The Palgrave Handbook of Political Economy Edited by Ivano Cardinale · Roberto Scazzieri The Palgrave Handbook of Political Economy Ivano Cardinale · Roberto Scazzieri Editors The Palgrave Handbook of Political Economy Editors Ivano Cardinale Goldsmiths, University of London London, UK Roberto Scazzieri Department of Economics University of Bologna Bologna, Italy and National Lincei Academy Rome, Italy and Clare Hall and Gonville and Caius College Cambridge, UK ISBN 978-1-137-44253-6 ISBN 978-1-137-44254-3  (eBook) https://doi.org/10.1057/978-1-137-44254-3 Library of Congress Control Number: 2018936587 © The Editor(s) (if applicable) and The Author(s) 2018 The author(s) has/have asserted their right(s) to be identified as the author(s) of this work in accordance with the Copyright, Designs and Patents Act 1988 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover credit: Granger Historical Picture Archive/Alamy Stock Photo Printed on acid-free paper This Palgrave Macmillan imprint is published by the registered company Macmillan Publishers Ltd part of Springer Nature The registered company address is: The Campus, Crinan Street, London, N1 9XW, United Kingdom Preface The aim of this Handbook is to outline the field of political economy as the domain of the interdependencies between the objectives of individuals and groups within the polity and the internally structured constraints, posed by the material sphere, to the attainment of those objectives This Handbook transcends the received dichotomy between political economy as an application of rational choice theory or as the study of the causes of material welfare, outlining a broader field of study that encompasses those traditions The Handbook is divided into three parts The first part (‘Foundations’) addresses the areas of social life underlying the provision of material needs through social coordination The second part (‘Research Themes’) ­reassesses the fields of interaction between the economy and the polity on which political economy is built The third part (‘Ways Ahead’) outlines a ­theory of political economy that brings together means-ends action and the interdependencies underlying the provision of needs The Handbook aims to provide new categories of analysis, which are grounded in the traditions of political economy and highlight its standing as a central component of social science London, UK Bologna, Italy Ivano Cardinale Roberto Scazzieri v Acknowledgements We wish to express our gratitude to the institutions that have provided the academic freedom and intellectual environment without which this volume would not have been possible Ivano Cardinale is grateful to Goldsmiths, University of London, and to Emmanuel College, Cambridge; Roberto Scazzieri to the University of Bologna, the National Lincei Academy, Rome, and to Clare Hall and Gonville and Caius College, Cambridge We are also grateful to the Cambridge Research Seminar in Political Economy at Emmanuel College and the Cambridge Seminar in the History of Economic Analysis at Clare Hall (CAMHIST) for hosting meetings that have ­contributed to shaping this Handbook Finally, and most importantly, we are grateful to the colleagues who have shared our objective to reassess the field of political economy and envision its future directions vii Contents Political Economy: Outlining a Field Ivano Cardinale and Roberto Scazzieri Part I  Foundations The Fields of Policy-Making 29 Vincent Dubois Political Economy and the Public Sphere 53 Jeremy Adelman and Jessica Mack Politics and Economics of Markets 91 Craig Muldrew Historical Political Economy 133 Sophus A Reinert Classical Political Economy 171 Ivano Cardinale Part II  Research Themes Political Economy of Economic Theory 193 Roberto Scazzieri ix x     Contents Political Economy of Economic Value 235 Ajit Sinha Constitutional Political Economy 259 Viktor J Vanberg 10 Political Economy of Civil Society 289 Adrian Pabst 11 Industrial Structure and Political Outcomes: The Case of the 2016 US Presidential Election 333 Thomas Ferguson, Paul Jorgensen and Jie Chen 12 Economic Policy 441 Bruno Amable 13 The Political Economy of Industry 463 Patrizio Bianchi and Sandrine Labory 14 Political Economy of Liquidity: The European Economic and Monetary Union 489 Rainer Masera 15 Modern Fiscal Sociology 529 D’Maris Coffman 16 Comparative Political Economy 543 Robert Boyer 17 International Political Economy 605 Martin Daunton 18 Political Economy of Resources, Technologies, and Rent 657 Alberto Quadrio-Curzio and Fausta Pellizzari 19 Political Economy of Structural Change 705 Michael Landesmann Contents     xi 20 Political Economy of Social Transformation: China’s Road in a Global Perspective 749 Wang Hui 