The Status of Economics, Misc

The present essay aims to account for F.A. Hayek's oft-noted 'turn' away from technical economics to concerns of a more philosophical nature. In particular, the paper seeks an explanatory principle that reconciles various elements of both continuity and discontinuity in Hayek's intellectual development, especially with respect to the evolution of his arguments concerning economic fluctuations. The essay uncovers such an explanatory principle in Hayek's own methodology of sciences of complex phenomena. According to this principle, an inquirer who confronts phenomena too (...) complex for adequate explanation on the basis of current knowledge must move to a more general, albeit less testable, explanation. This is precisely what occurred in the evolution of Hayek's thought concerning trade cycles. The concluding section considers the implications of the argument for the extensive secondary literature on Hayek's 'transformation'. (shrink)

In economic methodology, a complete turn to practice is hampered by a broadly shared normative stance towards practice. The root of this normativism is Platonism. Platonism presupposes in essence a...

The papers in this special symposium issue of the Journal of Economic Methodology advance a variety of perspectives on the current state and possible future development of economic methodology and...

This contribution considers how economic methodology and the philosophy of economics have evolved in the light of real experience in the economy. Philosophical and methodological discourse about ec...

Although the philosophy of economics has thrived during periods of crisis, it is by no means clear that it will continue to do so. Have philosophers of economics wasted important opportunities duri...

This essay offers a history of the development of philosophy of economics from the 1830s until today, with a personal perspective on the developments of the last four decades. It argues that change...

This paper provides metaphilosophical reflections on economic methodology by way of discussing the ‘Helsinki approach’. This approach combines the study of the practice of economics with an endeavo...

We develop an account of how mutually inconsistent models of the same target system can provide coherent information about the system. Our account makes use of ideas from the debate surrounding rob...

The paper sketches a story about how and why the field of economic methodology / philosophy of economics emerged, and how it has evolved intellectually and ins...

Before reading two recent books of which David Colander is first author, I had thought of him as a unique gadfly who has been the best promoter of three loosely connected strands of work. He has do...

Even though one of the founding aspirations of our field was to foster mutually beneficial exchanges between economics and philosophy, economists never paid much attention to our work. Now that pra...

In order to ensure stable functioning and development of the enterprise, they evaluate the effectiveness of economic activity. An effective tool for assessing economic activity in modern conditions is economic diagnostics, which allows you to analyze the main indicators of the enterprise, to explore the factors that led to the change in the relevant results and adversely affected the activities of the enterprise. Agricultural enterprises also need such methodological tools for economic diagnostics. However, the existing tools for assessing the effectiveness (...) of economic activity does not allow for a comprehensive assessment of indicators. In addition, the management system of agricultural enterprises raises the requirements for providing a more effective and justified system of evaluating indicators using economic diagnostics. (shrink)

This paper starts with an evaluation of three common arguments against pluralism in economics: the claim that economics is already pluralist, the argument that if there was the need for gre...

The books’ goal is to answer the question: Do the weaknesses of value-free economics imply the need for a paradigm shift? The author synthesizes criticisms from different perspectives (descriptive and methodological). Special attention is paid to choices over time, because in this area value-free economics has the most problems. In that context, the enriched concept of multiple self is proposed and investigated. However, it is not enough to present the criticisms towards value-free economics. For scientists, a bad paradigm is better (...) than no paradigm. Therefore, the author considers whether value-based economics with normative approaches such as economics of happiness, capability approach, libertarian paternalism, and the concept of multiple self can be the alternative paradigm for value-free economics. This book is essential reading to everyone interested in the current state of economics as a discipline. (shrink)

