The essential work from the Nobel Prize-winning virtuoso of twentieth-century economics, translated to English for the first time.

Few scholars advanced the frontier of economic modeling more than French economist Maurice Allais. Allais’s contributions—beyond his famous Allais’s Paradox—earned him the Nobel Prize and drew comparisons to the works of Paul Samuelson and even some modern mathematical behavioral economists. 

Allais’s accomplishments, however, went largely unread by non-Francophone readers due to the challenge of their translation for publishers. The effects of this gap are immeasurable. As Paul Samuelson wrote, “Had Allais's earliest writings been in English, a whole generation of economic theory would have taken a different course.”

Economy and Interest is the milestone translation of Allais's most influential work, one whose staggering findings predate their accepted formulations by other famed economists decades later. In its sweep and technical virtuosity, Economy and Interest is certain to delight and challenge new generations of English-language readers.

The definitive new translation of Max Weber’s classic work of social theory—arguably the most important book by the foremost social theorist of the twentieth century.

Max Weber’s Economy and Society is the foundational text for the social sciences of the twentieth and twenty-first centuries, presenting a framework for understanding the relations among individual action, social action, economic action, and economic institutions. It also provides a classification of political forms based upon “systems of rule” and “rulership” that has shaped debate about the nature and role of charisma, tradition, legal authority, and bureaucracy.

Keith Tribe’s major new translation presents Economy and Society as it stood when Weber died in June 1920, with three complete chapters and a fragment of a fourth. One of the English-speaking world’s leading experts on Weber’s thought, Tribe has produced a uniquely clear and faithful translation that balances accuracy with readability. He adds to this a substantial introduction and commentary that reflect the new Weber scholarship of the past few decades.

This new edition will become the definitive translation of one of the few indisputably great intellectual works of the past 150 years.

America’s commitment to public schooling once seemed unshakable. But today the movement to privatize K–12 education is stronger than ever. Samuel E. Abrams examines the rise of market forces in public education and reveals how a commercial mindset has taken over.


“[An] outstanding book.”
—Carol Burris, Washington Post

“Given the near-complete absence of public information and debate about the stealth effort to privatize public schools, this is the right time for the appearance of [this book]. Samuel E. Abrams, a veteran teacher and administrator, has written an elegant analysis of the workings of market forces in education.”
—Diane Ravitch, New York Review of Books

“Education and the Commercial Mindset provides the most detailed and comprehensive analysis of the school privatization movement to date. Students of American education will learn a great deal from it.”
—Leo Casey, Dissent

After World War II, and particularly in the early 1950s, Brazil’s major industrial region suffered a chronic electric power shortage resulting from the inadequate expansion of the Brazilian Traction, Light, and Power Company, the most important utility in the country. “The Light,” as it is called in Brazil, was reluctant to commit itself to continuing investment because of the impossibility of securing a satisfactory price for its product. The intractability of the rate problem, and the consequent insufficiency of supply, stemmed primarily from the foreign ownership of the company. The Light was the classic case of a foreign utility enjoying monopoly privileges to supply a public service. Proposed rate increases, construed as predatory by the public and the host government, met with strong popular resistance.

Throughout this period of stalemate, however, power production grew at a pace that was high by any standards. This impressive growth was to some extent the result of the government’s entry into the power sector as producer, coexisting with the foreign utility. State-controlled companies were gradually taking over the function of power generation while the Light began to recede into distribution, an activity more suited to its reluctance to make heavy financial commitments.

Judith Tendler, taking as her point of departure the different technological and administrative characteristics of power generation and distribution, illustrates how a modus vivendi was finally established which allowed the industry as a whole to expand in spite of strong antagonism between the private and public sectors. In this topical case study, the author sharpens our vision of the development scene by pointing up opportunities for progress that are embedded in seemingly trivial properties of technology.

China is emerging as a truly global economic and political power. China’s impact on Latin America and the Caribbean region is mixed, however—fostering a trade market for some countries, but creating competition for others.

This pioneering volume, produced by the Inter-American Development Bank’s Integration and Regional Programs Department and Research Department, provides a comprehensive overview of China’s economic policy and performance over recent decades and contrasts them with the Latin American experience. What are the underlying factors behind China’s competitive edge? What are the strategic implications of China’s rise for growth and development in Latin America? These questions open new avenues for thinking about revitalizing development strategies in Latin America in the face of China’s successful development and reduction of poverty. This insightful report is a must-read for analysts, policymakers, and development practitioners, not only in Latin America and the Caribbean, but wherever China’s presence is being felt.

