In this study, Don Ross explores the relationship of economics to other branches of behavioral science, asking, in the course of his analysis, under what interpretation economics is a sound empirical science. The book explores the relationships between economic theory and the theoretical foundations of related disciplines that are relevant to the day-to-day work of economics -- the cognitive and behavioral sciences. It asks whether the increasingly sophisticated techniques of microeconomic analysis have revealed any deep empirical regularities -- (...) whether technical improvement represents improvement in any other sense. Casting Daniel Dennett and Kenneth Binmore as its intellectual heroes, the book proposes a comprehensive model of economic theory that, Ross argues, does not supplant, but recovers the core neoclassical insights, and counters the caricaturish conception of neoclassicism so derided by advocates of behavioral or evolutionary economics. Because he approaches his topic from the viewpoint of the philosophy of science, Ross devotes one chapter to the philosophical theory and terminology on which his argument depends and another to related philosophical issues. Two chapters provide the theoretical background in economics, one covering developments in neoclassical microeconomics and the other treating behavioral and experimental economics and evolutionary game theory. The three chapters at the heart of the argument then apply theses from the philosophy of cognitive science to foundational problems for economic theory. In these chapters, economists will find a genuinely new way of thinking about the implications of cognitive science for economics, and cognitive scientists will find in economic behavior, a new testing site for the explanations of cognitive science. (shrink)

War often comes down to one thing: money. The role of economics in the study of both peace and war is arguably then the most important single factor when it comes to the study of defence. This excellent new book from Fanny Coulomb will be of interest not only to those involved in the burgeoning field of defence economics - it will also be of vital interest to students and academics from international relations, defence studies, philosophy and political science (...) backgrounds. (shrink)

Economic theories of democratic legitimacy have criticized deliberative accounts of democratic legitimacy on the grounds that they do not represent a practical possibility and that they create conditions that make actual democracies worse. It is not simply that they represent the wrong ideal. Rather, they are too idealistic – failing to show proper regard for the cognitive and moral limitations of persons and the depth of disagreement in democratic society. This article aims to show that the minimalist criterion of (...) democratic legitimacy is self-defeating and that even if there are minimal cognitive, moral, and social requirements for the possibility of practicable deliberative democracy, these limitations do not necessarily impose insuperable barriers for democratic deliberation as the normative basis of democratic legitimacy. Thus, the limiting facts do not dictate the structure of appropriate normative models of democracy in the way minimalists have supposed. (shrink)

This is a review of the book “The Future of Law and Economics” by American legal philosopher and judge Guido Calabresi (Moscow: Institut Gaidara, 2016). Author considers the theoretical aspects of the bilateral relations between the economic theory and legal studies developed by Calabresi. The author analyzes the differences between the previous tradition of the economic approach to law, which was based on the principle of epistemological expansion of economic theory into the field of legal (...) studies, and the common program of “law and economic”, which is aimed to find the basis for the bilateral dialogue between these sides of social knowledge. Both programs assume some alternatives for the formal analysis of law. The author discusses the concept of merit good and evaluates the prospects for the reception of this concept in legal philosophy. (shrink)

The goal of “Inclusive Economics” is to tie together various authoritative strands of contemporary economic theory into an easily comprehensible whole that illuminates the need for a broader approach to contemporary economic policymaking undistorted by obsolete 18th century rationalist assumptions about utility, ethics, worthiness and traditional culture. This is accomplished by elaborating the rationalist competitive ideal along the optimizing lines pioneered by Paul Samuelson (neoclassical economics); plumbing modifications necessitated by Herbert Simon's realist concepts of “bounded rationality” and (...) “satisficing”; refined further by applying a pragmatist outlook to probe the consequences of relaxing Enlightenment teleological, ethical, spiritual and cultural taboos. The exercise will explain why competitive market economies guided by rational utility-seeking invariably are less productive, efficient, just and beneficent than most theorists concede, and will illuminate the full range of interventions needed to achieve better outcomes. We call this program in its entirety “Inclusive Economics”, including the integration of micro and macroeconomics. (shrink)

