Issue 37: January 12, 2007

From the Editor

In December 2006 at the annual conference of the Society for Heterodox Economists, it was decided to establish a formal association with John King as president and Peter Kriesler as Secretary:

The threat imposed on heterodox economics by the Research Quality Framework (details of which are available on the SHE website) was discussed at great length. In order to actively engage in the debate, it was felt necessary to establish a structure around the Society of Heterodox Economists which would provide a formal body to lobby on behalf of heterodox economists. A motion was put to the meeting and unanimously passed establishing a committee for SHE with a President, secretary and general committee. John King was elected President, Peter Kriesler secretary, and the committee will consist of a representative from each Australian university which has a heterodox presence.

It was agreed that annual prizes be awarded to the best honours and PhD thesis submitted in heterodox economics each year. Prizes were also to be considered for the best paper at the annual SHE Conference, and for the best paper by a graduate student. Details of these prizes will be circulated during 2007.

The future activities of SHE include the following:

Working Paper Series
As of the beginning of 2007, SHE will launch an online Working Paper series. The intention is to tie the papers into the SHE Forum, which has fallen into disuse, with papers forming the basis of forum discussions. All papers in heterodox economics, broadly defined, will be considered. Please send papers for consideration to: 

Winter School
In conjunction with CofFEE, SHE will inaugurate a Winter School commencing July 2007 for research students. Currently, we plan to run the school for a couple of days, and follow it with a PhD Student’s Conference for Heterodox students. More details will be available soon from the SHE and CofFEE websites.
SHE Website: 
CofFEE website: 

2007 Sixth Australian Society of Heterodox Economists Conference

The 2007 SHE Conference will be held on Monday 10 December and Tuesday 11 December at the University of New South Wales.

Congratulations to Peter, John, and the rest of the mob of Australian heterodox economists for formally establishing SHE.

Fred Lee


In this issue:

  - Call for Papers

          - ICAPE Conference, 1-3 June 2007
          - 2nd EAEPE Symposium
          - Association for Heterodox Economics 9th Annual Conference 2007
          - “Corporate Accountability Limited Liability, and the Future of Globalisation”
          - Twelfth European Conference on the History of Economics (ECHE 2007)
Conferences, Seminars and Lectures

          - IA- Hommage A Charles Bettelheim
          - Seminaire ARC 2
          - The CASE 2007 Winds of Change Conference

  Job Postings for Heterodox Economists

          - University of Nevada, Reno NV

  - Heterodox Conference Papers and Reports and Articles

          - What We Learn When We Learn Economics

  - Heterodox Journals and Newsletters

          - Levy News
          - New Political Economy
          - European Journal of the History of Economic Thought
          - Review of Social Economy
          - Journal of Economic Methodology
          - International Review of Applied Economics

  - Heterodox Books, Book Series, and Book Reviews

          - Introduction to Post-Keynesian Economics
          - Competition: The Birth of a New Science
          - Deep History: A Study in Social Evolution and Human Potential

  - For Your Information

          - Announcement of a Major Prize Competition
          - Thomas Palley-  Economics for Democratic and Open Societies


Call for Papers

ICAPE Conference, 1-3 June 2007

Between now and January 15, I hope you will feel inspired (or coerced, whichever you find more compelling) to propose a paper for the ICAPE conference on Economic Pluralism for the 21st Century, to be held June 1-3 at the University of Utah in Salt Lake City.
Like ICAPE's inaugural conference in 2003, this is a "big tent" conference open to all economic thinkers, topics, and fields of specialization.
We have received proposals so far from scholars in 12 countries (Belgium, China, Colombia, Denmark, Germany, India, Iran, Ireland, Italy, Mexico, the U.K., and the U.S.) who represent a several distinct traditions of thought. This is a healthy start.
But in order to fulfill ICAPE's mission of promoting intellectual diversity and inter-paradigmatic exchange in economic scholarship and education, we need to elicit proposals from a critical mass of Austrian, Feminist, Institutional-Evolutionary, Marxian, Postcolonial, Post Keynesian, Postmodern, Radical, Social, Sraffian, and OUT (Otherwise Unorthodox and Talented) economists.
In short, we need more proposals from economic thinkers like YOU!
If you would like to join us for three days of unusually good conference conversation, food, and drink in Salt Lake City next June, please send a 250-word abstract to Rob Garnett,  no later than January 15.
Or, to learn more about the conference or ICAPE itself (the International Confederation of Associations for Pluralism in Economics), please visit our web site: 
We really hope to hear from you!
For the ICAPE conference organizers (Al Campbell, Wilfred Dolfsma, Edward Fullbrook, Rob Garnett, Neva Goodwin, John Henry, Mary King, Fred Lee, Ed McNertney, Judith Mehta, Erik Olsen, and Martha Starr),

