The palgrave handbook of political economy

The Palgrave Handbook
of Political Economy
Edited by
Ivano Cardinale · Roberto Scazzieri


The Palgrave Handbook of Political Economy


Ivano Cardinale · Roberto Scazzieri
Editors

The Palgrave
Handbook of Political
Economy


Editors
Ivano Cardinale
Goldsmiths, University of London
London, UK

Roberto Scazzieri
Department of Economics
University of Bologna
Bologna, Italy
and
National Lincei Academy
Rome, Italy
and
Clare Hall and Gonville and Caius College

Cambridge, UK

ISBN 978-1-137-44253-6
ISBN 978-1-137-44254-3  (eBook)
/>Library of Congress Control Number: 2018936587
© The Editor(s) (if applicable) and The Author(s) 2018
The author(s) has/have asserted their right(s) to be identified as the author(s) of this work in accordance with
the Copyright, Designs and Patents Act 1988.
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse
of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and
transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or
dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does
not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective
laws and regulations and therefore free for general use.
The publisher, the authors and the editors are safe to assume that the advice and information in this book
are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the
editors give a warranty, express or implied, with respect to the material contained herein or for any errors or
omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in
published maps and institutional affiliations.
Cover credit: Granger Historical Picture Archive/Alamy Stock Photo
Printed on acid-free paper
This Palgrave Macmillan imprint is published by the registered company Macmillan Publishers Ltd. part of
Springer Nature
The registered company address is: The Campus, 4 Crinan Street, London, N1 9XW, United Kingdom


Preface

The aim of this Handbook is to outline the field of political economy as the
domain of the interdependencies between the objectives of individuals and
groups within the polity and the internally structured constraints, posed by
the material sphere, to the attainment of those objectives. This Handbook
transcends the received dichotomy between political economy as an application of rational choice theory or as the study of the causes of material welfare, outlining a broader field of study that encompasses those traditions.
The Handbook is divided into three parts. The first part (‘Foundations’)
addresses the areas of social life underlying the provision of material
needs through social coordination. The second part (‘Research Themes’)
­reassesses the fields of interaction between the economy and the polity on
which political economy is built. The third part (‘Ways Ahead’) outlines a
­theory of political economy that brings together means-ends action and the
interdependencies underlying the provision of needs.
The Handbook aims to provide new categories of analysis, which are
grounded in the traditions of political economy and highlight its standing as
a central component of social science.
London, UK
Bologna, Italy

Ivano Cardinale
Roberto Scazzieri

v


Acknowledgements

We wish to express our gratitude to the institutions that have provided the
academic freedom and intellectual environment without which this volume
would not have been possible. Ivano Cardinale is grateful to Goldsmiths,
University of London, and to Emmanuel College, Cambridge; Roberto

Scazzieri to the University of Bologna, the National Lincei Academy, Rome,
and to Clare Hall and Gonville and Caius College, Cambridge. We are
also grateful to the Cambridge Research Seminar in Political Economy at
Emmanuel College and the Cambridge Seminar in the History of Economic
Analysis at Clare Hall (CAMHIST) for hosting meetings that have
­contributed to shaping this Handbook.
Finally, and most importantly, we are grateful to the colleagues who have
shared our objective to reassess the field of political economy and envision
its future directions.

vii


Contents

1

Political Economy: Outlining a Field1
Ivano Cardinale and Roberto Scazzieri

Part I  Foundations
2

The Fields of Policy-Making29
Vincent Dubois

3

Political Economy and the Public Sphere53
Jeremy Adelman and Jessica Mack

4

Politics and Economics of Markets91
Craig Muldrew

5

Historical Political Economy133
Sophus A. Reinert

6

Classical Political Economy171
Ivano Cardinale

Part II  Research Themes
7

Political Economy of Economic Theory193
Roberto Scazzieri
ix


x    
Contents

8

Political Economy of Economic Value235

Ajit Sinha

9

Constitutional Political Economy259
Viktor J. Vanberg

10 Political Economy of Civil Society289
Adrian Pabst
11 Industrial Structure and Political Outcomes: The Case
of the 2016 US Presidential Election333
Thomas Ferguson, Paul Jorgensen and Jie Chen
12 Economic Policy441
Bruno Amable
13 The Political Economy of Industry463
Patrizio Bianchi and Sandrine Labory
14 Political Economy of Liquidity: The European Economic
and Monetary Union489
Rainer Masera
15 Modern Fiscal Sociology529
D’Maris Coffman
16 Comparative Political Economy543
Robert Boyer
17 International Political Economy605
Martin Daunton
18 Political Economy of Resources, Technologies, and Rent657
Alberto Quadrio-Curzio and Fausta Pellizzari
19 Political Economy of Structural Change705
Michael Landesmann

Contents    
xi

20 Political Economy of Social Transformation: China’s Road
in a Global Perspective749
Wang Hui
21 Structural Political Economy769
Ivano Cardinale
Part III  Ways Ahead
22 Political Economy as Theory of Society787
Ivano Cardinale and Roberto Scazzieri
Index817


