Journal of Economic Issues

Founded in 1967, the Journal of Economic Issues is a quarterly journal that publishes articles on economic methodology, economic control and policy problems. It also contains book reviews and proceedings of annual meetings conducted by the Association of Evolutionary Economics, its publisher.It is edited by Richard V. Adkisson.

Articles from Vol. 32, No. 2, June

Adam Smith's Higher Vision of Capitalism
Adam Smith had a vision of capitalism that was much more elevated than that of most neoclassical economists. His ideal society would satisfy the ends of human nature as he identified them, and it is from this standard that Smith criticized defective...
Against Inequality
Definition and Plan of Attack Inequality is the systematic division of the members of a society into separate groups for the benefit of one group at the harm of the other. I call members of the benefited group the top dogs and members of the harmed...
American-Style Capitalism and Income Disparity: The Challenge of Social Anarchy
With the end of the Cold War on Christmas Day 1991, the word "capitalism" seems also to have disappeared from public discussions. In its place, there is much talk about "the market" as an impersonal object and praise for its alleged merits as a guide...
An Evolutionary Interpretation of the Japanese Depression in the 1990s
Modern capitalism has entered into a transition era since the 1970s. The four institutional structures that had supported "the Golden Age of Modern Capitalism" became unstable. First, Pax Americana has been declining. Second, the increase in federal...
Conditionality, Restructuring, and the Reperipherization of Latin America
During recent decades, many Latin American nations have undertaken market-oriented economic reform programs. These reforms have arisen in response to perceived failures of the structuralist-inspired import substitution approach to development of prior...
Current Welfare Reform: A Return to the Principles of 1834
In his Presidential Address of 1992, President Clinton announced his intention of "ending welfare as we know it." That promise has finally come to fruition in principle, if not yet in actual practice, with the passage of The Personal Responsibility and...
Economics and the Cold War: An Inquiry into the Relationship between Ideology and Theory
The cold war between the United States and the Soviet Union - a struggle for world hegemony between two great powers - was a political, diplomatic, economic, and ideological conflict. At times it became armed conflict. At the ideological level, it was,...
Equality, Democracy, Institutions, and Growth
The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves exempt from any intellectual...
Exporting a Japanese Model? Collusion in the Foreign Aid Program
In recent years, we have heard more and more about a Japanese model of development. This model differs markedly from the orthodox models of capitalist development championed in Great Britain and the United States, particularly in its reliance on deliberate...
Flexible Full Employment: Structural Implications of Discretionary Public Sector Employment
Full employment is often associated with structural rigidities. An economy running at full employment and high levels of capacity utilization will have difficulty adjusting to structural changes such as capital- and labor-displacing technical innovations,...
Globalization and Democracy
Freedom for the pike is death for the minnow. - Isaiah Berlin In this paper, I make the following points: capitalism is a creative/destructive system; the democratic welfare state emerged to tame the destructive side of capitalism while promoting its...
In Defense of a Tax on Foreign Exchange
This past fall has been a most interesting period in the history of the world's financial markets. Several East Asian countries, so recently celebrated as models of orthodox economic development strategies, suddenly foundered under the pressure of dramatic...
Institutions Matter: Great (and Not So Great) Transformations and Their Macroeconomic Consequences
As the next millennium approaches, global economic institutions increasingly resemble those that characterized the laissez-faire era of a century ago. Most representative of this transformation is the return to a self-regulating market system, as countries...
Integrated International Production and Non-Market Activity
The greater reliance on markets in managing economic activity is now recognized as a major feature of the new world economy. To many, it has appeared that the ideological contest between market and non-market is over and has been won by market. The advantage...
International Conservation Assistance in an Era of Structural Changes
The foreign debt crises that afflicted many Latin American and Caribbean nations, beginning with Mexico in 1982, led to lending programs by multilateral lending agencies (MLAs) that required recipients to undertake structural reforms in their economies....
Interwar Japanese Economists - How Did They Pick Their Questions?
This project explores the ideas of a group of economists trained at Tokyo University between 1910 and 1927, mainly Ouchi Hyoe and his students - Sakisaka Itsuro, Omori Yoshitaro, Arisawa Hiromi, Wakimura Yoshitaro, Takahashi Masao, and Minobe Ryokichi.(1)...
Labor Relations in Changing Capitalist Economies: The Meaning of Gifts in Social Relations
Impurity and Social Order Geoffrey Hodgson [1995] has proposed that capitalist economies can be distinguished by how the "impurity principle" works and by the extent to which a capitalist economic system is "impure." He argues that "every socioeconomic...
Mafianomics: How Did Mob Entrepreneurs Infiltrate and Dominate the Russian Economy?
Following Thomas Schelling's [1966] pioneering paper on organized crime (OC), attempts to define it have focused on determining either the characteristics of organized crime activities (OCAs) or those of the groups (OCGs) committing them.(1) These definitions...
Mexico's Liberalization Strategy, 10 Years On: Results and Alternatives
A liberalization strategy began in Mexico during 1988 under the Salinas administration, and since 1994, that strategy has been continued, with minor changes, under President Zedillo. The Mexican economic strategy is an important test case for the success...
Multilateral Trade Negotiations and the Changing Prospects for Third World Development: Assessing from a Southern Perspective
It has been three years since the establishment of the World Trade Organization (WTO) and the implementation, subject to differentiated phase-in periods for different areas, of the agreements reached in the Uruguay Round of multilateral trade negotiation...
