Understanding DSGE models

Theory and Applications

Celso Jose Costa Junior, São Paulo School of Economics, Brazil

While the theoretical development of DSGE models is not overly difficult to understand, practical application remains somewhat complex. The literature on this subject has some significant obscure points. This book can be thought of, firstly, as a tool to overcome initial hurdles with this type of modeling. Secondly, by showcasing concrete applications, it aims to persuade incipient researchers to work with this methodology. In principle, this is not a book on macroeconomics in itself, but on tools used in the construction of this sort of models. It strives to present this technique in a detailed manner, thereby providing a step by step course intended to walk readers through this otherwise daunting process. The book begins with a basic Real Business Cycle model. Subsequently various frictions are gradually incorporated into a standard DSGE model: imperfect competition; frictions in prices and in wages ; habit formation; non-Ricardian agents; adjustment cost in investment; costs of not using the maximum installed capacity; and finally, Government.

Questioning History

16 Essential Questions That Will Deepen Your Understanding of the Past

Joe Regenbogen

Since the days of the Ancient Greeks, history has been perceived as the academic study of the past. Unfortunately, it has generally been taught as a litany of rigid, boring facts intended to be accepted rather than questioned. This has been reinforced for decades by weighty textbooks that overwhelm the reader with mind-numbing details presented in a chronological sequence. The end result is that students see little relevance of what they learn in history class to the real world, and many simply struggle to stay awake. Compared to other subjects taught at the secondary level, history is frequently judged to be the most boring. This is largely because it is viewed as an intellectually lifeless subject that presents few opportunities for active engagement. Questioning History is a book built around 16 essential questions designed to challenge this common assumption. Each question is broad, open-ended and subject to vigorous debate. By examining the historical background behind each question and by analyzing the ways in which the question can be answered, the reader will come away with a deeper understanding of the past and a new appreciation for history as a cognitively dynamic subject. In addition, by using each chapter as a platform for engaging discussions and Socratic seminars, the reader will be able to refine the decision-making skills necessary for effective citizenship in a democratic society. Depending on the classroom or the setting in which it is being used, Questioning History can either take the place of the more traditional textbook or at least be used as a supplement to make it come more alive. The best way to learn and to appreciate a subject is through active engagement. Questioning History provides a shot of adrenalin to the study of history.

Self, History and Future

A work on the modality of history

Tetsuaki Iwamoto

Be it Foucault’s insight into a society based on ‘power-knowledge’ or Fukuyama’s attempts to predict the future based on the end-game situation of ‘liberal democracy’, both are like trying to work out a curvature of a line from a given point by using pre-calculus maths. No amount of elaborate narratives based on a quasi-dynamic, phenomenological concept like ‘discourses’ or a static concept like ‘liberal democracy’ will capture the dynamism of moving events and their fluid directions called ‘future’. You need the methodology of operative concepts that process moving events. My essay is based on a holistic and dynamic concept with logical progressions. Instead of capturing movements as a still picture I try to record constantly changing situations in terms of modality of history. It is the necessity of tangencies and encompassments for Circles of Identity (CI) that forms history. The momentum of ‘self’ that bridges the past and the future is the propellant of CIs, which follows certain rules to suggest our destiny.

Network Society

How Social Relations rebuild Space(s)

Roberta Iannone, Sapienza University of Rome, Italy et al.

