By Toufic Gaspard
This paintings assesses Lebanon's improvement adventure in the course of 1948-2002, a case examine of laissez-faire functionality over greater than 50 years. The textual content analyzes the powerful financial obstacle of the mid-1980s and the reconstruction coverage that produced susceptible development and excessive govt indebtedness.
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Additional info for A Political Economy of Lebanon, 1948-2002: The Limits of Laissez-Faire (Social, Economic and Political Studies of the Middle East and Asia)
50. GASPARD_F3_5-41 11/11/03 11:23 AM Page 24 24 theories lies in what Schumpeter has called “the pre-analytical vision,” which is partly manifested by the questions that a theory poses, and by its original or axiomatic representation of reality. In PK economics, production, not allocation, is the economy’s momentum. The distinction is crucial because the latter entails emphasis on scarcity and exchange, while the former raises issues of skills and growth. Scarcity implies limited resources and given technology, which calls for methods of optimization, while growth highlights problems of learning and technical progress.
Rather, he/she looks at the problem the way Sraﬀa (1960) did, as we explain below. e. one where aggregate output is just enough to replace the means of production and the necessary wages for human reproduction so that no residual or proﬁt is left. In such an economy, there is only one solution, a unique set of prices that are solely determined by the technical conditions of production. 53 Next, consider the more realistic case of an economy with surplus or proﬁts. e. the number of sets of relative prices, that would allow reproduction are virtually unlimited since the relative-price outcome depends on the given technical conditions of production and on the virtually unlimited number of ways in which surplus can be distributed between wages and proﬁts.
Landesmann and Pagano, 1994, p. 199. GASPARD_F3_5-41 11/11/03 11:23 AM Page 28 28 As products of human institutions, economic systems are therefore open systems, also called non-ergodic or non-deterministic systems. The implication is that the secular process of economic development is not fully informed by natural endowments and technical conditions of production alone but also, if not mainly, by institutional considerations such as the distribution of political power in society. g.