21 Structural Political Economy 769 Ivano Cardinale Part III  Ways Ahead 22 Political Economy as Theory of Society 787 Ivano Cardinale and Roberto Scazzieri Index 817 Notes on Contributors Jeremy Adelman is Henry Charles Lea Professor of History, Princeton University, Princeton and Director of the Global History Laboratory at Princeton University His research has concentrated on economic and social transformation at the world scale, and on the asymmetries between centre and periphery that this process entailed This research programme has taken him to investigate the patterns of agricultural development in Argentina and Canada at the turn of the twentieth century, and the constitutional and legal developments that accompanied the formation of a modern commercial republic in Argentina In his later research, he investigated the wider issue of the political economy of State formation in the Iberian Atlantic and the intellectual contribution of Albert Hirschman to the analysis of the triadic relationship between economic development, political constitutionalism, and intellectual modernity He published Frontier Development: Land, Labour, and Capital on the Wheatlands of Argentina and Canada (1890–1914) (Oxford, Clarendon Press, 1994), Republic of Capital: Buenos Aires and the Legal Transformation of the Atlantic World (Stanford (CA), Stanford University Press, 1999), Sovereignty and Revolution in the Iberian Atlantic (Princeton (NJ), Princeton University Press, 2006), The Odyssey of Albert O Hirschman (Princeton (NJ), Princeton University Press, 2013) He also edited Essays in Argentine Labour History, 1870–1930 (Basingstoke and London, Macmillan, 1992), and The Essential Hirschman, with an introduction by Jeremy Adelman; afterword by Emma Rothschild and Amartya Sen (Princeton, NJ, and Oxford, Princeton University Press, 2013) xiii 814     I Cardinale and R Scazzieri Quesnay, F 1972 [1759] Quesnay’s Tableau Économique, ed M Kuczynski and R.L Meek London and New York: Macmillan A.M Kelley for the Royal Economic Society and the American Economic Association Quesnay, F 2006 [1758] Explanation of the Economical Table In Early Economic Thought Selected Economic Writings from Aristotle to Hume, ed A.E Monroe, 341–348 Mineola, NY: Dover Ricardo, D 1817 On the Principles of Political Economy and Taxation London: Murray Robbins, L 1984 [1932] An Essay on the Nature and Significance of Economic Science London and Basingstoke: Macmillan Robbins, L 1933 Production (Theory Definition of the Term) In Encyclopaedia of the Social Sciences, vol XI, ed E.R.A Seligman, 462–467 New York: Macmillan Scazzieri, R 1993 Actions, Processes and Economic Theory In The Makers of Modern Economics, vol I, ed A Heertje, 84–114 New York, London, Toronto, etc.: Harvester Wheatsheaf Scazzieri, R 1998 Hierarchies of Production Activities and Decomposition of Structural Change: An Essay in the Theory of Economic History In Political Economics in Retrospect Essays in Memory of Adolph Lowe, ed H Hagemann and H.D Kurz, 195–207 Cheltenham, UK and Northampton, US: Elgar Scazzieri, R 2012 The Political Economy of Production of Commodities by Means of Commodities: A Comment on Pasinetti and Sraffa Cambridge Journal of Economics (November): 1315–1322 Scazzieri, R 2018 Political Economy of Economic Theory In The Palgrave Handbook of Political Economy, ed I Cardinale and R Scazzieri London: Palgrave Macmillan Scazzieri, R., M Baranzini, and C Rotondi 2015 Resources, Scarcities and Rents: Technological Interdependence and the Dynamics of Socio-economic Structures In Resources, Production and Structural Dynamics, ed M Baranzini, C Rotondi, and R Scazzieri, 427–484 Cambridge: Cambridge University Press Serra, A 2011 [1613] A Short Treatise on the Wealth and Poverty of Nations, trans by Jonathan Hunt, ed and with an introduction by Sophus A Reinert London and New York: Anthem Press (Original title: Breve trattato delle cause che possono far abbondare li regni d’oro e argento dovenon sono miniere, applicazione al Regno di Napoli, Naples, Scorriggio) Shackle, G.L.S 1949 Expectation in Economics Cambridge: Cambridge University Press Shackle, G.L.S 1961 Decision, Order, and Time in Human Affairs Cambridge: Cambridge University Press Sidgwick, H 1883 The Principles of Political Economy London: Macmillan Sismondi, J.-C.