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Feminist economics

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134-652: Feminist economics is the critical study of economics and economies, with a focus on gender-aware and inclusive economic inquiry and policy analysis. Feminist economic researchers include academics, activists, policy theorists, and practitioners. Much feminist economic research focuses on topics that have been neglected in the field, such as care work , intimate partner violence, or on economic theories which could be improved through better incorporation of gendered effects and interactions, such as between paid and unpaid sectors of economies. Other feminist scholars have engaged in new forms of data collection and measurement such as

268-570: A "dynamic analysis embracing all types of primitive agriculture." (Boserup, E. 1965. p 13) A major point of her book is that " necessity is the mother of invention ". Her other major work, Woman's Role in Economic Development , explored the allocation of tasks between men and women, and inaugurated decades of subsequent work connecting issues of gender to those of economic development, pointing out that many economic burdens fell disproportionately on women. In an early review, her book

402-477: A New Era (DAWN) and the 1992 founding of the International Association for Feminist Economics (IAFFE) along with its journal Feminist Economics in 1994 encouraged the rapid growth of feminist economics. As in other disciplines, the initial emphasis of feminist economists was to critique the established theory, methodology, and policy approaches. The critique began in microeconomics of

536-702: A definition of economics as a study of human behaviour, subject to and constrained by scarcity, which forces people to choose, allocate scarce resources to competing ends, and economise (seeking the greatest welfare while avoiding the wasting of scarce resources). According to Robbins: "Economics is the science which studies human behavior as a relationship between ends and scarce means which have alternative uses". Robbins' definition eventually became widely accepted by mainstream economists, and found its way into current textbooks. Although far from unanimous, most mainstream economists would accept some version of Robbins' definition, even though many have raised serious objections to

670-425: A disadvantage in the workplace." Feminist economists often extend these criticisms to many aspects of the social world, arguing that power relations are an endemic and important feature of society. Feminist economics argue that gender and race must be considered in economic analysis. Amartya Sen argues that "the systematically inferior position of women inside and outside the household in many societies points to

804-451: A distinct field. The book focused on determinants of national income in the short run when prices are relatively inflexible. Keynes attempted to explain in broad theoretical detail why high labour-market unemployment might not be self-correcting due to low " effective demand " and why even price flexibility and monetary policy might be unavailing. The term "revolutionary" has been applied to the book in its impact on economic analysis. During

938-491: A feminist model of economic actors. In their work, agents are not hyperrational or isolated, but instead act in concert and with fairness, are capable of experiencing jealousy, and are interested in personal relationships. This work is based on empirical sociology and psychology, and suggests that wages can be influenced by fairness considerations rather than purely market forces. Economics is often thought of as "the study of how society manages its scarce resources " and as such

1072-657: A fraction of a standard deviation), and many other studies fail to find a statistically significant difference at all. Yet the studies that fail to find "difference" are less likely to be published or highlighted. In addition, claims that men and women have "different" preferences (such as for risk, competition, or altruism) often tend to be misinterpreted as categorical, that is, as applying to all women and all men, as individuals. In fact, small differences in average behavior, such as are found in some studies, are generally accompanied by large overlaps in men's and women's distributions. That is, both men and women can generally be found in

1206-448: A higher likelihood of recovering from downturns if women participate in the labor force more, instead of devoting their time to housework. This approach demonstrates the effects of gender inequalities by enhancing macroeconomic models. Bernard Walters shows that traditional neoclassical models fail to adequately assess work related to reproduction by assuming that the population and labor are determined exogenously. That fails to account for

1340-420: A lower relative cost of production, rather relying only on its own production. It has been termed a "fundamental analytical explanation" for gains from trade . Coming at the end of the classical tradition, John Stuart Mill (1848) parted company with the earlier classical economists on the inevitability of the distribution of income produced by the market system. Mill pointed to a distinct difference between

1474-449: A more comprehensive theory of costs on the supply side. In the 20th century, neoclassical theorists departed from an earlier idea that suggested measuring total utility for a society, opting instead for ordinal utility , which posits behaviour-based relations across individuals. In microeconomics , neoclassical economics represents incentives and costs as playing a pervasive role in shaping decision making . An immediate example of this

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1608-478: A more generalized theory. The field continued to mature in to relation to population and environmental studies in developing countries. Neo-Boserupian theory continues to generate controversy with regards to population density and sustainable agriculture. Originally published in 1965, The Conditions of Agricultural Growth has been republished at least 16 times afterward and has been translated into at least four additional languages. Boserup also contributed to

1742-467: A more important role in mainstream economic theory. Also, heterogeneity among the economic agents, e.g. differences in income, plays an increasing role in recent economic research. Other schools or trends of thought referring to a particular style of economics practised at and disseminated from well-defined groups of academicians that have become known worldwide, include the Freiburg School ,

1876-538: A multidimensional concept including income, health, education, empowerment and social status. They argue that economic success can not be measured only by goods or gross domestic product , but must also be measured by human well-being. Aggregate income is not sufficient to evaluate general well-being, because individual entitlements and needs must also be considered, leading feminist economists to study health , longevity, access to property , education , and related factors. Bina Agarwal and Pradeep Panda illustrate that

2010-699: A one-sided favoring of masculine-associated assumptions and methods. While economics traditionally focused on markets and masculine-associated ideas of autonomy, abstraction and logic, feminist economists call for a fuller exploration of economic life, including such "culturally feminine " topics such as family economics , and examining the importance of connections, concreteness, and emotion in explaining economic phenomena. Many scholars including Ester Boserup , Marianne Ferber , Drucilla K. Barker , Julie A. Nelson , Marilyn Waring , Nancy Folbre , Diane Elson , Barbara Bergmann and Ailsa McKay have contributed to feminist economics. Waring's 1988 book If Women Counted

2144-597: A proportion of the value their work had created. Marxian economics was further developed by Karl Kautsky (1854–1938)'s The Economic Doctrines of Karl Marx and The Class Struggle (Erfurt Program) , Rudolf Hilferding 's (1877–1941) Finance Capital , Vladimir Lenin (1870–1924)'s The Development of Capitalism in Russia and Imperialism, the Highest Stage of Capitalism , and Rosa Luxemburg (1871–1919)'s The Accumulation of Capital . At its inception as

