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Economic history is the academic study of economies or economic events of the past. Research is conducted using a combination of historical methods, statistical methods and the application of economic theory to historical situations and institutions. The field can encompass a wide variety of topics, including equality, finance, technology, labor, and business. It emphasizes historicizing the economy itself, analyzing it as a dynamic force and attempting to provide insights into the way it is structured and conceived. Often economic history overlaps with global history in its emphasis on cross-border flows and international trends in the international economy.
Using both quantitative data and qualitative sources, economic historians emphasize understanding the historical context in which major economic events take place. They often focus on the institutional dynamics of systems of production, labor, and capital, as well as the economy's impact on society, culture, and language. Scholars of the discipline also study the various schools of economic thought such as mainstream economics, Marxian economics, the Chicago school of economics, and Keynesian economics.
Sub-disciplines of the field include financial and business history, which overlaps with areas of social history such as demographic and labor history. The quantitative branch—in this case, econometric—study of economic history is also known as cliometrics.Historians have recently become more interested in another branch of economic history, often called the history of capitalism.
In late-nineteenth-century Germany, scholars at a number of universities, led by Gustav von Schmoller, developed the historical school of economic history. It argued that there were no universal truths in history, emphasizing the importance of historical context without quantitative analysis. This historical approach dominated German and French scholarship for most of the 20th century. The historical school of economics included other economists such as Max Weber and Joseph Schumpeter who reasoned that careful analysis of human actions, cultural norms, historical context, and mathematical support was key to historical analysis. The approach was spread to Great Britain by William Ashley (University of Oxford) and dominated British economic history for much of the 20th century. Britain's first professor in the subject was George Unwin at the University of Manchester.In France, economic history was heavily influenced by the Annales School from the early 20th century to the present. It exerts a worldwide influence through its Journal Annales. Histoire, Sciences Sociales.
Treating economic history as a discrete academic discipline has been a contentious issue for many years. Academics at the London School of Economics and the University of Cambridge had numerous disputes over the separation of economics and economic history in the interwar era. Cambridge economists believed that pure economics involved a component of economic history and that the two were inseparably entangled. Those at the LSE believed that economic history warranted its own courses, research agenda and academic chair separated from mainstream economics.
In the initial period of the subject's development, the LSE position of separating economic history from economics won out. Many universities in the UK developed independent programmes in economic history rooted in the LSE model. Indeed, the Economic History Society had its inauguration at LSE in 1926 and the University of Cambridge eventually established its own economic history programme. However, the past twenty years have witnessed the widespread closure of these separate programmes in the UK and the integration of the discipline into either history or economics departments. Only the LSE and the University of Edinburgh retain a separate economic history department and stand-alone undergraduate and graduate programme in economic history. Cambridge, Glasgow, the LSE and Oxford together train the vast majority of economic historians coming through the British higher education system today.
Yale University economist Irving Fisher wrote in 1933 on the relationship between economics and economic history in his "Debt-Deflation Theory of Great Depressions" (Econometrica, Vol. 1, No. 4: 337–38):
The study of dis-equilibrium may proceed in either of two ways. We may take as our unit for study an actual historical case of great dis-equilibrium, such as, say, the panic of 1873; or we may take as our unit for study any constituent tendency, such as, say, deflation, and discover its general laws, relations to, and combinations with, other tendencies. The former study revolves around events, or facts; the latter, around tendencies. The former is primarily economic history; the latter is primarily economic science. Both sorts of studies are proper and important. Each helps the other. The panic of 1873 can only be understood in light of the various tendencies involved—deflation and other; and deflation can only be understood in the light of various historical manifestations—1873 and other.
There is a school of thought among economic historians that splits economic history—the study of how economic phenomena evolved in the past—from historical economics—testing the generality of economic theory using historical episodes. US economic historian Charles P. Kindleberger explained this position in his 1990 book Historical Economics: Art or Science?.Further, economic historian Robert Skidelsky (University of Cambridge) argued that economic theory often employs ahistorical models and methodologies that do not take into account historical context.