-L 1819 Nouveaux principes d’économie politique, ou de la richesse dans ses rapports avec la population Paris: Delaunay 22  Political Economy as Theory of Society     815 Smith, A 1776 An Inquiry into the Nature and Causes of the Wealth of Nations Edinburgh and London: Strahan and Cadell Sraffa, P 1960 Production of Commodities by Means of Commodities Prelude to a Critique of Economic Theory Cambridge: Cambridge University Press Steuart, J 1966 [1767] An Inquiry into the Principles of Political Economy Edinburgh and London: Oliver and Boyd for the Scottish Economic Society Stone, R., and A Brown 1962 A Computable Model for Economic Growth Cambridge: Cambridge Growth Project Strumilin, S 1963 [1927] Sur les méthodes d’établissement d’une balance de l’économie nationale et notamment du revenue capital Etudes économiques, n 145 von Mises, L 1949 [1940] Human Action A Treatise on Economics London, Edinburgh and Glasgow: William Hodge von Mises, L 1960 [1933] The Epistemological Problems of Economics Princeton: van Nostrand von Neumann, J 1945–46 [1935–37] A Model of General Equilibrium The Review of Economic Studies 13 (1): 1–9 Walras, L 1874–77 Eléments d’économie politique pure Lausanne: Corbaz Walras, L 1954 [1874–77] Elements of Pure Economics, or The Theory of Social Wealth, trans William Jaffé, published for the American Economic Association and the Royal Economic Society London: G Allen and Unwin; English translation of Walras (1874–77) Wicksteed, P.H 1933 [1910] The Common Sense of Political Economy London: Routledge Index A actions 1, 206, 769 and dispositions 3–9, 14, 19, 21–22, 33–34, 63, 96, 206–207, 211, 317–319, 323, 325, 770, 776, 778–779, 781 and division of labour 1–2, 21, 779–781, 808–809 descriptive duality of 792 in political economy 20–22, 70, 96, 272–273, 364–365, 779, 787, 800 of the means-ends type 20–21, 770, 776–781, 792–796, 808 versus structures 3, 21–22, 221, 261–262, 266–267, 270, 273– 275, 280, 292, 303–305, 316, 455, 480–481, 495, 500, 617, 665, 711, 769–770, 775–781, 791–792, 795 Aftalion, A 721, 728 agency 2, 8, 21, 34, 310, 315, 770, 775–779 and division of labour 2, 8, 21, 770, 775 and material interdependence 3, 8, 20–21, 176, 203, 214, 217, 467, 662, 770, 797, 806 mutual shaping of agency and interdependence 3, 8, 21–22 vs structure 20–21, 770, 775–780, 808–809 aggregation 3–4, 14, 16–17, 186–187, 195, 236, 256, 310, 458, 466– 467, 476, 493, 504, 513, 539, 686, 738, 770, 772, 774–775, 777, 808 at intermediate level 14, 195, 539, 552 levels of 3–4 Aglietta, M 549, 560, 590 agreement 3, 62, 65, 269, 273–281, 295, 300, 309, 319–321, 324, 337, 617 Allais, M 208, 221, 803, 805, 807 allocation 13, 17, 29, 32, 41, 180, 195–196, 207–211, 217–225, 308, 315, 321, 442, 470, 472, 479, 573, 671–672, 716, 735, 789, 791, 793–794, 796–798, 803, 805–807 © The Editor(s) (if applicable) and The Author(s) 2018 I Cardinale and R Scazzieri (eds.), The Palgrave Handbook of Political Economy, https://doi.org/10.1057/978-1-137-44254-3 817 818     Index Arrow, K 2, 6, 136, 174, 219, 221, 222, 262, 791, 795, 803 association 58–59, 61, 82, 211, 269–273, 280, 289–298, 301– 302, 308–309, 311, 313–315, 318–321, 325, 573 autonomy 21, 30, 36, 47–48, 58, 60, 62, 65–66, 72, 292, 304–305, 312, 552, 555, 621, 636, 645, 752–755, 759–764, 808–809 autonomy, of a field 30, 36, 47–48 average commodity 248–249, 257 B Babbage, C 3, 470, 712, 717 Babbage Law and proportionality conditions 3, 470, 712, 717 Bacharach, M.O.L 229, 795 Bacon, F 104 Baranzini, M xxv, 2, 200, 214, 660, 710, 791, 803 Baumol, W 706, 709 Becattini, G 476 Bentham, J 53, 56, 94, 127–128 Böhm-Bawerk, E von 721 Boisguillebert, P de 5, 801, 803, 806 Botero, G 4, 95, 193 Bouniatian, M 721 Bourdieu, P xviii, 30, 32–40, 42–43, 47–48, 770, 778, 808 Brown, J.A.C 725, 804–805 Buchanan, J xxvi, 218, 259–283, 318–319 bureaucracy 38 Burke, E 290, 309, 311–313 C Cannan, E 21, 788 capital controls 607–636 capital movements 18, 606, 608, 621, 624–625, 627–636, 646 Cassel, G 791 catallactics (Whately, Hicks) 13, 194–200, 205–210, 271, 282, 790–794 and wealth as a fund 794 causal paths (in the economy) 5–6 causality 215, 414, 533, 569–570, 800 vs causation 533, 800 causation 256–257, 533 vs causality 533–534, 800 civil society xxii, 14–15, 57–59, 66, 79, 289–325, 365, 480, 593 civic (Doria, Genovesi, Ferguson, Constant) 14–15, 290, 309–310 commercial (Locke, Federalist writers) 14–15, 290, 303–304, 318 contractual (Hobbes, Rousseau) 14–15, 107, 290, 300–303, 312–313, 318, 532 moral (Hume, Smith) 14, 263, 466 classical political economy xxii, 2, 5–6, 11–12, 171–187, 206, 217–218, 225, 260, 714, 720–721, 772, 804 Coase, R 456 Cobden, R 218, 637 cognition, structures of 778–780, 808–809 and actors’ habitus 35, 778–780, 808–809 and the division of labour 21, 292–293, 463–468, 470, 479, 717, 721, 778–780, 808–809 and the mutual constitution of actors and material constraints 778–780 collective choice 15, 32, 275, 281 colonialism 630, 634, 642 commercial society xxii, 55–56, 61, 290, 305–308, 316–317, 537 Index    819 competition xviii, xxvi, 12, 15, 18, 20, 35, 37–39, 43–44, 60, 62, 91– 92, 94, 97–98, 