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date: 17 February 2019

(p. 651) Subject Index

(p. 651) Subject Index

Addiction, xvi, 87, 248, 258, 261, 264–274
Counterexample to the rational agency model, 264
Neural signature of, 260
Neuroeconomic model of, 248
Agency, 15, 16, 136, 137, 246–248, 252, 255, 257, 264–265, 273
Concept of, 245
Definition, 135
Human, 111
Model of human, 584–585
Neoclassical model and specification of, 139
Rights and the protection of agency, 590
Agent‐based computational economics (ACE), 228–230
Complexity thinking and, 235, 236, 238
Network theories, 232, 233
Agent based model, 376–382
Aggregate
Behavior, 233–239, 387, 403
Consumption, 389, 447
Data, 401–402
Demand curves, 470
Demand, Supply, 4
Determinants of social well‐being, 600
Economic entities, 461
Factors and marginal products, 461
Gross National Product (GNP), 611
Index of social well‐being and wealth, 600
Individuals and the, 390, 405
Manipulation of the interest rate and the, 391
Marginal productivity, 465
Market phenomena, 470
Measures, 393
Modeling and economic theorizing, 88
Money holdings, 387
Outcome, 400
Output, 387
Price level, 398
Processes, 470
Production functions, 389, 456, 461, 465–466
Quantities, 400
Quantities, Economics of, 387
Rational‐expectations hypothesis, 404
Relationship between the individual and the, 392, 494
Social well‐being and individual well‐beings, 595
Variables, 387, 393
Aggregates
Behavior of, 403, 405, 466
Billiard ball causal relations among, 402
Causal interactions of economic, 403
Economic, 398, 400
Macroeconomic, 388–393, 397–400, 404–405
Maximizing individuals and, 464
Physical, 399
Properties of the, 398
Relationships between, 400
Relationships between microeconomics and, 402
Representative‐agent and economy wide, 389
Searlean account of macroeconomic, 400
Analytic results, 374
Animal markets, 249
Approximate,
Claims, 38
Solutions to analytically intractable models, 374
Solutions vs. exact solutions, 374
Truth of theories in actual science, 74
Approximation, 38, 41
Predictive implications and, 80
Aristotelian approach to welfare, 515–519, 521
Arrow‐Debreu, 129
Arrow‐Debreu‐McKenzie axiomatic general equilibrium rational choice models, 228–229
Arrow's Impossibility Theorem, 21, 525–527
Artificial intelligence (AI), 228–229
Assumptions
Data‐generating process (DGP), 425, 438, 440
Evolutionary theory, replication and, 170
Exogeneity, 226–227, 231–232
Game theory, 190
Game theory, rationality and, 163, 237
(p. 652)
Idealizing, 78
Falsity of, 78
Fehr and Schmidt, 201
of Microeconomic model of the firm, 458
Neoclassical, 223, 231
Perfect competition, 458
Perfect knowledge, 103
Robustness of altruistic preferences, 195
Selfishness, 285
Small‐country, 399
Small‐relative‐to‐the‐market, 399
Subjective measures of well‐being, 561, 566, 570, 574
Surrogate models and, 78
Auctions, 66
Assignment of spectrum property rights, 314
Competitive market mechanisms and, 313
Efficiency, 314
Federal Communications Commission (FCC), 318, 321
First‐price, 310, 326
Game theory models of, 323
Laboratory, 320
Mock, 321
Open, 317, 321, 326
Simultaneous, 321
Spectrum, 306, 311, 316, 329–330, 332
Austrian,
Capital theory, 110
School of Economics, 63, 71, 103, 107, 110, 115
Autocorrelation, 426, 433
Automated Trading Desk, 381
Axiom
Cardinality rules, 520
Expected utility theory, 226
Independence, 226
Pareto principle, 526
of Revealed preference theory, 190
Selfishness, 190
Welfare and convexity, 512
Bayesian Averaging of Classical Estimates (BACE), 438
Behavioral,
Addiction, 265–266, 268
Causation of animal, 341, 360
Characteristics of auctions, 319
Data, 210, 255
Economics, xiii, 16–17, 28, 106, 136, 225–227, 230, 234–235, 237, 251, 253, 266
Economists, 348
Evidence, 197, 198, 206, 217
Experiments, 228, 235
Game theory, 225–226, 233, 237
Hypotheses, 159
Observations and experimental approach to game theory, 159
Phenomena, 258, 265
Phenotype and strategy, 166, 168
Psychology, 381
Results of experiments, 200, 214
Rule, 209, 356
Rules and social norms, 179
Sciences, 254
Traits and strategies, 167, 170, 361
Types and game theory, 166
Bid/bidding, 310–311
Auction format and size of, 328
Competitive, 316
First‐price auctions, 326
Joint, 314
Minimum, 313
Open‐or‐sealed, 316
Package, 320–321, 326
Packages or individual, 317
Rules governing, 315, 319
Sealed, 318
Simultaneous, 321
Simultaneous or sequential, 317
Spectrum, 324
Strategic interaction between, 328
Winning, 320
Bioeconomics, 345, 350
Biology, 59–60, 64–65, 75, 246, 434
Causation of animal behavior and molecular, 341, 360
Economics in contrast to, 88
Evolutionary, 58, 63, 66, 236, 338, 345
Evolutionary theories and, 165
Philosophy of, 59
Replicators in, 170
Self‐organizing systems and, 372
Black‐Scholes model of asset pricing, 371–372
Calibration methodology, 402
Cambridge controversy, 36, 465
Capabilities, 526, 542
Altering of, 27
Approach, 518, 522
Calculation of, 521
Central human, 592
Comparison of, 529
Definition of, 517
Human, 580, 591, 622
Human development index (HDI) and, 624
(p. 653)
Human well‐being and, 584
Inferences regarding, 519
Measurement of, 531
as Opportunity sets, 592
Public policy and equalization of, 531
as Well‐being, 591
Capacities, 311–312, 321–322, 326
Account of scientific models, 307, 320
Causal, 328
Computational, 120
Cognitive, 135, 137
Learning, 135
Causal
Assumptions, 471
Claims, 420
Conditions, 472
Equations and level invariance, 413
Equations and modularity, 414
Explanations, 463, 466
Factors, 413, 469
Factor in growth, 472
and Functional notions, 463
Knowledge, 410, 412, 417–421
Knowledge and policy prediction, 412, 416
Principles, 414
Processes, 415, 470–471, 473
Relations, 412, 414, 416–419, 473
Relations between socio‐economic status and health among elderly Americans, 411
Systems and triangular structures, 414
Systems with probability measures, 413
Theory, 416
Causality, 412, 414–417
Complex, 456, 464, 468, 470
Economic and philosophical studies of, 410
Invariance and, 411, 414
Invariance theories of, 411
Irreflexive and asymmetric, 413
Modularity and, 414
Regression tests of, 464
Suppes (or Granger‐style) theory of probabilistic, 411
Tests for, 411
Theories of, 413, 419
Causation, xvi, 37, 42–43, 48–52, 290–293, 416–419, 421
Billiard ball, 397–398, 405
Deterministic case, 292–293
Inference from experimental data, 401
Invariance and, 410, 420–421
Granger, 10
Hendry, 420
High level methodology and, 290
Hoover, 420
Indeterministic case, 293
