Milan Zafirovski

The Rational Choice Generalization of Neoclassical Economics Reconsidered: Any Theoretical Legitimation for Economic Imperialism?

The article reconsiders the generalization of neoclassical economics by modern rational choice theory. Hence, it reexamines the possible theoretical grounds or lack thereof within neoclassical economics for economic imperialism implied in much of rational choice theory. Some indicative instances of rational choice theorys generalization of neoclassical economics are reviewed. The main portion of the article addresses the question as to whether neoclassical economics allows its generalization in rational choice theory and thus legitimizes economic imperialism. Presented are a number of pertinent theoretical reasons why neoclassical economics does not fully justify its generalization into rational choice as a general social theory, particularly into an overarching economic approach to social action and society. Also discussed are some theoretical implications of the rational choice generalization of neoclassical economics. The main contribution of the article is to detect lack of a strong theoretical rationale in much of neoclassical economics for rational choice theorys manifest or latent economic imperialism.

An Alternative Sociological Perspective on Economic Value: Price Formation as a Social Process

This paper identifies some deficiencies in the theory of value as found in traditional economics, specifically the fallacy of absolute value and its spurious resolution that treats prices as a priori parameters rather than as variables to be explained. One is a fallacy of omission, the other of commission, which together comprise the epistemological paradox of the modern neoclassical theory of value. This paper advances a different, sociological approach to economic value or market prices as a possible corrective to this paradox. Such an approach has origins in sociological economics or economic sociology, the main premise of which is that social influences in the economy affect the formation of value or price. This paper therefore explores the seldom examined social underpinnings of price formation and of market processes generally.

The Influence of Sociology on Economics Selected Themes and Instances from Classical Sociological Theory

This article presents selected pertinent instances of the influence of (especially classical) sociological theory on economics. Its explicit justification and goal is to detect and illustrate the almost unknown, ignored or dismissed bearing of sociological theory on its economic counterpart. Its implicit justification is given by the epistemological principle of the unity of knowledge, especially of social science, serving as an analytical framework or master narrative for exploring these relations, which extends the scope of the article beyond simply a history of ideas. The key finding is that the influence of sociological theory on economics is related to the project for unification of social science and thus the epistemological principle of the unity of knowledge. As a rare attempt at exploring the theoretical impact of sociology on economics, the article aims to help abridge a gap in the current literature.

Administration and Society: Beyond Public Choice?

This paper involves an attempt at reconsidering public choice theory, with reference to its pertinence for public administration. The impetus for such reconsideration has been supplied by the claims of public choice theorists that their theory, as the economics of politics, is superior to its alternatives in political science and sociology. The Weberian theory of bureaucratic administration or bureaucracy has been a special target of public choice theorists on the grounds that it misconstrues bureaucrats as idealists in economic terms. The public choice solution is treating bureaucrats and other political subjects as rational utility optimizers, including profit-maximizers and rent-seekers. Public choice theorists claim that such a treatment has revolutionalized the theory of bureaucratic administration. The reconsideration does not provide prima facie support for these claims of public choice theorists.

Paths of the Weberian-Austrian Interconnection

This paper centers on the theoretical–methodological interconnections between Weber and the Austrian economists. First, the influence of classical Austrian economics, especially Menger and Böhm-Bawerk, on Weber is reexamined. Then we are concerned with the importance of Webers ideas in neoclassical Austrian economics, including Schumpeter, Mises and Hayek. Also, Webers legacy in modern economics is reconsidered. Since little research is done on these interconnections between Webers sociology and Austrian economics, the paper thereby contributes toward spanning a gap in the present economic and sociological literature.

Measuring and Making Sense of Labor Exploitation in Contemporary Society: A Comparative Analysis

This article reexamines the problem of labor exploitation in advanced capitalist economies, especially the United States. The article specifies the concept of labor exploitation by using both the Marxian and marginalist notions and measures. The implicit neoclassical presumption of no or little labor exploitation in a capitalist economy is rejected by the results. The alternative heterodox argument of persistent and increasing labor exploitation has been confirmed for contemporary capitalism, particularly for the United States, in recent years.

The Rational Choice Approach to Human Studies: A Reexamination

This article reexamines the rational choice or economic approach to human studies. Its adherents claim that its extension beyond its original domain to “all human behavior” can finally lead to integration of the human studies, especially social theory, and thus their elevation from what they see as a chaotic state. Specifically, they propose grounding human studies on the premise that humans are rational egoists or self-interested utility maximizers. Although this premise has been the conceptual foundation of orthodox economic theory, it has been questioned, and even in part discredited in its heterodox versions. This reexamination casts serious doubts on such claims.

Economic distribution as a social process

Abstract This article examines the role of extramarket and other noneconomic variables in the pricing of the factors of production or income distribution. The documented presence and salience of premarket variables in factor valuation makes economic distribution an eminently social process. In particular, even under a modern free-market economy, income and wealth distribution represents a process of institutionalization through the creation and imposition of social rules and sanctions as distinguished from inexorable natural laws. For instance, wage formation and dispersion (inequality) is reportedly more a function of the institutional structure of labor markets than of the automatic operation of some iron market laws of wages. To that extent income/wealth distribution becomes a matter of, in economic terms, discretionary decision making, rather than of an objective valuation of productive factors according to their (marginal) productivity or merit. In retrospect, the article supports the Keynesian hypothesis about the economically arbitrary and inequitable distribution of income and wealth in capitalism.

Beneath rational choice: Elements of ‘irrational choice theory’

This article re-examines the prevalent view that classical/neoclassical economics contains only bases or ingredients of rational choice theory, i.e., the economic model of human action and society. Instead, it proposes that elements or implications of alternative ‘irrational choice theory’ also coexist with those of ‘rational choice’ and are relatively important in much of classical and neoclassical economics. The article identifies and considers certain elements and implications of irrational choice theory in classical and neoclassical economics. These consist of the reality, possibility, and realm –i.e., conception and observation – of irrational choices in the economy. The article contributes to understanding better how traditional economics relates to contemporary economic-sociological rational choice theory and its alternative.

‘Neo-Feudalism’ in America? Conservatism in Relation to European Feudalism

This paper reconsiders American conservatism in relation to European feudalism and medievalism. The paper argues and shows that conservatism in America has typically been an American variant or proxy of European feudalism in particular and medievalism in general. Specifically, this is argued and shown for American economic and political conservatism with respect to feudalism in economy and its despotic ramifications in politics, as reciprocally related and reinforcing elements of European medievalism. The paper also identifies other interconnected elements of European medievalism in American economic and political as well as cultural conservatism. It finds that in economic-political terms, conservatism in America, irrespective of its assumed and celebrated lack of a European feudal and medievalist past, has been and continues to be a functional equivalent of feudalism and other medievalism in Europe. The paper concludes that American conservatism, including neo-conservatism, is a sort of European neo-feudalism and neo-medievalism rather than, as it claims and widely supposed, non-feudal and non-medievalist, thus questioning received views in the literature and society.