Hilferding's Influence on Schumpeter : A First Discussion

In the present paper, the origins of some of Joseph Alois Schumpeter’s views are traced back to Rudolf Hilferding’s Finance Capital, regarding the Schumpeterian hypothesis and the separation of roles between capitalists, entrepreneurs and managers. After a careful examination of Hilferding’s writings, the conclusion may be drawn that Schumpeter expresses ideas very similar to Hilferding’s on these issues, and seems to have been influenced by his conceptualisation of a “latest phase” of capitalism, shaped by the structure and functions of the “monopolistic enterprise”. Hilferding’s approach is understood in this paper as a major revision of Marx’s methodological perspective and conceptual understanding of the capitalist mode of production and, therefore, as a “paradigm shift” within Marxian economic theory

Hilferding's Influence on Schumpeter : A First Discussion

In the present paper, the origins of some of Joseph Alois Schumpeter’s views are traced back to Rudolf Hilferding’s Finance Capital, regarding the Schumpeterian hypothesis and the separation of roles between capitalists, entrepreneurs and managers. After a careful examination of Hilferding’s writings, the conclusion may be drawn that Schumpeter expresses ideas very similar to Hilferding’s on these issues, and seems to have been influenced by his conceptualisation of a “latest phase” of capitalism, shaped by the structure and functions of the “monopolistic enterprise”. Hilferding’s approach is understood in this paper as a major revision of Marx’s methodological perspective and conceptual understanding of the capitalist mode of production and, therefore, as a “paradigm shift” within Marxian economic theory

The Influence of the German Historical School on Schumpeter

The present paper defends the thesis that Schumpeter formulated his research program and his main theses in accordance with the theoretical framework of the German Historical School, as expressed by major theoreticians such as Schmoller, Max Weber and Sombart. For instance, Schumpeter’s notion of development could be viewed in the context of the Schmollerian theoretical approach. Next, we compare, briefly, Schumpeter’s and Weber’s central visions emphasizing the role of the “entrepreneur”, the “circular flow” and the “protestant ethic” and the “spirit of capitalism” respectively. Finally, Schumpeter seems to follow Sombart in his “theoretical materialism”, and there is general agreement between the two theoreticians that capitalism was on the decline. However, the strongest parallels are to be found with respect to forces driving the process, at the end of which Schumpeter expected a socialist system, while Sombart expected a mixed economy. Also, several similarities can be found in their respective theses about the evolution of the capitalist enterprise and the role of technology. Τhe paper discusses, also, some of Schumpetr’s main differences of approach as to the German Historical School and concludes that the latter shall inspire further research and developments in Schumpeterian economics

The Influence of the German Historical School on Schumpeter

The present paper defends the thesis that Schumpeter formulated his research program and his main theses in accordance with the theoretical framework of the German Historical School, as expressed by major theoreticians such as Schmoller, Max Weber and Sombart. For instance, Schumpeter’s notion of development could be viewed in the context of the Schmollerian theoretical approach. Next, we compare, briefly, Schumpeter’s and Weber’s central visions emphasizing the role of the “entrepreneur”, the “circular flow” and the “protestant ethic” and the “spirit of capitalism” respectively. Finally, Schumpeter seems to follow Sombart in his “theoretical materialism”, and there is general agreement between the two theoreticians that capitalism was on the decline. However, the strongest parallels are to be found with respect to forces driving the process, at the end of which Schumpeter expected a socialist system, while Sombart expected a mixed economy. Also, several similarities can be found in their respective theses about the evolution of the capitalist enterprise and the role of technology. Τhe paper discusses, also, some of Schumpetr’s main differences of approach as to the German Historical School and concludes that the latter shall inspire further research and developments in Schumpeterian economics

Democritus and his Influence on Classical Political Economy

Most essays on the economic ideas of the ancient Greeks are concerned with the Socratic philosophers and very few references to the economic ideas of Democritus can be found. The present paper demonstrates that the ancient Greek philosopher Democritus expressed many interesting psychological and economic ideas, some of which can also be found in the works of the Socratic philosophers that followed. In this manner, the paper concludes that the Aderian philosopher, despite the fact that he did not engage himself primarily with economic issues, as his economic ideas were mainly developed as part of his psychological and philosophical teaching, is nevertheless a fine example of how ancient Greek thought contributed to the formation of the epistemological presuppositions of Political Economy, making Man the Subject of History and of all Social Process

Democritus and his Influence on Classical Political Economy

Most essays on the economic ideas of the ancient Greeks are concerned with the Socratic philosophers and very few references to the economic ideas of Democritus can be found. The present paper demonstrates that the ancient Greek philosopher Democritus expressed many interesting psychological and economic ideas, some of which can also be found in the works of the Socratic philosophers that followed. In this manner, the paper concludes that the Aderian philosopher, despite the fact that he did not engage himself primarily with economic issues, as his economic ideas were mainly developed as part of his psychological and philosophical teaching, is nevertheless a fine example of how ancient Greek thought contributed to the formation of the epistemological presuppositions of Political Economy, making Man the Subject of History and of all Social Process