Mutual, 468
Probabilistic dependence and, 416
Test for, 412
Ceteris paribus, 64, 78
Clauses, 41, 63, 81
Conditions, 292
Truth conditions for, 6
Chinese room argument, 229
Classical utility theory, 541–542
Communitarian institutions, 617
Complex systems and nonlinear dynamics, 232
Computational
Biology, 372
Complexity, 376
Complexity and technological constraints, 375
Device, 377, 382–383
Economics, 371–377, 379–381, 383
Economists, 377
Load problems, 376–377
Methods, 373, 376–377
Models, 380–382
Physics, 372
Power, 377, 381
Processes, 373
Resources, 376–377
Solution, 376
Systems, 382
Techniques, 379
Techniques in neuroeconomics, 372
Theoretical economics (CTE), 373–377
Consequentialism, 217
Coordination games, 255, 273
Correlation,
Political and civil liberties and growth in GNP, 620–621
Spurious, 430
Cowles, 115, 123–124, 126–130, 132–133, 138, 141
Commission, 114, 402
Economists, 114, 127
School, 126, 141
Cravings, 261, 268–269
Cultural evolution, 354–356, 358
Game‐theory analyses of, 362
Data
Aggregate, 402
Analysis, 371, 436
Based automation, 441
Based econometric modeling, 442
Based model, 382, 442
(p. 654)
Correlations, 412
Cross‐country, 468
Cross‐sectional, 382, 431, 438, 446
Dependence, 425
Diagnostic testing and, 432
Distribution of, 434
Dual use of, 425–426, 429, 432
Economic, 382, 401, 425–427
Economic experiments, 401
Economic theory, construction of computational models and, 376
Empirical, 383
Experimental, 401
Forecasting and, 432
Hypotheses and, 467–468
Interpretation of models and, 456
Local patterns in, 426
Microeconomic, 391
Mining, 84, 424–447, 471
Mining algorithm, 448
Mining races, 445–446
Mining, risks of, 428
Modeling strategies and, 427
New, 431, 447
Nonexperimental, 425–427, 429, 439, 447
Observational, 426, 428, 434, 436
Observed, 427
Partition, 442
Raw, 382, 435
Real‐world, 383
Regression analysis and, 463
Repeated use of, 426
Sample selection and, 429–430, 439
Sets, 373, 382, 442, 444, 446
Simulated, 383
Snooping, 425–426
Subsamples, 440
Survey, 469, 471
Time‐series, 382
Theory and, 401, 431, 433
Transformation, 440, 442
True model and, 440–441
Data‐generating process (DGP), 425, 439, 440–442, 444–448
Discovery of, 440
Local, (LDGP), 432, 436, 442–446
Spectrum, 425–426, 436
True, 427, 429, 438, 446
Underlying, 426, 433, 436, 437
De‐idealization, 79, 84, 310–311, 321, 324–326
De‐isolation and, 84
Debrevian economics, 249
Deontology, 217
Depiction of human behavior and decision theory, 359
Design
Bottom‐up, 229
Dopaminergic system, 271
Economics, 307
Experimental, 280, 284–286, 288, 292, 294–295, 297
FCC auction, 314, 316, 326
First‐price auction, 323
Importance of auction, 313
Institutional, 92, 307, 324, 326, 330
Mechanism, 106, 114, 123, 127–129
Open auction, 322
Post‐test, 289
Reincarnation theory, 358
Spectrum auction, 307, 311, 312, 331–333
Development
Activists, 585, 620
Democracy, poor countries and economic, 591
Economics of, 615–616, 620
as Economic growth, 607
Economics, 455, 464, 466, 469–471, 585, 596, 603, 607, 610–611, 615
Freedom and, 620
GNP as an index of economic, 608, 619, 622
Growth and, 473
Human Development Index (HDI) and, 624
of Modern capitalist system, 462
Poor countries and economic, 584
Public policies and, 585–586
Rural poverty and, 469
Sustainable, 600, 619–621
Dictator game, 80, 191, 195, 202, 212–214
Discovered preference hypothesis, 227
Diversity
Cardinality and, 520
Cultural, 516
Measurement of, 520
Dopaminergic reward system, 259, 272 (see also Reward system)
Econometrics, 401–402, 424, 426–427, 429, 431, 433, 446–447
Data mining and, 425–427, 430, 439, 447
Empirical results in, 447
Founders of, 412, 415
(p. 655)
Haavelmo's account of, 401
Health and status, 410
Methodologies and calibration methodology, 402
Modeling, 435–437, 440–444
Modeling algorithms and, 445
Post estimation model evaluation, 432
Probability foundations of, 456, 468
Research, 434
Results, 434–435, 439
Statistical inference in, 436
Statistics and, 426
Techniques, 411
Theory of, 425
Economic development, xv, 584, 600, 608
Democracy and, 591, 621
Government and, 609
GNP as a measure of, 608, 619
Human Development Index (HDI) as a measure of, 624
Population growth and, 615
Process of, 601
Theory of, 608, 610
Economic Man /Homo Economicus, 23, 106, 554, 587–589
Economic growth, xiv, 23, 49, 100, 126, 438, 455
Common processes in, 464
Development as, 607
Labor markets and, 477, 479
Poverty and, 614
Prerequisite for, 131
the Quality of, 609
Redistribution and, 612
Role of institutions on, 469
in Taiwan and South Korea, 469, 611
Trickle down effect of, 609, 611
Education, 80, 104–105, 471, 580
American higher, 113
Black children, South Africa and, 623
Determinants of well‐being and, 601
Development economics and the role of, 470
Expenditure on, 598
Female, 585, 614
Fertility and female, 614–615
Growth in national wealth and, 601, 610
Labor markets, hiring and, 485
as a luxury, 601
Performance of children, 624
Primary, 588, 597, 609
State dominated structure of, 109
State supply of, 601
Einstein‐Smoluchowski theory, 291
El Farol bar problem, 236
Ellsberg paradox, 199
Emergence, xv
Institutional structure, 90
Weak, 379
Emotions, 338, 357, 359–360
Commitment devices, 347–348
Positive, 562
Empathetic,
Equilibrium, 556
Identification, 553
Preferences, 551–556
Scale, 555
Utility function, 554–555
Empiricism, xv, 36, 113, 115, 440
Econometric, 127
Logical, 5, 6, 38, 41–47, 48, 57
Van Fraassen's constructive, 327
Equilibrium, 63, 100, 110, 127, 133, 136–137, 143, 246, 256
Basin of attraction and long run, 375
Bayesian Nash, 310, 324
Biological, 62, 64
Competitive, 64, 82, 133, 138, 201, 321
Determinants of growth and, 455
Dynamic convergence to, 138
Empathetic, 556
Evolutionary, 64, 338
Explanatory models and, 460
Fairness, 203
Fixed point, 126
Harris‐Todaro model and, 495–496, 499
Interdependence conditions of, 114
Joint, 255
Labor market, 478, 499
Learning of and Game Theory, 19
Marshallian partial, 115
Money and, 397
Monopolistic, 82
Neoclassical, 109, 138–139
Neoclassical growth theory and, 463
Partial, 113, 125, 128, 250, 495
Price, 320
Reflective, 216
Sequential, 257
Stability of, 463
Static, 138
Subgame perfect, 191
Unemployment as an outcome of, 485
Wage distributions and, 480
Wage equalization and, 492
(p. 656)
Walrasian, 114–15, 128, 138, 143
Zero‐communication information, 436–437
Ethical
Axioms, 596
Considerations and determinants of utilities, 597
Evaluation of social states and democratic voting rules, 602
