Advancing the Frontiers of Heterodox Economics: Essays in Honor of Frederic S. Lee

edited by

Tae-Hee Jo and Zdravka Todorova

Routledge Advances in Heterodox Economics

ISBN: 978-0-415-73031-0 (hardback), 358 pages, $155. August 2015, Routledge. (20% Discount code: FLR40)

[Book details at the Routledge website] [Look inside]

This collection of essays honors the life and work of one of the most prominent and fervent heterodox economists, Frederic S. Lee, who has been at the heart of the heterodox economics movements for the past three decades. Authors in this book demonstrate that heterodox economic has transcended the criticism of mainstream economics and, more importantly, that constructive developments are in the making by way of cross-communications among various heterodox economics traditions.

Frederic S. Lee’s contributions to heterodox economics are centered on three themes: the making of a history and identity of heterodox economics, heterodox microeconomics, and the heterodox analysis of social provisioning. Part I addresses the importance of history, theory, research methods, and institutions in the making of the identity of heterodox economics as an alternative to mainstream economics. Part II delves into heterodox microeconomic theories—in particular, investment, pricing, competition, markets, and market governance—as foundations of heterodox macroeconomic analyses. Part III expands the analysis of the capitalist social provisioning process with an emphasis on its subsystems and their relationships over historical time. Part IV encapsulates the life and work of Frederic S. Lee.

Throughout his intellectual life Frederic S. Lee has shown to many that the development of heterodox economics is rendered possible by unselfish and ceaseless efforts to build both theory and institutions. Essays in this book attest that establishing an alternative critical theory to the status quo is not only possible but also serviceable to the majority of the population.


Foreword by Sheila C. Dow

Foreword by John F. Henry

Introduction: Frederic S. Lee’s contributions to heterodox economics
Tae-Hee Jo and Zdravka Todorova

Part I

Making History and Identity of Heterodox Economics by Developing Theory and Institutions

  1. Heterodox economics and the history of economic thought
    Carlo D’lppoliti and Alessandro Roncaglia
  2. The Association for Heterodox Economics: past, present, and future
    Andrew Mearman and Bruce Philp
  3. Heterodox economics, distribution and the class struggle
    Bruce Philp and Andrew Trigg
  4. Qualitative data and grounded theory in heterodox economic research: insights from three Australian studies
    Therese Jefferson

Part II

Heterodox Microeconomics and the Foundations of Heterodox Macroeconomics

  1. Heterodox microeconomics and heterodox microfoundations
    Tae-Hee Jo
  2. Beyond foundations: systemism in economic thinking
    Jakob Kapeller
  3. Post Keynesian investment and pricing theory: contributions of Alfred S. Eichner and Frederic S. Lee
    Ruslan Dzarasov
  4. Effects of competition upon profit margins from a Post Keynesian perspective
    Jordan Melmiès
  5. Inter- and intra-firm governance in heterodox microeconomics: the case of the US software industry
    Erik Dean
  6. Analyzing actually-existing markets
    Lynne Chester

Part III

Advancing the Heterodox Analysis of Social Provisioning

  1. Advancing heterodox economics in the tradition of the surplus approach
    Nuno Martins
  2. Consumption in the context of social provisioning and capitalism: beyond consumer choice and aggregates
    Zdravka Todorova
  3. Social provisioning process, market instability, and managed competition
    Tuna Baskoy
  4. The embedded state and social provisioning: insights from Norbert Elias
    Bruno Tinel
  5. Analogies we suffer by: the case of the state as a household
    Huáscar Pessali, Fabiano Dalto, and Ramón García Fernández
  6. Technological-institutional foundations of the social economy: a framework for the analysis of change in the social provisioning process
    Henning Shwardt

Part IV

The Heterodox Economics of Frederic S. Lee

  1. Predestined to heterodoxy or how I became a heterodox economist
    Frederic S. Lee
  2. Frederic Sterling Lee (1949-2014)
    John E. King
  3. In memoriam: Frederic S. Lee, 1949-2014
    Jan A. Kregel and L. Randall Wray
  4. The Bibliography of Frederic S. Lee’s Writings

Marx, Veblen, and the Foundations of Heterodox Economics: Essays in Honor of John F. Henry

edited by Tae-Hee Jo and Frederic S. Lee

Routledge Advances in Heterodox Economics

[Book details at Routledge website] [Look Inside the book]

ISBN: 978-1-13-879779-6 (hardback), 342 pages, $155. August 2015. (20% discount code: FLR40)

John F. Henry is an eminent economist who has made important contributions to heterodox economics drawing on Adam Smith, Karl Marx, Thorstein Veblen, and John Maynard Keynes. His historical approach offers radical insights into the evolution of ideas (ideologies and theories) giving rise to and/or induced by the changes in capitalist society. Essays collected in this festschrift not only evaluate John Henry’s contributions in connection to Marx’s and Veblen’s theories, but also apply them to the socio-economic issues in the 21st century.

