The three credit-hour seminar meets on Tuesdays from 6-8:40 PM. The course will be conducted mainly as a seminar with ample student participation, including a research paper. A "New Economy " has often been identified with the... more
The three credit-hour seminar meets on Tuesdays from 6-8:40 PM. The course will be conducted mainly as a seminar with ample student participation, including a research paper. A "New Economy " has often been identified with the rise of e-business. We will examine whether the rise of e-business has brought with it a change in the rules of the economy, and we will look at the effects of e-business on business, labor, consumers, and the stock market. We will focus on the effects of e-business on pricing, product specialization, economies of scale, and globalization; and we will try to judge whether the effects are likely to differ by industry. The effects of e-business on a firm's competitive advantage through increased information flow and better inventory and input management, will be examined. Another focus of attention will be "network externalities " that are alleged to justify increasing government regulation of some e-business firms, such as Microsoft. Ap...
Chicago. Most of his publications have been in the areas of labor economics, the history of economic thought, and the economics of science. His current research interests include the economics of science and technology, and Schumpeter’s... more
Chicago. Most of his publications have been in the areas of labor economics, the history of economic thought, and the economics of science. His current research interests include the economics of science and technology, and Schumpeter’s process of creative destruction. George J. Stigler’s seminal role as one of the founders of the economics of science is summarized and evaluated. His main contribution rests in his asking an array of important questions, and arguing persuasively for the application of empirical and especially statistical, techniques to the answering of those questions. He asks whether and how science progresses; whether a scientist’s biography is important in understanding his science; what characteristics of a scientist are most complementary to success in science; and how the professionalization of science redirects the attention of scientists more toward internal puzzle-solving, and less toward applied relevance.
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Research Interests:
Dynamic competition through the process of creative destruction encourages the innovation in product and process that lengthens and improves lives. Although an increasing number of academics and business practitioners are recognizing the... more
Dynamic competition through the process of creative destruction encourages the innovation in product and process that lengthens and improves lives. Although an increasing number of academics and business practitioners are recognizing the importance of creative destruction, most principles of microeconomics texts give little or no attention to the process. I examine a sample of 27 recent United States microeconomic principles textbooks. Of these, 16 do not mention Schumpeter in any way. Of the 11 that do mention Schumpeter, only six provide any description of the process of creative destruction.
Thoughtful scholars from Adam Smith to Jared Diamond, have asked the same life-and-death question: why do some societies succeed, and others fail, in producing the goods that make life long, healthy and prosperous? Smith's answer was... more
Thoughtful scholars from Adam Smith to Jared Diamond, have asked the same life-and-death question: why do some societies succeed, and others fail, in producing the goods that make life long, healthy and prosperous? Smith's answer was basically that when societies adopt the rules of market capitalism, their economies grow,:and when they do not adopt the rules of market capitnlism, their economies do not. Since Smith, other economists have developed more formal models of economic growth. The classic "Solow growth model" emphasized the investment of capital. Romer's "New Growth Theory," includes knowledge as a variable. What is mainly missing from both the new and the old growth theories is a useful discussion of incentives and entrepreneurship. The theories are not just academic abstractions. Policymakers, wanting to improve the world, sometimes act in part on the basis of the
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In the last 20 years three books have been published that are critical of air conditioning (Cooper 1998; Ackermann 2002; Cox 2010). No books (or even articles) in those years have been primarily devoted to a general defense. Such a... more
In the last 20 years three books have been published that are critical of air conditioning (Cooper 1998; Ackermann 2002; Cox 2010). No books (or even articles) in those years have been primarily devoted to a general defense. Such a defense should make the following points. Air conditioners reduce disease and mortality, especially among the ill and aged. They reduce aggressive behavior, including road rage, assaults, and murders. They increase the quality and quantity of nighttime sleep. They improve student and worker productivity by reducing noise and increasing the ability to concentrate. They increase comfort and free choice. JEL Codes: I18 (Health: Government Policy; Regulation; Public Health), O33 (Technological Change: Choices and Consequences; Diffusion Processes), J24 (Labor Productivity)
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Dynamic competition through the process of creative destruction encourages the innovation in product and process that lengthens and improves lives. Although an increasing number of academics and business practitioners are recognizing the... more
Dynamic competition through the process of creative destruction encourages the innovation in product and process that lengthens and improves lives. Although an increasing number of academics and business practitioners are recognizing the importance of creative destruction, most principles of microeconomics texts give little or no attention to the process. I examine a sample of 27 recent United States microeconomic principles textbooks. Of these, 16 do not mention Schumpeter in any way. Of the 12 that do mention Schumpeter, only six provide any description of the process of creative destruction.