Foundations of economics, 582–584
Foundation of Human Development Index (HDI), 624
Theories and economics, 583, 624
Theories and plurality of human values, 595
Theories and social states, 590–591, 598
Values, 599
Values and social well‐being functions, 595
Ethics
Aristotelian, 601
Development and, 609
Differences in, 581
Diverse, 580
Economics and, 581–582, 584
Facts vs., 584, 586
Human rights, economics and, 584, 591
Individual and social well‐being and, 593
Modern economics and, 584, 591
Perceptions of the world and diverse, 581
Poverty and, 584, 622–623
Evolutionary explanations in economics, 337–340, 345, 350, 352–353, 362
Tinbergen's four questions, 340–345
Ultimate and proximate causes, 339–340, 352–356, 360–361
Evolutionary
Account of Nash equilibrium, 169
Agent, 238–240
Cultural dynamics, 251
Dynamics, 257
Dynamic and replicator dynamic, 346
Economics, 225, 233, 235–236, 238
Ethology, 254
Games, 21, 166, 170, 256–257
Genetic dynamics, 251
History of prosocial behavior, 190
Models, 159, 165, 168, 171
Process, 239
Psychology, 381
Social dynamics, 251
Theories, 165
Theory replication, 170
Exogeneity
Super‐(weak), 415
Weak, 415
Experimental
Auction design, 314
Approach to game theory, 159, 172
Behavior, 179
Conditions, 285
Data, 176, 179, 184, 234, 293, 296
Economists, 173, 184, 284
Evidence, 177–178, 184, 298
Game theory, 238
Games, 190, 194, 197, 204, 212, 215
Games and framing effects, 360
Investigation and robustness, 193
Investigations of social preferences, 191
Isolation, 79
Knowledge, 299
Method, 289
Models, 293
Neuroeconomics, 225
Relational robustness, 195
Research, 286, 290
Results, 190–192, 208, 214, 233, 285, 297, 299
Statistics, 426
Work on social preferences, 189
Experimentalists, 315–316, 318, 321
Auction design, 314
Explanation, 5, 17, 36–41, 49–52, 84, 101
Ad‐hoc, 86
Aggregate behavior, 239
Biological, 7, 62
Causal, 292, 325, 463, 466, 473
Cause and, 48
of the Causes of growth, 456
Confirmation and, 5, 8
Economic, 94, 469
Eductive, 394
Evolutive, 394
General, Situational, 28
How‐actually, 86
How‐possibly, 86, 383
Marginalist, 462
Neoclassical, 101
Neoclassical growth theory, 468
Neoclassical growth tradition, 463
Non‐human interactions, 250
Non‐self‐interested aspect of behavior, 214
Ontological constraint on, 89
(p. 657)
Path‐Dependent, 14
Partial/possible, 86
Prediction and, 263
Prosocial behavior in laboratory games, 196
Real world phenomenon and causal, 325
Regularities and, 460, 463
Scientific, 396
Selection process and, 169
Shared principles and, 71
Synchronic or diachronic frames of, 225–226, 236–238
Teleological, 389
Ultimatum games, 174
Phenomenon, 86
Ultimate and proximate causes in relation to the same, 344, 353
Exxon, 395
Fairness
Equilibria, 203, 204
In Game theory, 174, 178, 180
Justice and, 216
Norms, 211
Preferences for, 195
Reciprocity and, 190
Federal Communications Commission (FCC), 307, 312–316, 318–321, 326–327, 332–333
Fiscal policy, 388
Freedom
Cardinality rule and, 520
Of choice, 531, 533
Constituents of poverty and, 517
Development and, 620–621
Evaluation of, 521
of Expression, 590
Flexibility and, 592
Functionings and, 516
Indifference between no choice situations and, 519
Independence and, 520
Kantian approaches/tradition and, 515, 519
Maximization of, 519
Measurements of, 519–521
Personal, 108
Rights and, 512, 517, 521, 528
of Speech, 592
Strict monotonicity and, 519
Will and, 111
functional Magnetic Resonance Imaging (fMRI), 196, 198, 260
Experiments and 359
Functionings (welfare), 515–19, 521, 527–528, 530–532, 592–593
G‐learning, 261–262, 264
Gambling addiction, 266, 270–271
Game determination, 256
Game theory, 11, 13–16, 18, 19, 21–23, 65–66, 104, 106, 114, 118–119, 123, 128, 132, 138, 159, 163, 233, 249, 284–85, 306, 310, 470
Analytic narratives, 469
Auction designs based on, 314
Behavioral, 225–227, 233, 237
Behavioral Ecology and, 19
Biology and, 18
Classical, 225, 230–232, 237, 256
Common knowledge in, 100
Conventional assumptions of, 190
Convergence of populations on Nash equilibria and, 338
Cultural evolution and evolutionary, 355, 362
Decision theory and, 161
Displacement of Walrasian model by, 137
Equilibrium behavior and, 173
Experimental, 159, 238
In Context of behavioral sciences, 29
Introduction of complexity into models, 26
Morgenstern, O., and role in invention of, 103
Nash, 141
Noncooperative, 256
Personal utility and, 28
Political applications of, 170
Proximate causes in evolutionary, 350
Public choice models, 23
Replicator dynamics and evolutionary, 347
Research, 235
Significance of, 127
Spectrum auction and, 323, 332
Gross Domestic Product (GDP), 387, 389–390, 426, 438
Conditional convergence and, 459
Deflator, 393
Growth, 398
Mauritius, 472
True, 427
General algebraic modelling system (GAMS), 375
General equilibrium theory, 6, 10, 36, 41–42, 64, 129, 132–133, 228–229, 232
Augmented Solow model and, 458
Computable models of, 11, 66, 372, 489
First theorem of welfare economics and, 4
Microeconomic account of, 387
Monopolistic competition and, 82
Neoclassical, 6, 138
(p. 658)
Perfectly competitive markets, welfare optima and, 20
Rational choice models, 228
Second theorem of welfare economics and, 4
Topology, fixed points and, 55
Walrasian, 114–115, 128, 138, 143
Genes, 46, 61–62, 170, 360, 362
Behavioral traits and, 167, 338
Human behavior and, 338
Natural selection and, 343
Replicators and, 170
Genetic
Algorithms, 381
Constitution and response to environmental stimuli in warblers, 339
Determinism, 338, 343
Information‐theoretic accounts, 382
Material and control of ontogenetic development, 353, 362
Recombination and natural selection, 340
Glutamate, 268–269
Gross National Product (GNP),
Democracy and growth in, 620
as a Development index, 608
as an Indicator of economic progress, 585
as an Indicator of economic progress, criticisms of, 601, 622
Inequalities and distribution of, 611
and HDI as measures of social well‐being, 619
Political and civil liberties and growth in, 620–621
Poverty and growth in GNP, 609
Sub‐Saharan Africa and decline in, 619
Growth
Accounting models, 459, 465, 472
Aggregate production functions and, 465
Causes of economic, 455–456, 465
Determinants of, 455
East Asian, 472
Economic determinants of, 460
Education as a necessary requirement for, 470–471
As an explanandum, 457
Explanation of, 455
Export process zones (EPZs) and, 472
Government consumption and, 459
Human capital and, 466
New institutional economics and, 469