Notes on Contributors

Jeremy Adelman is Henry Charles Lea Professor of History, Princeton
University, Princeton and Director of the Global History Laboratory at
Princeton University. His research has concentrated on economic and social
transformation at the world scale, and on the asymmetries between centre
and periphery that this process entailed. This research programme has taken
him to investigate the patterns of agricultural development in Argentina
and Canada at the turn of the twentieth century, and the constitutional and
legal developments that accompanied the formation of a modern commercial republic in Argentina. In his later research, he investigated the wider
issue of the political economy of State formation in the Iberian Atlantic
and the intellectual contribution of Albert Hirschman to the analysis of
the triadic relationship between economic development, political constitutionalism, and intellectual modernity. He published Frontier Development:
Land, Labour, and Capital on the Wheatlands of Argentina and Canada
(1890–1914) (Oxford, Clarendon Press, 1994), Republic of Capital: Buenos

Aires and the Legal Transformation of the Atlantic World (Stanford (CA),
Stanford University Press, 1999), Sovereignty and Revolution in the Iberian
Atlantic (Princeton (NJ), Princeton University Press, 2006), The Odyssey of
Albert O. Hirschman (Princeton (NJ), Princeton University Press, 2013). He
also edited Essays in Argentine Labour History, 1870–1930 (Basingstoke and
London, Macmillan, 1992), and The Essential Hirschman, with an introduction by Jeremy Adelman; afterword by Emma Rothschild and Amartya Sen
(Princeton, NJ, and Oxford, Princeton University Press, 2013).

xiii


xiv    
Notes on Contributors

Bruno Amable is Professor of Economics at the University of Geneva,
Switzerland. He has been Professor of Economics at the University Paris 1
(Panthéon Sorbonne) and Paris School of Economics. His research interest
in the political economy of economic policy led him to investigate the role
of patterns of economic governance in triggering innovation and growth.
He then outlined alternative types of socio-economic organization historically implemented in capitalist economies, and investigated the effectiveness
of ‘neo-liberal’ economic policies in promoting innovation and productivity growth. His current research deals with institutional complementarities
as shown by the comparative analysis of capitalist economies and with the
political economy of labour markets and industrial relations. He published
many research papers and the books Les Systèmes d’innovation à l’ère de la
globalisation, co-authored with R. Barré and R. Boyer (Paris, Economica,
1997), The Diversity of Modern Capitalism (Oxford, Oxford University Press,
2003), L’Économie politique du néolibéralisme. Le cas de la France et de l’Italie,
co-authored with E. Guillaud et S. Palombarini (Paris, Editions Rue d’Ulm,
2012), Libéralisation, innovation et croissance. Faut-il vraiment les associer?,
co-authored with I. Ledezma (Paris, Editions Rue d’Ulm, 2015), Structural

Crisis and Institutional Change in Modern Capitalism: French Capitalism in
Transition (Oxford, Oxford University Press, 2017).
Patrizio Bianchi is Professor of Industrial Economics at the University
of Ferrara, Italy and Minister for Education and Research in the EmiliaRomagna Region, Italy. He is Economic Advisor for the development of the
Guang Dong Province, China. His research has dealt with the relationship
between market power and the organization of manufacturing production
starting with Adam Smith’s distinction between ‘work done’ and ‘work to
be done’. In this light, he investigated the global restructuring of the automotive industry in the 1980s, the scope for industrial policies after the early
2000s economic crisis, and the new industrial policies of the European
Union. He also examined the Italian path of economic development since
Italian Unification paying attention to the internal asymmetries associated
with the integration process. His current research deals with the organizational and policy requirements of the digital economy, the relationship
between customized mass-production manufacturing regime and data science, and the political economy of the social transformation induced by the
new manufacturing regime. His publications include many research papers
and the volumes Divisione del lavoro e ristrutturazione industriale (Bologna,
Il Mulino, 1984), Produzione e potere di mercato. Saggi di economia industriale (Bologna, Il Mulino, 1991), Industrial Policies and Economic Integration:


Notes on Contributors    
xv

Learning from European Experiences (London and New York, Routledge,
1998), Industrial Policy After the Crisis: Seizing the Future, co-authored
with S. Labory (Cheltenham, UK and Northampton (MA), Elgar, 2011),
Towards a New Industrial Policy, co-authored with S. Labory (Milano,
McGraw Hill Education, 2016), Il cammino e le orme. Industria e politica
alle origini dell’Italia contemporanea (Bologna, Il Mulino, 2017), and 4.0: La
nuova rivoluzione industriale (Bologna, Il Mulino 2018).
Robert Boyer is Economist at the Institut des Amériques, Vanves,
France. He is Former Director of Research at the French National Centre

