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Rethinking Economics Rethinking Economics Economics is a broad and diverse discipline, but most economics textbooks only cover one way of thinking about the economy. This book provides an accessible introduction to nine different approaches to economics: from feminist to ecological and Marxist to behavioural. Each chapter is written by a leading expert in the field described and is intended to stand on its own as well as providing an ambitious survey that seeks to high- light the true diversity of economic thought. Students of economics around the world have begun to demand a more open eco- nomics education. This book represents a first step in creating the materials needed to introduce new and diverse ideas into the static world of undergraduate economics. This book will provide context for undergraduate students by placing the mainstream of eco- nomic thought side by side with more heterodox schools. This is in keeping with the Rethinking Economics campaign which argues that students are better served when they are presented with a spectrum of economic ideas rather than just the dominant paradigm. Rethinking Economics: An Introduction to Pluralist Economics is a great entry-level eco- nomics textbook for lecturers looking to introduce students to the broader range of ideas explored within the economics profession. It is also appropriate and accessible for people outside of academia who are interested in economics and economic theory. Liliann Fischer has an International Relations background, recently graduating from her first Master’s degree in Global Conflict and Peace Processes at the University of Aberdeen and is now studying for a second degree in Political Psychology at the University of Kent, UK. Joe Hasell graduated in Philosophy, Politics and Economics (PPE) from the University of Oxford. Following a recent Masters in Economics and Finance at the University of Naples Federico II, Italy, he has just begun a PhD in Ecological Economics at the Uni- versity of Leeds, UK. J.Christopher Proctor studied Economics, History and Politics at the University of Tulsa before doing the EPOG Master’s program at Kingston University, London and Université Paris 13. He is currently an Associate in Pluralist Economics for oikos International. David Uwakwe became involved with Rethinking Economics while studying Political Economy at Kingston University, London. Since graduating, he has been working as a freelance journalist and is currently living in his native Dublin. Zach Ward-Perkins is a former PPE student at the University of Manchester and a co-founder of the Post-Crash Economics society. Zach is one of the co-authors of The Econocracy: The Perils of Leaving Economics to the Experts. Catriona Watson is a former PPE student, Head of Campaigns at Rethinking Econom- ics and co-founder of the Post-Crash Economics society. She is now studying for a post- graduate degree in Economics at Leeds University, UK. ‘The 2008 financial crisis and its continuing aftermaths have starkly revealed the limita- tions of the practice of intellectual “mono-cropping” in economics, that is, the near-total dominance by one approach to economics: Neo-classical economics. Leading the charge against this practice have been young economists from the Rethinking Economics move- ment. In this book, these young economists, rather than trying to replace one intellectual mono-cropping with another, provide a vision for a pluralist approach to economics. The volume, by presenting nine essays in which leading economists introduce the economic schools they represent, broadens our vision of economics and deepens our understanding of it. It is a highly relevant and enlightening contribution to a debate that will shape the future of the world economy as well as the way in which economics is taught and debated.’ Ha-Joon Chang, University of Cambridge, author of Economics: The User’s Guide ‘The members of Rethinking Economics haven’t just protested against the narrowness of the conventional economics curriculum, they have done something about it. This volume admirably addresses their need for excellent up-to-date expert accounts of a range of different approaches to economics, all with student input.’ Sheila Dow, Emeritus Professor, University of Stirling, UK ‘Economics students have been short-changed by degrees that teach only Neoclassical economics despite its failures before, during and after the crisis. This book provides a useful introduction to alternative voices in economics at a time when, though none of them has all the answers, they are each at least posing questions that the mainstream failed to even consider.’ Steve Keen, Kingston University London, UK ‘This book is much more than a rethink of economics, it’s a revolution in the economic landscape, democratizing theory and language for public benefit. This book builds a new corps of citizen economists and helps prevent economists-cum-pundits from pulling eso- teric fast ones on the public. It’s a must read for anyone wanting to challenge the eco- nomic system’s dysfunctional status quo and an essential guide for advocates of social, economic and environmental sustainability. For genuine progress to occur, new economic theories, language and tools are needed. This book answers that call.’ Michael Shank, New York University, USA ‘A timely and informative guide to competing schools of thought in economics. An excellent starting point for students looking for a broader economics education.’ Jo Michell, Senior Lecturer in Economics, UWE Bristol, UK ‘“Is there life beyond mainstream economics?”, you ask. Well, here is your answer: nine approaches, clearly explained by top specialists in each approach. This book produced by members of Rethinking Economics is warmly recommended.’ Victoria Chick, Emeritus Professor of Economics at University College London, UK Rethinking Economics An Introduction to Pluralist Economics Edited by Liliann Fischer, Joe Hasell, J.Christopher Proctor, David Uwakwe, Zach Ward-Perkins, Catriona Watson First published 2018 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2018 selection and editorial matter, Rethinking Economics; individual chapters, the contributors The right of Rethinking Economics to be identified as the author of the editorial material, and of the authors for their individual chapters, has been asserted in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Names: Proctor, J.Christopher, editor. Title: Rethinking economics : an introduction to pluralist economics / edited by J.Christopher Proctor, Liliann Fischer, Joe Hasell, David Uwakwe, Zach Ward-Perkins, Catriona Watson. Description: Abingdon, Oxon ; New York, NY : Routledge is an imprint of the Taylor & Francis Group, an Informa Business, [2017] | Includes bibliographical references and index. Identifiers: LCCN 2017020044| ISBN 9781138222670 (hbk) | ISBN 9781138222687 (pbk) | ISBN 9781315407265 (ebk) Subjects: LCSH: Schools of economics—Textbooks. Classification: LCC HB75 .R4477 2017 | DDC 330.15—dc23 LC record available at https://lccn.loc.gov/2017020044 ISBN: 978-1-138-22267-0 (hbk) ISBN: 978-1-138-22268-7 (pbk) ISBN: 978-1-315-40726-5 (ebk) Typeset in Bembo by Apex CoVantage, LLC Contents List of boxes and figures vii Contributor biographies viii Acknowledgments xi Foreword by Martin Wolf xiii Introduction 1 1 Post-Keynesian economics 6 Engelbert Stockhammer 2 Marxist economics 19 Ben Fine and Alfredo Saad-Filho 3 Austrian economics 33 Xavier Méra and Guido Hülsmann 4 Institutional economics 45 Geoffrey M. Hodgson 5 Feminist economics 60 Susan Himmelweit 6 Behavioural economics 76 Stephen Young 7 Complexity economics 91 Alan Kirman vi | Contents 8 Co-operative economics 107 Molly Scott Cato 9 Ecological economics 120 Clive L. Spash and Viviana Asara Epilogue: What is Rethinking Economics and how can you get involved? 133 Index 136 Boxes and figures Box 1 The three prongs of neoclassical economics 3 Figures 5.1 Value of household production relative to conventional GDP in 2008 (replacement cost estimates) 64 5.2 Changing social norms about mothers’ employment: UK 1991–1999 68 5.3 The “care diamond” 70 6.1 Prospect Theory 81 7.1 Segregation emerging from ‘non-discriminatory’ preferences 98 7.2 Segregation with different utility functions 99 Contributor biographies Post-Keynesian Economics Engelbert Stockhammer is Professor of Economics at Kingston University London and coordinator of the Political Economy Research Group (PERG). He has worked on Post-Keynesian Economics, financialisation, wage-led demand regimes and economic policy in Europe and is ranked among the top 5% of economists worldwide by Research Papers in Economics (RePEc). He has published numerous articles in international peer-refereed journals,
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