Labor markets and, 494
Openness to trade and, 472
Political systems and, 473
Rate, 459
Rate of the population, 457, 459
Reduction of poverty and, 495
Regularities in the factors causing, 464
Sectoral, 493
Socioeconomic determinants of, 469
Social factors and, 460
Solow, 457
Taiwan's economic, 478, 497–498
Variables, 467
Haavelmo distribution, 442
Harris‐Todaro model, 478, 488, 491, 495–496, 498–500
Happiness, xiii, 541
Measurement of, 561
Nonsatisfaction of preferences and, 565, 568
As a state of mind, 566
Studies, 542
Subjective assessment of, 563
Subjective measures of, 560, 562
Health, xv
Bundles of goods and derivation of, 548
Capability sets and inclusion of, 592
Care, 594, 601, 606–607, 610
Care in the Indian sub‐continent, 604
Consequences of stress, 564
Desirability of good, 592
Human capital and improvements in, 610–611
Improvements in productivity and investments in, 611
Insurance, 490
Measures of mental, 570
Measures of public, 588
Mental, 562
Policy choices relevant to, 22
Programs and poor countries, 597
Public, 587, 609, 610
Reproductive, 585, 609
Well‐being and, 564–565, 592–593
Homo Economicus / Economic Man, 23, 106, 554, 587–589
Human capital, 80, 117–118, 126
Accumulation of, 21
Aristotelian ethics and the economics of, 601
Augmented Solow model and, 458
Competitive economies and distribution of, 625
Economic development and, 610
Growth and, 466
Health and, 611
Knowledge as, 125
Separation of physical capital from, 458
Human Development Index (HDI), 518, 593
Criticisms of, 619, 624
(p. 659)
Ethical criteria of, 620
GNP and, 619
Lack of ethical criteria in, 624
Measure of social well‐being and, 619
Sub‐Saharan Africa, GNP and, 619
Human needs, 516
I‐RISA model (of addiction), 270, 272
Idealization, 26, 85, 328, 376, 391
Applicability conditions of a model and, 81
Approximation and, 308
Economic models and, 70
Economic models and excessive, 373–374
False/ Falsehoods, 71, 78–79, 83
Folk‐psychology and, 360
Isolation by, 93
Scientific theorizing, 69
As Strategic falsehoods, 78
Walrasian auctioneer and, 294
Inclusive wealth
Definition of, 600
GNP, HDI and, 619
Political and civil liberties and, 621
Social well‐being and, 600, 619–620
Sustainable development and, 600, 619
Indifference between no choice situations, 519
Individual and Social Well‐Being, 593
Inequality, 178
Advantageous, 175
Aversion, 174, 180, 198, 214–215
Growth and, 470–471
Labor income, 477
Measures of income, 480
Model of Fehr and Schmidt, 200
Disadvantageous, 175, 200
Models of aversion to, 175
of total incomes, 477
Inexact
Laws, 56, 59, 60, 63, 64
Science and economics, 80, 401
Inexactness, 38, 41–42, 47–48, 52
Isolation and, 80
Predictive implications and, 80
Separateness and, 81
Inflation rate, 387
Information, 15, 17, 26, 49–50, 52, 73, 92, 100, 102–105, 117, 119–121, 125, 130, 134–136, 140, 142–143, 161, 172, 179, 194, 201
Asymmetric, 14, 22, 29, 85, 89, 127, 129, 132, 137–138, 204, 210–212, 247, 332, 455, 469
Availability of, 16
Bid, 316
Brain, 257, 349–350
Capacity to transmit, and money, 81
as a Commodity, 116, 127, 133–134, 141
Complete, 231
Compression, 383
Computation, 119, 129, 134, 143
Context‐specific, 289
Data and, 382
Databases, 482
De‐centralization of, 129
Differences, 211
Economics of, 106, 115, 121, 124, 127–129, 131, 133, 137, 140, 142–143
Efficiency, 140
False, 14
Full, 14
Full rationality and, 172
Game Theory and, 14, 163, 170
Generation of truthful, 91
Genetic material and, 339
How‐possibly explanation and, 86
Imperfect, 121, 132
Incomplete, 231, 257
Inductive index, 118
Irrelevant, 176
Knowledge and, 102, 105, 124
Market as a processor of, 99, 109, 124–126
Mathematical expectation of a variable, conditional on available, 404
Maximum quantity of useful, 23
Modeling of, 124
Nash equilibrium and, 14
Neoclassical paradigms of, 116, 129, 138–139
Neural mechanisms, 197, 199
Nongenetic transmission of, 355
Open auctions and, 321
Perfect, 66, 78, 132
Predictor of behavior, 201, 210
Prices and, 133, 139
Privacy and, 24, 294
Private, 130, 132
Public good, 129
Real systems and, 77
Revelation of, 130
Sensory, 268
Sets, 171, 404
Space, 130
Theoretic accounts of genetics, 382
Theoretic accounts of physics, 382
Theory, 102, 117, 130
Truthful, 78, 93, 94
Unrealistic symmetries of, 11
Value of, 102
Way the world works (www) and, 88
(p. 660) Innovation
of Economics, 10
Economics of, 106
Epistemological, 124
Labor economics, 125
of Mechanism design, 114
Instrumentalism, 43–45, 59
Antirealist, 71
Interest rate, 431
International Labour Organization (ILO), 479, 483, 486–488
Interpersonal comparisons, 20–21
Common, 555–556
of Utility, 547, 549–550, 552, 555
of Well‐being, 540, 583, 595
Interpersonal Utility,
Comparison, 170
Measurements of, 523
Methodology of, 28
Invariance, 410–416, 418, 420
Causation and, 410, 420–421
Hendry's, 416
Level, 413
Modularity and, 414
Probability structure, 427
Weak exogeneity and, 415
IS‐LM‐aggregate supply models, 404
Isolated state, model of, 71
Kantian,
approaches/tradition to welfare, 20, 24, 515, 519–521
Moral Commitments, 21
Labor
Codes, 483
Costs, 483
Demand curve, 493–494
Demand for, 481, 492–494, 496
Demand elasticities, 484
Diminishing marginal revenue product of, 481
Earnings, 487
Force, 476, 486, 494
Income, 477
Income inequality, 477
Infinitely elastic supply curve of, 494
Legislation and costs of, 483
Marginal product of, 488, 495
Marginal revenue product of, 484
Movement of, 477, 500
Price of, 494
Productivity, 484, 497
Productivity of and investment in nutrition and health, 611
Shortages, 498
Supply of, 481–482, 492, 494–497
Technology adapted to, 487
Turnover, 485
Unlimited supply of, 494, 497
Labor markets,
Antipoverty efforts and, 477
Conditions, 478
Developing countries and, 481
Disequilibrium in, 493
Dualism, 478–81, 486, 493
Dualistic models of, 477, 480, 484, 495
Economic development and, 477
Equilibrating forces in, 486, 497
Equilibrium, 499
Export sector and, 493
Formal sector, 481, 491, 495–497, 501
Fragmentation, 479
Harris‐Todaro model of, 495
Inelastic nature of, 486
Informal sector, 478, 481, 491, 495, 501
Integrated models of, 478, 490–493, 496–497, 500–501
Interventions in, 484
Market‐clearing models of, 478, 481–482
Modeling, 479
Models of, 476
Models of segmentation, 477, 493, 495–496, 500–501
Neoclassical model of, 493
Policies, 476, 501
Profit maximization and wages in, 485
Segmentation, 476, 479–481
Taiwanese, 498
Model of unlimited supply of, 493–494
