Heinz Kurz is recognised internationally as a leading economic theorist and a foremost historian of economic thought. This book pays tribute to his outstanding contributions on the occasion of his 65 th birthday by bringing together a unique collection of new essays by distinguished economists from around the world. Keynes, Sraffa, and the Criticism of Neoclassical Theory comprises twenty-three essays, covering themes in Keynesian economic theory, in the development of the modern classical approach to economic theory, (...) linear production models, and the critique of neoclassical theory. The essays in this book will be an invaluable source of inspiration for economists interested in economic theory and in the evolution of economic thought. They will also be of interest to postgraduate and research students specialising in economic theory and in the history of economic thought. (shrink)

This paper examines Kirzner's contribution to the study of the equilibrating tendency in economics. By analyzing his interpretation of Jevons’ law of indifference, we participate in the debate on Kirzner association with neoclassicals when discussing the equilibrating tendency. A reconstruction of Kirzner’s use of Jevons’ law is conducted, considering his argumentative strategy when presenting the Austrian economics ideas to other professionals in the field. We conclude that Kirzner drew close to neoclassical economics to emphasize the relevance and uniqueness of (...) Austrian economics. By doing so, we highlight the main differences between the two currents of economic thought. (shrink)

The topic of Chief Executive Officer (CEO) compensation has been a focus of interest for many years. The purpose of this article is to explore the ethical dimensions of various generally accepted theories of CEO renumeration. We argue that a contractarian approach, based on the Kantian ethical framework, can be used to augment the existing contingent pay models.While the neoclassical economic model of the firm views the maximization of the shareholders'' wealth as the sole responsibility of top management, a (...) contractarian approach regards the balancing of various stakeholders'' interests as the primary task of top management. Ethical problems emerge when there are divergent, yet equally justifiable interests which compete in order to channel organizational resources to meet their own needs. In this situation, given the inherent ambiguities and ever present possibilities of multiple perspectives, it may not always be feasible to provide a categorical answer to the question of whether the CEO''s decisions are ethical. We suggest that a broad interpretation of the neoclassical theory of the firm, one that is grounded in Kantian and contractarian ethics, can serve as a basis for a reconciliation of different theories of executive compensation. (shrink)

Neoclassical economics remains the leading theoretical alternative to Marxian economics. In this article I shall contrast the accounts of technical change in capitalism proposed by both theories. I shall introduce five criteria relevant to a comparison of competing social theories, and argue that the Marxian perspective on technical change in capitalism is superior on all five counts.

Neoclassical economics remains the leading theoretical alternative to Marxian economics. In this article I shall contrast the accounts of technical change in capitalism proposed by both theories. I shall introduce five criteria relevant to a comparison of competing social theories, and argue that the Marxian perspective on technical change in capitalism is superior on all five counts.

This paper seeks to rehabilitate the trade theory of Augustin Cournot. In contrast to the widespread awareness among neoclassical economists of Cournot's contribution to microeconomics, there is general ignorance of his trade theory, which an earlier generation of neoclassical theorists attributed to its erroneous conclusions. I dispute this view and attempt to show the internal consistency of Cournot's trade analysis. While the assumptions underpinning his trade theory could be considered extreme, they need to be understood (...) in the light of his methodological commitments, which included a rejection of utility in the theory of wealth, and a dismissal of Say's law regarding general employment. Furthermore, I argue that the assumptions underpinning neoclassical trade theory are no less extreme, even as their theoretical conclusions are (similarly) logically consistent. All of this serves to highlight the insufficiency of theoretical rigour in establishing the relevance of a theory; the importance of history of thought in reminding us that more than one theoretical perspective exists; and, of course, the indispensability of empirical engagement in trying to arbitrate between contrasting theoretical positions. (shrink)

Marsh borrows Richard McKeon's methodological notion of the "problematic" approach to intellectual history. Concentrating on their dialectical character, English criticism from 1650-1800 is explored in the writings of the third Earl of Shaftesbury, Mark Akenside, David Hartley, and James Harris.—D. J. B.