103–104, 109, 115, 123–126, 144, 149, 263, 267, 304–306, 365, 380, 398, 400, 441–442, 448, 450, 455, 464–477, 481, 501, 538, 544, 547–552, 558–564, 567–569, 572–574, 577–578, 580, 582, 584, 595–596, 614, 623, 640, 648, 720, 736, 791 complementarities xiv, 4, 515, 570, 583, 807 compound technologies 19, 684, 686–690, 699 constitutional political economy xxvi, 14, 259–283, 318–322 constitutionalism xiii, 13–15, 263, 766 constraints v, xvi, xxiii, 2–5, 8–9, 12, 14, 20–21, 33, 61, 63, 171, 183, 199, 205, 207–209, 211, 213–216, 221, 223, 254, 261, 264, 267, 269–273, 315, 318, 322–323, 457, 480, 492, 495, 514, 552, 570, 592, 596, 605, 664–665, 670, 678, 684, 687, 691, 699–700, 707, 713, 721–722, 724, 728, 730–731, 736, 739–741, 769–771, 774, 776–780, 789, 793–798, 801, 806–809 and the material sphere v, 2, 4, 12, 21–22, 774, 796 internal differentiation of 2, 4, 21 context-dependent rationality 315, 457, 552–555, 595, 808 contractarianism 280 corn laws 11, 93–94, 123, 125–126, 637 crisis xv, xx, 17, 64, 74–78, 126, 136–142, 146–147, 336, 378– 379, 444–455, 458, 473–474, 476, 493–495, 499, 501–502, 505, 511–512, 530, 535–537, 544, 546, 552, 554–556, 561, 567–568, 583, 585, 587–588, 591–592, 594–597, 622–624, 638, 644, 647, 712, 720, 743, 749–755, 761–762, 765–766 critical policy sociology xviii–xix, 9–10, 30, 33 D Davidson, D 792 Debreu, G 2, 221, 791, 803 decreasing returns 181, 183, 212–213, 224, 587, 712, 718, 721–722, 727–730, 803 de Finetti, B 207–210, 219–220, 791, 795, 803, 805, 807 democracy xix, 77, 80–81, 157, 406, 457, 545, 557, 585, 606, 647, 754, 756, 758, 760, 763–766 Democratic Party (US) 362, 413, 430, 639 development xiii, xiv, xvii, xx, xxiii, 10–11, 17, 57, 65, 70, 79–83, 85–86, 141, 144–145, 148, 150– 152, 177, 179, 185, 198–199, 203, 464, 467, 478–481, 485, 574–575, 578, 582, 585–586, 597, 631, 633–635, 641, 643, 665–667, 714–717, 724, 750–756, 758–763, 772–773 development modes 585–586 de Viti de Marco, A 278 diversity of capitalism xiv, 548, 552, 566–584, 593 division of labour 1–4, 16, 20–21, 632, 717, 721, 769–772, 774–781, 797, 803, 805, 808–809 dual economy, model of 370, 372–374, 378, 380, 404, 411, 429 Durkheim, E 772 dynamic scarcity 660–666 820     Index E economic analysis 78, 135, 139, 155, 186, 247, 471, 532–533, 538, 543–544, 659, 680, 712, 717, 723, 735, 741, 772–773, 781, 803 economic equilibrium 7, 446, 473, 530 vs social equilibrium 214–215, 530 economic nationalism 18, 338, 422, 605, 607–608, 644, 647 economic order 14, 80, 264, 303–304, 316 and economic constitution 14, 263, 322 economic paradoxes 490–496 economic theory and efficiency condition(s) 210, 224 and means-ends actions v, 21, 318, 325, 770, 776, 778–781, 793–796, 807–809 and the framing of policy 6, 9, 44, 534 and the internal structure of constraints 21, 779, 793, 795, 803 and the ‘materialist’ view (Cannan) 21, 788–789 and the organization of the polity 1–2, 16, 33, 80, 83, 194, 263, 265, 269–270, 272, 279–280, 365 and the ‘scarcity’ view (Robbins) 21–22, 195, 788–789, 794 and viability condition(s) 13, 201, 204, 210, 212–213, 215, 217, 223, 719–720, 737, 773–774, 804 efficiency condition(s) 210, 224 Eichengreen, B 154, 156–157, 611–615, 617, 619, 643–644 embedding 20, 290–291, 762 employment 2–3, 5–8, 11, 20, 64, 70, 74, 92, 94–95, 98, 100–102, 105, 111, 114–115, 117, 122–123, 125–126, 149, 177, 185–186, 201, 211, 215, 220, 255, 261, 335–336, 371, 411, 427, 442–448, 452, 455, 458, 475, 500–501, 507, 510, 515, 543–544, 547–550, 556, 561, 563–568, 573, 575, 589, 592, 605–609, 612, 616–619, 621, 627–628, 631–632, 641, 645, 647, 680, 693, 697–698, 700, 705, 707, 710–711, 714–716, 719, 734, 743, 771, 794, 802, 807 equality 20, 66, 81, 92, 111, 147, 220, 225, 310–312, 314, 335, 372, 375, 412, 450–455, 545, 584–586, 645–647, 666, 753, 757–758, 760–764 and distributive justice 20, 107, 762 and ‘equality of all things’ (Zhang Taiyan) 20, 762 and equality of opportunity 20, 220, 761–762 formal 20, 762 of the diversity type 20, 762–763 European Monetary Union (EMU) 489–521, 743 exchange rates 105, 491, 564, 592, 594, 606–628, 635–636 extent of the market 177, 465–468, 476, 478, 480, 484 F fallacy of composition 16–17, 490, 493, 495, 505–506 Ferguson, A 290, 304–306, 316–317, 714 field v, xviii, 1–2, 4, 9–10, 21–22, 29–48, 57, 61–62, 72, 211, 224, 315, 320–323, 534, 555–556, 735, 780–781, 796, 808 autonomy of 30, 36, 47–48 Index    821 field sociology 35, 36, 41 field theory 30, 34, 37–38, 40, 42, 47 final consumer goods 6, 803 finance-led regime 564–566, 568, 589 financial stability 17, 495, 500–503, 505, 514, 552, 606 and prudential approach to liquidity policy xxi, 17, 266, 279, 489, 495, 499–506, 512–514, 521 fiscal and monetary policy mix 494, 505, 515 fiscal sociology