2278-409: A rapidly growing population against a limited amount of land meant diminishing returns to labour. The result, he claimed, was chronically low wages, which prevented the standard of living for most of the population from rising above the subsistence level. Economist Julian Simon has criticised Malthus's conclusions. While Adam Smith emphasised production and income, David Ricardo (1817) focused on

2412-429: A reformation provides a better description of the actual experiences of both men and women in the market, arguing that mainstream economics overemphasizes the role of individualism, competition and selfishness of all actors. Instead, feminist economists like Nancy Folbre show that cooperation also plays a role in the economy. Feminist economists also point out that agency is not available to everyone, such as children,

2546-469: A set of stable preferences, a definite overall guiding objective, and the capability of making a choice. There exists an economic problem, subject to study by economic science, when a decision (choice) is made by one or more players to attain the best possible outcome. Keynesian economics derives from John Maynard Keynes , in particular his book The General Theory of Employment, Interest and Money (1936), which ushered in contemporary macroeconomics as

2680-422: A significant role in models' outcomes. The two-sector system approach models the economy as two separate systems: one involving the standard macroeconomic variables, while the other includes gender-specific variables. William Darity developed a two-sector approach for low-income, farm-based economies. Darity shows that subsistence farming depended on the labor of women, while the production of income depended on

2814-409: A single tax on income of land owners. In reaction against copious mercantilist trade regulations, the physiocrats advocated a policy of laissez-faire , which called for minimal government intervention in the economy. Adam Smith (1723–1790) was an early economic theorist. Smith was harshly critical of the mercantilists but described the physiocratic system "with all its imperfections" as "perhaps

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2948-452: A social science, economics was defined and discussed at length as the study of production, distribution, and consumption of wealth by Jean-Baptiste Say in his Treatise on Political Economy or, The Production, Distribution, and Consumption of Wealth (1803). These three items were considered only in relation to the increase or diminution of wealth, and not in reference to their processes of execution. Say's definition has survived in part up to

3082-435: A sought after end). Some subsequent comments criticised the definition as overly broad in failing to limit its subject matter to analysis of markets. From the 1960s, however, such comments abated as the economic theory of maximizing behaviour and rational-choice modelling expanded the domain of the subject to areas previously treated in other fields. There are other criticisms as well, such as in scarcity not accounting for

3216-442: A synthesis emerged by the 2000s, often given the name the new neoclassical synthesis . It integrated the rational expectations and optimizing framework of the new classical theory with a new Keynesian role for nominal rigidities and other market imperfections like imperfect information in goods, labour and credit markets. The monetarist importance of monetary policy in stabilizing the economy and in particular controlling inflation

3350-451: A tiny fraction of the pimp's revenue filters down to the women and children he deploys. Usually the amount spent on them is merely for the maintenance of their lives and, in the case of those prostituted, some money may be spent on clothing and such accouterments as will make them more salable to the pimp's clients. For instance, focusing on just the US, according to a government sponsored report by

3484-403: A woman's property status (such as owning a house or land) directly and significantly reduces her chances of experiencing domestic violence , while employment makes little difference. They argue that such immovable property increases women's self-esteem , economic security, and strengthens their fall-back positions, enhancing their options and bargaining clout. They show that property ownership

3618-421: Is a term for the "way (nomos) to run a household (oikos)", or in other words the know-how of an οἰκονομικός ( oikonomikos ), or "household or homestead manager". Derived terms such as "economy" can therefore often mean "frugal" or "thrifty". By extension then, "political economy" was the way to manage a polis or state. There are a variety of modern definitions of economics ; some reflect evolving views of

3752-438: Is also applied to such diverse subjects as crime , education , the family , feminism , law , philosophy , politics , religion , social institutions , war , science , and the environment . The earlier term for the discipline was "political economy", but since the late 19th century, it has commonly been called "economics". The term is ultimately derived from Ancient Greek οἰκονομία ( oikonomia ) which

3886-489: Is an important contributor to women's economic well-being because it reduces their susceptibility to violence. In order to measure well-being more generally, Amartya Sen , Sakiko Fukuda-Parr , and other feminist economists helped develop alternatives to Gross Domestic Product , such as the Human Development Index . Other models of interest to feminist economists include the labor theory of value , which

4020-625: Is gendered and racialized; a theory and practice that ignores this is inherently flawed." Feminist economist Eiman Zein-Elabdin says racial and gender differences should be examined since both have traditionally been ignored and thus are equally described as "feminist difference." The July 2002 issue of the Feminist Economics journal was dedicated to issues of "gender, color, caste and class." In other cases gender differences have been exaggerated, potentially encouraging unjustified stereotyping. In recent works Julie A. Nelson has shown how

4154-444: Is labeled." Feminist economists call attention to the value judgements in all aspects economics and criticize its depiction of an objective science. A central principle of mainstream economics is that trade can make everyone better off through comparative advantage and efficiency gains from specialization and greater efficiency. Many feminist economists question this claim. Diane Elson , Caren Grown and Nilufer Cagatay explore

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4288-550: Is limited to mathematical inquiry. Traditional economists often say such an approach assures objectivity and separates economics from "softer" fields such as sociology and political science . Feminist economists, argue on the contrary that a mathematical conception of economics limited to scarce resources is a holdover from the early years of science and Cartesian philosophy , and limits economic analysis. So feminist economists often call for more diverse data collection and broader economic models. Feminist economists suggest that both

4422-574: Is often regarded as the "founding document" of the discipline. By the 1990s feminist economics had become sufficiently recognised as an established subfield within economics to generate book and article publication opportunities for its practitioners. Early on, feminist ethicists , economists , political scientists , and systems scientists argued that women's traditional work (e.g. child-raising, caring for sick elders) and occupations (e.g. nursing, teaching) are systematically undervalued with respect to that of men. For example, Jane Jacobs ' thesis of

