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Giuseppe Freni - Economic Theory and its History

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Giuseppe Freni Economic Theory and its History

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This collection brings together leading economists from around the world to explore key issues in economic analysis and the history of economic thought. This book deals with important themes in economics in terms of an approach that has its roots in the works of the classical economists from Adam Smith to David Ricardo. The chapters have been inspired by the work of Neri Salvadori, who has made key contributions in various areas including the theory of production, the theory of value and distribution, the theory of economic growth, as well as the theory of renewable and deplorable natural resources.

The main themes in this book include production, value and distribution; endogenous economic growth; renewable and exhaustible natural resources; capital and profits; oligopolistic competition; effective demand and capacity utilization; financial regulation; and themes in the history of economic analysis. Several of the contributions are closely related to the works of Neri Salvadori. This is demonstrated with respect to important contemporary topics including the sources of economic growth, the role of exhaustible resources in economic development, the reduction and disposal of waste, the redistribution of income and wealth, and the regulation of an inherently unstable financial sector.

All contributions are brand new, original and concise, written by leading exponents in their field of expertise. Together this volume represents an invaluable contribution to economic analysis and the history of economic thought. This book is suitable for those who study economic theory and its history, political economy as well as philosophy.

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First published 2016
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

2016 selection and editorial material, Giuseppe Freni, Heinz D. Kurz, Andrea Mario Lavezzi and Rodolfo Signorino; individual chapters, the contributors

The right of the editors 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

Economic theory and its history: essays in honour of Neri Salvadori /
edited by Giuseppe Freni, Heinz D. Kurz, Andrea Mario Lavezzi,
Rodolfo Signorino.

pages cm

1. EconomicsHistory. 2. Economics. I. Salvadori, Neri, honoree.
II. Freni, Giuseppe, editor.
HB75.E325 2016
330.01dc232015031445

ISBN: 978-1-138-18659-0 (hbk)
ISBN: 978-1-315-64375-5 (ebk)

Typeset in Times New Roman
by Sunrise Setting Ltd, Paignton, UK

Martn Puchet Anyul Universidad Nacional Autnoma de Mxico - photo 1

Martn Puchet Anyul , Universidad Nacional Autnoma de Mxico, anyul@servidor.unam.mx

Enrico Bellino , Universit Cattolica del Sacro Cuore di Piacenza, enrico.bellino@unicatt.it

Christian Bidard , University of Paris Ouest-Nanterre La Dfense, christian.bidard@u-paris10.fr

Edwin Burmeister , Duke University and University of Virginia, eb@econ.duke.edu

Pasquale Commendatore , University of Naples Federico II, pasquale.commendatore@unina.it

Antonio DAgata , University of Catania, adagata@unict.it

Simone DAlessandro , University of Pisa, s.dale@ec.unipi.it

Amitava Krishna Dutt , University of Notre Dame and FLACSO-Ecuador, Amitava.K.Dutt.1@nd.edu

Silvia Faggian , University Ca Foscari of Venice, faggian@unive.it

Luciano Fanti , University of Pisa, luciano.fanti@unipi.it

Riccardo Faucci , University of Pisa, faucci@dse.unipi.it

Duncan K. Foley , New School for Social Research, foleyd@newschool.edu

Giuseppe Freni , University of Naples Parthenope, giuseppe.freni@uniparthenope.it

Christian Gehrke , University of Graz, Christian.Gehrke@uni-graz.at

Eiji B. Hosoda , Keio University, hosoda@econ.keio.ac.jp

Bruno Jossa , University of Naples Federico II, bruiossa@unina.it

Ingrid Kubin , Vienna University of Economics and Business Administration, ingrid.kubin@wu.ac.at

