Drawing on research in the psychology of judgment and decision making, I argue that individual economists acting as experts in matters of public policy are likely to be victims of significant overconfidence. The case is based on the pervasiveness of the phenomenon, the nature of the task facing economists?as?experts, and the character of the institutional constraints under which they operate. Moreover, I argue that economist overconfidence can have dramatic consequences. Finally, I explore how the negative consequences of overconfidence can be (...) mitigated, and how the phenomenon can be reduced or eliminated. As a case study, I discuss the involvement of Western experts in post?communist Russian economic reforms. (shrink)

Economics is dominated by model building, therefore a comprehension of how such models work is vital to understanding the discipline. This book provides a critical analysis of the economist's favourite tool, and as such will be an enlightening read for some, and an intriguing one for others.

Around the globe, economists affect markets by saying what markets are doing, what they should do, and what they will do. Increasingly, experimental economists are even designing real-world markets. But, despite these facts, economists are still largely thought of as scientists who merely observe markets from the outside, like astronomers look at the stars. Do Economists Make Markets? boldly challenges this view. It is the first book dedicated to the controversial question of whether economics is performative--of whether, in some cases, (...) economics actually produces the phenomena it analyzes.The book's case studies--including financial derivatives markets, telecommunications-frequency auctions, and individual transferable quotas in fisheries--give substance to the notion of the performativity of economics in an accessible, nontechnical way. Some chapters defend the notion; others attack it vigorously. The book ends with an extended chapter in which Michel Callon, the idea's main formulator, reflects upon the debate and asks what it means to say economics is performative.The book's insights and strong claims about the ways economics is entangled with the markets it studies should interest--and provoke--economic sociologists, economists, and other social scientists.In addition to the editors and Callon, the contributors include Marie-France Garcia-Parpet, Francesco Guala, Emmanuel Didier, Philip Mirowski, Edward Nik-Khah, Petter Holm, Vincent-Antonin Lépinay, and Timothy Mitchell. (shrink)

The paper expands on Goshal’s criticism of what management as a scientific discipline teaches and the effects on managerial and societal ethics. The main argument put forward is that the economisation of management has a detrimental effect on the practice of management and on society in large. The ideology of economism is described and analysed from an epistemological perspective. The paper argues that the economisation of management not only introduces the problems of economics (three are identified and discussed) but destroys (...) the very essence of management because economics is focused on efficiency and management should be focused on effectiveness. What is more, the basic axioms of mainstream economics stand in stark contrast to the philosophy of the Enlightenment and therefore endanger the foundations of Western societies. Management theory (via corporate governance) is the Trojan horse carrying economism into society. (shrink)

The economics of happiness is an influential research programme, the aim of which is to change welfare economics radically. In this paper I set out to show that its foundations are unreliable. I shall maintain two basic theses: (a) the economics of happiness shows inconsistencies with the first person standpoint, contrary claims on the part of the economists of happiness notwithstanding, and (b) happiness is a dubious concept if it is understood as the goal of welfare policies. These two theses (...) are closely related and lead to a third thesis: (c) happiness should be replaced by autonomy as the fundamental goal of welfare economics. To defend my claims I shall show that a hedonic approach to happiness leads to an awkward trilemma. Furthermore, I shall clarify the meaning of and , along with their conceptual relationships. (shrink)

In the wake of the financial crisis of 2008, many economists have blamed economics for having failed to warn us. Paul Krugman, for example, in a well-known New York Times Magazine article, suggests that Classical economists were blinded by the beauty of mathematics, and that Keynesian economics is the path of the future. This paper argues that the evolution of economic thinking is much more nuanced than Krugman portrays it, and that instead of embracing what has become known as Keynesian (...) economics, macroeconomists should rather re-embrace the broader Classical economic tradition, of which Keynes was an important part. (shrink)

In the wake of the financial crisis of 2008, many economists have blamed economics for having failed to warn us. Paul Krugman, for example, in a well-known New York Times Magazine article, suggests that Classical economists were blinded by the beauty of mathematics, and that Keynesian economics is the path of the future. This paper argues that the evolution of economic thinking is much more nuanced than Krugman portrays it, and that instead of embracing what has become known as Keynesian (...) economics, macroeconomists should rather re-embrace the broader Classical economic tradition, of which Keynes was an important part. (shrink)