Linguistic theories of lexical semantics support a Neoclassical Theory of concepts, where entities like CAUSE, STATE, and MANNER serve as necessary conditions for the possession of individual event concepts. Not all concepts have a neoclassical structure, and whether or not words participate in regular linguistic patterns such as verbal alternations will be proposed as a probe for identifying whether their corresponding concepts do indeed have such structure. I show how the Neoclassical Theory supplements existing theories (...) of concepts and supports a version of analyticity and conceptual analysis. (shrink)

The neoclassical interpretation of quantum mechanics which re-introduces older conceptual models of gravity and electromagnetism transformed by modern advancements in the field is discussed as a natural outcome from the interchangeability of quantum mechanics and fluid dynamics in light of recent macro-level experiments which show behaviors previously believed to be confined to the quantum world. This superfluid model of mechanics and the known behaviors of superfluids is suggested as a possible substrate and system for the storage and processing of (...) data. Methods of data storage found in natural systems such as the brain are compared via extensive use of analogies to support the conjecture that a rational and mechanical basis for spirituality can be supported under the neoclassical interpretation because of the inherent persistent structure and interaction of the suggested pervasive medium. This model of information theory spiritualism is suggested as a basis for the unification of physics with more philosophical approaches in the study of metaphysics. Normal 0 false false false EN-US X-NONE X-NONE Normal 0 false false false EN-US X-NONE X-NONE. (shrink)

It has been a long time since the concept of iconic signs was proposed by C. S. Peirce. From that time on, we have been increasingly realizing that semiotic systems are for the most part established just on some type of similarity. But the more we see the sphere of analogical signification expanding its realm, themore we become aware of how inadequate is the notion of a simple relationship connecting locally a physical object with a second object, or with a (...) mental entity.There is, on the other hand, the more refined theory of sign conceived by Ferdinand de Saussure, but this theory, by its very definition, addresses a restricted domain, and definitely does not include the field of those signs which rest on analogical associations.The main purpose of this article is then to show how the more polished Saussurean model can act as a starting point for a general restatement, primarily intended to embrace the signs that rest on an analogical basis. We may so speak of a “neoclassical”, innovative semiotic theory, able to join the latest “sociosemiotic” approach with the most precious foundations of our discipline. (shrink)

It has been a long time since the concept of iconic signs was proposed by C. S. Peirce. From that time on, we have been increasingly realizing that semiotic systems are for the most part established just on some type of similarity. But the more we see the sphere of analogical signification expanding its realm, themore we become aware of how inadequate is the notion of a simple relationship connecting locally a physical object with a second object, or with a (...) mental entity.There is, on the other hand, the more refined theory of sign conceived by Ferdinand de Saussure, but this theory, by its very definition, addresses a restricted domain, and definitely does not include the field of those signs which rest on analogical associations.The main purpose of this article is then to show how the more polished Saussurean model can act as a starting point for a general restatement, primarily intended to embrace the signs that rest on an analogical basis. We may so speak of a “neoclassical”, innovative semiotic theory, able to join the latest “sociosemiotic” approach with the most precious foundations of our discipline. (shrink)

Marsh borrows Richard McKeon's methodological notion of the "problematic" approach to intellectual history. Concentrating on their dialectical character, English criticism from 1650-1800 is explored in the writings of the third Earl of Shaftesbury, Mark Akenside, David Hartley, and James Harris.—D. J. B.