4556-494: Is one means by which feminist economists improve upon the homo economicus model. This theory examines the role of institutions and evolutionary social processes in shaping economic behavior, emphasizing "the complexity of human motives and the importance of culture and relations of power." This provides a more holistic view of the economic actor than homo economicus. The work of George Akerlof and Janet Yellen on efficiency wages based on notions of fairness provides an example of

4690-449: Is only when rising population density curtails the use of fallowing (and therefore the use of fire) that fields are moved towards annual cultivation. Contending with insufficiently fallowed and less fertile plots, covered with grass or bushes rather than the forest, mandates expanded efforts at fertilizing, field preparation, weed control, and irrigation. These changes often induce agricultural innovation, but increase marginal labor cost to

4824-413: Is promoting it. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it

4958-598: Is the consumer theory of individual demand, which isolates how prices (as costs) and income affect quantity demanded. In macroeconomics it is reflected in an early and lasting neoclassical synthesis with Keynesian macroeconomics. Neoclassical economics is occasionally referred as orthodox economics whether by its critics or sympathisers. Modern mainstream economics builds on neoclassical economics but with many refinements that either supplement or generalise earlier analysis, such as econometrics , game theory , analysis of market failure and imperfect competition , and

5092-467: Is the basis for all economic activity and market economies , concluding that "everything needs care," not only people, but animals and things. She highlights the sustaining nature of care services offered outside the formal economy. Economics Economics ( / ˌ ɛ k ə ˈ n ɒ m ɪ k s , ˌ iː k ə -/ ) is a social science that studies the production , distribution , and consumption of goods and services . Economics focuses on

5226-574: Is unaccounted for in economic models, much work done by women is ignored, literally devaluing their effort. More specifically, for example, Nancy Folbre examines the role of children as public goods and how the non-market labor of parents contributes to the development of human capital as a public service . In this sense, children are positive externality which is under-invested according to traditional analysis. Folbre indicates that this oversight partially results from failing to properly examine non-market activities. Marilyn Waring described how

5360-536: Is widely regarded as being anti-Malthusian, both her insights and those of Malthus can be comfortably combined within the same general theoretical framework. Boserup argued that when population density is low enough to allow it, land tends to be used intermittently, with heavy reliance on fire to clear fields, and fallowing to restore fertility (often called slash and burn farming). Numerous studies have shown such methods to be favorable in total workload and also efficiency (output versus input). In Boserup's theory, it

5494-695: The status quo on women's issues and "lost sight of the division of labor in the family and the contribution of women's economic work." In response, she points to Mary Collier's works such as The Woman's Labour (1739) to help understand Smith's contemporaneous experiences of women and fill in such gaps. Central to feminist economics is an effort to alter the theoretical modeling of the economy, to reduce gender bias and inequity. Feminist macroeconomic inquiries focus on international capital flows, fiscal austerity, deregulation and privatization, monetary policy , international trade and more. In general, these modifications take three main forms: gender disaggregation,

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5628-615: The Gender Empowerment Measure (GEM), and more gender-aware theories such as the capabilities approach . Feminist economics is oriented towards the goal of "enhancing the well-being of children, women, and men in local, national, and transnational communities." Feminist economists call attention to the social constructions of traditional economics, questioning the extent to which it is positive and objective , and showing how its models and methods are biased by an exclusive attention to masculine -associated topics and

5762-732: The School of Lausanne , the Stockholm school and the Chicago school of economics . During the 1970s and 1980s mainstream economics was sometimes separated into the Saltwater approach of those universities along the Eastern and Western coasts of the US, and the Freshwater, or Chicago school approach. Within macroeconomics there is, in general order of their historical appearance in

5896-655: The UN and others in acknowledging care work , as a kind of work which includes all tasks involving caregiving , as central to economic development and human well-being. Feminist economists study both paid and unpaid care work. They argue that traditional analysis of economics often ignores the value of household unpaid work. Feminist economists have argued that unpaid domestic work is as valuable as paid work, so measures of economic success should include unpaid work. They have shown that women are disproportionately responsible for performing such care work. Sabine O'Hara argues that care

6030-533: The University of Copenhagen . She was also elected to the US National Academy of Sciences as a Foreign Associate in 1989. The doctorates were in three different fields: agricultural, economic, and human sciences, respectively; the interdisciplinary nature of her work is reflected in these honors, just as it distinguished her career. Of interdisciplinarity , Boserup said: "Somebody should have

6164-433: The macroeconomics of high unemployment. Gary Becker , a contributor to the expansion of economics into new areas, described the approach he favoured as "combin[ing the] assumptions of maximizing behaviour, stable preferences , and market equilibrium , used relentlessly and unflinchingly." One commentary characterises the remark as making economics an approach rather than a subject matter but with great specificity as to

6298-467: The neoclassical model of economic growth for analysing long-run variables affecting national income . Neoclassical economics studies the behaviour of individuals , households , and organisations (called economic actors, players, or agents), when they manage or use scarce resources, which have alternative uses, to achieve desired ends. Agents are assumed to act rationally, have multiple desirable ends in sight, limited resources to obtain these ends,

6432-415: The societal to the microeconomic level: Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man. Lionel Robbins (1932) developed implications of what has been termed "[p]erhaps the most commonly accepted current definition of

6566-477: The " Guardian Ethic " and its contrast to the " Trader Ethic " sought to explain the undervaluing of guardianship activity, including the child-protecting, nurturing, and healing tasks that were traditionally assigned to women. Written in 1969 and later published in the Houseworker's Handbook , Betsy Warrior's Housework: Slavery or a Labor of Love and The Source of Leisure Time presents a cogent argument that

6700-400: The "choice process and the type of social interaction that [such] analysis involves." The same source reviews a range of definitions included in principles of economics textbooks and concludes that the lack of agreement need not affect the subject-matter that the texts treat. Among economists more generally, it argues that a particular definition presented may reflect the direction toward which