In Part I leading heterodox economists in the traditions of Marxism, Post Keynesianism, and Institutionalism critically examine Marx’s and Veblen’s theoretical frameworks (and their connections to each other) that have become the foundations of heterodox economics. Chapters in Part II showcase alternative theoretical explanations inspired by Marx, Veblen, and Henry. Topics in this Part include financial crisis, financialization, capital accumulation, economics teaching, and the historical relationship between money and class society. Part III is devoted to John Henry’s heterodox economics encapsulated in his “farewell” lecture, interview, and bibliography.

Essays in this book, individually and collectively, make an important point that the history of economic thought (or historical analysis of economic theory and policy) is an integral part of developing heterodox economics as an alternative theoretical framework. Anyone who is troubled by the recurring failure of capitalism as well as mainstream economics will find this book well worth reading.

Introduction: Marx, Veblen, and Henry


Part I

Radical Ideas of Karl Marx and Thorstein Veblen

  1. The Marxian and Veblenesque elements in the way I do economics
  2. Karl Marx, Thorstein Veblen, and the global financial crisis
    J. E. KING
  3. The contemporary relevance of Karl Marx’s heterodox political economy
    P. A. O’HARA
  4. Veblen, Instincts and Exchange
  5. A further Veblenian articulation of a monetary theory of production
  6. Is conspicuous consumption a weak concept? An historical perspective on the French Revolution and capitalism
  7. Veblen on economic method: a critical note

Part II

Heterodox economics: alternative critical theory to the status quo

  1. The “illusion” or “paradigm blindness” of economics: ethical challenges to economic thought from the financial crisis
  2. Economics and history: why economists and policy makers need to understand the latter
  3. Speculative financial capitalism wacking out over an “impossible” profit rate: the infeasibility of a “usual” real average profit rate, considering fictitious capital, and its implications
  4. Shaping the social determinants of value through economic ghostmanagement: an institutionalist approach to capital accumulation
  5. The rise of money and class society: the contributions of John F. Henry

Part III

The heterodox economics of John F. Henry

  1. Property and the limits to democracy
  2. A conversation with John F. Henry
  3. The bibliography of John F. Henry’s writings

Las contribuciones de Frederic S. Lee a la economía heterodoxa

Tae-Hee Jo y Zdravka Todorova, “Las contribuciones de Frederic S. Lee a la economía heterodoxa,” Revista de Economía Crítica, 19, primer semestre 2015, pp. 215-230. [link to the article]

La comunidad de los economistas heterodoxos ha perdido a Fred Lee, uno de sus líderes más entusiastas y que estuvo en el centro del movimiento de la economía heterodoxa durante las últimas tres décadas. Este artículo describe el amplio espectro de las contribuciones que Fred Lee realizó a la economía heterodoxa, y se centra en sus aportaciones a la formación de la historia e identidad de la economía heterodoxa, a la teoría microeconómica heterodoxa, y al análisis del proceso de aprovisionamiento social. ¿Cuál es el significado de estas contribuciones para la economía heterodoxa? Fred Lee nos ha legado teorías heterodoxas, instituciones y buena voluntad que continuarán desarrollándose en el trabajo de aquellos economistas preocupados por establecer una teoría crítica alternativa al statu quo.

JEI: The Business Enterprise in the Age of Money Manager Capitalism

The Business Enterprise in the Age of Money Manager Capitalism,” with John F. Henry, Journal of Economic Issues, 49 (1): 23-46. March 2015.

Thorstein Veblen’s going concern theory of the business enterprise has been widely received by heterodox economists. Since Veblen’s era, the capitalist social provisioning process has evolved toward money manager capitalism in a dialectical fashion. At the heart of the transformation are changes in the behavior of the business enterprise. In this paper, we make a threefold argument. First, while the going concern theory of the business enterprise is still important in the account of the economy as a continuing process of social provisioning, since a viable economy requires continuing business over historical time, more and more of the economy is being directed toward financial concerns. Second, as a consequence, the social provisioning process becomes more unstable and people’s welfare becomes more vulnerable. Third, the concept of a going concern is, therefore, to be modified in order to put the business enterprise in the context of money manager capitalism.

