ABSTRACT:In response to criticism of empirical or “positive” approaches to corporate social responsibility (CSR), we defend the importance of these approaches for any CSR theory that seeks to have practical impact. Although we acknowledge limitations to positive approaches, we unpack the neglected but crucial relationships between positive knowledge on the one hand and normative knowledge on the other in the implementation of CSR principles. Using the structure of a practical syllogism, we construct a model that displays the (...) key role of empirical knowledge in fulfilling a firm’s responsibility to society, paying special attention to the implications of the “ought implies can” dictum. We also defend the importance of one particular class of empirical claims; namely, claims from the field of economics. Even positive economic theory, which is often criticized for endorsing profits rather than values, can cooperate in intriguing ways with non-economic concepts in the implementation of CSR goals. (shrink)

There is not, of course, a one-to-one relation between policy conclusions and the conclusions of positive economics; if there were, there would be no ...

In this paper I investigate two denials in Milton Friedman's Nobel Lecture (1976). The first is [i] the denial that 'Economics and its fellow social sciences' ought to be 'regarded more nearly as branches of philosophy.' The second is [ii] the denial that economics is 'enmeshed with values at the outset because they deal with human behaviour' (267). I show that Friedman's appeal to his methodology in the Nobel lecture fails on conceptual grounds internal to Friedman's methodology. Moreover, (...) I show that the failure is related to a broader systematic problem: when properly understood, Friedman's methodology shows that positive economics is (in a non-trivial sense) enmeshed in values. In order to account for Friedman's overreaching, I turn to the charged social context regarding Friedman's purported involvement with the Chicago Boys, who were then serving Chilean Dictator Pinochet. I conclude by explaining why I re-open the old chestnut of values in positive science. The episode allows me to raise a question of fundamental import about the relationship between expertise and society. (shrink)

Milton Friedman's 1953 essay 'The methodology of positive economics' remains the most cited, influential, and controversial piece of methodological writing in twentieth-century economics. Since its appearance, the essay has shaped the image of economics as a scientific discipline, both within and outside of the academy. At the same time, there has been an ongoing controversy over the proper interpretation and normative evaluation of the essay. Perceptions have been sharply divided, with some viewing economics as a (...) scientific success thanks to its adherence to Friedman's principles, others taking it as a failure for the same reason. In this book, a team of world-renowned experts in the methodology of economics cast new light on Friedman's methodological arguments and practices from a variety of perspectives. It provides the 21st century reader with an invaluable assessment of the impact and contemporary significance of Friedman's seminal work. (shrink)

This paper presents arguments that challenge what I call the fact/value separability thesis: the idea, roughly, that factual judgements can be made independently of judgements of value. I will look at arguments to the effect that facts and values are entangled in the following areas of the scientific process in economics: theory development, economic concept formation, economic modelling, hypothesis testing, and hypothesis acceptance.

Positive economic models aim to provide truthful explanations of significant economic phenomena. While the notion of ‘preferences’ figures prominently in micro-economic models, it suffers from a remarkable lack of conceptual clarity and rigor. After distinguishing narrow homo economicus models from broader ones and rehearsing the criticisms both have met, I go into the most promising attempt to date at addressing them, developed by Hausman. However, his definition of preferences as ‘total comparative evaluations’, I argue, plays into the general disregard (...) that economists have for human psychology. My alternative definition of preferences as ‘overall comparative evaluations’ – and hence as one of the many factors that influence people’s behavior – allows for more adequate causal explanations of people’s dutiful, committed, and norm-guided actions. Against Hausman but in agreement with Sen, it also allows for counterpreferential choice. (shrink)

In this article, the author offers a discussion of the evidential role of the Galilean constant in the history of physics. The author argues that measurable constants help theories constrain data. Theories are engines for research, and this helps explain why the Duhem-Quine thesis does not undermine scientific practice. The author connects his argument to discussion of two famous papers in the history of economic methodology, Milton Friedman's 'Methodology of Positive Economics', which appealed to example of Galilean Law (...) of Fall in its argument; and Vernon Smith's 'Economics in the Laboratory'. While the author offers some criticism of Friedman and Smith, most of the article is a friendly reinterpretation of their insights. (shrink)

