15-10-2020: Five years theory of the labour market
Author: E.A. Bakkum
The Gazette elaborates on the theory of the labour market since its establishment. The present column gives a summary of some of the previous publications. Utility functions are described, which take into account the disutility of labour. The needs, motives and motivation of workers are studied, following De Man and Herzberg. The views of psychology and institutionalism on the labour market are explained. The hedonistic wage theory and opportunism are modelled .... Read more
25-09-2020: Social capital
Author: E.A. Bakkum
The present column studies the influence of social capital on the social progress. Notably the views of J.S. Coleman and R. Putnam are discussed. Putnam proposes an index for measuring social capital. He argues that society benefits from more social capital. Nonetheless, the conclusions remain controversial. Therefore the columns describes several alternative findings from psychology, philosophy, and institutionalism. This also does not eliminate the doubts about the conclusions .... Read more
22-06-2020: The new institutional economics
Author: E.A. Bakkum
Institutions are a popular theme in the Gazette. The present column discusses two currents of the new economic institutionalism. Oliver Williamson takes the neoclassical paradigm as his starting-point, and Douglas North develops an evolutionary theory. Both analyze the transaction costs. Cases are studied of adverse selection, self-enforcing contracts, and moral hazard. Time-inconsistency, the principal-agent problem, sunk investments and learning-processes (innovation, immitation) are discussed .... Read more
12-06-2020: Economic networks and groups (2)
Author: E.A. Bakkum
About three years ago the Dutch economics P. Frijters presented an economic theory, which combines a group model with the concept of the homo economicus, who is capable of love. The present column tests the theory with the help of knowledge from sociology and psychology. It turns out that these two disciplines indeed support the hypotheses in the theory of Frijters. The insights are applied to reality, namely the enterprise, the bilateral transaction, the cartel, and the branch organization .... Read more
07-06-2020: Economic networks and groups
Author: E.A. Bakkum
Although group processes are often ignored in economics, it is known from sociology and psychology that they do exert influence. The economist R.H. Coase has already pointed to the costs of the operation of markets and organizations. Recently, among others the economist P. Frijters and the sociologist J.S. Coleman have elaborated on this phenomenon. The present column describes the group dynamics with the help of the book of D.R. Forsyth. Discussed are leadership, the influence of group norms, decisions, and conflicts within the group and between groups .... Read more