Frederic S. Lee’s Contributions to Heterodox Economics

Jo, Tae-Hee and Todorova, Zdravka (2015) “Frederic S. Lee’s Contributions to Heterodox Economics.” MPRA Working Paper 62568; This paper is the Introduction to Advancing the Frontiers of Heterodox Economics: Essays in Honor of Frederic S. Lee. Edited by Tae-Hee Jo and Zdravka Todorova. London and New York: Routledge (forthcoming in 2015).

Obituary: Frederic S. Lee (1949-2014)

Frederic Sterling Lee passed away on October 23, 2014, just one month before his 65th birthday, after a brave battle against cancer. He was diagnosed with stage four lung cancer at the end of February. He, however, never stopped working for his students and for the community of heterodox economists until the end of his life, as he always did over the past 30 years of his academic career. The entire community of heterodox economists across the world is saddened by the passing of Fred Lee.

Fred Lee was born in 1949 in Nyack, NY and grew up in Virginia. His father, Sterling Lee, was a labor lawyer and his mother, Marion Burks Lee, was a politically active person. With this family background he was aware of progressive politics and civil and workers rights even in his early days. He went to Frostburg State College (Maryland, 1968-1972) and obtained a BA degree in history. While doing his undergraduate study, he was interested in philosophy and later in economics because he found that social questions in the 19th century were mainly examined by economists. After two years of working in Saudi Arabia (a supply clerk position with the Corp of Engineers in Riyadh), he returned to the United States and continued his study at Columbia University in New York City. In 1977 Fred Lee met Alfred S. Eichner who later became his “mentor, dissertation advisor, and a friend.” He once noted that the “discovery of Eichner” was “the most important in my academic career.” With Eichner’s encouragement and support, Fred Lee started his PhD study in economics at Rutgers University in 1978, where he was taught by Alfred Eichner, Paul Davidson, Jan Kregel, Nina Shapiro, and Alessandro Roncaglia, among others. After graduating from Rutgers University in 1983, he taught at University of California—Riverside (1981-1984), Roosevelt University (Chicago, 1984-1990), Staffordshire Polytechnic (Stoke-on-Trent, UK, 1990-1991), De Montfort University (Leicester, UK, 1991-2000), and the University of Missouri—Kansas City (2000-2014). [For his early life before 2000, see his short autobiography, “Predestine to Heterodoxy or How I Became a Heterodox Economist” at]

His contribution to heterodox economics and his influence on younger heterodox economists are enormous and invaluable. First of all, he will be remembered as the heterodox economist who endeavored to develop heterodox microeconomics that would completely replace neoclassical microeconomics. Through his magnum opusPost Keynesian Price Theory (1998) he shows that the neoclassical price mechanism does not exist in the real world, and that there are alternative-heterodox theory of price and pricing which can be drawn from the work of Gardiner C. Means, Michal Kalecki, and P.W.S Andrews and Oxford Economists’ Research Group. This means that the entire neoclassical microeconomic framework is incoherent and irrelevant and, hence, a new theoretical framework that explains how the capitalist economic system (or the social provisioning process) works needs to be developed. He was working on this grand project toward the end of his life.

He will also be remembered as a tireless organizer and institution builder who established the Association for Heterodox Economics (1999) and the Heterodox Economics Newsletter (2004). He also served a number of heterodox economics organizations and journals, including the editorship of the American Journal of Economics and Sociology (2009-2013). He believed that institution building is as important as theory building insofar as we are concerned with the continuation and reproduction of heterodox economics. Fred Lee’s commitment to heterodox economics is also demonstrated by his book, A History of Heterodox Economics: Challenging the Mainstream in the Twentieth Century (Routledge, 2009). This is the only book ever published that deals with the institutional history of heterodox economics from 1900 to 2006 in the US and UK. More importantly, the objective of the book is to show that not only heterodox economics did/does exist, but also it can continue only if heterodox economists develop alternative theories and build institutions in the face of the dominance of mainstream economics. In fact, it took over ten years for him to complete this book. Once I asked him why he spent so much time to write this history book and then he said: “Because someone had to do it.” I now understand that it is not just someone, but someone who has a clear vision, unflagging energy, and willingness to sacrifice oneself for a better future of heterodox economics.