This paper evaluates the economic assumptions of economic theory via an examination of the capitalist transformation of creditor–debtor relations in the 18th century. This transformation enabled masses of people to obtain credit without moral opprobrium or social subordination. Classical 18th century economics had the ethical concepts to appreciate these facts. Ironically, contemporary economic theory cannot. I trace this fault to its abstract representations of freedom, efficiency, and markets. The virtues of capitalism lie in the concrete (...) social relations and social meanings through which capital and commodities are exchanged. Contrary to laissez faire capitalism, the conditions for sustaining these concrete capitalist formations require limits on freedom of contract and the scope of private property rights. (shrink)

The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. We have changed, by insensible degrees, (...) our philosophy of economic life, our notions of what is reasonable and what is tolerable; and we have done this without changing our technique or our copybook maxims. Hence our tears and troubles. (shrink)

A review of Ch.M.A. Clark, Economic Theory and Natural Philosophy. The Search for the Natural Laws of the Economy. The key point of my critical appraisal is lack of univocal definition of nature, natural law and natural philosophy.

This article analyses how normative decision theory is understood by economists. The paradigmatic example of normative decision theory, discussed in the article, is the expected utility theory. It...

This paper analyzes the historical and cultural genealogy of the presumed separation between ethics and economic theory, taking publicly supported care for children of working mothers (or parents) as a case that illuminates problems for thinking about gender justice that arise because of these disciplinary boundaries and the particular concept of “the human individual” that is implicit in them. Care for children of working mothers is an issue that has been important in the West since the inception of (...) “second wave” feminism. However, I argue that the global expectation that women are responsible for care of small children, coupled with the reality that small children really must have caregivers, makes this issue pertinent to women everywhere, and it has lately been recognized as an issue for development and global justice. Predominant political philosophies and neoclassical economics have a common philosophical root in abstract individualist method. I argue that this has made possible a claim of intellectual respectability for neo-liberal politics that resists feminist and postcolonial critique, even though these critiques show its inability to deal with matters, such as the need for child care, that have moral issues inextricably involved in them. The economy of rationalindividual self-interest has so far only generated child care with a very large component of exploitation of caregivers. (shrink)

This paper analyzes the historical and cultural genealogy of the presumed separation between ethics and economic theory, taking publicly supported care for children of working mothers (or parents) as a case that illuminates problems for thinking about gender justice that arise because of these disciplinary boundaries and the particular concept of “the human individual” that is implicit in them. Care for children of working mothers is an issue that has been important in the West since the inception of (...) “second wave” feminism. However, I argue that the global expectation that women are responsible for care of small children, coupled with the reality that small children really must have caregivers, makes this issue pertinent to women everywhere, and it has lately been recognized as an issue for development and global justice. Predominant political philosophies and neoclassical economics have a common philosophical root in abstract individualist method. I argue that this has made possible a claim of intellectual respectability for neo-liberal politics that resists feminist and postcolonial critique, even though these critiques show its inability to deal with matters, such as the need for child care, that have moral issues inextricably involved in them. The economy of rationalindividual self-interest has so far only generated child care with a very large component of exploitation of caregivers. (shrink)

Roughly speaking all economists can be divided into two groups--those who agree with Milton Friedman and those who do not. Both groups, however, espouse the view that science is a series of approximations to a demonstrated accord with reality. Methodological controversy in economics is now merely a Conventionalist argument over which comes first--simplicity or generality. Furthermore, this controversy in its current form is not compatible with one important new and up and coming economic (welfare) theory called "the (...) class='Hi'>theory of the Second Best." In this paper I offer a Second Best meta-theory that says that (1) any compromise between simplicity and generality must yield a theory which is "third best" by these Conventionalist criteria; and (2) there exists a better way than a compromise. (shrink)

