This open access book provides an exploration of the consequences of the ontological differences between natural and social objects (sometimes described as objects of nature and objects of thought) in the workings of causal and agency relationships. One of its important and possibly original conclusions is that causal and agency relationships do not encompass all of the dependent relationships encountered in social life. The idea that social reality is contingent has been known (and largely undisputed) at least since Wittgenstein’s “On (...) Certainty”, but social science, and most notably economics has continued to operate on the basis of causal and agency theories borrowed or adapted from the natural sciences. This volume contains essays that retain and justify the partial or qualified use of this approach and essays that totally reject any use of causal and agency theory built on determined facts (closed systems).The rejection is based on the possibly original claim that, whereas causation in the objects of the natural sciences reside in their properties, human action is a matter of intentionality. It engages with critical realist theory and re-examines the role of free will in theories of human action in general and economic theory in particular. (shrink)

As microeconomic calculus and macroeconomic estimation superseded earlier approaches to political economy, broad questions about how things are (ontology), how things might be known (epistemology), and how science should proceed (methodology) were neglected. As a corrective, Critical Realism (CR) has been proposed as an alternative to the orthodox deductive‐nomological (ODN) tradition; i.e., to mathematical deduction and statistical induction. In their place, retroduction—the use of analogy, metaphor, intuition and ordinary language—is supposed to illuminate root causes by identifying the deep mechanisms that (...) govern events. CR offers guidelines for social science that are of a most general kind: from initial “premises,” retroduction proceeds to hypotheses about deep structures and mechanisms. The initial premises are determined by a desire to understand events that surprise us. However, nothing is thereby excluded, including ODN. And since historical processes are revealed neither by assumption nor by the net effects of whatever initial conditions hold, it might be apposite to drop the search for (deep) socio‐economic laws and to use whatever evidence is at hand to see whether, and the extent to which, ideal types apply to any given historical sequence. (shrink)

Is rhetoric just a new and trendy way toépater les bourgeois?Unfortunately, I think that the newfound interest of some economists in rhetoric, and particularly Donald McCloskey in his new book and subsequent responses to critics, gives that impression. After economists have worked so hard for the past five decades to learn their sums, differential calculus, real analysis, and topology, it is a fair bet that one could easily hector them about their woeful ignorance of the conjugation of Latin verbs or (...) Aristotle's Six Elements of Tragedy. Moreover, it has certainly become an academic cliché that economists write as gracefully and felicitously as a hundred monkeys chained to broken typewriters. The fact that economists still trot out Keynes's prose in their defense is itself an index of the inarticulate desperation of an inarticulate profession. (shrink)

Many in both developed and developing countries fear global economic integration. But developing‐country fears of volatile capital flows are unfounded, as are developed‐country fears of pauper wages due to low‐cost imports. Demands for “ethical trading” are as misplaced as the fears of Third‐World cultural nationalists that globalization will destroy their valued ways of life.

Discontented people might talk of corruption in the Commons, closeness in the Commons and the necessity of reforming the Commons, said Mr. Spenlow solemnly, in conclusion; but when the price of wheat per bushel had been the highest, the Commons had been the busiest; and a man might lay his hand upon his heart, and say this to the whole world, – ‘Touch the Commons, and down comes the country!’.

This paper makes explicit and takes issue with the bizarre view, which is unfortunately prevalent among social scientists, that causal relations are features of models only. There are some good reasons to represent causal factors with independent variables. But the association between causes and independent variables is only a desideratum in model construction. It is not a criterion for judging which things are causes and which are effects.

The aim of this article is to elucidate the notions of explanation and mechanism, in particular of the social kind. A mechanism is defined as what makes a concrete system tick, and it is argued that to propose an explanation proper is to exhibit a lawful mechanism. The so-called covering law model is shown to exhibit only the logical aspect of explanation: it just subsumes particulars under universals. A full or mechanismic explanation involves mechanismic law statements, not purely descriptive ones (...) such as functional relations and rate equations. Many examples from the natural, biosocial, and social sciences are examined. In particular, macro-micro-micro-macro social relations are shown to explain other wise puzzling macro-macro links. The last part of the article relates the author's progress, over half a century, toward understanding mechanism and explanation. (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)

This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

The economic paradigms of Ludwig von Mises on the one hand and of John Maynard Keynes on the other have been correctly recognized as antithetical at the theoretical level, and as antagonistic with respect to their practical and public policy implications. Characteristically they have also been vindicated by opposing sides of the political spectrum. Nevertheless the respective views of these authors with respect to the meaning and interpretation of probability exhibit a closer conceptual affinity than has been acknowledged in the (...) literature. In particular it is argued that in some relevant respects Ludwig von Mises´ interpretation of the concept of probability exhibits a closer affinity with the interpretation of probability developed by his opponent John Maynard Keynes than with the views on probability espoused by his brother Richard von Mises. Nevertheless there also exist significant differences between the views of Ludwig von Mises and those of John Maynard Keynes with respect to probability. One of these is highlighted more particularly: where John Maynard Keynes advocated a monist view of probability, Ludwig von Mises embraced a dualist view of probability, according to which the concept of probability has two different meanings each of which is valid in a particular area or context. It is concluded that both John Maynard Keynes and Ludwig von Mises presented highly nuanced views with respect to the meaning and interpretation of probability. (shrink)