Neoclassical economic theory in its pretensions to scientific status is founded on one of the variants of a now discredited positivism. Neoclassical economic theory claims that there are two distinct areas of economic research: positive economics and normative economics. The former is assumed to deal with the cognitive as scientific content of economics while the later focuses on welfare or equity issues. I argue that the reliance of the whole theoretical structure of economics on the normative (...) postulate of rationality renders neoclassical economics a normative discipline. I also argue that neoclassical economics should thus be viewed as an instance of applied ethics rather than as applied mathematics, say. Finally, it is suggested that neoclassical economics, if its scientific pretensions are to be taken seriously, should be absorbed theoretically into general anthropology. (shrink)

The term neoclassical economics delineates a distinct and relatively homogenous school of thought in economic theory that became prominent in the late nineteenth century and that now dominates mainstream economics. The term was originally introduced by Thorstein Veblen to describe developments in the discipline (of which Veblen did not entirely approve) associated with the work of such figures as William Jevons, Carl Menger, and Leon Walras. The ambition of these figures, the first neoclassicists, was to formalize and mathematize (...) the subject in the aftermath of the so-called marginalist revolution. Economics is, according to one definition, the science that studies human behavior as a relationship between ends and scarce means that have alternative uses. Neoclassical economics pursues this study by means of supply and demand models that determine prices based on the subjective preferences of producers and consumers. Neoclassical economics relies on subjective preferences for determining prices in order to escape from the so-called objective value theory of classical economics, according to which the value of goods could be established by reference to some basic commodity (usually corn) or the labor input required to produce a good. Neoclassicists hoped that by jettisoning objective value, economics could be placed on a more scientific basis as an essentially descriptive and predictive theory of human behavior. Political theory, by contrast, involves both positive and normative elements. It is a positive science to the extent to which it aims to describe and predict political behavior. It is a normative science to the extent to which it prescribes how agents should behave in the political arena and what the best political institutions are. Neoclassical economics is relevant to both of these elements. (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)

The neglect of issues related to the economic status of minorities and women in introductory economics textbooks widely used in the United States is a problem rooted in the most fundamental theoretical propositions of mainstream economics. Despite the fact that the claims of both mainstream methodology and general equilibrium theory have been seriously questioned in recent years, introductory economics textbooks fail to incorporate into the principles curriculum those critical findings which would allow analysis of the economic problems of women (...) and minorities in the United States. This article compares mainstream and radical textbooks' treatments of race and gender issues to show how the radical approach to these economic questions overcomes many of the deficiencies of the mainstream approach. (shrink)

Abstract: Don Ross’ Economic Theory and Cognitive Science (2005) provides an elaborate philosophical defense of neoclassical economics. He argues that the central features of neoclassical theory are associated with what he calls the Robbins-Samuelson argument pattern and that it can be reconciled with recent developments in experimental and behavioral economics, as well as contemporary cognitive science. This paper argues that Ross’ Robbins-Samuelson argument pattern is not in the work of either Robbins or Samuelson and in many (...) ways is in conflict with their own versions, and defenses, of neoclassical theory. (shrink)

I examine here if Kant’s metaphysics of matter can support any late-modern versions of classical mechanics. I argue that in principle it can, by two different routes. I assess the interpretive costs of each approach, and recommend the most promising strategy: a mass-point approach.

Economics is currently experiencing a climate of uncertainty regarding the soundness of its theoretical framework and even its status as a science. Much of the criticism is within the discipline, and emphasises the alleged failure of the neoclassical viewpoint. This article proposes the deployment of partial modelling, utilising Boolean networks (BNs), as an inductive discovery procedure for the development of economic theory. The method is presented in detail and then linked to the Semantic View of Theories (SVT), closely (...) identified with Bas van Fraassen and Patrick Suppes, in which models are construed as mediators creatively negotiating between theory and reality. It is suggested that this approach may be appropriate for economics and, by implication, for any science in which there is no consensus theory, and a wide range of viewpoints compete for acceptance. (shrink)

The most important fact about 21st century economics is that it is the post-neoclassical era in terms of the frontiers of economic research. One can still find orthodox, neoclassical theory in most textbooks, especially those at the upper undergraduate level. However, this no longer reflects the reality of how economists at the cutting edge of economics are thinking, including those who are in the mainstream of the profession. The intellectual orthodoxy of neoclassicism has died (Colander, 2000) and (...) the current thrust of research at the cutting edge of the frontier is the search for the appropriate alternative to replace it. (shrink)

