The Palgrave Handbook of Comparative Economics

This book aims to define comparative economics and illustrate its contribution, arguing for a continued legacy of comparative economic systems and exploring new issues and methodologies.

Format: Paperback / softback
Length: 967 pages
Publication date: 14 February 2022
Publisher: Springer Nature Switzerland AG

This book aims to define comparative economics and to illustrate the breadth and depth of its contribution. It starts with an historiography of the field, arguing for a continued legacy of comparative economic systems, which compared socialism and capitalism, a field which some argued should have been replaced by institutional economics after the fall of the Berlin Wall. The process of transition to market capitalism is reviewed, and itself exemplifies a new combination of comparative analysis with a focus on institutional development. Going beyond, chapters broadening the application of comparative analysis and applying it to new issues and approaches, including the role and definition of institutions, subjective wellbeing, inequality, populism, demography, and novel methodologies. Overall, comparative economics has evolved in the past 30 years, and remains a powerful approach for analyzing important issues.

Introduction:
Comparative economics is a field that has evolved significantly over the past 30 years. Initially, it was primarily concerned with comparing economic systems, such as socialism and capitalism, and analyzing their strengths and weaknesses. However, as the world has changed, so has comparative economics. In this book, we will explore the evolution of comparative economics and its contribution to understanding important issues such as institutions, wellbeing, inequality, populism, demography, and novel methodologies.

Historiography of Comparative Economics:
The field of comparative economics has a rich history. It began in the late 19th century with the work of economists such as Alfred Marshall and John Maynard Keynes, who sought to understand the differences between economic systems and their impact on society. These early comparative studies helped to establish the field as a legitimate academic discipline.

However, the field faced challenges in the mid-20th century. Some economists argued that comparative economic systems should be replaced by institutional economics, which focused on the role of institutions in shaping economic outcomes. This argument was particularly strong after the fall of the Berlin Wall, which marked the end of the Cold War and the collapse of socialist economies.

Despite these challenges, comparative economics has continued to evolve and thrive. In recent years, there has been a renewed interest in the field, driven by the need to understand the complex economic challenges facing the world. Comparative economics has become increasingly relevant in analyzing issues such as the role of institutions in promoting economic growth, the impact of inequality on social welfare, the causes and consequences of populism, and the effects of demographic changes on economic development.

Transition to Market Capitalism:
One of the most significant developments in comparative economics in the past 30 years has been the transition to market capitalism. This process has been driven by a combination of economic factors. First, the collapse of the Soviet Union in 1991 marked the end of socialist economies and the beginning of a period of economic liberalization. This led to the adoption of market-oriented policies in many countries, including the United States, Europe, and Asia.

Second, the rise of globalization has facilitated the exchange of goods, services, and capital across borders. This has led to increased competition and innovation, which has benefited consumers and businesses alike. However, it has also contributed to income inequality and social unrest, as some countries have benefited more than others from the global economy.

The process of transition to market capitalism has been complex and multifaceted. It has involved a combination of economic reforms, political changes, and social movements. For example, in many countries, governments have privatized state-owned enterprises and reduced government intervention in the economy. This has led to increased competition and innovation, but it has also contributed to income inequality and social unrest.

At the same time, social movements have emerged to challenge the dominant economic system. These movements have focused on issues such as income inequality, social welfare, and environmental sustainability. They have advocated for policies that promote greater social equality and protect the environment.

Overall, the transition to market capitalism has been a significant development in comparative economics. It has helped to establish the field as a powerful approach for analyzing important issues such as the role of institutions in promoting economic growth, the impact of inequality on social welfare, the causes and consequences of populism, and the effects of demographic changes on economic development.

Broadening the Application of Comparative Analysis:
In addition to analyzing the transition to market capitalism, comparative economics has broadened its application to new issues and approaches. One of the most significant developments in this area has been the increasing use of quantitative methods in comparative analysis. These methods allow economists to analyze large datasets and draw meaningful conclusions about economic relationships.

For example, economists have used quantitative methods to analyze the impact of trade on income inequality. They have found that trade can have both positive and negative effects on income inequality, depending on the type of trade and the country involved. For example, trade with developed countries can lead to increased income inequality, as it can lead to the displacement of workers in developing countries. However, trade with developing countries can also lead to increased income inequality, as it can lead to the development of new industries and jobs.

Another important development in comparative analysis has been the increasing use of interdisciplinary approaches. These approaches bring together economists from different fields, such as sociology, political science, and psychology, to analyze economic issues. For example, economists have used interdisciplinary approaches to analyze the impact of globalization on income inequality. They have found that globalization can have both positive and negative effects on income inequality, depending on the type of globalization and the country involved.

In addition to quantitative methods and interdisciplinary approaches, comparative economics has also broadened its application to new issues and approaches. For example, comparative economics has been used to analyze the role of institutions in promoting economic growth. Economists have found that institutions such as property rights, labor markets, and financial systems can have a significant impact on economic growth. They have also found that different institutions can have different effects on economic growth in different countries.

Another important development in comparative analysis has been the increasing use of novel methodologies. These methodologies allow economists to analyze economic issues in new and innovative ways. For example, economists have used agent-based models to analyze the impact of institutions on economic growth. They have found that institutions such as property rights and labor markets can have a significant impact on economic growth, but that these effects can vary depending on the specific context.

Overall, comparative economics has broadened its application to new issues and approaches in the past 30 years. This has helped to establish the field as a powerful approach for analyzing important issues such as the role of institutions in promoting economic growth, the impact of inequality on social welfare, the causes and consequences of populism, and the effects of demographic changes on economic development.

Conclusion:
In conclusion, comparative economics has evolved significantly in the past 30 years. It has become a powerful approach for analyzing important issues such as the transition to market capitalism, the role of institutions in promoting economic growth, the impact of inequality on social welfare, the causes and consequences of populism, and the effects of demographic changes on economic development. Comparative economics has also broadened its application to new issues and approaches, such as the use of quantitative methods, interdisciplinary approaches, and novel methodologies. As the world continues to change, comparative economics will continue to play an important role in understanding the complex economic challenges facing the world.

Weight: 1525g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030508906
Edition number: 1st ed. 2021