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While the consumer benefits from the new products and improved processes due to creative destruction, the major downside to creative destruction is technological unemployment. However, policies adopted by government and by workers can... more
While the consumer benefits from the new products and improved processes due to creative destruction, the major downside to creative destruction is technological unemployment. However, policies adopted by government and by workers can increase the upside and reduce the downside. Governments can enable entrepreneurial innovation by keeping the labor market flexible. A government safety net is also considered. Workers can become more resilient in attitude and frugal in spending; and can invest in more diversified and enduring human capital. The family can provide a private safety net. The process of creative destruction is not a zero-sum game.
Stories are memorable and convincing. One way to efficiently tell stories is through movie and video clips. I summarize several video clips that may be useful in teaching aspects of Schumpeter’s important theory of creative destruction.... more
Stories are memorable and convincing. One way to efficiently tell stories is through movie and video clips. I summarize several video clips that may be useful in teaching aspects of Schumpeter’s important theory of creative destruction. Among the clips discussed are: Hugh Laurie’s Protest Song, electric light segment from a documentary on the 1898 Trans-Mississippi Exposition, eBay Toy Boat Ad, Miss Princess Fun Brick Ad, Moscow toilet paper queue scene, the New York coffee aisle scene from Moscow on the Hudson, and Peck and DeVito’s speeches from Other People’s Money.
Entrepreneurs have two advantages over credentialed experts. They ‘‘know’’ less of what is false, and they (informally) know more of what is true. They know less of what is false because they are either ignorant of, or willing to ignore,... more
Entrepreneurs have two advantages over credentialed experts. They ‘‘know’’ less of what is false, and they (informally) know more of what is true. They know less of what is false because they are either ignorant of, or willing to ignore, the currently dominant theories. They know more of what is true by having more informal knowledge (whether local, tacit, or inchoate). Funding of projects by firms or governments will rely on expert judgments based on the currently dominant theory. So breakthrough innovations depend on innovative entrepreneurs being able to find funding independent of the insider incumbent institutions, usually self-funding. An earlier version of the paper was presented at the Biennial Workshop Conference on the Austrian School of Economics on ‘‘Austrian Views on Experts and Epistemic Monopolies’’ in October 2010; and at the History of Economics Society meetings in June 2011. I appreciate comments from Steven Horwitz, Roger Koppl, Douglas MacKenzie, Pete Boettke, Ty...
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Amazon.com’s “Search Inside the Book†feature provides a new and exciting tool for bibliometric research. Over the last few years, a growing number of books listed on Amazon. com reference Schumpeter in some way. As of May 3, 2007,... more
Amazon.com’s “Search Inside the Book†feature provides a new and exciting tool for bibliometric research. Over the last few years, a growing number of books listed on Amazon. com reference Schumpeter in some way. As of May 3, 2007, Amazon listed 8,086 books that in some way refer to Schumpeter. Of these, I currently have names and titles of 3,719 books in the Schumpeter Amazon database. Of these, I have done content-analysis for 1,176 books that make reference to Schumpeter. The main result is that a significant number of the references to Schumpeter are related to creative destruction. The percent of Schumpeter-references where the reference is related to creative destruction is significantly higher for books on business than books on economics. I believe this is a case where market demand reflects intellectual value, even if academic economics has not done much to incorporate Schumpeter’s central ideas.
