Theory and Method of Evolutionary Political Economy A Cyprus Symposium

The world is in turmoil, the dynamics of political economy seem to have entered a phase where a ‘return to normal’ cannot be expected. Since the financial crisis, conventional economic theory has proven itself to be rather helpless and political decision makers have become suspicious about this type of economic consultancy. This book offers a different approach. It promises to describe political and economic dynamics as interwoven as they are in real life and it adds to that an evolutionary perspective. The latter allows for a long-run view, which makes it possible to discuss the emergence and exit of social institutions.The essays in this volume explore the theoretical and methodological aspects of evolutionary political economy. In part one, the authors consider the foundational contributions of some of the great economists of the past, while the second part demonstrates the benefits of adopting the methods of computer simulation and agent-based modelling. Together, the contributions to this volume demonstrate the richness, diversity and great explanatory potential of evolutionary political economy.This volume is extremely useful for social scientists in the fields of economics, politics, and sociology who are interested to learn what evolutionary political economy is, how it proceeds and what it can provide.

Introduction Part I Evolutionary Political Economy – Theory 1 Creative economy as a resource for specific local developments Ismail Erturk and Pascal Petit 2 Creative industries between ‘living labs’ and ‘robinsonnade’ Philippe Bouquillion and Pierre Mœglin 3 Population thinking vs. essentialism in biology and evolutionary economics George Liagouras 4 The Relevance of Karl Polanyi Ernst Hollander and Maria Fregidou-Malama 5 Marx through Goodwin Carlo D’Ippoliti and Marco Ranaldi 6 The Role of Unions as Working Class Representation Gloria Kutscher and Edeltraud Hanappi-Egger 7 The Emergence of Evolutionary-Institutional Thought in Russia John Hall and Svetlana Kirdina 8 Market Performance – Liquidity or Knowledge? Evidence from the Market for Corporate Control Killian McCarthy and Wilfred Dolfsma Part II Methods of Evolutionary Political Economy 9 Macroeconomic Policy in DSGE: Methodological Pitfalls, Patches or New Clothes? Andrea Roventini and Giorgio Fagiolo 10 Macroeconomic Policy in Agent-Based Models: New Developments and Challenges Ahead 282Giorgio Fagiolo and Andrea Roventini 11 Credit-driven business cycles in an agent-based macro model Marco Raberto, Reynold Christian Nathanael, Bulent Ozel, Andrea Teglio and Silvano Cincotti 12 Fiscal policy and redistribution in an evolutionary macroeconomic model of an artificial monetary union Bernhard Rengs and Manuel Scholz-Wäckerle 13 Agent-based simulations as an early warning system for natural disasters Asjad Naqvi and Miriam Rehm 14 Dealing adequately with the political element in formal modelling Claudius Gräbner

Hardy Hanappi is ad personam chair for Political Economy of European Integration at the European Commission and professorial research associate at SOAS, University of London. He also is president of the Vienna Institute for Political Economy Research (VIPER), Austria.Savvas Katsikides is University Professor and Jean Monnet Chair at the University of Cyprus. Manuel Scholz-Wäckerle is Senior Lecturer at the Department of Socioeconomics, Vienna University of Economics and Business, Austria.