Ethical theories have been largely focused on finding and clarifying certain amoral principles. However fruitful the communication of moral principles for providing orientation in modern society might be, a serious omission has been made in that the problem of implementation is not addressed. Two fundamental question have neither been raised nor answered: Why should self‐interested individuals follow the proposed moral principles in their daily conduct? Are societal institutions of such a design that is in the power of the individuals to (...) follow these moral principles? It is shown in this article that an economic theory of morals does systematically address these two questions and therefore provides a firm basis for discussing the possibilities and boundaries of following the moral principles inherent in the long history of moral philosophy. (shrink)

Ethical theories have been largely focused on finding and clarifying certain amoral principles. However fruitful the communication of moral principles for providing orientation in modern society might be, a serious omission has been made in that the problem of implementation is not addressed. Two fundamental question have neither been raised nor answered: (1) Why should self‐interested individuals follow the proposed moral principles in their daily conduct? (2) Are societal institutions of such a design that is in the power of the (...) individuals to follow these moral principles? It is shown in this article that an economic theory of morals does systematically address these two questions and therefore provides a firm basis for discussing the possibilities and boundaries of following the moral principles inherent in the long history of moral philosophy. (shrink)

This paper draws a connection between recent developments in naturalized philosophy of science and the Buchanan research program in economics. Economic approaches in naturalized philosophy of science can be combined to form an economic philosophy of science. After giving an overview of some of these approaches, I lay out the fundamentals of the Buchanan research program. I argue that its main elements are a theory of interactions and a normative foundation in consensus which help (...) to answer some important criticisms of economic philosophy of science. (shrink)

Defiendo la legitimidad de la pregunta acerca de cuál puede ser el estatuto cognitivo de la Teoría Económica, y sostengo que la Teoría se comprende mejor como una rama de la Filosofía Política formal, en concreto, como una especie de contractualismo. Esto parece particularmente adecuado corno explicación de la Teoría deI equilibrio general. Dado el carácter intencional de las variables explicativas de la Teoría Económica y el papel de la información al realizar una elección, se argumenta que es improbable que (...) dicha Teoría pueda garantizar el poder predictivo, que le permitiría funcionar corno teoría factual en vez de corno teoría normativa.I defend the integrity of the question of what the cognitive status of economic theory could amount to, and I argue that the theory is best understood as a compartment of formal political philosophy, in particular a species of contractarianism. This seems particularly apt as an account of general equilibrium theory. Given the intentional character of the explanatory variables of economic theory and the role of information in effecting choice, it is argued that economic theory is unlikely to secure the predictive power that would enable it to function as a factual instead of a normative theory. (shrink)

This paper draws a connection between recent developments in naturalized philosophy of science and the Buchanan research program in economics. Economic approaches in naturalized philosophy of science can be combined to form an economic philosophy of science. After giving an overview of some of these approaches, I lay out the fundamentals of the Buchanan research program. I argue that its main elements are a theory of interactions and a normative foundation in consensus which help (...) to answer some important criticisms of economic philosophy of science. (shrink)

Presents a collection of papers by economists theorizing on the roles of altruism and morality versus self-interest in the shaping of human behavior and institutions. Specifically, the authors examine why some persons behave in an altruistic way without any apparent reward, thus defying the economist's model of utility maximization. The chapters are accompanied by commentaries from representatives of other disciplines, including law and philosophy.

This essay is concerned with the special difficulties that arise in testing and appraising mainstream economic theory. I argue that, like other theories designed to apply to complex open systems, it is very hard to confirm mainsteam economics. Parts can be tested and appraised, but the theory is only very weakly supported by evidence.

This paper draws a connection between recentdevelopments in naturalized philosophyof science and the Buchanan research programin economics. Economic approaches innaturalized philosophy of science canbe combined to form an economic philosophy ofscience. After giving an overview of someof these approaches, I lay out the fundamentalsof the Buchanan research program. I arguethat its main elements are a theory of interactionsand a normative foundation in consensus whichhelp to answer some important criticismsof economic philosophy of science.

