Posts filed under ‘People’

Gary Becker: A Personal Appreciation

[The following is from former guest blogger Peter Lewin, who wrote his PhD under Gary Becker at Chicago.]

| Peter Lewin |

Professor Gary Becker died yesterday at the age of 83. At the time of his death, he was arguably the most highly respected living economics scholar.

The blogosphere will soon be flooded with obituaries, appreciations, and evaluations of his work by people better placed than I to offer them. Given, however, that I was privileged to have been able to study with him for a short period of time as a graduate student at the University of Chicago, and that he acted as the chairman of my Ph.D. dissertation committee, I would like on the occasion of his passing to offer a few words of personal appreciation.

Becker will be remembered mostly for his work on human capital and the economics of the family. It is hard to overstate the influence of his contributions to these fields. Indeed, he pretty much created them — though one must not minimize the contributions of others early scholars like Simon Polacheck, and especially the independent and complementary work of Jacob Mincer.

By his own account, Becker came to these subjects through the influence of his mentor Milton Friedman whose approach led him to see economics as the study of people “in the ordinary business of life” (as Alfred Marshall would have it). But his first foray beyond the traditional borders of the subject was not in those subjects (human capital or the economics of the family) but rather in the economics of discrimination, a very volatile subject at the time. He literally wrote the book on The Economics of Discrimination (see also here). It seemed to him at the time that the conversation on civil rights and segregation was hopelessly confused by the lack of an understand of the social processes at work, an understanding that was accessible using the eternal principles of economics to investigate how people act on their preferences, whatever they are and whatever we may think of them. So he quite controversially investigated the likely results of economic processes in which people had given (race or gender) preferences and showed quite simply that, as long as people were free to act in open markets as employers, workers, or consumers, the act of discrimination would carry a price. For example, discriminator-employers who indulged their preferences who be outcompeted by those who hired the most qualified person for the job, and, in this way, open competition would tend to erode discriminatory outcomes (if not discriminatory attitudes). (more…)

4 May 2014 at 4:48 pm 10 comments

Gary S. Becker, 1930-2014

| Peter Klein |

Gary Becker died yesterday at the age of 83. Becker was a living legend of the Chicago school, and an active scholar, even chairing a current dissertation committee. Hayek called Becker “one of the most gifted men of the Chicago school” and “theoretically a more sophisticated thinker” than Milton Friedman or George Stigler.

Here are past O&M references to Becker, including Becker’s comments on organization theory in light of Williamson’s Nobel Prize. And here’s a short paper by me on T.W. Schultz’s human-capital approach to entrepreneurship, about which Becker showed little interest, despite his development of Schultz’s human-capital construct. Brian Loasby has a nice chapter on “Human Capital, Entrepreneurship, and the Theory of the Firm” in the Oxford Handbook of Human Capital, edited by Alan Burton‐Jones and our friend J.‐C. Spender (Becker’s foreword is online).

I attended the 1992 meeting of the Mont Pèlerin Society, when Becker was president. Someone arranged for Becker to meet with me and the other graduate students. The sense among the student attendees was that MPS was becoming, under Becker’s leadership, too mainstream, respectable, and tame. Where were the radical libertarians, Austrians, and other free thinkers? As I recall, poor Becker was bombarded with a bunch of questions along these lines, which he handled kindly and gracefully. He had nothing but good things to say about Mises, Hayek, Hazlitt, and the other MPS founders. A fine gentleman.

A friend of mine was at Chicago in the 1990s when Becker was in his mid-60s and already a Nobel Laureate. Like most economists in the department, my friend went to the office and worked Saturdays and Sundays. Becker was usually the first to arrive and the last to leave. “He’s not only the smartest person here,” I was told, “but the hardest worker!”

4 May 2014 at 2:19 pm 3 comments

New ISNIE Awards

| Peter Klein |

images (4)The International Society for New Institutional Economics has established four new awards, named after the pioneers of new institutional social science: the Ronald Coase Best Dissertation Award, Oliver Williamson Best Conference Paper Award, Douglass North Best Paper or Book Award, and Elinor Ostrom Lifetime Achievement Award. Details on the awards, and a call for nominations for the Coase, North, and Ostrom awards, are on the ISNIE site. (Sadly, my suggestion for a Best Organizational and Institutional Economics Blog Award was not heeded.)

8 April 2014 at 8:55 am Leave a comment

CFP: Coase Memorial Issue of Man and the Economy

| Peter Klein |

An important announcement from Ning Wang, editor of Man and the Economy:

Man and the Economy
Call for Papers for a Special Issue in Memory of Ronald Coase

“R. H. Coase: The Man and His Ideas”

Man and the Economy will devote a special issue (December 2014) to the life and ideas of Ronald Coase, the 1991 Nobel Laureate in Economics and Founding Editor of this journal. During his long academic life, Coase devoted himself to economics, which, in his view, should investigate how the real world economy works, with all its imperfections. Coase viewed and practiced economics as a social science, a study of man creating wealth in society through various institutional arrangements. To honor the memory of Coase, we welcome original research articles that extend and develop the Coasian economics, including empirical studies of the structure of production and exchange. We also welcome critical and constructive commentaries that clarify and elaborate the Coasian themes, from a law-and-economics/new institutional economics perspective, which include, but not limited to, topics on transaction costs, property rights, theories of the firm and China’s economic transformation. In addition, we also welcome personal reflections and reminiscences of Coase as a colleague, a teacher, an editor, and/or a friend.