The new economic history of the 1960s, also known as cliometrics, refers to the systematic use of economic theory and/or econometric techniques to the study of economic history. The term cliometrics was originally coined by Jonathan R. T. Hughes and Stanley Reiter in 1960 and refers to Clio, who was the muse of history and heroic poetry in Greek mythology. One of the most famous cliometric economic historians is Douglass North, who argued that it is the task of economic history to elucidate the historical dimensions of economies through time.Cliometricians argue their approach is necessary because the application of theory is crucial in writing solid economic history, while historians generally oppose this view warning against the risk of generating anachronisms. Early cliometrics was a type of counterfactual history. However, counterfactualism is no longer its distinctive feature. It combines neoclassical economics with quantitative methods in order to explain human choices based on constraints. Some have argued that cliometrics had its heyday in the 1960s and 1970s and that it is now neglected by economists and historians. In response to North and Robert Fogel's Nobel Memorial Prize in Economics in 1993, Harvard University economist Claudia Goldin argued proclaimed that:
economic history is not a handmaiden of economics but a distinct field of scholarship. Economic history was a scholarly discipline long before it became cliometrics. Its practitioners were economists and historians studying the histories of economies... The new economic history, or cliometrics, formalized economic history in a manner similar to the injection of mathematical models and statistics into the rest of economics.
A major sub-field of economic history is the history of economic growth and development. MIT economist Peter Temin noted that this field is intricately connected with economic history, as it explores the growth of economies with different technologies, innovations, and institutions.Studying economic growth has been popular for years among economists and historians who have sought to understand why some economies have grown faster than others. Some of the early texts in the field include Walt Whitman Rostow's The Stages of Economic Growth: A Non-Communist Manifesto (1971) which described how advanced economies grow after overcoming certain hurdles and advancing to the next stage in development. Another economist, Alexander Gerschenkron, complicated this theory with works on how economies develop in non-Western countries, as discussed in Economic Backwardness in Historical Perspective: A Book of Essays (1962). A more recent work is Daron Acemoglu and James A. Robinson's Why Nations Fail: The Origins of Power, Prosperity, and Poverty (2012) which pioneered a new field of persistence studies, emphasizing the path-dependent stages of growth. Other notable books on the topic include Kenneth Pomeranz's The Great Divergence: China, Europe, and the Making of the Modern World Economy (2000) and David S. Landes's The Wealth and Poverty of Nations: Why Some are So Rich and Some So Poor (1998).
Another development was the influence of Karl Marx and Marxian economics.Marx used historical analysis to interpret the role of class and class as a central issue in history. He debated with the "classical" economists (a term he coined), including Adam Smith and David Ricardo. In turn, Marx's legacy in economic history has been to critique the findings of neoclassical economists. Marxist analysis also confronts economic determinism, the theory that economic relationships are the foundation of political and societal institutions. Marx abstracted the idea of a "capitalist mode of production" as a way of identifying the transition from feudalism to capitalism. This has influenced some scholars, such as Maurice Dobb, to argue that feudalism declined because of peasants' struggles for freedom and the growing inefficiency of feudalism as a system of production. In turn, in what was later coined the Brenner debate, Paul Sweezy, a Marxian economist, challenged Dobs definition of feudalism and its focus only on western Europe.
In the United States, the field of economic history has in recent decades been largely subsumed into other fields of economics and is seen as a form of applied economics. As a consequence, there are no specialist economic history graduate programs at any universities anywhere in the country. Economic history remains as a special field component of regular economics or history PhD programs at leading universities, including University of California, Berkeley, Harvard University, Northwestern University, Princeton University, the University of Chicago and Yale University.
In recent decades, and notably since the global financial crisis of 2007–2008, scholars have recently become more interested in a field called new new economic history. Scholars have tended to move away from narrowly quantitative studies toward institutional, social, and cultural history affecting the evolution of economies.Columbia University economist Charles Calomiris argued that this new field showed 'how historical (path-dependent) processes governed changes in institutions and markets.' However, this trend has been criticized, most forcefully by Francesco Boldizzoni, as a form of economic imperialism "extending the neoclassical explanatory model to the realm of social relations." Conversely, economists in other specializations have started to write on topics concerning economic history.