xvi, 17, 529–539 and fiscal mixes 17 and incidence of taxation across social groups 17 Italian School of 17, 529, 532, 538 ‘force analysis’ (Lowe) 807 Fordism 62, 465, 482, 560–561, 565, 596 free trade 11, 18, 91–94, 97, 104–105, 109–110, 115, 120, 122–128, 137, 140, 143, 145, 212, 218, 224–226, 335, 337–338, 381, 400–401, 405, 543, 550, 574, 608, 615, 636–645, 648, 801 Friedman, M 152, 157, 490, 626–628, 636 Fukuyama, F 764–765 G Galiani, F 11, 121, 139–140, 149 Garegnani, P 183 Genovesi, A 15, 143, 194, 290, 309–310 Georgescu-Roegen, N 471, 717 globalization xxiv, 56–57, 70, 86, 142–147, 156, 335, 371, 376, 544–545, 552, 568, 581–582, 584–586, 592, 594, 597, 606, 645, 647, 749, 753, 760, 763–764 Goodhart, C 500, 503 Goodwin, R.M 590, 733–734, 737–739 growth xiv, xxiii, xxv, 2, 11–12, 16, 19, 45, 65, 81, 83, 92, 94, 98, 107, 110–111, 116, 118, 126–127, 174, 179–181, 183, 186, 198–199, 211–214, 235–236, 241–242, 256, 376, 378, 429, 445, 455, 458, 474, 479–481, 485, 492, 500, 502, 505–510, 513–517, 531, 543–545, 555, 561, 564, 567–568, 574–580, 585–588, 590, 592, 595–596, 612, 623–624, 631–634, 641, 659–663, 666–674, 678, 680, 684–694, 698–701, 709, 711–713, 716–730, 733–738, 740, 743, 750, 752–756, 771, 774, 793–795, 801, 806–807 H habitus (Bourdieu) 35, 778–780, 808–809 and the mutual constitution of constraints and objectives 21, 779, 808–809 and the structures of cognition and action 778–780, 808–809 Hall, P 57, 78, 569–570, 575, 580 Hamilton, A 147, 290, 304 Hamilton, W.H 530 Harrod, R.F 659, 669–670 Hayek, F.A von xxvi, 6, 8, 76, 138, 154, 218–219, 222, 262–263, 266–267, 316, 721, 728, 793 hegemonic bloc 564–566, 588, 596 hermeneutics 532 Hicks, J.R xxi, 2, 7, 172, 174, 187, 196–198, 200, 217, 219, 221, 222, 317, 320, 490, 518–519, 561, 601, 672–673, 709, 725, 727, 739, 774, 781, 789–790, 793, 803 822     Index Hildenbrand, W 793 Hirschman, A xiii, 56, 63, 72–73, 148, 150, 177, 317, 324, 375, 633, 773 Hobson, J.A 70–72, 80, 629, 637 horizontal integration 19, 299, 308, 320, 710, 712, 721, 726, 771, 803–805 Huntington, S 83 hybridization 580, 586–588, 591 I imperfect information, and policy decisions imperialism 10, 62, 65, 68, 71, 140, 623, 631 income distribution xxiii, 13, 182, 185, 214, 242, 254, 257, 261, 449–455, 547, 567, 587, 657–661, 670–674, 678, 682–685, 693–694, 699–701, 711–713, 719, 721, 723, 730, 738, 742–743, 807 increasing returns 136, 177, 179, 181, 183, 212–213, 224, 469, 471, 473, 544, 553, 561, 577, 712, 722, 799–801 individualism 75, 128, 268–269, 315, 319 industrial policy 94, 99, 485, 538 industry 3, 5, 11, 16, 80–81, 85, 92–103, 110–116, 120–121, 123, 126, 144, 147, 150, 172– 173, 176, 179, 186, 196–198, 212, 248, 251–252, 257, 314, 337, 347, 365–366, 370–372, 379, 381–398, 403, 407–410, 417–420, 425–427, 463–485, 516, 623, 629, 632, 636, 640, 667–669, 710, 724–728, 730, 759, 789–791, 795, 804–805 inequality regimes 586 information 5–6, 56, 61, 64–65, 85, 152, 221, 254, 275, 281, 345, 349, 353–355, 365–366, 372, 442, 490, 520, 569, 592 institutional complementarity 570–571 institutional forms 171, 183, 273, 481, 547–552, 555, 560–561, 563, 565–569, 573, 579, 582, 588, 590, 592, 595–596 institutionalism 30, 47, 530 interdependence 2, 4–5, 8, 17, 19, 56, 63, 68, 71, 85, 194–197, 200, 203, 205–206, 225, 269, 302, 323, 325, 469, 504, 515, 521, 538, 553, 559–560, 584, 597, 693, 699, 708, 716, 724, 742, 762, 793, 796–797, 799–801, 804–806 and classical political economy 5–6 and cooperation vs conflict 3, 17, 777 and horizontal integration of activities 19, 299, 308, 320, 710, 712, 721, 726, 771, 803–805 and market coordination 10, 63 and moving social structures 806 and national income magnitudes 805 and proportionality conditions 3, 5, 7, 19, 200–202, 211–212, 217, 223, 470–471, 771, 788, 794–795, 797, 801–804, 807, 515 and relationships between social groups 13–14, 16, 205, 208, 210, 211–212, 217, 222–223, 557, 711, 713, 719–721, 732, 739, 742, 797, 801, 805 and systemic interest 773–774, 777 and vertical integration of activities 184, 215, 475, 483, 710 interest, spheres of 15 Index    823 intermediary institutions 289–291, 294, 298–301, 309–314, 317, 320, 322, 325 intermediate goods 6, 777 international trade xx, 11, 61, 99, 116, 149, 156, 236, 376, 543, 549, 560, 564, 586, 594, 597, 605, 608, 631, 636, 641–642, 645, 717, 732, 801 investment theory of parties 15, 365 K Kahneman, D 795 Kaldor, N 219, 222, 659, 670 Kalecki, M 443–447 Keynes, J.M 6–8, 56, 74–75, 78–79, 142, 146, 152, 155, 181, 185– 186, 214–215, 473, 490, 493, 517, 560, 616–618, 621–622, 790, 795 Knight, F.H 76, 260–261, 265–266, 270, 278, 795 Kotarbińsky, T 792 Kuznets, S 659, 666–667, 738 L labour commanded 178 or command of labour 238–240, 242 laissez