for Scientific Research (CNRS) and Professor at the School for Advanced
Studies in the Social Sciences (EHESS). His research is primarily concerned with the transformation of economic regularities in the long period
and investigated the changes in the modes of socio-economic regulation
of capitalist economies across different historical phases and national contexts. In this connection, he paid special attention to transformations in
the institutional mechanism of macroeconomic coordination regulating the
relationship between industrial relations (wage contracts), innovation systems, monetary and financial regimes, and the international economy. His
recent research also investigated the institutional and macro-social foundations of the microeconomy. He published Accumulation Inflation, Crises,
co-authored with Jacques Mistral (Paris: Presses universitaires de France,
1983), La théorie de la régulation: une analyse critique (Paris, La Découverte,
1986), After Fordism, co-authored with Jean-Pierre Durand (London and
Basingstoke, Macmillan, 1997), La théorie de la régulation. Les fondamentaux (Paris, La Découverte, 2004), Une théorie du capitalisme est-elle possible? (Paris, Odile Jacob, 2004), Les financiers détruiront-ils le capitalisme?
(Paris, Économica, 2011), Économie politique des capitalismes. Théorie de la
régulation et des crises (Paris, La Découverte, 2015). He also co-edited (with
J. Rogers Hollingsworth) Contemporary Capitalism: The Embeddedness of
Institutions (Cambridge, Cambridge University Press, 1998); with Michel
Freyssenet, Les modèles productifs (Paris, La découverte, 2000); and with Yves
Saillard, Regulation Theory: The State of the Art (London, Routledge, 2002).
Ivano Cardinale is Lecturer in Economics at Goldsmiths, University of
London, and Life Member of Clare Hall, Cambridge. He was previously
a Research Fellow (Mead Fellow in Economics) at Emmanuel College,
Cambridge. He was the founding principal convener of the Cambridge
Seminar in Political Economy at Emmanuel College, Cambridge. His
research deals with foundational issues at the interface between economics,
political economy, and social theory. He uses models of structural economic


xvi    
Notes on Contributors

analysis to question received results of micro and macroeconomics. He also

uses such models in a political economy setting, to unveil largely unexplored
conflicts of interest—and possibilities for cooperation—between actors at
different levels of aggregation (such as social groups and industrial sectors).
His research in social theory has been devoted to developing a theory of how
agency and structure interact within human action. These research lines
are part of a broader programme—“Structural Political Economy”—which
explores how social and economic structures interact with actors’ decisions
in shaping the structure of economic interests, their political representation, and the political economy paths open to societies. He is also interested
in the comparative analysis of economic theories, He has published several research papers, including ‘Structural Liquidity’, co-authored with R.
Scazzieri (Structural Change and Economic Dynamics, 2016), ‘Exploring
Sectoral Conflicts of Interests in the Eurozone: A Structural Political
Economy Approach’, co-authored with M. Landesmann (WIIW Essays and
Occasional Papers, 2016) and ‘Beyond Constraining and Enabling: Toward
New Microfoundations for Institutional Theory’ (Academy of Management
Review, 2018). He co-edited (with D. Coffman and R. Scazzieri) The
Political Economy of the Eurozone (Cambridge, Cambridge University Press,
2017).
Jie Chen is University Statistician at the University of Massachusetts,
Boston and a co-director of the Research Design and Analysis Core for the
UMass Boston/Dana-Farber/Harvard Cancer Center Partnership Program,
funded by the National Institute of Health. She published extensively on
scan statistics, applied probability, and Bayesian spatial models. She also
served as a statistical consultant on numerous collaborative projects in both
the natural and social sciences. She received the B.S. from Peking University
in 1986 and the Ph.D. in statistics from University of Connecticut in 1998.
D’Maris Coffman is Professor of Economics and Finance of the Built
Environment and Director of The Bartlett School of Construction and
Project Management, University College London. She has been Mary
Bateson Research Fellow in History at Newnham College, Cambridge, then
Fellow and Director of Studies in the same College. She also was Founding

Director of the Centre for Financial History, Newnham College (2008–
2014). Her research interests include the history of British public finance,
historical fiscal sociology, the political economy of monetary policy, and the
origins of modern infrastructure. At the core of her work is the exploration
of the relationship between markets and the institutional-political order of
society. This approach led her to investigate the formation and management


Notes on Contributors    
xvii

of public debt in seventeenth century Britain, the institutional pre-requisites for the rise of financial capitalism, and the relationship between fiscal
arrangements and the relative weight of different interest groups in eighteenth century Britain and France. In her current research, she also investigates the political economy of infrastructural investment in contemporary
economies. She published Excise Taxation and the Origins of Public Debt
(Basingstoke, Palgrave Macmillan, 2013), and co-edited The History of
Financial Crises (London; New York: Routledge, 4 volumes) with L. Neal,
Questioning Credible Commitment: Perspectives on the Rise of Financial
Capitalism (Cambridge, Cambridge University Press, 2013) with A. Leonard
and L. Neal, The Atlantic World (London, Routledge, 2015) with A. Leonard
and W. O’Reilly, and The Political Economy of the Eurozone (Cambridge,
Cambridge University Press, 2017) with I. Cardinale and R. Scazzieri.
Martin Daunton is Emeritus Professor of History, Faculty of History,
University of Cambridge. Former Master of Trinity Hall, Cambridge,
and Former Head of the School of the Humanities and Social Sciences.
University of Cambridge. Past President of the Royal Historical Society
(UK). His research interests in the economic and social history of Britain
made him to study the social history of mining and housing and the relationship between consumer culture and citizenship in the modern Western
experience. His subsequent research investigated welfare policy and the politics of taxation in nineteenth and twentieth century Britain, and the construction of economic and social knowledge. His current work deals with
international political economy and the governance of the world economy
since the 1930s. He is also investigating the relationship between intergenerational justice and economic development. He published, among others,