Rob Garnett
Department of Economics
Box 298510
Texas Christian University
Fort Worth, TX 76129

2nd EAEPE Symposium

The second deadline approaching concerns the submission of entries to the 2nd EAEPE Symposium to be held in Delft, Netherlands, on the theme "Privatisation and Regulation of Core Transactions in Critical Infrastructures".

2nd EAEPE Symposium in Delft, Netherlands, March 2007 (deadline for submission of abstracts: 15.01.2006)
For more information follow the link:

Association for Heterodox Economics 9th Annual Conference 2007

Pluralism in Action
13 – 15 July, 2007
University of the West of England, Bristol

The Ninth Annual Conference of the Association of Heterodox Economics (AHE) will be held at the University of the West of England from 13th to 15th July 2007.
For detailed information: AHE2007.doc

“Corporate Accountability Limited Liability, and the Future of Globalisation”

20 -21 July 2007
at the School of Oriental and African Studies, London, UK,The Centre for International Studies and Diplomacy (CISD)
For detailed information click here.

Twelfth European Conference on the History of Economics (ECHE 2007)

University of Siena,
Certosa di Pontignano (Siena), Italy,
4-6 October 2007
Axiomatics in Economics: The Rise and Fall
For detailed information: ECHE2007.doc


Conferences, Seminars and Lectures

Hommage A Charles Bettelheim

La trajectoire d'un économiste engagé

Disparu en juillet dernier, Charles Bettelheim a traversé le
XX° siècle en chercheur et en homme d'action.
Marxiste hétérodoxe, il fut à la fois promoteur de la planification
du développement et critique de sa mise en oeuvre dans de nombreux pays,
théoricien des économies capitalistes et analyste des économies socialistes.

Une séance d'hommage se tiendra à
l'EHESS, samedi 20 janvier 2007,
Amphithéâtre, 105 Bd Raspail, 75006 Paris
de 10h à 13h

Pour évoquer sa vie et son ¦uvre, Ignacy Sachs, Maurice Godelier, Bernard Chavance, Jacques Sapir et Wladimir Andreff apporteront leurs témoignages.
La séance sera ouverte par Yves Chevrier,membre du bureau de l'EHESS
A l'issue de la réunion, on se réunira autour d'un verre (105 Bd Raspail).
(Pour toute information complémentaire, contacter Dominique Lebleux, 

Seminaire ARC 2


DEMI JOURNEE (15h-19h)

Salle 117
106 - 112 boulevard de l'Hôpital, 75013 Paris

Economie Politique et Concertation Sociale

15h-15h15 : Introduction
D. Gatti (Paris XIII) et H. Zajdela (Paris XIII)

15h15- 17h : La political economy de la concertation sociale
Présentation : Lucio Baccaro (MIT & ILO)
Contre point : B. Amable (Paris I) et R. Boyer (CNRS)

17h-17h15 : Pause

17h15 – 19h : Flexibilité et sécurisation des trajectoires professionnelles
Présentation : Jacques Freyssinet (CEE)
Contre point : F. Gaudu (Paris I) et T. Kirat (CNRS)

Des textes seront disponibles début janvier.
Les informations relatives au calendrier du séminaire ARC2 sont disponible au lien suivant :

Prochaines séances :

19 mars 2007 - SALLE 10, ENS - Jourdan
« Variété du capitalisme à l'est »
Organisateurs : Cédric Durand, Donatella Gatti, Jacques Mazier

4 juin 2007 - SALLE 117, MSE
« La Turquie et l’intégration européenne »
Organisateurs : El Mouhoub Mouhoud, Bruno Théret

The CASE 2007 Winds of Change Conference

Kyiv, Ukraine
23 – 24 March 2007

With high growth rates in Asia, most notably China, India, and South-East and Central Asia, Eurasia’s economic centre of gravity is rapidly shifting to the East. At the same time, most of Europe faces serious barriers to growth in the long term.
For detailed information: 2007 CASE Conference_News.pdf


Job Postings for Heterodox Economists

University of Nevada, Reno NV

AF Any Field

The Department of Economics invites applications for a visiting professor position at the rank of assistant, associate or full professor. This is a temporary nine-month position beginning August 20, 2007 through May 22, 2008. Candidates with completed Ph.D.s are preferred, but applications from candidates who are ABD will be considered. The successful applicant will teach three sections per semester, including two sections of principles and one field course in his or her area of expertise, and also have an active research agenda. Apply online at, and attach a letter of application, curriculum vita, evidence of teaching excellence, a recent sample of research and contact information for three professional references. Applications received by March 31, 2007 will receive full consideration. AA/EEO Women and under-represented groups are encouraged to apply.


