3,479 research outputs found
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;
An Anatomy of a Cartel: The National Industrial Recovery Act of 1933 and the Compliance Crisis of 1934
This paper explores the nature and causes of the cartel compliance crisis that befell the National Industrial Recovery Act (NIRA) one year after its passage in 1933. We employ a simple game-theoretic model of the NIRA's cartel enforcement mechanism to show that the compliance crisis can largely be explained by changes in expectations, rather than a change in enforcement policy. Specifically, firms initially overestimated the probability that defection would be met with sanction by the cartel's enabling body, the National Recovery Administration-including a consumer boycott resulting from loss of the patriotic Blue Eagle emblem-and complied with the industry cartel rules. As these expectations were correctly adjusted downward, cartel compliance was lost. We support this hypothesis empirically with industry-level panel data showing how output and wage rates varied according to consumer confidence in the Blue Eagle. The analysis provides insight about cartel performance more generally
Collisionless energy transfer in kinetic turbulence: field-particle correlations in Fourier space
Turbulence is ubiquitously observed in nearly collisionless heliospheric
plasmas, including the solar wind and corona and the Earth's magnetosphere.
Understanding the collisionless mechanisms responsible for the energy transfer
from the turbulent fluctuations to the particles is a frontier in kinetic
turbulence research. Collisionless energy transfer from the turbulence to the
particles can take place reversibly, resulting in non-thermal energy in the
particle velocity distribution functions (VDFs) before eventual collisional
thermalization is realized. Exploiting the information contained in the
fluctuations in the VDFs is valuable. Here we apply a recently developed method
based on VDFs, the field-particle correlation technique, to a ,
solar-wind-like, low-frequency Alfv\'enic turbulence simulation with well
resolved phase space to identify the field-particle energy transfer in velocity
space. The field-particle correlations reveal that the energy transfer,
mediated by the parallel electric field, results in significant structuring of
the ion and electron VDFs in the direction parallel to the magnetic field.
Fourier modes representing the length scales between the ion and electron
gyroradii show that energy transfer is resonant in nature, localized in
velocity space to the Landau resonances for each Fourier mode. The energy
transfer closely follows the Landau resonant velocities with varying
perpendicular wavenumber and plasma . This resonant signature,
consistent with Landau damping, is observed in all diagnosed Fourier modes that
cover the dissipation range of the simulation.Comment: 31 pages, accepted by JPP, minor improvements compared to v
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