In this paper, I shall defend two main claims. First, Friedman’s famous paper “On the methodology of positive economics” (“F53”) cannot be properly understood without taking into account the influence of three authors who are neither cited nor mentioned in the paper: Max Weber, Frank Knight, and Karl Popper. I shall trace both their substantive influence on F53 and the historical route by which this influence took place. Once one has understood these ingredients, especially Weber’s ideal types, many (...) of F53’s astonishing sentences like “the more significant the theory, the more unrealistic the assumptions”, make good sense. Second, I shall claim that the much-discussed question whether Friedman’s essay espouses an instrumentalist or a realist position, is the wrong question to be asked. I shall illustrate that by a comparison with examples from physics in which also unrealistic assumptions are made. Also there, the question whether these assumptions are indicators of instrumentalism or realism is not appropriate. Cleared from these misunderstandings, F53 presents itself as an interesting and reasonable but much less controversial contribution to the methodology of economics. (shrink)

In this article, the author offers a discussion of the evidential role of the Galilean constant in the history of physics. The author argues that measurable constants help theories constrain data. Theories are engines for research, and this helps explain why the Duhem-Quine thesis does not undermine scientific practice. The author connects his argument to discussion of two famous papers in the history of economic methodology, Milton Friedman’s “Methodology of Positive Economics,” which appealed to example of Galilean Law (...) of Fall in its argument; and Vernon Smith’s “Economics in the Laboratory.” While the author offers some criticism of Friedman and Smith, most of the article is a friendly reinterpretation of their insights. (shrink)

Uskali Mäki has offered an innovative scientific realist account of Milton Friedman’s 1953 essay, ‘The Methodology of Positive Economics’, which directly challenges the dominant instrumentalist interpretation. This paper offers critical reflections on Mäki’s approach and interpretation. It is argued that Mäki’s method of rereading-rewriting the text is problematic; that an unforced instrumentalist account of unrealistic assumptions can be extracted from the text itself; and that seemingly realist passages can be plausibly read as expressing an instrumentalist stance.

In this paper, I shall defend two main claims. First, Friedman’s famous paper “On the methodology of positive economics” (“F53”) cannot be properly understood without taking into account the influence of three authors who are neither cited nor mentioned in the paper: Max Weber, Frank Knight, and Karl Popper. I shall trace both their substantive influence on F53 and the historical route by which this influence took place. Once one has understood these ingredients, especially Weber’s ideal types, many (...) of F53’s astonishing sentences like “the more significant the theory, the more unrealistic the assumptions”, make good sense. Second, I shall claim that the much-discussed question whether Friedman’s essay espouses an instrumentalist or a realist position, is the wrong question to be asked. I shall illustrate that by a comparison with examples from physics in which also unrealistic assumptions are made. Also there, the question whether these assumptions are indicators of instrumentalism or realism is not appropriate. Cleared from these misunderstandings, F53 presents itself as an interesting and reasonable but much less controversial contribution to the methodology of economics. (shrink)

When President Reagan and Prime Minister Thatcher adopted the neoliberal doctrine as the paradigm of economics, there was no evidence that the move would have been successful, but thirty years on, the recurrent crises that culminated in 2008 suggest a serious mis-match between expectations and outcomes: a re-examination of the paradigm is in order. This book focuses on Milton Friedman's formulation of the neoliberal doctrine, and analyses two aspects that were essential to turning it into a fully-fledged paradigm: the (...) attribution of scientific status to positive economics, which led to informing public policies on the requirements of the market; and the characterisation of economic freedom as capable of promoting political freedom, which led to identifying free market with democracy. The book exposes Friedman's methodological argument for attributing positive economics scientific status as a failure, and his characterisation of economic freedom as a delusion; it identifies in the emergence as the mainstream in economics of the neoclassical synthesis, which borrowed from Walras' the mathematical treatment of equilibrium but not the ethical and social framework in which it was inscribed, a development that facilitated the transition from the Keynesian to the neoliberal paradigm. Dr. Mosini shows that the gigantic bail-outs carried out courtesy of the public purse, which institutionalised the practice of collectivising losses while keeping profits private, were no accident, but the consequence of the rethinking of the function of lender of last resort according to Friedman's conception of rationality in relation to risk, combined with his interpretation of the 1930s recession. The book concludes that the neoliberal paradigm has served the interests of the economically powerful social strata it was designed to benefit extremely well, but that the deep, and deepening, injustice it has brought about calls for a complete rethinking of the paradigm of economics according to ethical principles respectful of human values. This book should be of interest to students and researchers of Political Economy, Economic Methodology, History of Economic Thought and Philosophy. (shrink)