Lastly, he will be remembered as an inspirational teacher and wonderful mentor who taught students how to do heterodox economics in a pluralistic, realistic, and integrative manner, and who cared about his students from the bottom of his heart. Although he did not have many students who wrote a PhD dissertation under his supervision, there are lots of young heterodox economists who are largely influenced by his work. This is evidenced by all the messages collected after his passing (see here) as well as a forthcoming festschrift, Advancing the Frontiers of Heterodox Economics: Essays in Honor of Frederic S. Lee (Routledge, 2015).

Right after he was told that he got terminal lung cancer, the first thing he told me was: “We need to establish a fund that helps heterodox doctoral students in heterodox doctoral programs.” As many of us remember, this is Fred Lee, the person who always cared about young heterodox economists—that is, the future of heterodox economics.

In closing, I’d like to quote Fred Lee’s last email to heterodox economists (which was sent to various mailing lists on October 2, 2014; he personally told me that this was his “last project”):

The 2015 Solidarity Forever Labor History Calendar is now available. It features Joe Hill. If you do not know who Joe Hill is, I suggest that you do a little bit of work and find out or better yet hum to yourself, “Would you have freedom from wage slavery, …” And if you think you know something about the 1% versus the 99% and do not know who Joe Hill is then I suggest checking out the song “Preacher and the Slave” on the internet or some other strange contraption that did not exist in 1911. In the inside back page you will find a picture of myself with Joe Hill’s ashes—this is about as close as you will get to any real hero of the working class whose life was indeed put on the line—he was executed by the capitalists in 1915.

You either walk the walk or you do not; and my career (along with my colleagues from around the world) has indeed walked the walk to ensure that heterodox programs exist and heterodox economists have jobs. And this has meant significant hardships for students and colleagues (not to mention loss of employment–see “A History of Heterodox Economics”) to critically study the mainstream theory that calls into question the argument that supports the 1%. And it also means that you have to go beyond the critical and develop an alternative that draws upon the different heterodox approaches.

Through the Heterodox Economics Association Booth at the ASSA 2015, 60 Joe Hill calendars will be provided free to anyone. In return, all that is asked is that you look at the literature in the booth, in particular the scholarship material for graduate students. It is not cheap to go to graduate school; and at times it appears that those who have obtained their PhD have no interest in helping those who would like to get a PhD–in this case, they are certainly not walking the walk nor caring about the community of heterodox economists in which they operate. Do something–give a damn. For more information about the Joe Hill calendar go to http://iwwhlf.org Information about the Frederic S. Lee Heterodox Economics Scholarship Fund can be found at:

Fred Lee is survived by his wife, Ruth, their daughter, Sally, and two granddaughters. A memorial service for Fred Lee will be held Saturday, November 8th, 1:00pm at the Ethical Society of St. Louis, 9001 Clayton Road, St. Louis, Missouri. His ashes will be scattered at a later date at the Haymarket Martyrs Monument in Chicago, IL. Condolences may be sent via Fred Lee’s website at and memorial contributions can be made to the Frederic S. Lee Heterodox Economics Scholarship Fund which is housed at the Kansas City Community Foundation. Donations can be made at

Tae-Hee Jo
SUNY Buffalo State

October 30, 2014

5th International Seminary of Heterodox Microeconomics

October 29-31, 2014. Faculty of Economics of the National Autonomous University of Mexico, Ciudad Universitaria campus | website

Theme: Competition, innovation investment and financial structure

The economic and financial crisis worldwide has led to a strong challenge to economic policy and economic theory behind it, however, the discussion and debate in the international academic community, requires a careful and thorough analysis of the economic theory fundamentals and microeconomic theory in particular. The overall theme of reflection in this seminar is Heterodox Microeconomics and in particular Competition, investment in innovation and financial structure.

The plurality gives rise to knowledge that transcends the monopoly of a partial view of the world and its workings, offers alternatives for the student and specialist economy can think and choose between different ways of understanding the economic process, one that considers most appropriate. The plurality in the content and teaching of microeconomics among other qualities can develop research capacity and knowledge of students who are training in our universities. In this 5th International Seminary Heterodox Microeconomics, we are looking to put on the table of discussion the monopoly of neoclassical microeconomics.

In the different faculties and schools of economics at the universities of Mexico and the world, academics and researchers are committed to reflection and processing our experience in teaching and research in microeconomics, which is expressed in a continuous review of the content and methods of teaching, this is the reason why we want to invite the community of scholars interested to contribute essays and papers the 5th International Seminary on Heterodox Microeconomics.