I was initially drawn to economics as a way to understand and address global problems of poverty and hunger, like those I saw in Africa with the Peace Corps and later as a researcher. As my interests broadened toward environmental and other social problems, again I found that economics provides valuable insights about their causes and possible solutions. Economics is unfortunately often misunderstood and defined too narrowly: but as a social science, it encompasses a broad framework to comprehend individuals, families, cities, nations. It encompasses philosophical thought, normative questions, and intangibles like humans’ desire for respect. After decades as an economics professor I still find its insights fascinating and powerful.
I wrote
Environmental Economics for Tree Huggers and Other Skeptics
In this slim book, Ken Arrow – Nobel laureate and “one of the transcendent minds in the history of economics” – reveals with extraordinary clarity many essential truths about how the world works and why.
The first of these four essays is among the most eloquent and succinct statement about the core conflicts humanity faces: between the individual and society, between freedoms and collective obligation, between compromise and commitment.
Given that context, Arrow builds a framework for understanding the nature of organizations: their purposes, processes, and the central role of information. The clarity with which Arrow has developed this economics of information – an asset intangible and unmeasurable – reveals his genius.
The inquiry closes by considering the role of authority and responsibility; but throughout there are gems of insights in nearly every paragraph.
The tension between what we wish for and what we can get, between values and opportunities, exists even at the purely individual level. A hermit on a mountain may value warm clothing and yet be hard-pressed to make it from the leaves, bark, or skins he can find. But when many people are competing with each other for satisfaction of their wants, learning how to exploit what is available becomes more difficult. In this volume, Nobel Laureate Kenneth J. Arrow analyzes why - and how - human beings organize their common lives to overcome the basic economic problem: the allocation…
The aims of economic development are often said to be higher incomes, industrialization, efficient investment, and poverty alleviation.
Amartya Sen argues for a broader goal: increasing the capability of all human beings to achieve those things that they most value.
Such an agenda implies more ambitious goals for empowering people, especially in poor countries, to begin a process of expanding the real freedoms that people enjoy: education, health care, longevity, and the ability to influence political decisions.
Sen, a Nobel laureate in economics, draws on a lifetime of thought about human predicaments, famines, and poverty, how to define one’s capabilities, and the meaning of one’s ‘standard of living.’
Rather than offering specific recipes, this book provides a provocative framework for thought.
In Development as Freedom Amartya Sen quotes the eighteenth century poet William Cowper on freedom:
Freedom has a thousand charms to show,
That slaves howe'er contented, never know.
Sen explains how in a world of unprecedented increase in overall opulence, millions of people living in rich and poor countries are still unfree. Even if they are not technically slaves, they are denied elementary freedom and remain imprisoned in one way or another by economic poverty, social deprivation, political tyranny or cultural authoritarianism. The main purpose of development is to spread freedom and its 'thousand charms' to the unfree citizens.
Private property or the commons? Free enterprise or public ownership?
Arguably the most substantive contribution to such debates in the past 50 years has come from Elinor Ostrom for her decades of study of common-pool resource management.
From case studies around the world and from centuries past, she proves that collective ownership need not end in a “tragedy of the commons,” but can succeed.
In work that won her the Nobel Prize in Economics (she is a political scientist) studying community-managed fisheries, forests, grazing lands, and watersheds, Ostrom describes and evaluates successes and failures in great detail and with attention to the role of rules, monitoring, and enforcement, and leadership, in determining the kinds of governance that are most likely to succeed.
The governance of natural resources used by many individuals in common is an issue of increasing concern to policy analysts. Both state control and privatization of resources have been advocated, but neither the state nor the market have been uniformly successful in solving common pool resource problems. After critiquing the foundations of policy analysis as applied to natural resources, Elinor Ostrom here provides a unique body of empirical data to explore conditions under which common pool resource problems have been satisfactorily or unsatisfactorily solved. Dr Ostrom uses institutional analysis to explore different ways - both successful and unsuccessful - of…
“Institutions are the rules of the game,” according to Douglas North, economic historian and Nobel Laureate.
