Good post.  (I imagine this is not entirely inconsistent with what Jim said
since even many of the later "Long Cycle" theorists have an unabashedly
empirical and ex post flavor.)

But I think it would be useful to distinguish "Long Cycle" from "Long Wave"
(really more like long run trends).  For Kondratieff, the long cycle
accelerator theorists and other others of this type (endogenous, up and
down as you point out) -- for them there is a true cycle.  For  Marx
(Capital Vol III Part III), Mandel, Shaikh etc there is a "falling rate of
profit" - a sort of one half of a cycle - i.e. a constant undertow against
which capitalism must struggle through innovation and/or capital
destruction.  One could call this a half-cycle (endogenous) and reversing
it requires an exogenous always-uncertain boost (indeed this is the way
Mandel describes it).  But I think this is better described as two
counter-posing long run trends.  Innovation or capital destruction are not
exogenous to the process of capitalism and thinking like this more reflects
narrow "economics" rather than "social theory".

Any references for the Dutch theorists you speak of?

But the original query sounded like a literature request.  A standard
Marxist critique of Kondratieff is perhaps Mandel 'Late Capitalism' Ch 4
and Shaikh  'An Introduction to the History of Crisis Theories' (1978, I
think on his web site) or Fred Moseley's work (on his web site).  A left
'neo' or non marxist critique of Long Wave Theory might be an empirical
paper by Ed Wolff in the Cambridge Journal of Economics, July 2003 (I can't
think of more theoretical critiques at this point).


Paul

At 11:09 PM 12/7/2004 -0800, you wrote:
I think it is a little more complex than that.  There are two or perhaps
three basic theories of long 'waves'.  Initially, in the work of
Kondratieff, they were empiricist being based on long period analysis of
commodity price movements.

But later economists, particular a school of Dutch economists, began to
advance alternative theories to explain what appears to be 45-60
year  fluctuations in economic activity --
approximately 25 years of robust expansion followed by a similar period
of stagnation and weak economic performance. There was no strict
periodicity and the major debate began as to whether there was any
endogenous causes for the upturns and downturns or whether (particularly
the upturns) were exogenous.  Within the endogenous school there were
those who thought the long waves were indeed endogenous cycles caused by
such things as the capital life of infrastructure (an endogenous
accelerator).  Others suggested that it was major technological changes
in infrastructure (steam engine, railways, internal
combustion/electricity, automobile/aircraft, electronics) based on a
Schumpeterian kind of model. Others suggest a sort of
invention/innovation cycle where a steady increase in invention
eventually produced a critical mass for major economic innovation -- the
so-called septic tank model. All these groups of theories were based on
sinisoidal wave where turning points were endogenously generated
although the Schumpeterian model could also be interpreted as a
sigmoidal wave where each expansion was caused by some exogenous event
or events which had no specific   periodicity.

Perhaps the most interesting is that associated with the late Ernst Mendel
who argued
that the peak and subsequent decline was associated with the falling
rate of profit while the upturns were exogenous in the sense that they
were not generated by economic forces but by political forces resulting
in wars that destroyed capital and set off a new wave of accumulation.
Finally we have the long wave hypotheses suggested by the French
regulation school and the US Social Structures of Accumulation school.
In both cases institutional change was an integral part in the wave like
motion.

Paul Phillips

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