Heinz D. Kurz , University of Graz, heinz.kurz@uni-graz.at

Andrea Mario Lavezzi , University of Palermo, mario.lavezzi@unipa.it

Edward Nell , New School for Social Research, ejnell2@gmail.com

Arrigo Opocher , Universit di Padova, arrigo.opocher@unipd.it

Carlo Panico , University of Naples Federico II, carlo.panico@unina.it

Man-Seop Park , Korea University, manseop@korea.ac.kr

Sergio Parrinello , University of Rome, La Sapienza, sergio.parrinello@uniroma1.it

Carmelo Petraglia , University of Basilicata, carmelo.petraglia@unibas.it

Antonio Pinto , University of Naples Federico II, antpinto@unina.it

Alberto Quadrio Curzio , Universit Cattolica di Milano and Accademia Nazionale dei Lincei, alberto.quadriocurzio@unicatt.it

Alessandro Roncaglia , University of Rome, La Sapienza, alessandro.roncaglia@uniroma1.it

Paul A. Samuelson , formerly of Massachusetts Institute of Technology

Stefan F. Schubert , University of Bozen-Bolzano, stefanfranz.schubert@unibz.it

Rodolfo Signorino , University of Palermo, rodolfo.signorino@unipa.it

Ian Steedman , Manchester Metropolitan University, I.Steedman@mmu.ac.uk

Marta Vazquez Suarez , Universidade de Santiago de Compostela, marta.vazquez@usc.es

Stephen J. Turnovsky , University of Washington, Seattle, sturn@u.washington.edu

Takashi Yagi , Meiji University, yagi8@meiji.ac.jp

Part 5
Imperfect competition
26
Self-management and socialism

Bruno Jossa

Introduction

Hobsbawm has written that historians, while drawing a clear-cut distinction between Marxists and non-Marxists and concerning themselves preferably with the former, have actually widened this group through the inclusion of a large selection of authors. In point of fact, he argued, this distinction is necessary if we are to write a reliable history of Marxism (see Hobsbawm, 1979, 61). In our opinion, instead, the most shared opinion is that the line separating what is Marxist from what is not has been progressively blurred. Maxime Rodinson (1969, 9), for instance, has remarked that, despite the efforts of Marx and Marxists to prove previous philosophical systems wrong, it is far from easy to pinpoint what exactly distinguishes the Marxist approach, and some commentators trace this fact to the involvement of an increasing number of intellectuals in academic research on Marxism. Indeed, an attentive Marx commentator such as Rubel has gone so far as to deny the legitimacy of terms such as Marxian or Marxist (see Rubel, 1974, 2021).

With specific regard to their approach to the next social order, Marxists fall into two broad divisions: those who describe socialism as a command economy founded on planning and those who assume that the correct Marxian view of a socialist economy is one which equates socialism with self-management.

In this paper, we will be arguing that the establishment of a system of cooperative firms reversing the current capitallabour relation is tantamount to a revolution, in that it results in the introduction of a new production mode. Subsequently, we will raise the question: is the idea of a revolution enacted by peaceful and democratic means and in successive steps until worker-managed firms outnumber capitalistic companies fully compatible with the letter of Marx and Engelss writings? From our perspective, the prerequisite for such a revolution is a certain amount of support from the public hand, in terms that the State would have to look upon democratic firms as merit goods and make provision for tax and/or other benefits in their favour.

An additional query we deem worth exploring is whether a form of socialism established through State intervention would be compatible with Marxs and Engelss theorisations. Although the best proxy for the system imagined by Marx is doubtless an economy in which labour managed firms operate within a centrally planned system, we wish to argue that a system with self-managed firms would be consistent with Marxs theoretical edifice even though it should fail to adopt central planning.

A system of producer cooperatives as a new production mode

A great many market socialism models have been theorised over the past years; among them, the system with firms run by workers themselves the one with which we are concerned in this paper is both the simplest to prefigure and the most widely discussed. The question is: is such a system a new production mode? In the prevailing opinion the only way to evade the control of capital is to do away with it (see, for instance, Mszros, 1995, 981).

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