The Emergence of China is a copublication of the David Rockefeller Center for Latin American Studies and the Inter-American Development Bank.

The first history of the involvement of American business in direct foreign investment explores a number of pertinent questions: What was the genesis of U.S. business interests in overseas markets? What perspectives guided the financial and social policies of the pioneering companies? In what way did the activities of American business abroad influence U.S. foreign policy?

Mira Wilkins recounts the histories of early foreign investment by such familiar companies as Singer, United Fruit, Edison, American Smelting and Refining, Anaconda Copper, American Telephone, and International Harvester. Refuting a well-established myth, she demonstrates that early American foreign investment was not confined to the extractive industries and utilities, and shows that, by 1914, while America remained a debtor nation in international accounts, a large number of U.S. multinational manufacturing corporations had already come into existence. Indeed, the percentage of the 1914 gross national product attributed to direct foreign investment equals that percentage of the 1966 GNP.

Though wholly self-contained, this works joins with the author’s subsequent volume, The Maturing of Multinational Enterprise: American Business Abroad from 1914 to 1970, to form the first overall history of American business abroad from our earliest times to the late twentieth century.

Small business has captured the imagination of both the popular press and politicians. The tradition that has created sympathy for the small entrepreneur has been strengthened in recent years by images of small firms as dynamic, growing, and flexible and of large firms as struggling, outdated, and intractable in the face of changing competitive environments. There is, it appears, an added fervor for America’s support of “the little guy.”

Employers Large and Small draws on existing data and new research to create a more complete picture of the roles of large and small employers, challenging much of the conventional wisdom. It argues that the oft-cited achievement of small firms in generating new jobs is primarily a reflection of the fact that industries in which the typical firm is small have grown rapidly in recent years.

The authors show that there are striking differences between large and small employers—that in fact large employers pay higher wages, offer better fringe benefits, and on average offer a more attractive package of working conditions and compensation. These differences reflect real challenges faced by small firms: they pay more for their nonlabor inputs and for many fringe benefits if they choose to offer them.

Employers Large and Small also goes beyond the workplace, examining the role of large and small employers in politics. Despite the typical portrayal of small business as the underdog in policy disputes, the political resources of small employers are substantial. The PAC contributions of small business, for example, are as large as those of labor unions and nearly two-thirds those of big business.

The authors show that the economic and political differences between large and small employers are sizable, are significant influences in the working lives of Americans, and are at odds with current policy assumptions.

The safety of the work place is now a highly visible public issue. Many are calling for tighter regulation to reduce worker risk, while others feel government intervention is ineffective and costly. Here Kip Viscusi explores how well markets for hazardous jobs actually work. According to classical economics, other things being equal, a worker will demand more pay for a hazardous job than a safe one. However, this assumes that job related hazards are known, when often they are not. Using recent advances in the economics of information, Viscusi develops a theory of individual responses to job hazards under conditions of uncertainty.

His assumptions are that hazards are uncertain events and that learning about them is a process that takes place over time. He then employs this analysis to study the performance of job markets in matching persons and jobs and in compensating persons for exposure to hazards. Finally he tests his adaptive model of the decision to quit and finds substantial evidence that risks are indeed reflected in wage differentials and quit behavior.

“An extraordinary work of intellectual history as well as a scholarly tour de force, a bracing polemic, and a work of Christian prophecy…McCarraher challenges more than 200 years of post-Enlightenment assumptions about the way we live and work.”
—The Observer

At least since Max Weber, capitalism has been understood as part of the “disenchantment” of the world, stripping material objects and social relations of their mystery and magic. In this magisterial work, Eugene McCarraher challenges this conventional view. Capitalism, he argues, is full of sacrament, whether one is prepared to acknowledge it or not. First flowering in the fields and factories of England and brought to America by Puritans and evangelicals, whose doctrine made ample room for industry and profit, capitalism has become so thoroughly enmeshed in the fabric of our society that our faith in “the market” has become sacrosanct.

Informed by cultural history and theology as well as management theory, The Enchantments of Mammon looks to nineteenth-century Romantics, whose vision of labor combined reason, creativity, and mutual aid, for salvation. In this impassioned challenge to some of our most firmly held assumptions, McCarraher argues that capitalism has hijacked our intrinsic longing for divinity—and urges us to break its hold on our souls.