Wages and, 480, 482, 485, 501
Wages and entry into, 481–482
Lagrangian multipliers, 371
Land use, economic models of, 372
Laws, 5–8, 10, 36–37, 39, 41, 43, 46–51, 59–63, 65, 70–71, 115, 299, 381
Approximate, 38
of Arithmetic, 546
in Biology, 61–62
Codified, 522
Constitutional, 522
Discovery of invariant universal, 290
Economic, 51, 56–57, 81, 462
Exact, 41, 59–60
Inexact, 38, 41–42, 47, 52, 59, 80
(p. 661)
Mathematical universalities as, 462
of Mechanics, 403
Minimum wage, 483, 495
Regularities and, 81
Social variables, growth and, 459
Three paradigms of Neoclassical information and, 116
Universal, 5, 50
Learning, 111, 170, 235, 297
Animals, 19
Associative, 268
By‐doing, 129, 132
Capacities, 135
Culture and, 191
as a Driver of cultural evolution, 354
Evolution and, 165, 171
Evolutionary game theory and, 354
Evolving rules and, 89
Fixed rules and, 89
Maturation and, 344, 355
Models, 171–172
Molecular accounts of, 261
Neural, 264–265
Ontogenetic development versus evolution and, 355
Process, 262
Public Choice Models and, 23
Reward, 268
Reward‐system, 260
Rules, 355–356, 358
Sociopathic behavior and, 199
Trial‐and‐error, 227
‘when'’, 262
Lucas critique, 388, 392, 399–400, 402
Macroeconometrics, 402, 442
Macroeconomics, xiv, 10, 131, 132
Antireductionist, 405
Applied, 400
Characterizations of, 387
Concerns of, 386
Data sets in, 438
Division between microeconomics and, 386–387
Empirical, 402–403
Intentions of individuals and, 398
and the Interaction of policy makers with the aggregate economy, 398
Keynesian, 115, 126, 131
Methodological individualism, 388
Microfoundations of, 16–17, 28, 46
New classical, 233
Optimization problems and 400
Practical, 388
Relationship between microeconomics and, 387–391, 393
Malnutrition, 583, 611, 625
Marginalist explanations, 462
Markets, xv, 15, 21, 23, 57, 113, 125, 140, 233, 240, 257, 382
Aggregate, 470
Agricultural product, 493
Clearing prices, 379
Communication, 313
Competitive, 133, 313
Conditions for the clearing of labor, 481–486
Difference between real‐world and hypothetical, 294
Disequilibrium in labor, 493
Distance from, 472
Dualism in labor, 480, 486
Dualistic labor, 477–80, 495
Economic development and labor, 477
Efficient markets hypothesis, 66, 126, 133, 142
Equilibrating forces in labor, 492, 497
Equilibrium of labor, 478, 499
Experimental, 296
Failure, 455
Financial, 20, 142, 374, 381
Formal‐informal linkages in labor, 491
Formal sector labor, 481, 500–501
Fragmentation of labor, 479, 481
Free, 108
Harris‐Todaro labor, 495
Ideas and commodities, 125
Incomplete, 127,
Informal sector labor, 481, 495, 501
Instabilities in, 14, 64
Integrated labor, 478, 491, 493, 496–497, 500
Knowledge conveyed by, 111
Land, 379
Monopolistic, 14
Monopoly, 113
Nonhuman animals and, 19
Optimal pricing in, 379
Perfectly Competitive, 14, 20
Policies, labor, 476, 501
Rural credit, 469
Segmentation of labor, 476–477, 479, 493, 495–96, 500–501
Simple, 469
Taiwanese labor, 498
Undifferentiated labor, 476
Wages and labor, 478, 480–481, 485–486, 495
(p. 662) Mathematica, 375
Mathematical
Economics, 372–373, 377
Languages, 375
Model, 374
Techniques, 377
MATLAB, 375
Mechanism design, 23, 28, 106, 114, 122–123, 127–129
Merit goods
Public institutions and, 603
Restriction on utility and, 596
Rights as a, 596
Methodological individualism, 16, 18, 23
Methodology, 10, 15, 253
Auction design, 321
Calibration, 402
Economic, 10, 46–48, 52, 69, 70, 88, 92
Experimental economics, 280
Falsificationist, 56
High‐level, 290
Individualist, 389
Instrumental, 295
Low‐level, 293
Microeconomic theory and, 18
Mid‐level, 286, 288
Normative, 280, 281, 285–287, 290, 299
Plott's, 322
Realist, 93
Revealed preference theory and, 16
Scientific, 92
Traditional issues in, 92
Microeconomics, 55, 104, 115, 125–126, 160, 246, 259
American, 113
Fundamental theory of, 41
Laws of, 6
Methodological fundamentals of, 41
Models of, 306
Modern, 103
Unification of macroeconomics and, 233
Microfoundations, 389, 402, 404
Fundamental notion of, 394
Ideology of, 388
of Macroeconomics, 388, 405
of money, 396
Macroeconomics and the need for, 388–389
Microprocessing, and Innovation of Economics, 11
Military,
Decision theory and, 106, 114
Funding of science, 113
Intelligence, 102
Organization of science in America and, 114, 131
Models, 7, 10–13, 15–16, 18, 21–22, 25–26, 39, 41, 48, 66, 74–76, 78, 89–90, 113, 118, 130, 133, 135–136, 140, 180, 212, 245, 281, 428, 432
Abstract, 371
Ad‐hoc features in, 71
Agent‐based, 376–382
Agricultural land use, 79
Applied, 437
Approximate solutions to, 374
Arrow‐Debreu, 114
Association, 261
Augmented Solow, 458
Austrian capital theory, 110
Behavioral ecology, 19
Benchmark, 439
Calibrated, 403
Capacity and, 312
Causal, 460, 463, 468, 471–472
Choice, 142
Closed economy, 83
Cognitive, 127, 139
Collective intentionality, 399
Commitment, 347–348, 356–357
Complexity and, 374
Computational, 380–382
Computational demand of, 377
Computational general equilibrium, 372
Computational theoretical economics (CTE), 375
Computationally tractable, 373
Cosmological, 247
Credible worlds, 309–310, 328
Crowding, 478, 493
Data‐based, 382–383, 440
Development, 26
Dual economy, 488
Dualistic labor‐market, 477, 491, 493, 495, 498
Econometric, 402, 424, 431, 439, 440–443
Economic, 81, 89, 94, 134, 255, 307, 309, 383, 447, 484
Economic theories and, 44–45, 70, 73, 87–88, 255
Economic models, idealization and, 70, 373–374
Economic systems and, 372
Efficiency wage, 485
Empirical, 442, 460
Endogenous growth, 21–22
Equilibrium, 250, 455
Estimated, 432–433, 443
Evaluation, 431–432
Evolutionary, 159, 165, 170, 354, 362
Evolutionary game theory, 350, 352
Evolutionary processes, 353
(p. 663)
Experiments and, 80
Explanatory, 460
Exploratory use of, 380
Falsehood in, 69, 73, 84
Fehr‐Schmidt, 200–203
Forecasting, 439, 441–442
Formal‐sector labor, 491
Game Theoretic, 13–14, 250, 256, 469
Game theory auction, 332
General Equilibrium, 11
Generalized unrestricted (GUM), 443
Global stability and dynamic, 375
Gravity, 22
Grossman‐Stiglitz, 133
Growth, 494
Growth‐accounting, 459
Harris‐Todaro, 478, 484, 488, 491, 495–496, 498–500
Hausman‐McMullin, 321
Heckscher‐Ohlin, 22
vs. High‐level theories, 288
Human behavior, 174
Idealized, 391
Imperfect competition, 114
Incompleteness and, 80, 85
Increasing returns to scale, 470
Inductive inference, 126
Inequality aversion, 175
Informal sector labor, 478, 488, 501
Innovation, linear model of, 131
Inputs, 432
Integrated labor‐market, 478, 490–493, 496–497, 500–501