Depuis Gintis est un économiste senior et j’ai lu certains de ses livres précédents avec intérêt, je m’attendais à un peu plus de perspicacité dans le comportement. Malheureusement, il fait les mains mortes de la sélection de groupe et la phénoménologie dans les pièces maîtresses de ses théories du comportement, et cela invalide en grande partie le travail. Pire encore, puisqu’il montre un si mauvais jugement ici, il remet en question tout son travail précédent. La tentative de ressusciter la sélection (...) de groupe par ses amis à Harvard, Nowak et Wilson, il y a quelques années, c’était l’un des principaux scandales en biologie au cours de la dernière décennie, et j’ai raconté la triste histoire dans mon article 'Altruism, Jesus and the End of the World-how the Templeton Foundation bought a Harvard Professorship and attacked Evolution, Rationality and Civilization -- A review of E.O. Wilson 'The Social Conquest of Earth' (2012) et Nowak and Highfield 'SuperCooperators' (2012).' Contrairement à Nowak, Gintis ne semble pas être motivé par le fanatisme religieux, mais par le fort désir de générer une alternative aux sombres réalités de la nature humaine, facilitée par le manque (quasi universel) de compréhension de la biologie humaine fondamentale et le slateisme vierge des scientifiques comportementaux, d’autres universitaires et du grand public. Gintis attaque à juste titre (comme il l’a fait à maintes reprises) les économistes, les sociologues et d’autres scientifiques du comportement pour ne pas avoir un cadre cohérent pour décrire le comportement. Bien sûr, le cadre nécessaire pour comprendre le comportement est évolutif. Malheureusement, il ne parvient pas à en fournir un lui-même (selon ses nombreux critiques et je suis d’accord), et la tentative de greffer le cadavre pourri de la sélection de groupe sur toutes les théories économiques et psychologiques qu’il a généré dans ses décennies de travail, n’a fait qu’invalider tout son projet. Bien que Gintis fasse un vaillant effort pour comprendre et expliquer la génétique, comme Wilson et Nowak, il est loin d’être un expert, et comme eux, le calcul l’aveugle juste aux impossibilités biologiques et bien sûr c’est la norme en science. Comme Wittgenstein l’a noté sur la première page de la culture et de la valeur « Il n’y a pas de dénomination religieuse dans laquelle l’utilisation abusive des expressions métaphysiques a été responsable de tant de péchés qu’il l’a en mathématiques. » Il a toujours été clair que un gène qui provoque un comportement qui diminue sa propre fréquence ne peut pas persister, mais c’est le cœur de la notion de sélection de groupe. En outre, il a été bien connu et souvent démontré que la sélection de groupe réduit juste à la condition physique inclusive (sélection de parents), qui, comme Dawkins l’a noté, est juste un autre nom pour l’évolution par sélection naturelle. Comme Wilson, Gintis a travaillé dans cette arène pendant environ 50 ans et n’a toujours pas compris, mais après le scandale a éclaté, il ne m’a fallu que 3 jours pour trouver, lire et comprendre le travail professionnel le plus pertinent, comme détaillé dans mon article. Il est ahurissant de se rendre compte que Gintis et Wilson n’ont pas été en mesure d’y parvenir en près d’un demi-siècle. Je discute des erreurs de sélection de groupe et de phénoménologie qui sont la norme dans le milieu universitaire comme des cas spéciaux de l’échec quasi universel de comprendre la nature humaine qui détruisent l’Amérique et le monde. Ceux qui souhaitent un cadre complet à jour pour le comportement humain de la vue moderne de deux systemes peuvent consulter mon livre 'The Logical Structure of Philosophy, Psychology, Mind and Language in Ludwig Wittgenstein and John Searle' 2nd ed (2019). Ceux qui s’intéressent à plus de mes écrits peuvent voir «Talking Monkeys --Philosophie, Psychologie, Science, Religion et Politique sur une planète condamnée --Articles et revues 2006-2019 3e ed (2019) et Suicidal Utopian Delusions in the 21st Century 4th ed (2020) et autres. (shrink)

Estados Unidos y el mundo están en el proceso de colapso de un crecimiento excesivo de la población, la mayoría de ella para el siglo pasado, y ahora todo ello, debido a la gente del 3ª mundo. El consumo de recursos y la adición de 4 mil millones más ca. 2100 colapsarán la civilización industrial y traerán hambre, enfermedad, violencia y guerra a una escala asombrosa. La tierra pierde al menos el 1% de su suelo vegetal cada año, por lo (...) que se acerca a 2100, la mayor parte de su capacidad de cultivo de alimentos se habrá ido. Miles de millones morirán y la guerra nuclear es segura. En Estados Unidos, esto está siendo enormemente acelerado por la inmigración masiva y la reproducción de inmigrantes, combinada con los abusos hechos posible por la democracia. La naturaleza humana depravada convierte inexorablemente el sueño de la democracia y la diversidad en una pesadilla de delincuencia y pobreza. China seguirá abrumar a América y al mundo, siempre y cuando mantenga la dictadura que limita el egoísmo. La causa raíz del colapso es la incapacidad de nuestra psicología innata para adaptarse al mundo moderno, lo que lleva a las personas a tratar a las personas no relacionadas como si tuvieran intereses comunes. La idea de los derechos humanos es una fantasía malvada promovida por los izquierdistas para atraer la atención de la destrucción despiadada de la tierra por una maternidad sin restricciones del tercer mundo. Esto, además de la ignorancia de la biología básica y la psicología, conduce a los delirios de ingeniería social de los parcialmente educados que controlan las sociedades democráticas. Pocos entienden que si usted ayuda a una persona a lastimar a alguien más, no hay almuerzo gratis y cada artículo que alguien consume destruye la tierra más allá de la reparación. En consecuencia, las políticas sociales en todas partes son insostenibles y, una por una, todas las sociedades sin estrictos controles sobre el egoísmo se derrumbarán en la anarquía o la dictadura. Los hechos más básicos, casi nunca mencionados, son que no hay suficientes recursos en Estados Unidos o en el mundo para levantar un porcentaje significativo de los pobres de la pobreza y mantenerlos allí. El intento de hacer esto es la quiebra de Estados Unidos y la destrucción del mundo. La capacidad de la tierra para producir alimentos disminuye diariamente, al igual que nuestra calidad genética. Y ahora, como siempre, de lejos el mayor enemigo de los pobres es el de otros pobres y no los ricos. Sin cambios dramáticos e inmediatos, no hay esperanzas de evitar el colapso de América, o cualquier país que siga un sistema democrático. (shrink)