6834-489: The "classroom climate" affects some students' perceptions of their own ability. Margunn Bjørnholt and Ailsa McKay argue that the financial crisis of 2007–08 and the response to it revealed a crisis of ideas in mainstream economics and within the economics profession, and call for a reshaping of both the economy, economic theory and the economics profession. They argue that such a reshaping should include new advances within feminist economics that take as their starting point

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6968-486: The 1970s and 1980s, when several major central banks followed a monetarist-inspired policy, but was later abandoned because the results were unsatisfactory. A more fundamental challenge to the prevailing Keynesian paradigm came in the 1970s from new classical economists like Robert Lucas , Thomas Sargent and Edward Prescott . They introduced the notion of rational expectations in economics, which had profound implications for many economic discussions, among which were

7102-402: The 1970s to 1990s, but these were not entirely successful in removing wage gaps even in nations with strong equity traditions. In 1988, Marilyn Waring published If Women Counted: A New Feminist Economics , a groundbreaking and systematic critique of the system of national accounts , the international standard of measuring economic growth, and the ways in which women's unpaid work as well as

7236-726: The UN Economic Commission of Europe (ECE). In 1957, she and Mogens worked in India in a research project run by Gunnar Myrdal ; she and Mogens worked in India until 1960. For the rest of her life, she worked as a consultant and writer. She and Mogens lived in Senegal for a year between 1964 and 1965, while he was leading the UN's effort to help establish the African Institute for Economic Development and Planning . She

7370-653: The Urban Institute in 2014, "A street prostitute in Dallas may make as little as $ 5 per sex act. But pimps can take in $ 33,000 a week in Atlanta, where the sex business brings in an estimated $ 290 million per year." Warrior believes that only an inclusive, facts-based economic analysis will provide a reliable bases for future planning for environmental and reproductive/population needs. In 1970, Ester Boserup published Woman's Role in Economic Development and provided

7504-595: The addition of gender-based macroeconomic variables, and the creation of a two-sector system. This method of economic analysis seeks to overcome gender bias by showing how men and women differ in their consumption, investment or saving behavior. Gender disaggregation strategies justify the separation of macroeconomic variables by gender. Korkut Ertürk and Nilüfer Çağatay show how the feminization of labor stimulates investment, while an increase in female activity in housework raises savings. This model highlights how gender effects macroeconomic variables and shows that economies have

7638-407: The analysis of wealth: how wealth is created (production), distributed, and consumed; and how wealth can grow. But he said that economics can be used to study other things, such as war, that are outside its usual focus. This is because war has as the goal winning it (as a sought after end ), generates both cost and benefits; and, resources (human life and other costs) are used to attain the goal. If

7772-479: The area of inquiry or object of inquiry rather than the methodology. In the biology department, it is not said that all biology should be studied with DNA analysis. People study living organisms in many different ways, so some people will perform DNA analysis, others might analyse anatomy, and still others might build game theoretic models of animal behaviour. But they are all called biology because they all study living organisms. According to Ha Joon Chang, this view that

7906-443: The author believes economics is evolving, or should evolve. Many economists including nobel prize winners James M. Buchanan and Ronald Coase reject the method-based definition of Robbins and continue to prefer definitions like those of Say, in terms of its subject matter. Ha-Joon Chang has for example argued that the definition of Robbins would make economics very peculiar because all other sciences define themselves in terms of

8040-716: The behaviour and interactions of economic agents and how economies work. Microeconomics analyses what is viewed as basic elements within economies , including individual agents and markets , their interactions, and the outcomes of interactions. Individual agents may include, for example, households, firms, buyers, and sellers. Macroeconomics analyses economies as systems where production, distribution, consumption, savings , and investment expenditure interact, and factors affecting it: factors of production , such as labour , capital , land , and enterprise , inflation , economic growth , and public policies that have impact on these elements . It also seeks to analyse and describe

8174-572: The biases of mainstream economics, they focus on its social beliefs about masculinity like objectivity, separation, logical consistency, individual accomplishment, mathematics, abstraction, and lack of emotion, but not on the gender of authorities and subjects. However, the over-representation of men among economists and their subjects of study is also a concern. Feminist economists say that mainstream economics has been disproportionately developed by European-descended, heterosexual , middle and upper-middle-class men, and that this has led to suppression of

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8308-516: The claims that: This list is not exhaustive but does represent some of the central feminist economic critiques of traditional economics, out of the wide variety of such viewpoints and critiques. Many feminists call attention to value judgments in economic analysis. This idea is contrary to the typical conception of economics as a positive science held by many practitioners. For example, Geoff Schneider and Jean Shackelford suggest that, as in other sciences, "the issues that economists choose to study,

8442-517: The colonies. Physiocrats , a group of 18th-century French thinkers and writers, developed the idea of the economy as a circular flow of income and output. Physiocrats believed that only agricultural production generated a clear surplus over cost, so that agriculture was the basis of all wealth. Thus, they opposed the mercantilist policy of promoting manufacturing and trade at the expense of agriculture, including import tariffs. Physiocrats advocated replacing administratively costly tax collections with

8576-418: The content and teaching style of economics courses would benefit from certain changes. Some recommend including experimental learning, laboratory sessions, individual research and more chances to "do economics." Some want more dialogue between instructors and students. Many feminist economists are urgently interested in how course content influences the demographic composition of future economists, suggesting that

8710-543: The courage not to specialise and to look at how one can bring things together. That is what I have tried to do." Her father was a Danish engineer, who died when she was 2 years old. The family was almost destitute for several years. Then, "encouraged by her mother and aware of her limited prospects without a good degree," she studied economic and agricultural development at the University of Copenhagen from 1929, and obtained her degree in theoretical economics in 1935. Ester had married Mogens Boserup when both were twenty-one;

8844-488: The design of modern monetary policy and are now standard workhorses in most central banks. After the 2007–2008 financial crisis , macroeconomic research has put greater emphasis on understanding and integrating the financial system into models of the general economy and shedding light on the ways in which problems in the financial sector can turn into major macroeconomic recessions. In this and other research branches, inspiration from behavioural economics has started playing