The present volume attempts to critically evaluate claims that modern society may be read and understood as a network. Accepting that this perspective holds some potential, the question becomes how to best capitalize on it. To analyze society as a network means to respond not only to the “actual needs”, but also to highlight the "opportunities" and the "utilities", and to investigate whether society is increasingly relational or just perceived as such, as e.g. digital "social networks" and related concepts exemplify. From a strictly scientific perspective to answer the question "how to" read society as a network means to ask ourselves: a) if the conceptual categories (especially the concepts of structure and exchange) and the paradigms of traditional analysis (holism and individualism, both in the functionalist and the conflictive versions) are still sufficient; b) if new conceptual categories/theories/instruments are needed to represent more properly the reality we face: to investigate it, to explain it or, at least, to understand it. Starting from a reflection on already established social networks (Scott, 2003), the fundamental differences between groups and networks (Vergati, 2008), the logics of networks (Serra, 2003) as well as social capital formation and links (Di Nicola, 2006; Mutti, 1998), we seize the spatial dynamics, seemingly following opposite paths, but which revert to a common denominator: de-spatialization and re-spatialization, namely the processes of dematerialization of space(s) and its reconstruction by specific relational dynamics and forms. The study of networks is therefore not attributable to a single theory but to several theories converging towards a unique perspective (spaces) and logical reasoning (Serra, 2001) each one with its own uniqueness. The strength of this volume and the difference with respect to other attempts at explaining the Network Society lies in the multidimensional and interrelated perspectives it offers emerging from converging multidisciplinary perspectives (sociological, anthropological and linguistic), and from applications that the Network Society provides, namely, international (European Governance), institutional, public (linguistic landscape of the city of Rome) and mediated ones (communication technology).

Politics and Web 2.0: The Participation Gap

Edited by Gisela Goncalves, Universidade da Beira Interior, Portugal and J. Paulo Serra, University of Beira Interior, Portugal

A point of departure for this book is the paradox between the seemingly limitless promise modern web technologies hold for enhanced political communication and their limited actual contribution. Empirical evidence indicates that neither citizens nor political parties are taking full advantage of online platforms to advance political participation. This is particularly evident when considering the websites of political parties, which have taken on two main functions: i) Disseminating information to citizens and journalists about the history, structure, programme and activities of the party; ii) Monitoring citizens’ opinions in regard to different political questions and policy proposals that are under discussion. Despite the integration of websites into political parties’ “permanent campaigns” (Blumenthal), television continues to be seen as the core medium in political communication and one-way and top-down communication strategies still prevail. In other words, it is still “business as usual”. This book questions whether Web 2.0 could help enhance citizens’ political participation. It offers a critical examination of the current state of the art from diverse perspectives, highlights persisting gaps in our knowledge and identifies a promising stream of further research. The ambition is to stimulate debate around the party-citizen "participation mismatch" and the role and place of modern web technologies in this setting. Each of the included chapters provide valuable explorations of the ways in which political parties motivate, make use of and are shaped by citizen participation in the Web 2.0 era. Diverse perspectives are employed, drawing examples from several European political systems and offering analytical insights at both the individual/micro level and at broader, macro or inter-societal systems level. Taken together, they offer a balanced and thought-provoking account of the political participation gap, its causes and consequences for political communication and democratic politics, as well as pointing the way to new forms of contemporary political participation.

In the Sphere of the Personal: New Perspectives in the Philosophy of Persons

Edited by Simon Smith, University of Surrey and James Beauregard, Rivier University

The papers in this collection were originally presented at the 13th International Conference on Persons, held at the University of Boston in August 2015. This biennial event, founded by Thomas O. Buford and Charles Conti in 1989, attracts a host of international scholars, both the venerable and the aspiring. It is widely regarded as the premier event for those whose research concerns the philosophical tradition known as ‘personalism’. That tradition is, perhaps, best known today in its American and European manifestations, although there remains a small but fiercely defended stronghold in Britain. Personalism is not an exclusively Western development, however; its roots are also found in India, China, and Japan. What unites these disparate intellectual cultures may seem quite small. There is little, if any, methodological or doctrinal consensus among them. They are all, however, responses to the impersonal and depersonalising forces perceived to be at work in philosophy, theology, and, most recently, the natural and political sciences. Their common aim is to place persons at the heart of these discourses, to defend the idea that persons are the metaphysical, epistemological, and moral ‘bottom line’, the vital clue to knowledge of self, reality, and all conceivable values. The authors in this collection do not simply reflect upon this tradition, they put it to work on a range of philosophical and theological problems, both classical and contemporary; problems of free will, personal identity, and the nature of reality, as well as the very current concerns of environmental philosophers, bio- and neuro-ethicists. Their perspectives, too, are many and varied, so offer profound insights into key debates among other philosophical traditions, such as the Kantian, Hegelian, phenomenological, and process schools.