Idealised, 81
Information, 124, 129, 135, 140
Intersectoral‐shifts, 493
Intractable, 11
IS‐LM‐aggregate supply, 404
Keynesian macroeconomic, 484
Knowledge, 112, 119, 126, 130, 133, 142, 144
Labor market, 476–77, 479, 500–501
Learning, 171–172
Leontief input‐output, 377
Lewis, 493–494, 497
Machine logic, 118
Macroeconometric, 392, 402
Marginalist, 4
Market, 110, 143
Market‐clearing labor‐ market, 478, 481–382
Mathematical, 59, 63, 102, 117, 121, 126, 140, 374
Markov process, 10
Metaphors and, 80
Microeconomic, 23, 310, 324, 388, 402, 485
Mid‐level experimental, 293
Mill/Cartwright capacity view of, 325
Minimum‐wage, 493
Modern‐sector‐enlargement, 493
Neoclassical, 104, 109, 116, 120, 129, 136–139
Neoclassical growth, 459–61, 466, 468–469
Neoclassical labor, 493–494
New growth theory, 464
Normative and Descriptive, 380
Oligopoly, 232
Open formula view, 322–326
Opportunity cost‐minimization, 17
Orthodox, 136
Outputs, 432
Overparameterized, 443–444
Parsimonious, 440
Pragmatic, 115
Preferred, 440
Probability, 401, 442
Properties of, 77
Public Choice, 23
Rabin, 203–204
Rational choice, 159, 228
Rational expectations, 133, 236, 404
Representations and targets, 75
Representative agent, 46, 374, 389, 402, 404, 464
Resemblance to real systems and, 76, 78
Rival, 438, 441, 443, 447
Science as a disordered plurality of, 263
Scientific, 75, 288, 307, 391
Scientific methods, 288
Search, 396–397, 447
Segmented labor‐market, 477, 480, 493, 495–496, 500–501
Segregation, 379
Selection, 426, 441–442, 444–445
Semantic, 119
Simplicity and, 82
Simulation and, 372
Single sector, 496
Social reality and, 94
Solar system, 83
Solow growth, 456–458
Specification, 433
Standard maximization, 116
Statistical, 436
Strategy, 430, 436
Structural, 447
Structuralist view, 308
Surrogate systems, 76, 85, 92
Theoretical, 77, 79–81, 91, 281, 425, 427
Time series, 432–433
Timing, 261
(p. 664)
of Top‐ down centrally planned economies, 379
Toy, 133
Tractability assumptions and, 82
Traditional theoretical economics (TTE), 375–376
True, 440, 468
Two country trade, 83
Ultimate causes in evolutionary processes, 354
Uncertainty, 117, 427–29, 432, 436–37, 439, 441, 446–447
Unifying, 87
Unlimited‐ supply‐of‐labor, 493
Unrealistic, 68, 78–79, 81, 93
Unrealistic assumptions and, 71–73
Unrestricted, 447
Wage differential, 493, 495
Wage dualism, 480, 491, 493, 495, 500–501
of wages and employment, 478, 481, 485–486
Walrasian, 127–128, 137–138
Modern utility theory, 541–543, 545
Monetary
Character, 396–397
Expected payoff, 197
Gains, 283
Incentives, 285–286, 294–295
Payoffs, 189, 192, 198, 200, 202–203, 205, 211, 214, 295
Policy, 388
Properties, 396
Resources of the individual, 398
Stakes, 191, 194
Units, 390
Monetization, 397
Money
Character of, 397
Collective intentionality and, 396
Concave utility functions and, 546
Constitutive rules and, 396
Decreasing marginal utility of, 545
Demand, 387
Empathetic preferences and extraction of, 552
Holdings of aggregate, 387
Human motivation and, 542
as an Institution, 397
Microfoundations of, 396
Paper, 396
As a resource, 522
Risk aversion and, 545
Search models of, 396
Speculative demand for, 387
Well‐being and, 568
Monotonicity, 519
Monte Carlo Simulation, 429, 445
Moore's Law, 377
Multiple equilibria, 165, 255, 332
Occurrence of in systems, 380
Narrative persons. See Selves
Nasdaq, 381
Nash equilibrium, 14, 19, 101, 123, 130, 135, 137, 143, 159, 162–165, 168, 170–172, 207, 209, 231, 283, 346–347, 357
Bayesian, 310, 324
Convergence to, 173
Cooperative norm and, 181
Evolutionary account of, 169
Evolutionary dynamic and, 346
Refinements of, 164
Strict, 168–169
Tit‐for‐tat, 205
Natural capital, 600
Degradation of, 619
Rural lives and the role of, 615–616
Natural Selection, 46–47, 60–65, 165, 167, 172, 250, 273, 344, 352, 355, 358
Tinbergen's classification and, 343
Ultimate cause and, 339–340, 346, 349
Negative reciprocity, 194, 198–99, 214–16
Neoclassical economics, 99, 100–101, 103–105, 107, 113, 115, 124, 132, 134, 136, 143–144, 228, 290
Epistemic approach to, 116
Information, 129
Neoclassical growth theory, 455–461, 463, 465–469, 471, 473
Description of equilibrium conditions, 463
Jevons's view of, 462
Regularities and causes, 463
Solow, 465
Neoliberalism, 108–110, 112
Hayekian, 143
Postwar, 115
Neural, 264
Activity, 235
Basis for human behavior, 235
Circuits, 199
Damage, 199
Evidence and Phenomenon Robustness, 199
Functioning, 235
Mechanisms, 196–197, 199, 349
Networks, 228–229
Processes, 269
Properties of a person, 265
Regions, 197
Signature of addiction, 260
Structures, 200
(p. 665) Neurobiology, 197
Neuroeconomics, xvi, 17, 24, 28, 106, 225, 233–235, 237–238, 245, 248, 258–259, 263–265, 271
Glimcher's version of, 348–350
Subset of economics, 132
Neuroscience, 235, 248, 254, 258, 263, 271, 349
Imaging techniques, 234
Relation to neuroeconomics, 348, 359
New institutional economics, 71, 469
New York Stock Exchange (NYSE), 381
Nonlinear business cycles, 372
Occam's Razor, 481, 500
Omnibus Budget Reconciliation Act, 313
One shot public goods games, 192, 207
Ontogenetic
Development, 341, 343–345, 352–353, 355, 358, 362
Development of organisms and proximate causes, 340
Ontology, xv, 43, 45, 71, 247, 312, 327
Economic, 70, 81, 87
Isolation, 71
of macroeconomics, 389–392, 397, 400
Physics, 87
Tractability and, 82
Opportunity sets, 519–520, 530
Organization theory, 106
Personal rules, 266–67, 272–273
Philosophy, 100–102, 104, 110, 114, 134, 144, 245, 247, 300
of Chemistry, 73
Developments in, 35
of Economics, 248–249
Empirical approach to, 39
of Geology, 73
Issues in, 3, 4–9, 11, 21, 26, 28
Logical empiricist, 48
Mind, 290
Political, 189, 215
Postpositivistic, 69
Pragmatism and, 248
Scientific realism in, 74
Picoeconomics, 248, 258–259, 261, 264
Poverty, 22, 23, 477, 480
Definition of human needs and, 517
Economic growth and reduction of, 495
Labor market interventions and, 484
Traps, 21
Urban informal sector of developing countries and severity of, 478, 499–500
Welfare and, 517, 528
Predesignationist rule, 427
Predictor‐valuation (PV) model, 262–264, 267, 270
Preferences, 565, 567
Altruistic, 552
Attitudes to risk and, 545
Cardinal utility functions and, 550
Empathetic, 551–556
Inconsistency with Von Neumann and Morgenstern theory, 546
Nonsatisfaction of, 565
Personal, 553–554
Risk‐loving and, 545
Satisfaction of, 512, 566–567
Scales, 555
Spiteful, 552
Sympathetic, 551–552
True, 567
Prisoner's Dilemma, 25, 195, 204, 233