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Past fears that robots and computers would cause large increases in secular unemployment have proven unfounded. Some well-respected economists and other technology and labor analysts are worried again. Advances in algorithms have proven... more
Past fears that robots and computers would cause large increases in secular unemployment have proven unfounded. Some well-respected economists and other technology and labor analysts are worried again. Advances in algorithms have proven impressive, but experts on the mind and neuroscience remain skeptical about the extent to which robots and computers will be able to duplicate or surpass humans in areas of insight, judgment, and creativity. Certainly, for the foreseeable future, robots and computers will be more complements to human labor, than they will be substitutes for human labor, enhancing us more than replacing us. If we use the precautionary principle to justify heavy regulation of robots and computers, the benefits of enhancement will be fewer and will be delayed. JEL Classifications: J63, O33, L51, D83, O31
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The wealth received by some innovative entrepreneurs is fair because of the large benefits of their innovations. Widespread flourishing under innovative dynamism encourages tolerance of diversity, respect for the rights of others, more... more
The wealth received by some innovative entrepreneurs is fair because of the large benefits of their innovations. Widespread flourishing under innovative dynamism encourages tolerance of diversity, respect for the rights of others, more effective sympathy, and cultural diversity. The equality that matters most is that everyone has roughly an equal chance to improve their lives. The quantity of resources expands, because inventors and entrepreneurs create new uses for old materials. For example, process innovations in agriculture, such as the Haber-Bosch process for creating fertilizer from nitrogen in the air, mean that an abundance of food can be grown with less land, encouraging the greening of the planet. Innovations can allow us to adapt to modest and slow global warming. If global warming becomes greater and faster, other innovations can produce energy with less carbon, can increase the sequestration of carbon, and can counter the increase in temperature through geoengineering.
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... ARTHUR M. DIAMOND, JR.,a ROBERT J. TOTHb ... The citation counts were first-author only and included citations under both the first-initial-only and under both first and second initials (so, eg, we count citations for Galbraith under... more
... ARTHUR M. DIAMOND, JR.,a ROBERT J. TOTHb ... The citation counts were first-author only and included citations under both the first-initial-only and under both first and second initials (so, eg, we count citations for Galbraith under both 'Galbraith, J.' and 'Galbraith, JK'). ...
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... Scientific productivity is constant as a scientist ages according to recent studies relying mainly on quantity measures of productivity. ... The specific findings of Cole, however, might be con-sistent with the model if scientific... more
... Scientific productivity is constant as a scientist ages according to recent studies relying mainly on quantity measures of productivity. ... The specific findings of Cole, however, might be con-sistent with the model if scientific productivity had two components: quantity and quality. ...
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... Review 99, no. 2 (May 2009): 198-204. Drakopoulos, Stavros A., and Anastassios D. Karayiannis. "The Historical Development of Hierarchical Behavior in Economic Thought." Journal of the History of... more
... Review 99, no. 2 (May 2009): 198-204. Drakopoulos, Stavros A., and Anastassios D. Karayiannis. "The Historical Development of Hierarchical Behavior in Economic Thought." Journal of the History of Economic Thought 26, no. 3 (2004): 363-78. Etter, Lauren. ...
Polywater, one of the most famous mistaken scientific research programs of the past half-century, is used as a case study to examine whether polywater researchers later experienced lower citation counts, or less favorable job mobility.... more
Polywater, one of the most famous mistaken scientific research programs of the past half-century, is used as a case study to examine whether polywater researchers later experienced lower citation counts, or less favorable job mobility. The primary result is that simply writing on polywater, either pro or con, has a negative impact on future citations, in comparison with those who never wrote on polywater. The lifetime value of the lost citations is roughly in the range of $13,000 to $19,000. However writing on polywater did not affect the probability of a scientist leaving university employment. Copyright © 2009 American Journal of Economics and Sociology, Inc..
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Entrepreneurs have two advantages over credentialed experts. They “know” less of what is false, and they (informally) know more of what is true. They know less of what is false because they are either ignorant of, or willing to ignore,... more
Entrepreneurs have two advantages over credentialed experts. They “know” less of what is false, and they (informally) know more of what is true. They know less of what is false because they are either ignorant of, or willing to ignore, the currently dominant theories. They know more of what is true by having more informal knowledge (whether local, tacit, or inchoate). Funding of projects by firms or governments will rely on expert judgments based on the currently dominant theory. So breakthrough innovations depend on innovative entrepreneurs being able to find funding independent of the insider incumbent institutions, usually self-funding.