8978-530: The discourse surrounding gender and development practices with her 1970 work Woman's Role in Economic Development . The work is "the first investigation ever undertaken into what happens to women in the process of economic and social growth throughout the Third World ". Boserup's work is widely credited as a motivation behind the United Nations Decade for Women . In addition, according to

9112-506: The distribution of income among landowners, workers, and capitalists. Ricardo saw an inherent conflict between landowners on the one hand and labour and capital on the other. He posited that the growth of population and capital, pressing against a fixed supply of land, pushes up rents and holds down wages and profits. Ricardo was also the first to state and prove the principle of comparative advantage , according to which each country should specialise in producing and exporting goods in that it has

9246-625: The diversity of household experiences. For example, Bina Agarwal and others have critiqued the mainstream model and helped provide a better understanding of intra-household bargaining power. Agarwal shows that a lack of power and outside options for women hinders their ability to negotiate within their families. Amartya Sen shows how social norms that devalue women's unpaid work in the household often disadvantage women in intra-household bargaining . These feminist economists argue that such claims have important economic outcomes which must be recognized within economic frameworks. Feminist economists join

9380-469: The economy can and should be studied in only one way (for example by studying only rational choices), and going even one step further and basically redefining economics as a theory of everything, is peculiar. Questions regarding distribution of resources are found throughout the writings of the Boeotian poet Hesiod and several economic historians have described Hesiod as the "first economist". However,

9514-456: The exclusion of non-market activities in the national accounting systems relied on the deliberate choice and the design of the international standard of national accounts that explicitly excluded non-market activities. In some countries, such as Norway , which had included unpaid household work in the GDP in the first half of the 20th century, it was left out in 1950 for reasons of compatibility with

9648-479: The exclusion of outsiders. Such criticisms extend to the theories, methodologies and research areas of economics, in order to show that accounts of economic life are deeply influenced by biased histories, social structures, norms, cultural practices, interpersonal interactions, and politics. Feminist economists often make a critical distinction that masculine bias in economics is primarily a result of gender , not sex . In other words, when feminist economists highlight

9782-436: The fact that inputs are produced through caring labor, which is disproportionately performed by women. Stephen Knowels et al. use a neoclassical growth model to show that women's education has a positive statistically significant effect on labor productivity , more robust than that of men's education. In both of these cases, economists highlight and address the gender biases of macroeconomic variables to show that gender plays

9916-562: The farmer as well. The higher the rural population density, the more hours the farmer must work for the same amount of produce. Therefore, workloads tend to rise while efficiency drops. This process of raising production at the cost of more work at lower efficiency is what Boserup describes as " agricultural intensification ". Although Boserup's original theory was highly simplified and generalized, it proved instrumental in understanding agricultural patterns in developing countries . By 1978, her theory of agricultural change began to be reframed as

10050-751: The first large-scale macroeconometric model , applying the Keynesian thinking systematically to the US economy . Immediately after World War II, Keynesian was the dominant economic view of the United States establishment and its allies, Marxian economics was the dominant economic view of the Soviet Union nomenklatura and its allies. Monetarism appeared in the 1950s and 1960s, its intellectual leader being Milton Friedman . Monetarists contended that monetary policy and other monetary shocks, as represented by

10184-402: The first commodity, which is mother's milk and which sustains every new consumer/laborer); secondly, women's labor entails environmentally necessary cleaning, cooking to make raw materials consumable, negotiating to maintain social stability and nurturing, which prepares for market and maintains each laborer. This constitutes women's continuing industry enabling laborers to occupy every position in

10318-506: The first systematic examination of the gendered effects of agricultural transformation, industrialization and other structural changes. This evidence illuminated the negative outcomes that these changes had for women. This work, among others, laid the basis for the broad claim that "women and men weather the storm of macroeconomic shocks, neoliberal policies, and the forces of globalization in different ways." Moreover, measures such as employment equity were implemented in developed nations in

10452-540: The following decades, many economists followed Keynes' ideas and expanded on his works. John Hicks and Alvin Hansen developed the IS–LM model which was a simple formalisation of some of Keynes' insights on the economy's short-run equilibrium. Franco Modigliani and James Tobin developed important theories of private consumption and investment , respectively, two major components of aggregate demand . Lawrence Klein built

10586-485: The foreword in the 1989 edition by Swasti Mitter , "It is [Boserup's] committed and scholarly work that inspired the UN Decade for Women between 1975 and 1985, and that has encouraged aid agencies to question the assumption of gender neutrality in the costs as well as in the benefits of development". Boserup's text evaluated how work was divided between men and women, the types of jobs that constituted productive work, and

10720-509: The global economy . Other broad distinctions within economics include those between positive economics , describing "what is", and normative economics , advocating "what ought to be"; between economic theory and applied economics ; between rational and behavioural economics ; and between mainstream economics and heterodox economics . Economic analysis can be applied throughout society, including business , finance , cybersecurity , health care , engineering and government . It

10854-424: The growth in the money stock, was an important cause of economic fluctuations, and consequently that monetary policy was more important than fiscal policy for purposes of stabilisation . Friedman was also skeptical about the ability of central banks to conduct a sensible active monetary policy in practice, advocating instead using simple rules such as a steady rate of money growth. Monetarism rose to prominence in

10988-413: The household and labor markets and spread to macroeconomics and international trade , ultimately extending to all areas of traditional economic analysis. Feminist economists pushed for and produced gender aware theory and analysis, broadened the focus on economics and sought pluralism of methodology and research methods. Feminist economics shares many of its perspectives with ecological economics and

11122-410: The idea that "women are more risk averse than men," a now-popular assertion from behavioral economics, actually rests on extremely thin empirical evidence. Conducting meta-analyses of recent studies, she demonstrates that, while statistically significant differences in measures of mean risk aversion are sometimes found, the substantive size of these group-level differences tend to be small (on the order of

11256-482: The ideas of welfare economics and focused on the individual's potential to do and be what he or she may choose to value. Unlike traditional economic measures of success, focused on GDP , utility , income , assets or other monetary measures, the capabilities approach focuses on what individuals are able to do. This approach emphasizes processes as well as outcomes, and draws attention to cultural, social and material dynamics of well-being. Martha Nussbaum , expanded on