“A majestic achievement…It is a work of great moral and spiritual intelligence, and one that invites contemplation about things we can’t afford not to care about deeply.”
—Commonweal

“More brilliant, more capacious, and more entertaining, page by page, than his most ardent fans dared hope. The magnitude of his accomplishment—an account of American capitalism as a religion…will stun even skeptical readers.”
—Christian Century

The problem this book is concerned with is the compulsory apprenticeship of seven years required by the Statute of Artificers of 1563 for entry to existing crafts and retail trades. This statute was the most comprehensive expression of the internal policy of English mercantilism, and it initiated national regulation of apprenticeship that was uniform for town and country.

As a result of her penetrating study, Margaret Gay Davies establishes the predominance of private agencies and interests over public ones in enforcement, especially in the case of the common informer—accepted during the Elizabethan and Stuart periods as a normal and necessary instrument. Davies shows the consistent inattention of county authorities and of the central government to the apprenticeship requirements of the Act of 1563, central though these were to internal regulation of economic life.

Economists dream of equilibrium. It’s time to wake up.

In mainstream economics, markets are ideal if competition is perfect. When supply balances demand, economic maturity is orderly and disturbed only by shocks. These ideas are rooted in doctrines going back thousands of years yet, as James K. Galbraith and Jing Chen show, they contradict the foundations of our scientific understanding of the physical and biological worlds.

Entropy Economics discards the conventions of equilibrium and presents a new basis for thinking about economic issues, one rooted in life processes—an unequal world of unceasing change in which boundaries, plans, and regulations are essential. Galbraith and Chen’s theory of value is based on scarcity, and it accounts for the power of monopoly. Their theory of production covers increasing and decreasing returns, uncertainty, fixed investments over time, and the impact of rising resource costs. Together, their models illuminate key problems such as trade, finance, energy, climate, conflict, and demography.

Entropy Economics is a thrilling framework for understanding the world as it is and will be keenly relevant to the economic challenges of a world threatened with disorder.

Malaysia interests development practitioners for many reasons, not least because of its remarkably rich natural environment. Environment and Development in a Resource-Rich Economy provides an invaluable analysis of major natural resource and environmental policy issues in the country during the 1970s and 1980s--a period of profound socioeconomic changes, rapid depletion of natural resources, and the emergence of serious air and water pollution problems.

What is path-breaking about this book is its emphasis on economics as a source of concepts and methods for analyzing natural resource and environmental issues and policy responses. The authors' access to unpublished data and key decision makers makes this account of extensive, field-based research an essential reference for policy makers and researchers concerned about environmental and natural resource management--both in Malaysia and throughout the globe. The book should be of particular interest for students who hope to understand more thoroughly the economic underpinnings of natural resource and environmental management policy.

John Roemer points out that there are two views of equality of opportunity that are widely held today. The first, which he calls the nondiscrimination principle, states that in the competition for positions in society, individuals should be judged only on attributes relevant to the performance of the duties of the position in question. Attributes such as race or sex should not be taken into account. The second states that society should do what it can to level the playing field among persons who compete for positions, especially during their formative years, so that all those who have the relevant potential attributes can be considered.

Common to both positions is that at some point the principle of equal opportunity holds individuals accountable for achievements of particular objectives, whether they be education, employment, health, or income. Roemer argues that there is consequently a "before" and an "after" in the notion of equality of opportunity: before the competition starts, opportunities must be equalized, by social intervention if need be; but after it begins, individuals are on their own. The different views of equal opportunity should be judged according to where they place the starting gate which separates "before" from "after." Roemer works out in a precise way how to determine the location of the starting gate in the different views.

Even in impoverished countries lacking material and human resources, P. T. Bauer argues, economic growth is possible under the right conditions. These include a certain amount of thrift and enterprise among the people, social mores and traditions which sustain them, and a firm but limited government which permits market forces to work. Challenging many views about development that are widely held, Bauer takes on squarely the notion that egalitarianism is an appropriate goal. He goes on to argue that the population explosion of less-developed countries has on the whole been a voluntary phenomenon and that each new generation has lived better than its forebears. He also critically examines the notion that the policies and practices of Western nations have been responsible for third world poverty. In a major chapter, he reviews the rationalizations for foreign aid and finds them weak; while in another he shows that powerful political clienteles have developed in the Western nations supporting the foreign aid process and probably benefiting more from it than the alleged recipients. Another chapter explores the link between the issue of Special Drawing Rights by the International Monetary Fund on the one hand and the aid process on the other.

Throughout the book, Bauer carefully examines the evidence and the light it throws on the propositions of development. Although the results of his analysis contradict the conventional wisdom of development economics, anyone who is seriously concerned with the subject must take them into account.