The Solitary Voice of Dissent

Using Foucault and Giddens to Understand an Existential Moment

Martin Kay

This book urges respect for solitary dissent rather than censure. It equips a wide audience to understand what previously seemed unimaginable, much less comprehensible. It shows the reader how to reach beyond those first conclusions and into the heart of the matter. The lone voice explains that something has been hidden away, something which the individual now dissenting can no longer acquiesce in. It raises the possibility that more may be seriously wrong. Those who need to understand range from academics, to researchers, to managers, to elected representatives, to journalists. We all have an interest in knowing not just what has gone wrong but also why this person, and no other, decided they could take no more. If we are to correct a bad situation, rather than just patch it up, we need clarity at every level of the individual’s deepening unease. The book uses four case studies (two in Ireland, one in UK, all on the record, and one authoritative biography of a well-known Italian personality), to demonstrate an approach to analyzing solitary dissent. The methods used are academic but, in the way they are presented, certainly intelligible to the lay-reader. Indeed, the author (who is one of the case studies) writes with a degree of affection for his two authorities, Michel Foucault and Anthony Giddens, which is engaging, anything but formal, but no less authoritative for that. Another persuasive output of the book is the resonance of solitary dissent with Jean-Paul Sartre’s existentialism which is also analysed. The Solitary Voice of Dissent is limited by the extent to which the author has been able to delve into the personal privacy of the case studies offered. With commendable detachment, he is able to examine his own experience; and the biography he has selected allows a similarly deep investigation into the fourth case study. While each personality investigated was male, the author also identifies certain contemporary female dissenters. This is an area increasingly impacting upon the public’s awareness but which no-one has written about before. If we are to mend our society, we need to start a conversation. A wide audience will wish to follow it.

Confessions and Declarations of Multicolored Men

Frederick Douglass Alcorn, University of Puget Sound

This book is a culturally situated study of the experiences and perspective garnered from of a group of post-secondary Black African American, bi-multi-racial male students aged 19-37. The undergirding interest was to see if there was an awareness of the group's manly inclinations, tendencies and predispositions and understand how such awareness projects and influences their quest and discipline for learning and to academically achieve. The sociological construct of "habitus", as conveyor of dispositions, inclinations, and tendencies, provides an analytical framework permitting an appreciation of interactions between personal identity, social belonging and approaches to learning and education. The result is an original and powerful account of the ways in which unspoken dominant mainstream intergroup cultural relationships, involving social-political attitudes, decision making, and behavioral reactions and responses, interact with internalized self-in-group or in ascription with group, oppression, repression, intellectual-cognitive-physical strategies, determination, and work, that have brought men of Black African American, bi-multi-racial descent, in the U.S., to their current social position. Unlike some public discourse in U.S. society, this is not a blame game, nor is it one of relinquishing self or group responsibility, but one based upon and motivated by a deeper understanding of complex facts. The prose can be best described as an ethnographical narrative, synthesizing a wealth of original observations with insights from scholarly and popular literature and media. Its original and engaging style may appeal to a broad audience including postsecondary educators and students, researchers studying the sociology of gender, African American identity, intercultural relational communications, student services, social work, and social psychology as well as mental and physical healthcare practitioners.