Postmodernism, Institutionalism, and Statistics: Considerations for an Institutionalist Statistical Method
In this paper, we outline and advocate the use of an approach to statistical measurement and evaluation informed by the link between postmodernism (as a general way of thinking about the world) and institutionalist economics, which is practically suited...
Poverty and Charity: Early Analytical Conflicts between Institutional Economics and Neoclassicism
The recent restoration of capitalism in the United States, and elsewhere, has renewed interest in a century-old theoretical conflict about the analysis of poverty in a capitalist system. One of the defining characteristics of the difference between institutional...
Public Purpose and Private Ownership: Some Implications of the "Great Capitalist Restoration" for the Politicization of Private Sector Firms in Britain
The business firm carries the burden of delivering many aspects of "the satisfactory life" in the developed world of the late twentieth century. It is a fundamental unit of social organization. Analogous in many ways to the family, it takes many forms,...
Public Support for Conservative Economic Policies
Do materialist or ideological forces drive economic policy making in the United States? Mayo Toruno [1997] recently argued that the "right turn" of the U.S. government after the 1960s was not directly related to worsening economic conditions. Instead,...
Redistributing Income Upward through the Cost-Plus Reimbursement Terms of Subgovernment Contracts
This is a case study designed to test the thesis (drawn from political science literature) that the power of "subgovernments" in the United States has decreased and, in particular, claims a demise in the power of the atomic energy subgovernment as one...
Rethinking American Participation in Economic Development: An Institutionalist Assessment
I begin this paper with a personal note. In 1989, I spent a month in Bujumbura, Burundi, under the aegis of the U.S. Information Agency (USIA). Previously I had toured six central African countries, also for the USIA. These two tours enabled me to experience...
Speculation and the Dollar in the 1980s
With the end of Bretton Woods in the early 1970s, the market for foreign currency grew rapidly in both size and instability. The liberalization of capital flows that followed the adoption of floating exchange rates brought vastly larger flows of capital...
Static and Dynamic Comparative Advantage: A Multi-Period Analysis with Declining Terms of Trade
There is no body of economic theory that has achieved greater professional acceptance than David Ricardo's theory of comparative advantage and the modern emendations of Ricardo's "law." Criticisms of comparative advantage and its extensions from a theoretical...
The Buffer Stock Employment Model and the NAIRU: The Path to Full Employment
Governments redistribute resources from private households to the public sector to advance a variety of collective actions. The desirable size of the government (and the amount of resources redistributed) is a political choice, rather than an economic...
The Ethical Rate of Unemployment: A Technical Note
Assuming that there exists a stable long-term, positive relationship between the rate of unemployment and the rate of change of inequality in the wage structure, the ethical rate of unemployment is defined as that rate of unemployment above which inequality...
The Fight to Preserve Universal Social Programs: A Canadian Perspective on the Great Capitalist Restoration
In 1987, Robert Gilpin spoke about the crisis of national welfare capitalism in a non-welfare international capitalist world [1987, 60-64]. That crisis is only in part a logical consequence of the integration of global markets. It is also a result of...
The Institutional Economics of Poverty: An Inquiry into the Causes and Effects of Poverty
Remark Upon Receiving the Veblen-Commons Award The thesis of this essay is that the failure of the American people to invest adequately in the human capital represented by impoverished children is both the most important cause and the most tragic effect...
The Institutional Origins of Crises for Economy and Ecology
The Fundamental Problem of Existence All species share a common denominator in the struggle for survival: they must extract a constant flow of energy and materials from the environment to maintain the self-organized state of low entropy called life...
The Political Economy of Liberalization and Regulation: Trade Policy for the New Era
The emerging global economy is a source of both great promise and anxiety. Tariffs and quotas have been reduced to historically low levels through various negotiating rounds sponsored by the General Agreement on Tariffs and Trade (GATT). As these traditional...
The Privatization of Community: Implications for Urban Policy
Appeals to community are usually anti-urban. . . . Throughout the modern period, the city has often been decried as embodying immorality, artificiality, disorder, and danger. - Iris Young, 1995, 260. Wealthy and exclusive residential areas closed off...
The Relationship of Race and Outcomes of Non-Standard Labor
In the last 30 years, the U.S. economy has faced increased competition and globalization in product markets, rapidly changing technology, increased capital mobility, globalization of financial transactions, and the growth of merger and acquisition activity....
Too Many Hours - Too Little Pay: The Impact of Market and Household Hours on Women's Work Lives
As a society we have been loathed to acknowledge the chronic overwork that plagues the American household, preferring to romanticize the role of housewife and mother. Yet the shortage of time is not merely a problem of our paying jobs - we spend just...
Violence, Organized Crime, and the Criminal Justice System in Colombia
One of the concerns of the economic theory of crime has been the effect of the justice system on criminal activities. Theorists have proposed that the probability of being caught and sanctioned is a factor affecting the decisions made by criminals [Erlich...
Whaterever Happened to New Zealand? the Great Capitalist Restoration Reconsidered
During significant periods of its modern history, New Zealand has been hailed as the "social laboratory of the world." In the 1890s, a Liberal government engaged in a range of "state experiments." The First Labour government (1935-1949) provided the...
Zero Unemployment and Stable Prices
The 1946 Employment Act committed the U.S. government to high employment and stable prices, while the 1978 Humphrey-Hawkins Act strengthened the government's commitment by setting a goal of "full employment," defined as an adult unemployment rate of...