"I do solemnly swear" -- Economics in practice : what do economists do? -- Ethical challenges confronting the applied economist -- Historical perspective : "don't predict the interest rate!" -- Interpreting the silence : the economic case against professional economic ethics -- The economic case against professional economic ethics : a rebuttal -- The positive case for professional economic ethics -- Learning from others : ethical thought across the professions -- Economists as social engineers : an ethical evaluation of market (...) liberalization in the south and transition economies -- Global economic crisis and the crisis in economics -- On sleeping too well : in search of professional economic ethics -- Training the "ethical economist" -- The economist's oath. (shrink)

Released in 1984, Steven E. Rhoads' classic was considered by many to be among the best introductions to the economic way of thinking and its applications. This anniversary edition has been updated to account for political and economic developments - from the greater interest in redistributing income and the ascendancy of behaviorism to the Trump presidency. Rhoads explores opportunity cost, marginalism, and economic incentives and explains why mainstream economists - even those well to the left - still value free markets. (...) He critiques economics for its unbalanced emphasis on narrow self-interest as controlling motive and route to happiness, highlighting philosophers and positive psychologists' findings that happiness is far more dependent on friends and family than on income or wealth. This thought-provoking tour of the economist's mind is a must read for our times, providing a clear, lively, non-technical insight into how economists think and why they shouldn't be ignored. (shrink)

Cet article s’intéresse à l’histoire et au contenu de la pensée corporatiste française pendant la période de l’Occupation. Dans ce cadre, son objet se limite cependant à l’étude de la contribution intellectuelle des seuls économistes français, et parmi eux uniquement aux universitaires. La référence à la pensée corporatiste concerne ici à la fois leurs analyses et leurs choix méthodologiques, ainsi que leurs réflexions en matière de politique économique. Notre article ne s’intéressera donc que très brièvement à l’origine strictement historique du (...) corporatisme à moins qu’elle ne recoupe certains des débats de fond qui ont eu lieu sous l’Occupation. La première partie de notre contribution porte sur le contexte de l’émergence de la pensée économique corporatiste pendant la période de l’Occupation allemande. La deuxième partie s’intéresse aux recherches universitaires qui ont tenté de mener un travail à dominante économique sur le corporatisme. Six auteurs voient leurs contributions mi... (shrink)

In this paper, I present some responses to an argument made by an economist in an online video: that when Britain leaves the European Union, it will be taking many high ranking universities with it, which will lead to an innovation deficit in the union. I present some responses by means of a pastiche of a widely read European fiction writer.

In Great Economists before Keynes, a chronological guide is included for readers wishing to trace the development of economic thought from early mercantilist writings to the pivotal work of John Maynard Keynes. Each article briefly discusses the life and enduring contributions of economists such as Adam Smith, Alfred Marshall, David Ricardo, and Leon Walras. Wherever possible, portraits accompany the text. Mark Blaug is Emeritus Professor of the Economics of Education at the University of London Institute of Education, and Consultant Professor (...) at the University of Buckingham. He is the author of numerous articles and books in the field of economics and economic history, including Economic Theory in Retrospect, an established classic in the field. (shrink)

Economists, who adopt the principle of consumer sovereignty, treat preferences as unquestioned for the purposes of their analysis. They also represent preferences for future outcomes as having value in the present. It is shown that these two characteristics of neoclassical modelling rest on similar reasoning and are essential to achieve high aggregatability of preferences and values. But the meaning and broader implications of these characteristics vary according to the arguments given to support these methodological choices. The resulting ambiguities raise questions (...) regarding economists' attitudes towards the study (by other disciplines) of preference formation and reformation. Under a strong, positivist interpretation (which is philosophically problematic), consumer sovereignty represents a rejection of any meaningful study of these subjects; under a weaker, methodological understanding, consumer sovereignty merely draws a boundary between economics and other disciplines. The weaker version is argued to be more defensible, and economists are urged to engage in interdisciplinary work that will clarify how preferences are formed, criticised and reformed. (shrink)

Economics is today among the most influential of all professions. Economists alter the course of economic affairs and deeply affect the lives of current and future generations. Yet, virtually alone among the major professions, economics lacks a body of professional ethics to guide its practitioners. Over the past century the profession consistently has refused to adopt or even explore professional economic ethics. As a consequence, economists are largely unprepared for the ethical challenges they face in their work.The Economist's Oath challenges (...) the economic orthodoxy. It builds the case for professional economic ethics step by step-first by rebutting economists' arguments against and then by building an escalating positive case for professional economic ethics. The book surveys what economists do and demonstrates that their work is ethically fraught. It explores the principles, questions, and debates that inform professional ethics in other fields, and identifies the lessons that economics can take from the best established bodies of professional ethics. George DeMartino demonstrates that in the absence of professional ethics, well-meaning economists have committed basic, preventable ethical errors that have caused severe harm for societies across the globe. The book investigates the reforms in economic education that would be necessary to recognize professional ethical obligations, and concludes with the Economist's Oath, drawing on the book's central insights and highlighting the virtues that are required of the "ethical economist."The Economist's Oath seeks to initiate a serious conversation among economists about the ethical content of their work. It examines the ethical entailments of the immense influence over the lives of others that the economics profession now enjoys, and proposes a framework for the new field of professional economic ethics. (shrink)