The Impact Of Reason On Faith, Ethics And Belief

Geran F. Dodson, University of North Georgia

The purpose of the book is to examine the theological claims of ethics, faith and belief from a philosophical perspective. The Abrahamic and Mosaic covenants of the Old Testament, Jesus of the synoptic gospels, and Paul’s writings serve as the frame of reference in examining a biblical expression of reason and structured logic. The message of Jesus centered on the Kingdom of God, defined the meaning of faith and belief, established a new ethic, and framed the message in logic forms. The life and death of Jesus brought the realization of God’s final covenant as prophesied by the Old Testament. However, Paul appropriated and developed the Jesus of history into the mythological eschatological Christ figure. The clash of philosophy and theology is evident with theological presuppositions that are based on spiritual insight and divine revelation. Logic in scripture employs propositions based primarily on revealed proof that is within the context of that which cannot be proven absolutely. Uncovering the identity of YHWH in the manuscripts and religious practices of Canaanite culture clearly associated YHWH with the polytheism of the Ugarit texts. YHWH was one of the seventy sons of the Canaanite Most High God El and took on a unique identity that was rooted in El and the polytheistic nature of the pantheon of gods. Theological truths stand within the context of faith and reason stands apart from faith and infers only that which can be proven based on evidence. That which is knowable by faith cannot be known by reason since reason cannot validate that which is not proven to exist.

The Challenge of Credit Supply

American Problems and Solutions, 1650-1950

Michael Anthony Kirsch

This book is for anyone seeking a succinct and accessible treatment of the most pivotal financial and monetary policies throughout American history from 1650-1950. But it is especially written for those who desire an intricate and detailed knowledge of how and why these policies worked with respect to the supply of adequate credit for economic development. A thorough examination of key credit institutions and their specific powers, functions, mechanisms, context, and economic impact brings the reader to a recognition of which policies and institutions were successful and unsuccessful in supporting the economy and preventing crisis. Its extensive use of primary sources, period literature, and carefully chosen quotations allows the reader to participate in the original discussion and issues that faced Americans in each era. This vivid account leads to a unique grasp of relationships between essential facts, ideas, and time periods. The reader is rewarded with the rare experience of seeing the evolution of three hundred years of policy development as an integrated process. The book’s content will be new and provoking to the academic, policy maker, and economist, but is presented in a manner and style ensuring comprehension for a general audience and those new to the topics involved. Many of the lessons learned in the course of the investigation are relevant and applicable to modern economic and financial policies.

Boom and Bust: Ecuador’s Financial Rollercoaster

The interplay between finance, politics and social conditions in 20th Century Ecuador

Pablo R. Izurieta Andrade

Throughout the history of Ecuador, the ambivalent evolution of major political and social events such as the stability of serving presidents, coups and even war, has coincided with changes in the financial environment. The product of careful historical study, "Boom & Bust: Ecuador’s Financial Rollercoaster" combines evidence from prior studies with original research, including data from the Central Bank of Ecuador, unpublished diplomatic papers and documents from the personal archives of relevant historical figures. A central finding is that the export performance of Ecuador's three primary commodities - cacao, bananas and oil - has significantly shaped 20th-century Ecuadorian history. Synthesis of old and new insights reveals how the state of the nation’s economy has frequently determined the outcome of critical events. All the while, the strength, immediacy and direction of the relationships examined has varied. The book would appeal to anyone with an interest in Ecuador's recent history as well as specialists and scholars of Latin American economic and political history.

Darwin’s Incomplete Idea

Wittgenstein, language, our place in nature and our responsibility for the environment.

Gunnar Odhner

Why is progress in environmental protection slow and faltering? Is it because we misunderstand our place in nature? This book argues that it is the normative implications of Darwinism and their powerful grip on collective social consciousness that are partly responsible for the tardiness. For all its positive explanatory power and undoubted veracity, the normative implications of Darwinist thinking for our environmental predicament are stark: If we are children of Mother Nature equipped by her with a human nature, the responsibility for the deterioration of nature is partly Hers. This book takes a different standpoint. We are indeed children of Nature, but not primarily of the green nature or animal world but of the nature of language. We can understand how through the philosophy of Ludwig Wittgenstein, who states that “Language is a graft on instinctive behavior.” In our instinctive use of words we are parts of nature in a way resembling mice, frogs and giraffes. We are not as free as we think when we talk about our “free will”, because language uses us when we use it, hence our double roles as victims and instigators. The main thesis of this book is that rather than merely possessing language, we are language. If accepted, this realization may point the way to a more optimistic future for environmental protection and lay the foundations for a new analytical perspective on modern social behavior. "Darwin's Incomplete Idea" was much discussed when first published in Sweden (Bokförlaget Anomali, 2013). The English edition exposes, for the first time, this important work to an international audience. It should be of interest to philosophers of language and social scientists concerned about the environment and our place in it.