faire 11, 76, 119, 134, 137–139, 143, 153, 212, 218, 444 legal vs economic incidence of taxation 533–534 and back shifting 533–534 and forward shifting 533–534 Leontief, W.W 2, 183, 203–204, 659, 667–671, 674, 686, 723, 725, 771–772, 795, 804–806 liberalism 10, 41, 48, 55–56, 59, 65– 66, 72, 86, 120, 153, 532–533, 558, 749–750, 752–753 Lipsius, J 299, 797 liquidity, provision of xvi, xxi, 16–17, 217, 489–521, 622–623, 739 Lowe, A 7–8, 218, 709, 727, 739, 771, 774, 807 Lucas, R.E 518, 558 Luxemburg, R 71, 720, 728 M macro analysis 504, 546, 793 macrodynamic equilibrium condition(s) 7–8, 547, 709 and the composition of aggregates (Pasinetti) 7, 705 macrodynamics and structural changes (Pasinetti, Solow) 7–8 macroeconomic theory 584, 596, 669 macro-prudential policies 489, 495, 499–506, 512–514, 521 manufacturing regime xiv, 16, 465 and organization of power in society 16, 485 market economy 10–11, 81, 205, 218– 219, 221, 499, 510, 547–549, 558–560, 591, 641, 757, 793 market integration 10, 54, 57, 61–66, 72, 81, 118 market power xiv, 16, 60, 290, 314, 466, 468, 474, 547, 553, 735 and distribution of entitlements 16, 401, 480–481 and political power 16, 40, 298, 379, 445, 456, 463–464, 468, 544, 554, 559, 576, 592, 635 and productive structure 16, 214, 473, 775 markets, and interdependence 8, 10, 63, 206 Marshall, A 199, 315, 472–473, 476, 479, 483, 730, 736 824     Index Marx, K xxv, 13, 62, 66, 186, 202, 214, 236, 247–249, 252, 257, 469–470, 560, 634, 712, 717, 719–721, 742, 790, 795, 802–804 material interdependence v, xxiii, 2–4, 8, 15, 19, 194, 200–210, 214, 217, 293, 295, 769, 774, 776, 780, 793 and agency xvi, 8, 20–22, 34, 770, 775 mutual shaping of material interdependence and agency 8, 20–22 Meadows, D.H 668 means-ends reasoning and dispositional activity 21, 776, 794–795 and efficiency 13, 210–211, 219, 224–225, 275, 478–479, 576 and objective conditions 3, 792–795 and types of interdependence 19 and viability 2–3, 7, 21–22, 211, 215–216, 223–224, 794, 796, 807 medium-term analysis xxi, 17, 202, 493, 499, 504–505, 513, 515, 573, 732 Menger, C 142, 793 Mercantilism 59, 99–100, 106, 122, 401 Mercier de la Rivière, P.P 794 meso analysis 2, 14, 195, 539, 552, 596, 709 migration 18, 35, 40, 46, 110, 338, 372, 399, 549, 552, 605, 608–609, 632, 645–648 Mill, J.S 10, 56, 58, 63, 66, 76, 136–137, 470, 472 Mises, L von 128, 207, 218, 222, 795 modernisation 584, 634 Modigliani, F 474, 495 monetary policy xvi, 1, 99, 217, 446–449, 492, 494, 496, 500, 502, 505–506, 513–516, 561, 563–564, 567, 573, 592, 596, 606–608, 610, 612, 614, 618– 622, 624–625, 628–629, 636 monopoly 103–105, 109, 115, 124–125, 178, 298, 307, 314, 372, 473, 576, 751, 765 Montchréstien, A de 4–5, 95–98, 100, 102, 104, 107, 120, 193, 796 multilateralism 81–82, 381, 400, 606, 608, 636–637, 641, 645, 647 multi-layered social connections 1, Mun, T 105–106, 111, 193 Mundell, R 505, 592, 608 Myrdal, G 145, 148, 151–152, 224 N networks 34, 56, 66, 343, 349, 351, 398, 465, 469, 475–477, 482–483, 496–497, 558, 625 Neumann, J von 183, 659, 669–670, 686, 688, 708, 722–724, 737– 738, 771–772, 793–795, 807 Niphus, A 796 non-Marxist structuralism 534 North, D.C 218, 315, 322, 538 Nurkse, R 621, 632–633 O objectives v, xxiii, 1–4, 6–9, 11–15, 21, 205, 207–208, 210–211, 215–216, 219–220, 222–224, 265, 307, 317–319, 441, 499, 504, 509, 513, 549, 552–553, 563, 575–576, 624, 628, 761, 769–770, 774, 776, 780, 787, 789, 793–796, 806, 808 Index    825 and constraints 2–3, 8, 12, 199, 769–770, 776 internal differentiation of v, 2–3, 9, 15, 18, 21, 205, 208, 221, 322, 712–713, 770, 795, 798, 807–808 multiple 4, 207–208 systemic 3, 8, 211, 215, 787 Olson, M 732 order of efficiency, of production techniques 675, 678, 680–682, 684, 693 P Pareto, V 149, 207, 209–210, 219, 376, 530, 548, 556, 559, 791, 803, 807 Pasinetti, L.L 2, 7–8, 171–172, 174, 181–185, 195–196, 204–205, 214–216, 226, 255, 258, 464, 470–471, 659, 671–674, 706, 708, 723, 725–726, 737, 739, 771, 777, 781, 789, 791–792, 794, 805, 807 Patinkin, D 519 Penrose, E 478 Petty, W 466, 529, 537 Pigou, A.C 187, 224–225, 790, 793 planning 29, 76, 80, 575, 631, 637, 641 plutology (Hearn, Hicks) 13, 194–205, 210, 790–793 and wealth as a flow 794 Polanyi, K 291, 300, 320–321 policy analysis 37–41, 47–48 policy fields 34–37 policy output and relationships between fields 44–47 policy process 29–48, 512, 658, 799, 801 political economy and catallactics 193–226 and means-ends reasoning 4–8, 792–795 and plutology 193–226 and the material life of the polity 200–210 and the political life of the economy 211–223 and the structure of material conditions 21, 89, 793 and types of interdependence 796–807 as a normative field of investigation 5, 32, 59, 61, 65, 267–269, 276, 