Despite the conclusions from the contemporary philosophy of science, many economists cherish the ideal of positive science. Therefore, value-free economics is still the central paradigm in economics. The first aim of the paper is to investigate economics' axiomatic assumptions from an epistemological perspective. The critical analysis of the literature shows that the positive-normative dichotomy is exaggerated. Moreover, value-free economics is based on normative foundations that have a negative impact on individuals and society. The paper's second aim is to show that (...) economics' normativity is not a problem because the discussion concerning values is possible and unavoidable. In this context, Weber and other methodologists are investigated. The conclusion of the paper is that science can thrive without strict methodological rules thanks to institutional mechanisms. Therefore, economists could learn from artists who accept the world without absolute rules. This perspective opens the possibility for methodological pluralism and normative approaches. (shrink)

Let me make it clear from the outset that my main point isnoteither of the following: one, that there should be more women economists and research on “women's issues”, or two, that women as a class do, or should do, economics in a manner different from men. My argument is different and has to do with trying to gain an understanding of how a certain way of thinking about gender and a certain way of thinking about economics have become intertwined (...) through metaphor – with detrimental results – and how a richer conception of human understanding and human identity could broaden and improve the field of economics for both female and male practitioners. (shrink)

Consider how your consumption would change if you were stranded on a deserted island. Isolation would eliminate all social influences on your consumption decisions, even for the same choice set. You might decide not to consume cosmetics, curtains, or neckties, and pay less attention to the style or color of your clothes, car, or furniture. These choices might not matter as much to you anymore, for you would not have to consider the reactions of other individuals to your consumption. Similarly, (...) isolation would also eliminate social influences on your speech. Absent an audience, your choice of words would not be subject to the judgments of others. (shrink)

Over the last few decades, theoretical discussions about metaphors have appeared with increasing frequency in the literature and, during the last fifteen years or so, such discussions have become more and more common in the methodology of economics. But what exactly is a metaphor? According to a tradition which dates back to Aristotle, a metaphor is the attribution to one object, A, of the name of another object, B, while this name or these qualities do not properly or normally belong (...) to A. Thus, a metaphor is present when a term used to describe A is a term which is already commonly used to name B. Defined in such a way, one must admit that metaphors are frequently found in economics as well as in other sciences. Let us consider, for example, a term like ‘elasticity’ which is extensively used by economists. According to the ordinary dictionary definition, this word designates a property of bodies by which they recover their initial form after having been submitted to a pressure; in a less technical sense, it refers to the flexibility of some bodies or to their responsiveness to pressures. (shrink)

Postmodernism and health economics are both concerned with questions about choices and values, risk and uncertainty. Postmodernists seek to respond to such questions in the context of a world of uncoordinated and often contradictory chances, a world devoid of clear-cut standards. Health economics seeks to respond using the constructs of modernity, including the application of reason to generate better order. In this article we present two sorts of voice. First we introduce postmodernism and those seeking to contribute to economics from (...) a postmodern perspective. Second, we consider critics of a prevalent neo-classicism within health economics both from outside that paradigm and from those more closely associated with it. It is increasingly evident that (health) economics, as presently constituted, is failing both in its descriptive powers and its prescriptive possibilities. Postmodernism offers not just an alternative theoretical approach but the possibility of both expanding the scope of health economics and grounding it more appropriately in the everyday experience of those engaging with health systems. (shrink)

Recent developments in themethodology of economics have drawn uponpragmatist and realist philosophies of socialscience. These recent developments areoutlined. It is argued that a specific variantof realist philosophy known as critical realismcan provide the basis for a prescriptiveeconomic methodology that is not susceptible topragmatist criticisms.

This paper argues that economics, over the past 200 years, has become steadily more anti-philosophical and that there are three stages in the development of economic thought. Adam Smith intended economics to be a descriptive social science, rooted in an understanding of the moral and psychological processes of an individual’s decision-making and its connection to society in general. Yet, immediately after Smith’s death, economists made a clean cut and invented a totally new discipline: they switched towards a physicalist understanding of (...) human nature. Humans, like atoms, follow a natural law: they are driven by an emotion (defined as a non-emotion, rationality), namely selfishness. Thus economics became a ‘natural’ science. In the 20th century, the second reinterpretation removed all traces of humanity from the study of economics and declared economics to be a formal science like mathematics and logics. The actor in Phase 3 economics is homo economicus syntheticus, a postulate whose only connection to real humanity is the word homo. The paper asks what the results of this dramatic relocation are and why Phase 3 economics still claims descent from Smithian economics, despite the massive differences. (shrink)

The “Adam Smith problem” has traditionally been concerned with the issue of authorial integrity: the issue of how a single author, Adam Smith, could have written two such apparently dissimilar, even contradictory, works as The Theory of Moral Sentiments and The Wealth of Nations. As the problem to be resolved was the single authorial origin of two such works, the perceived incompatibilities between them were explained in terms of Smith's intellectual biography – for example, Smith's travels to France, Smith's meetings (...) with the physiocrats, or the mental incapacities of an aging man. The current consensus is that the Adam Smith problem is a “pseudo problem” and that Smith's works represent a unified project, but the same reference to authorial origins now provides thr opposite claim that “the same man” wrote both books. Here the postulate of authorial integrity, “of stable integrated character, not subject to deep intellectual doubts or fissures” provides an assurance that such a man is unlikely to have written two entirely different books, an assurance underwritten by a coherent authorial intentionality that guarantees the consistency of the two works. (shrink)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.