This paper aims to study the characteristics of
the principles of Karl William Kapp’s cumulative
causation. While Kapp’s cumulative causation
is strongly influenced by that of Gunnar
Myrdal, it is not a model that merely explains
disequilibrium or the “vicious circle” phenomena.
Kapp was always interested in constructing a
model that addresses issues arising from the
compartmentalization of modern sciences.
Therefore, his critique of mainstream economics
should be understood in this context.
Kapp argued that the approaches of mainstream
economics were misleading because they
isolated economic systems from non-economic
elements. According to him, the trend toward the
compartmentalization of mainstream economics
could be inhibited by employing a cumulativecausation
approach. Kapp’s institutional economics,
which integrates cumulative causation,
is an approach that refutes the atomistic views
of the world proposed by mainstream economics.
Through these atomistic views, individuals
regarded as eternal; however, Kapp’s approach
regards them as transient phenomena appearing
in holistic dynamic processes. Furthermore, his
approach shows that a human being is an existence
with a multi-level construction.
A human being is a “bio-cultural” existence
that grows physically and personally, incorporating
material and energy from nature, and culture
from the society. Some societies ignore the latent
ability of their members and attempt to limit
them to the mould of a particular culture. Kapp
described this aspect by means of principles of
cumulative causation.
JEL classification numbers: B 25, B 31, Q 50.
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