2/4/2018 Intermission




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The Nature of Economics (5)

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The Nature of Economics (5) We see here a good example for the fact that the values researchers possess affect their choice of the topic and method of research generating bias in ‘scientific works.’ 　 Researchers who want to support individualism do not analyze firms or households seriously. They simply introduce exogenously given production functions and utility functions. Economists tend to ignore or distort social aspects that are inconvenient to build models with conclusions they like. It is really hard to establish social sciences that are value-free. Researchers need to recognize this. On the other hand, a unified theoretical model may be formed to explain the cultural difference mentioned in the example given in the above third reason. It may be done by introducing a measure of the degree of cooperativeness as an exogenous variable. In such a model different types of equilibrium may arise for different values of the measure. If we can endogenize the variable for that m...
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The Nature of Economics (7)

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The Nature of Economics (7) Neoclassical economics does not consider efficiency of the whole economy because the production function and utility function are exogenously given. Since I do not think that this point is made clear in books or papers, I would like to discuss it in some detail. Consider two economies E1 and E2. The workers in E1 are more cooperative and hard-working. Those in E2 are selfish and lazy. Hence, the labor productivity in the firm in E1 is higher for equally given levels of physical inputs. However both economies are efficient in neoclassical economics! Both E1 and E2 are efficient as far as all firms maximize their profits subject to exogenously given (different) production functions! It is obvious that E1 is more affluent than E2. I would like to emphasize that efficiency differs from affluence in neoclassical economics. Next consider two economies E3 and E4. The people in E3 are more harmonious and other-regarding within the household. Those in E4 ar...
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Wars and Religion

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Wars and Religion               I would like to claim that religion is closely related to wars. There have been many religious wars in history. Even wars that are not directly related to religion are sometimes indirectly related to it in the sense that strategies are chosen by religious criteria as in the case of the atomic bombing of Hiroshima and Nagasaki. In addition, inhuman acts in wars are often overlooked because churchmen or other moral leaders are silent about them for religious reasons as in the case of Nazi’s Holocaust.               Take here an example of the International Military Tribunal for the Far East opened after WWII. It was actually a ‘cultural war’ between Japan and victorious or Christian countries. It was obviously illegal because it applied ex-post facto law, but there were virtually no Western churchmen or jurists who opposed ...
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