Progress and Poverty: An Economic and Social History of Britain, 1700–1850
(Oxford, Oxford University Press, 1995), Trusting Leviathan: The Politics of
Taxation in Britain, 1799–1914 (Cambridge, Cambridge University Press,
2001), Just Taxes: The Politics of Taxation in Britain, 1914–1979 (Cambridge,
Cambridge University Press, 2002), Wealth and Welfare: An Economic and
Social History of Britain, 1851–1951 (Oxford, Oxford University Press,
2007). He also edited several scholarly collections, such as Worlds of Political
Economy: Knowledge and Power in the Nineteenth and Twentieth Centuries,
co-edited with F. Trentmann (Basingstoke, Palgrave Macmillan, 2004),
The Oxford Handbook on the World Trade Organization, co-edited with A.
Narlikar and R. M. Stern (Oxford and New York, 2012), and The Political
Economy of Public Finance: Taxation, State Spending and Debt since the 1970s,


xviii    
Notes on Contributors

co-edited with M. Buggeln and A. Nutzenadel (Cambridge, Cambridge
University Press, 2017).
Vincent Dubois  is Professor of Sociology and Political Science, University
of Strasbourg and Associate Member of the Centre for European Sociology
founded by Pierre Bourdieu. He has been Florence Gould Member at the
Institute for Advanced Study, Princeton. His research deals with the theory of the State and investigates public policy as a type of action embedded
in a system of relationships. This approach has led him to view the policy
domain as a field defined by the interdependence between different groups
of stakeholders (such as bureaucracies, professional organisations, and
experts), whose mode of interaction influences in a critical way the definition and implementation of policies. His research has dealt with the sociology and politics of culture, the politics of language, the public policies
towards destitution. His current work investigates the policies of social protection. His publications include Institutions et politiques culturelles locales:
éléments pour une recherche socio-historique (Paris, Ministère de la culture,
Comité d’histoire, 1996), La politique culturelle: genèse d’une catégorie d’intervention publique (Paris, Belin, 1999), La vie au guichet. Relations bureaucratiques et traitement de la misère, 3rd edition (Paris, Economica, 1999),

The Bureaucrat and the Poor: Encounters in French Welfare Offices (Farnham,
Ashgate, 2010), La politique culturelle: genèse d’une catégorie d’intervention publique (Paris, Belin, 2012), The Sociology of Wind Bands. Amateur
Music Between Cultural Domination and Autonomy, co-authored with
J.-M. Méon and E. Pierru (Farnham, Surrey, England and Burlington, VT,
Ashgate, 2013), Culture as a Vocation: Sociology of Career Choices in Cultural
Management (London, Routledge, 2015), La vie au guichet, administrer la
misère (Paris, Éditions Points, 2015).
Thomas Ferguson  is Emeritus Professor of Political Science, University of
Massachusetts Boston. He is also Director of Research of the Institute for
New Economic Thinking and Senior Fellow at the Roosevelt Institute. His
research deals with the interplay between economic and political interests
and is focused on the idea that party competition in the electoral process
reflects the differentiation of economic interests within the wealthiest strata
of society. At the core of this research programme is the consideration of
the cost of elections in mass democracy, which makes political parties to
compete for economic support from wealthy sponsors as well as for votes
in elections. In his current research, he investigates the relationship between
money and politics focusing on the influence of financial sponsorship on the


Notes on Contributors    
xix

outcomes of US elections. His publications include many scholarly papers
and the books Right Turn: The Decline of the Democrats and the Future of
American Politics, co-authored with J. Rogers (New York, Hill and Wang,
1986) and Golden Rule: The Investment Theory of Party Competition and
the Logic of Money-driven Political Systems (Chicago, University of Chicago
Press, 1995). He co-edited, with J. Rogers, The Hidden Election: Politics and
Economics in the 1980 Presidential Campaign (New York, Pantheon Books,

1981), and The Political Economy: Readings in the Politics and Economics of
American Public Policy (New York, M.E. Sharpe, 1984), and, with Louis
Ferleger, Voting in American Elections: The Shaping of the American Political
Universe since 1788, authored by Walter Dean Burnham (Bethesda,
Academica Press, 2010).
Wang Hui  is Changjiang Scholar Professor in the Department of Chinese
Literature and the Department of History, Tsinghua University, Beijing and
Director of the Tsinghua Institute for Advanced Study in the Humanities
and Social Sciences, Beijing. His research interests in alternative paths of
economic, social and intellectual history led him to investigate the Chinese
experience from the point of view of world history, economics and politics.
By this route, he examined the twinned processes of modernization in intellectual and economic history from the Enlightenment to the contemporary
age, and explored the intellectual and political ways by which markets and
market ideology have exerted a critical influence on social transformation
processes both in China and in the West. His recent publications include
China’s New Order: Society, Politics, and Economy in Transition (Cambridge,
Mass., Harvard University Press, 2003), The End of the Revolution (London
and New York, Verso, 2010), The Politics of Imagining Asia, ed. Theodore
Huters (Cambridge, Mass., Harvard University Press, 2011), China from
Empire to Nation-State (Cambridge, Mass, Harvard University Press,
2015), The Rise of Modern Chinese Thought (4 volumes, in Chinese, Beijing,
SDX Joint Publishing Company, 2004), The Short Twentieth Century: The
Chinese Revolution and the Logic of Politics (in Chinese, Hong Kong, Oxford
University Press, 2015), China’s Twentieth Century (London and New York,
Verso, 2016). He is the winner of “2013 Luca Pacioli Prize”.
Paul Jorgensen  is Assistant Professor of political science at the University of
Texas Rio Grande Valley in Edinburg, Texas. His research interests include
campaign finance, party politics, lobbying, policy formulation, and political economy. With funding and support from the Edmond J. Safra Center
for Ethics at Harvard University (2011–2013) and the Institute for New