Heterodox Conference Papers and Reports and Articles

What We Learn When We Learn Economics

By Christopher Hayes

Is a little economics a dangerous thing?
There's a case to be made that the single most intellectually and politically influential neighborhood in the United States is Chicago's Hyde Park. Integrated, affluent and quiet, the 1.6 square-mile enclave on the city's south side is like a tiny company town, where the company happens to be the august, gothic, eminently serious University of Chicago. Students at the U. of C. sell T-shirts that read "Where Fun Goes To Die," and the same could be said of the neighborhood, which until very recently had a bookstore-to-bar ratio of 5:2.(cont.)


Heterodox Journals and Newsletters

Levy News

Digital Newsletter of The Levy Economics Institute of Bard College
December 2006

1. Strategic Anaylsis
2. Public Policy Briefs
3. Institute Book Series
4. Report
5. Working Papers

"Can Global Imbalances Continue? Policies for the U.S. Economy"
November 2006
"Rethinking Trade and Trade Policy: Gomory, Baumol, and Samuelson on Comparative Advantage"
No. 86, 2006

"Maastricht 2042 and the Fate of Europe: Toward Convergence and Full Employment"
No. 87, 2006

"U.S. Household Deficit Spending: A Rendezvous with Reality"
No. 88, 2006

"International Perspectives on Household Wealth"
December 2006
Vol. 16, No. 4 
"On the Minskyan Business Cycle"
No. 474

"Capital Stock and Unemployment: Searching for the Missing Link"
No. 475
"The ‘New Consensus’ View of Monetary Policy: A New Wicksellian Connection"
No. 476
"When Knowledge Is an Asset: Explaining the Organizational Structure of Large Law Firms"
No. 477
"On Lower-Bound Traps: A Framework for the Analysis of Monetary Policy in the ‘Age’ of Central Banks"
No. 478
"European Welfare State Regimes and Their Generosity Toward the Elderly"
No. 479
"Methodology and Microeconomics in the Early Work of Hyman P. Minsky"
No. 480
"An Inquiry into the Nature of Money: An Alternative to the Functional Approach"
No. 481
"Net Intergenerational Transfers from an Increase in Social Security Benefits"
No. 482
"Fisher’s Theory of Interest Rates and the Notion of 'Real': A Critique"
No. 483

New Political Economy

Volume 11 Number 4/December 2006 of New Political Economy is now available at

This issue contains:

- The Company of Strangers: Defending the Power of Business in Britain, 1975–2005
Michael Moran

- Capital at Its Fringes
Rob Aitken

- The International Implications of China's Fledgling Regulatory State: From Product Maker to Rule Maker
David Bach, Abraham L. Newman, Steven Weber

- The Tunisian Mise à Niveau Programme and the Political Economy of Reform
Emma C. Murphy

- Sovereign Debt and Private Creditors: New Legal Sanction or the Enduring Power of States?
Helen Thompson, David Runciman

- Escaping the Resource Curse
Andrew Rosser

- The World Bank
Penny Griffin

- Globalization, Poverty and Inequality
John Ravenhill

- Notes on Contributors

European Journal of the History of Economic Thought

Volume Volume 13.4 (December, 2006) of European Journal of the History of Economic Thought is now available at

This issue contains:

- Whither the history of economic thought? Going nowhere rather slowly?*
Heinz D. Kurz

- Adam Smith's use of multiple references for his pin making example*
Jean-Louis Peaucelle

- Britain's single currency debate of the late 1860s*
John Maloney

- Slonimsky's view on Antoine-Augustin Cournot*
Andrés Vázquez

- From economic stability to social order: The debate about business cycle theory in the 1920s and its relevance for the development of theories of social order by Lowe, Hayek and Eucken*
Gerold Blümle, Nils Goldschmidt