चूंकि Gintis एक वरिष्ठ अर्थशास्त्री है और मैं ब्याज के साथ अपने पिछले पुस्तकों में से कुछ पढ़ा है, मैं व्यवहार में कुछ और अंतर्दृष्टि की उम्मीद कर रहा था. अफसोस की बात है, वह समूह चयन और phenomenology के मृत हाथ व्यवहार के अपने सिद्धांतों के centerpieces में बनाता है, और यह काफी हद तक काम अमान्य. इससे भी बदतर, क्योंकि वह इस तरह के बुरे निर्णय यहाँ से पता चलता है, यह सवाल अपने पिछले काम में कहता है. (...) हार्वर्ड, Nowak और विल्सन, कुछ साल पहले में अपने दोस्तों द्वारा समूह चयन पुनर्जीवित करने का प्रयास पिछले दशक में जीव विज्ञान में प्रमुख घोटालों में से एक था, और मैं अपने लेख 'Altruism, यीशु और दुनिया के अंत में दुखद कहानी सुनाई है कैसे टेम्पलटन फू एक हार्वर्ड प्रोफेसरशिप खरीदा है और विकास, तर्कसंगतता और सभ्यता पर हमला किया - ईओ विल्सन 'पृथ्वी के सामाजिक विजय' (2012) और Nowak और Highfield 'SuperCooperators' (2012) की समीक्षा. Nowak के विपरीत, Gintis धार्मिक कट्टरता से प्रेरित नहीं लगता है, लेकिन मजबूत करने के लिए मानव प्रकृति की गंभीर वास्तविकताओं के लिए एक विकल्प उत्पन्न करने की इच्छा से, बुनियादी मानव जीव विज्ञान और खाली स्लेटिज्म की समझ की कमी (के पास सार्वभौमिक) द्वारा आसान बना दिया व्यवहार वैज्ञानिकों, अन्य शिक्षाविदों, और आम जनता. Gintis ठीक हमलों (जैसा कि वह पहले कई बार किया है) अर्थशास्त्री, समाजशास्त्रियों और अन्य व्यवहार वैज्ञानिकों के व्यवहार का वर्णन करने के लिए एक सुसंगत रूपरेखा नहीं होने के लिए. बेशक, व्यवहार को समझने के लिए आवश्यक ढांचा एक विकासवादी है। दुर्भाग्य से, वह एक खुद को प्रदान करने में विफल रहता है (अपने कई आलोचकों के अनुसार और मैं सहमत), और जो कुछ भी आर्थिक और मनोवैज्ञानिक सिद्धांतों वह काम के अपने दशकों में उत्पन्न किया है पर समूह चयन के सड़े शव कलम करने का प्रयास, केवल अपनी पूरी परियोजना को अमान्य करता है। हालांकि Gintis एक बहादुर को समझने और आनुवंशिकी की व्याख्या करने का प्रयास करता है, विल्सन और Nowak की तरह, वह एक विशेषज्ञ से दूर है, और उन्हें पसंद है, गणित सिर्फ उसे जैविक असंभव के लिए अंधा कर देता है और निश्चित रूप से यह विज्ञान में आदर्श है. के रूप में Wittgenstein प्रसिद्ध संस्कृति और मूल्य के पहले पृष्ठ पर उल्लेख किया "कोई धार्मिक संप्रदाय है जिसमें आध्यात्मिक अभिव्यक्ति का दुरुपयोग इतना पाप के लिए जिम्मेदार है के रूप में यह गणित में है." यह हमेशा क्रिस्टल स्पष्ट किया गया है कि एक जीन है कि व्यवहार का कारण बनता है जो अपनी आवृत्ति कम हो जाती है जारी नहीं रख सकते हैं, लेकिन यह समूह चयन की धारणा का मूल है. इसके अलावा, यह अच्छी तरह से जाना जाता है और अक्सर प्रदर्शन किया गया है कि समूह चयन सिर्फ समावेशी फिटनेस को कम कर देता है (किन चयन), जो, के रूप में Dawkins उल्लेख किया है, सिर्फ प्राकृतिक चयन द्वारा विकास के लिए एक और नाम है. विल्सन की तरह, Gintis के बारे में 50 साल के लिए इस क्षेत्र में काम किया है और अभी भी यह समझ में नहीं आया है, लेकिन बाद घोटाले तोड़ दिया, यह मुझे केवल 3 दिन लग गए खोजने के लिए, पढ़ने और सबसे प्रासंगिक पेशेवर काम समझ, के रूप में मेरे लेख में विस्तृत. यह महसूस करने के लिए मन boggling है कि Gintis और विल्सन लगभग आधी सदी में यह पूरा करने में असमर्थ थे. मैं समूह चयन और phenomenology की त्रुटियों पर चर्चा है कि निकट सार्वभौमिक विफलता के विशेष मामलों के रूप में शिक्षा के क्षेत्र में आदर्श हैं मानव प्रकृति है कि अमेरिका और दुनिया को नष्ट कर रहे हैं समझने के लिए. आधुनिक दो systems दृश्यसे मानव व्यवहार के लिए एक व्यापक अप करने के लिए तारीख रूपरेखा इच्छुक लोगों को मेरी पुस्तक 'दर्शन, मनोविज्ञान, मिनडी और लुडविगमें भाषा की तार्किक संरचना से परामर्श कर सकते हैं Wittgenstein और जॉन Searle '2 एड (2019). मेरे लेखन के अधिक में रुचि रखने वालों को देख सकते हैं 'बात कर रहेबंदर- दर्शन, मनोविज्ञान, विज्ञान, धर्म और राजनीति पर एक बर्बाद ग्रह --लेख और समीक्षा 2006-2019 3 एड (2019) और आत्मघाती यूटोपियान भ्रम 21st मेंसदी 4वें एड (2019) . (shrink)