xx    
Notes on Contributors

Economic Thinking (2012–2017), Jorgensen is improving campaign
finance data collected by the Federal Election Commission, the Internal
Revenue Service, and various state-level agencies. His research appeared in
the International Journal of Political Economy, the Journal of Law, Medicine
& Ethics, the Journal of Political Marketing, Policy Studies Journal, Political
Research Quarterly, and Social Science Quarterly.
Sandrine Labory is Professor of the Analysis of Productive Sectors and
of Industrial Policy and Sustainability at the University of Ferrara, Italy.
She has been Research Fellow of the Centre for European Policy Studies,
Brussels. Her research interests in long-term industrial policy, industrial
clusters and innovation policy made her to investigate intangible assets and
local development, the industrial policy response to economic crisis, and
the institutional framework of industrial policies. Her publications include
research papers in her field and the books Industrial Policy After the Crisis:
Seizing the Future, co-authored with P. Bianchi (Cheltenham, UK and
Northampton (MA), Elgar, 2011) and Towards a New Industrial Policy,
co-authored with P. Bianchi (Milano, McGraw Hill Education, 2016).
Michael Landesmann is Professor of Economics, Johannes Kepler
University, Linz, and Fellow of the National Lincei Academy, Rome; former Scientific Director of the Vienna Institute for International Economics
Studies (WIIW). He received a D.Phil. in Economics from the University of
Oxford and was Research Officer at the Department of Applied Economics,
and Fellow of Jesus College, University of Cambridge. His research interests
have focused on production theory, the dynamics of production systems, the
European economy and European economic integration, international trade
and international political economy. His current research deals with changing patterns of international trade specialization, the structural dynamics of
the European economy, and the political economy of the European Union.

His publications include, apart from many academic papers, Industrial
Restructuring and Trade Reorientation in Eastern Europe, co-edited with I.
Székely (Cambridge, Cambridge University Press, 1995), Production and
Economic Dynamics, co-edited with R. Scazzieri (Cambridge, Cambridge
University Press, 1996; paperback edn. 2009), Unemployment in Europe,
Proceedings of a Conference held by Confederation of European Economic
Associations, Vienna, Austria, co-edited with K. Pichelmann (Basingstoke
and London, Macmillan Press; New York, St. Martin’s Press, 2000), The
Economics of Structural Change, co-edited with M. Landesmann and R.
Scazzieri (Cheltenham, UK, Edward Elgar, 2003), Shaping the New Europe:
Economic Policy Challenges of European Union Enlargement, co-edited with


Notes on Contributors    
xxi

D. K. Rosati, Houndmills, Basingstoke, Hampshire, and New York, Palgrave
Macmillan, 2004), Mathematical Economics and the Dynamics of Capitalism:
Goodwin’s Legacy Continued, co-edited with P. Flaschel (London and New
York, Routledge, 2008).
Jessica Mack is a Ph.D. Candidate in the Department of History at
Princeton University. Her research examines the historical relationships
between higher education, the state, and the public sphere. Her current work traces the intellectual and political history of the National
Autonomous University of Mexico (UNAM) as it was spatially reconfigured
on a new midcentury campus.
Rainer Masera  is Professor of Economic Policy and Dean of the Faculty of
Economics, Guglielmo Marconi University, former Minister for the Budget
and Plan, Italy. He received a D.Phil. in Economics from the University
of Oxford, where he worked under the supervision of John Hicks. He has
been Executive Officer of the Bank of International Settlements, Head of

Research at the Bank of Italy, Director of Istituto Mobiliare Italiano, and
President of the Italian Railways Network. His research interests in monetary and banking theory and policy made him to investigate the temporal
structure of interest rates, European monetary integration, and the relationship between liquidity policy and macroeconomic adjustment. His current
research deals with the macroeconomics of medium-term adjustment and
prudential monetary policies. His publications include The Term Structure of
Interest Rates; An Expectations Model Tested on Post-War Italian data (Oxford,
Clarendon Press, 1972), Households’ Saving and the Real Rate of Interest:
The Italian Experience, 1970–1983, (Bank of Italy, Temi di discussione,
1985, with E. Lecaldano and G. Marotta), An Increasing Role for the ECU:
A Character in Search of a Script (Princeton, N.J., Essays in International
Finance, n. 167, 1987), Bank Capital Standards: A Critical Review (LSE
Financial Markets Group paper series, 215, 2012). He also edited The Great
Financial Crisis: Economics, Regulation and Risk (Roma, Bancaria, 2009), and
co-edited Europe’s Money: Problems of European Monetary Coordination and
Integration (Oxford, Clarendon Press, 1984, with R. Triffin) and Does One
Size fit All?: Basel Rules and SME Financing (Bologna, Il Mulino, 2014, with
R. Guida).
Craig Muldrew is Professor of History, Faculty of History, University of
Cambridge, and Fellow of The Queens’ College, Cambridge. His research
interests in the early modern formation of the capitalist economy made him
to investigate the relationship between credit and trust in a society heavily


