what is economic history?
study how people have provided for themselves over ages
focus on economic choices -> how are needs and preferences socially determined and fulfilled
scope of action is limited by path-dependecy
interplay between ‘percieved’ needs and resources
how and why have capacity and organization of economy changed over time
what drives economic history/change in long run?
1) factors of production:
->land, labour, capital/investment
- also tools for producing as embodied capital, saving as postponed consumption
-> works well for understanding present ort short term -> static economy
-> additon leads to growth
but usually not static ->
-> technology/organization/knowledge/human capital
-> formal and informal institutions
-> path dependecy: material and ideas/ideological structures create constraints
-> there is no general theory of economic change -> weighting different factors
Schön model for Sweden: cycles and crises
Structural Cycle -> entails two consruction cycles, lasts 40-50 years
- Construction cycle: 15-25 years
a. Structural crisis -> leads to renewal: new development blocks
-regionally concentrated
-large imbalances
-higher share of investments
-bull market, inflationary pressure
b. Transformation
-short rationalization
-financial crises - Construction cycle: 15-25 years
a. Rationlaization:
-Culmination
-Stabilization, spread of renewal
-rising wage contribution, squeezed profits
-modernization of everyday life
-stabilisation of monetary value/deflation
b. structural crisis:
-long rationalization
-economies of scale, expanded markets, increased competition
transformation vs rationalization
Period of transformation -> investments higher than wages
Period of rationalization = wages higher than investments
