Beyond the Invisible Hand: Groundwork for a New Economics

Overview

"Deftly, with the carefully chosen anecdote, and the sparing but subtle thought experiment, Kaushik Basu again and again dispels the myth that the invisible hand of free markets leads to the best of all possible worlds—indeed, often far from it. With great wisdom, Beyond the Invisible Hand describes the frequently shocking consequences of the free markets of modern economic theory; it also sets the agenda for where that theory needs to go next."—George A. Akerlof, Nobel Laureate in Economics and coauthor of ...

See more details below
Hardcover
$31.84
BN.com price
(Save 20%)$39.95 List Price

Pick Up In Store

Reserve and pick up in 60 minutes at your local store

Other sellers (Hardcover)
  • All (8) from $22.98   
  • New (5) from $33.13   
  • Used (3) from $22.98   
Beyond the Invisible Hand: Groundwork for a New Economics

Available on NOOK devices and apps  
  • NOOK Devices
  • Samsung Galaxy Tab 4 NOOK 7.0
  • Samsung Galaxy Tab 4 NOOK 10.1
  • NOOK HD Tablet
  • NOOK HD+ Tablet
  • NOOK eReaders
  • NOOK Color
  • NOOK Tablet
  • Tablet/Phone
  • NOOK for Windows 8 Tablet
  • NOOK for iOS
  • NOOK for Android
  • NOOK Kids for iPad
  • PC/Mac
  • NOOK for Windows 8
  • NOOK for PC
  • NOOK for Mac
  • NOOK for Web

Want a NOOK? Explore Now

NOOK Book (eBook - Course Book)
$22.99
BN.com price
(Save 42%)$39.95 List Price

Overview

"Deftly, with the carefully chosen anecdote, and the sparing but subtle thought experiment, Kaushik Basu again and again dispels the myth that the invisible hand of free markets leads to the best of all possible worlds—indeed, often far from it. With great wisdom, Beyond the Invisible Hand describes the frequently shocking consequences of the free markets of modern economic theory; it also sets the agenda for where that theory needs to go next."—George A. Akerlof, Nobel Laureate in Economics and coauthor of Animal Spirits and Identity Economics

"In this remarkable tour de force, Kaushik Basu scrutinizes the foundational assumptions of economics and asks new and important questions. In his quest for a better and more equitable society, Basu leaves no room for complacency. This thought-provoking book will generate debate in the economics profession and beyond."—Justin Yifu Lin, chief economist, World Bank

"Beyond the Invisible Hand poses a fundamental challenge to the way that economists think about many of the most important issues of economic theory and policy. Written for both economists and educated laymen, the book lays out a new vision for economics, one that will stimulate the reader to rethink current practice and give deeper consideration to issues often slighted in contemporary economic analysis. While the reader may not always agree with Basu's prescriptions, the importance of his contribution to the debate over the future of economics cannot be ignored."—Steven G. Medema, University of Colorado, Denver

"With standard economic perspectives under question, the need for alternative perspectives is great. Eminently readable and timely, this book is appropriate for general readers and professional economists."—Arjo Klamer, Erasmus University

Read More Show Less

Editorial Reviews

Bloomberg
Alluring. . . . [Basu's] latest book, subtitled Groundwork for a New Economics, aims to show that many economists have dogmatically accepted capitalist theories as fact and have failed, as a result, to scrutinize their own discipline. . . . Basu devotes the bulk of the text to deconstructing some sacrosanct tenets of capitalism that have become entrenched in government policy over the past 60 years.
— Timothy R. Homan
Adam Smith's Lost Legacy
A most interesting and . . . a most significant book. . . . Basu's book is the first serious study of the modern myth related to the 'Invisible Hand' I have seen anywhere.
— Gavin Kennedy
Business World
Basu has rethought and modernized socialism in this book. He has done so without cluttering it up with Marxist jargon or abstract mathematics; the worst the reader will encounter in this book is game theory, which, though it is not all fun and games, is pretty easy to follow. It is a book worth reading by the socialist types who run our country, as well as those who need to understand socialism to dissent from it.
The Economic Times
[A] very rewarding read. . . . This is Basu's most ambitious and rewarding book, and it works—there's no public policy debate in India it's not relevant to.
Bloomberg - Timothy R. Homan
Alluring. . . . [Basu's] latest book, subtitled Groundwork for a New Economics, aims to show that many economists have dogmatically accepted capitalist theories as fact and have failed, as a result, to scrutinize their own discipline. . . . Basu devotes the bulk of the text to deconstructing some sacrosanct tenets of capitalism that have become entrenched in government policy over the past 60 years.
Adam Smith's Lost Legacy - Gavin Kennedy
A most interesting and . . . a most significant book. . . . Basu's book is the first serious study of the modern myth related to the 'Invisible Hand' I have seen anywhere.
European Legacy - Wladimir Andreff
This book should be read by anyone interested in economics for its in-depth thinking, although its targeted readership is more basically professional economists.
From the Publisher
"Alluring. . . . [Basu's] latest book, subtitled Groundwork for a New Economics, aims to show that many economists have dogmatically accepted capitalist theories as fact and have failed, as a result, to scrutinize their own discipline. . . . Basu devotes the bulk of the text to deconstructing some sacrosanct tenets of capitalism that have become entrenched in government policy over the past 60 years."—Timothy R. Homan, Bloomberg