xxii    
Notes on Contributors

dependent on debt-credit relationships and the role of obligation and trustworthiness in an expanding commercial society. In a parallel line of inquiry,
he examined the material living standards of agricultural labourers in the
early modern English economy. His current research further develops the
above fields and investigates the transformation of obligation to self-control in early modern British society and the consequences of this process

on the internal structure of communities and the formation of savings. In
this connection, he is also studying the contribution of Classical Political
Economy, and of Adam Smith in particular, to the formation of a cultural set-up emphasizing the individual virtues of self-command and prudence, and thus meeting the needs of expanding financial relationships. His
publications include many research papers and the volumes The Economy
of Obligation: The Culture of Credit and Social Relations in Early Modern
England (Basingstoke, Macmillan, 1998) and Food, Energy and The Creation
of Industriousness: Work and Material Culture in Agrarian England, 1550–
1780 (Cambridge, Cambridge University Press, 2011). He also co-edited,
with Angiolina Arrau and M. R. De Rosa, Debiti e crediti, special issue of
the journal Quaderni Storici 137 (2011).
Adrian Pabst is Reader in Politics in the School of Politics and
International Relations at the University of Kent, Canterbury and Fellow of
the National Institute of Economic and Social Research (NIESR), London.
He received his Ph.D. from the University of Cambridge and subsequently
held a Leverhulme Early Career Fellowship at the University of Nottingham.
His research interests at the interface of political theory and political economy focus on the relationship between social ties, political arrangements
and different kinds of associations. His work has addressed the liberal paradigm of socio-economic relationships and its consequences at the sub-national, national, and international levels. He also investigated the theory
of civil society and its implications for political economy while exploring,
in a parallel development, the political economy of constitutional settlements. His current research deals with the constitutional premises of a political economy founded on ties embedded in civil society rather than only
on the formal commitments of contractual obligations. He is planning to
further this investigation into a critique of the dominant (exchange-based)
model of European integration and into a wider analysis of the prospects
of a Commonwealth of Europe in a world of market-states and state-markets. His publications include many research papers in international journals, including Constitutional Political Economy and International Review of
Economics. He is the author of two monographs, Metaphysics: The Creation of


Notes on Contributors    
xxiii

Hierarchy (Grand Rapids, Michigan, W.B. Eerdmans, 2012) and The Politics

of Virtue: Post-liberalism and the Human Future, co-authored with J. Milbank
(London, Rowman & Littlefield International, 2016). He also edited The
Crisis of Global Capitalism (Eugene, Oregon, Wipf & Stock, 2011) and Blue
Labour: Forging a New Politics (London, I.B. Tauris, 2015).
Fausta Pellizzari  is Professor of Economics at the Catholic University of
Milan. Her research interests in the economic theory of natural resources
and in related issues of economic dynamics made her to investigate both criteria of optimum resource utilization within the rational choice framework
and dynamic constraints and/or opportunities within the structural multi-sectoral framework. Her current research deals with sustainability, distribution and welfare, and with the measurement of economic development in
view of environmental objectives and constraints. Her publications include
research papers and the volumes La teoria economica delle risorse naturali
(Milan, Angeli, 1985), Introduzione all’analisi di sistemi economici multisettoriali (Milan, Vita e pensiero, 1987), and Rent, Resources, Technologies, co-authored with A. Quadrio Curzio (Berlin, Springer, 1999).
Alberto Quadrio-Curzio is President of the National Lincei Academy,
Rome and Emeritus Professor of Political Economy, Catholic University of
Milan where he was Dean of the Faculty of Political Sciences. He is Member
of the Academia Europaea and of the Board of the International Balzan Prize
Foundation and coordinated the G7 Academies 2017 meeting at the Lincei
Academy. His research interests in the theory of production and economic
dynamics, the long-term structural changes of economic systems, and the
antagonism-coexistence between producibility and scarcity made him to
explore the role of material and immaterial resources in income distribution
and the medium- and long-term evolution of multi-sectoral economic systems subject to the constraints and opportunities of resource utilization. His
current research deals with the institutional framework of structural change,
the financial and infrastructural conditions for economic growth, and the
political economy of resource utilization. His publications include many
research papers and the volumes Rendita e distribuzione in un modello economico plurisettoriale (Milan, Giuffré, 1967), Rent, Resources, Technologies,
co-authored with F. Pellizzari (Berlin-Heidelberg, Springer-Verlag, 1999),
Sovereign Wealth Funds. A Complete Guide to State-owned Investment Funds,
co-authored with V. Miceli (Petersfield, UK, Harriman House, 2010), He
edited The Gold Problem: Economic Perspectives, Proceedings of the World
Conference on Gold, held in Rome, 1982 (Oxford, Oxford University Press,