11390-463: The importance of various market failures for the functioning of the economy, as had Keynes. Not least, they proposed various reasons that potentially explained the empirically observed features of price and wage rigidity , usually made to be endogenous features of the models, rather than simply assumed as in older Keynesian-style ones. After decades of often heated discussions between Keynesians, monetarists, new classical and new Keynesian economists,

11524-519: The kinds of questions they ask, and the type of analysis undertaken all are a product of a belief system which is influenced by numerous factors, some of them ideological in character." Similarly, Diana Strassmann comments, "All economic statistics are based on an underlying story forming the basis of the definition. In this way, narrative constructions necessarily underlie all definitions of variables and statistics. Therefore, economic research cannot escape being inherently qualitative, regardless of how it

11658-461: The labor of both men and women in cash-crop activities. This model shows that when men control production and income, they seek to maximize income by persuading women to put additional effort into cash-crop production, causing increases in cash crops come at the expense of subsistence production. Many feminist economists argue economics should be focused less on mechanisms (like income ) or theories (such as utilitarianism ) and more on well-being ,

11792-452: The life experiences of the full diversity of the world's people, especially women, children and those in non-traditional families. Additionally, feminist economists claim that the historical bases of economics are inherently exclusionary to women. Michèle Pujol points to five specific historical assumptions about women that arose, became embedded in the formulation of economics, and continue to be used to maintain that women are different from

11926-568: The literature; classical economics , neoclassical economics , Keynesian economics , the neoclassical synthesis , monetarism , new classical economics , New Keynesian economics and the new neoclassical synthesis . Ester Boserup Ester Boserup (18 May 1910 – 24 September 1999) was a Danish economist . She studied economic and agricultural development, worked at the United Nations as well as other international organizations , and wrote seminal books on agrarian change and

12060-449: The market's two roles: allocation of resources and distribution of income. The market might be efficient in allocating resources but not in distributing income, he wrote, making it necessary for society to intervene. Value theory was important in classical theory. Smith wrote that the "real price of every thing ... is the toil and trouble of acquiring it". Smith maintained that, with rent and profit, other costs besides wages also enter

12194-492: The masculinized norms and exclude them. These include the ideas that: Feminist economists also examine early economic thinkers' interaction or lack of interaction with gender and women's issues, showing examples of women's historical engagement with economic thought. For example, Edith Kuiper discusses Adam Smith's engagement with feminist discourse on the role of women in the eighteenth century France and England . She finds that through his writings, Smith typically supported

12328-486: The model with a more complete list of central capabilities including life, health, bodily integrity, thought, and more. In recent years, the capabilities approach has influenced the creation of new models including the UN's Human Development Index (HDI). Central to feminist economics is a different approach to the "family" and "household." In classical economics, those units are typically described as amicable and homogeneous . Gary Becker and new home economists introduced

12462-433: The more applied field of green economy , including the focus on sustainability , nature , justice and care values. Although there is no definitive list of the principles of feminist economics, feminist economists offer a variety of critiques of standard approaches in economics. For example, prominent feminist economist Paula England provided one of the earliest feminist critiques of traditional economics as she challenged

12596-437: The most famous passages in all economics," Smith represents every individual as trying to employ any capital they might command for their own advantage, not that of the society, and for the sake of profit, which is necessary at some level for employing capital in domestic industry, and positively related to the value of produce. In this: He generally, indeed, neither intends to promote the public interest, nor knows how much he

12730-745: The most risk-averse (or competitive or altruistic) groups, as well as in the least. The neoclassical economic model of a person is called Homo economicus , describing a person who "interacts in society without being influenced by society," because "his mode of interaction is through an ideal market ," in which prices are the only necessary considerations. In this view, people are considered rational actors who engage in marginal analysis to make many or all of their decisions. Feminist economists argue that people are more complex than such models, and call for "a more holistic vision of an economic actor, which includes group interactions and actions motivated by factors other than greed." Feminist economics holds that such

12864-576: The necessity of treating gender as a force of its own in development analysis." He goes on to say that experiences of men and women, even within the same household, are often so different that examining economics without gender can be misleading. Economic models can often be improved by explicitly considering gender, race, class, and caste . Julie Matthaie describes their importance: "Not only did gender and racial-ethnic differences and inequality precede capitalism , they have been built into it in key ways. In other words, every aspect of our capitalist economy

12998-421: The neoclassical description of labor markets in which occupations are chosen freely by individuals acting alone and out of their own free will. Feminist economics also includes study of norms relevant to economics, challenging the traditional view that material incentives will reliably provide the goods we want and need (consumer sovereignty), which does not hold true for many people. Institutional economics

13132-399: The new international standard. Ailsa McKay argues for a basic income as "a tool for promoting gender-neutral social citizenship rights" partially to address these concerns. Feminist economics often assert that power relations exist within the economy, and therefore, must be assessed in economic models in ways that they previously have been overlooked. For example, in "neoclassical texts,

13266-503: The pessimistic analysis of Malthus (1798). John Stuart Mill (1844) delimited the subject matter further: The science which traces the laws of such of the phenomena of society as arise from the combined operations of mankind for the production of wealth, in so far as those phenomena are not modified by the pursuit of any other object. Alfred Marshall provided a still widely cited definition in his textbook Principles of Economics (1890) that extended analysis beyond wealth and from

13400-487: The present, modified by substituting the word "wealth" for "goods and services" meaning that wealth may include non-material objects as well. One hundred and thirty years later, Lionel Robbins noticed that this definition no longer sufficed, because many economists were making theoretical and philosophical inroads in other areas of human activity. In his Essay on the Nature and Significance of Economic Science , he proposed

13534-409: The price of a commodity. Other classical economists presented variations on Smith, termed the ' labour theory of value '. Classical economics focused on the tendency of any market economy to settle in a final stationary state made up of a constant stock of physical wealth (capital) and a constant population size . Marxist (later, Marxian) economics descends from classical economics and it derives from

