Index

absolute surplus value, 61

accumulation: of capital, 59, 71; general law of capital, 70-2; and income distribution, 117; as institutional goal of markets, 30; and Marx, 30; and Schumpeter, 31; and Smith, 30

administration, replacing politics, 45 Alchian, Armen A., 172-3 Arendt, Hannah, 14, 15

Arrow, Kenneth, 135-7, 196 authoritative allocation, see political, allocation

authoritative decisions, 19 authority, 17-19; system of, 17 autonomy, as liberty, 203 Avineri, Schlomo, 38, 65, 66

Baran, Paul, 176

Barber, Benjamin R., 155-6 Becker, Gary, 126-7 Benjamin, Roger, 10

Bentley, Arthur, 19, 185 Bettelheim, Charles, 58, 63 Bobbio, Norberto, 64

Bowles, Samuel, 171 Buchanan, James, 133

capital, 43; concentration of, 70; internal

laws of, 72

capital gains, 111 capital market, and instability, 108-14 capitalism, and investment, 63 capitalist, and worker, 59-60; see also class capitalist class, 67-8, 76; and interests, 67;

objective of, 59; and state role, 76; and working class, 67; see also class capitalist economy, 58 capitalist ethic, see Protestant ethic chaos theorem, 137-8 choice, and scarcity, 81-5 circuit of capital, 59 circular flow, 106-8; and government, 120-1 circularity of economic process, 103-6 civil society, 5, 36-8; defined, 37-8; and social division of labor, 57

class, 26, 27, 55, 56-68; defined, 64; emergence of in Marx, 57, 218; polarization of, 71; and social relations, 53; and the state, 77; see also working class, and capitalist class

class consciousness, 64-5; and working class, 65

class interest, 61, 63 class polarization, 69 class struggle, historical tendency of, 63 classical political economy: defined, 3-5, 33, 217-19; Marxian critique, 218-29

Coase, Ronald H., 171 collective action, 141-3 commodities, 48 commodity circulation, 58-9 communitarian approach, 209-10; critique of justice, 214-15

competition, 62-3; as self-limiting, 63 concentration of capital, see capital Connolly, William E., 178 constrained choice, 79; and economizing, 86 consumption, workers and wage, 48 contractarian approach, 204-9 cost-benefit analysis, 146; and policy, 146 Cox, Robert W., 11 Crick, Bernard, 122-5 crisis of the state, 194

cumulative process, 102-3, 111-12 cyclical instability, 102

Dahl, Robert A., 8, 196 demand management, 122-5 Demsetz, Harold, 172-3 Dewey, John, 14 difference principle, 205-6 division of labor, 36, 46-7, 52-3, 217 Duvall, Raymond, 10

Easton, David, 8, 16 economic analysis: of institutions, 149-50; of policy, 143-8

economic approach to politics, 155, 218-19; defined, 128-33; limitations of, 155-8 economic calculation, 21-6; and economic activity, 23-4; and economizing, 22; and politics, 31-2; and provisioning, 26 economic circuit, 111-12 economic crisis, 63 economic cycle, 106-14 economic interest: and class consciousness, 64-9; and politics, 69

economic laws, 36 economic order, 35 economic reasoning and political institutions, 151-4

economic sphere, primacy of, 33

economic theory, applied to politics, 133-54 economics: concepts of, 21-8; defined, 5, 21, 126-7; defined in relation to politics, 31, 52; as efficient allocation, 126; and markets, 159; as material well-being, 126; of policy, 143-8; and politics, 127-8 economizing, 22; see also constrained choice economy, 1, 28-31; and class, 77; classical, 217-28; as different from economics, 31, 52; social positions of individuals defined by, 60

efficiency, 131-2, 148; and policy, 145-6 Ekelund, Robert B., Jr., 135

Elster, Jon, 129 embedding of the economic, 36; in noneconomic institutions, 37 employment, and rate of investment, 62 Engels, Friederich, 74 equal regard, principle of, 213-14 ethical order, 210, 215 ethical state, 78 ethics, and property relations, 211 Evans, Peter B., 185, 194 exchange: in Hegel, 211; as voluntary transaction, 38, 217, 221-2 expectations, 108 externalities, 13, 67, 89-92, 203; and cost, 91; and resource allocation, 90

Ferguson, Adam, 34 Field, Alexander, 156 financial circulation, 112 free rider, 83-4; see also public choice, theory of

Galbraith, J.

Gintis, Herbert, 171 Gourevitch, Peter, 194 government, 92-3; and intervention in market, 102; private use of, 10; stabilization policy, 119-22; tied to law, 9 government failure, theory of, see political failure, theory of

government organization, 144 Gramsci, Antonio, 10, 78, 196

Hegel, G.