This article proffers an invitation to neoclassical sociology. This is understood as a Habermasian reconstruction of the fundamental vision of the discipline as conceptualized by classical theorists, particularly Weber. Taking the cases of Eastern and Central Europe as a laboratory, we argue against the idea of a single, homogenizing globalizing logic. Currently and historically what we see instead is a remarkable diversity of capitalist forms and destinations. Neither sociological theories of networks and embeddedness nor economic models of rational action (...) adequately comprehend this diversity. A neoclassical approach enjoins an empirical research agenda comparing capitalisms, and an ironic, historical approach to analysis to inform an immanent critique of capitalist possibilities. (shrink)

This book, spanning the years 1650–1730 in France and England, looks primarily at the history of literary criticism during that period in order to show how the rising interest in the sublime pushes literary critics to entirely alter their approach to theorizing works of literature. It provides a new approach to understanding how eighteenth-century aesthetic theories are indebted to seventeenth-century religious, philosophical, and literary ideas.

This article examines and assesses Bernard Hodgson’s critique of the Neoclassical concept of rationality and its place in the literature. It is argued that Hodgson’s Trojan horse critique is superior to the others because it addresses the role of empiricist epistemology in reducing reason to instrumental rationality and consequent disappearance of the human subject of political economy. The second phase of the empiricist level of analysis reintroduces the capacities for ethical deliberation, self-determination, and the socio-historical conditions and institutional setting (...) of the economic agent. Because Hodgson’s solutions presuppose empiricist terrain, they are arbitrary. This occurs because the fundamental problem of Neoclassical rationality is its ontology. Yet by introducing the human subject into economic theory, Hodgson’s solutions move onto an ontological terrain adequate for economic analysis of human subjects. (shrink)

Following recent debates on the New Neoclassical Synthesis, the theory of monetary policy has been renewed. The prevailing method, illustrated by Woodford's version of Interest and Prices, is a Dynamic Stochastic General Equilibrium Model in which the old LM curve is voluntarily substituted by an optimal monetary rule. Such a turning point requires a peculiar set of assumptions, especially regarding monetary prices. The recent debate pays attention to de-emphasis on the nominal monetary aggregate, which does not play any (...) explicit role in monetary policy deliberations. Following Calvo's model, Woodford's neo-Wicksellian framework only considered monetary prices in equilibrium. This article demonstrates that even though the New Neoclassical Synthesis considers it essential to have a monetary theory for policymaking, the former offers the same answers as the traditional static macroeconomics. More precisely, it shows that the use of dynamic optimisation – such as the one developed by Woodford's approach – does not contribute in a decisive way to improving our understanding of the role that money prices play in monetary theory. Woodford's canvas is silent about the mechanisms whereby monetary policy induces agents to adjust individual money prices to the values that generate an equilibrium price level. Thus, if we want to close this gap, it may be useful to consider a 'forward guidance' strategy. By means of such a tool, central bankers are able to shape the public's expectations on economic outcomes by pre-announcing the time path of future policy actions. (shrink)

Deindustrialization is a major burden on workers’ health in many countries, calling for theoretically informed sociological analysis. Here, we present a novel neoclassical sociological synthesis of the lived experience of deindustrialization. We conceptualize industry as a social institution whose disintegration has widespread implications for the social fabric. Combining Durkheimian and Marxian categories, we show that deindustrialization generates ruptures in economic production, which entail job and income loss, increased exploitation, social inequality, and the disruption of services. These ruptures spill over (...) to the field of social reproduction, generating material deprivation, job strain, fatalism, increased domestic workload, anomie, community disintegration, and alienation. These ruptures in social reproduction are sources of psychosocial stress, through which deindustrialization gets embodied as ill health and dysfunctional health behavior. We substantiate this framework through the extensive qualitative thematic analysis of 82 life history interviews in Hungary’s rust belt. (shrink)