13668-442: The production and reproduction of domestic labor performed by women constitutes the foundation of all economic transactions and survival; although, unremunerated and not included in the GDP. According to Warrior: "Economics, as it's presented today, lacks any basis in reality as it leaves out the very foundation of economic life. That foundation is built on women's labor; first her reproductive labor which produces every new laborer (and

13802-429: The purest approximation to the truth that has yet been published" on the subject. The publication of Adam Smith 's The Wealth of Nations in 1776, has been described as "the effective birth of economics as a separate discipline." The book identified land, labour, and capital as the three factors of production and the major contributors to a nation's wealth, as distinct from the physiocratic idea that only agriculture

13936-490: The role of women in development . Boserup is known for her theory of agricultural intensification, also known as Boserup's theory , which posits that population change drives the intensity of agricultural production. Her position countered the Malthusian theory that agricultural methods determine population via limits on food supply . Her best-known book on this subject, The Conditions of Agricultural Growth, presents

14070-529: The role that gender inequalities play in international trade and how such trade reshapes gender inequality itself. They and other feminist economists explore whose interests specific trade practices serve. For example, they may highlight that in Africa , specialization in the cultivation of a single cash crop for export in many countries made those countries extremely vulnerable to price fluctuations, weather patterns, and pests. Feminist economists may also consider

14204-506: The sale of labor is viewed as a mutually beneficial exchange that benefits both parties. No mention is made of the power inequities in the exchange which tend to give the employer power over the employee." These power relations often favor men and there is "never any mention made of the particular difficulties that confront females in the workplace ." Consequently, "Understanding power and patriarchy helps us to analyze how men-dominated economic institutions function and why females are often at

14338-412: The scope and method of economics, emanating from that definition. A body of theory later termed "neoclassical economics" formed from about 1870 to 1910. The term "economics" was popularised by such neoclassical economists as Alfred Marshall and Mary Paley Marshall as a concise synonym for "economic science" and a substitute for the earlier " political economy ". This corresponded to the influence on

14472-411: The sexes," and applied individualistic rational-choice models to explain home behavior. Feminist economists modify these assumptions to account for exploitative sexual and gender relations, single-parent families , same-sex relationships , familial relations with children, and the consequences of reproduction. Specifically, feminist economists move beyond unitary household models and game theory to show

14606-523: The sick, and the frail elderly. Responsibilities for their care can compromise the agency of caregivers as well. This is a critical departure from the homo economicus model. Moreover, feminist economists critique the focus of neoclassical economics on monetary rewards. Nancy Folbre notes, "legal rules and cultural norms can affect market outcomes in ways distinctly disadvantageous to women." This includes occupational segregation resulting in unequal pay for women. Feminist research in these areas contradicts

14740-513: The size and growth of the population depend on the food supply and agricultural methods. In Boserup's theory, agricultural methods depend on the size of the population. In the Malthusian view, when food is not sufficient for everyone, the excess population will die. However, Boserup argued that in those times of pressure, people will find ways to increase the production of food by increasing workforce, machinery, fertilizers, etc. Although Boserup

14874-486: The so-called Lucas critique and the presentation of real business cycle models . During the 1980s, a group of researchers appeared being called New Keynesian economists , including among others George Akerlof , Janet Yellen , Gregory Mankiw and Olivier Blanchard . They adopted the principle of rational expectations and other monetarist or new classical ideas such as building upon models employing micro foundations and optimizing behaviour, but simultaneously emphasised

15008-582: The socially responsible, sensible and accountable subject in creating an economy and economic theories that fully acknowledge care for each other as well as the planet. Feminist critiques of economics include that "economics, like any science, is socially constructed ." Feminist economists say that social constructs act to privilege male-identified, western , and heterosexual interpretations of economics. They generally incorporate feminist theory and frameworks to show how traditional economics communities signal expectations regarding appropriate participants, to

15142-444: The source of the word economy. Joseph Schumpeter described 16th and 17th century scholastic writers, including Tomás de Mercado , Luis de Molina , and Juan de Lugo , as "coming nearer than any other group to being the 'founders' of scientific economics" as to monetary , interest , and value theory within a natural-law perspective. Two groups, who later were called "mercantilists" and "physiocrats", more directly influenced

15276-728: The specific gendered effects of trade-decisions. For instance, "in countries such as Kenya , men generally controlled the earnings from cash crops while women were still expected to provide food and clothing for the household, their traditional role in the African family, along with labor to produce cash crops. Thus women suffered significantly from the transition away from subsistence food production towards specialization and trade." Similarly, since women often lack economic power as business owners, they are more likely to be hired as cheap labor, often involving them in exploitative situations. These examples highlight feminist economic theory's critique of

15410-406: The state or commonwealth with a revenue for the publick services. Jean-Baptiste Say (1803), distinguishing the subject matter from its public-policy uses, defined it as the science of production, distribution, and consumption of wealth . On the satirical side, Thomas Carlyle (1849) coined " the dismal science " as an epithet for classical economics , in this context, commonly linked to

15544-430: The study of "the family" to traditional economics, which usually assumes the family is a single, altruistic unit among which money is distributed equally. Others have concluded that an optimal distribution of commodities and provisions takes place within the family as a result of which they view families in the same manner as individuals. These models, according to feminist economists, "endorsed traditional expectations about

15678-408: The subject of mathematical methods used in the natural sciences . Neoclassical economics systematically integrated supply and demand as joint determinants of both price and quantity in market equilibrium, influencing the allocation of output and income distribution. It rejected the classical economics' labour theory of value in favour of a marginal utility theory of value on the demand side and

15812-402: The subject or different views among economists. Scottish philosopher Adam Smith (1776) defined what was then called political economy as "an inquiry into the nature and causes of the wealth of nations", in particular as: a branch of the science of a statesman or legislator [with the twofold objectives of providing] a plentiful revenue or subsistence for the people ... [and] to supply

