Suchergebnisse

The welfare state is analyzed through positive economic science & positive political theory. The axiomatic theory of consistent choice, leading to the idea of Pareto optimality, provides more rigorous analysis than the theory of the firm & of industrial organization; however, the latter theory more fully merges theory with the empirical testing of hypotheses. Theories of political phenomena can profit more from theories of the latter kind than from theories of the former kind. The central point is production of falsifiable theories of hypotheses & predictions, & the avoidance of confusions of description with prescription in dealing with political life. The debate over whether a socialist economy can coordinate decisions on the use of scarce resources, & the resulting questions over the social & economic role of the state, remain unresolved on theoretical grounds. Thus, economics cannot prescribe the proper role of the state. Attention must be given to the process & meaning of law making, the intended effects of laws & their compatibility with one another. There is thus a need for scientific & parliamentary scrutiny of their implementation in a democratic state under pressure from interest groups. There is a great need for analysis of the processes going on in the crumbling welfare state, rather than propaganda; providing this analysis is part of the vocation of academic leaders. Modified HA.

An extensive review is given of the book Graven naar Macht ([Digging for Power] Amsterdam: Van Gennep, 1975) by H. M. Helmers et al & with the collaboration of Jac. M. Anthonisse. The word Graven in the title not only means 'unearthing', but also refers to the research technique used: the analysis of graphs. The power in question is that allegedly possessed by the directors of big corporations, who spin a web of interlocking directorates within industry & finance & with government (particularly the Dept of Education & Sciences, of Economic Affairs, & the Social & Economic Council of the Netherlands). Although the authors are political scientists, they go beyond their competence by passing judgment on the contributions of economics, which they judge to be poor or entirely lacking. They argue that economics has lost sight of the phenomenon of power because it has become so mature in a technical sense, & abstract. Hence, the authors feel obliged to probe for the kernel of Dutch economy with a new method of analysis. It is argued that the authors missed the essentials of economic theorizing in general, that they were unaware even of those areas of economics that deal explicitly with at least part of the problem they want to tackle (especially the theory of allocation & of markets, managerial & behavioral theories of the firm, & the field of industrial organization) & that they failed to discover the core of Dutch economy, whether judged by the standards of their own approach or by comparison with the insights of economic theory. The gathering & presentation of the data & the presentation of graph theory are praised. The rest of the book is said to be a failure; the authors do not live up to their intentions. Modified HA.