Imagine asking a typical, well informed, contemporary philosopher whether or not she considered biology to be a science. Our informant, being a philosopher, would not necessarily respond with the straightforward “of course” that would be expected from anyone else. She might first reason through a complicated and heavily qualified definition of science, or she might distinguish certain parts of biology that she held to be more clearly scientific than others. If she were partial to a certain sort of critical stance, (...) she might question the political basis for wishing to dignify certain parts of our inquisitive practice with the honorific ‘scientific’ in the first place. But there is at least one thing that she would almost certainly not do. She would not simultaneously embrace a version of the conventional philosophical view of science and deny that biology is a science. This is despite the fact that, as she will acknowledge, biology exploits a range of methodologies and explanatory strategies that have not yet admitted of systematic, consensual philosophical explication. (shrink)

By critically interrogating the methodological foundations of orthodox economic theory, Tal Gilead challenges the growing conviction in educational policymaking quarters that, being more scientific than other forms of educational investigation, inquiries grounded in orthodox economics should provide the basis for educational policymaking. He argues that the main methodological problem with accepting orthodox economic theory as a guide to educational policymaking is not, as commonly claimed, its alleged reliance on a materialistic and egoistic conception of human nature, but rather its (...) embracement of a value-free conception of science and the hypothetico-deductive model of prediction. These, Gilead maintains, prevent economics-based investigations from adequately dealing with questions of human agency and ethics, which are central to education. Orthodox economic thinking, he concludes, should not be accorded a dominant role in educational policymaking, but rather should only be viewed as providing one additional source of insight that has limited applicability. (shrink)

Neoclassical economic theory in its pretensions to scientific status is founded on one of the variants of a now discredited positivism. Neoclassical economic theory claims that there are two distinct areas of economic research: positive economics and normative economics. The former is assumed to deal with the cognitive as scientific content of economics while the later focuses on welfare or equity issues. I argue that the reliance of the whole theoretical structure of economics on the (...) normative postulate of rationality renders neoclassical economics a normative discipline. I also argue that neoclassical economics should thus be viewed as an instance of applied ethics rather than as applied mathematics, say. Finally, it is suggested that neoclassical economics, if its scientific pretensions are to be taken seriously, should be absorbed theoretically into general anthropology. (shrink)

Niklas Luhmann and Jacques Derrida start with a common assumption in their analyses of the law and the economy - the foundational paradox of social institutions. But then autopoiesis and deconstruction move into opposite directions. Luhmann pursues the question of how de-paradoxification constructs the immanence of social institutions and builds a world of autopoietic social systems. By contrast, Derrida's thought aims at the transcendence of social institutions through their re-paradoxification. However, there is a hidden supplementarity of autopoiesis and deconstruction which (...) makes it worthwhile to relate the theories to each other. Derrida's distinction of writing/speech is necessarily blind toward Luhmann's distinction of consciousness/communication, but is, at the same time, continuously provoked by it. On another level, the opposite happens. Luhmann's autopoiesis is permanently irritated by Derrida's différance but is at the same time unable to conceptualize it. This complementary blindness of their distinctions directrices is a permanent source of mutual irritation which requires a reformulation of the social and of the possibility of justice. (shrink)