Drawing on insights from evolutionary psychology and modern neuroscience, this paper highlights propositions about human nature that have far reaching consequences, when applied to leadership. We specifically examine the main factors of human survival and extend them to a model for leadership in the twenty-first century. The discussion concludes with an outlook on the organizational and structural conditions that would allow for better and more balanced leadership.

Those concerned over the excessive commercialization of health care, to the detriment of both professional and patient-centered values, commonly propose remedies that assume that meaningful change can occur largely within the health care sector. I argue instead that a major shift in the public culture and political discourse of the U.S. will be required if the commercialization of health care is to be adequately addressed. The notion that health and health care are commodities to be bought and sold in the (...) market is encouraged by the ideology that is preferably called economism, though also today labeled neoliberalism, market fundamentalism, market triumphalism, and other terms. This ideology has been successful in pushing aside alternative accounts and policies over the past four decades, so that economism-inspired policies seem both commonsensical and inevitable. This dominance of the public political discourse hides two important facts about economism — it is a quasi-religious ideology that pretends to be a reflection of economic science; and it is shot through with internal contradictions that ultimately render it self-defeating as a guide to policy. Advocates for reduced commercialism in health care must directly address economism and attempt to educate the public and policymakers about its flaws. (shrink)

Social thinkers frequently remind us that people differ in their views on what constitutes personal well-being, but that even when they don't differ, they disagree over the extent to which one person's well-being can be permitted to be traded off against another's. In this paper I show, by offering an account of the development of development economics, that in professional debates on social policy, economists speak or write as though they agree on values but differ on their reading of facts. (...) A number of ethicists have concluded from this near-exclusive interest in facts that modern economics must be an ethical desert. It is shown here that the reason research economists analyze facts rather than values is that modern economics is built on broad ethical foundations, capable of being reduced as special cases to the various ethical theories that are currently on offer. Ethics has taken a back seat in modern economics not because contemporary economists are wedded to a “value-free” enterprise, but because the ethical foundations of the subject were constructed over five decades ago and are now regarded to be a settled matter. (shrink)

This article is about Otto Neurath’s infamous proposal to combat metaphysics by creating and publishing an index of prohibited words. The logic of this proposal is explicated in the frameworks of Neurath’s philosophy of science and his International Encyclopedia of Unified Science. I reconstruct two arguments within Neurath’s project to defend the proposal against criticisms from Neurath’s colleagues and against the charge that philosophers ought not be censors.

The current Covid-19 pandemic has attracted significant attention from epidemiologists and economists alike. This differs from the 1918–1920 Spanish influenza pandemic, when academic economists hardly paid attention to its economic features, despite its very high death toll. We examine the reasons for that by contrasting the ways epidemiologists and economists reacted to the Spanish flu at the time and shortly after the pandemic. We also explore, but less extensively, some economic and epidemiologic writings during the twenty-five years that followed.

Goldman joins the ranks of epistemologists, philosophers, and science studies scholars trying to use economic models of science. For Goldman, these models are part of social rather than individual epistemics. His hope is that these models will illustrate that non-epistemic goals of individual scientists such as professional success do not necessarily undermine epistemic aims of science such as the acquisition of truth. This paper shows that there are inconsistencies between Goldman's individual and social epistemics, that these models do not live (...) up to Goldman's standards of evaluation, and that the economic models that Goldman uses are not social. (shrink)

Jeffrey Friedman credits Popper for calling attention to our scientific ignorance, but faults him for failing to recognize that we are at least as ignorant about politics as we are about science. He also credits Hayek for realizing that the public could not successfully engage in piecemeal economic regulation, but faults him for not recognizing that this is due to the public's ignorance of economic theory. Friedman suggests that the types of ignorance overlooked by Popper and Hayek compromise the very (...) possibility of democracy—or at least social democracy. He assumes, however, that the success of social democracy and “piecemeal social engineering” depend upon their ability to produce “good” policies. This does not do justice to Popper's views about democracy and piecemeal engineering, and it also presumes an underlying economism that Popper criticized—but to which Friedman and Hayek adhere. (shrink)