Submissions must be made online via the Journal’s website: http://www.degruyter.com/view/j/me

Deadline for submissions is September 30, 2014.

12 February 2014 at 8:51 am Leave a comment

Top Posts of 2013

| Peter Klein |

It’s been another fine year at O&M. 2013 witnessed 129 new posts, 197,531 page views, and 114,921 unique visitors. Here are the most popular posts published in 2013. Read them again for entertainment and enlightenment!

  1. Rise of the Three-Essays Dissertation
  2. Ronald Coase (1910-2013)
  3. Sequestration and the Death of Mainstream Journalism
  4. Post AoM: Are Management Types Too Spoiled?
  5. Nobel Miscellany
  6. The Myth of the Flattening Hierarchy
  7. Climate Science and the Scientific Method
  8. Bulletin: Brian Arthur Has Just Invented Austrian Economics
  9. Solution to the Economic Crisis? More Keynes and Marx
  10. Armen Alchian (1914-2013)
  11. My Response to Shane (2012)
  12. Your Favorite Books, in One Sentence
  13. Does Boeing Have an Outsourcing Problem?
  14. Doug Allen on Alchian
  15. New Paper on Austrian Capital Theory
  16. Hard and Soft Obscurantism
  17. Mokyr on Cultural Entrepreneurship
  18. Microfoundations Conference in Copenhagen, June 13-15, 2014
  19. On Academic Writing
  20. Steven Klepper
  21. Entrepreneurship and Knowledge
  22. Easy Money and Asset Bubbles
  23. Blind Review Blindly Reviewing Itself
  24. Reflections on the Explanation of Heterogeneous Firm Capability
  25. Do Markets “React” to Economic News?

Thanks to all of you for your patronage, commentary, and support!

31 December 2013 at 7:55 am 1 comment

Pirrong Responds

| Peter Klein |

Here’s Craig’s initial (and hopefully not final!) response to David Kocieniewski’s “farrago of dishonesty, insinuations, innuendo, and ad hominem.” As expected, Craig pulls no punches. Kocieniewski’s failure to point out that most of Craig’s professional work argues against the interests of his alleged paymasters “betrays his utter unprofessionalism and bias, and is particularly emblematic of the shockingly shoddy excuse for journalism that his piece represents.” The insinuation that Craig’s paid work deals with speculation, when none of it does, is “misleading, deceptive, and plainly libelous.” The Times piece is riddled with factual and chronological errors, deliberately inserted to score political points: “dishonest to its very core because of its egregiously biased omission of some essential material facts and deceptive presentation of others.” I can’t say I’m surprised; this is mainstream journalism, after all.

Craig also provides this roundup of posts defending him and Scott Irwin, including ours.

30 December 2013 at 11:30 pm Leave a comment

Kirzner and Entrepreneurship Research

| Peter Klein |

downloadPer Bylund and I have written a paper on Israel Kirzner’s influence on the entrepreneurship literature. It’s titled “The Place of Austrian Economics in Contemporary Entrepreneurship Research” but deals mainly with Kirzner. Comments are appreciated.

The paper was written for a forthcoming special issue of the Review of Austrian Economics on Kirzner’s contributions. We take a nuanced position: While Kirzner’s work underlies the dominant opportunity-discovery perspective in the entrepreneurship research literature, this perspective is increasingly challenged among entrepreneurship scholars, for some of the same reasons that Kirzner’s theoretical framework has been criticized by his fellow Austrian economists. Nonetheless, it is impossible to make progress in entrepreneurship studies, or the Austrian analysis of the market, without engaging Kirzner’s ideas.

9 December 2013 at 9:33 am 1 comment

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Nicolai J. Foss and Peter G. Klein, Organizing Entrepreneurial Judgment: A New Approach to the Firm (Cambridge University Press, 2012).
Peter G. Klein and Micheal E. Sykuta, eds., The Elgar Companion to Transaction Cost Economics (Edward Elgar, 2010).
Peter G. Klein, The Capitalist and the Entrepreneur: Essays on Organizations and Markets (Mises Institute, 2010).
Richard N. Langlois, The Dynamics of Industrial Capitalism: Schumpeter, Chandler, and the New Economy (Routledge, 2007).
Nicolai J. Foss, Strategy, Economic Organization, and the Knowledge Economy: The Coordination of Firms and Resources (Oxford University Press, 2005).
Raghu Garud, Arun Kumaraswamy, and Richard N. Langlois, eds., Managing in the Modular Age: Architectures, Networks and Organizations (Blackwell, 2003).
Nicolai J. Foss and Peter G. Klein, eds., Entrepreneurship and the Firm: Austrian Perspectives on Economic Organization (Elgar, 2002).
Nicolai J. Foss and Volker Mahnke, eds., Competence, Governance, and Entrepreneurship: Advances in Economic Strategy Research (Oxford, 2000).
Nicolai J. Foss and Paul L. Robertson, eds., Resources, Technology, and Strategy: Explorations in the Resource-based Perspective (Routledge, 2000).

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