These three elegant essays develop principles central to the understanding of the diverse ways in which imperfect information affects the distribution of resources, incentives, and the evaluation of economic policy. The first concerns the special role that information plays in the allocation process when it is possible to improve accuracy through private investment. The common practice of hiring “experts” whose information is presumably much better than their clients' is analyzed. Issues of cooperative behavior when potential group members possess diverse pieces of information are addressed. Emphasis is placed on the adaptation of the “core” concept from game theory to the resource allocation model with differential information.

The second essay deals with the extent to which agents can influence the random events they face. This is known as moral hazard, and in its presence there is a potential inefficiency in the economic system. Two special models are studied: the role of moral hazard in a monetary economy, and the role of an outside adjudicatory agency that has the power to enforce fines and compensation.

The final essay discusses the problem of certainty equivalence in economic policy. Conditions under which a full stochastic optimization can be calculated by solving a related, much simpler “certainty equivalence” problem are developed. The reduction in the complexity of calculation involved is very great compared with the potential loss of efficiency.

Piderit explores the failures of mainstream economics and proposes an alternative grounded in natural law. His assessment is grounded in the Christian higher law tradition which assumes that objective standards known to human reason should govern society and individuals.

This book demonstrates both the reasonableness of a distinguished ethical tradition and its capacity to address a wide range of ethical issues, economic as well as personal and social. Piderit emphasizes that natural law theory underlies the U.S. Constitution and informs Catholic, Protestant, and Jewish worship today.

For those who undergo it, infertility treatment is costly, time-consuming, invasive, and emotionally and physically arduous, yet technology remains the focus of most public discussion of the topic. Drawing on concepts from medical ethics, feminist theory, and Roman Catholic social teaching, Maura A. Ryan analyzes the economic, ethical, theological, and political dimensions of assisted reproduction.

Taking seriously the experience of infertility as a crisis of the self, the spirit, and the body, Ryan argues for the place of reproductive technologies within a temperate, affordable, sustainable, and just health care system. She contends that only by ceasing to treat assisted reproduction as a consumer product can meaningful questions about medical appropriateness and social responsibility be raised. She places infertility treatments within broader commitments to the common good, thereby understanding reproductive rights as an inherently social, rather than individual, issue. Arguing for some limits on access to reproductive technology, Ryan considers ways to assess the importance of assisted reproduction against other social and medical prerogatives and where to draw the line in promoting fertility. Finally, Ryan articulates the need for a compassionate spirituality within faith communities that will nurture those who are infertile.

Almost everyone would like to see the enactment of sound, practical measures to help disadvantaged people get off welfare and find jobs at decent wages, and over the past quarter-century federal and state governments have struggled to develop just such programs. How do we know whether they are having the hoped-for effect? How do we know whether these vast outlays of money are helping the people they are designed to reach?

All welfare and training programs have been subject to professional evaluations, including social experiments and demonstrations designed to test new ideas. This book reviews what we have discovered from past assessments and suggests how welfare and training programs should be planned for the 1990s. The authors of this volume, each a recognized expert in the evaluation of social programs, do more than summarize what we have learned so far. They clarify why the issue of the proper conduct and interpretation of evaluations has itself been a subject of continuing controversy. In part, the problem is organizational, requiring the integrated efforts of social scientists, public officials, and the professionals who execute evaluations. In addition, there is a dispute about scientific method: should evaluators try to understand the complex social processes that make programs succeed (or fail), or should they focus on inputs and outputs, treating the programs themselves as “black boxes” whose machinery remains hidden?

Evaluating Welfare and Training Programs will be important for policy researchers and evaluation professionals, social scientists concerned with evaluation methods, public officials working in social policy, and students of public policy, economics, and social work.

This book contains the most sustained and serious attack on mainstream, neoclassical economics in more than forty years. Richard R. Nelson and Sidney G. Winter focus their critique on the basic question of how firms and industries change overtime. They marshal significant objections to the fundamental neoclassical assumptions of profit maximization and market equilibrium, which they find ineffective in the analysis of technological innovation and the dynamics of competition among firms.

To replace these assumptions, they borrow from biology the concept of natural selection to construct a precise and detailed evolutionary theory of business behavior. They grant that films are motivated by profit and engage in search for ways of improving profits, but they do not consider them to be profit maximizing. Likewise, they emphasize the tendency for the more profitable firms to drive the less profitable ones out of business, but they do not focus their analysis on hypothetical states of industry equilibrium.