The environmental economic response to mainstream neo-classical economics’ disconnect from the natural world was to value external environmental costs and include those into decisions about human welfare. The ecological economic response, heavily influenced by systems ecology, brought the concept of ecological scale or carrying capacity, as a limit to human choice. The divisions between these two theories are not merely cosmetic as illustrated by the highpolitical stakes in recent economic and environmental debates. This article concerns itself specifically with the question (...) how Christian economists position themselves towards the unfolding ecological and economic crises. It is shown that the main positions taken in the policy debates on economy and ecology are closely mirrored in the broader Christian economic community, raising the question whether the Christian economic tradition does have anything particular to offer in response to the ecological and economic crises. We approach this question from two angles, first, reviewing the literature on an earlier debate by the Association of Christian Economists on what Christian economists should be doing and, second, reviewing the literature on the relationships between Christianity and environmental beliefs and behaviour. With reference to eco-theological literature on the varying theological views on the relationship between humanity and the rest of creation, and on different expectations of the eschaton, it is shown why such diverging positions are taken among Christian economists. Nevertheless, the objective reality of Jesus Christ demands a particular Christian ethics and behaviour, which in turn, kindles fertile questions for Christian economists in their practical engagement withthe economic and ecological sciences and with broader culture. (shrink)

A number of recent discussions about ethical issues in climate change, as engaged in by economists, have focused on the value of the parameter representing the rate of time preference within models of optimal growth. This essay examines many economists' antipathy to serious discussion of ethical matters, and suggests that the avoidance of questions of intergenerational equity is related to another set of value judgments concerning the quality and objectivity of economic practice. Using insights from feminist philosophy of science and (...) research on high reliability organizations, this essay argues that a more ethically transparent, real-world-oriented, and flexible economic practice would lead to more strongly objective, reliable, and useful knowledge. (shrink)

ABSTRACT The austerity measures adopted after the financial crisis of 2008–2009 accelerated the critical scholarship on neoliberalism and the media. This article uses discourse theory to analyse how The Economist newspaper constructed a ‘euphemised’ neoliberal discourse amid the European austerity drive in the years 2010–2012. The article argues for distinguishing between different types of neoliberalism and defines euphemised neoliberalism as a discourse that is characterised by a post-political style, a posture typical of The Economist’s elite journalistic identity. The article discusses (...) the type of discourse being articulated via The Economist’s rhetorical strategies of moral and rational austerity, anti-politics and austerity as modernisation. These strategies allowed for a nuanced and even a critical debate on European austerity policies, but ultimately The Economist produced a depoliticised understanding of economic policy-making, as the need for austerity and reforms could not be questioned. Finally, the article discusses how the austerity measures adopted in 2010 led to a crisis in the previously constituted euphemised neoliberal discourse and accelerated counter-hegemonic discourses, such as authoritarian forms of neoliberalism. (shrink)

This essay examines the administrative state as a ubiquitous phenomenon that results in part from the mismatch of incentives. Using two dramatic episodes in the history of economics, the essay considers two types of mismatch. It then examines how economists increasingly endorsed the “general good” as a unitary goal for society, even at the expense of private hopes and desires. More than this, their procedures and models gave them warrant to design mechanisms and advocate for legislation and regulations to “fix” (...) the supposedly suboptimal choices of individuals in service to the overarching goal. The rise of New Welfare Economics dealt an additional blow to the sovereignty of individual motivations, notwithstanding that Hayek and Buchanan warned that this engineering approach allowed social goals to override individual preferences. Throughout, the argument is that it is important to recognize that people within or advising the administrative state are influenced by the same sorts of motivations as actors throughout the economy. (shrink)

This article addresses the difficulties that the phases of economic evaluations give rise to in theory and practice. It provides a brief outline of the meaning of economism — as a term and a concept — and then explores the issues that are related to the measurement and monetary valuation of the items to be included in economic evaluations, otherwise known as the valuation problem. The article also deals with the commensurability problem and the intrinsic value problem. Finally, some of (...) alternatives and recommendations that can help avoid the pitfalls of economism are discussed. (shrink)

Abstract Sam Peltzman has brought discipline and common sense to economic analyses of voting and representation. Yet his approach suffers, like that of other economists, from disciplinary provincialism and a singular devotion to econometrics as a research methodology. Political science offers alternative models and research methods that can enliven and deepen the political analyses of Peltzman and other economists.

