Stipulating universal propositions with a ceteris paribus clause is normal practice in science and especially in economics. Yet there are several problems associated with the use of ceteris paribus clauses in theorising and in policy matters. This paper first investigates three questions: how can ceteris paribus clauses be non-vacuous? How can ceteris paribus laws be true? And how can they help in formulating successful policy interventions in a diversity of contexts? It turns out that ceteris paribus clauses are not always (...) used legitimately. They are meant to fence off a theory from disturbing factors, but economists who do not specify the clause well enough tend to fence variables in rather than off. In such cases, it would be better to use theoretical abstraction, which is something very different from the use of ceteris paribus clauses. However, abstract theorising conceptually leads one away from the concrete detail of real world situations in which policies take place. Hence, a fourth question arises: how can policy interventions be properly designed on the basis of abstract laws? To answer this question, I defend interdisciplinarity in concept choice. (shrink)

Scientific realists use the “no miracle argument” to show that the empirical and pragmatic success of science is an indicator of the ability of scientific theories to give true or truthlike representations of unobservable reality. While antirealists define scientific progress in terms of empirical success or practical problem-solving, realists characterize progress by using some truth-related criteria. This paper defends the definition of scientific progress as increasing truthlikeness or verisimilitude. Antirealists have tried to rebut realism with the “pessimistic metainduction”, but critical (...) realists turn this argument into an optimistic view about progressive science. (shrink)

In this paper, I argue that recent sociological theory has become increasingly bifurcated into two mutually incompatible styles of theorizing that I label formalist and behavioral-realist. Formalism favors mathematization and proposes an instrumentalist ontology of abstract processes while behavioral-realist theory takes at its basis the "real" physical individual endowed with concrete biological, cognitive and neurophysiological capacities and constraints and attempts to derive the proper conceptualization of social behavior from that basis. Formalism tends to lead toward a conceptually independent sociology that (...) in principle requires only minimal reference to the empirical and ontological storehouse of other disciplines, while behavioral-realist theory leads to an interdisciplinary sociology that can be located within a hierarchy of behavioral sciences, leading to questions regarding the relationship between sociology and other disciplines as well as issues of transdisciplinary unification and possible interdisciplinary reduction. I explore the consequences of this split for the project of explanatory sociological theory within the context of how it has manifested itself in sociological network theory and social psychology. I close with a critique and assessment of formalist tendencies in sociological theorizing. (shrink)

Resumen La tesis principal del artículo es que la estrategia estándar de modelización económica basada en la construcción de sistemas cerrados y de agentes optimizadores es ineficaz para el tratamiento de la incertidumbre. Puesto que bajo incertidumbre los agentes económicos desconocen cuál es el resultado final de un curso de acción, las decisiones de estos no deberían ser representadas por el cálculo de optimización bajo restricciones. La construcción de sistemas axiomáticos deductivos que conducen a la derivación de un único resultado (...) también será puesta en tela de juicio, y se propondrá su reemplazo por una lógica de investigación basada en simulaciones.The purpose of this essay is to show that the standard approach of economic modelling is ineffective for the issue of uncertainty. Since under uncertainty economic agents do not know the final outcome of a course of action, their decisions should not be represented by the process of constrained optimization. The construction of axiomatic systems that lead to the derivation of a single result is also put into question; its replacement by a simulation-based approach is proposed. (shrink)

La filosofía estándar de la economía presupone que en el dominio de los fenómenos económicos subyacen regularidades estables, las cuales pueden explicarse mediante el funcionamiento de mecanismos o de máquinas socioeconómicas. Asimismo, se considera que una vez puestos en funcionamiento, su comportamiento no necesita de subsecuentes intervenciones. Esto implica asumir que los procesos socioeconómicos tienen una naturaleza semejante a los de las ciencias naturales. No obstante, dichas regularidades son por lo general examinadas a la luz de algún modelo económico, por (...) lo cual pierden muchas veces contacto con el mundo real. Este trabajo tiene como objetivo poner en el centro del análisis otro objeto de estudio: los procesos económicos basados en expectativas. Se trata de procesos en los cuales la acción humana funciona como nexo causal entre las variables económicas y en los que dicha acción es producto de una formación previa de expectativas, las cuales son sensibles a la información del contexto. Se mostrará que en esta clase de procesos la intervención sistemática sobre las condiciones de fondo y sobre las expectativas es fundamental si lo que se busca es alcanzar un objetivo deseado o lograr un proceso estable. Esta intervención requerirá no solo del conocimiento proporcionado por los modelos, sino también de un conocimiento extrateorético o interdisciplinario. Mainstream philosophy of economics assumes that steady regularities underlie the domain of economic phenomena which can be explained by the operation of mechanisms or socioeconomic machines. It is also considered that once operating those mechanisms don't need further interventions. This implies the assumption that the nature of socioeconomic processes is similar to the one of the natural sciences. Nevertheless, such regularities are usually examined in the light of some economic model, which often ends up losing contact with the real world. The present paper aims at putting in the center of the analysis another object of study: the economic processes based on expectations. In these processes the human action operates as a causal link between economic variables; such an action being the result of a previous building of expectations which are sensitive to the information of the context. It will be shown that the systematic intervention on the background conditions and expectations is fundamental in this kind of processes if what is sought is fulfilling a desired goal or managing a stable process. That intervention will not only require the knowledge provided by models but also an extra-theoretical or interdisciplinary knowledge. (shrink)

