From Weight Watchers to State Watchers: Towards a Narrative of Liberalism

Alan Kahan’s Mind vs. Money: The War between Intellectuals and Capitalism (Transaction Publishers, 2010) treats intellectuals as a class, and tells of intellectuals’ yearning to play the role of cleric and of aristocrat. Kahan says that intellectuals are necessarily alienated from “capitalism.” In this essay I discuss Kahan’s erudite and insightful – though sometimes exasperating – work, and I take the opportunity to develop some ideas on the topic, ideas in line with Hayek’s thought.Intellectuals; capitalism; liberalism; statism; Hayek

In Defense of Dwelling in Great Minds: A Few Quotations from Michael Polanyi’s The Study of Man

It seems like a small and perhaps shrinking minority of economists know reverence of individual figures. Most economists seem to be without heroes, and sometimes disparage reverence as cultish idolatry. Here I collect from Michael Polanyi’s The Study of Man (1959) a few passages that eloquently suggest that “we need reverence to perceive greatness, even as we need a telescope to observe spiral nebulae.” The selection is made in the defense of seeking out and communing with great minds.greatness; reverence; heroes; calling

Measurement of the Dielectric Constant and Loss Tangent of Thallium Mixed Halide Crystals KRS-5 and KRS-6 at 95 GHz

The dielectric constants and loss tangents of KRS-5 and KRS-6 thallium halide mixed crystals have been measured at 95 GHz using both the shorted waveguide (SWG) reflection method and the Fabry-Perot (F-P) transmission method on samples filling standard WR-10 waveguide. The results--KRS-5: epsilon'/sub r/ = 31; tan delta = 1.8 x 10/sup -2/; KRS-6: epsilon'/sub r/ = 29, tan delta = 2 x 10/sup-2/-- agree reasonably well with a simple theoretical fit to the far-infrared Iattice absorption of TIBr and TICI centered at about 1400 GHz. The dielectric samples were hot-pressed into copper wafers with dimensions matching WR-10 waveguide, and then machined and polished to obtain flat, parallel air-dielectric interfaces

Executive Compensation in American Unions (CRI 2009-007)

Studying compensation in the nonprofit sector is difficult. In nonprofit organizations, it is not always clear what the objectives of the organization are and, therefore, perhaps even more difficult to consider how to compensate managers than in the for-profit sector. This paper investigates the determinants of executive compensation of leaders of American labor unions. We use panel data on more than 75,000 organization-years of unions from 2000 to 2007. We specifically concentrate on two issues of importance to unions – the level of membership and the wages of union members. Both measures are strongly related to the compensation of the leaders of American labor unions, even after controlling for organization size and individual organization fixed-effects. Additionally, the elasticity of pay with respect to membership for unions is very similar to the elasticity of pay with respect to employees in for profit firms over the same period

Trust and Formal Control in interorganizational Relationships

There is a tendency to see trust and control by formal agreements as substitutes. According to transaction cost economics trust is unreliable, and some form of control is needed to reduce hazards of opportunism. According to others, high trust allows for a limited extent of formal control. Formal control signals distrust and thereby evokes reciprocal distrust and formal control. This paper studies all combinations of high/low trust and high/low formal control in four longitudinal case studies. We find that trust and formal control are at least as much complements as they are substitutes. We find that like trust contracts can be both the basis and the outcome of relations.governance;inter-organizational relations;trust;contract

Israel Kirzner on Coordination and Discovery

Israel Kirzner has been one of the leaders in fashioning an Austrian school of economics. In his rendering of the Austrian school, one finds a marriage between Friedrich Hayek’s discourse with Ludwig von Mises’s deductive, praxeological image of science — a marriage that seems to us somewhat forced. The Misesian image of science stakes its claims to scientific status on purported axioms and categorical, 100-percent deductive truths, as well as the supposed avoidance of any looseness in evaluative judgments. In keeping with the praxeological style of discourse, Kirzner claims that his notion of coordination can be used as a clear-cut criterion of economic goodness. Kirzner wishes to claim that gainful entrepreneurial action in the market is always coordinative. We contend that Kirzner’s efforts to be categorical and to avoid looseness are unsuccessful. We argue that looseness inheres in the economic discussion of the most important things, and associate that viewpoint with Adam Smith. We suggest that Hayek is much closer to Smith than to Mises, and that Kirzner’s invocations of Hayek’s discussions of coordination are spurious. In denying looseness and trying to cope with the brittleness of categorical claims, Kirzner becomes abstruse. His discourse erupts with problems. Kirzner has erred in rejecting the understanding of coordination held by Hayek, Ronald Coase, and their contemporaries in the field at large. Kirzner’s refraining from the looser Smithian perspective stems from his devotion to Misesianism. Beyond all the criticism, however, we affirm the basic thrust of what Kirzner says about economic processes. Once we give up the claim that voluntary profitable activity is always or necessarily coordinative, and once we make peace with the aesthetic aspect of the idea of concatenate coordination, the basic claims of Kirzner can be salvaged: Voluntary profitable activity is usually coordinative, and government intervention is usually discoordinative. But the Misesian image of science must be dropped.coordination; concatenation; discovery; entrepreneurship;

Is There a Free-Market Economist in the House? The Policy Views of American Economic Association Members

People often suppose or imply that free-market economists constitute a significant portion of all economists. We surveyed American Economic Association members and asked their views on 18 specific forms of government activism. We find that about 8 percent of AEA members can be considered supporters of free-market principles, and that less than 3 percent may be called strong supporters. The data is broken down by voting behavior (Democratic or Republican). Even the average Republican AEA member is “middle-of-the-road,” not free-market. We offer several possible explanations of the apparent difference between actual and attributed views.-

Narrow-Tent Democrats and Fringe Others: The Policy Views of Social Science Professors

This paper provides copious results from a 2003 survey of academics. We analyze the responses of 1208 academics from six scholarly associations (in anthropology, economics, history, legal and political philosophy, political science, and sociology) with regard to their views on 18 policy issues. The issues include economic regulations, personal-choice restrictions, and military action abroad. We find that the academics overwhelmingly vote Democratic and that the Democratic dominance has increased significantly since 1970. A multivariate analysis shows strongly that Republican scholars are more likely to land outside of academia. On the 18 policy questions, the Democratic-voter responses have much less variation than do the Republicans. The left has a narrow tent. The Democratic and Republican policy views of academics are somewhat in line with the ideal types, except that across the board both groups are simply more statist than the ideal types might suggest. Regarding disciplinary consensus, we find that the discipline with least consensus is economics. We do a cluster analysis, and the mathematical technique sorts the respondents into groups that nicely correspond to familiar ideological categories: establishment left, progressive, conservative, and libertarian. The conservative group and the libertarian group are equal in size (35 individuals, each), suggesting that academics who depart from the leftist ranks are as likely to be libertarian as conservative. We also find that conservatives are closer to the establishment left than they are to the libertarians.-