Evidence and Ideology in Macroeconomics: The Case of Investment Cycles

The paper reports the principal findings of a long term research project on the description and explanation of business cycles. The research strongly confirmed the older view that business cycles have large systematic components that take the form of investment cycles. These quasi-periodic movements can be represented as low order, stochastic, dynamic processes with complex eigenvalues. Specifically, there is a fixed investment cycle of about 8 years and an inventory cycle of about 4 years. Maximum entropy spectral analysis was employed for the description of the cycles and continuous time econometrics for the explanatory models. The central explanatory mechanism is the second order accelerator, which incorporates adjustment costs both in relation to the capital stock and the rate of investment. By means of parametric resonance it was possible to show, both theoretically and empirically how cycles aggregate from the micro to the macro level. The same mathematical tool was also used to explain the international convergence of cycles. I argue that the theory of investment cycles was abandoned for ideological, not for evidential reasons. Methodological issues are also discussed

Gas emissions, minerals, and tars associated with three coal fires, Powder River Basin, USA.

Ground-based surveys of three coal fires and airborne surveys of two of the fires were conducted near Sheridan, Wyoming. The fires occur in natural outcrops and in abandoned mines, all containing Paleocene-age subbituminous coals. Diffuse (carbon dioxide (CO(2)) only) and vent (CO(2), carbon monoxide (CO), methane, hydrogen sulfide (H(2)S), and elemental mercury) emission estimates were made for each of the fires. Additionally, gas samples were collected for volatile organic compound (VOC) analysis and showed a large range in variation between vents. The fires produce locally dangerous levels of CO, CO(2), H(2)S, and benzene, among other gases. At one fire in an abandoned coal mine, trends in gas and tar composition followed a change in topography. Total CO(2) fluxes for the fires from airborne, ground-based, and rate of fire advancement estimates ranged from 0.9 to 780mg/s/m(2) and are comparable to other coal fires worldwide. Samples of tar and coal-fire minerals collected from the mouth of vents provided insight into the behavior and formation of the coal fires

Measurement in Economics and Social Science

The paper discusses measurement, primarily in economics, from both analytical and historical perspectives. The historical section traces the commitment to ordinalism on the part of economic theorists from the doctrinal disputes between classical economics and marginalism, through the struggle of orthodox economics against socialism down to the cold-war alliance between mathematical social science and anti-communist ideology. In economics the commitment to ordinalism led to the separation of theory from the quantitative measures that are computed in practice: price and quantity indexes, consumer surplus and real national product. The commitment to ordinality entered political science, via Arrow’s ‘impossibility theorem’, effectively merging it with economics, and ensuring its sterility. How can a field that has as its central result the impossibility of democracy contribute to the design of democratic institutions? The analytical part of the paper deals with the quantitative measures mentioned above. I begin with the conceptual clarification that what these measures try to achieve is a restoration of the money metric that is lost when prices are variable. I conclude that there is only one measure that can be embedded in a satisfactory economic theory, free from unreasonable restrictions. It is the Törnqvist index as an approximation to its theoretical counterpart the Divisia index. The statistical agencies have at various times produced different measures for real national product and its components, as well as related concepts. I argue that all of these are flawed and that a single deflator should be used for the aggregate and the components. Ideally this should be a chained Törnqvist price index defined on aggregate consumption. The social sciences are split. The economic approach is abstract, focused on the assumption of rational and informed behavior, and tends to the political right. The sociological approach is empirical, stresses the non-rational aspects of human behavior and tends to the political left. I argue that the split is due to the fact that the empirical and theoretical traditions were never joined in the social sciences as they were in the natural sciences. I also argue that measurement can potentially help in healing this split

Science and Ideology in Economic, Political, and Social Thought

This paper has two sources: One is my own research in three broad areas: business cycles, economic measurement and social choice. In all of these fields I attempted to apply the basic precepts of the scientific method as it is understood in the natural sciences. I found that my effort at using natural science methods in economics was met with little understanding and often considerable hostility. I found economics to be driven less by common sense and empirical evidence, then by various ideologies that exhibited either a political or a methodological bias, or both. This brings me to the second source: Several books have appeared recently that describe in historical terms the ideological forces that have shaped either the direct areas in which I worked, or a broader background. These books taught me that the ideological forces in the social sciences are even stronger than I imagined on the basis of my own experiences. The scientific method is the antipode to ideology. I feel that the scientific work that I have done on specific, long standing and fundamental problems in economics and political science have given me additional insights into the destructive role of ideology beyond the history of thought orientation of the works I will be discussing

Angry White Men: Individual and Contextual Predictors of Support for the British National Party

The British National party (BNP) is the most successful extreme right party in Britain's electoral history and is the fastest growing political party in twenty-first century Britain. This article presents the first ever individual-level analysis of BNP supporters, utilising a survey data set uniquely compiled for this purpose. We find that support for the BNP is concentrated among older, less educated working-class men living in the declining industrial towns of the North and Midlands regions. This pattern of support is quite distinct from that which underpinned the last electorally relevant extreme right party in Britain – the National Front (NF) – whose base was young working-class men in Greater London and the West Midlands. Extreme right voters in contemporary Britain express exceptionally high levels of anxiety about immigration and disaffection with the mainstream political parties. Multi-level analysis of BNP support shows that the party prospers in areas with low education levels and large Muslim minority populations of Pakistani or African origin. The BNP has succeeded in mobilising a clearly defined support base: middle-aged working-class white men anxious about immigration, threatened by local Muslim communities and hostile to the existing political establishment. We conclude by noting that all the factors underpinning the BNP's emergence – high immigration levels, rising perceptions of identity conflict and the declining strength of the cultural and institutional ties binding voters to the main parties – are likely to persist in the coming years. The BNP therefore looks likely to consolidate itself as a persistent feature of the British political landscape

Activism in Contemporary Extreme Right Parties: The Case of the British National Party (BNP)

Whilst the electoral performance of contemporary extreme right parties has generated much interest there are few studies of extreme right party activists. Focusing on the case of the British National Party (BNP) this article investigates who joins the extreme right and considers the motive for active participation. The study draws on qualitative life?history interviews with activists and analysis of internally?orientated party literature. Like its electorate, the BNP recruits much of its active support from older working?class males, though “types” of activist who are drawn to the party and who follow quite different routes into the extreme right are identified. In terms of the motive for activism, findings suggest the importance of ideological motives and collective incentives, in particular ethnic nationalist beliefs and a desire to defend the native in?group from perceived threats. In conclusion, the article raises implications for the study of extreme right parties and activism