Public Assistance of the Poor in France

From the Middle Ages to the Late 19th Century (New Edition)

Emily Greene Balch

This book is a historical assessment of state institutions and other social arrangements put in place to alleviate poverty in France. It draws from both primary (notably archives of the Church) and secondary sources (such as Monnier’s Histoire de l’Assistance Publique). It offers a comparative perspective with respect to contemporary arrangements in Britain and the United States, including some early poverty statistics. The result is a useful and concise account of the history of social institutions which continues to be of relevance over a century after its initial publication. This New Edition has been typeset with modern techniques. It has been painstakingly proofread to ensure that it is free from errors.

The Road to Parnassus: Artist Strategies in Contemporary Art

Rise and Success of Glasgow Artist Douglas Gordon and of the wider YBA generation

Diego Mantoan, University of Palermo, Italy

How can one become a successful artist? Where should one start a career in the art world? What are useful strategies to achieve recognition in the art system? Such questions hoard in students' minds ever since entering art school and they probably chase every kind of art professional who is at an early career stage. “The Road to Parnassus” tries to understand what makes a good start in today's art world, who are influential players in the field and which strategies might apply. The swift career ascension of Glasgow artist Douglas Gordon – one of today's leading visual artists – and of the broader YBA generation that rose into worldwide prominence in the 1990s – Damien Hirst and Sarah Lucas among the best known – serves as a convenient case to analyse contemporary artist strategies. This book takes a multidisciplinary approach – spanning from traditional art history, to sociology and economics – pursuing the reconstruction of the field of forces in art as intended by French sociologist Pierre Bourdieu. Compared to previous publications on art system dynamics, such as Thompson's “The $12 Million Stuffed Shark”, this book offers an enhanced understanding of the factors that allow a young artist to enter the arena of contemporary art. The present research should help uncover the art system logic – which appears enigmatic to non-experts – revealing that artists are aware they need to consider global trends, beat competitors and meet the demands of dealers, collectors, curators and museums. This book furthers existing contributions on the YBAs (for example Stallabrass' “High Art Lite”), offering innovative conclusions on recent British art, such as on the duality between London and Glasgow, the gender opposition among emerging artists and the predominance of resourceful authors.

Introduction to Dynamic Macroeconomic General Equilibrium Models

José Luis Torres Chacon, Universidad de Málaga, Spain

This book offers an introductory step-by-step course in Dynamic Stochastic General Equilibrium (DSGE) modelling. Modern macroeconomic analysis is increasingly concerned with the construction, calibration and/or estimation and simulation of DSGE models. The book is intended for graduate students as an introductory course to DSGE modelling and for those economists who would like a hands-on approach to learning the basics of modern dynamic macroeconomic modelling. The book starts with the simplest canonical neoclassical DSGE model and then gradually extends the basic framework incorporating a variety of additional features, such as consumption habit formation, investment adjustment cost, investment-specific technological change, taxes, public capital, household production, non-ricardian agents, monopolistic competition, etc. The book includes Dynare codes for the models developed that can be downloaded from the book’s homepage. The second edition is identical to the first with the exception of a revised appendix to Chapter 2. The revised appendix can be downloaded free of charge in the accompanying downloads section.

Designing Technology, Work, Organizations and Vice Versa

Edited by Enrico Attila Bruni, University of Trento, Italy et al.