A major development in the discipline of economic history was the publication of Thomas Piketty's Capital in the Twenty-First Century (2013). The book described the rise in wealth and income inequality since the 18th century, arguing that large concentrations of wealth lead to social and economic instability. Piketty also advocated a system of global progressive wealth taxes to correct rising inequality. The book was selected as a New York Times best seller and received numerous awards. The book was well received by some of the world's major economists, including Paul Krugman, Robert Solow, and Ben Bernanke.Books in response to Piketty's book include After Piketty: The Agenda for Economics and Inequality, by Heather Boushey, J. Bradford DeLong, and Marshall Steinbaum (eds.) (2017), Pocket Piketty by Jesper Roine (2017), and Anti-Piketty: Capital for the 21st Century, by Jean-Philippe Delsol, Nicolas Lecaussin, Emmanuel Martin (2017). One economist noted that Piketty's book was "Nobel-Prize worthy" and had changed the global discussion on how economic historians study inequality. It has also sparked new conversations in the disciplines of public policy.
A new field calling itself the "history of capitalism" has emerged in US history departments since about the year 2000. It includes many topics traditionally associated with the field of economic history, such as insurance, banking and regulation, the political dimension of business, and the impact of capitalism on the middle classes, the poor and women and minorities. The field utilizes the existing research of business history, but has sought to make it more relevant to the concerns of history departments in the United States, including by having limited or no discussion of individual business enterprises.
Scholars have critiqued the history of capitalism because it does not focus on systems of production, circulation, and distribution.Some have criticized its lack of social scientific methods and its ideological biases. As a result, a new academic journal, Capitalism and History, was founded at the University of Pennsylvania, under the direction of Francesco Boldizzoni (University of Helsinki), Marc Flandreau (University of Pennsylvania), and Carl Wennerlind (Barnard, Columbia University), to widen the scope of the field. The journal's goal is to bring together "historians and social scientists interested in the material and intellectual aspects of modern economic life." Historians of capitalism have countered these critiques, citing the issues with economic history. As University of Chicago professor of history Jonathan Levy states, "Modern economic history began with industrialization and urbanization, and, even then, environmental considerations were subsidiary, if not nonexistent."
The first journal of economic history was the The Economic History Review , founded in 1927, as the main publication of the Economic History Society. The first journal featured a publication by Professor Sir William Ashley, the first Professor of Economic History in the English-speaking world, who described the emerging field of economic history. The discipline existed alongside long-standing fields such as political history, religious history, and military history as one that focused on humans' interactions with 'visible happenings'. He continued, '[economic history] primarily and unless expressly extended, the history of actual human practice with respect to the material basis of life. The visible happenings with regard-to use the old formula-to "the production, distribution, and consumption of wealth" form our wide enough field'.
Later, the Economic History Association established another academic journal, The Journal of Economic History , in 1941 as a way of expanding the discipline in the United States.The first president of the Economic History Association, Edwin F. Gay, described the aim of economic history was to provide new perspectives in the economics and history disciplines: 'An adequate equipment with two skills, that of the historian and the economist, is not easily acquired, but experience shows that it is both necessary and possible'. Other related academic journals have broadened the lens with which economic history is studied. These interdisciplinary journals include the Business History Review , European Review of Economic History , Enterprise and Society , Financial History Review , and Journal of the History of Economic Thought .
The International Economic History Association, an association of close to 50 member organizations, recognizes some of the major academic organizations dedicated to study of economic history: the Business History Conference, Economic History Association, Economic History Society, European Association of Business Historians, and the International Social History Association.
Political economy is the study of production and trade and their relations with law, custom and government; and with the distribution of national income and wealth. As a discipline, political economy originated in moral philosophy, in the 18th century, to explore the administration of states' wealth, with "political" signifying the Greek word polity and "economy" signifying the Greek word "okonomie". The earliest works of political economy are usually attributed to the British scholars Adam Smith, Thomas Malthus, and David Ricardo, although they were preceded by the work of the French physiocrats, such as François Quesnay (1694–1774) and Anne-Robert-Jacques Turgot (1727–1781).
An economist is a practitioner in the social science discipline of economics.
Economic geography is the subfield of human geography which studies economic activity. It can also be considered a subfield or method in economics.
Development economics is a branch of economics which deals with economic aspects of the development process in low income countries. Its focus is not only on methods of promoting economic development, economic growth and structural change but also on improving the potential for the mass of the population, for example, through health, education and workplace conditions, whether through public or private channels.
Simon Smith Kuznets was an American economist and statistician who received the 1971 Nobel Memorial Prize in Economic Sciences "for his empirically founded interpretation of economic growth which has led to new and deepened insight into the economic and social structure and process of development."
The Chicago school of economics is a neoclassical school of economic thought associated with the work of the faculty at the University of Chicago, some of whom have constructed and popularized its principles.
