Encyclopedia of Political Economy Encyclopedia of Political Economy edited by Phillip Anthony O’Hara Volume 1: A–K London and New York First published 1999 by Routledge 11 New Fetter Lane, London, EC4P 4EE Simultaneously published in the USA and Canada by Routledge 29 West 35th Street, New York, NY 10001 First published in paperback 2001 Routledge is an imprint of the Taylor & Francis Group This edition published in the Taylor & Francis e-Library, 2004. © 1999, 2001 Routledge All rights reserved. No part of this book may be reprinted or reproduced or utilized 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. 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 A catalog record for this book is available from the Library of Congress ISBN 0-203-44321-7 Master e-book ISBN ISBN 0-203-75145-0 (Adobe eReader Format) PBK ISBN 0-415-24188-X (set) PBK ISBN 0-415-24186-3 (v.1) PBK ISBN 0-415-24187-1 (v.2) HBK ISBN 0-415-15426-X (set) HBK ISBN 0-415-18717-6 (v.1) HBK ISBN 0-415-18718-4 (v.2) Contents Volume 1 Editorial team vi Foreword xi Preface xiv Acknowledgments xvii How to use the Encyclopedia xx List of contributors xxviii Entries A–K 1 Volume 2 Entries L–Z 633 Index 1275 v Editorial team Editor 20 papers in various books and 60 papers in refereed journals. His interests lie in Phillip Anthony O’Hara is an Associate monetary economics, growth economics, Professor of Economics at Curtin Univer- the economics of sport, and all non- sity of Technology in Perth, Australia. He orthodox approaches to political economy. received the “Clarence Ay res Visiting International Scholar” Award from the Ellen Mutari is an Assistant Professor of Association for Evolutionary Economics Economics at Monmouth University in West (AFEE) in 1997–8 and is a member of the Long Branch, New Jersey, USA. She is a co- Board of Directors of AFEE. He has editor of Gender and Political Economy: published in numerous international Incorporating Diversity Into Theory and refereed journals; and has been a Visiting Policy (1997). Her research interests include Professor at Marquette University in the impact of economic restructuring on Wisconsin and a Visiting Scholar at the gender relations and the theoretical develop- University of California, Riverside and ment of feminist political economy. California State University. His research interests are in the areas of institutionalist, Steven Pressman is a Professor of Economics radical, feminist, post-Keynesian and social and Finance at Monmouth University in political economy. West Long Branch, New Jersey, USA; North American Editor of the Review of Political Associate editors Economy, and Treasurer of the Eastern Economic Association. He has published Deborah M.Figart is an Associate Professor more than 60 articles in edited books and of Economics at Richard Stockton College, international refereed journals and is the New Jersey, USA. She is a co-author of author or editor of 6 books. His research Contesting the Market: Pay Equity and the centers on areas such as poverty, public Politics of Economic Restructuring (1997). finance, post-Keynesian macroeconomics She is currently serving as a Guest Editor and the history of economic thought. for two journals and is one of the founding members of the International Association for Feminist Economics. In 1989–90, she Editorial board was a Fulbright Scholar in Western Europe. John B.Davis is a Professor of Economics at Marc Lavoie is a Full Professor in the Marquette University, Milwaukee, USA. He Department of Economics at the University is the editor of the Review of Social of Ottawa, Canada. He has also been a Economy and the author of many books Visiting Professor at the universities of and journal articles. His research areas Bordeaux, Nice, Rennes, Dijon and at include economic methodology, the Curtin University. He is the author of four philosophy of economics, Keynes, Sraffa books, has co-edited one and has published and classical political economy. vi Editorial team James Devine is a Professor of Economics at Canada and has been a consultant econo- Loyola Marymount University in Los mist for Canadian trade unions. His areas Angeles, California, USA. He is a Marxian of teaching and research include labor political economist, with research interests economics, macroeconomics, monetary in macroeconomics, labor issues, monetary theory, the history of economic thought, issues, and economic history. He has and Canadian economic history. published articles on high theory and on economic history, as well as on the Eric Shutz is an Associate