Son yıllarda başarılı yönetişimin ekonomik performansa etkisi tartışmaların odak noktası haline gelmiştir. Yönetişimin ekonomik büyüme ve gelişme üzerindeki rolünün önemli olduğu düşünülmektedir. Bu çalışmada OECD ülkelerinin, yönetişim değişkenleri ve bazı makroekonomik değişkenler açısından kümelenmeleri amaçlanmaktadır. Bu sayede söz konusu ülkelerin birbirlerine göre konumlarının yanı sıra Türkiye ile olan konumları da belirlenmiştir. Otuz beş OECD üyesi ülkenin ele alındığı araştırmada kümeleme analizi kullanılarak yedi değişkene ilişkin derlenen 2016 yılı verileri analiz edilmiştir. Analiz sonuçlarına göre; bu ülkeler üç farklı kümede gruplanmış ve (...) Türkiye’nin Meksika ile aynı küme altında toplandığı tespit edilmiştir. (shrink)

The Foundations of Positive and Normative Economics: A Handbook is the first book in a new series by Andrew Caplin and Andrew Schotter. There is currently no guide available on the rapidly changing methodological frontiers of the field of economics. Economists have been introducing new theories and new sources of data at a remarkable rate in recent years, and there are widely divergent views both on how productive these expansions have been in the past, and how best (...) to make progress in the future. The speed of these changes has left economists ill at ease, and has created a backlash against new methods. The series will debate these critical issues, allowing proponents of a particular research method to present proposals in a safe yet critical context, with alternatives being clarified. This first volume, written by some of the most prominent researchers in the discipline, reflects the challenges that are opened by new research opportunities. The goal of the current volume and the series it presages, is to formally open a dialog on methodology. The editors' conviction is that such a debate will rebound to the benefit of social science in general, and economics in particular. The issues under discussion strike to the very heart of the social scientific enterprise. This work is of tremendous importance to all who are interested in the contributions that academic research can make not only to our scientific understanding, but also to matters of policy. (shrink)

Extensive review of academic writings on the convergence of religions (COR) in Nigeria shows that many online academic papers and related conversations gave more attention to its negative implications. Agreeably, Nigeria is the hotbed of religious crises in Africa. However, with the benefits of hindsight, filling the gap of insufficient capture of the positive impact of COR is considered in this exercise with three questions in view: (1) Where do religions meet? (2) Why do religions meet? (3) What are (...) the positive implications of their convergence in Nigeria? Answers were adequately captured with examples, scenarios, case studies, historical evidence, and concomitant academic literature. Overall, this exercise projected three arguments. Firstly, it posited that commitment to religion is not at the heart of COR in Nigeria, rather, COR is premised on personal or group interests. Secondly, it argued that positive reflections on the COR can promote inter-religious tolerance, peace, and unity. Thirdly, it proposed that the COR has far-reaching positive implications socially, politically, and economically. Lastly, it made brief recommendations for improved co-existence and nation-building. Contribution: This article contributes to inter-religious dialogue in Africa as it focuses on the social, political and economic value of religion in Nigeria. (shrink)

The author finds no support for the claim that J. M. Keynes had severe reservations, in general, as opposed to particular, concerning the application of mathematical, logical and statistical methods in economics. These misinterpretations rest on the omission of important source material as well as a severe misconstrual ofThe Treatise on Probability (1921).

The original position together with the veil of ignorance have served as one of the main methodological devices to justify principles of distributive justice. Most approaches to this topic have primarily focused on the single person decision-theoretic aspect of the original position. This paper, in contrast, will directly model the basic structure and the economic agents therein to project the economic consequences and social outcomes generated either by utilitarianism or Rawls’s two principles of justice. It will be shown that when (...) the differences in people’s productive abilities are sufficiently great, utilitarianism dominates Rawls’s two principles of justice by providing a higher level of overall well-being to every member of society. Whenever this is the case, the parties can rely on the Principle of Dominance (which is a direct implication of instrumental rationality) to choose utilitarianism over Rawls’s two principles of justice. Furthermore, when this is so, utilitarianism is free from one of its most fundamental criticisms that it ‘does not take seriously the distinction between persons’ (Rawls 1971 [1999]: 24). (shrink)

In Part 1 of this wide-ranging interview, Tony Lawson discussed his role in, and relationship to, Critical Realism as well as various defences of mathematical modelling in economics. In Part 2 he t...