Economists and philosophers disagree about the concept of choice used in economics. Some behavioural economists argue that economic models of choice will improve as they become more and more psychologically realistic. Don Ross argues that this argument fails because its hidden assumption – that the economic concept of choice is the same as the psychological counterpart – is false. Ross conjectures that the economic concept of choice concerns a population-scale pattern of behavioural changes in response to incentives. We conduct a (...) survey experiment to test two predictions that Ross’s conjecture generates. The statistical analysis of our data confirms our predictions, although with some qualifications. In interpreting our results, we distinguish two versions of commonsensible realism, strong and weak, and propose the weak one as a plausible explanation of our results. Weak commonsensible realism also produces further testable hypotheses. Some methodological implications of our study are discussed. (shrink)

The goal of the article is to substantiate that despite the criticism the paradigm in economics will not change because of the axiomatic assumptions of value-free economics. How these assumptions work is demonstrated on the example of Gary Becker’s economic approach which is analyzed from the perspective of scientific research programme. The author indicates hard core of economic approach and the protective belt which makes hard core immune from any criticism. This immunity leads economists to believe that they are objective (...) scientists and, consequently, it results in epistemological hubris. Due to its tautological nature, economic approach is considered to be a degenerative programme. This conclusion is extended on value-free economics. In spite of these problems, many economists still believe in positive economics and they dismiss normative approaches. It has a negative influence on people. The conclusion of the article is that thanks to axiomatic assumptions economists do not have objective and ironclad methodology and they should accept normative values in their research. (shrink)

The article focuses on the anti-naturalism of Menger and Mises. It presents a methodological approach formulated by both scholars as stemming from epistemological anti-naturalism and demonstrating similarities to social phenomenology. The article also discusses the development of the anti-naturalistic perspective on the basis of Hayek’s conception of sensory order. The latter allowed addressing the problem of validity of methodological dualism and established a sound foundation for the methodological approach of the Austrian School of Economics.

Throughout the history of mankind, energy security has been always seen as a means of protection from disruptions of essential energy systems. The idea of protection from disorders emerged from the process of securing political and military control over energy resources to set up policies and measures on managing risks that affect all elements of energy systems. The various systems placed in a place to achieve energy security are the driving force towards the energy innovations or emerging trends in the (...) energy sector. Our paper discusses energy security status and innovations in the energy sector in European Union (EU). We analyze the recent up-to-date developments of the energy policy and exploitation of energy sources, as well as scrutinize the channels of energy streaming to the EU countries and the risks associated with this energy import. Moreover, we argue that the shift to the low-carbon production of energy and the massive deployment of renewable energy sources (RES) might become the key issue in ensuring the energy security and independency of the EU from its external energy supplies. Both RES, distributed energy resources (DER) and “green energy” that will be based on the energy efficiency and the shift to the alternative energy supply might change the energy security status quo for the EU. (shrink)

