Kornai’s DRSE Theory Versus General Equilibrium Theory

János Kornai’s DRSE theory (Kornai, 2014) follows the ex post model philosophy which radically rejects the ex ante set of conditions laid down by the dominant neoclassical school and the stringent limits of equilibrium, and defines its own premises for the functioning of capitalist economy. In other words, the DRSE theory represents an extremely novel trend among the various schools of economics. The theory is still only a verbal model with the following supporting pillars as the immanent features of the capitalist system: dynamism, rivalry and the surplus economy. (The English name of the theory uses the initial letters of the terms Dynamism, Rivalry, Surplus Economy). The dominance of the surplus economy, that is, oversupply is replaced by monopolistic competition, uncertainty over the volume of demand, Schumpeterian innovation, dynamism, technological progress, creative destruction and increasing return to scale with rivalry between producers and service providers for markets. This paper aims to examine whether the DRSE theory can be formulated as a formal mathematical model. We have chosen a special route to do this: first we explore the unreal ex ante assumptions of general equilibrium theory (Walras, 1874; Neumann, 1945), and then we establish some of the possible connections between the premises of DRSE, which include the crucial condition that just like in biological evolution, there is no fixed steady state in the evolutionary processes of market economy, not even as a point of reference. General equilibrium theory and DRSE theory are compared in the focus of Schumpeterian evolutionary economics.

General strain theory, situational anger, and social networks: An assessment of conditioning influences

Using a random sample of university students to test general strain theory (GST), this study expanded on previous tests of strain theory in two ways. First, situational anger was measured, a construct that had not been used thus far in assessments of general strain. In addition, this research examined the role of social support networks as a conditioning influence on the effects of strain and anger on intentions to commit three types of criminal behavior (serious assault, shoplifting, and driving under the influence of alcohol [DUI]). The results provided mixed support for GST. While the link between anger and crime was confirmed, the nature of that relationship in some cases ran counter to the theory. Moreover, the evidence indicated that the role of social support networks was complex, and varied as a conditioning influence on intentions to engage in criminal activities. (C) 2001 Elsevier Science Ltd. All rights reserved.

The general equilibrium theory as economic metatheory

Many economists show certain nonconformity relative to the excessive mathematical formalization of economics. This stems from dissatisfaction with the old debate about the lack of correspondence between mainstream theoretical models and reality. Although we do not propose to settle this debate here, this article seeks to associate the mismatch of mathematized models with the reality of the adoption of the hypothetical-deductive method as reproduced by general equilibrium. We begin by defining the main benefits of the mathematization of economics. Secondly, we address traditional criticism leveled against it. We then focus on more recent criticism from Gillies (2005) and Bresser-Pereira (2008). Finally, we attempt to associate the reproduction of the hypothetical-deductive method with a metatheoretical process triggered by Debreu's general equilibrium theory. In this respect, we appropriate the ideas of Weintraub (2002), Punzo (1991), and mainly Woo (1986) to support our hypothesis.