- Frank Knight and pragmatism*
D. Wade Hands

- In memory of Paolo Sylos Labini (1920 – 2005)*
Marcella Corsi

- Shigeto Tsuru (1912 – 2006): Life, work and legacy*
Kotaro Suzumura

- Book reviews

Review of Social Economy

Volume 64 Number 4/December 2006 of Review of Social Economy is now available at

This issue contains:

- Social class and social identity
David George

- On the efficiency of fair trade
Mark Hayes

- Explaining the aggregate price level with Keynes's principle of effective demand
Jochen Hartwig

- Open and closed systems and the Cambridge School
Vinca Bigo

- Economic grounds for affirmative action: The evidence on architects and engineers in South Florida
Manuel J. Carvajal

- Ethnic heterogeneity and the enforcement of environmental regulation
Julio Videras, Christopher J. Bordoni

- Contributors

- Review of social economy referees for 2005

- Call for Papers: Social Values and Economic Life

Journal of Economic Methodology

Volume 13 Number 4/December 2006 of Journal of Economic Methodology is now available at

This issue contains:

- Tractability assumptions and the Musgrave–Mäki typology
Frank A. Hindriks

- Contrastive explanation and unrealistic models: The case of the new economic geography
Caterina Marchionni

- Economic history and economic theory
Filippo Cesarano

- Coleman's Hypothesis on trusting behaviour and a remark on meta‐studies
Friedel Bolle, Jessica Kaehler

- Evidence of a Harvard and Chicago Matthew Effect
Marshall H. Medoff

- Book reviews

- Notes on contributors

International Review of Applied Economics

Volume 21 Number 1/January 2007 of International Review of Applied Economics is now available at

This issue contains:

- Electricity Prices as Signals for the Evaluation of Reforms: An Empirical Analysis of Four European Countries
Massimo Florio

- Turkish Currency Crisis of 2000–2001, Revisited
Nazim Kadridot; Ek&idot;nc&idot;, Korkut Alp Ertürk

- On the Transmission Mechanism of Monetary Constraints to the Real Side of the Economy
Alex Luiz Ferreira

- Convergence in Productivity Across Industries: Some Results for New Zealand and Australia
Troy D. Matheson, Les Oxley

- Technical Diffusion, Productivity Convergence and Specialisation in OECD Manufacturing
Dirk Frantzen

- Does Multinationality Affect the Propensity to Innovate? An Analysis of the Third UK Community Innovation Survey
Marion Frenz, Grazia Ietto‐Gillies

- The Relationship Between Growth, Total Investment and Inward FDI: Evidence from Time Series Data
Liangshu Qi

- USA, Japan and the Euro Area: Comparing Business‐Cycle Features
Peter McAdam

- Second‐Generation Immigrants in the Swedish Labour Market
Lars Behrenz, Mats Hammarstedt, Jonas Månsson

- Evaluating the Relative Innovative Position of European Union Member Countries: An Empirical Analysis
A. Altuzarra, C. Puerta, F. Serrano


Heterodox Books, Book Series, and Book Reviews

Introduction to Post-Keynesian Economics

Marc Lavoie

This book offers an easy to read introduction to post-Keynesian economics, showing that there is an alternative to neoclassical economics and its free-market economic policies. Post-Keynesian economics is founded on realistic assumptions and stylized facts, such as interest targeting by central banks or constant average variable costs in manufacturing and services. The author shows how these more realistic foundations give rise to macroeconomic implications that are entirely different from those of received wisdom with regards to employment, output growth, inflation and monetary theory. For instance, the author demonstrates that higher minimum wages or real wages can increase both labour employment and the corporate profit rates, and that faster output growth need not lead to higher inflation.

List of Figures
List of Tables
List of Boxes
Preface to the English Edition
Who are the Post-Keynesians?
The Characteristics of Heterodox Economics
The Essential Characteristics of Post-Keynesian Economics
The Various Strands of Post-Keynesian Economics
Consumer Choice Theory
Oligopolistic Markets and the Objectives of Firms
The Shape of Cost Curves
Price Setting
The Determinants of the Costing Margin
Conseuqences for Macroeconomic Theory
Main Characteristics of Post-Keynesian Monetary Analysis
The Relationship between Commerical Banks and the Central Bank
The Relationship between Banks and Firms
A Systemic View of the Monetary Economy
Effective Demand and its Components
The Kaleckian Model
Further Developments of the Kaleckian Model
The Old Post-Keynesian Growth Models
The New Kaleckian Models
Extensions and Criticism of the Kaleckian Model

Author Biographies
MARC LAVOIE is Professor in the Department of Economics at the University of Ottawa, Canada. He has been Visiting Professor at Curtin University, Australia, and at the universities of Bordeaux, Grenoble, Lille, Limoges, Nice, Rennes, Paris-1 and Paris-13. His main research areas are in post-Keynesian and monetary economics. He has written over 130 journal articles or book chapters as well as authoring Foundations of Post-Keynesian Economics and co-edited Central Banking in the Modern World.