Wij presenteren Berardi’s herwerking van de ideologiekritiek in drie stappen. Eerst schetsen wij de context waarin Berardi de ideologiekritiek herdenkt. Hij bouwt verder op de ontdekking van Deleuze en Guattari dat de taal van het kapitalisme niet de code, maar de axiomatiek is. De economische wetenschap biedt, volgens hen, mensen geen identiteit aan, maar bestaat uit een reeks commando’s die stromen van geld, arbeid, elektriciteit, enzovoort reguleert. Daaraan koppelt Berardi de observatie dat het hedendaagse kapitalisme vooral tekens verhandelt in plaats (...) van producten waarnaar zulke tekens zouden verwijzen. In een tweede stap brengen wij tegen deze opvatting in dat Berardi nog steeds vasthoudt aan de representatieve waarde van de economische wetenschap. Deze laatste zou enkel een afbeelding bieden van de realiteit en die vervalsen in het voordeel van het status quo. Sociologen uit de traditie van de actor-netwerktheorie (ANT) hebben dat echter betwist. Zij beweren dat de economische wetenschap de economische realiteit niet zozeer afbeeldt, maar actief vormgeeft. De economische wetenschap heeft de mens geschapen naar zijn evenbeeld: als homo oeconomicus. Het is dan ook een vergissing om de economische wetenschap te bekritiseren voor haar valse representaties. Zij maakt die immers waar. In een derde en laatste stap leggen wij in Berardi’s teksten een nieuw criterium bloot voor ideologiekritiek. In plaats van de economische wetenschap te bekritiseren voor haar valse uitspraken over de realiteit, moeten wij nagaan of de economische wetenschap een manier van leven promoot die mensen in staat zijn te onderhouden. De economische wetenschap is dan ideologisch als en slechts als zij een onhoudbare vorm van leven propageert. Volgens Berardi kan de hedendaagse economische wetenschap hiervan terecht beschuldigd worden. In zijn psychopathologie van het kapitalisme wijst hij immers op de negatieve psychische gevolgen van het hedendaagse kapitalisme, namelijk de instandhouding van een cyclus tussen paniek en depressie, een verlies aan betekenisvol menselijk contact en een neiging tot neurotisch vasthouden aan oude economische recepten die hun failliet reeds meermaals bewezen hebben. Niet de waarheid zal ons verlossen, maar in de verlossing ligt het ware leven. (shrink)

In the course of the eighteenth and nineteenth centuries the paradigm of a new science, political economy, was established. It was a science distinct from the Aristotelian sub-disciplines of practical philosophy named oikonomía and politiké, and emphasis on its character of science not unlike the natural sciences – still called ‘natural philosophy’ – mirrored precisely a willingness to stress its autonomy from two other sub-disciplines of practical philosophy, that is, ethics and politics. However, the new science resulted from a transformation (...) of part of traditional practical philosophy, allowing the inclusion of bodies of knowledge accumulated by experts of commerce and public finance. Such bodies of knowledge were unified by the (true or alleged) discovery of regularities, mechanisms, causal connections making for a new partial order within the overall social order. How far this paved the way to a science similar to mathematics rather left a normative discipline as alive as ever was a recurrent question for at least a century, until the marginalist revolution opened the way for a sharp division, leaving ‘economics’ as a science of causes and effects facing ‘economic policy’ as a discourse on ends. (shrink)

I reconstruct Adam Smith’s theory of irony and its application. I illustrate how he defines it as a combination of something “grand” with something “mean” and how this is consistent with his anti-Cartesian and post-skeptic epistemology. I suggest that, for Smith, “systems” of any kind, from Cartesian physics to philosophical monotheism, Stoic ethics, and the “mercantile system” draw their apparent plausibility from some disease of human imagination. I argue that in every field, including political economy, in his view, the philosopher’s (...) task is partially sceptical and partially ironical. That is, it is the task to fight erroneous systems by showing how these arise from unwarranted associations of ideas between apparently “grand” ideas —say, the public interest— with “mean” ones, say, the merchants’ self-interest. In this light, the phrase “invisible hand” turns out to be both an ironic joke and one more application of Smith’s post-skeptical theory of knowledge whose target is dismantling all kind of “invisible” entities that human imagination tends to create. (shrink)

In recent years, several authors have reconstructed the relationship between 20th-century economic theory and neuro-psychological research in terms of a three-stage narrative of initial unity, increasing separation, and ongoing reunification. In this article, I draw on major developments in economic theory and neuro-psychological research to provide a descriptive and normative critique of this reconstruction. Moreover, I put forward a reconstruction of the relationship between economics and neuro-psychology that, I claim, better fits both the available empirical evidence and the methodological foundations (...) of these disciplines. In doing so, I argue that recent calls to develop a unified interdisciplinary framework for modeling choice are premised on disputable presuppositions concerning both the domain of economic theory and the relationship between this theory’s axiomatic foundations and empirical findings about the neuro-psychological substrates of choice. (shrink)

My purpose is to appraise the recent critique of theoretical economics by applying the methodological perspective. Therefore, I start by identifying the main lines of criticism raised against theoretical economics in the aftermath of the post-2008 global economic crisis: namely, the voices criticizing economics for its unrealistic models, excessive mathematization, and overconfidence in its theoretical claims. First, I show that these issues are interconnected and should be jointly analyzed. Next, I investigate these lines of critique from the perspective provided by (...) the latest achievements in the philosophy of economics (e.g., studies on the epistemic role of economic models). Taking this perspective reinforces some allegations against economics (e.g., these voices accusing economists of treating economic laws as universal laws of nature) and makes some criticisms more nuanced (e.g., the issue of unrealistic assumptions). I conclude by stating that such a methodological perspective is necessary in critically apprising the recent critique of economics. (shrink)

Economists use the term ‘stylized fact’ in many contexts, though the meaning of this phrase and the motivation for using such a concept is unclear. In this paper, we provide a philosophical analysis of stylized facts, which aims to be methodologically interesting and useful. While our framework applies to all principled uses of stylized facts, we illustrate its core features by applying it to Nicholas Kaldor's initial and exemplary use of stylized facts in growth economics.

