Robert McMaster

Evolution in Economic Geography: Institutions, Political Economy, and Adaptation

Abstract Economic geography has, over the past decade or so, drawn upon ideas from evolutionary economics in trying to understand processes of regional growth and change. Recently, some researchers have sought to delimit and develop an “evolutionary economic geography” (EEG), aiming to create a more systematic theoretical framework for research. This article provides a sympathetic critique and elaboration of this emergent EEG but takes issue with some aspects of its characterization in recent programmatic statements. While acknowledging that EEG is an evolving and pluralist project, we are concerned that the reliance on certain theoretical frameworks that are imported from evolutionary economics and complexity science threatens to isolate it from other approaches in economic geography, limiting the opportunities for cross-fertilization. In response, the article seeks to develop a social and pluralist conception of institutions and social agency in EEG, drawing upon the writings of leading institutional economists, and to link evolutionary concepts to political economy approaches, arguing that the evolution of the economic landscape must be related to processes of capital accumulation and uneven development. As such, we favor the use of evolutionary and institutional concepts within a geographical political economy approach, rather than the construction of some kind of theoretically separate EEG—evolution in economic geography, not an evolutionary economic geography.

A Geographical Political Economy of Evolution in Economic Geography

Abstract Key themes for evolution in economic geography are identified that clarify and further refine and reinforce our argument for broader conceptions of institutions, social agency, and power and for the situation of the plural and emerging field of evolutionary approaches more fully within geographical political economy. We address the following issues: conceptual and terminological clarity; evolution and institutions within and beyond the firm; agency, bounded determinacy, and power; and research method and design. Our central contention is that geographical political economy provides a coherent and well-structured conceptual and theoretical framework with which to broaden and deepen our understanding, exploration, and practice of evolutionary thinking in economic geography.

The contract state, trust distortion, and efficiency

Abstract In this paper we challenge the Public Choice-Agency Theory approach, which characterizes economic transactions as a series of discrete, unique events. We argue that the policy implications flowing from this view of the world are flawed, as they ignore the role of trust in contract formation and execution. Evidence is drawn from health, local authority, and water service sectors of the economy to illustrate the way in which the efficiency-enhancing properties of contract-based provision may be attenuated if trust is distorted by institutional change.

Doing evolution in economic geography

abstract Evolutionary approaches in economic geography face questions about the relationships between their concepts, theories, methods, politics, and policy implications. Amidst the growing but unsettled consensus that evolutionary approaches should employ plural methodologies, the aims here are, first, to identify some of the difficult issues confronting those working with different frameworks. The concerns comprise specifying and connecting research objects, subjects, and levels; handling agency and context; engaging and integrating the quantitative and the qualitative; comparing cases; and, considering politics, policy, and praxis. Second, the purpose is to articulate a distinctive geographical political economy approach, methods, and illustrative examples in addressing these issues. Bringing different views of evolution in economic geography into dialogue and disagreement renders methodological pluralism a means toward improved understanding and explanation rather than an end in itself. Confronting such thorny matters needs to be embedded in our research practices and supported by greater openness; more and better substantiation of our conceptual, theoretical, and empirical claims; enhanced critical reflection; and deeper engagement with politics, policy, and praxis.

Tenure and Employment Contracts: An Empirical Investigation

This paper exploits a unique data set to explore the importance of key contractual characteristics on the duration of employment tenure. The paper recognises the insights of the human capital and job-matching approaches in informing discussion on employment tenure. Nevertheless, this paper argues that features of the contractual arrangements between employer and employee have been under-emphasised. The paper demonstrates that key features of contracts such as job security develop simultaneously with tenure. A clear lock-in effect is observed in the results.

The Individual in Mainstream Health Economics: A Case of Persona Non-grata

This paper is motivated by Davis’ [14] theory of the individual in economics. Davis’ analysis is applied to health economics, where the individual is conceived as a utility maximiser, although capable of regarding others’ welfare through interdependent utility functions. Nonetheless, this provides a restrictive and flawed account, engendering a narrow and abstract conception of care grounded in Paretian value and Cartesian analytical frames. Instead, a richer account of the socially embedded individual is advocated, which employs collective intentionality analysis. This provides a sound foundation for research into an approach to health policy that promotes health as a basic human right.

Market and society: How do they relate and how do they contribute to welfare?

As we observed in the introductory chapter, the relationship between market and society is a hotly debated issue in the social sciences. The ideological overtones of the debate concern the contribution of the market to welfare—usually conceptualized in material terms—and to well-being. I surmise that both market and society can contribute to welfare and to well-being.

The behavioural turn in housing economics: reflections on the theoretical and operational challenges

Abstract This paper starts with an assumption that mainstream economics has limitations and that a behaviourally rich inter-disciplinary research programme can strengthen the field of housing studies by addressing some of these weaknesses. We note, however, that the heterogeneity of behavioural studies and, in particular, the bifurcation between ’old’ and ’new’ behavioural economics presents significant conceptual and operational challenges. We note, for instance, that the diversity within the existing literature might be viewed as evidence of a lack of coherence and could serve to undermine the case for a behavioural turn. To address this, we urge behavioural researchers to take great care in specifying their conceptual models and in demonstrating the rigour and robustness of their applied research methods. We also add our support to the call made in the focus articles for the need energise inter-disciplinary working in behavioural studies and, in particular, stress the need to work on resolving some of the tensions that might arise from attempts to blend the insights and approaches associated with different disciplinary perspectives.

Socialism, knowledge, the instrumental valuation principle and the enhancement of individual dignity

Abstract Socialism is frequently associated with central planning, public ownership, anathema to markets and the emasculation of the individual. Recent market socialist contributions attempt to overcome socialisms seeming resistance to markets. However, such contributions are frequently undermined by Hayeks invocation of fragmented knowledge. This article endeavours to contribute to a broadly conceived socialism that is not grounded in a particular array of institutions, but one which, via the instrumental valuation principle, the capabilities approach and Deweys conceptualization of knowledge, offers the prospect of enhancing individual dignity. The instrumental valuation principle is viewed as key to socialisms engagement with dignity as it provides the framework for the enhancement of egalitarianism, democracy and the undermining of invidious institutional arrangements.

Revisiting Institutionalist Law and Economics - The Inadequacy of the Chicago School: The Case of Personal Bankruptcy Law

From an evolutionary perspective, bankruptcies may be seen as an important selection mechanism. Bankruptcy, however, has not received much attention in the economics literature. AI> the quotation from Smith, above, intimates, bankruptcy is an unpleasant process for individuals, their families and for wider society. Bankruptcy laws differ widely across countries and even within a federalized country such as the United States. Filing practices within a country also differ substantially across regions as well as among social groups (Fay, Hurst, and White 2002). Thus, bankruptcy is not the uncomplicated selection mechanism in the economic realm it sometimes is believed to be. This paper discusses how one may evaluate bankruptcy regimes from an economic perspective. It contrasts the instrumental rationality approach of the Chicago {law and economics) school with the instrumental valuation principle (IVP) from original Institutional Economics (OlE) in the context of personal bankruptcy.