Heller, Agnes, 176 hierarchy, 171-2 historic bloc, 11 Hodgson, Geoffrey M., 172 Hyneman, Charles S., 9

immiseration of the worker, 71 impossibility theorem, 136-7 income: distribution, 206-7; redistribution, 84

indifference curves, 147-8 individual: integrity of, 215; and interests, 56; rights, 198-9; self-determination of, 210-11; and social order, 56; and utility, 145

induced investment, 108-9 industrial reserve army, 71 inefficiency, 22-3 inequality: fairness of, 207; of income and wealth, 116-17; justice in Rawls, 205-7; see also income, distribution instability, of the market, 103 institutions: as constraints, 149; defined, 149; and market behavior, 150-51; and rational choice approach, 151-3; as rules, 156; and structure of the economy, 30 interdependence, and oligopoly, 168 interest: direct, 163-4; interdependence of, 163-5; and power, 163-4; real or imputed, 164

interests: and class consciousness, 68-9; economic and political agenda, 65; emergence of class, 57; political, 68-9 interest groups, 5, 141-2 invisible hand, 35, 43

just society, 197-8

justice: approach to political economy, 221; concept of, 5, 197-9; as fairness, 204—7; libertarian concept of, 199-204; and politics, 208; redistributive, 201; as

respect for human rights, 204; state role

in, 200-1

Kalecki, Michal, 102 Katzenstein, Peter J., 193-4 Keohane, Robert O., 160 Keynes, John Maynard, 4, 102, 111, 112,

115, 117, 207 Keynesians, 62, 218 Knight, Frank, 166-7 Krasner, Stephen D., 189, 190, 191, 196

labor: and capitalism, 66; demand for, 114—

15; and means of production, 88; as

produced commodity, 49 labor-capital contract, 168-73 labor market, 114-19; and capital market, 114-19; and livelihood, 168-70; and power, 169-70; segmentation of, 62 labor process, 47 labor theory of value, 47, 79; and constrained choice, 79 Lasswell, Harold D., 8 Lenin, V. I., 74, 75 Levine, David, 213 libertarianism, critique of, 202-4 Lindblom, Charles E., 114, 166, 169-70, 173

long period, 109-14 Lukacs, George, 196 Lukes, Steven, 163, 176

MacPherson, C.

marginalist revolution, 79 Marghn, Stephen, 172 market, 39-40, 222; in neoclassical political

economy, 220; as social institution, 58-9; and the state, 53; as voluntary transaction, 86

market failure, 5, 144, 218; in classical political economy, 40-1; and Keynes, 100-1

market power, see power, market market self-regulation, 2-5, 33, 38-42, 46;

critique of, 100; in Keynes, 218 Marshall, Alfred, 126 Marx, Karl, 3, 24, 33, 44, 47, 51, 55-79, 169

material interests, 60; and economic class,

56-60

material provisioning, 24-8; constraints, 27­8; and separation of economic and political, 32

materialism, 34 means of production, 110 monopoly, 95-6; see also oligopoly Morgenthau, Hans J., 8

national interest, 194 natural rights school, see rights needs: direct or subjective, 177; real, 177 neoclassical approach, 4, 218, 221; limits of, 98

North, Douglass C., 149 Nozick, Robert, 200, 205

Okun, Arthur Mj, 102-3 oligopoly, 95-6; as market power, 167-8 Olson, Mancur, 21, 141 organic-statist tradition, 19

paradox of thrift, 118

Pareto optimality, 83, 91, 132, 146-7, 224;

and competence of markets, 98; and neglect of power, 159-60

Piore, M. J., 118-19 pluralism, 185 Polanyi, Karl, 28 policy networks, 10, 193-4 political, 218; allocation, 16; business cycle,

123; consciousness, 65; failure, theory of, 144; inputs, 10-11; institutions, role of 149-50; socialization, 11; system, 16-17, 18, 224

politics: as authoritative allocation of values, 16; and class relations, 53; and coercion, 224; concepts of, 5, 8-21; and economics in Keynes, 122-25; as government, 8-9, 17; Greek conception of, 7; and markets, 223; Marx on, 218; as the public, 11, 17, 18

positive public choice theory, see public choice, theory of

positivist school of rights, see rights Poulantzas, Nicos, 76, 77 power, 5, 220, 222; bargaining, 166;

conditioned, 173-8; economy as system of, 221; and firms, 161-80; as foundation of political economy, 179-80; interpretations of, 161-3; market, 96, 165-8; and the market economy, 165-73; and neoclassical political economy, 179-80; with others, 161-3; potential, 166; “power over”, 161— 2, 163, 174, 222; and resistance, 161 preferences, 130-1, 137 price, 47-53, 83; and marginal cost, 91;

market, 51; of production, 48 private: as distinct from public, 11; gain, pursuit of, 34; interest and public good,

