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The Programming Approach and the Dissolution of Economics

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The Programming Approach and the Dissolution of Economics 1 The programming approach and the dissolution of Economics By Franco Archibugi Summary Introduction 0.1. A question of epistemology 0.2. How the overturning of the approach is taking form 0.3. Goals and treatment of this book Part I. The critique to the positivist logic in the social sciences Chapter 1 How scientific are the social sciences? (The contribution of Gunnar Myrdal) 1.1. The reasoning ‘s starting point 1.2.The roots of the deterministic error 1.3.The positive, but misleading, conclusion by Ludwig von Mises, on the praxeological approach 1.4.The scientific impasse of the missed praxeological approach 1.5.The Myrdalian comparison between natural and social sciences 1.6. Unresolved implications of the differences between approaches 1.7. Incorrect emulation of the natural sciences 1.8. The “explicit-making” of values 1.9. The scientificity in Social Sciences Charter 2 Toward a new paradigm for the social science 2.1. Theories and facts 2.2. The “transversality” of the social sciences 2.3. The crucial logical point for any science 2.4. A “re-direction” in the “economic science” 2.5. Obsolete disciplinarity and the new role of the economist 2.6. From the inter-disciplinarity to the trans-disciplinarity: the “probleme-areas” 2.7. Beyond Myrdal Chapter 3 Planning and planning theory: the difficult heritage by Ragnar Frisch 3.1 Econometrics and planning 3.1.1. The oblivion of the “economic planning studies” 3.1.2. Econometrics or “playometrics?” 3.1.3. The econometrics analysis as function of planning 3.1.4. Frisch’s inward critique of the Western planning system. 2 3.2. A return to Frisch? 3.3. A general vision within which to frame the Frisch’s heritage 3.3.1. A better economic system against the egoistic ghost of the human nature 3.3.2. Economic planning and the “free market”: a useless bagarre in economics 3.4. A short excursus of Frischian scientific philosophy 3.4.1. The lures of unsolvable problems 3.4.2. The research of “ultimate reality” and the philosophy of chaos 3.5. An universal humanitarian ethics 3.6. An universal historic-schematic reconstruction of economics (according to Frisch) 3.7. Concepts quantification and reality modeling 3.8. The critical contribution from Wassily Leontief on the same subject 3.9. Towards a further Frisch’s “break-trough”: the end of economic theory? 3.10. The course of this book Chapter 4 Basic requirements for the programming approach 4.1. The basic logical setting 4.2. Thinking in real terms rather than in monetary terms 4.3. The “operational” character of planning 4-4. The question of the “objectives” and the “strategic” nature of planning 4.5. The “optimality” approach 4.6. Other general requirements for planning 4.6.1. Distinction between “selection problem” and “implementation” problem” 4.6.2. Conflicts among objectives 4.6.3. The qualitative assessment question 4.7. Other essential recommendations for a correct approach of planning 4.7.1. The essential acknowledgment of the “human factor” 4.7.2. The Pareto’ “optimality” 4.8. The various phases of the planning work Chapter 5 The “programming approach” 5.1. Principal characters of the Frisch’s “programming approach” 5.2. The programming approach implications 5.3. The programming approach limitations 5.4. The programming approach in respect of the other “pre-programming” approaches 5.4.1 The saving rate of growth question 5.4.2. The GNP rate of growth question 5.4.3. The “balanced growth” question 5.5. The accounting instrument to implement a programming approach 5.6. The steps towards a “true” programming approach 3 5.6.1. The “instrument ad hoc” approach 5.6.2. The “feasible instrument” approach 5.6.3. The “half-logic” inconsistencies 5.6.4. The “optimisation” approach 5.7. The political preference function and its instruments Charter 6 The political preference function 6.1. A new cooperation between politicians and econometricians 6.2. The institutional and political aspects of the political preference function 6.3. Some dissents about the formulation of political preference function 6.3.1. The approach of separation between the selection phase and the implementation phase (Frisch) 6.3.2. The approach by fixed objectives (Tinbergen) 6.3.3. Many “preference systems”? 6.4. The procedural aspects 6.5. The construction of the political preference function? 