Philosophy of Economics

Edited by Anna Alexandrova (Cambridge University)
Assistant editor: Jack Wright (Cambridge University)
About this topic
Summary Philosophy of economics is a study of any philosophical issue that arises in connection with the discipline of economics. Currently it has three core areas: foundations, methodology and ethics. Foundations of economics encompass conceptual and metaphysical questions such as the nature of rationality and social ontology, seeking to clarify what we study when we study economics (preferences, individuals, institutions, societies etc?) and their properties and relations to each other. Methodology of economics, following on the traditional questions in philosophy of science, is concerned with the nature of knowledge that can be attained about the economy and its sources.  The ethical side of philosophy of economics is a study of normative issues such as justice, efficiency, equality, welfare, paternalism, coercion and such, that arise at the intersection of political philosophy and welfare economics.
Key works Daniel Hausman is responsible for kickstarting much of contemporary philosophy of economics. Hausman 2008 is a comprehensive encyclopedia article. Hausman 2007 is an anthology of classic essays from to J.S Mill and Marx to the present day. Hausman et al 2006 is a seminal study of normative assumptions in economics and their critical study. Hausman 1992 started and still informs many discussions in methodology of economics. Reiss 2009 presents an updated agenda. Mäki 2001 is a collection on the ontology of economics.
Introductions There is now a textbook in philosophy of economics: Reiss 2013. Other good introductions to philosophy of economics are just introductions to philosophy of social science: for example, Rosenberg 1995, Risjord 2014, and Elster 2007.
Related categories
Subcategories:
See also:History/traditions: Philosophy of Economics

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  1. Determinism, Free Will, and the Austrian School of Economics.Dawid Megger - forthcoming - Journal of Economic Methodology:1-18.
    In this paper I analyse the problem of free will and determinism as it pertains to the Austrian School of Economics. I demonstrate that despite the fact they subscribe to the concept of causality,...
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  2. The Institutional Preconditions of Homo Economicus.Eduard Braun - 2021 - Journal of Economic Methodology 28 (2):231-246.
    Most economists are aware that homo economicus is not a ‘conception of man,’ but only a useful assumption. Still, homo economicus is usually interpreted as an assumption about individual agents. It...
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  3. Models as ‘Analytical Similes’: On Nicholas Georgescu-Roegen's Contribution to Economic Methodology.Quentin Couix - 2021 - Journal of Economic Methodology 28 (2):165-185.
    This paper investigates the methodology of Nicholas Georgescu-Roegen and his conception of economic models as analytical similes. His approach has received little attention from mathematical econom...
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  4. Multiple Models, One Explanation.Chiara Lisciandra & Johannes Korbmacher - 2021 - Journal of Economic Methodology 28 (2):186-206.
    We develop an account of how mutually inconsistent models of the same target system can provide coherent information about the system. Our account makes use of ideas from the debate surrounding rob...
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  5. Savage’s Response to Allais as Broomean Reasoning.Franz Dietrich, Antonios Staras & Robert Sugden - 2020 - Journal of Economic Methodology 28 (2).
    Savage famously contravened his own theory when first confronting the Allais Paradox, but then convinced himself that he had made an error. We examine the formal structure of Savage’s ‘error-correcting’ reasoning in the light of (i) behavioural economists’ claims to identify the latent preferences of individuals who violate conventional rationality requirements and (ii) Broome’s critique of arguments which presuppose that rationality requirements can be achieved through reasoning. We argue that Savage’s reasoning is not vulnerable to Broome’s critique, but does not (...)
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  6. A Con Artist or the Father of Revolutionary Ideas? James Forder’s Recent Book on Milton Friedman.Peter Galbács - 2020 - Journal of Economic Methodology 28 (2):250-253.
    James Forder, professor of political economy at Balliol College, University of Oxford, is one of the most well-known and distinguished figures in the contemporary historiography of economics. His p...
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  7. To Incriminate, to Apologize or to Excuse? Finance and the Uncertainty Conundrum.Daniel Seabra Lopes - 2020 - Journal of Economic Methodology 28 (2):247-249.
    Let us suppose we could simply divide all social scientists studying finance into two main ideal-types: those who, writing from an anti-capitalistic perspective, are critically destructive; and tho...
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  8. Abstraction and Closure: A Methodological Discussion of Distribution-Led Growth.Michalis Nikiforos - 2020 - Journal of Economic Methodology 28 (2):207-230.