This paper achieves two general objectives. It first analyses Bernard Hodgson's "Economic As Moral Science" as a path-breaking internal critique of neo-classical economic theory, and it then demonstrates that the underlying neo-classical paradigm he presupposes suffers from a deeper-structural myopia than his standpoint recognizes. EMS mainly exposes the a priori moral prescriptions underlying orthodox consumer choice theory - namely, its classical utilitarian ground and four or, as argued here, five hidden universal categorical-ought prescriptions which the theory presupposes (...) as instrumental imperatives: comparability evaluations by all consumer judgements; non-satiety of consumer desire; consistency and transitivity of consumer preferences; diminishing rate of marginal substitution by consumer choice; and an unlimited aggregate growth of commodity production, or "the liberal growth ethic". The article argues that Hodgson's refutation of the neo-classical claims of "value neutral scientific method" is sound, that his bridging of the Humean reason-desire divide by the "rational review" of wants is resonantly demonstrated, and that his argument for conversion of an "a priori-cum-normative-cum-idealized" neoclassical theory into scientific status is logically plausible but morally abhorrent. The principal objection to Hodgson's magisterial exposé of neo-classical doctrine's moral a priorism is that the latter's normative presuppositions are profoundly deranged at a level that he himself assumes as given. In consequence, there is theoretical closure at three levels: to the underlying "life economy" of non-priced and non-profit production and distribution of goods otherwise in short supply; to the "civil commons" infrastructure sustaining these non-commodity systems of social and ecological production and distribution; and to the systemic despoiling of both by monetized market mechanisms which are falsely assumed as the defining limits of "the economy". (shrink)

Neoclassical and Austrian/evolutionary economic paradigms have different implications for integrating corporate social responsibility (corporate citizenship) and competitive strategy. porter's "Five Forces" model implicitly rests on neoclassical theory of the firm and is not easily reconciled with corporate social responsibility. Resource-based models of competitive strategy do not explicitly embrace a particular economic paradigm, but to the extent their conceptualization rests on neoclassical assumptions such as imperfect factor markets and profits as rents, these models also imply a trade-off (...) between competitive advantage and corporate social responsibility. Differences in Austrian/evolutionary economic model's assumptions about equilibrium, profits, and other economic concepts allow this paradigm to embrace alternative views of strategy such as the activities or dynamic capabilities views. These alternative views of strategy focus on learning and adaptation; they align more easily with corporate social responsibility. In practice this alignment comes about because social engagement facilitates the learning and adaptation that are a source of competitive advantage. Among the many business arguments for CSR such as improved employee morale/productivity or brand differentiation, this view prioritizes innovation. (shrink)

The diversity of contemporary "capitalisms" underscores the need to supplant the amorphous concept of structure with more precise concepts, particularly institutions and networks. All institutions entail both embodied and relational aspects. Institutions are relational insofar as they map obligatory patterns of "getting by and getting along"—institutional orders—that steer stable social fields over time. Institutions are simultaneously embodied as institutional paradigms, part of a larger bodily agency Pierre Bourdieu called habitus. Institutions are in turn tightly coupled to networks between various people (...) based on, but not reducible to, strategic interests. Yet social interaction sometimes exceeds institutional boundaries, giving rise to disjunctive fields and underscoring the prominence of institutional failures in the unfolding of antagonistic relations such as warfare. Such disjunctive fields can be tracked in relation to some transnational networks at the global level without assuming developmental convergence. This last point underscores the meaning of neoclassical sociology, which eschews assumptions of developmental convergence at the global level. (shrink)

Due to the famous methodenstreit it is often well argued that Menger’s approach to social sciences can be seen as anti-historical, as according to him pure empirical studies are insufficient to establish a firm economic theory. By suggesting that some theorems have to precede historical studies, Menger may be seen as a representative of the a priori tradition in scientific method. The modern method in the mainstream of economic thinking is also to a large extent anti-historical and a priori, (...) but because of its lack of realism and extensive reliance on very limiting assumptions. The main strength of the Mengerian anti-historical approach is lesser faith in imaginary constructs, implying a higher degree of realism in theorizing. (shrink)

