dichotomy between weak and strong sustainability frameworks, advocating for ethical and interdisciplinary approaches to policymaking. By offering a comprehensive synthesis of the most influential theories of economics and sustainable development practices, this study provides profound insights for policymakers, academics, and practitioners seeking to address pressing global challenges through informed and integrative strategies. Full article

This paper reviews natural capital (NC) valuation approaches in the context of woodland, forest, and riparian ecosystems, emphasising the need for participatory methods to take priority over neoclassical economics approaches. Focusing on research carried out in Scotland, the study analyses findings according to a classification of natural capital initiatives that we have developed, building on ideas proposed by the UK ENCA initiative, a guideline proposed to help researchers and practitioners understand NC and take it into account in valuation, decision-making and policy. We have found that landscape-scale initiatives that address the relationships between people and place to inform value and decision-making beyond the economic (monetary) benefits generated by ecosystem services (ES) are becoming popular. For instance, recent methods employed to capture stakeholders’ non-utilitarian preferences include the use of participatory GIS mapping, scenario planning, and other participatory methods to identify, explore and quantify less tangible cultural ecosystem services (CES). The review shows that many studies provide information relevant to the formulation of a place-based NC approach, working towards the integration of contextual and relational values into land management decisions to help formulate management strategies that maximise ES delivery. Conversely, we have not found evidence of the integration of shared values arising from an eco-centric perspective of nature valuation into the more classical, instrumental value lens. Such an approach would help inform broader, overarching aspects of woodland and forest management that may foster more effective conservation and help to manage conflicts. Full article

This study investigated whether economic motivations are a key factor in international migration decisions. Applying the selectivity-corrected expected income for migrants and stayers, the difference in expected income for an individual in origin and destination countries was analyzed. This study used data from the U.S. and Canada to empirically test the role of income gaps in migration decisions. The main difficulty in analyzing the role of the gaps lies in collecting both income streams for the same individual, since once an individual migrates to a different country, their potential income in the origin country cannot be observed; and vice versa for stayers. Therefore, directly applying the average income of migrants (conditionally relying on their observed characteristics) to estimate the income of stayers if they had migrated results in a biased estimate of stayers’ income. Hence, there is a need to account for selectivity in the migration decision and calculate selectivity-corrected income. The key finding in this study is that the expected income gap is positively associated with, and statistically significant for, international migration decisions for the U.S. and Canada. One of the main reasons may be the easy transfer of labor skills between countries that have similar labor environments and cultural backgrounds. Full article

This study formulates a mathematical dynamic Computable General Equilibrium (CGE) model within a rational expectations framework, adhering to neo-classical principles. It emphasizes the significant role of agents’ expectations in determining the broader economic trajectory over time. The model combines microeconomic and macroeconomic perspectives by merging the concept of intertemporal choice with savings behavior. Its mathematical foundations are derived and calibrated using data from a social accounting matrix to enhance its simulation capabilities. The paper presents a practical simulation investigating the economic implications of a strategic investment impact within an specific European region, Madrid as the case of study. Such demand shock affects sectors such as electronics, food, pharmaceuticals, and education. The study models the long-term effects of heightened investment and persistent demand-side shocks. The research demonstrates the CGE model’s ability to forecast economic shifts toward a new equilibrium after an investment shock, proving its utility for assessing the impacts of extensive environmental policies within a European context. The work’s originality lies in its detailed mathematical formulation, contributing to theoretical discourse and practical application in business analytics. Full article

The global macroeconomic shocks of the last decade entail the restructuring of national production networks and induce processes of input substitution. We suggest mathematical tools of Young duality for variational inequalities for studying these processes. Based on the tools we provide, a new mathematical model of a production network with several final consumers is created. The model is formulated as a pair of conjugated problems: a complementarity problem for optimal resource allocation with neoclassical production functions and the Young dual problem for equilibrium price indices on network products. The solution of these problems gives an equilibrium point in the space of network inter-industry flows and price indices on goods. Based on our previous results, we suggest an algorithm for model identification with an official economic statistic in the case of constant elasticity of substitution production functions. We give an explicit solution to the complementarity problems in this case and develop the algorithm of the inter-industry flows scenario projection. Since the algorithm needs the scenario projection of final sales structure as its input, we suggest a modified methodology that allows the calculation of scenario shifts in final consumer spending. To do this, we employ the generalized nonparametric method of demand analysis. As a result, we develop new technology for scenario calculation of a national input–output table, including shifts in final consumer spending. The technology takes into account a substitution of inputs in the network and is based on officially published national statistics data. The application of the methodology to study tax collection scenarios for Kazakhstan’s production network is demonstrated. Full article

By analysing the childcaring experiences of female skilled workers from South Korea (hereafter, Korea) in Germany, this paper maintains that the challenges in labour market participation for highly skilled women, and especially those with children, should be understood in the context of their encounters with similar and different care and employment regimes between their home and host countries. On the theoretical level, this research confirms the argument that the migration of highly skilled workers should be contextualized not from a neoclassical perspective in which the maximization of economic profits takes priority, but from an institutional point of view in which social and cultural norms, practices, and policies in both the home and host societies are taken into consideration. Specifically, through a series of in-depth interviews conducted with skilled female migrants from Korea, this paper highlights the significance of taking the function of similar and different caring and employment regimes into account in explaining the challenges faced by highly skilled migrant women in labour market participation. On the empirical level, this paper sheds light on the migration experiences of skilled women from Asia as well as the (dis)integration processes of newcomers from third-national countries in Germany, with a focus on female migrants from Korea. Full article