    This paper presents a methodological discussion of two recent ‘endogeneity critiques’ of the Kaleckian model and the concept of distribution-led growth. From a neo-Keynesian perspective, it is crit...
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  9. Price Gouging and the Duty of Easy Rescue.Elizabeth Brake - forthcoming - Economics and Philosophy:1-24.
    What, if anything, is wrong with price gouging? Its defenders argue that it increases supply of scarce necessities; critics argue that it is exploitative, inequitable and vicious. In this paper, I argue for its moral wrongness and legal prohibition, without relying on charges of exploitation, inequity or poor character. What is fundamentally wrong with price gouging is that it violates a duty of easy rescue. While legal enforcement of such duties is controversial, a special case can be made for their (...)
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  10. What Should We Do About Future Generations? Impossibility of Parfit’s Theory X.Yew-Kwang Ng - 1989 - Economics and Philosophy 5 (2):235--253.
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  11. Leaving Town for the Market: The Emergence and Expansion of Social Trust in the Works of Elinor Ostrom and Henry Sumner Maine.Marc Goetzmann - 2019 - Teoria E Critica Della Regolazione Sociale 2 (19):147-168.
    This paper uses the evolutionary frame provided by the Victorian jurist Henry Sumner Maine to describe the process by which trust can be seen as the product of a gradual development that starts with small-scale communities and later allows market exchanges to develop themselves. I also argue, using the work of Elinor Ostrom (1990), that trust emerges first within small-scale communities, where first- and second-degree collective action problems need to be resolved. The development of a social disposition to trust is (...)
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  12. Is Close Enough Good Enough?Campbell Brown - 2020 - Economics and Philosophy 36 (1):29-59.
    Should we allow grave harm to befall one individual so as to prevent minor harms befalling sufficiently many other individuals? This is a question of aggregation. Can many small harms ‘add up’, so that, collectively, they morally outweigh a greater harm? The ‘Close Enough View’ supports a moderate position: aggregation is permissible when, and only when, the conflicting harms are sufficiently similar, or ‘close enough’, to each other. This paper surveys a range of formally precise interpretations of this view, and (...)
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  13. How-Possibly Explanations in Economics: Anything Goes?Till Grüne-Yanoff & Philippe Verreault-Julien - 2021 - Journal of Economic Methodology 28 (1):114-123.
    The recent literature on economic models has rejected the traditional requirement that their epistemic value necessary depended on them offering actual explanations of phenomena. Contributors to that literature have argued that many models do not aim at providing how-actually explanations, but instead how-possibly explanations. However, how to assess the epistemic value of HPEs remains an open question. We present a programmatic approach to answering it. We first introduce a conceptual framework that distinguishes how-actually explanations from how-possibly explanations and that further (...)
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  14. Co-Production and Economics: Insights From the Constructive Use of Experimental Games in Adaptive Resource Management.Michiru Nagatsu - 2021 - Journal of Economic Methodology 28 (1):134-142.
    I envision new directions in the methodology of experimental games in the field of developmental, environmental and resource economics. Although there have been extensive discussions on experimenta...
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  15. Economics and Community Knowledge-Making.Julie A. Nelson - 2021 - Journal of Economic Methodology 28 (1):107-113.
    Knowledge-making is a social activity. In this essay, I discuss how the economics discipline may be becoming a bit more cognizant of this fact, even though it goes against a long habit of imagining...
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  16. Retreat From Normativism.Marcel Boumans - 2021 - Journal of Economic Methodology 28 (1):60-66.
    In economic methodology, a complete turn to practice is hampered by a broadly shared normative stance towards practice. The root of this normativism is Platonism. Platonism presupposes in essence a...
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  17. The Helsinki Approach to Economic Methodology, or, How to Espouse the Mainstream?Aki Lehtinen - 2021 - Journal of Economic Methodology 28 (1):79-87.
    This paper provides metaphilosophical reflections on economic methodology by way of discussing the ‘Helsinki approach’. This approach combines the study of the practice of economics with an endeavo...
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  18. Values in Economics: A Recent Revival with a Twist.Magdalena Małecka - 2021 - Journal of Economic Methodology 28 (1):88-97.
    This article reviews the relatively recent trend in economic methodology that consists in bringing insights from the debate in philosophy of science on values in science in order to analyse value-l...