Bastiat belonged to the optimist French tradition of liberal economic thought. Following Jean-Baptiste Say, he argued that the market was immensely creative in the discovery of new opportunities for improving human well-being and creating social harmony. He also recognized the importance of the entrepreneur, who earned a profit in contrast to the capitalist who simply earned a return for his investment. Although he was no great theorist, Bastiat demonstrated with relentless informal logic the social value of freedom. This is (...) best exemplified in his demonstration of the virtues of free trade. Bastiat anticipated modern public choice theory with his argument that people tried to use the coercive power of the state to get what they would not achieve by market transactions. He was also concerned with the moral virtue of liberty and in his final work, The Law, he showed how the modern system of law had been perverted. Instead of protecting individual rights it had become an instrument of plunder. Socialism was most malevolent form of plunder.Bastiat appartenait à la tradition optimiste française de la pensée économique libérale. Dans la lignée de Jean-Baptiste Say, il considérait que l’économie de marché recelait une créativité significative ouvrant sur la découverte de nouvelles opportunités permettant d’améliorer le bien-être humain et donnant parallèlement lieu a une harmonie sociale. Bastiat avait aussi conscience de l’importance de l’entrepreneur, celui qui glane des profits contrairement au capitaliste qui perçoit simplement une rémunération pour ses investissements. Bien que n’étant pas un très grand théoricien, Bastiat démontre avec une logique informelle implacable la valeur sociale de la liberté. La meilleure illustration en est sa démonstration des vertus du libre-échange. Bastiat anticipe la théorie moderne des décisions publiques quand il argumente que les individus essayent d’utiliser le pouvoir coercitif de l’Etat pour obtenir ce qu’ils ne peuvent obtenir à travers les transactions marchandes. Bastiat était aussi préoccupé par la vertu morale de la liberté et dans son dernier ouvrage, La Loi, il montre de quelle manière le système juridique moderne a été perverti. Au lieu de protéger les droits individuels, ce système est devenu un instrument de pillage public et le socialisme est la forme la plus pernicieuse de ce pillage. (shrink)

It is central to standard economic theory that people act on their interests. People are interested in a variety of things, so a range of values should influence market behavior. When engaged in commerce, however, people generally act for personal gain; the influence of other values usually just disappears in the marketplace. What is missing from the standard account is that people often act on proper subsets of their interests. Economics can, however, be extended to capture this insight. (...) Key Words: economic theory • attention • self-interest • social responsibility • discrimination. (shrink)

The use of the marginal concept in academic economic theory is found to underlie a good deal of current orthodox economic analysis. The marginal concept is used by thinkers with a collectivist bent as well as thinkers of an orthodox stamp. Marginal analysis is reasonably serviceable on some occasions but fraught with difficulties on others. When the marginal concept refers to a measurable factor, such as the marginal product of an additional unit of capital, it is unquestionably (...) useful for analysis. When it refers to a subjective situation, such as a marginal increase or decrease in satisfaction or demand, the analysis which rests upon it is often somewhat shaky. This paper is an attempt to point out some difficulties in the use of marginal analysis when such analysis refers to internal psychological states of economic men. The points made here will center about the concept of marginal satisfaction in income, that is to say, the assumption that the increment of satisfaction resulting from an additional unit of income, diminishes with size of income. (shrink)

Neoclassical economists use expected utility theory to explain, predict, and prescribe choices under risk, that is, choices where the decision-maker knows---or at least deems suitable to act as if she knew---the relevant probabilities. Expected utility theory has been subject to both empirical and conceptual criticism. This chapter reviews expected utility theory and the main criticism it has faced. It ends with a brief discussion of subjective expected utility theory, which is the theory neoclassical economists use (...) to explain, predict, and prescribe choices under uncertainty, that is, choices where the decision-maker cannot act on the basis of objective probabilities but must instead consult her own subjective probabilities. (shrink)