In Part 1 of this wide-ranging interview Tony Lawson first discusses his role in the formation of IACR and how he relates to the generalized use of the term ‘Critical Realism’. He then provides com...

In an attempt to re-envision economics, the paper analyses Robert Heilbroner’s philosophy of economics through the lens of Max Weber’s philosophy of science. Specifically, Heilbroner’s position on vision, ideology and value-freedom is examined by contextualising it within a framework of … More ›.

Exploring recent controversies over the role of ethics in economics, The Boundaries of Technique encourages scholars and students to discover and debate the ways in which economics is insulated from ethics, and the ways in which it is dependent upon it. Ultimately, by bringing readers to a deeper awareness of the intrinsic involvement of the individual and the responsibility of moral choice, Yuengert makes an invaluable contriubtion to the study and practice of economics.

This article presents a skeleton of a potential paradigm of human flourishing and happiness in a free society. It is an exploratory attempt to construct an understanding from various disciplines and to integrate them into a clear, consistent, coherent, and systematic whole. Holding that there are essential interconnections among objective ideas, the article specifically emphasizes the compatibility of Aristotelianism, Austrian Economics, Positive Psychology, and Ayn Rand’s Objectivism arguing that particular ideas from these areas can be integrated into a (...) paradigm of human flourishing and happiness based on the nature of man and the world. Such a paradigm will help people to understand the world and to survive and flourish in it. It is hoped that the paradigm will grow and evolve as scholars engage, question, critique, interpret, and extend its ideas. Our goal is to have a paradigm that accords with reality and there is always more to learn from reality. (shrink)

In this paper we discuss how Australian feminism has contributed to a better understanding of women’s economic position within Australian society. Through this analysis we seek to shed some light on the current implementation of the ‘women in business’ policy in Australia. We trace the development of this position from the early beginnings of unionism and wage centralisation through to the social change movements of the 1960s and 1970s. We then examine how the neo-liberal turn of the 1990s manifested itself (...) in a move from a focus on numerical representation of women, through Equal Employment Opportunity and Affirmative Action policies and initiatives, to one that concentrated on an individualist approach to women in business. We conclude that feminism has had its most significant impact at the level of public policy. However, recent epistemological turns in Australian feminism appear to have resulted in less attention being paid to materialist concerns, and furthermore have not been able to resolve the sameness/difference divide that continues to haunt feminist philosophy. (shrink)

This essay argues in favor of retaining the positive/normative distinction in economics, in spite of developments in methodology and epistemology that have cast doubt on the possibility of a “value-free” economics. The central claim is that it is worthwhile to distinguish between positive economic analysis and normative judgments, even if economics is viewed as being permeated with ethical values. This argument is presented without trying either to demonstrate that there is a profound epistemological difference between (...) science and ethics or to show that positive science can afford us access to objective reality. (shrink)

Objective: To map the tone of local and global economic information transmitted in news and non-news TV programming during economic recovery, and to resolve a conflict in the literature between research where a negative trend in economic news was identified and studies which concluded that economic news reflects actual economic circumstances. Method: A content analysis of 140 hours of prime-time programming aired by commercial networks and public broadcasting in Israel during one month. Results: Local news reflects fairly accurately current trends (...) in the stock exchange while still maintaining a general tendency to employ a negative tone more frequently than a positive tone, even during economic recovery. Global economic news is more positive in tone than local economic news. References to the economy in the news are more positive and frequent than references to the economy in non-news programming. The tone of economic news in public broadcasting is more negative than the tone of economic news aired on commercial stations. Conclusions: The existence of a negative bias in economic news depends on the reported event. While News about the stock exchange is not biased, less concrete news is negatively biased. (shrink)