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  19. On the Recent Philosophy of Decision Theory.Ivan Moscati - 2020 - Journal of Economic Methodology 28 (1):98-106.
    In the philosophy of economics, the last fifteen years have witnessed an intense discussion about the epistemological status of economic models of decision making and their theoretical components,...
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  20. Economic Methodology: A Bibliometric Perspective.Alexandre Truc, François Claveau & Olivier Santerre - 2021 - Journal of Economic Methodology 28 (1):67-78.
    Using tools from social network analysis, we study citation patterns since the early 1990s in the two most important journals in economic methodology. We mostly focus...
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  21. Economic Methodology, the Philosophy of Economics and the Economy: Another Turn?Sheila Dow - 2021 - Journal of Economic Methodology 28 (1):46-53.
    This contribution considers how economic methodology and the philosophy of economics have evolved in the light of real experience in the economy. Philosophical and methodological discourse about ec...
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  22. On Letting Serious Crises Go to Waste.Francesco Guala - 2021 - Journal of Economic Methodology 28 (1):40-45.
    Although the philosophy of economics has thrived during periods of crisis, it is by no means clear that it will continue to do so. Have philosophers of economics wasted important opportunities duri...
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  23. What Are We Up To?Jack Vromen - 2021 - Journal of Economic Methodology 28 (1):23-31.
    Even though one of the founding aspirations of our field was to foster mutually beneficial exchanges between economics and philosophy, economists never paid much attention to our work. Now that pra...
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  24. Philosophy of Economics: Past and Future.Daniel M. Hausman - 2021 - Journal of Economic Methodology 28 (1):14-22.
    This essay offers a history of the development of philosophy of economics from the 1830s until today, with a personal perspective on the developments of the last four decades. It argues that change...
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  25. The Field: Tasks, Pasts, Futures.Uskali Mäki - 2021 - Journal of Economic Methodology 28 (1):3-13.
    The paper sketches a story about how and why the field of economic methodology / philosophy of economics emerged, and how it has evolved intellectually and ins...
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  26. Introduction: Economic Methodology and Philosophy of Economics Twenty Years Since the Millennium.John Davis & D. Wade Hands - 2021 - Journal of Economic Methodology 28 (1):1-2.
    The papers in this special symposium issue of the Journal of Economic Methodology advance a variety of perspectives on the current state and possible future development of economic methodology and...
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  27. Economic Methodology for Policy Guidance.Don Ross - forthcoming - Journal of Economic Methodology:1-8.
    Before reading two recent books of which David Colander is first author, I had thought of him as a unique gadfly who has been the best promoter of three loosely connected strands of work. He has do...
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  28. Model Diversity and the Embarrassment of Riches.Walter Veit - forthcoming - Journal of Economic Methodology:1-13.
    In a recent special issue dedicated to Dani Rodrik’s influential monograph Economics Rules, Grüne-Yanoff and Marchionni raise a potentially damning problem for Rodrik’s suggestion that progress in economics should be understood and measured laterally, by a continuous expansion of new models. They argue that this could lead to an “embarrassment of riches”, i.e. the rapid expansion of our model library to such an extent that we become unable to choose between the available models, and thus needs to be solved to (...)
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  29. Measuring Poverty Around the World, Anthony B. Atkinson. Princeton University Press, 2019, Xxvii + 464 Pages. [REVIEW]Lucio Esposito & Blanca Zuluaga - 2021 - Economics and Philosophy 37 (1):156-161.
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  30. Ordeals, Women and Gender Justice.Anca Gheaus - 2021 - Economics and Philosophy 37 (1):8-22.
    Rationing health care by ordeals is likely to have different effects on women and men, and on distinct groups of women. I show how such putative effects of ordeals are relevant to achieving gender justice. I explain why some ordeals may disproportionately set back women’s interest in discretionary time, health and access to health care, and may undermine equality of opportunity for positions of advantage. Some ordeals protect the interests of the worse-off women yet set back the interests of better-off (...)
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  31. Capital and Ideology, Thomas Piketty. Translated by Arthur Goldhammer. Harvard University Press, 2020, Pp. Ix + 1093.Elizabeth Anderson - 2021 - Economics and Philosophy 37 (1):150-156.
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  32. Measuring Utility: From the Marginal Revolution to Behavioral Economics, Ivan Moscati. Oxford University Press, 2019, Vii + 326 Pages. [REVIEW]Catherine Herfeld - 2021 - Economics and Philosophy 37 (1):144-150.