Part I. Political questions -- To the peacemakers -- New sceptisism -- Jewish problems -- The struggle between truth and propaganda -- Rights and duties of science -- History and hope : an analysis of our age -- A postscript -- Why we did we destroy Europe? -- Part II. Economic and social theory -- Collectivist planning -- Profits and enterprise -- The foolishness of history -- Toward a theory of conspicuous production -- The determinants of social (...) actions -- On liberalism and liberty -- Part III. The theory and practice of science -- Science : observation and belief -- Science and reality -- Creative imagination -- Genius in science -- Life transcending physic and chemistry -- Do life processes transcend physics and chemistry? -- Part IV. Mind, religion, art -- The hypothesis of cybernetics -- The body-mind revolution -- The scientific revolution -- Polanyi's logic-answer -- What is a painting. (shrink)

Chapter 1 is introductory. It identifies a cluster of philosophical problems that arise in the foundations of neoclassical economic theory. Issues growing out of the unusually tenuous connection between the theory and the world are singled out as especially troublesome. Is it, after all, possible for economics to look more like an empirical science like physics than like of branch of mathematics? ;Chapter 2 argues that economic methodology has been constrained by the application of faulty (...) class='Hi'>philosophy of science, or by the faulty application of philosophy of science. Economists with good intentions have wanted to protect economic theory from intrusions by "unscientific" constructs that had no clear operational criteria for their application. I argue that these attempts to protect economics went astray because theoretical constructs were consequently made to answer to an excessively stringent notion of economic data. Consequently, I find means to argue that all data and, in particular, psychological data about individual economic agents is relevant in the construction and confirmation of economic theory. Actually, I advance the stronger thesis that economics actually owes us an account of the behavior of individuals and that this makes it evident that economic theory should strive to cover the widest range of phenomena is reasonable. ;Chapter 3 takes this broadened notion of economic theory as a starting point and shows why the new outlook can be expected to enrich present theory and make progress towards the project of connecting economics to the phenomena. I include explanations of how prima facie difficulties with the new outlook overcome. In the course of doing this, many striking analogies between economics and linguistics, another science that closely related to psychology, are brought out. The relatively successful resolution of methodological problems in linguistics that parallel methodological problems in economics seems encouraging. ;Finally, Chapter 4 examines a bundle of problems concerning the relationship between microeconomics and macroeconomics. Most of the conclusions drawn in this chapter are negative: I argue that the connection between the micro and the macro is more difficult to fathom than many writers seem to imply. . . . UMI. (shrink)

The economic theory of the consumer, which assumes individual satisfaction as its goal and individual freedom to pursue satisfaction as its sine qua non, has become an important ideological element in political economy. Some have argued that the political dimension of economics has evolved into a kind of "secular theology" that legitimates free market capitalism, which has become a kind of "religion" in the United States [Nelson: 1991, Reaching for Heaven on Earth: The Theological Meaning of Economics. ; (...) 2001, Economics as Religion: From Samuelson to Chicago and Beyond ; Thurow: 1983, Dangerous Currents: The State of Economics ; Milbank: 1990, Theology and Social Theory, Beyond Secular Reason ]. Consumer theory in its ideological form provides an important base for this religion and is no longer merely a positive framework for understanding consumer choice or estimating market demand. The paper explores the view of the human being, the "anthropology," that is implicit in the economic theory of the consumer and compares its "theological" implications with the corresponding theological anthropologies in the Judaeo-Christian tradition. The paper outlines the assumptions of consumer theory and then focuses on three aspects of the theory from a critical theological perspective: the individual in community, property ownership, and human destiny. The principal conclusion is that consumer theory, viewed from this perspective, leads to a reductionist and existentially harmful view of human beings. The maximization of individual satisfaction raises genuine ethical issues when viewed as a political and religious value. The paper argues that the issues could be ameliorated if economists would include more explicit treatment of a social dimension and ethical alternatives in consumer theory and if theologians would give greater attention to economic theory. (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)