Emil Lederer and the Schumpeter, Hilferding, Tugan-Baranowsky Nexus

This essay argues that Emil Lederer formulated his research agenda and his main theses in close theoretical contact with the conceptual framework of other schools of thought, as represented by major scholars such as Joseph Schumpeter, Rudolf Hilferding and Mikhail Ivanovich Tugan-Baranowsky. The impact of technological progress on the economic system is a central theme in Lederer’s work, whereas its linkage to the market structure and more specifically to the emergence of monopolies is also shared by Hilferding. Moreover, Lederer argued that business cycles constitute an endogenous characteristic of capitalism and should not only be attributed to external shocks which disrupt an otherwise harmonious economic environment. In his major work Technical Progress and Unemployment (1938), Lederer argued that business cycles could arise from the disruptions created by innovations which are introduced discontinuously into the economic system, a thesis that is traditionally known to be of Schumpeterian inspiration. Hilferding and Tugan–Baranowsky delivered theories of economic fluctuations focusing on the role of disproportional growth between production sectors. It is interesting to note that, in his early writings, Lederer had adopted and extended many of Hilferding’s and Tugan-Baranowsky’s theses presented in their disproportionality theories. In his respective analysis, Lederer referred to (technological) unemployment as a main feature of the economic system as a whole, whereas he tended to link it to technical change and economic development. Also, his emphasis on insufficient aggregate demand in periods of economic depression is of great importance. Finally, as far as his methodological approach is concerned, Lederer tended to support his theoretical arguments with empirical data and theoretical discussions without any attempt to use mathematical tools. In other words, his work presents a strong link of theoretical reasoning and empirical evidence. Consequently, it can be argued that despite the fact that Lederer is an economist whose theories remain almost unknown nowadays, his work reflects a very rich background of theoretical traditions. Finally, all these major economists, in spite of their theoretical differences, have delivered certain theses which are similar in scope and conclusions

Emil Lederer’s Theory of Economic Fluctuations and the Role of Financial Institutions

Emil Lederer was characterized as the “leading academic socialist of Germany in the 1920’s” by Joseph Schumpeter and was a highly respected economist of his time. However, most aspects of his work remain totally unexplored. This paper focuses on Emil Lederer’s theory of economic fluctuations. It defends the thesis that certain aspects of Lederer’s conceptualization of economic fluctuations underwent considerable modifications when his 1925 article Konjunktur und Krisen is compared with his 1938 book Technical Progress and Unemployment. In his first attempt to tackle the issue, in Konjunktur und Krisen (1925), Lederer had constructed an explanation consistent with the so-called "disproportionality theory" introduced by Tugan-Baranowsky and later adopted by Hilferding and others (codified as "early Lederer"). However, Lederer's conception of the business cycle in Technical Progress and Unemployment underwent considerable modifications. Lederer's (1938) analysis is, apparently, very 'Schumpeterian' (codified as "late Lederer"). In this version of his theory, the cycle is explained by supply-side factors, and more specifically by technical change. Additionally, Lederer’s view on the role of financial institutions (credit and banks) with regards to business cycles is analysed. Lederer avoided attributing a causative role to monetary factors. The interrelation between 'real' factors and financial institutions, combined with his consideration of psychological motives behind individual's behaviour constitute essential elements in his analysis of the business cycle

Schumpeter and Lederer on Growth, Technology, Credit and Business Cycles

It is the purpose of the present paper to compare Emil Lederer and Joseph Schumpeter with respect to their visions concerning the notions of economic growth, technology, credit and business cycles. Lederer, just like Schumpeter, used the distinction between statics and dynamics. Also, according to Lederer, technical progress leads to economic growth and is necessarily linked to fluctuations, an insight that we have already encountered in Schumpeter. They both emphasized the role of credit expansion and linked it with innovation. The endogenous character of economic fluctuations is another common point between the two great theoreticians. Moreover, the roots of some of Schumpeter’s and Lederer’s common views are traced back to Rudolf Hilferding and Mikhail Ivanovich Tugan-Baranowsky. Our analysis shows that despite the fact that the two economists are traditionally classified in different schools of thought, their theoretical investigations in a great number of thematic areas seem to converge to similar views since they developed certain of their theories in the same social, political, theoretical and ideological environment and were well acquainted with each other’s ideas. We may conclude, therefore, that the similarities of certain Schumpeterian elaborations with theoretical theses and analyses delivered by Emil Lederer are not accidental, but the outcome of this long interaction between them and other leading economists of that period like Rudolf Hilferding and Tugan-Baranowsky

Economic Fluctuations, Cyclical Regularities and Technological Change: The U.S. Food Sector (1958–2006)

Despite the fact that the U.S. food sector is a key component of U.S. manufacturing, it has attracted limited attention in the literature, so far. In fact, the recent food crisis shed some light on different aspects of the food sector, its products and its influence on millions of people. The sector is characterised by increasing concentration, changes in relative prices, shifts in consumer preferences and changes in government regulations. However, key issues related to technological change and the cyclical regularities of economic time series in the sector have been neglected or even unexplored in the literature. Our study provides robust evidence supporting the fact that technological change has explanatory power for output and profitability in the Granger-causal sense at various leads or lags. Also, the timing pattern of technological change indicates that the peak correlations appear at moderate lags. This implies that the technology shocks are transmitted in the economy relatively quickly. Also, the various economic time series in the sector seem to follow a cyclical pattern characterized by periodicities exhibiting a short-term cycle, a mid-term cycle and a long-term cycle