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  33. Reciprocity and the Art of Behavioural Public Policy, Adam Oliver. Cambridge University Press, 2019, Xvii + 194 Pages. - Escaping Paternalism: Rationality, Behavioural Economics and Public Policy, Mario J. Rizzo and Glen Whitman. Cambridge University Press, 2020, Xii + 496 Pages. [REVIEW]Robert Sugden - 2021 - Economics and Philosophy 37 (1):139-144.
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  34. Rationing with Time: Time-Cost Ordeals’ Burdens and Distributive Effects.Julie L. Rose - 2021 - Economics and Philosophy 37 (1):50-63.
    Individuals often face administrative hurdles in attempting to access health care, public programmes, and other legal statuses and entitlements. These ordeals are the products, directly or indirectly, of institutional and policy design choices. I argue that evaluating whether such ordeals are justifiable or desirable instruments of social policy depends on assessing, beyond their targeting effects, the process-related burdens they impose on those attempting to navigate them and these burdens’ distributive effects. I here examine specifically how ordeals that levy time costs (...)
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  35. Strategic Sorting: The Role of Ordeals in Health Care.Richard Zeckhauser - 2021 - Economics and Philosophy 37 (1):64-81.
    Ordeals are burdens placed on individuals that yield no benefits to others; hence they represent a dead-weight loss. Ordeals – the most common is waiting time – play a prominent role in rationing health care. The recipients most willing to bear them are those receiving the greatest benefit from scarce health-care resources. Health care is heavily subsidized; hence, moral hazard leads to excess use. Ordeals are intended to discourage expenditures yielding little benefit while simultaneously avoiding the undesired consequences of rationing (...)
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  36. Ordeals, Inequalities, Moral Hazard and Non-Monetary Incentives in Health Care.Daniel M. Hausman - 2021 - Economics and Philosophy 37 (1):23-36.
    This essay begins by summarizing the reasons why unregulated health-care markets are inefficient. The inefficiencies stem from the asymmetries of information among providers, patients and payers, which give rise to moral hazard and adverse selection. Attempts to ameliorate these inefficiencies by means of risk-adjusted insurance and monetary incentives such as co-pays and deductibles lessen the inefficiencies at the cost of increasing inequalities. Another possibility is to rely on non-monetary incentives, including ordeals. While not a magic bullet, these are feasible methods (...)
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  37. Putting Costs and Benefits of Ordeals Together.Anders Herlitz - 2021 - Economics and Philosophy 37 (1):37-49.
    This paper addresses how to think about the permissibility of introducing deadweight costs on candidate recipients of goods in order to attain better outcomes. The paper introduces some distinctions between different kinds of value dimensions that should be taken into account when such judgements are made and draws from the literature on comparisons across different value dimensions in order to canvas what sort of situations one might arguably face when evaluating ordeals. In light of the distinctions drawn and the possibilities (...)
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  38. The Option Value of Life.Susanne Burri - 2021 - Economics and Philosophy 37 (1):118-138.
    This paper argues that under conditions of uncertainty, there is frequently a positive option value to staying alive when compared to the alternative of dying right away. This value can make it prudentially rational for you to stay alive even if it appears highly unlikely that you have a bright future ahead of you. Drawing on the real options approach to investment analysis, the paper explores the conditions under which there is a positive option value to staying alive, and it (...)
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  39. Rationality, Uncertainty, and Unanimity: An Epistemic Critique of Contractarianism.Alexander Schaefer - 2021 - Economics and Philosophy 37 (1):82-117.
    This paper considers contractarianism as a method of justification. The analysis accepts the key tenets of contractarianism: expected utility maximization, unanimity as the criteria of acceptance, and social-scientific uncertainty of modelled agents. In addition to these three features, however, the analysis introduces a fourth feature: a criteria of rational belief formation, viz. Bayesian belief updating. Using a formal model, this paper identifies a decisive objection to contractarian justification. Insofar as contractarian projects approximate the Agreement Model, therefore, they fail to justify (...)
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  40. Credit and the Problem of Trust in the Thought of John Locke, C. 1668-1704.Jon Cooper - 2021 - Historical Journal 64 (2):211-232.