1982), and co-edited Protagonisti del pensiero economico, vols. 1–4 (Bologna,


xxiv    
Notes on Contributors

Il Mulino, 1977–1982, with R. Scazzieri), The Agro-Technological System
towards 2000: A European Perspective (Amsterdam, North-Holland, 1988;
with G. Antonelli), and Innovation, Resources and Economic Growth (Berlin,
Springer Verlag, 1994, with M. Fortis and R. Zoboli).
Sophus A. Reinert is Associate Professor of Business Administration,
Harvard Business School. He has been Research Fellow and Affiliated
Lecturer in history, Gonville and Caius College, Cambridge. He is a Junior
Fellow of the American Academy of Political and Social Sciences and has
been a Carl Schurz Fellow at the University of Erfurt, Germany and a
Fellow of the Einaudi Foundation in Turin, Italy, His research interests
in the twin historical dynamics of the capitalist economy and of political economy made him to explore the relationship between globalization
and national competitiveness in the early modern development of economic thought. He published several research papers, including ‘Lessons
on the Rise and Fall of Great Powers: Conquest, Commerce, and Decline
in Enlightenment Italy’, American Historical Review (2010) and the volume Translating Empire: Emulation and the Origins of Political Economy
(Cambridge, Mass. and London, Harvard University Press, 2011). He also
edited Antonio Serra, A Short Treatise on the Wealth and Poverty of Nations
(1613) (London and New York, Anthem Press, 2011), and co-edited,
with P. Røge, The Political Economy of Empire in the Early Modern World
(Houndmills, Basingstoke, Palgrave Macmillan, 2013), with R. Patalano,
Antonio Serra and the Economics of Good Government (New York, Palgrave
Macmillan, 2016), and with R. Fredona, New Perspectives on the History of
Political Economy (New York, NY: Palgrave Macmillan, forthcoming).
Roberto Scazzieri  is Professor of Economic Analysis, University of Bologna
and Fellow of the National Lincei Academy, Rome. He is Life Member of

Clare Hall, Cambridge and Senior Member of Gonville and Caius College,
Cambridge. He was the founding Scientific Director of the Institute of
Advanced Study of the University of Bologna. His research dealt with the
micro-structural features of the production process and led him to outline a task-process theory of production. He subsequently explored the
relationship between multi-sectoral approaches to structural dynamics
and the dynamics of production structures. In a parallel line of investigation, he examined the historical evolution of economic theory in term of
shifts between objectivism and subjectivism and the structuring of economic actions under fundamental uncertainty. His current research examines political economy as a sphere of multiple interfaces between objective


Notes on Contributors    
xxv

structures and political arrangements. His publications include Efficienza
produttiva e livelli di attività (Bologna, Il Mulino, 1981), Sui momenti costitutivi dell’economia politica, co-authored with A. Quadrio-Curzio (Bologna,
Il Mulino, 1985), A Theory of Production. Tasks, Processes and Technical
Practices (Oxford, Clarendon Press, 1993). He co-edited, with M. Baranzini,
Foundations of Economics. Structures of Inquiry and Economic Theory (Oxford
and New York, Basil Blackwell, 1986), and The Economic Theory of Structure
and Change (Cambridge, Cambridge University Press, 1990), with M.
Landesmann, Production and Economic Dynamics (Cambridge, Cambridge
University Press, 1996), with H. Hagemann and M. Landesmann, The
Economics of Structural Change (Cheltenham, UK, Edward Elgar, 2003),
with A. Sen and S. Zamagni, Markets, Money and Capital. Hicksian
Economics for the Twenty-First Century (Cambridge, Cambridge University
Press, 2008), with H. Hagemann, Capital, Time and Transitional Dynamics
(Abingdon, Oxfordshire, Routledge 2009), with S. Marzetti Dall’Aste
Brandolini, Fundamental Uncertainty. Rationality and Plausible Reasoning
(Basingstoke, Palgrave Macmillan, 2011), with M. Baranzini and C.
Rotondi, Resources, Production and Structural Dynamics (Cambridge,
Cambridge University Press, 2015), with I. Cardinale and D. Coffman, The

Political Economy of the Eurozone (Cambridge, Cambridge University Press,
2017).
Ajit Sinha  is Professor of Economics, Azim Premji University, Bangalore.
He received a Ph.D. from the State University of New York (Buffalo), where
he worked with Paul Zarembka on Marx’s transformation of labour values
into production prices in the light of Piero Sraffa’s theory of prices. His subsequent research led him to investigate the analytical foundations of classical
economic theory, and specifically the role of exchange values. In particular,
he examined the relationship between the classical theories of value and
growth and called attention to the specific features that the classical theory
of value takes as a means to compare heterogeneous bundles of commodities over time. He taught at SUNY-Buffalo, United States, York University,
Canada, The University of Newcastle, Australia, LBS National Academy
of Administration, India, Gokhale Institute of Economics and Politics,
Maharashtra, India (of which he was also Director), Collège de France,
and Indira Gandhi Institute of Development Research, Mumbai. He has
been a visiting fellow at the Delhi School of Economics and at Jawarharlal
Nehru University, Delhi, and a Visiting Professor at the University of Paris 1
(Sorbonne). He published Theories of Value from Adam Smith to Piero Sraffa,


xxvi    
Notes on Contributors

Delhi, Routledge, 2010, and A Revolution in Economic Theory: The Economics
of Piero Sraffa, Basel, Springer, 2016.
Viktor J. Vanberg is Professor Emeritus, Albert-Ludwigs-University,
Freiburg im Breisgau; Senior Research Fellow and Former Director, Walter
Eucken Institute, Freiburg im Breisgau. Former Professor of Economics,
George Mason University, and Editorial Director, Center for Study of
Public Choice, George Mason University, 1988–1995. His research interest
in rules and institutions made him to explore the potential of an individualistic approach to social phenomena also drawing on the work of F. A.