In this work Peters presents an interpretive summary of the metaphysical position which he considers the foremost attempt to radically reinterpret the classical philosophical notions of substance, causality and deity—the theory of fact-as-such or of concreteness, which has been critically and constructively developed in the work of Charles Hartshorne. This study is valuable as a guide to Hartshorne’s philosophical speculations and is essentially up-to-date. Peters has included in his analyses a formerly unpublished manuscript of Hartshorne’s which has since been (...) incorporated into Creative Synthesis and Philosophic Method. He begins with a short biographical essay on Hartshorne; he moves immediately into a discussion of methodology, specifically Hartshorne’s position on unrestrictive existential statements. From this methodological base, Peters turns to a consideration of the panpsychist interpretation of events, the doctrine of the ultimate coincidence of temporal and modal categories in the chapter on creativity, the dipolar conception of deity, the notion of inclusive contrast and its significance for the distinction of subject and object, and to the aesthetic foundation of speculative thought as evidenced in Hartshorne’s continual attempt to resolve the problem of unity within diversity. The last chapter in the book, entitled "A Critical Look at Crucial Axioms" contains an overview of axioms which Peters considers essential to an understanding of Hartshorne’s philosophy and critical consideration of Hartshorne’s principle of positivity, the principle which served as the focus of discussion in the earlier chapter on methodology. (shrink)

Il apparaît qu’en France aujourd’hui, le modèle néoclassique de la concurrence inspire l’ essentiel de la réglementation de la concurrence. Or la théorie économique moderne, telle qu’elle est inspirée par Coase et Hayek notamment, tend à renverser les certitudes du modèle néoclassique et à admettre que la discrimination commerciale peut avoir un effet bénéfique sur l’efficacité économique. La distribution sélective prend tout son sens dans un contexte d’incertitude et d’ information imparfaite. C’est la confrontation de ces deux philosophies — celle (...) qui inspire le législateur français, le législateur allemand ou la doctrine communautaire européenne, et celle plus optimiste à l’égard des pratiques discriminatoires — qui est opérée dans cet article. Ainsi, la pratique des prix imposés, la franchise, la concession et la protection territoriale sont analysées dans le cadre de cette confrontation. De même, une critique de la doctrine communautaire est exposée. L’évolution du droit des contrats et du droit de la concurrence fait aussi l’objet d’une analyse mettant face à face les deux doctrines. C’est bien la vision du marché en tant que processus qui est au centre de cette analyse.The neoclassical model of competition seems to sustain today in France the main regulations about competition. However, modern economic theory, as initiated by Coase and Hayek notably, calls into question the certainties brought about by the neoclassical model and acknowledges the beneficial effects of commercial efficiency. Contractual discrimination takes its meaning in an open-ended world. The contrast between these two views — the one which inspires the French legislator, the German legislator, or the European Community doctrine, and the more optimistic one with respect to discriminatory practices — is put forward in this paper. Thus, imposed prices, franchising, concession and territorial protection are pratices discussed within this contrast. Moreover, a critique of the European Community doctrine is developed. The evolution of contract law and antitrust law is also examined by contrasting the two views. It is indeed the thesis of the market as a process which is underlined in the present analysis. (shrink)

After Marx, dissenting economics almost always used 'the labour theory' as a theory of value. This paper develops a modern treatment of the alternative labour theory of property that is essentially the property theoretic application of the juridical principle of responsibility: impute legal responsibility in accordance with who was in fact responsible. To understand descriptively how assets and liabilities are appropriated in normal production, a 'fundamental myth' needs to be cleared away, and then the market mechanism of (...) appropriation can be understood. On the normative side, neoclassical theory represents marginal productivity theory as showing that (a metaphorical version of) the imputation principle is satisfied ('people get what they produce') in competitive enterprises. Since that shows the moral commitment of neoclassical economics to the imputation principle, the labour theory of property is presented here as the actual non-metaphorical application of the imputation principle to property appropriation. The property-theoretic analysis at the firm level shows how the neoclassical (and much heterodox) analysis in terms of 'distributive shares' wholly misframed the basic questions. Finally, the paper shows how the imputation principle (modernised labour theory of property) is systematically violated in the present wage labour system of renting persons. The paper can be seen as taking up the recent challenge posed by Donald Katzner for a dialogue between neoclassical and heterodox microeconomics. (shrink)