The concept of design has been defined in a multitude of ways and used in a variety of academic fields, ranging from the classics of organizational and system design to studies on corporate culture, aesthetics and consumption. However, in mainstream organization and management studies, the concept of design has been ‘black-boxed’ and easily implied as an updated (and more fashionable) version of the traditional idea of structuring organizational processes. At the same time, working and organizing seem to be embedded nowadays in increasingly complex and situated technologies and practices. If the spreading of information and communication technologies (ICTs) has changed workplaces (and even the very meaning of 'workplace' as an area marked by the physical presence of different human actors), working and organizing mobilizes the joint action of humans, technologies and knowledges. The aim of the book is thus to discuss the relations among technologies, work and organisations from multiple theoretical perspectives and to engage with questions about design as well as the sociomaterial foundations of working and organising. The book focuses on the close study of practices and processes that inextricably link work and organisation to the use of artefacts and technological systems (and vice versa), exploring by means of different cases of organizational and design research articulations and disarticulations of daily work and design; the doing of objects and technologies in everyday organizational life; the reconstruction of organizational processes through technological and design practices; the relation between learning, innovations and technologies in organizational settings. The book is addressed to graduate students, PhDs, scholars and researchers interested in the fields of Organization Studies, Science and Technology Studies, Sociology and Design, as well as to professionals and practitioners interested in new methodological approaches towards the relations between technology, work and organization.

The Rig-Vedic and Post-Rig-Vedic Polity (1500 BCE-500 BCE)

R.U.S. Prasad, Harvard University

The book critically examines and assesses the literary evidence available through Vedic and allied literature portraying the nature of Vedic polity, the functionalities of its various institutions, and the various social and religious practices. The book is not a narrative but critically examines the nature of changes in a host of these areas that occurred at each stage of Vedic polity from early Vedic period to post Ṛig-Vedic period. It outlines in historical perspective the various stages involved in the development of Vedic polity and Vedic canon and how the two processes have gone along together. It contains extensive discussions on political system and institutions, religious and social practices as they obtained during the Rig-Vedic and post Rig-Vedic periods. It provides a fresh approach to the cult of sacrifice and fire rituals practiced by Vedic Aryans along with an in-depth analysis of the Vedic view of Nationalism, Sovereignty and State as discernible from Vedic texts .The book also features an extensive discussion on the institution of kingship, administrative machinery, role of various entities in the polity including the Purohita, the Sabha and the Samiti, position of women, Varna system and features of tribal kingdoms, such as the Kuru-Panchalas and Kosala-Videhas. Isolating political and social aspects from the essentially religious character of Vedic literature, an attempt has been made to show with due corroboration that the tribal polity was not deficient in political content contrary to the stance of some scholars to depict Vedic Aryans as apolitical and inward looking. The present book partakes both the current and previous scholarship on the subject but breaks a new path with its exclusive focus on the Rig-Vedic and Post Rig-Vedic polity, together with a balanced and objective assessment of their features. It brings all the relevant and connected issues on to one platform, and deals with them in a holistic manner. Its unique features include: • The “Vedic Grid”: a graphical representation and tabulations of the characteristics of each of the about 50 Vedic tribes, including information on the location of their habitat, their time line, the names of their chieftains and their linkage with priestly clans. • A special focus on the Second Urbanization taking place in the Gangetic valley between the 6th and 4th centuries BCE. It explains how towards the end of the later Vedic period, the polity underwent a change in political, social and economic spheres which blossomed later during the period of Mauryas. • Two appendices dealing with the theories of Aryan migration and the relationship of the Vedic Aryans with the Harappa culture and what can be ascertained by Vedic literature.