Professor at Rollins Marxian theory of exploitation, methodol- College, Winter Park, Florida, USA. His ogy, and the microeconomics of labor- areas of interest and teaching include capital relations. industrial organization, Marxian econom- ics, comparative economic systems and John T.Harvey is a Professor of Economics at American political economy. Texas Christian University in Fort Worth, Texas, USA. His research interests are in Ajit Sinha currently teaches economics at the international finance and macroeconomics; University of Newcastle in Australia. He and his recent papers include empirical has published several research papers in the studies of exchange rate expectations, area of Marxian political economy, and has theoretical investigations of the psychology co-edited a special issue of Research in of decision making, and accounts of the Political Economy (volume 15). evolution of the international payments Douglas Vickers is a Professor Emeritus of system. Economics at the University of Massachu- John S.L.McCombie is a member of the setts, Amherst, USA. He has authored 15 University of Cambridge and a Fellow in books on economics, philosophy and Economics at Downing College, Cam- theology and numerous journal articles. His bridge, UK. He has researched extensively research has concentrated on monetary on the reasons for economic growth economics, the significance of time for an disparities between the advanced countries; understanding and critique of market economic growth and the balance-of- relationships, and the importance of ethics payments constraint; Kaldorian growth in the workings of institutions. models; the economics of Keynes; criticisms Richard D.Wolff is a Professor of Economics of the aggregate production function; and at the University of Massachusetts, economic methodology. Amherst, USA, where he has taught Sabine O’Hara is Director of the PhD economic theory (including Marxian Program in Ecological Economics and an economics) at graduate and undergraduate Assistant Professor at the Rensselaer levels. He has published numerous books Polytechnic Institute at Troy, New York, and refereed journal articles. He helped to USA. Her research has been in ecological form the Association for Economic and economics, environmental policy, social Social Analysis (AESA) which runs interna- economics and sustainable development; tional conferences on Marxian economics and developing curricula and interactive and publishes the journal Rethinking teaching methods that link theory and Marxism. empirical application. Editorial advisors Mario Seccareccia is a Full Professor in the Department of Economics at the University Hassan Bougrine is an Associate Professor of of Ottawa, Canada. He is also a lecturer in Economics at Laurentian University, economics at the Labour College of Sudbury, Ontario, Canada. He has vii Editorial team published numerous articles in refereed James Ronald Stanfield is a Professor of journals and edited books. His research Economics at Colorado State University, interests include economic growth, Fort Collins, USA and President of the finance, public policy and international Association for Evolutionary Economics trade. (1998). He has published five books and over 100 articles in books and journals. Mathew Forstater is a Visiting Scholar at the His present work is focused upon the Jerome Levy Economics Institute of Bard “Nurturance Gap” that is arising in the College, New York, and an Assistant wake of the neo-liberal Great Capitalist Professor of Economics at Gettysburg Restoration; and an effort to integrate the College, Pennsylvania, USA. He has work of “Original” and “New” institu- published articles on employment policy, tional economics. methodology, and the history of economic thought. Eiman Zein-Elabdin is an Assistant Professor of Economics at Franklin and Marshall G.C.Harcourt is Reader in the History of College, Lancaster, Pennsylvania, USA. Her Economic Theory, University of Cambridge; teaching and research interests are in the a Fellow of Jesus College, Cambridge, UK; areas of economic development; environ- and Professor Emeritus, University of mental economics; women, gender, and Adelaide, Australia. He has authored or development; and economic philosophy. edited (singly or jointly) 17 books and has published over 150 articles and notes in Committee of referees learned journals, and chapters in books. H.Sonmez Atesoglu, Clarkson University, His research areas include post-Keynesian Potsdam, New York, USA theory and policy, analytical history of Chris