Competition: The Birth of a New Science

James Case

The mathematical theory of games sheds light on a wide range of competitive activities.
What do chess-playing computer programs, biological evolution, competitive sports, gambling, alternative voting systems, public auctions, corporate globalization, and class warfare have in common? All are manifestations of a new paradigm in scientific thinking, which James Case calls “the emerging science of competition.” Drawing in part on the pioneering work of mathematicians such as John von Neumann, John Nash (of A Beautiful Mind fame), and Robert Axelrod, Case explores the common gametheoretical strands that tie these seemingly unrelated fields together, showing how each can be better understood in the shared light of the others. Not since James Gleick’s bestselling book Chaos brought widespread public attention to the new sciences of chaos and complexity has a general-interest science book served such an eye-opening purpose. Competition will appeal to a wide range of readers, from policy wonks and futurologists to former jocks and other ordinary citizens seeking to make sense of a host of novel—and frequently controversial—issues

Deep History: A Study in Social Evolution and Human Potential

David Laibman

SUNY Press, Albany, NY, 2007. Pp. xiii, 224.
PART I: The General Theory of Social Evolution
Chapter 1: Agency, Causality and History
Chapter 2: Transition to Capitalism: The PF¯PR Model
and Alternatives
PART II: Capitalism: Structure, Logic, Stadiality
Chapter 3: The Elusive Anatomy of Capitalist Society
Chapter 4: The Logic of Capitalism: Growth and Crisis
Chapter 5: A Stadial Model of the Capitalist Era
PART III: Beyond Capitalism: An Envisioned Future
Chapter 6: Socialism: Beyond Capital, Beyond Class
Chapter 7: The Soviet Experience and the Theory of
Full Communism


For Your Information

Announcement of a Major Prize Competition

Thorstein Veblen was born on 30 July 1857. In order to commemorate the 150th anniversary of his birth, the Association for Evolutionary Economics (AFEE) and the European Association for Evolutionary Political Economy (EAEPE) will co-sponsor the Veblen 150 Prize Competition.

Anyone may submit a written work. Those who submit written work will be considered a candidate for the prize.

Candidates will be expected to submit written works on the nature of institutions, the theory of institutional evolution, the philosophical foundations of institutional and evolutionary economics, or the application of institutional or evolutionary theory to economic policy. These themes reflect Veblenian concerns.

Contestants will be divided into two groups:

(1) Candidates born on or after 1 January 1973, or currently enrolled PhD students, or candidates who were awarded their PhD on or after 1 January 2003.

(2) Candidates who do not qualify under (1) above.

Submitted works may be unpublished, or published no earlier than 2005. Books, articles or PhD theses may be considered. Up to four prizes shall be awarded. For each of group (1) and group (2) there will be up to two prizes of 2,000 GBP each.

Candidates must submit their work to Geoff Hodgson, to be received by 30 June 2007. Submissions must be on a single electronic file (to or six printed copies of the work (to Prof G Hodgson, The Business School, University of Hertfordshire, Hatfield, Hertfordshire AL10 9AB, UK).

Current Trustees of FEED as well as members of the councils of EAEPE and AFEE in 2006 or 2007 shall be ineligible to enter this competition.

The prizes will be judged by a panel nominated jointly by AFEE and EAEPE and by the Foundation for European Economic Development (FEED). The prizes are funded by FEED (a registered UK charity).

See  for details.

Thomas Palley- Economics for Democratic and Open Societies

The Knowledge Police in Economics
It is often said that knowledge is power. One implication of this is that the powerful have an incentive to police what gets called knowledge. Nowhere is this truer than in economics since how we describe the economy has vital consequences for economic policy, providing a clear motive to police the production of economic knowledge. Unmasking this reality is critical for a democratic equal opportunity society. However, it is extremely difficult to do (cont.)