The paper takes a fresh look at two essays that Adam Smith wrote at the very beginning of his career. In these essays, Smith explains his philosophy of science, which is social constructivist. A social constructivist reading of Smith strengthens the scholarly consensus that The Wealth of Nations needs to be interpreted in light of the general moral theory he explicates in The Theory of Moral Sentiments, as the two essays and TMS stress the importance of the same concepts: e.g., (...) moral imagination, the socially embedded individual, and humility. The connecting tissue between all three works is made up of sentiments and values. Smith regards the socially embedded human as the agent in all three realms, and humans are always driven by values. Smith not only conceives of economics as an applied moral philosophy, but also bases both research areas on a view of knowledge creation that stresses specific epistemic values. If mainstream economic theory wants to have any claim to Adam Smith, it would have to change not only what it argues but also how it argues. Economists would have to replace the language of mathematics with the language and logic of moral philosophy and give values centre stage. (shrink)

Corporate/collective moral responsibility is a thorny topic in business ethics and this paper argues that this is due a number of unacknowledged and connected epistemic issues. Firstly, CSR, Corporate Citizenship and many other research streams that are based on the assumption of collective and/or corporate moral responsibility are not compatible with Kantian ethics, consequentialism, or virtue ethics because corporate/collective responsibility violates the axioms and central hypotheses of these research programmes. Secondly, in the absence of a sound theoretical moral philosophical foundation, (...) business ethicists have based their ideas on legal and political epistemologies, yet still claim to be ethics-based. Thirdly, research is often driven by an intention to prove that a specific social goal is right, not by open and critical inquiry. Finally, today, corporate/collective moral responsibility is widely accepted as the Truth as most researchers are unaware of any issues because they are untrained in philosophy. The paper identifies the confusion about the epistemic basis as a major impediment for delivering a thick concept of the role of corporations as moral agents. Thus, the paper does not argue against corporate or collective agency as such, but points out an obvious but forgotten paradox: corporate and collective personhood cannot, at the moment at least, be epistemologically grounded in the field in which business ethics claims to operate: moral philosophy. (shrink)

Over the last few decades, the idea that education should function to promote economic progress has played a major role in shaping educational policy. So far, however, philosophers of education have shown relatively little interest in analysing this notion and its implications. The present article critically examines, from a philosophical perspective, the link between education and the currently prevailing understanding of economic progress, which is grounded in human capital theory. A number of familiar philosophical objections to the idea that economic (...) progress is a worthy educational aim are raised, but it is held that many of these objections stem from a partial understanding of economic theory. The article then moves on to investigate the foundations of human capital theory's conception of economic progress. It is argued that there are inherent tensions between the philosophical foundations of the economist's conception of progress and the very essence of education. The article concludes by suggesting that in order to resolve these tensions we should consider grounding the economic theory that guides educational policy-making in an intersubjective or objective conception of welfare. (shrink)

I distinguish several doctrines that economic methodologists have found attractive, all of which have a positivist flavour. One of these is the doctrine that preference assignments in economics are just shorthand descriptions of agents' choice behaviour. Although most of these doctrines are problematic, the latter doctrine about preference assignments is a respectable one, I argue. It doesn't entail any of the problematic doctrines, and indeed it is warranted independently of them.

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.

The main goal of this thesis is to provide a clear basis for the analysis of alternative currencies, such as Bitcoin, LETS, Local currencies, the WIR or Carbon currencies. It attempts to determine whether alternative currencies might constitute just and workable alternatives, either in the form of small-scale experiments or in the form of more radical reforms. The first chapter proposes a new way to classify currencies. The second examines the case in favour of monetary plurality. The third analyses the (...) claims in favour of restricting the use of money locally, within a community, or to certain goods. The fourth studies the link between money and the market. Finally, a post-scriptum focuses on Bitcoin and cryptocurrencies. This thesis highlights that these currencies are drivers of several potential conflicts. Their widespread use might conflict with the adequate management of monetary policy, with social justice, and with liberal values. These conflicts are potential, for they would come into existence only if alternative currencies increased in scope. However, there is no reason to disregard potential conflicts when the case in their favour relies mostly on their potential benefits. (shrink)