279, 282–283, 318, 556, 558, 712, 716, 750, 792–793 as a positive field of investigation 5, 152, 267–268, 283, 712, 788 see also regimes, of political economy politics xviii–xix, xxii–xxiii, 13, 20, 34–35, 39, 46, 53, 58, 62–64, 68, 73–75, 78, 82–83, 91–128, 145–147, 156, 193–194, 261, 272–273, 276–282, 291–295, 299–301, 309, 314–315, 319, 322–323, 333–431, 449, 530, 532, 606–607, 613, 616–619, 630, 634–635, 637, 639, 742, 749, 758, 765–766 as exchange 278–281 poor relief 11, 93 in early modern France 95–99 in early modern England 99–107 positions, of stakeholders 10, 15, 18 power of exchanging 16, 468, 480 power relationships 39, 110–128, 741 press 56–58, 60–61, 63–64, 79 prices as exchange values xxv, 13 as labour values xxv, 13–14 as natural prices 13–14, 243–244, 247–249, 256 as weights 12–14, 182–183, 186 826     Index prices, measure of 13, 178, 182, 185, 235–258 private interest(s) 29, 46–47, 61, 63, 108, 113–114, 123, 125, 292, 295, 309, 322 production organisation 463–485, 717 production system xx, 18–19, 199, 465, 468, 474–475, 587, 670, 674, 688, 690, 793, 797 productivity/investment compact 516 proportionality condition(s) 3–5, 7, 200, 202, 211, 223, 788, 794–795, 797, 802–804, 807 protectionism 75, 77, 92, 97, 110, 150, 550, 615, 636–637, 641, 643, 733 public choice theory 259, 530, 538 public finance xvi, 17, 260, 275, 278, 442, 531–533, 593 See also fiscal sociology public opinion 10, 37, 54–59, 65, 74–75, 77, 79, 342, 356, 381, 585, 593, 765–766 public policy xviii, 20, 29–48, 72, 150, 154, 275, 314, 411, 427, 445, 750, 758, 765 public sphere xxi, 9–10, 53–86, 156, 765 Q Quesnay, F 2, 5, 24, 121, 138–139, 194, 197, 201–203, 206, 211, 529, 535, 713, 714, 716, 718–719, 742, 771–772, 793, 795, 801–802, 804, 806 R rationality 20, 195, 207, 315, 318, 457, 549, 552–554, 593, 595, 671, 769, 789, 794, 808 instrumental 20, 207, 315, 769, 794, 808 Rawls, J 20, 277, 280, 324, 762 reciprocal needs 309 regimes, of political economy 17–18, 43, 48, 57–58, 65, 67, 69, 71, 83–84, 219, 445, 546–547, 550, 552, 560, 566–567, 569–570, 579–581, 583–586, 589–591, 595–597 coexistence of 18, 559, 580 regulation xv, 11, 29, 31–32, 36–37, 40, 54, 77, 93, 96, 102–103, 106–107, 114, 119–120, 123– 125, 137, 139, 261, 338, 372, 398, 412, 442, 455, 495, 500– 501, 506, 514–553, 556–557, 560–561, 563–564, 566–570, 572–575, 579, 582–583, 591, 593–597 relational interests 322 rent 19, 71, 174, 178–182, 184, 213–214, 240–242, 244–245, 255–256, 472–473, 535, 543, 550, 554, 569, 580, 597, 617, 645, 657–701, 711, 713, 718, 730–731, 735–739, 772, 803–804 rentier regime 18, 560, 579, 585, 589, 597 Republican Party (US) 337, 381 resources xxiii, xxiv, 1–2, 6, 13, 18–19, 34–36, 40, 56, 68, 84, 94, 98, 101, 127, 171, 180, 183–184, 195–199, 205–208, 210–211, 219–221, 224, 309, 315, 321, 365, 406, 450, 458, 470, 472, 478–481, 531, 535, 552–556, 575–577, 580, 583, 597, 630, 633, 641, 657–701, 710–713, 716, 736, 752, 756, 758, 762, 789–791, 794, 796–797, 803, 805–807 Index    827 Ricardo, D 6, 12–14, 53, 71, 126– 127, 171–174, 177, 179–185, 197–198, 212–213, 218, 224–225, 236, 242–247, 251, 255, 261, 470, 659, 669, 673, 712, 718–719, 724, 727–730, 735–736, 742, 803–804 Robbins, L 21, 207, 225, 271, 481, 617, 788, 794–795 Rodrik, D 147, 455, 545, 606, 644, 647 Roosevelt, F.D 76–78, 607, 617–619, 630, 637 Rosenberg, N 738 Rousseau, J.-J 15, 111, 120–121, 290, 301–302, 313 rules xxvi, 10, 14, 32, 34–35, 38, 40, 43–44, 47–48, 58, 96, 102–103, 106, 117, 121, 153, 211, 221, 259–267, 269, 272–273, 276–277, 279, 282–283, 290, 298, 316, 318–319, 321–323, 338, 454–455, 467, 501, 505–506, 538, 547–549, 555, 559, 572–573, 576, 591, 606, 615, 624, 637, 641, 643, 647, 751, 776 S scarcity xxiii, 3, 8, 18–19, 21, 180, 182, 195, 213, 633, 658–669, 672–676, 684–687, 692–698, 700, 788–789, 794, 797–798, 801 dynamic 660–666 technological 660, 665–666, 684–688, 695–697 Schumpeter, J.A 17, 138, 142, 153, 156, 181, 478, 529–533, 535, 560, 590, 592, 730, 735–736, 738 Sen, A.K xiii, xxv, 20, 222, 762 Serra, A 4, 95, 138, 193, 798–801 Seton, F 771 Shackle, G.L.S 795 Sidgwick, H 798–799 Simmel, G 772 Simon, H.A 195, 708, 771, 773, 804 Sismondi, J.-C.