Nash equilibrium of, 181
Probability
Calculus, 466
Distribution, 393
Foundations of econometrics, 456, 467–468
Laws of, 401
Models, 401
of Spurious results, 430
Statistical significance and, 471
Structure of events, 427
of a Type I error, 429–430, 467
of a Type II error, 431
Production function, 282–283, 285
Cobb‐Douglas, 389
Firm‐level, 466
Neoclassical, 470
Prospect theory, 226–227, 251
Progress, 82, 85
Economic, 307, 326–329, 331, 333
Predictive, 89
Scientific, 286, 306, 333, 377
Technological, 458
Theory and, 332–333
Psychology, 66, 100–101, 104, 109, 118, 121, 128–129, 134, 136, 246, 248, 254, 287, 295
Academic, 103
Behavioral, 381
Behaviorist, 110
Cognitive, 233
Contemporary schools of and rejection of, 110
Evolutionary, 357–358, 360–361, 381
Experimental branches of, 286
Folk, 71, 87, 89, 356, 361
(p. 666)
Relation to economics, 16–18, 24–25, 27, 58
Social, 293
Public Goods, 234
Economic experiment and, 281–285, 291–292, 294, 296–298
Experiments, 203
Games, 191–193, 196, 201, 204, 207
the Orma in a game of, 206, 212
Rational expectations, 10, 86, 89, 106, 123, 126, 133, 142, 394, 397, 404–405
Eductive, 394
Evolutive, 394
Rationality, 19, 26, 39–41, 88, 103, 110, 118, 120, 135–136, 143, 159–161, 163, 174, 228, 236, 254, 324
Adaptive, 357
Agents and, 79
Anthropology, 57
Assumption of perfect, 310
Bounded, 14, 89, 100, 129, 136, 380, 397–398
Bureaucratic, 124
Common knowledge, 130, 163, 171, 173
Consistency and, 543
Ecological, 358
Full, 172
Human agents and the violation of prescriptive rules of, 380
Individual, 162–163
Instrumental, 285, 287
Nash, 283
Perfect, 121, 321
Procedural, 137
Prudent behavior, 545
Scientific, 36
Structure of games and, 163
Real Business Cycle (RBC), 428
Real economies, 383
Cross‐sectional data and, 382
Definition of, 383
Realism, 38, 43–45, 68, 73, 90, 93–94, 101, 327, 379
Augmented Solow model and, 458
Conception of the individual and economic, 224
Debate between scientific antirealism and, 327
Economic, 88
Exogeneity assumption and, 226
Global, 75
Idealizations and, 373
Local scientific, 70, 75
Rhetorical, 91
Scientific, 69, 70, 72, 74, 82, 87–88, 374
Reductionism, 239, 258, 391, 395, 405
Economic, 389
Supervenience and, 390
Refutation, 37
Regressions, 426, 438, 463
Coefficient, 459
Cross country growth, 426, 455, 459, 463–466, 468, 471
Growth, 438
Multiple, 464
Neoclassical growth theory, 459
Residuals, 426
Tests of causality, 464
Representative agent, 76, 405
Model, 389, 391, 402–404
Resemblance, 76
Resourcist approaches (to welfare), 521–522
Relevant Transformation of the Inputs Network Approach (RETINA), 439–440, 447
Revealed preference theory, 543
Reward
Dominance, 294
Emotions and, 357
Nonsatiation, 294
Saliency, 294
Rights
‐based theories, 590–591
Capabilities and, 591
Codified laws and, 522
Freedoms and, 512, 521, 528
Imposition of ownership, 291
Intellectual property, 141
Inviolability of fundamental, 591
Lexicographical ordered hierarchy of, 591
Local commons and, 616–617
Material, 521, 530
Maximization of, 525
Merit goods and, 596
Pareto principle and, 527
Property, 202, 209, 459, 471, 518, 585, 588, 616–617, 619
Spectrum property, 314
Universal Declaration of Human, 521
Utility function and, 527
Welfare and, 512, 515, 517–519
Well‐being and, 589, 622
Risk aversion, 545–546
Robustness (in experimental games), 191, 215
Cause effect relation, 292–293
Detection, 193–194
Importance of, 195–197
Neural evidence and phenomenon, 199–200
Phenomenon, 193–195, 204, 206
(p. 667)
Preferences under repetition and, 206
Relational, 194–195, 206
Satisfaction, 64, 566, 568, 570, 574, 595
Of assumptions, 307, 309–310, 320–322, 324
Cognitive, 567
Preference, 565–569, 572–574
Utility and, 554
Scales of observation, 251
Science, 36–37, 39, 43, 55–56, 58, 65–66, 73–74, 90, 94, 101, 103–105, 113–115, 131, 135–136, 247–248, 254–259, 263, 270
Addiction, 271
of the Allocation of scarce resources and economics, 401
Behavioral, 55–56
Biological, 47, 59–60, 63, 65, 312
Cognitive, 110, 120, 125, 129, 234, 293
Conventional canons and nonconformity to, 73
Economic, 92, 100, 280, 292, 312, 405, 455, 462
Economics of, 65, 106
Economics as a separate, 80, 401, 456, 461–462, 466, 468
Empirical, 40, 89
Goals of, 43
Historical, 46–47, 60, 112
History of, 264
History of natural, 291
Human, 61–62, 373, 405
Inductive logic of, 462
Instrumental approach and, 288
Laboratory, 300
Laws and, 37–38, 52
Logic of, 466–467
Methodological revolutions in, 281
Military control of, 131
Military decision theory, 102
Models in, 307–308
Natural, 102, 111, 116, 134
Networks in, 232
Organization of, 125
Philosophers of, 287, 308, 322, 326, 456
Philosophy of, 373, 375, 377, 455–456, 473
Physical, 63, 65, 78, 87, 395, 405
Political, 87
Prediction for economics, 223, 225
Pseudo, 5, 6, 9
Realist conception of, 70
Socio‐epistemic system, 94
Social, 36, 38, 55, 57, 63–64, 69, 70, 72, 87, 92, 102, 108, 110, 117–118, 136, 197, 286, 374, 397, 455
Sociology of, 43, 125
Theories and truth of, 74
Theoretical modeling in, 75
Tool‐based, 281
Selves, 255 (see also Selves)
Septuagint, 424, 437
Social
Choice, 55
Indicator movement, 562
Norms, 7, 15, 18, 20, 178–179, 181, 184, 190, 208–209
Policies, 564–565
Well‐being, 561
Social cost‐benefit analysis, 585, 595, 599, 606, 610
Social embedding, 230
Agent‐based approaches to computational economics, 228
Social reality
The construction of, 394
Models of, 94
Socialist calculation controversy, 103, 104, 110
Solow
Augmented growth model, 458
Growth model, 21–22, 456–457, 465
‐Swann neoclassical growth theory, 458
State space, 378, 381
Statistical
Significance, 460, 466–467, 471
Tests, 461, 468
Thinking, rise of, 462
Results, 468
Supervenience, 51, 392–393
A critique of, 391
Reductionism and, 390–391
Sustainable development
Synchronic and diachronic forms of explanation, 236, 238
System,
Addiction‐trained reward, 269
American higher educational, 113
Brain, 197, 245, 259, 265, 272, 274
Capitalist, 462
Computational, 382
Data generating, 440
Dopamine, 260–262
Dopaminergic reward, 259, 271–272
Dynamical, 374–75, 379
Economic, 372, 375, 378–379, 382–383
Economics as complex adaptive, 229
Demand, 489, 496
Dynamic, 247
Evolutionary, 236
(p. 668)
Exchange, 114
Midbrain reward, 265
Nervous, 348
Neuroeconomic, 273
Nonlinear dynamic, 236
Non‐symbolic, 229
Political, 472–473
Prediction of states of, 374
Price, 128
Real‐world, 310, 311
Representation of preferences and beliefs in, 359
Scholastic, 487
Self‐organizing, 372, 379
