Blair Fix | York University (original) (raw)

Papers by Blair Fix

Real-world Economics Review, 2021

Although the determinants of income are complex, the results are surprisingly uniform. To a first... more Although the determinants of income are complex, the results are surprisingly uniform. To a first approximation, top incomes follow a power-law distribution, and the redistribution of income corresponds to a change in the power-law exponent. Given the messiness of the struggle for resources, why is the outcome so simple? This paper explores the idea that the (re)distribution of top incomes is uniform because it is shaped by a ubiquitous feature of social life, namely hierarchy. Using a model first developed by Herbert Simon and Harold Lydall, I show that hierarchy can explain the power-law distribution of top incomes, including how income gets redistributed as the rich get richer.

Using a combination of heterodox economics and biophysical analysis, this paper investigates the ... more Using a combination of heterodox economics and biophysical analysis, this paper investigates the relationship between economic distribution and the growth of material throughput. Empirical results show that the growth of “useful work” correlates with redistribution towards profit. Furthermore, increases in energy consumption are correlated with increases in the largest corporations’ share of total employment. These results are synthesized to form a new theory linking profit, social hierarchy, and growth.

Humanity’s most pressing need is to learn how to live within our planet’s boundaries — something ... more Humanity’s most pressing need is to learn how to live within our planet’s boundaries — something that likely means doing without economic growth. How, then, can we create a non-growth society that is both just and equitable? I attempt to address this question by looking at an aspect of sustainability (and equity) that is not often discussed: the growth of hierarchy. As societies consume more energy, they tend to become more hierarchical. At the same time, the growth of hierarchy also seems to be a key driver of income/resource inequality. In this essay, I review the evidence for the joint relation between energy, hierarchy and inequality. I then speculate about what it implies for achieving a sustainable and equitable future. Note: This essay was written for and supported by the Seoul Platform for Initiating Discourses on an Equitable and Resilient Society. Sustainability or bust For the past 200 years, humanity has conducted an unintended experiment. The (tacit) research question i...

EconStor Open Access Articles, 2019

This paper explores how the evolution of human sociality can help us understand how we distribute... more This paper explores how the evolution of human sociality can help us understand how we distribute resources. Using ideas from sociobiology, I argue that resource distribution is marked by a tension between two levels of natural selection. At the group level, selfless behavior is advantageous. But at the individual level, selfish behavior is advantageous. I explore how this tension affects the distribution of resources.

EconStor Preprints, 2019

Nowadays, it is commonplace to claim that the economy overuses our limited material and energy re... more Nowadays, it is commonplace to claim that the economy overuses our limited material and energy resources and that this overuse threatens both human society and the biosphere. Other than anti-science cranks, the only ones who seem to deny this claim are mainstream economists. In our view, though, this conventional condemnation of the economy is somewhat misleading. As we see it, the root of our ecological problems lies not in the ‘economy’, but in the hierarchical power structure of capitalism.

Although the determinants of income are complex, the results are surprisingly uniform. To a first... more Although the determinants of income are complex, the results are surprisingly uniform. To a first approximation, top incomes follow a power-law distribution, and the redistribution of income corresponds to a change in the power-law exponent. Given the messiness of the struggle for resources, why is the outcome so simple?This paper explores the idea that the (re)distribution of top incomes is uniform because it is shaped by a ubiquitous feature of social life, namely hierarchy. Using a model first developed by Herbert Simon and Harold Lydall, I show that hierarchy can explain the power-law distribution of top incomes, including how income gets redistributed as the rich get richer.

Neoclassical economists fundamentally misunderstand the role of natural resources in the economy.... more Neoclassical economists fundamentally misunderstand the role of natural resources in the economy. I discuss here the source of this misunderstanding, and the ways we can better understand the role of energy to human societies.

There is no consensus, in political economy, about the exact relationship between the biophysical... more There is no consensus, in political economy, about the exact relationship between the biophysical and the pecuniary spheres. This paper enters into the debate by asking the following question: how can a biophysical approach to political economy be used to gain insight into the complex interrelationship between the biophysical sphere of economic activity and its monetary image? After reviewing and critiquing land, labour, utlitarian, and energy theories of value, this paper abandons the search for a direct, causal connection (between the biophysical and the pecuniary) in favor of an impredicative, co-evolutionary approach. Using a synthesis of the work of Giampietro…

Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch ge... more Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public.