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Brief Abstract The innovative new products from creative destruction benefit the consumer, but the benefits to the consumer,must be weighed against the costs to labor in terms of technological unemployment.,The first section examines the... more
Brief Abstract The innovative new products from creative destruction benefit the consumer, but the benefits to the consumer,must be weighed against the costs to labor in terms of technological unemployment.,The first section examines the magnitude,and duration of unemployment,from creative destruction. The second section examines whether the new jobs created are generally better or worse (in terms of worker satisfaction and other criteria), than the old jobs destroyed. The third section examines policies that labor, or the government, might adopt that would reduce the costs, and increase the benefits, to labor of the process of creative destruction. Extended Abstract
Amazon.com’s “Search Inside the Book†feature provides a new and exciting tool for bibliometric research. Over the last few years, a growing number of books listed on Amazon. com reference Schumpeter in some way. As of May 3, 2007,... more
Amazon.com’s “Search Inside the Book†feature provides a new and exciting tool for bibliometric research. Over the last few years, a growing number of books listed on Amazon. com reference Schumpeter in some way. As of May 3, 2007, Amazon listed 8,086 books that in some way refer to Schumpeter. Of these, I currently have names and titles of 3,719 books in the Schumpeter Amazon database. Of these, I have done content-analysis for 1,176 books that make reference to Schumpeter. The main result is that a significant number of the references to Schumpeter are related to creative destruction. The percent of Schumpeter-references where the reference is related to creative destruction is significantly higher for books on business than books on economics. I believe this is a case where market demand reflects intellectual value, even if academic economics has not done much to incorporate Schumpeter’s central ideas
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Declining research productivity with age is implied by economic models of life-cycle human capital investment but is denied by some recent empirical studies. The purpose of the present study is to provide new evidence on whether a... more
Declining research productivity with age is implied by economic models of life-cycle human capital investment but is denied by some recent empirical studies. The purpose of the present study is to provide new evidence on whether a scientist's output generally declines with advancing age. A longitudinal data set has been compiled for scientists and mathematicians at six major departments, including data on age, salaries, annual citations (stock of human capital), citations to current output (flow of human capital), and quantity of current output measured both in number of articles and in number of pages. Analysis of the data indicates that salaries peak from the early to mid-60s, whereas annual citations appear to peak from age 39 to 89 for different departments with a mean age of 59 for the 6 departments. The quantity and quality of current research output appear to decline continuously with age.
Research Interests: Mathematics, Gerontology, Science, Aging, Research, and 9 moreCalifornia, Humans, Universities, Life Cycle, Efficiency, Aged, Middle Aged, Adult, and Illinois
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Evidence from the data tape for the 1985 Directory of the American Economic Association indicates that blacks and women remain underrepresented compared to their numbers in the general population. Although we present some limited evidence... more
Evidence from the data tape for the 1985 Directory of the American Economic Association indicates that blacks and women remain underrepresented compared to their numbers in the general population. Although we present some limited evidence of increased representation of these minorities, the finding of underrepresentation is robust when we look at other measures of career status such as rank achieved or status of institution of employment. A fuller understanding of the determinants of minority participation within the economics profession will require that the data presented here be combined with data from other sources on productivity, salaries, and labor market alternatives.
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Popular wisdom asserts, and life-cycle theories of human capital investment seem to imply, that older scientists are slower to accept new theories than are younger scientists. When this view is tested with evidence on the acceptance of... more
Popular wisdom asserts, and life-cycle theories of human capital investment seem to imply, that older scientists are slower to accept new theories than are younger scientists. When this view is tested with evidence on the acceptance of cliometrics, however, the year-of-birth variable, although statistically significant, explains less than 10 percent of the variance in acceptance.
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Since 1983, the Joint Council on Economic Education (JCEE) has ex-panded and enhanced its Developmental Economic Education Program (DEEP), which is aimed at achieving major improvements in the economics literacy of high school students by... more
Since 1983, the Joint Council on Economic Education (JCEE) has ex-panded and enhanced its Developmental Economic Education Program (DEEP), which is aimed at achieving major improvements in the economics literacy of high school students by encouraging and ...