Sensory classification, 229
Signaling, 348
Simulated, 379
Social, 380
South Korea and introduction of a minimum‐wage, 483
Substitute, 77
Surrogate, 77
Symbol grounding as an explanation of cognition, 229
Target, 310, 324
Uncontrollability of, 281
Unemployment, 488
Systematicity, 74, 249
Temporal difference (TD) learning, 260–262, 264, 272
Telecommunication licenses, 306
Theoretical economics, 74
Three paradigms of neoclassical “Information,” 116
Tit‐for‐tat (TFT), 347, 351
Trade unions, 483
Traditional theoretical economics (TTE), 373–376
Tragic Choices, 585–587, 589, 603–604
Inability to rank, 604, 606
Transferable utility, 551
Trickle down view of economic growth and employment, 609
Trust games, 192
Turing, 116
Computability, 376
Computability theorem, 133
Inspired paradigm, 132
Machine, 120, 143, 228, 376
Ultimatum game (UG), 20, 135, 173–176, 178–181, 191, 194–195, 197, 201–202, 204, 206, 209–214, 227
One‐shot, 192, 198
Ordinary, 201
Uncertainty, 43–45, 88, 117, 125, 127, 128, 131
Choice under conditions of risk vs. conditions involving, 199
Science and, 74
Unemployment, 484–486, 491, 499–500
As an equilibrium outcome, 485
Definition of, 488
Dualistic labor‐market model with no, 495
Harris‐Todaro equilibrium and, 496
Informal sector, 490
Insurance, 488
Involuntary, 581
Kenya and urban, 498–499
Models with wage differentials and, 495, 500–501
Models with wage differentials and no, 493, 500–501
Rate, 387
Rates in developing countries, 487
Rural, 499
Rural agricultural, 490
Taiwan, 478, 497–498
Urban, 478
Wage dualism and, 491, 495–496
Universal Declaration of Human Rights, 521
Utilitarianism, 20–21, 515, 527
Experiential, 527
Welfare economics and, 523–525
Utility, 104, 113, 115–16, 135, 161, 165, 170, 176, 260
Cardinal, 541, 550
Choice‐based, 512, 515, 528–529, 531
Cobb‐Douglas, 389
Content of, 525
Decreasing marginal, 523
Definition of, 541
as a Derived notion, 587
Determination of, 544
Differences between individuals and, 531
Direct, 520
Experiential, 512, 515, 523–525, 528
Existence of, 132
Expected, 119, 121, 136, 160–162, 171, 203, 205, 211, 226, 230, 234, 251, 348–350, 356
Fehr‐Schmidt function, 175–177
(p. 669)
Function and concavity, 546
Growth models and, 470
Happiness and, 523
Indirect, 520–521
Interpersonal comparisons of, 523, 528–529, 547–549, 555–556
Maximization, 69, 101, 121, 124–125, 127, 357, 389, 397, 523–524, 543
Maximization of and gradient, 136
Maximum, 137
Measurement, 570
Merit goods and, 596
Of a nation, 523
Norm‐based, 182, 184, 210
Objective happiness and, 563
Optimization of, 134
Preference orderings and, 586
Primary goods and, 522
Primitive concept of, 588
Relative, 529
Scale, 544, 555
Social, 227
Theory, 137, 338, 541
Theory of marginal, 386
Transferable, 551
Units of, 540
von Neumann‐Morgernstern, 528, 544–545, 550–51, 554
Well‐being and, 567, 590, 597
von Neumann‐Morgenstern
Expected utility, 135
Rationality requirements, 554
Utility theory, 550–52, 554
Wages, 479–480, 500
Agricultural, 488, 493
Choice of jobs and, 489
Constant, 498
Differentiation of, 480
Efficiency, 485, 501
Employment and, 478, 501
Expected, 499
Falling unemployment and, 478
Floors, 479
Formal sector, 482, 486, 497
Informal, 499
Institutional forces and, 495
Labor market conditions and determination of, 495
Manufacturing sector and, 493, 498
Market clearing, 478, 482, 484–486
Mathematical expected, 495
Minimum, 483
Models of, 478, 481–482
Multinational corporations and, 483
Productivity and, 496
Public sector pay policies and, 483
Real, 480, 482, 493, 498
Sectoral, 492, 493
Subsistence levels and, 493
Trade union membership and, 483
Unemployment and, 497
Urban informal sector, 500
Walrasian auctioneer, 294
Way the world works (www), 88–89, 93
Welfare, xiv, 4, 20–21, 23, 28, 41, 103–105, 195, 216, 256, 513
Aristotelian approach to, 516–519
Arrow's impossibility theorem and, 526
Comparisons across different individuals and, 530–531
Definition of, 513–514
Development economics and applied, 596
Dictatorial function of social, 526
Economic, 477, 499
Economics, 511, 526, 583–584, 589–591
Education and, 514
Elements of, 515
GNP as an index of, 585
Income and, 511
Indicators, 514
Individual preferences and, 515
Individual welfare and aggregate, 513–514
Institutions and, 526
Interpersonal comparisons and, 526–529
Function of social, 512, 515, 526
Fundamental theorems of, 141, 512
Kantian approaches to, 519–521
Material goods and, 514
Measurements of, 513–514, 527, 531–533, 583
Monotonicity of, 513
Mortality rate and society's, 514
Noncomparable ordinal information and, 525
Normative, 511
Ordinal framework and social, 527
Prewar concepts of, 103
Private preferences and, 527
Public expenditure and comparisons of, 513
Resourcist approaches to, 521–522
Rights and, 512
Satisfaction of preferences and, 512
(p. 670)
Social, 595
Societal, 513, 532
State, 589
Utilitarianism approaches to, 523–525
Welfarism, 515
Well‐being, xiii, 580
Accounts of national, 564
Approaches to the measurement of, 571
Bodily, 517
Capabilities as, 591
Capacities and, 592
Comparisons of subjective, 528
Composite or hybrid accounts of, 566
Concept of, 564–565, 572, 583, 585
Concern for, 189
Constituents of, 593–595, 601
Determinants of, 598–601
Determinants and distribution of, 563, 574
Direct measures of, 596–598
Economic, health, social policies and, 564
Economic indicators of, 568, 573–574
Financial well‐being vs. concept of, 564
Food as a key determinant of, 612
Functions of social, 606
GNP as an index of social, 601, 619
Happiness and, 567
Health and, 592
Inclusive wealth and, 619–620
Income and subjective, 563
Indexes of democracy and civil liberties and, 621
Indicators of, 568
Indirect measures of, 598
Individual, 512, 590, 593, 595–596, 598
Interpersonal comparisons of, 583
Material, 517
Maximization of, 563
Measures of, 565, 568–69, 571–575
Money and, 568
National indicators of, 564
Objective accounts of, 566
Policy evaluation and, 594
Preference satisfaction and, 566, 568, 573
As the primary focus of policy‐makers, 564–565, 575
Psychological, 517, 571
Psychology and normative status of, 563
Rights and, 590, 622
State of mind and, 566–568, 573
Subjective, 566–567, 575
Subjective accounts of, 566
Subjective measures of, 560–61, 563, 566–567, 569, 571, 573–574
Utility and, 567, 590, 596–597
Voting rules and functions of social, 602
Wages and, 563
Wealth as an aggregate index of social, 600
White's theorem, 427, 444–445
Zero‐one rule and utility, 550