Cliometrics, sometimes called new economic history, or econometric history, is the systematic application of economic theory, econometric techniques, and other formal or mathematical methods to the study of history. It is a quantitative approach to economic history. The term cliometrics comes from Clio, who was the muse of history, and was originally coined by the mathematical economist Stanley Reiter in 1960. There has been a revival in 'new economic history' since the late 1990s.
Robert William Fogel was an American economic historian and scientist, and winner of the 1993 Nobel Memorial Prize in Economic Sciences. As of his death, he was the Charles R. Walgreen Distinguished Service Professor of American Institutions and director of the Center for Population Economics (CPE) at the University of Chicago Booth School of Business. He is best known as an advocate of new economic history (cliometrics) – the use of quantitative methods in history.
Michio Morishima was a heterodox economist and public intellectual who was the Sir John Hicks Professor of Economics at the London School of Economics from 1970–88. He was also professor at Osaka University and member of the British Academy. In 1976 he won the Order of Culture.
Edmund Strother Phelps is an American economist and the recipient of the 2006 Nobel Memorial Prize in Economic Sciences.
Deirdre Nansen McCloskey is the Distinguished Professor of Economics, History, English, and Communication at the University of Illinois at Chicago (UIC). She is also adjunct professor of Philosophy and Classics there, and for five years was a visiting Professor of philosophy at Erasmus University, Rotterdam. Since October 2007 she has received six honorary doctorates. In 2013, she received the Julian L. Simon Memorial Award from the Competitive Enterprise Institute for her work examining factors in history that led to advancement in human achievement and prosperity. Her main research interests include the origins of the modern world, the misuse of statistical significance in economics and other sciences, and the study of capitalism, among many others.
Sir Anthony Barnes "Tony" Atkinson was a British economist, senior research fellow of Nuffield College, Oxford, and Centennial Professor at the London School of Economics.
The history of economic thought deals with different thinkers and theories in the subject that became political economy and economics, from the ancient world to the present day in the 21st Century. This field encompasses many disparate schools of economic thought. Ancient Greek writers such as the philosopher Aristotle examined ideas about the art of wealth acquisition, and questioned whether property is best left in private or public hands. In the Middle Ages, scholasticists such as Thomas Aquinas argued that it was a moral obligation of businesses to sell goods at a just price.
An economic ideology distinguishes itself from economic theory in being normative rather than just explanatory in its approach. Economic ideologies express perspectives on the way an economy should run and to what end, whereas the aim of economic theories is to create accurate explanatory models to describe how an economy currently functions. However, the two are closely interrelated, as underlying economic ideology influences the methodology and theory employed in analysis. The diverse ideology and methodology of the 74 Nobel laureates in economics speaks to such interrelation.
The following outline is provided as an overview of and topical guide to economics:
Thomas Piketty is a French economist whose work focuses on wealth and income inequality. He is a professor at the School for Advanced Studies in the Social Sciences (EHESS), associate chair at the Paris School of Economics and Centennial professor at the International Inequalities Institute, which is part of the London School of Economics (LSE).
Capital in the Twenty-First Century is a 2013 book by French economist Thomas Piketty. It focuses on wealth and income inequality in Europe and the United States since the 18th century. It was initially published in French in August 2013; an English translation by Arthur Goldhammer followed in April 2014.
The World Wealth and Income Database (WID), also known as WID.world, is an extensive, open and accessible database "on the historical evolution of the world distribution of income and wealth, both within countries and between countries".
The European Historical Economics Society (EHES) is Europe's leading research organization and learned society dedicated to the study of economic history. Founded in 1991, the EHES supports academic research within the discipline of economic history; organizes an annual conference; publishes regular working papers; and provides resources for early- and mid-career scholars. The EHES promotes "the advancement of education in European economic history through the study of European economies and economic history." The current president of the EHES is Pierre-Cyrille Hautcœur, a French economist and professor of economics at the Paris School of Economics.
The International Economic History Association (IEHA) is an association of national, regional, and international organizations dedicated to the field of economic history, broadly defined. The IEHA includes 45 member organizations in 40 countries around the world. Headquartered in Utrecht, Netherlands, the IEHA promotes the study of and facilitates collaboration on a variety of projects, publications, and initiatives. While the IEHA has origins in European historiographies, it has since expanded its scope and membership to include economies and scholars outside of traditional areas of research.
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