SpringerBriefs in Energy, 2014

Toward a Biophysical Growth Theory We've been. .. trained to think of economics as being about mo... more Toward a Biophysical Growth Theory We've been. .. trained to think of economics as being about money, and to some degree it is. But fundamentally it's about stuff. And if it's about stuff, why are we studying it as a social science? Why are we not, at least equally, studying it as a biophysical science? Charles Hall (quoted in Inman 2013) Having conducted an extensive investigation into the empirical realities of growth, we are now in a situation to make some important decisions. I argue that it is time to abandon neoclassical growth theory. Below, I review the basic problems with neoclassical theory. I then argue that a biophysical growth theory is needed and I present a set of "stylized facts" that such a theory must explain. I conclude by reviewing some of the basic reasons why such a theory is a timely endeavour. 6.1 The Problem with Neoclassical Growth Theory This book tested four implicit assumptions made by neoclassical growth theory: 1. Economic output can become decoupled from energy inputs. 2. Economic distribution is unrelated to growth. 3. Large institutions are not important for growth. 4. Labor force structure is not important for growth. In all cases, the empirical evidence directly contradicted these assumptions. For those who think that a scientific theory should be based on empirically grounded facts, this critique alone provides compelling reasons to abandon neoclassical growth theory. But while the specific arguments in this book are new, critiques of neoclassical assumptions are not. Indeed, voluminous literature exists that questions the veracity of neoclassical assumptions

SpringerBriefs in Energy, 2014

Evolutionary and Institutional Economics Review, 2021

According to neoclassical economics, the most efficient way to organize human activity is to use ... more According to neoclassical economics, the most efficient way to organize human activity is to use the free market. By stoking self interest, the theory claims, individuals can benefit society. This idea, however, conflicts with the evolutionary theory of multilevel selection, which proposes that rather than stoke individual self interest, successful groups must suppress it. Which theory better describes how human societies develop? I seek to answer this question by studying the opposite of the market: namely hierarchy. I find evidence that as human societies develop, they turn increasingly to hierarchical organization. Yet they do so, paradoxically, at the same time that the language of free markets becomes more common, and culture becomes more individualistic. This evidence, I argue, contradicts free-market theory, but only if we treat it as a scientific doctrine. If instead we treat free-market theory as an ideology, the pieces come together. Free-market thinking, I speculate, may stoke the formation of hierarchy by cloaking power in the language of 'freedom'.

Journal of Computational Social Science, 2020

This paper investigates a new approach to understanding personal and functional income distributi... more This paper investigates a new approach to understanding personal and functional income distribution. I propose that hierarchical power-the command of subordinates in a hierarchy-is what distinguishes the rich from the poor and capitalists from workers. Specifically, I hypothesize that individual income increases with hierarchical power, as does the share of individual income earned from capitalist sources. I test this idea using evidence from US CEOs, as well as a numerical model that extrapolates the CEO data. The results indicate that income tends to increase with hierarchical power, as does the capitalist composition of income. This suggests that hierarchical power may be a determinant of both personal and functional income.

Real-world Economics Review, 2021

Today, human capital theory dominates the study of personal income. But this has not always been ... more Today, human capital theory dominates the study of personal income. But this has not always been so. In this essay, I chart the rise of human capital theory, and compare it to the rise (and fall) of eugenics. The comparison, I argue, is an apt one. Eugenics and human capital theory both focus on isolated traits of individuals. By doing so, both theories neglect the social nature of human behavior.

Real-World Economics Review, 2019

Journal of Economic Issues, 2019

This article examines the relation between personal income and hierarchical power. In the context... more This article examines the relation between personal income and hierarchical power. In the context of a firm hierarchy, I define hierarchical power as the number of subordinates under an individual’s control. Using the available case-study evidence, I find that relative income within firms scales strongly with hierarchical power. I also find that hierarchical power affects income more strongly than any other factor for which data is available. I conclude that this is preliminary evidence for a hierarchical-power theory of personal income distribution.

Real-World Economics Review, 2019

The study of economic growth is central to macroeconomics. More than anything else, macroeconomis... more The study of economic growth is central to macroeconomics. More than anything else, macroeconomists are concerned with finding policies that encourage growth. And by “growth”, they mean the growth of real GDP. This measure has become so central to macroeconomics that few economists question its validity. Our intention here is to do just that. We argue that real GDP is a deeply flawed metric. It is presented as an objective measure of economic scale. But when we look under the surface, we find crippling subjectivity. Moreover, few economists seem to realize that real GDP is based on a non-existent quantum – utility. In light of these problems, it seems to us that much of macroeconomics needs to be rethought.

Real-world Economics Review, 2021

EconStor Open Access Articles, 2019

EconStor Preprints, 2019

Although the determinants of income are complex, the results are surprisingly uniform. To a first... more Although the determinants of income are complex, the results are surprisingly uniform. To a first approximation, top incomes follow a power-law distribution, and the redistribution of income corresponds to a change in the power-law exponent. Given the messiness of the struggle for resources, why is the outcome so simple?This paper explores the idea that the (re)distribution of top incomes is uniform because it is shaped by a ubiquitous feature of social life, namely hierarchy. Using a model first developed by Herbert Simon and Harold Lydall, I show that hierarchy can explain the power-law distribution of top incomes, including how income gets redistributed as the rich get richer.