Barrett, Cornell University, Ithaca, New economic theory and intellectual biography. York, USA He was appointed an Officer in the Enrico Bellino, Catholic University of the General Division of the Order of Australia Sacred Heart, Milan, Italy (AO) in 1994. Riccardo Bellofiore, University of Bergamo, Italy Gabrielle Meagher is a Lecturer in Political Christian Bidard, University of Paris X, Economy in the Department of Economics Nanterre, France at the University of Sydney. Her research Harry Bloch, Curtin University of Technol- interests include the future of work and ogy, Perth, Australia employment, waged domestic labor, the Doug M.Brown, North Arizona University, political economy and philosophy of Flagstaff, Arizona, USA commodification, and feminist political Paul D.Bush, California State University, economy. Fresno, California, USA Allen Oakley is an Associate Professor of Michael C.Carroll, Muskingum College, Economics at the University of Newcastle, Ohio, USA Australia. His main publications include a John C.Cross, Point Arena, California, USA number of books, amongst which are Christine D’Onofrio, New York City, USA several on Karl Marx, two on Austrian Robert Dixon, University of Melbourne, economics, one on Joseph Schumpeter and Melbourne, Australia one on the political economy of Adam Robert Drago, University of Wisconsin, Smith and J.S.Mill. He is presently under- Milwaukee, Wisconsin, USA taking an analysis of the role of human Amitava Krishna Dutt, University of Notre agency in reconstructing economic theory. Dame, South Bend, Indiana, USA viii Editorial team Gary A.Dymski, University of California, Howard J.Sherman, University of California, Riverside, California, USA Riverside, California, USA Robert Field, State Government of Maryland, Marie-Claire Thornton, Curtin University of Baltimore, Maryland, USA Technology, Perth, Australia Susan Fleck, American University, Washington Daniel Underwood, Peninsula College, Port DC, USA Angeles, Washington, USA Gladys Foster, Littleton, Colorado, USA Karl-Heinz Waldow, Government of Saxony- Mason Gaffney, University of California, Anhalt, Germany Riverside, California, USA Michael D.Yates, University of Pittsburgh, B.N.Ghosh, University of Science Malaysia, Pittsburgh, Pennsylvannia, USA Penang, Malaysia Eric R.Hake, Mendel University, Brno, Czech Subject committee members Republic Emily P.Hoffman, Western Michigan Univer- Institutional spheres sity, Kalamazoo, Michigan, USA Ann Jennings, Lafayette College, East on, Corporation: Hassan Bougrine, Malcolm Pennsylvania, USA Sawyer, Eric Schutz Evan Jones, University of Sydney, Sydney, Family and gender/feminist political economy: Australia Drucilla K.Barker, Margaret Coleman, Prue Kerr, University of New South Wales, Mary Ann Dimand, Susan Feiner, Deborah Australia M.Figart, Prue Hyman, Joyce Jacobsen, Chidem Kurdas, Hoboken, New Jersey, USA Gabrielle Meagher, Ellen Mutari, Diana Gilberto Tadeu Lima, Universidade Estadual Strassman de Campinas, Brazil Money, credit and finance: Gary A.Dymski, George Liodakis, Technical University of Marc Lavoie, Basil Moore, Phillip Anthony Crete, Chania, Greece O’Hara John Lodewijks, University of New South State and policy: Wolfgang Blaas, Steven Wales, Sydney, Australia Pressman, Mark Setterfield Mark A.Lutz, University of Maine, Orono, Work, labor and production (capital-labor Maine, USA relations): Robert Drago, Deborah M. Gary Madden, Curtin University of Technol- Figart, Ellen Mutari, Paul Phillips, Mario ogy, Perth, Australia Seccareccia, Michael D.Yates Ianik Marcil, University of Montreal, Canada World capitalist economy: Theodore Cohn, Patrick Mason, University of Notre Dame, John T.Harvey, Roberto Patricio Indiana, USA Korzeniewicz, Phillip Anthony O’Hara, Anne Mayhew, University of Tennessee, Immanuel Wallerstein Tennessee, USA Gary Mongiovi, St John’s University, New Subjects York, USA Robin Neill, University of Prince Edward Cycles, waves and unstable growth: James Island, Charlottetown, Canada Devine, David Laibman, Phillip Anthony P.Paraskevaides, Center of Planning and O’Hara, Howard J.Sherman Economic Research, Athens, Greece Development: Chris Barrett, Anthony Paul Phillips, University of Manitoba, D’Costa, Mary Ann Dimand, Amitava Winnipeg, Canada Krishna Dutt, B.N.Ghosh, David Ruccio, Riccardo Realfonzo, University of Naples, John Stoneman, Eiman Zein-Elabdin Naples, Italy Economic anthropology: Mathew Forstater, Mark Setterfield, Trinity College, Hartford, Polly Hill, John Lodewijks Connecticut, USA Environment: Andrew K.Dragun, Mathew ix