David Hume's contributions span every branch of human inquiry: ethics, epistemology, metaphysics, political philosophy, aesthetics, religion, and economics. While reams of scholarship have been devoted to Hume's thought, his work on economics is still relatively unexplored. In this book, philosopher Margaret Schabas and intellectual historian Carl Wennerlind provide the definitive account of Hume's "worldly philosophy." Hume, they show, was intent on getting out of the armchair and ensuring that his philosophy had practical implications-to subdue superstition, soften religious zealotry, and promote (...) harmonious relations in modern society. Part of this endeavor involved material betterment, and Hume brought to his economic thought a richly astute understanding of human agency, of how our minds work and prompt our actions. The authors paint him as the quintessential proponent of liberalism and a dedicated supporter of commercial modernization. However, they note that he was not an unqualified enthusiast-he saw the potential of modern commerce to increase debt, fuel runaway inflation, and feed factionalism in political rule, for example, and he fretted over the potential for international conflicts to spiral out of control. Given Hume's friendship with Adam Smith, and his influence over nineteenth-century thinkers as prominent as Thomas Malthus, John Stuart Mill, and Karl Marx, a serious appraisal of this side of his oeuvre is long overdue. As two of Hume's closest readers, Schabas and Wennerlind offer just that in this delightfully wide-ranging exploration of the history of philosophy and modern economic thought. (shrink)

Pay-for-performance represents an effort to improve the quality of health care by paying physicians more if they meet specified target measures. There are both empirical and theoretical reasons to be deeply suspicious of P4P schemes applied at the level of the individual physician or health provider. Most P4P programs were implemented before there were any good data to demonstrate that they achieved the desired results. Once such schemes were in use, the available data are far from reassuring. Common findings are (...) that providers may do more of the specific procedure that is being measured, but in the process may neglect to do other things that equally affect quality of care. Payers often find that the cost of implementing a P4P program far exceeds the value of the very modest resulting improvements; and payments may unfairly benefit providers who are already meeting quality targets while disadvantaging those who make the most strenuous efforts to improve. (shrink)

ABSTRACT This article examines the reaction to Owen’s work in the circle associated with the liberal Journal des Économistes. It attempts to reconstruct the liberal argument against utopian socialist schemes of ‘regeneration’ and ‘redistribution’, and against those associated with Robert Owen in particular. It focuses on the works of Louis Reybaud (1799–1879) and Adolphe Blanqui (1798–1854) and their critical engagement with the writings of Saint-Simon, Fourier and Owen. It offers a detailed analysis of Reybaud’s Études sur les réformateurs, ou socialistes (...) modernes (1840), which did much to popularise the term ‘socialist’ in France, and Blanqui’s Histoire de l’économie politique en Europe depuis les anciens jusqu’à nos jours (1837). The article’s central argument is that these works appeared at an inflection point in the history of liberal political economy in France. Both started from the premise, shared with the socialist authors they were analysing, but increasingly suspect to liberal economic opinion, that the solution to the social question lay in the proper harnessing of the spirit of association as opposed to unregulated competition. The question at issue for Blanqui and Reybaud was what form this ‘associationism’ should take. (shrink)

It is 50 years since the first Nobel Prize in economics was awarded to Jan Tinbergen and Ragnar Frisch. This article analyzes the collaborations between these pioneers of econometrics which spanned four decades and various subfields in economics, based on records of their correspondence. It is demonstrated that, while Frisch was largely responsible for theoretical breakthroughs, Tinbergen was responsible for making them public and popularizing them. This is especially relevant for understanding the development of econometric models in the 1950s, decision (...) models of the 1950s, and subsequent work on utility measurement. This division of labor is analyzed in relation to the goals they pursued in their research and their respective perfectionistic and pragmatic approaches to economic science. Both men shared a sense of deep social responsibility, but differences in their personalities and approaches to science generated important differences in scientific recognition and policy influence. Although they are both widely remembered for helping to turn economics into a quantitative empirical science, this article shows that they were motivated by separate personal and political goals which shaped their scientific approaches. (shrink)

Physiocracy is still sometimes seen as an oddly archaic programme of agricultural development. The aim of this paper is to show that one of the Physiocrats’ prime concerns was to take the subject of agriculture out of international relations. The fiscal regime that was central to Physiocracy was designed to make every large territorial state self-sufficient and, by doing so, to break the connection between modern great power politics, the international division of labour, and the politics of necessity. From this (...) perspective, the memorandum that Victor Riqueti, marquis de Mirabeau, sent to the Berne Economic Society in 1759, contains an early indication of what, had the Physiocratic programme ever been implemented in full, a world reformed on Physiocratic lines might have looked like. (shrink)