Once created, institutions may be changed, but their legacy can be powerful. Economic history is a consequence of a dynamic, sometimes disruptive, process of institutional change, one for which a path to better institutions is not assured.
Exchange involves risks and uncertainty. In centuries past, kinship ties helped reduce uncertainty for exchange in insular communities. As exchange across larger distances expanded to engage with more distant communities, alternatives institutions were needed, such as contracts, laws, courts.
Whether one’s interest is promoting welfare, equity, sustainability, or economic growth (emphasized by North), this conceptual framework of institutional change offers powerful insights about how the world works and why it is organized the way that it is.
Continuing his groundbreaking analysis of economic structures, Douglass North develops an analytical framework for explaining the ways in which institutions and institutional change affect the performance of economies, both at a given time and over time. Institutions exist, he argues, due to the uncertainties involved in human interaction; they are the constraints devised to structure that interaction. Yet, institutions vary widely in their consequences for economic performance; some economies develop institutions that produce growth and development, while others develop institutions that produce stagnation. North first explores the nature of institutions and explains the role of transaction and production costs in…
In a computer game where individuals interact by either cooperating or defecting, what strategies would be most successful?
Axelrod asks that question with a famous 1970s computer tournament where “agents” adopt specific strategies to compete in classic repeated Prisoners’ Dilemma games.
In telling the story of his unique tournament, with its varied competing strategies and outcomes, much is revealed about strategy attributes and their strengths and weaknesses: we learn that it pays to be nice (but also forgiving).
The book’s main act, however, is when these and other tournament variations are shown to offer insights all around us; about arms control, WWI trench warfare, neighborhood segregation, symbiotic relationships in nature, evolutionary biology, social Darwinism, even morality.
The insights and applications are captivating and far-reaching.
This widely praised and much-discussed book explores how cooperation can emerge in a world of self-seeking egoistswhether superpowers, businesses, or individualswhen there is no central authority to police their actions..
Economics is power. Because economic arguments carry a great deal of weight. So putting them to work in support of environmental causes can be a powerful tool, especially in policy debates. This is true on defense also: recognizing and calling out the flawed, misleading, or overstated economic claims made by an opponent can be crucially important. So a working knowledge of basic economics can be a powerful ally.
This book carefully explains the tools of economic analysis and shows how they can help reveal the root causes of and potential solutions for environmental and natural resource problems. It employs proven techniques and a comfortable conversational tone that assume no prior economics training. The step-by-step approach unearths simple, easy-to-remember principles and shows how to apply them to real-world environmental problems.
I come by my interest in history and the years before, during, and after the Second World War honestly. For one thing, both my father and my father-in-law served as pilots in the war, my father a P-38 pilot in North Africa and my father-in-law a B-17 bomber pilot in England. Their histories connect me with a period I think we can still almost reach with our fingertips and one that has had a momentous impact on our lives today. I have taken that interest and passion to discover and write true life stories of the war—focusing on the untold and unheard stories often of the “Average Joe.”
October 24, 1944, is not a day of national remembrance. Yet, more Americans serving in World War II perished on that day than on any other single day of the war.
The narrative of No Average Day proceeds hour by hour and incident by incident while focusing its attention on ordinary individuals—clerks, radio operators, cooks, sailors, machinist mates, riflemen, and pilots and their air crews. All were men who chose to serve their country and soon found themselves in a terrifying and otherworldly place.
No Average Day reveals the vastness of the war as it reaches past the beaches in…
October 24, 1944, is not a day of national remembrance. Yet, more Americans serving in World War II perished on that day than on December 7, 1941, when the Japanese attacked Pearl Harbor, or on June 6, 1944, when the Allies stormed the beaches of Normandy, or on any other single day of the war. In its telling of the events of October 24, No Average Day proceeds hour by hour and incident by incident. The book begins with Army Private First-Class Paul Miller's pre-dawn demise in the Sendai #6B Japanese prisoner of war camp. It concludes with the death…