"A most interesting and . . . a most significant book. . . . Basu's book is the first serious study of the modern myth related to the 'Invisible Hand' I have seen anywhere."—Gavin Kennedy, Adam Smith's Lost Legacy

"Basu has rethought and modernized socialism in this book. He has done so without cluttering it up with Marxist jargon or abstract mathematics; the worst the reader will encounter in this book is game theory, which, though it is not all fun and games, is pretty easy to follow. It is a book worth reading by the socialist types who run our country, as well as those who need to understand socialism to dissent from it."—Business World

"[A] very rewarding read. . . . This is Basu's most ambitious and rewarding book, and it works—there's no public policy debate in India it's not relevant to."—The Economic Times

"This book should be read by anyone interested in economics for its in-depth thinking, although its targeted readership is more basically professional economists."—Wladimir Andreff, European Legacy

"Beyond the Invisible Hand will be useful to political economists who want to see how game theory can shed light on the ways that groups and races of rational actors may assume surprising dynamics. It could also be useful to policymakers who must justify arguments about group policies in standard economic terms. [The] author's contributions to political economy deserves to be taken seriously."—Jonathan Schlefer, Perspectives on Politics

Read More Show Less

Product Details

  • ISBN-13: 9780691137162
  • Publisher: Princeton University Press
  • Publication date: 10/25/2010
  • Pages: 312
  • Sales rank: 1,441,311
  • Product dimensions: 6.30 (w) x 9.30 (h) x 1.10 (d)

Meet the Author

Kaushik Basu is professor of economics and the C. Marks Professor of International Studies at Cornell University. He is currently chief economic advisor to the Ministry of Finance of the Government of India. His books include "Prelude to Political Economy: A Study of the Political and Social Foundations of Economics" and "Of People, of Places: Sketches from an Economist's Notebook".

Read More Show Less

Table of Contents

Preface ix

Chapter 1: In Praise of Dissent 1
Discontent and Discourse 1 Smith's Myth 9 The Lay of the Land 11
On Understanding 13

Chapter 2: The Theory of the Invisible Hand 16
Competition and Social Welfare 16
The Standard Critiques 20

Chapter 3: The Limits of Orthodoxy 24 The Dual Interpretation 24
Evolving Feasible Set 27
Evolving Preference 31
Social Norms and Culture 33
A Comment on Incentive Compatibility 41
On Methodological Individualism 43
On Knowledge 49

Chapter 4: The Economy according to Law 55 Kafka's Invisible Hand 55
Law's Economy: The Standard View 57
The Law as Focal Point 60
Implications of the Focal View of Law 66
A Game-Theoretic Illustration of Law as Focal Point 71
A Research Agenda 73

Chapter 5: Markets and Discrimination 77
Do Free Markets Reduce Discrimination? 77
The Literature 79
The Self-Reinforcement of Productivity 83
The Entrepreneur 85
Toward a New Theoretical Model 89
Appendix: Aptitude Test Administered to Slum Children at Anandan in Calcutta 95

Chapter 6: The Chemistry of Groups 97
Identity and Methodological Individualism 97
The Ingredients of Theory 101
Altruism, Trust, and Development 104
The Janus Face of In-group Altruism 110
The Malignancy of Identity 120

Chapter 7: Contract, Coercion, and Intervention 130
Principle of Free Contract 130
Coercion and Voluntariness 138
The Large Numbers Argument 141
Acts and Rules 148
Multiple Equilibria 153
Domains of Intervention 155

Chapter 8: Poverty, Inequality, and Globalization 157
Governance and the Globe 157
Inequality 158
Some Facts of Globalization 161
Some Analytics of Globalization 165
Inequality and Poverty: The Quintile Axiom 167
Poverty-Minimizing Inequality, with or without Globalization 171
Policy Implications 176

Chapter 9: Globalization and the Retreat of Democracy 180
Democracy in Deficit 180
Globalization and Influence 185
Dollarization and Democracy 187
Democratic Global Institutions 189

Chapter 10: What Is to Be Done? 193
Interpreting the World and Changing It 193
The'Environmental Case' against Inequality 199
Despair and Hope 208

Notes 213
References 235
Index 259

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star

(0)

4 Star

(0)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)