The results of their new paradigm and analytical framework are impressive. Not only have they been able to develop more coherent and powerful models of competitive firm dynamics under conditions of growth and technological change, but their approach is compatible with findings in psychology and other social sciences. Finally, their work has important implications for welfare economics and for government policy toward industry.

Executives today encounter social, psychological, and technical problems undreamed of by their predecessors. To help meet these challenges, Harry Levinson has written a thorough and timely revision of his acknowledged classic, The Exceptional Executive.

In Executive the author has added new material emphasizing the need for executive flexibility the ability to work with multiple constituencies, to mitigate tensions between middle and top management, to comprehend the social context within which business operates and to understand the needs of women and minorities. He has also added fourteen case studies that illuminate these major themes and problems.

A quiet revolution came to corporate America during the late 1980s and early 1990s. Large shareholders—pension funds, insurance companies, money manages, and commercial banks—exercised new-found muscle, pressuring senior managers to improve disappointing financial results by reshaping their organization. Michael Useem reveals how those investor pressures have transformed the inside structures of many corporations, better aligning them with shareholder interest.

Useem draws on numerous sources, including interviews with senior managers and intensive studies of seven large corporations representing a range of restructuring experiences and industries—including pharmaceuticals, transportation, chemicals, retailing, electronics, and financial services. He shows that organizational changes have affected many areas of corporate life: headquarters staffs have been reduced authority has filtered down to operating units, and compensation has become more closely tied to performance. Change also extends to corporate governance, where managers have fought back by seeking legal safeguards against takeovers and by staggering board terms. They’ve also put significant resources into building more effective relations with shareholders.

As Useem demonstrates, this revolution has reached beyond the corporation, influencing American politics and law. As increasing ownership concentration has caused companies to focus more attention on shareholders, corporate political agendas have shifted from fighting government regulation to resisting shareholder intrusion.

An innovator in contemporary thought on economic and political development looks here at decline rather than growth. Albert O. Hirschman makes a basic distinction between alternative ways of reacting to deterioration in business firms and, in general, to dissatisfaction with organizations: one, “exit,” is for the member to quit the organization or for the customer to switch to the competing product, and the other, “voice,” is for members or customers to agitate and exert influence for change “from within.” The efficiency of the competitive mechanism, with its total reliance on exit, is questioned for certain important situations. As exit often undercuts voice while being unable to counteract decline, loyalty is seen in the function of retarding exit and of permitting voice to play its proper role.

The interplay of the three concepts turns out to illuminate a wide range of economic, social, and political phenomena. As the author states in the preface, “having found my own unifying way of looking at issues as diverse as competition and the two-party system, divorce and the American character, black power and the failure of ‘unhappy’ top officials to resign over Vietnam, I decided to let myself go a little.”

The next two decades will mark a new phase in the demographic transition of the United States as baby boomers become eligible for Social Security and Medicare. Drawing on evidence from the United States and other nations, Explorations in the Economics of Aging yields important new findings on how economic decisions by households and policy choices by governments will influence the effects of this demographic shift. It explores topics such as the implications of differential mortality rates by income on Social Security, the link between cognition and economic outcomes, and scale variations in self-reported work disability. This volume will be an important reference for economists and policymakers alike.

Soaring income inequality and unemployment, expanding populations of the displaced and imprisoned, accelerating destruction of land and water bodies: today’s socioeconomic and environmental dislocations cannot be fully understood in the usual terms of poverty and injustice, according to Saskia Sassen. They are more accurately understood as a type of expulsion—from professional livelihood, from living space, even from the very biosphere that makes life possible.

This hard-headed critique updates our understanding of economics for the twenty-first century, exposing a system with devastating consequences even for those who think they are not vulnerable. From finance to mining, the complex types of knowledge and technology we have come to admire are used too often in ways that produce elementary brutalities. These have evolved into predatory formations—assemblages of knowledge, interests, and outcomes that go beyond a firm’s or an individual’s or a government’s project.

Sassen draws surprising connections to illuminate the systemic logic of these expulsions. The sophisticated knowledge that created today’s financial “instruments” is paralleled by the engineering expertise that enables exploitation of the environment, and by the legal expertise that allows the world’s have-nations to acquire vast stretches of territory from the have-nots. Expulsions lays bare the extent to which the sheer complexity of the global economy makes it hard to trace lines of responsibility for the displacements, evictions, and eradications it produces—and equally hard for those who benefit from the system to feel responsible for its depredations.