Hayek. He then directed his attention to the field of constitutional political
economy. In this field, he collaborated with James Buchanan and explored
constitutional choice and its implications for economic policy. His current
research focuses on competition between constitutions on the national and
international level and on the paradigm of rule- based behaviour as an alternative to the rational choice approach in economics. He published, apart
from many research papers, the books Die zwei Soziologien. Individualismus
und Kollektivismus in der Sozialtheorie [The Two Sociologies—Individualism
and Collectivism in Social Theory] (Tübingen, J. B. C. Mohr (Paul
Siebeck), 1975), Markt und Organisation—Individualistische Sozialtheorie
und das Problem Korporativen Handelns [Market and Organization—
Individualist Social Theory and the Problem of Corporate Action]
(Tübingen, J. B. C. Mohr (Paul Siebeck) 1982), Rules and Choice in
Economics (London, Routledge, 1994), The Constitution of Markets: Essays
in Political Economy (London, Routledge 2001), edited Freiheit, Wettbewerb
und Wirtschaftsordnung. Hommage zum 100. Geburtstag von Friedrich A.
von Hayek (Freiburg i. Br, Haufe Verlag, 1999) and co-edited Renewing
the Search for a Monetary Constitution: Reforming Government’s Role in the
Monetary System (Washington, Cato Institute, 2015).


List of Figures

Chapter 7
Fig. 1 Optimality frontier and distributional trade-offs 209

Chapter 8
Fig. 1 Man and nature 237

Chapter 11
Fig. 1 The last-minute surge of dark money for Trump

in 2016 far exceeded that for Romney in 2012
(Source Computed by Authors from FEC and IRS data) 359
Fig. 2 The simultaneous late October fall of Democratic Senate
hopes with Clinton decline (Iowa electronic market prices
for Clinton presidency and for Republican House plus
Democratic Senate) (Source Iowa market data,
361
Fig. 3 Money and votes in 2016 congressional elections
(Regression, spatial latent instrumental variable model)
(Source Data from FEC and IRS, Authors calculations) 415
Fig. 4 Total money flow into Trump campaign; Romney 2012
used for comparison (Source Computed by Authors
from FEC and IRS data) 416

Chapter 14
Fig. 1 The financial systems—national and global: main
components (financial systems as complex, integrated
networks) (Source Masera 2016a) 497
Fig. 2 Complex systems: example of regime shift
(Source Helbing 2010) 498
xxvii


xxviii    
List of Figures

Fig. 3
Fig. 4

Power laws and heavy-tail distributions (Source Helbing 2010)

A complex system (network) representation
of macro-prudential and other economic policies
in the Euro area (Source Masera 2015a)
Fig. 5 EU Banking Union: a holistic network approach
(Source Masera 2014)
Fig. 6 Total factor productivity (Source Praet 2015)
Fig. 7 Real domestic demand (Source Praet 2015)
Fig. 8 Bank loans to private sector (Source Praet 2015)
Fig. 9 Monetary base and broad money (Source Constâncio 2015)
Fig. 10 Ratios of broad money and credit to the monetary base
(Source Constâncio 2015)
Fig. 11 Real GDP and CPI inflation (Source Constâncio 2015)
Fig. 12 The five Presidents’ four interdependent unions to transform
the Euro area into a ‘Genuine Economic and Monetary
Union’* (Source Masera 2015b) (*“All four Unions depend
on each other. Therefore they must develop in parallel
and all euro area Member States must participate in all Unions
for the euro area to gradually evolve towards a genuine
Economic and Monetary Union… After many years
of crisis, governments and institutions must demonstrate
to citizens and markets that euro area will do more than
just survive ” (Juncker et al. 2015, p. 5))

498
501
503
507
507
508
508

509
509

511

Chapter 16
Fig. 1 The interweaving of political and economic spheres
launches an endless dynamic process 557
Fig. 2 The primacy of the national compromise between capital
and labor 1950–1970 562
Fig. 3 International competition becomes the leading
institutional form 1971–1994 563
Fig. 4 The domination of international finance: still
another hierarchy 1995–2016 565
Fig. 5 Coherence principles of socioeconomic regimes 567
Fig. 6 Links between organizational complementarity,
organizational/institutional isomorphism,
and institutional complementarity 571
Fig. 7 Chinese capitalism: a series of local state corporatism 577
Fig. 8 Chinese growth regime: a competition-led growth 578
Fig. 9 An interdependent world, complementarity development
modes, and growth regimes 585
Fig. 10 How endo-metabolism and hybridization generate various
brands of capitalism 587