A discussion of the correspondence between Malthus and Ricardo and its bearing on their published works.

A review of Carsten Herrmann-Pillath, Foundations of Economic Evolution. A Treatise on the Natural Philosophy of Economics. I argue that the author's ultra-naturalist stance in epistemology lacks consistent justification.

The paper aims to establish that Terence Hutchison’s argument in The Politics and Philosophy of Economics (1981) to the effect that the young F.A. Hayek maintained a methodological position markedly similar to that of Ludwig von Mises fails to establish the relevant conclusion. The first problem with Hutchison’s argument is that it is not clear exactly what conclusion he meant to establish with regard to the methodological views of the two paragons of 20th century Austrian economics. Mises (in)famously maintained a (...) rather extreme methodological apriorism. However, Hutchison’s argument does not support the claim that Hayek was ever an apriorist of the Misesian variety. The concept of a priori knowledge that emerges from Hayek’s epistemology – specifically the epistemology implied by Hayek’s work in theoretical psychology – is the direct opposite of Mises’ treatment of a priori knowledge. Simply stated, Hayek conceived of a priori knowledge as fallible and relative, while Mises considered a priori knowledge to be infallible and absolute. Thus, it cannot be maintained – if, indeed, Hutchison meant to establish – that Hayek was a Misesian apriorist during the years in question. What’s more, the paper shows that Hutchison’s argument does not support a weaker interpretation of the relevant conclusion. There are alternative interpretations of the evidence adduced by Hutchison that are both more charitable and more in line with Hayek’s epistemology that undermine Hutchison’s conclusion. (shrink)

Scientific pluralism, a normative endorsement of the plurality or multiplicity of research approaches in science, has recently been advocated by several philosophers (e.g., Kellert et al. 2006, Kitcher 2001, Longino 2013, Mitchell 2009, and Chang 2010). Comparing these accounts of scientific pluralism, one will encounter quite some variation. We want to clarify the different interpretations of scientific pluralism by showing how they incarnate different models of democracy, stipulating the desired interaction among the plurality of research approaches in different ways. Furthermore, (...) the example of scientific pluralism is used to advocate the application of democratic theory to philosophy of science problems in general. Drawing on the parallels between models of science and models of democracy, we can articulate how the plurality of research approaches in science should interact within a democratic framework as well as how to cultivate multiple research approaches in the epistemically most productive way possible. This will not only improve our understanding of scientific plurality, but it can also help us stipulating how different research approaches should interact to constitute the most objective account possible or how the ideal of scientific consensus has to be understood. Ultimately, developing democratic models of science bears on the question of how deeply science and democracy are entwined. (shrink)

The purpose of this paper is to examine the normative interpretation of the fast-and-frugal research program and in particular to contrast it with the normative reading of rational choice theory and behavioral economics. The ecological rationality of fast-and-frugal heuristics is admittedly a form of normative naturalism – it derives what agents “ought” to do from that which “is” ecologically rational – and the paper will examine how this differs from the normative rationality associated with rational choice theory. I will also (...) attempt to assess the relative adequacy of normative ecological rationality. (shrink)

Purpose – The aim of this paper is to show that metaphors play an important role in the making of economics. -/- Design/methodology/approach – The paper’s discussion is situated within the framework of methodology of economics. It refers to recent studies on the role of metaphors in economics, as well as to the rhetoric – realism controversy (e.g. D. McCloskey versus U. Mäki). -/- Findings – The principal results of the paper are: the demonstration of the importance of metaphors in (...) economics; and the claim that metaphors are not only used for rhetorical purposes but also serve as research tools indispensable in explaining economic phenomena. They are also essential in economic modeling. -/- Research limitations/implications – The claim that economic models function as networks of metaphors needs further in-depth study, in particular drawing on insights from cognitive linguistics, where we find many interesting research projects currently underway, would be desirable. -/- Originality/value – The article contributes to the rhetoric – realism debate in economics. It adds some arguments to the literature claiming that rhetoric can be compatible with realism. (shrink)

Is subjective expert judgment a source of evidence in economics? In this paper, I will argue that it is, on a par with other sources like modeling, statistics, experimental, etc. I will also argue that it is not derivative, that is, reducible to the previous ones. But what is exactly the role of experts in economics? The contribution to the current methodological debate that I propose not only takes the role of expertise in economics as indispensable, but also suggests a (...) need for a methodology associated with that role. I defend an indispensability argument, and indirectly David Colander's plea for refocusing the methodological debate on the lost art of economics. Finally, I indicate where to look for guidelines in formulating a methodology of economic expertise. (shrink)

