| Peer-Reviewed

Objective and Subjective Factors in Economy and Economics

Received: 21 December 2020     Accepted: 6 January 2021     Published: 25 January 2021
Views:       Downloads:
Abstract

The paper is aimed to substantiate that in modern economy, besides the market, a public sphere exists and develops according to its inherent non-market logic. This issue is regarded from the point of view of correlation between objective and subjective factors in the economy. The author expounds his conception of these factors’ correlation, the evolution of scientific insights in their role in society, explains the specificity of subjective forces’ functioning judging from the positions of methodological dualism, which combines the principles of individualism and collectivism. The dual nature of human personality combining contradictory fundamentals of instinctive individualism and collectivism acquired in society explains people’s substantial behavioral differences under market conditions and in the public sphere. In the paper the differing importance of objective and subjective factors in the market and non-market spheres of economy is substantiated: the market area is managed mainly by objective regularities, which reduce people’s subjective actions to a common denominator, whereas in the public sphere, on the contrary, the leading role is played by subjective notions of public interests, of benefit and mischief resulting from any intentions, of further development goals and ways. In the final part of the research the author presents his characteristic of the public sphere, which functions besides the market but with the latter demands in view, and therefore requires an in-depth study of its inherent regularities, including the state fulfilling its regulating role in market economy.

Published in Journal of World Economic Research (Volume 10, Issue 1)
DOI 10.11648/j.jwer.20211001.11
Page(s) 1-9
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Objective and Subjective Factors, Market and Non-market Spheres, Individualism and Collectivism, Methodological Dualism, The Public Sphere and Its Regularities, The Role of the State in Market Economy

References
[1] Akerlof O. A. (1970). The market for ‘lemons’. Quality uncertainty and the market mechanism. Quarterly Journal of Economics, Vol. 84, No. 3, pp. 488-500. https://doi.org/10.2307/1879431
[2] Arrighi G. (2006). Long twentieth century: Money, power and sources of our time. Moscow: Territory of the Future Publishing House. 472 p. (in Russian)
[3] Grinberg R. S., Rubinshtein A. Ya. (2000). Economic sociodynamics. Moscow: IEPress. (in Russian)
[4] Camerer C., Loewenstein G., Prelec D. (2005). Neuroeconomics. How neuroscience can inform economics. Journal of Economic Literature, Vol. 43, No. 1, pp. 9-64. https://doi.org/10.1257/0022051053737843
[5] Coase R. H. (1937) The nature of the firm. Economica, New Series, Vol. 4, No. 16, pp. 386-405/ https://doi.org/10.1111/j.1468.0335.1937.tb00002.x.
[6] Denzau A., North D. (1994) Shared mental models, ideologies and institutions, Kyklos, Vol. 47, No. 1, pp. 3-31. /http://doi.org/10.1111/j1467-6435.1994.tb02246.x.
[7] Hartley J. E. (1996) The origin of the representative agent. Journal of Economic Perspectives, Vol. 10, No. 2, pp. 1 69-177. https://doi.org/10.1257/jep.10.2.169
[8] Knyazev Yu. K. (2014). Contemporary economy – synthesis of market and public regulation. Moscow: Infra-M. (in Russian)
[9] Koppl R. (2011). Against representative agent methodology. Review of Austrian Economics. Vol 24, No. 1, pp. 43-55. https://doi.org/10.1997/s11138-o1o-0119z.
[10] Marx K. (1969). The Capital. Parts 1-3/Marx K., Engels F. Works. 2-d edition. Vol 23-25. Moscow: Politizdat. (in Russian)
[11] Masgrave R., Masgrave P. (2009). State finances: theory and practice. Moscow, Business Atlas (in Russian)
[12] North M., Macal C. (2007). Managing business complexity: Discovering strategic solutions with agent-based modeling and simulation. Oxford University Press.
[13] Robbins L. (1928). The representative firm. Economic Journal. Vol. 38, No. 151, pp. 387-404. https://doi.org/10.2307/2224316.
[14] Rubinshtein A. Ya. (2011) Guardian goods: institutional transformations// Voprosy ekonomiki. No 3 (in Russian)
[15] Rubinshtein A. Ya. (2018) Theory of guardian goods. Text-book. SPb, Aleteya (in Russian)
[16] Samuelson P. (1992) Economics. Moscow: NPO “Algon” VNIISI. 1992. Part 1 – 334 p., part 2 - 416 p. (in Russian)
[17] Schohl F. (1999) The paradoxical fate of the representative firm. Journal of the History of Economic Thought, Vol. 21, pp. 65-80. https://doi.org/10.1017/S1053837200002856.
[18] Smith A. An inquiry into the nature and causes of the wealth of nations. Moscow. 2016 (in Russian)
[19] Stiglitz J. E. (2002). Information and the change in the paradigm in economics. American Economic Review, Vol. 92, No. 3, pp. 460-501. https://doi.org/10/1257/00028280260136363.
[20] Tambovtsev V. L. Narrative analysis in economics as an ascent to complexity. Voprosy ekonomiki, No. 4, pp. 5-30 (in Russian)
[21] Tversky A., Kahneman D. (1971). Belief in the law of small numbers. Psychological Bulletin, Vol. 76, No. 2, pp. 105-110. https://doi.org/10.1037/h0031322.
[22] Williamson O. E. (1973). Markets and hierarchies. Some elementary considerations. American Economic Review, Vol. 63, No. 2, pp. 316-325.
Cite This Article
  • APA Style

