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 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)

Concern about the role and the limits of modeling has heightened after repeated questions were raised regarding the dependability and suitability of the models that were used in the run-up to the 2008 financial crash. In this book, Lawrence Boland provides an overview of the practices of and the problems faced by model builders to explain the nature of models, the modeling process, and the possibility for and nature of their testing. In a reflective manner, the author raises serious questions (...) about the assumptions and judgments that model builders make in constructing models. In making his case, he examines the traditional microeconomics-macroeconomics separation with regard to how theoretical models are built and used and how they interact, paying particular attention to the use of equilibrium concepts in macroeconomic models and game theory and to the challenges involved in building empirical models, testing models, and using models to test theoretical explanations. (shrink)

This book is about forming effective critiques of neoclassical economics. Its focus is on constructive criticism of the foundations neoclassical theory, beginning with what Alfred Marshall called the `Principles of Economics'. It concludes that there is still much that can be done to make neoclassical economics more realistic.

Until quite recently, some economic methodologists (particularly, those who began their careers in the late 1970s) were of the opinion that Karl Popper was misguided about economics. Some others claimed that Popper said little about economics. Yet, many economics students who began their appreciation of Popper after reading his Open Society and Its Enemies have quickly realized how easy that book is to understand because it is a generalization of neoclassical economics in terms of both methodological individualism and situational analysis. (...) While today it might be easy to complain that basing one's understanding of Popper on neoclassical economics leads to a narrow and useless appreciation of Popper, this too is misleading. The problem is not neoclassical economics but neoclassical economists. After all, Popper himself thought the best way to teach economists about his views concerning methodology was to emphasize that his views can easily be understood as a generalization of neoclassical economics. (shrink)

Nancy Cartwright claims that "Causality is a hot topic today both in philosophy and economics." She may be right about philosophers, but not when it comes to economists. Cartwright talks about "economics" but nothing she says about it corresponds to what is taught in economics classes. Today, economics is dominated by model builders—but not all models involve econometrics. While all model builders do respect an endogenous-exogenous distinction between variables, this distinction will not be on the basis of which type of (...) variable "causes" which, but on which variables are "determined" (and hence explained) by the model and those which are not. (shrink)

Have employment equity programs achieved the goal of equity for women in the workplace? We argue that they have not because gender stereotypes still persist. In fact, they may have created resentment and antagonism towards successful women and employment equity initiatives. Arguments are developed for the Canadian government to create a self-regulating system, in which the government plays a role of educator as opposed to monitor.

David Hume’s Treatise on Human Nature famously fell `deadborn from the press’ because it was too far ahead of its time. Basu’s book is one of a number published in recent years that suggest we are at last ready to put its precepts into action.1 Modern game theory provides a framework that makes Hume’s insights genuinely applicable, and I totaly agree with Basu that this is not only the right way forward, but that it now looksincreasingly likely that this is (...) the road that wil actualy be folowed ± not only in political economy, but across the board in the social sciences. (shrink)

Until the late 1970s, it was difficult publishing economic methodology research in any mainstream economics journal. Today there are at least two journals devoted to articles about economic methodology. However, it is important to keep in mind that there are two types of economic methodology. There is what has been called small-m methodology which is about the assumptions made by economic model builders, and there is big-M methodology which is about matters of interest to philosophers but not to economists. The (...) recent history of economic methodology literature and conferences has displayed the hijacking of economic methodology research by philosophers with the result that those of us who wish to do research on small-m methodology are back where we were in the 1960s and 1970s. (shrink)

continues to receive many reviews. Judging by recent reviews, this is a very controversial book. The question considered here is, how can one fairly review a controversial book—particularly when the book is widely popular and, for a history of economic thought book, a best seller? This essay uses Mirowski’s book as a case study to propose one answer for this question. In the process, it will examine how others seem to have answered this question. Key Words: methodology • reviews • (...) Mirowski • Machine Dreams. (shrink)