In this paper I argue that the criterion of valuation in neoclassical economics is flawed because it is not an invariant measure of value. It is invariant only when unrealistically restrictive conditions are imposed on the class of admissible utility functions, which in fact makes it a special case. The only sensible alternative is to turn to classical value theory based on real sacrifices or opportunity costs.

Tasubinsa is a "Special Employment and Occupational Center" constituted in accordance with Spanish Law where 90% of the workers have mental, sensorial or physical impairments of at least 30%. Its positive experience of more than 15 years provides entirely different responses from mainstream neoclassical theory (transaction cost theory, agency theory, and shareholder theory) to basic questions such as "What is a firm?", "What is its purpose?", "Who owns a firm?", and "What do a firm's owners (...) seek?". The article discusses how these different premises give rise to a distinctive corporate culture centered on the handicapped person. (shrink)

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)

This paper demonstrates how a Political Economy of Wealth – an analytical framework inspired from Ricardo's and Marx's theories of value – strengthens the analytical force of Socio- Ecological Economics in the context of the controversy over the value of nature. The Political Economy of Wealth helps to overcome some theoretical limitations encountered in Socio- Ecological Economics, to develop a critical perspective on neoclassical theory of environmental values, as well as a new justification of value incommensurability, and to (...) move toward a new research agenda that aims to study interactions between the economy and the environment from a socio-historical perspective. (shrink)

Most philosophers of economics are hostile towards neoclassical economics in general and general equilibrium theory in the vein of Arrow and Debreu in particular. Especially the latter’s dismissal is justified by pointing out its lack of direct relevance for an understanding of real economies. Many recommend a more pragmatic approach along the lines of Keynes instead. The criterion of scientific legitimacy underlying this approach derives from a philosophy of science developed along the lines of Popper and Lakatos. They, (...) however, neglect the importance of conceptual problems and of the choice of adequate ‘language-systems’ in science. Since these conceptual and ‘linguistic’ aspects may be able to explain and to justify the rationale of the Arrow-Debreu approach, I recommend the more balanced philosophies of Carnap and Laudan, in which conceptual as well as empirical problems are allowed for, as a framework for methodological appraisal. I explain why such a balanced view is obstructed for most philosophers of economics and advocate a moderate pluralism leaving room for different theories, methodologies and language-systems, depending on the scientific aims that are pursued. (shrink)

The article by Ron Wallace 'proposes the deployment of partial modelling, utilising Boolean networks (BNs), as an inductive discovery procedure for the development of economic theory'. The central argument in favour of partial models is well-made, and while I agree with this aspect of the paper, and the conclusion that models should serve as 'cognitive instruments in a regime of exploration,' I have a number of comments about the proposed strategy and the example of BNs......

The theory of the firm did not exist, in any serious manner, until around 1970. Only then did the current theory of the firm literature begin to emerge, based largely upon the work of Ronald Coase and to a lesser degree Frank Knight. It was work by Armen Alchian, Robert Crawford, Harold Demsetz, Michael Jensen, Benjamin Klein, William Meckling and Oliver Williamson, among others, that drove the upswing in interest in the firm among mainstream economists. This accessible book (...) provides a valuable overview of the prehistory of the firm. Spanning an impressive timeline, it delves into Antiquity, the Medieval era, the pre-classical economics period and the 19th and 20th centuries. Next, the book traces the theoretical contributions from pre-classical, classical and neoclassical economics. It will be illuminating reading for students and researchers of the history of economic thought, industrial organization, microeconomic theory and business history. (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)