Contemporary discussion concerning institutions focus on, and mostly accept, the Searlean view that institutional objects, i.e. money, borders and the like, exist in virtue of the fact that we collectively represent them as existing. A dissenting note has been sounded by Smit et al. (Econ Philos 27:1–22, 2011), who proposed the incentivized action view of institutional objects. On the incentivized action view, understanding a specific institution is a matter of understanding the specific actions that are associated with the institution and (...) how we are incentivized to perform these actions. In this paper we develop the incentivized action view by extending it to institutions like property, promises and complex financial organisations like companies. We also highlight exactly how the incentivized action view differs from the Searlean view, discuss the method appropriate to such study and discuss some of the virtues of the incentivized action view. (shrink)

In 1987, George Soros introduced his concepts of reflexivity and fallibility and has further developed and applied these concepts over subsequent decades. This paper attempts to build on Soros's framework, provide his concepts with a more precise definition, and put them in the context of recent thinking on complex adaptive systems. The paper proposes that systems can be classified along a ‘spectrum of complexity’ and that under specific conditions not only social systems but also natural and artificial systems can be (...) considered ‘complex reflexive.’ The epistemological challenges associated with scientifically understanding a phenomenon stem not from whether its domain is social, natural, or artificial, but where it falls along this spectrum. Reflexive systems present particular challenges; however, evolutionary model-dependent realism provides a bridge between Soros and Popper and a potential path forward for economics. (shrink)

We argue that the Soros account of reflexivity does not provide a clear-cut distinction between a social science such as economics and the physical sciences. It is pointed out that the participants who attempt to learn from refutations of conjectures in the Soros world are likely to be haunted by the Duhem–Quine problem of conjointness of hypotheses and unfocused refutation. On a more constructive note, we argue that models of inductive learning, in which participants form conjectures on the basis of (...) strictly limited information sets, can capture the basic thrust of the Soros position. The conjectures are in motion, as the participants attempt to avoid those that are systematically wrong, and there is something vague and uncertain about what can be learned from experience and refutations. The only notion of market efficiency in this world is one contingent on the strictly limited and varied information sets in play. Finally we present a mathematical model and numerical simulations that help justify the causal relationship between reflexivity and far-from-equilibrium dynamics postulated by Soros. (shrink)

George Soros makes an important analytical contribution to understanding the concept of reflexivity in social science by explaining reflexivity in terms of how his cognitive and manipulative causal functions are connected to one another by a pair of feedback loops (Soros, 2013). Fallibility, reflexivity and the human uncertainty principle. Here I put aside the issue of how the natural sciences and social sciences are related, an issue he discusses, and focus on how his thinking applies in economics. I argue that (...) standard economics assumes a ‘classical’ view of the world in which knowledge and action are independent, but that we live in a complex reflexive world in which knowledge and action are interdependent. I argue that Soros's view provides a reflexivity critique of the efficient market hypothesis seen as depending on untenable claims about the nature of random phenomena and the nature of economic agents. Regarding the former, I develop this critique in terms of Cauchy distributions; regarding the latter I develop it in terms of rational expectations and rational addiction reasoning. (shrink)

Although it is often said that economics is too much like physics, to a physicist economics is not at all like physics. The difference is in the scientific methods of the two fields: theoretical economics uses a top down approach in which hypothesis and mathematical rigor come first and empirical confirmation comes second. Physics, in contrast, embraces the bottom up ‘experimental philosophy’ of Newton, in which ‘hypotheses are inferred from phenomena, and afterward rendered general by induction’. Progress would accelerates if (...) economics were to truly make empirical verification the ultimate arbiter of theories, which would force it to open up to alternative approaches. (shrink)

This note focuses on George Soros's challenge to macroeconomics and finance theory that any valid methodology of social science must explicitly recognize fallibility in a Knightian sense. We use a simple algebraic example to sketch how extant models formalize fallibility. We argue that contemporary theory's epistemological and empirical difficulties can be traced to assuming away fallibility in a Knightian sense. We also discuss how imperfect knowledge economics provides a way to open mathematical models to such fallibility, while preserving economics as (...) an empirical science. (shrink)

This paper argues that contemporary macroeconomic and finance models suffer from insuperable epistemological flaws and that their empirical difficulties – which are particularly apparent in modeling market participants' expectations – can be traced to economists' core premise that they can adequately specify in probabilistic terms how individuals alter the way they make decisions and how the processes underpinning market outcomes unfold over time. We refer to such accounts of change as determinate. The first part examines how this core premise has (...) derailed the development of macroeconomic analysis for the last four decades. The second part sketches how imperfect knowledge economics (IKE) jettisons conventional models' core premise and how doing so helps to overcome these models' epistemological flaws. By opening economic models to change, that is, at least in part, indeterminate, and by recognizing imperfect knowledge on the part of economists, IKE explores the frontier of what empirically relevant mathematical macroeconomic and finance models can deliver. (shrink)