6.6. The formalization of the political preferences 6.7. Further steps in our analysis Chapter 7 The programming approach impact on the socio-economic modelling 7.1. The quantitative modelling of phenomena 7.2. The impact of programming approach on the modelling 7.2.1. The importance of the “decisional parameters” 7.2.2. Typological catalogue from the descriptive models to the political preference formalization 7.3. Some further technical considerations on the selection (decisional) models 7.3.1. The aggregation level 7.3.2. The “pyramidation problem” in the decisional structure 7.3.3. About the linearity or non-linearity in the selection models 7.3.4. The variable’s choice in the selection process 7.3.5. The structure of the economy and the formulation of the political preference in the decision models 7.4.Deterministic “relations” and deterministic “bounds” as mathematical instruments 7.4.1. On the stochastic viewpoint 7.4.2. On the “definitional” relations 7.4.3. On the “technical” relations 7.4.4. On the “behavioural” relations 7.5. The political equations and the bounds 7.5.1. The “definitional” bounds 7.5.2. The “capacity” bounds 7.5.3. “External” bounds 7.5.4. “Formalization” bounds 4 7.5.5. “Bluntness” bounds 7.5.6. Political and humanitarian bound (part of the preferences). 7.6. Other technical-mathematical issues for the preference function use in the decisional models 7.7. Using mathematical methods as instrument for “problem solving”, in selection stage at National(and Supranational, if the case) scale 7.8. Some conclusions Chapter 8 The vice of “implicit theorizing” and the abuse of “statistic indirect inference” (according Wassily Leontief) 8.1. The neglected Leontief’s critique of “implicit theorizing” 8.2. The wrong logic of the “implicit theorizing” 8.3. The disciplinary implications of Leontief’s critique 8.4. The “implicit theorizing” 8.5. Benefits and risks about mathematics in the economics progresses 8.6. The poor outcome of the economic theorizing, according Leontief 8.7. The futile use of modelling 8.8. Academic responsability in self-referencing approach and in its practice 8.9. For the research of a “analytical system” and a “steady flow of new data” 8.10. From “casual empiricism” to “the analytical system” 8.11. For coordinated, uniform classification system 8.12. Planning-and policy-centred systemic analysis Part II. The “Planning Accounting Framework” and the new basis of policy management Chapter 9 The “Planning Accounting Frame” (PAF) as the new instrument of the policy management 9.1. The PAF as “reference”: what it is? 9.2. The PAF and the models 9.2.1. Temporal flexibility of the PAF 9.2.2. The permanent monitoring (ex ante) with the actual reality (ex post) 9.2.3. The necessary threshold of dis-aggregation 9.3. The separation problem in configurating the PAF optimal selection and the problem of implement such configuration 9.4. The phenomena to be included and defined quantitatively in the PAF 9.4.1. The basic socio-economic phenomena of the PAF 9.4.2.The numeric quantification of the economic interflows matrix 9.5. The investment Framework 9.6. Prices as implementation instruments of the PAF 9.7. The enlargement of the information system of the PAF to the whole of “non- economic” ambit 5 Chapter 10 The spatial dimension of the PAF 10.1. The spatial dimension of the PAF (and of the model) 10.2. A systemic vision of the spatial interdependences 10.3. The structure of the interregional flows of goods, energy and transport 10.4.The optimal selection of floes between centres 10.5. The possibile semplification in terms of monetary values and the decisional model for a “single region” 10.6. The systemic space and the “pyramidation problem” Chapter 11 A system of models for the PAF elaboration 11.1. Also “decisional” models need coordination 11.2. Towards the building of a system of models for planning 11.3. The “System of models” and alternative (future) scenarios proposed 11.4. The articulation of the System of models” 11.4.1. The Central Model (IOM) 11.4.2. The Model of Technology 11.4.3. The Import-Export Model (IM-EX) 11.4.5. The primary production Factors Models 11.4.6. Final demand and social indicators 11.4.7. Regional and institutional articulation 11.4.8. Optimisation and sub-optimisation (Mobile and fixed objectives) 11.4.9. The Labour supply Model 11.4.10. The Territory and Environment Model (TEM) 11.4.11. Final use versus primary availability 11.5. The utilization of the System of Model and their quantification 11.5.1. The utilizations of “Transitional Tables” 11.5.2.The building and the Utilization/Quantification of models of final resources 11.5.3. The evolution of the socio-demographic factors 11.5.4. The evaluation of the territory (or environment) supply. 11.5.5. The evaluation of the labour-supply 11.6. Various iterations in the utilization of models 11.7. General characteristics and limits of the described system of models 11.7.1. The relative prices system 11.7.2. The income distribution system 11.7.3. The financial flows system 11.8. Further limits and warnings about the PAF Chapter 12 The political and practical use of the PAF 12.1.
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