Economics has become a monolithic science, variously described as formalistic and autistic with neoclassical orthodoxy reigning supreme. So argue Dimitris Milonakis and Ben Fine in this new major work of critical recollection. The authors show how economics was once rich, diverse, multidimensional and pluralistic, and unravel the processes that lead to orthodoxy’s current predicament. The book details how political economy became economics through the desocialisation and the dehistoricisation of the dismal science, accompanied by the separation of economics from the other (...) social sciences, especially economic history and sociology. It is argued that recent attempts from within economics to address the social and the historical have failed to acknowledge long standing debates amongst economists, historians and other social scientists. This has resulted in an impoverished historical and social content within mainstream economics. The book ranges over the shifting role of the historical and the social in economic theory, the shifting boundaries between the economic and the non-economic, all within a methodological context. Schools of thought and individuals, that have been neglected or marginalised, are treated in full, including classical political economy and Marx, the German and British historical schools, American institutionalism, Weber and Schumpeter and their programme of Socialökonomik, and the Austrian school. At the same time, developments within the mainstream tradition from marginalism through Marshall and Keynes to general equilibrium theory are also scrutinised, and the clashes between the various camps from the famous Methodenstreit to the fierce debates of the 1930s and beyond brought to the fore. The prime rationale underpinning this account drawn from the past is to put the case for political economy back on the agenda. This is done by treating economics as a social science once again, rather than as a positive science, as has been the inclination since the time of Jevons and Walras. It involves transcending the boundaries of the social sciences, but in a particular way that is in exactly the opposite direction now being taken by "economics imperialism". Drawing on the rich traditions of the past, the reintroduction and full incorporation of the social and the historical into the main corpus of political economy will be possible in the future. (shrink)

Gustave de Molinari (1819–1912) is one of the most important representatives of the French liberal school in the 19th century. Although a Belgian by birth, he is, without contest, a member of the French tradition in the same way as Jean-Baptiste Say or Frédéric Bastiat. Yet, his work is little-known, or only limited to the knowledge of his most controversial theories, which are set out in his most famous publications, “De la Production de la Sécurité.

This paper draws a connection between recent developments in naturalized philosophy of science and in economics. Social epistemology is one part of the naturalistic enterprise that has become especially important. Some approaches in this field use methods borrowed from economics, a fact that has often been overlooked. But there are also genuinely economic approaches to the problems of science and knowledge. Some of these approaches can be seen as contributions to an "economic epistemology." While these contributions are (...) certainly fruitful, they have also raised criticism from economists. I overview of these points of criticism and outline possibilities to deal with these problems. In particular, the Buchanan research program offers some help. (shrink)

There is now considerable evidence that economics is undergoing significant change in which a collection of new research programs all at odds in important respects with standard neoclassical economics is increasingly dominating the economics research frontier (Davis 2006b). These new programs include game theory, evolutionary economics, behavioral economics, experimental economics, agent‐based complexity economics and neuroeconomics. All raise new issues for economics, and contest long‐held assumptions. Such a development, however, naturally raises questions about the nature and direction of economic methodology. (...) Whereas economics investigates the economy, economic methodology investigates economics (as does the history of economics). Thus a significant re‐direction of economics suggests there may be a need for an associated re‐direction in the focus and concerns of economic methodology. (shrink)

We advance the thesis that the method of experimental economics can make significant contributions to normative, as opposed to descriptive, business ethics. We contend that there are two basic ways in which experimental economics may make this contribution, and we exemplify these ways by pointing to experimental support of social contract theory as rational foundation for business ethics. These two ways are: (1) adding psychological realism; and (2) testing some quasi-empirical assumptions present in normative theory. In order to make good (...) our methodological claim, we first describe the methodological rules of experimental economics, distinguishing this method from other behavioral business ethics approaches. We also contemplate the possible objection that empirical methods cannot bear on normative ethics because there is no way of bridging the gap between descriptive theory (how people behave) and normative theory (how people ought to behave). (shrink)

The aim of the article is to develop the existing methodological approaches to assessing the military and economic capabilities of the country in conditions of war and peace. To achieve the purpose of the study, its decomposition was carried out and the following were investigated: existing approaches to assessing the military and economic potential of the country, the country's power and national power; the concept of critical load of the national economy is revealed; the generally accepted norms on (...) financing of defense needs are resulted; the experience of financing the needs of defense by the leading countries of the world - in the conditions of the Second World War is given; a methodical approach to assessing the military and economic capabilities of the country is proposed. The article proposes a methodical approach to assessing the military and economic capabilities of the country. According to the results of the research, the existing theory of military economy has been improved in the context of understanding the allowable burden on the country's economy in conditions of war and the development of methodological approaches to assessing the country's military and economic capabilities. The proposed methodological approach is the development of existing military-economic thought and capability-based military-economic planning. The proposed methodological approach allows to assess the ability of the national economy to meet military and economic needs in wartime by industry and type of military support, taking into account the critical load of the national economy, which will help simplify and improve the process of military policy decisions. The practical value of the study is that the proposed method of assessing the military and economic capabilities of the country allows to identify critical sectors of the economy, assess their ability to provide resources for military needs in wartime, based on which to form and make appropriate management decisions. The results of the study can be used in further studies of the development of military and economic potential of the country, balancing military and civilian economic needs in war, as well as military-economic planning based on capabilities. A limitation of the study is the use of publicly available sources. Future research is seen in the further development of methodological approaches to assessing and developing the military and economic potential of the country. (shrink)