15946-471: The subject": Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. Robbins described the definition as not classificatory in "pick[ing] out certain kinds of behaviour" but rather analytical in "focus[ing] attention on a particular aspect of behaviour, the form imposed by the influence of scarcity ." He affirmed that previous economists have usually centred their studies on

16080-826: The subsequent development of the subject. Both groups were associated with the rise of economic nationalism and modern capitalism in Europe. Mercantilism was an economic doctrine that flourished from the 16th to 18th century in a prolific pamphlet literature, whether of merchants or statesmen. It held that a nation's wealth depended on its accumulation of gold and silver. Nations without access to mines could obtain gold and silver from trade only by selling goods abroad and restricting imports other than of gold and silver. The doctrine called for importing inexpensive raw materials to be used in manufacturing goods, which could be exported, and for state regulation to impose protective tariffs on foreign manufactured goods and prohibit manufacturing in

16214-456: The traditional economic theory. Feminist economics call attention to the importance of non-market activities, such as childcare and domestic work , to economic development. This stands in sharp contrast to neoclassical economics where those forms of labor are unaccounted for as "non-economic" phenomena. Including such labor in economic accounts removes substantial gender bias because women disproportionately perform those tasks. When that labor

16348-608: The type of education women needed to enhance development. This text marked a shift in the Women in Development (WID) debates because it argued that women's contributions, both domestic and in the paid workforce, contributed to national economies. Many liberal feminists took Boserup's analysis further to argue that the costs of modern economic development were shouldered by women. Woman's Role in Economic Development, too, has been republished many times, appearing in print in at least

16482-623: The value of Nature have been excluded from what counts as productive in the economy. In the foreword to the 2014 anthology Counting on Marilyn Waring , Julie A. Nelson wrote: Supported by formation of the Committee on the Status of Women in the Economics Profession (CSWEP) in 1972, gender-based critiques of traditional economics appeared in the 1970s and 80s. The subsequent emergence of Development Alternatives with Women for

16616-467: The war is not winnable or if the expected costs outweigh the benefits, the deciding actors (assuming they are rational) may never go to war (a decision ) but rather explore other alternatives. Economics cannot be defined as the science that studies wealth, war, crime, education, and any other field economic analysis can be applied to; but, as the science that studies a particular common aspect of each of those subjects (they all use scarce resources to attain

16750-515: The word Oikos , the Greek word from which the word economy derives, was used for issues regarding how to manage a household (which was understood to be the landowner, his family, and his slaves ) rather than to refer to some normative societal system of distribution of resources, which is a more recent phenomenon. Xenophon , the author of the Oeconomicus , is credited by philologues for being

16884-562: The work force. Without this fundamental labor and commodity there would be no economic activity nor we would have survived to continue to evolve." Warrior also notes that the unacknowledged income of men from illegal activities like arms, drugs and human trafficking, political graft, religious emoluments and various other undisclosed activities provide a rich revenue stream to men, which further invalidates GDP figures. Even in underground economies where women predominate numerically, like trafficking in humans, prostitution and domestic servitude, only

17018-460: The work of Karl Marx . The first volume of Marx's major work, Das Kapital , was published in 1867. Marx focused on the labour theory of value and theory of surplus value . Marx wrote that they were mechanisms used by capital to exploit labour. The labour theory of value held that the value of an exchanged commodity was determined by the labour that went into its production, and the theory of surplus value demonstrated how workers were only paid

17152-702: The young couple lived on his allowance from his well-off family during their remaining university years. Their daughter, Birte, was born in 1937; their sons Anders, in 1940, and Ivan, in 1944. After graduation Boserup worked for the Danish government from 1935–1947, right through the Nazi occupation in WWII. As head of its planning office, she worked on studies involving the effects of subsidies on trade. She made almost no reference to conflicts between family and work during her lifetime. The family moved to Geneva in 1947 to work with

17286-537: Was based in Copenhagen until her husband died in 1980, after which she settled near Geneva. In her later years, in the 1990s, she lived in Ticino , Switzerland . Her first major work, The Conditions of Agricultural Growth: The Economics of Agrarian Change Under Population Pressure, laid out her thesis, informed by her experience in India in opposition to many views of the time. According to Malthusian theory ,

17420-573: Was called "pioneering;" nearly five decades later, it has proved influential, having been cited by thousands of other works. It was her great belief that humanity would always find a way and was quoted in saying "The power of ingenuity would always outmatch that of demand". She also influenced the debate on women in the workforce and human development , and the possibility of better opportunities of work and education for women . Her work earned her three honorary doctorate degrees: one from Wageningen University ; one from Brown University ; and one from

17554-505: Was most thoroughly developed in Das Kapital by Karl Marx . That model considers production as a socially constructed human project and redefines wages as means to earning a living. This refocuses economic models on human innate desires and needs as opposed to monetary incentives. Economists Amartya Sen and Philosopher Martha Nussbaum created the human capabilities approach as an alternative way to assess economic success rooted in

17688-421: Was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. The Reverend Thomas Robert Malthus (1798) used the concept of diminishing returns to explain low living standards. Human population , he argued, tended to increase geometrically, outstripping the production of food, which increased arithmetically. The force of

17822-892: Was productive. Smith discusses potential benefits of specialisation by division of labour , including increased labour productivity and gains from trade , whether between town and country or across countries. His "theorem" that "the division of labor is limited by the extent of the market" has been described as the "core of a theory of the functions of firm and industry " and a "fundamental principle of economic organization." To Smith has also been ascribed "the most important substantive proposition in all of economics" and foundation of resource-allocation theory—that, under competition , resource owners (of labour, land, and capital) seek their most profitable uses, resulting in an equal rate of return for all uses in equilibrium (adjusted for apparent differences arising from such factors as training and unemployment). In an argument that includes "one of

17956-437: Was recognised as well as the traditional Keynesian insistence that fiscal policy could also play an influential role in affecting aggregate demand . Methodologically, the synthesis led to a new class of applied models, known as dynamic stochastic general equilibrium or DSGE models, descending from real business cycles models, but extended with several new Keynesian and other features. These models proved useful and influential in

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