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The history of economics has often been described as the “history of economic thought.” In this essay, I explore an alternative perspective that builds on the French tradition of historical epistemology and treats economics as a social practice. I argue that a practice-based view provides a more philosophically robust conception of historiography and a richer field of investigation for historians of economics.

Purpose – We investigate the outcomes of public sector charity provision, which relies on income redistribution. Increasing the level of redistribution can result in an efficiency-equality tradeoff. We investigate whether the efficiency-equality tradeoff can be explained by lowered work incentives.

Methodology – The chapter uses the methodology of laboratory experiments. We remove the administration costs of redistribution to see if a significant source of the tradeoff can be explained by lower work incentives.

Findings – We find a significant efficiency-equality tradeoff between low- and high-tax groups explained by lowered work incentives. Labor supply decisions are motivated by strategic and cooperative preferences which vary the size of the tradeoff.

Limitations – Our analysis is limited to measuring the size and distribution of labor income. We discuss avenues such as allowing for crowding out and volunteerism, to further explore the impact of public sector charity provision.

Practical and social implications – Charity can be provided by the public, private, and independent sector. The public sector must redistribute income to provide charity, which leads to an efficiency-equality tradeoff. This calls for a reconsideration of increasing dependence on public sector charity provision.

Originality – The efficiency-equality tradeoff traditionally focuses on the labor supply response to taxation. We allow subjects to respond to how their taxes are being used as well. Subjects are also given feedback on whether they are net taxpayers into redistribution or net recipients from it.

In recent decades, Homer's millennia old story of Ulysses and the Sirens has become a popular and frequently used metaphor for illustrating the importance of institutions, not least constitutional ones (cf., e.g., Elster, 1985; Finn, 1991, 3ff; Elster, 2000; Zakaria, 2003, pp. 7 and 250). In one retelling the story goes like this:The Sirens were sea-nymphs who had the power of charming by their song all who heard them, so that the unhappy mariners were irresistibly impelled to cast themselves into the sea to their destruction. Circe directed Ulysses to fill the ears of his seamen with wax, so that they should not hear the strain; and to cause himself to be bound to the mast, and his people to be strictly enjoined, whatever he might say or do, by no means to release him till they should have passed the Sirens’ island.Ulysses obeyed these directions. He filled the ears of his people with wax, and suffered them to bind him with cords firmly to the mast. As they approached the Sirens’ island, the sea was calm, and over the waters came the notes of music so ravishing and attractive that Ulysses struggled to get loose, and by cries and signs to his people begged to be released; but they, obedient to his previous orders, sprang forward and bound him still faster. They held on their course, and the music grew fainter till it ceased to be heard, when with joy Ulysses gave his companions the signal to unseal their ears, and they relieved him from his bonds.¹

This study contributes to the debate about the sustainability of Chinese loans in Africa. The literature suggests that economic growth is among other crucial debt dynamic indicators for assessing debt sustainability in the economy. However, this hypothesis has hardly been tested in the current case due to data ambiguities on Chinese loans to Africa. Following China Africa Research Initiative (CARI)'s initiative to ameliorate these data challenge, this study utilises CARI's dataset in a GMM panel VAR framework for the period (2000–2018) to explore the dynamic relations between Africa's growth and Chinese loans. The methodology is theoretically underpinned by the exogenous growth models that consider physical capital accumulation in the form of savings as a prime growth stimulus in the economy's production function. Thus, Chinese loans are typically viewed as physical capital input that directly adds to Africa's physical capital accumulation. It was found that Africa's growth responds positively to Chinese loans but only in the short run. In the long run, the effects of shocks to Chinese loans on Africa's growth phase out despite the inclusion of merchandise trade as a productivity factor in the model. The findings suggest that Chinese loans can boost Africa's growth through physical capital accumulation. Nonetheless, for growth to continue in the long run, these loans ought to be effectively invested in productive economic sectors that can generate productivity-enhancing economic incentives and enough savings for repayment. This initiative should be complemented by reforming institutions involved in acquiring, investing and servicing Chinese loans.