The failure of models based on rational expectations to explain the ‘boom and bust’ of financial markets does not support Soros' critique of mainstream economics or his call for a theoretical revolution. Contrary to what Soros says, standard rational choice theory has the conceptual resources to analyse reflexivity. The dynamic of feedback loops for example can be described by simple models based on multiple equilibria and informational cascades. The problem is that agents and theorists sometimes lack the information required to (...) identify equilibria and tipping points. (shrink)

The paper proposes to ground the taxonomy of economic systems on the identification of strongly performative institutions as distinctive features. I analyse performativity on the basis of the Aoki model of institutions, enriched by current approaches to performativity, which I combine with Searle's notion of a status function. Performativity is conceived as resulting from the conjunction of public representations (sign systems) and behavioural dispositions which channel strategic interactions among actors such that certain sets of institutions are reproduced recurrently. I apply (...) this approach to the case of ‘financial capitalism’ and analyse three strongly performative institutions, the accounting standards (International Financial Reporting Standards), managerial incentive systems and intellectual property rights. (shrink)

The new economic sociology claims to have adopted the notion of performativity from J.L Austin, has put it in new uses, and has given it new meanings. This is now spreading and has created another vogue term in the social and human sciences. The term is taken to cover all sorts of aspects in the ways in which the use of social scientific theories have consequences for the social world. The paper argues that the expansive use of 'performativity' obscures the (...) Austinian idea and thereby impoverishes the conceptual resources available for analyzing the nuances in the complex theory/world connections. Importantly, it blurs the difference between constitutive and causal relationships, both of which actually are involved. Instead of economics performs the economy as the sociologists say, it would make more sense to say, the economy performs economics – but even this would be undermotivated. (shrink)

(2013). The making of the economy: a phenomenology of economic science. Journal of Economic Methodology: Vol. 20, Methodology, Systemic Risk, and the Economics Profession, pp. 86-91. doi: 10.1080/1350178X.2013.774855.

Let me begin by saying that I think that George Soros is right in identifying fallibility and reflexivity as important phenomena in economic life, and in social life more generally, and as phenomena that mainstream economic theory has largely ignored. I also agree with Soros that economics is an uncertain science. And I think that Soros himself, being one of the world's wealthiest men and most generous philanthropists, deserves credit for being ready and willing to think for himself. It would (...) be all too easy for him to trot out conventional wisdom about market efficiency, privatization, and the like – safely under-written by economic science. It is much more difficult to question the conventional wisdom, let alone its theoretical foundations. Soros does both. Better yet, he takes the trouble to write down his ideas for public consideration and to respond to requests from academic journals to debate their significance – while he could just as easily be lounging on a yacht eating caviar for the rest of his days. Thus said, I do not agree with everything Soros says in his ‘Fallibility, reflexivity, and the human uncertainty principle’ and in what follows I will focus upon what I regard as misconceptions in what he says about fallibility, reflexivity, and scientific method. I will attribute these disagreements to misunderstandings of some of the ideas of our mutual mentor – Sir Karl Popper. In doing so, I hope to show that some of Soros' ideas may be closer to Popper's than Soros thinks, that reflexivity may not be as exclusive to social science as Soros thinks, and that it may not require a scientific method of its own. Getting clear about this may leave us with a somewhat different view of science. (shrink)

Many social scientists think of exchange in terms far broader than philosophers. I defend the broader use of the term as well as the claim that meaningful human relationships are usefully understood as constituted by exchanges. I argue, though, that we must recognize that a great number of non-monetary and non-material goods are part of our daily lives and exchanges. Particularly important are emotional goods. I defend my view against the important objection that it demeans intimate relationships. As an addendum, (...) I also defend it against claims that economics cannot study such exchanges. (shrink)

This paper discusses classification in Economics via the case of ?heterodox economics (HE)?. It argues that the debate over HE reflects several important methodological issues: the need and motives for classification, and its consequences; dualism; and simplicity versus complexity. It presents four types of treatment of HE, which usually reach different conclusions about it. The paper argues that intellectual treatments suffer from problems of dualism: frequently offering strict, fixed, simple definitions of HE that are difficult to defend, especially in the (...) light of recent developments in economics. For these reasons, sociological and psychological treatments have become preferred. These appear to avoid the problems faced by intellectual definitions and reflect existing social groups in economics. However, it is argued that these definitions are conceptually empty, still prone to dualism and reification. It is argued that all definitions reflect the sociology of the profession: dualist definitions of heterodoxy reflect interpretations of power structures within economics. Overall, definitions of HE should be multi-faceted, temporary and perhaps even purposefully vague. (shrink)

Journal of Economic Methodology, Volume 19, Issue 4, Page 446-451, December 2012.