    Yuriy Knyazev. (2021). Objective and Subjective Factors in Economy and Economics. Journal of World Economic Research, 10(1), 1-9. https://doi.org/10.11648/j.jwer.20211001.11

    Copy | Download

    ACS Style

    Yuriy Knyazev. Objective and Subjective Factors in Economy and Economics. J. World Econ. Res. 2021, 10(1), 1-9. doi: 10.11648/j.jwer.20211001.11

    Copy | Download

    AMA Style

    Yuriy Knyazev. Objective and Subjective Factors in Economy and Economics. J World Econ Res. 2021;10(1):1-9. doi: 10.11648/j.jwer.20211001.11

    Copy | Download

  • @article{10.11648/j.jwer.20211001.11,
      author = {Yuriy Knyazev},
      title = {Objective and Subjective Factors in Economy and Economics},
      journal = {Journal of World Economic Research},
      volume = {10},
      number = {1},
      pages = {1-9},
      doi = {10.11648/j.jwer.20211001.11},
      url = {https://doi.org/10.11648/j.jwer.20211001.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20211001.11},
      abstract = {The paper is aimed to substantiate that in modern economy, besides the market, a public sphere exists and develops according to its inherent non-market logic. This issue is regarded from the point of view of correlation between objective and subjective factors in the economy. The author expounds his conception of these factors’ correlation, the evolution of scientific insights in their role in society, explains the specificity of subjective forces’ functioning judging from the positions of methodological dualism, which combines the principles of individualism and collectivism. The dual nature of human personality combining contradictory fundamentals of instinctive individualism and collectivism acquired in society explains people’s substantial behavioral differences under market conditions and in the public sphere. In the paper the differing importance of objective and subjective factors in the market and non-market spheres of economy is substantiated: the market area is managed mainly by objective regularities, which reduce people’s subjective actions to a common denominator, whereas in the public sphere, on the contrary, the leading role is played by subjective notions of public interests, of benefit and mischief resulting from any intentions, of further development goals and ways. In the final part of the research the author presents his characteristic of the public sphere, which functions besides the market but with the latter demands in view, and therefore requires an in-depth study of its inherent regularities, including the state fulfilling its regulating role in market economy.},
     year = {2021}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Objective and Subjective Factors in Economy and Economics
    AU  - Yuriy Knyazev
    Y1  - 2021/01/25
    PY  - 2021
    N1  - https://doi.org/10.11648/j.jwer.20211001.11
    DO  - 10.11648/j.jwer.20211001.11
    T2  - Journal of World Economic Research
    JF  - Journal of World Economic Research
    JO  - Journal of World Economic Research
    SP  - 1
    EP  - 9
    PB  - Science Publishing Group
    SN  - 2328-7748
    UR  - https://doi.org/10.11648/j.jwer.20211001.11
    AB  - The paper is aimed to substantiate that in modern economy, besides the market, a public sphere exists and develops according to its inherent non-market logic. This issue is regarded from the point of view of correlation between objective and subjective factors in the economy. The author expounds his conception of these factors’ correlation, the evolution of scientific insights in their role in society, explains the specificity of subjective forces’ functioning judging from the positions of methodological dualism, which combines the principles of individualism and collectivism. The dual nature of human personality combining contradictory fundamentals of instinctive individualism and collectivism acquired in society explains people’s substantial behavioral differences under market conditions and in the public sphere. In the paper the differing importance of objective and subjective factors in the market and non-market spheres of economy is substantiated: the market area is managed mainly by objective regularities, which reduce people’s subjective actions to a common denominator, whereas in the public sphere, on the contrary, the leading role is played by subjective notions of public interests, of benefit and mischief resulting from any intentions, of further development goals and ways. In the final part of the research the author presents his characteristic of the public sphere, which functions besides the market but with the latter demands in view, and therefore requires an in-depth study of its inherent regularities, including the state fulfilling its regulating role in market economy.
    VL  - 10
    IS  - 1
    ER  - 

    Copy | Download

Author Information
  • Centre for East European Studies, Russian Academy of Sciences Institute of Economy, Moscow, Russia

  • Sections