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Evolutionary Alternatives to Equilibrium Economics

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  • Joseph E. Pluta

Abstract

Built on the fictional concept of equilibrium, mainstream economics provides a method of analysis that, when paired with the calculus, enables relatively easy identification of maximum and minimum values. Lacking empirical evidence of its behavioral assumptions, the profession accepts such familiar claims as consumer maximization of utility and business firm maximization of profit or revenue. In place of the relatively static concept of equilibrium, the Veblen‐Myrdal notion of circular and cumulative causation (CCC) arguably has greater descriptive capability and more penetrating insight for policy recommendations. This article traces the historical origins of both concepts and argues that CCC offers considerable potential for a broad, dynamic, interdisciplinary, more thorough, and more accurate analytical framework. Specific examples of work that has been done along with suggestions for future applications of this concept are given.

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  • Joseph E. Pluta, 2010. "Evolutionary Alternatives to Equilibrium Economics," American Journal of Economics and Sociology, Wiley Blackwell, vol. 69(4), pages 1155-1177, October.
    • Handle: RePEc:bla:ajecsc:v:69:y:2010:i:4:p:1155-1177
    DOI: 10.1111/j.1536-7150.2010.00739.x
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    References listed on IDEAS

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    1. P. Ho, 2009. "An Institutionalist's Policy Advice to Address International Inequalities: The Contributions of Gunnar Myrdal," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(2), pages 337-344.
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    9. Sebastian Berger, 2009. "Myrdal's Institutional Theory of the State: From Welfare to Predation - and Back?," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(2), pages 353-360.
    10. Myrdal, Gunnar, 1978. "Political and Institutional Economics," Research Series, Economic and Social Research Institute (ESRI), number GLS11, June.
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    2. Jackson, William A., 2015. "Markets and the Meaning of Flexibility," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 20(2), pages 45-65.

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