-L 6, 201, 802 skills 225, 266, 372, 464, 466, 470– 471, 479, 484–485, 569, 633, 709, 728, 732, 741 Smith, A xiv, xxii, 2, 5, 12–14, 16, 93, 98–100, 105–106, 109–110, 120, 122–125, 127, 139, 149, 171– 172, 174–179, 181–182, 184, 194, 197–198, 212–213, 218, 235–245, 247, 254, 256, 260– 263, 266–267, 282, 290, 304, 306–308, 314, 352, 464–467, 469–472, 478, 480, 493, 529, 537, 558, 673, 712–717, 798, 803 sociability 58–59, 96, 289–291, 296, 298–301, 313, 316–321, 323–325, 797 social coalitions 15–16, 20, 86, 443 and economic policy 15–16, 20, 337, 443, 557 social congruence 316, 321–322, 325 social structure 17, 30, 33, 35, 47, 201–203, 318, 320, 325, 457, 466, 537, 567, 590, 629, 720, 778, 802–806 social transformation xiii, xiv, xix, 20, 749–766 and distributive justice (Rawls) 20 and ‘equality of all things’ (Zhang Taiyan) 20 and equality of opportunity (Sen) 20 and formal equality 20 and governance structures 20 and party politics 20 and promotion of market relationships 20 and social participation 20 828     Index Solow, R.M 7–8, 592, 659 Sombart, W 141, 560 Soskice, D 452, 454, 569–570, 575, 580 specialisation 314, 464, 466, 468–470, 472, 479, 632, 717 Sraffa, P xxv, 2, 172–174, 179, 182–183, 185, 201, 203, 236, 245–246, 249–255, 257–258, 470, 472–473, 659, 669, 671, 673–676, 710, 771–772, 795, 804 standard commodity 182, 185, 246, 253–255, 258, 674 standard system 246, 252–253 state xiii–xxii, 2, 4, 6, 9–11, 15–17, 20, 29, 31, 36, 38, 43–44, 47–48, 54, 57–62, 64, 67, 70, 72–74, 76–82, 84, 91–95, 97, 99–101, 106, 108, 111–112, 118, 120– 122, 125, 139, 145, 153, 193, 207, 212, 236, 260, 263, 272, 278–280, 289–306, 309–316, 319–325, 333–334, 364–365, 374, 377, 430, 442–443, 455, 467, 481, 510, 512, 529–532, 535–538, 545, 548–549, 550– 551, 555, 558, 563–564, 568, 572–577, 581–589, 594–596, 605–606, 611–614, 623, 632, 635, 641, 751–760, 763–766, 788, 796 Steuart, J 5, 8, 91, 121–122, 194, 787–788, 803 Stiglitz, J 148, 442, 455, 477, 490, 591, 750–751 Stone, R 201–202, 725, 804–805 structural dynamics xx, xxv, 18, 184, 187, 212, 480, 484, 658, 660, 666–668, 676–680, 688–690, 800 and behavioural relationships 19, 705–707, 709–710, 713, 720– 721, 725, 732, 735, 739–742 and compositional rules 19, 705, 709–710 and organizational arrangements xiv, 1, 19, 83, 269, 571, 799 structural historicism 534 structural political economy xvi, 20, 529, 539, 711, 741–743, 769–781 and actors’ embeddedness in division of labour 21, 777, 780 and agency xvi, 2, 8, 21, 34–35, 310, 315, 770, 775 and formation of coalitions 15–16, 20, 80, 85–86, 337, 443 and social structures 17, 30, 33, 47, 202–203, 320, 537, 567, 590, 778, 802, 805–806 and visualization of opportunities 778 ‘structure analysis’ (Lowe) 807 Strumilin, S.G 201, 806 Sylos Labini, P 474, 491 T Tableau économique 5, 201–203, 206, 535, 719, 771, 793, 795, 802, 806 tariffs 91–92, 97, 100, 110, 114, 120, 125–126, 337–338, 416, 552, 574, 608, 615, 630, 636–641, 643, 720 tasks (in production) 176, 466–471, 474, 717, 741 Tax State 17, 530, 537 technical progress 7, 19, 469, 478–479, 554, 659–661, 665–666, 669, 672, 676, 686–687, 691–692, 695–698, 700 See also technological progress technological change 185, 371–372, 619, 675, 687, 690, 700–701, 710, 722, 730 Index    829 technological progress 481, 657, 661, 680, 687, 690–698, 700, 718, 722 See also technical progress technological scarcity 660, 665–666, 684, 687, 695–698 Tirole, J 547, 549 transformation, of resources into final goods 6, 198–199, 470, 803 Truman, D.B 773, 775 Tugan-Baranowsky, M.I 202, 720, 727 Tullock, G 218, 259, 269, 276, 279, 281 Tversky, A 795 U unit(s) of analysis 8, 15, 186, 195, 197, 200, 479, 709–710, 742, 805 V value xxv, 6, 13–14, 93, 100, 127, 173–174, 177–179, 182–186, 197, 202, 204–205, 207, 214–216, 235–258, 272, 275, 304, 464–465, 468, 470–473, 475–476, 478, 482–483, 506, 518–519, 532–533, 536–537, 547, 575–576, 579, 583, 607, 613, 618–620, 622–623, 673, 687, 693, 713, 715–716, 719, 737, 771, 773, 790–793, 805 cause of 235–236, 244–245 measure of 182, 185, 235–236, 239, 244–247 vertical integration 184, 215, 475, 483, 710 viability condition(s) 13, 201, 203– 204, 210–217, 223, 719–720, 737, 773–774, 804, 807 Vico, G.B 151, 309 W Walras, L 2, 155, 221, 261, 478, 546, 791, 793, 803 Weber, M 141, 211, 319, 530, 555 weights, of objectives 2, 15, 208–210, 220, 795 welfare v, xviii, xxiii, 10–11, 18, 29, 38, 44–48, 58, 70, 73–85, 93, 108, 187, 198, 220, 224–225, 260, 281–283, 292–293, 308, 371, 377, 429, 441, 443, 450–454, 456, 485, 531–534, 544, 564, 566, 576, 583, 585, 592–593, 606, 612, 617, 643, 645, 647, 711, 752, 788, 793, 797 Wicksell, K 6, 260, 274–276, 278 Wicksteed, P.H 6, 207, 794 Z Zhang, T 20, 762 ... Preface The aim of this Handbook is to outline the field of political economy as the domain of the interdependencies between the objectives of individuals and groups within the polity and the internally.. .The Palgrave Handbook of Political Economy Ivano Cardinale · Roberto Scazzieri Editors The Palgrave Handbook of Political Economy Editors Ivano Cardinale Goldsmiths, University of London... President of the National Lincei Academy, Rome and Emeritus Professor of Political Economy, Catholic University of Milan where he was Dean of the Faculty of Political Sciences He is Member of the Academia