42-4; ownership of the means of

production, 110-14 production, methods of, 34; with surplus,

50-1; of value and surplus, 55 production structure, 48-51; and price, 49 production of value and surplus, 55 profit, 43, 61, 71; margin, 108;

maximization, 91-2 profitability and investment, 107 proletarianization, 73 property rights, 87-9; libertarian approach

to, 199-200 Protestant ethic, 163 Przeworski, A., 73, 74 public: as common world (Arendt), 15;

defined, 14, 18; as distinct from private,

11, 13; as political, 15; and the state, 13 public authority, 211-12 Public Choice Society, 134 public choice, and individuals, 134-5; and politics, 135; positive versus normative, 135, 138-43; positive and interest groups, 141; theory of, 133-8, 143 public good: and capitalists, 43; defined, 12,

93-5; and free rider, 93-4; and private ends, 38, 45; and private good, 222-4; and Smith and Marx, 43 public interest, 12-13; and public

preference, 13 public works, 44

rational choice, 80; and maximizing welfare,

80-1; rationality as, 128-31 rational choice theory, 130; with institutions

as endogenous, 153-4

rationality, 220, 221-2; and efficiency, 132— 3; as rational choice, 128-31; and self­interest, 130

Rawls, John, 198, 202-8 real wage, 61 regulation theory, 119 Reich, Robert B., 89 relative surplus value, 61 reproduction, 48-9; and allocation, 27 Resnick, Stephen A., 133, 178 revolution, 70, 72 revolutionary change, 73 revolutionary politics, 70-2 Rhoads, Steven E., 90 Ricardo, David, 47 rights: and limits to property, 88; school of natural, 89; positivist school of, 89; utilitarian approach, 198-9

Robbins, Lionel, 126 Rothbard, Murray, 169

Rousseau, J.

Rueschemeyer, Dietrich, 194

Sabel, C. F., 118-19

Sahlins, Marshall, 24 Sandel, Michael, 209

Sartori, Giovanni, 7

Say’s law, 40

Schelling, Thomas C., 97

Schmitt, Carl, 8

Schmitter, Phillipe C., 186

Schumpeter, Joseph, 98 self-interest: and economic approach to

politics, 157-8, 220; pursuit of, 38, 41 self-regulating market, see market self­

regulation

Sen, Amartya, 198

separability, 53-4 separateness: of economic activities from

family, 37; of economics as institution, 28-30; of the economy, 32; of persons, and libertarian theory, 203

separation, of the economy from politics, 6, 7, 33

Shattschneider, E. E., 8

Shepsle, Kenneth A., 152-3

short period, 109-14

Skocpol, Theda, 185, 192, 193

Smart, J. C. C., 198

Smith, Adam, 34, 35, 42-3, 44, 46, 47, 168­9

social democracy, 72-4, 218; and class action, 73; reformist strand of, 73-4

social division of labor, 27, 48, 55-6; and commodity exchange, 46

social institutions, 34

social philosophy of Keynes’s general theory, 116

social reproduction, 47-52

social will, 182-3 society, not political, 9 society-centered approaches, 183-8;

utilitarian, 183-6; Marxian, 186-8

sphere of exchange and sphere of production, 171-2

Sraffa, Piero, 49

stabilization: objectives of, 120-5; political implications of, 122-5; as technical problem, 123

state: agenda of, 2, 5, 75; as agent of “some over others,” 99; classical conception of, 35, 218; defined, 10; and government, 10; historical-structural approach to, 194-5; Keynes’s concept of, 123; and legitimacy, 195; and market, 53; Marxian and utilitarian theories of, 74-8, 188, 218; and national interest, 189-90; and politics, 220; role of, 77; and society, 44-6; strong and weak, 183; as superstructure, 78; transformational view of, 191-6; utilitarian approach to, 183-6

state autonomy, 181, 182-3, 184, 191-2, 194; Marxian approach to, 186-8; and pluralist theory, 185

state-centered approaches, 220

state organization, 192-3 statism, 188-91

statist, as opposed to society-centered, approaches, 188-9

Steuart, Sir James, 35 structure of reproduction, 56 subjective utility theory, 79 subsistence, 26-7, 48-9; bundle, 52; wage,

60-1

surplus, 50-3, 70; defined, 27-8

Sweezy, Paul, 176

Swift, Jonathan, 8

Taylor, Charles, 209

taxes, and stabilization, 121

Therborn, Goran, 75

Thomas, Robert Paul, 149

Tollison, Robert D., 135

Tucker, R.

value and distribution, 33, 34; in classical political economy, 46-53

voluntary contract and authority, 97, 160

voluntary exchange, 223

voluntary transaction, 82, 89-90

wage, 85; as cost, 67; contract, 61, 114-16, 169; determination, 48; see also subsistence

wage contract, 61, 114-16, 169

wage determination, 48

wants, structural or objective determination of, 26

Weber, Max, 161-2, 163, 171

Weingast, Barry R., 152-3

Weir, Margaret, 192

welfare: and choice, 83-4; group and individual, 81-2; maximization and free market, 90

well-ordered society, see just society

Wicksellian unanimity, 144-5

Williams, Bernard, 198

Winfield, Richard, 212

Wolff, Richard D., 133, 178

Wolin, Sheldon, 181

working class, 65; and capitalist class, 67; and civil society, 65; universality of, 66; see also class