SpringerBriefs in Energy, 2014

Evolutionary and Institutional Economics Review, 2021

Journal of Computational Social Science, 2020

Real-world Economics Review, 2021

Real-World Economics Review, 2019

Journal of Economic Issues, 2019

Real-World Economics Review, 2019

Due in no small part to the work of Thomas Piketty, the empirical study of income inequality has... more Due in no small part to the work of Thomas Piketty, the empirical study of income inequality has flourished in the last decade. But this plethora of new data has not led to a corresponding theoretical revolution. Why? The problem, I believe, is an unwillingness to question and test the basic assumptions on which current theory rests. Most theories of personal income distribution are deeply wedded to the assumption that income is proportional to productivity. However, this approach has a simple, but little discussed problem: income is distributed far more unequally than documented differentials in human labor productivity. But if not productivity, then what explains income? I propose that income is explained most strongly by social power, as manifested by one’s rank in an institutional hierarchy. Using a novel array of evidence, I show (for the first time) that there is a strong quantitative relation between income and hierarchical power. Moreover, I show that hierarchical power affects income more strongly than any other factor. I conclude that this is evidence for a power theory of personal income distribution.

Is economic growth a miracle of the free market? According to mainstream theory, growth is best e... more Is economic growth a miracle of the free market? According to mainstream theory, growth is best ensured through conditions of ‘perfect competition’. However, economic growth is tightly correlated with the concentration of power in the hands of large corporations. Why? The capital as power framework provides potential answers that turn mainstream theory on its head: growth seems to be intimately related to the formation of hierarchy.

Free markets are, according to neoclassical economic theory, the most efficient way of organizing... more Free markets are, according to neoclassical economic theory, the most efficient way of organizing human activity. The claim is that individuals can benefit society by acting only in their self interest. In contrast, the evolutionary theory of multilevel selection proposes that groups must suppress the self interest of individuals. They often do so, the evidence suggests, by using hierarchical organization. To test these conflicting theories , I investigate how the 'degree of hierarchy' in societies changes with industrial development. I find that as energy use increases, governments tend to get larger and the relative number of managers tends to grow. Using a numerical model, I infer from this evidence that societies tend to become more hierarchical as energy use grows. This result is inconsistent with the neoclassical theory that individual self-interest is what benefits society. But it is consistent with the theory of multilevel selection, in which groups suppress the self-interest of their members.

This article discusses the aggregation problem and its implications for ecological economics. The... more This article discusses the aggregation problem and its implications for ecological economics. The aggregation problem consists of a simple dilemma: when adding heterogeneous phenomena together, the observer must choose the unit of analysis. The dilemma is that this choice affects the resulting measurement. This means that aggregate measurements are dependent on one's goals, and on underlying theory. Using simple examples, this article shows how the aggrega-tion problem complicates tasks such as calculating indexes of aggregate quantity, and how it undermines attempts to find a singular metric for complex issues such as sustainability.

This paper proposes a new 'power theory' of personal income distribution. Contrary to the standar... more This paper proposes a new 'power theory' of personal income distribution. Contrary to the standard assumption that income is proportional to productivity, I hypothesize that income is most strongly determined by social power, as indicated by one's position within an institutional hierarchy. While many theorists have proposed a connection between personal income and power, this paper is the first to quantify this relation. I propose that power can be quantified in terms of the number of subordinates below one's position in a hierarchy. Using this definition, I find that relative income within firms scales strongly with hierarchical power. I also find that hierarchical power has a stronger effect on income than any other factor for which data is available. I conclude that this is evidence for a power theory of personal income distribution.

We talk to Blair Fix, a graduate student at York University in Canada, about his fascinating rese... more We talk to Blair Fix, a graduate student at York University in Canada, about his fascinating research examining energy and hierarchy and the relationship between hierarchy and personal income.

Research Note, Apr 2019

The study of economic growth is central to macroeconomics. More than anything else, macroecon-omi... more The study of economic growth is central to macroeconomics. More than anything else, macroecon-omists are concerned with finding policies that encourage growth. And by 'growth', they mean the growth of real GDP. This measure has become so central to macroeconomics that few economists question its validity. Our intention here is to do just that. We argue that real GDP is a deeply flawed metric. It is presented as an objective measure of economic scale. But when we look under the surface, we find crippling subjectivity. Moreover, few economists seem to realize that real GDP is based on a non-existent quantum-utility. In light of these problems, it seems to us that much of macroeconomics needs to be rethought.

Research Note, Apr 5, 2019

Real-World Economics Review, Jul 2019

The study of economic growth is central to macroeconomics. More than anything else, macroeconomis... more The study of economic growth is central to macroeconomics. More than anything else, macroeconomists are concerned with finding policies that encourage growth. And by ‘growth’, they mean the growth of real GDP. This measure has become so central to macroeconomics that few economists question its validity. Our intention here is to do just that. We argue that real GDP is a deeply flawed metric. It is presented as an objective measure of economic scale. But when we look under the surface, we find crippling subjectivity. Moreover, few economists seem to realize that real GDP is based on a non-existent quantum – utility. In light of these problems, it seems to us that much of macroeconomics needs to be rethought.