    This article presents a reinterpretation of John Locke's contribution to debates about the interest rate in the seventeenth century. It suggests that his argument that England should maintain the ‘natural’ rate, rather than impose a lower rate, was motivated by his theological, moral, and social conceptions of credit and its dependence on trust. In order to solve the endemic shortage of metal coin limiting the growth of monetary exchange in England, Locke stressed that the higher, ‘natural’ rate of interest would (...)
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  41. The Principle of Merit and the Capital-Labour Split.Jeppe von Platz - forthcoming - Economics and Philosophy:1-23.
    Some meritocratic defenders of capitalism rely on the principle that cooperators should receive a share of the product commensurate with their contribution. However, such defences of capitalism fail due to a dilemma. Either they rely on an understanding of contribution that arguably will be reflected by the capital-labour split in suitably idealized capitalist economies, but cannot serve as a plausible standard of merit; or they rely on an interpretation of contribution that is a plausible standard of merit, but which won’t (...)
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  42. Philosophie des sciences humaines. Méthodes et objets.Charles Girard & Florence Hulak - 2018 - Paris: Vrin.
    Les sciences humaines se distinguent les unes des autres par leurs méthodes et leurs objets privilégiés. En élaborant des procédures d’enquête spécifiques, elles s’efforcent de comprendre la vie psychique ou les pratiques collectives, la distribution des populations ou les rapports entre groupes, les idéaux sociaux ou les échanges matériels. Leur fin commune est toutefois d’éclairer de leurs lumières croisées une même réalité humaine et sociale. Leurs objets ont donc vocation à se rejoindre, leurs méthodes à se compléter. En interrogeant leur (...)
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  43. The Great Economist David Hume.Robert Sugden - forthcoming - Journal of Economic Methodology:1-4.
    2 February 2021 David Hume is generally acknowledged as one of the greatest philosophers of all time – the author of ground-breaking contributions to moral philosophy, political philosophy, philoso...
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  44. İktisat Bilimi ve Bilimsel İlerleme.Ercan Eren - 2021 - İktisat Ve Toplum Dergisi 124:99-110.
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  45. Economic Methodology in 2020: Looking Forward, Looking Back.Don Ross - 2021 - Journal of Economic Methodology 28 (1):32-39.
    I appraise some areas of recent achievement in economic methodology by identifying four topics on which there will likely be heavy exogenously generated demand for methodological innovation over co...
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  46. Lifting Lockdown – a Tragedy of the Commons.Fausto Corvino - 2020 - openDemocracy.
    The lifting of lockdown is a typical case of the tragedy of the commons, and as such should be regulated by public authority, instead of being left to the ethics and responsibility of single individuals. I would therefore argue that we should think about an intermediate phase between the lockdown and the opening of shops (which in the Italian case is the transition from the red zone to the orange zone): diversified access to commercial activities, on an hourly basis, for (...)
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  47. The Virtues of Economic Rescue Legislation: Distributive Justice, Civil Law, and the Troubled Asset Relief Program.Henry S. Kuo - 2021 - Moral Philosophy and Politics 8 (1):aop.
    This study constitutes an ethical analysis through the lens of distributive justice in the case of the Troubled Asset Relief Program (TARP), which was enacted in the midst of the Great Recession of 2007–2009. It begins by engaging with the visions of justice constructed by John Rawls and Robert Nozick, using their insights to locate the injustices of TARP according to their moral imaginations. However, this study argues that Rawls’ and Nozick’s theories of justice primarily envision the nature of law (...)
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  48. What Can Economists Learn From Deleuze?Abderrazak Belabes - 2020 - Economic Thought 9 (2):55.
    Listening, seeing and reading Gilles Deleuze has had an influence on my thinking more than most of the economic writings I have consulted over the past quarter of a century. This discovery and furtherance of knowledge enriched my reflection and also allowed me to go beyond the general philosopher, as a philosopher opening the way to new horizons. It makes the researcher aware that the most important thing is not the philosopher man but the man philosopher, i.e. the one who (...)
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  49. Deleuze Among the Economists: A Short Commentary on Abderrazak Belabes' 'What Can Economists Learn From Deleuze?'.Geoffrey Pfeifer - 2020 - Economic Thought 9 (2):71.
    Read 'What can Economists Learn from Deleuze?'...
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  50. Comment on Abderrazak Belabes' 'What Can Economists Learn From Deleuze?'.James E. Rowe - 2020 - Economic Thought 9 (2):68.
    Read 'What can Economists Learn from Deleuze?'...
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1 — 50 / 12377