This study aims to evaluate the ideas on the scope and method of economics of Joseph Schumpeter who is one of the important economists of the 20th century. The study consists of four sections: In the first section we underline the interesting points of his life to understand the roots, background, or 'vision' of his thought system. In the second section, we will examine his methodological views that he asserted in his first (but translated into English only in 2010) book. (...) Third section will be concerned with his 'analysis of economics' which refers to his critics of Leon Walras's general equilibrium analysis (as static) and his own alternative (dynamics analysis of capitalist economies) about the central subject matter of economics. In the fourth section we will treat his approach about the development/evolution process of economic thought in time. The study concludes with a brief assessment: Schumpeter is one of the rare economists who can build his own thought system in the history of economics, and he embraced a pluralist perspective in the field of the methodology of economics. (shrink)

Mainstream economics has been accused of excessive mathematization, whereas the rejection of mathematical and other formal methods is often cited as a crucial trait of Austrian economics. Based on a systematic discussion of potential benefits and drawbacks of formalization, this paper corroborates legitimate concerns that predominant types of mathematization induce a shift of attention away from the key concepts of Austrian economics. Taking this shift to the extreme, predominant modes of mathematization tend to accompany a detachment from ‘reality’ incompatible (...) with Austrian pleas for realisticness. Contrary to popular prejudice however, the most prominent representatives of the Austrian School including Carl Menger, Ludwig Mises, Friedrich Hayek, Israel Kirzner, and Peter Boettke neither provide a justification for a wholesale rejection of formalization nor actually reject it. Adequate formalization can serve as a remedy for lacking logical and semantic rigor in standard mathematical economics as well as in murky verbal chains of reasoning. (shrink)

In this paper, I draw a parallel between the stability of physical systems and that of economic ones, such as the US financial system. I argue that the use of equilibrium assumptions is central to the analysis of dynamic behavior for both kinds of systems, and that we ought to interpret such idealizing strategies as footholds for causal exploration and explanation. Our considerations suggest multi-scale modeling as a natural home for such reasoning strategies, which can provide a backdrop for (...) the assessment and prevention of financial crises. Equilibrium assumptions are critical elements of the epistemic scaffolding that make up multi-scale models, which we should understand as a means of constructing explanations of dynamic behavior. (shrink)

Professor McKenzie proposes and formulates a method composed of operational procedures designed to facilitate the evaluation of economic projects and policies. This method is discussed fully, illustrated by simple examples, and compared with alternative procedures. An outline of a computer program that enables readers to undertake their own calculations is included. In order to present the approach clearly, the author provides an exposition of the fundamental ideas and the main alternative approaches to the problem. These rely on various forms (...) of index numbers and consumer surplus. However, as is well known, such measures are not capable of correctly ordering the various alternatives under consideration, except under highly unrealist assumptions. In this book the author suggests the abandonment of this traditional approach based on the concept of 'willingness-to-pay' or the conpensating variation. Instead, the measure that Samuelson has called the 'money-metric' should become the cornerstone of applied welfare economics. (shrink)

This textbook for postgraduate students learning mathematical methods in economics provides a comprehensive account of mathematics required to analyse and solve problems of choice encountered by economists. It looks at a wide variety of decision-making problems, both static and dynamic, in various contexts and provides mathematical foundations for the relevant economic theory.

In association with the development of intermittent renewable energy generation, dynamic multiobjective dispatch faces more challenges for power system operation due to significant REG uncertainty. To tackle the problems, a day-ahead, optimal dispatch problem incorporating energy storage is formulated and solved based on a robust multiobjective optimization method. In the proposed model, dynamic multistage ES and generator dispatch patterns are optimized to reduce the cost and emissions. Specifically, strong constraints of the charging/discharging behaviors of the ES in the space-time domain (...) are considered to prolong its lifetime. Additionally, an adaptive robust model based on minimax multiobjective optimization is formulated to find optimal dispatch solutions adapted to uncertain REG changes. Moreover, an effective optimization algorithm, namely, the hybrid multiobjective Particle Swarm Optimization and Teaching Learning Based Optimization, is employed to seek an optimal Pareto front of the proposed dispatch model. This approach has been tested on power system integrated with wind power and ES. Numerical results reveal that the robust multiobjective dispatch model successfully meets the demands of obtaining solutions when wind power uncertainty is considered. Meanwhile, the comparison results demonstrate the competitive performance of the PSO-TLBO method in solving the proposed dispatch problems. (shrink)

