Theory and Method of Evolutionary Political Economy A Cyprus Symposium Routledge Advances in Heterodox Economics Series

The world is in turmoil, the dynamics of political economy seem to have entered a phase where a ?return to normal? cannot be expected. Since the financial crisis, conventional economic theory has proven itself to be rather helpless and political decision makers have become suspicious about this type of economic consultancy. This book offers a different approach. It promises to describe political and economic dynamics as interwoven as they are in real life and it adds to that an evolutionary perspective. The latter allows for a long-run view, which makes it possible to discuss the emergence and exit of social institutions.

The essays in this volume explore the theoretical and methodological aspects of evolutionary political economy. In part one, the authors consider the foundational contributions of some of the great economists of the past, while the second part demonstrates the benefits of adopting the methods of computer simulation and agent-based modelling. Together, the contributions to this volume demonstrate the richness, diversity and great explanatory potential of evolutionary political economy.

This volume is extremely useful for social scientists in the fields of economics, politics, and sociology who are interested to learn what evolutionary political economy is, how it proceeds and what it can provide.

Introduction

Part I

Evolutionary Political Economy – Theory

1 Creative economy as a resource for specific local developments

Ismail Erturk and Pascal Petit

2 Creative industries between ‘living labs’ and ‘robinsonnade’

Philippe Bouquillion and Pierre Mœglin

3 Population thinking vs. essentialism in biology and evolutionary economics

George Liagouras

4 The Relevance of Karl Polanyi

Ernst Hollander and Maria Fregidou-Malama

5 Marx through Goodwin

Carlo D’Ippoliti and Marco Ranaldi

6 The Role of Unions as Working Class Representation

Gloria Kutscher and Edeltraud Hanappi-Egger

7 The Emergence of Evolutionary-Institutional Thought in Russia

John Hall and Svetlana Kirdina

8 Market Performance – Liquidity or Knowledge? Evidence from the Market for Corporate Control

Killian McCarthy and Wilfred Dolfsma

Part II

Methods of Evolutionary Political Economy

9 Macroeconomic Policy in DSGE: Methodological Pitfalls, Patches or New Clothes?

Andrea Roventini and Giorgio Fagiolo

10 Macroeconomic Policy in Agent-Based Models: New Developments and Challenges Ahead 282

Giorgio Fagiolo and Andrea Roventini

11 Credit-driven business cycles in an agent-based macro model

Marco Raberto, Reynold Christian Nathanael, Bulent Ozel, Andrea Teglio and Silvano Cincotti

12 Fiscal policy and redistribution in an evolutionary macroeconomic model of an artificial monetary union

Bernhard Rengs and Manuel Scholz-Wäckerle

13 Agent-based simulations as an early warning system for natural disasters

Asjad Naqvi and Miriam Rehm

14 Dealing adequately with the political element in formal modelling

Claudius Gräbner

Hardy Hanappi is ad personam chair for Political Economy of European Integration at the European Commission and professorial research associate at SOAS, University of London. He also is president of the Vienna Institute for Political Economy Research (VIPER), Austria.

Savvas Katsikides is University Professor and Jean Monnet Chair at the University of Cyprus.

Manuel Scholz-Wäckerle is Senior Lecturer at the Department of Socioeconomics, Vienna University of Economics and Business, Austria.