Microeconomic Theory: A Heterodox Approach (2017)

Microeconomic Theory: A Heterodox Approach, by Frederic S. Lee, edited by Tae-Hee Jo. Forthcoming in December 2017, published by Routledge. [publisher website]

Synopsis

This book develops a heterodox economic theory that explains the social provisioning process at the micro level. In particular, the economy is conceived as a disaggregated interdependent whole. Consequently, to theorize about the social provisioning process in terms of a disaggregated, interdependent economy, it is necessary to delineate and explain its constituent parts and their reproduction and recurrence, their integration qua interdependency by non-market and market arrangements and institutions, and how the system works as a whole, which implies examining how changes in one part of the economy produces changes in other parts as well as the economy as a whole.

The domain of heterodox microeconomics is the delineation and explaining the constituent parts of the economy and their interdependencies. The constituent parts include the business enterprise and other private business organizations such as cartels, the family, and state-public organizations, while the interdependencies include technological-production relationships between enterprises, private investment-government expenditures and profit-employment, wages-capitalist income and workers-capitalist consumption patterns, state expenditures and taxes-financial assets. Heterodox microeconomic theory thus involves working with the parts and interdependencies to develop theoretical explanations that contribute to understanding the social provisioning process. Because of the significance of the price mechanism to mainstream economics, a theoretical concern of the book is the business enterprise, markets, demand, and pricing. Also, since heterodox economists see private investment, consumption and government expenditures as the principal directors and drivers of economic activity, a second theoretical concern is business decision-making processes regarding investment and production, government expenditure decisions, the financing of investment, the profit mark-up and the wage rate, and taxes. Finally, the third theoretical concern of the book is the delineation of a non-equilibrium disaggregated price-output model of a monetary economy. The integration of the theories of the business enterprise, markets, demand, investment, finance, and the state with a theoretical model of the economy forms a nexus of theory that can be identified as heterodox microeconomics.

Contents

Chapter 1 The making of heterodox microeconomics
Chapter 2 Structure, agency, and modeling the economy
Chapter 3 The business enterprise: structures
Chapter 4 The business enterprise: agency and causal mechanisms
Chapter 5 Markets and demand for the social product
Chapter 6 Competition, the market price, and market governance
Chapter 7 Microeconomics and the social provisioning process
Chapter 8 The role of microeconomics in heterodox economics: a view of a heterodox micro theorist

[click here for a detailed table of contents of the book]