The Nature and Method of Economic Sciences: Evidence, Causality, and Ends argues that economic phenomena can be examined from five analytical levels: namely, a statistical descriptive approach, a causal explanatory approach, a teleological explicative approach, a normative approach and, finally, the level of application. The above viewpoints are undertaken by different but related economic sciences, including statistics and economic history, positive economics, normative economics, and the 'art of political economy'. Typically, positive economics has analysed economic (...) phenomena using the second approach, causally explaining and often trying to predict the future evolution of the economy. It has not been concerned with the ends selected by the individual or society, taking them as given. However, various new economic currents have emerged during the last 40 years, and some of these do assign a fundamental role to ends within economics. This book argues that the field of positive economics should adapt to deal with the issues that arise from this. The text attempts to discern the nature of economic phenomena, introducing the different approaches and corresponding economic sciences. It goes on to analyse the epistemological characteristics of these in the subsequent chapters, as well as their disciplinary inter-relations. This book is a valuable resource for students and scholars of the social sciences, philosophy, and the philosophy of economics. It will also be of interest to those researching political economy, and the development of economic thought. (shrink)

'A very welcome compendium on the wide range of research methods available for economists and social scientists more generally. Highly recommended, particularly for those wishing to explore alternative methods to be applied in all fields of economic analy.

This book, the third in the series of Samuel Hollander's essays, covers twelve key studies on the economic theory and method of John Stuart Mill. This volume provides an accessible sourcebook on Mill's relationship with David Ricardo, and the 'Classical School', as well as confirming his relevance for modern economics and for the place of economics within the social sciences.

This is an introductory book that targets the reader who has the ambition to apply economic analysis but may be missing a technical introduction to its mathematical techniques or seeks a structured elaboration of its philosophical principles. The book juxtaposes economic analysis with moral philosophy, political theory, egalitarianism, and other methodological principles and then passes to the details of methods such as model-building, derivatives, differential equations, statistical tests, and the use of computer programs.

It has often been pointed out that the Marxian theory of value contains some inconsistencies, usually in relation to the concept of abstract labour. However, the contradiction between the concept of labour and the concept of validity with which Marx operates in Capital has never been discussed. A detailed analysis shows that this concept of validity refers to the process of abstraction which is carried out by the participants of the exchange process. Only the rigorous comprehension of this process of (...) abstraction can illuminate that for which the concept of abstract labour was developed: the unity and universality of value. On this basis, the paper criticises the Marxian development of the money-form and presents an alternative approach that builds on the aforementioned concept of validity. This concept is formulated in more depth by recourse to the works of Hegel, Simmel and Adorno. Furthermore, the paper reconsiders the dialectical development of categories in the light of this alternative conception of the money-form as totality and abstraction. Finally, the distinction between simple circulation and the process as a whole is explored and it is argued that, according to the novel reading proposed, it acquires a fundamental significance. (shrink)

In this chapter, we discuss social network analysis as a method for the history of economics. We argue that social network analysis is not primarily a method of data representation but foremost a method of discovery and confirmation. It is as such a promising method that should be added to the toolbox of the historian of economics. We furthermore argue that, to be meaningfully applied in history, social network analysis must be complemented with historical knowledge gained by other means and (...) often by more traditional, mostly qualitative, methods. It should therefore be viewed as a method that complements rather than replaces more established approaches in the history of economics. (shrink)

Growing economic stratification each year in many countries is such a pressing issue that even the World Economic Forum, organized in 2014 in the luxury resort of Davos, recognized it as one of the most dangerous threats to social order. The problem of economic inequality, pushed by the apologists of economic liberalism to the margins of media discourse, once again became a “hot” topic with the World Economic Crisis in 2008, the effects of which are (...) still felt in various countries today, and which contribute to the expansion of global social stratification. The aim of the article is to describe the sample indicators typically used by organizations, i.e. OECD, theWorld Bank to measure economic inequality in the world, and then, on the basis of these indicators, create a synthetic instrument based on TOPSIS methodology, which will allow for preparing a multi-criteria ranking of OECD countries in terms of economic inequality. (shrink)

Hertwig and Ortmann suggest greater standardization of procedures in experimental psychology to help with problems of replicability and consistency of findings. It is argued that, this view is inconsistent with their other interesting proposals, and heterogeneity of method is appropriate in psychology.

This survey gives an overview of a set of selected articles published between 2016 and 2017 in the major journals that cover the history of economic thought. In surveying the literature, we focus on three major aspects – the scope, the sources, and the methods – with reference to which we discuss the novelties that we find in the recent literature on the history of economic thought.