The Distinction of Human Being

An Introduction to the Logotectonic Method of Conception

Thomas Kruger Caplan, Ostfalia University of Applied Sciences, Germany

Perhaps we are never done with thought, nor should be. If this is indeed the case, then Kant may have been right after all in supposing that folks will never lose interest in metaphysics, in thought thinking thought. But what of academics? Where would we find these days a comprehensive treatment of pure reason, of the epochs of its origins and accomplishments, that is not just another collection of interpretations of “source” texts in translation? This study introduces philosophy students and professionals to the “logotectonic” method of conception as developed by Heribert Boeder, a pupil of Martin Heidegger, which is broadly structuralist in its approach but endeavors to make evident how the principles of rationality governing the Occidental tradition of λóγος (logos) – even those dictated by the animus of our post/modern world of thought in opposition to it – are, in fact, founded upon the “nature” of pure reason itself, the intellect, the discipline, and the art of which can be understood as constituting a unique “language” containing a vocabulary of distinguished terms, a syntax that determines their ratios, and rules of inference with which these terms of principle, insight, and issue are built into trains of thought about thought, every thought. As a result, the wisdom of the Muses (Homer, Hesiod, Solon), of the Holy Spirit (the Synoptic Narratives of Mark, Luke, and Matthew, the Apostolic Letters of Paul, the Gospel of John), and of Humanity (Rousseau, Schiller, Hölderlin) can be seen to have thrice articulated, in their own terms, a moving vision of our experience with the distinction of human being, inspiring critical reflection to consider the λóγος as a destiny with regards to which even we, as the thinkers, the doers, and the builders of today, are still learning what it means to make a difference. ‘The Distinction of Human Being’ offers contemporary thinkers, beginners as well as professionals, a comprehensive reading of the origin and the tradition of metaphysics encompassing the life and times of pure reason as it unfolds across its theoretical, practical, and poetic endeavor the last of which suggests what a philological philosophy might entail and demand of a new generation of friends of wisdom.

Titans of the Forests

The Economic Evolution of the Human Species and that of Our Cultures

Gregory V. Short

Instead of dwelling on the biological, physiological, or even the genetic aspects of our evolution, “Titans of the Forests” takes a completely different approach, which could be referred to as the unchartered and neglected field of macroevolution. Uniquely captivating, controversial, and very readable, it is the author’s contention that we as a species were continuously forced to change our way of obtaining nourishment, or rather our various economies, in order to adapt to the ever-changing world. And as a result of this economic adaptation, our species would then and only then begin to slowly change into the modern humans of today. For much too long, the world’s scientific community has directed the discussion of our incredible evolution. As a matter of fact, our species’ biological, physiological, psychological, and cultural evolution has been instigated, propelled, and shaped by our economic adaptation to a fluctuating environment. In a very real sense, the scientists are so far into the trees that they have actually ignored the forest. Consequently, we teach human evolution as a hodgepodge of different theories within the realm of microevolution, thus failing to understand or even to recognize the economic thread that binds them altogether. By integrating the timeline of our prehistoric past with that of our earliest known economies (food gathering, scavenging, and nomadism), the author was able to synthesize a sequence of events that illustrates the economic basis of our remarkable ascension and the beginnings of our present day institutions. He not only reveals the genesis behind the cultural forces that exist within every human society, but for the first time, he has created a systematic and holistic approach in explaining the “how” and the “why” we have economically, physiologically, and then culturally evolved. For unlike the rest of the animal kingdom, we have possessed the extraordinary ability to change our economy, which has made us an extremely adaptable species.

Economic Growth

How it works and how it transformed the world

Edward A. Hudson

How does economic growth work? Beginning with the history of leading countries over the past 2000 years, Economic Growth finds which countries have achieved sustained growth and how they did it. The effects of growth are examined on a human scale. The benefits of growth are enormous in terms of life, health, education, leisure and opportunity, while the downsides can be managed by appropriate policies. Economic Growth develops a new theory of growth. This new theory is based on careful analysis of actual growth; it covers the causes and mechanisms as well as the results of growth. This new theory extends conventional theory by operating at the industry level and by placing demand considerations at the forefront of growth. Demand growth – based on product innovation, marketing, credit and the consumer society – drives the economy forward while supply growth – based on investment and process innovation – sustains the growth in spending and incomes. Growth is not automatic but, in the right conditions, demand and supply expansion work together to generate sustained growth. Economic Growth offers a new view of growth, unique in its combination of historical depth, intellectual clarity and practical relevance. Its original insights will interest academic and professional economists, while its comprehensive treatment and lucid explanations make it an excellent guidebook for anyone interested in economic growth.