Research in the subject area of economics (as a social science) has defined its ontologie of scientific investigation through economic methodology; a philosophical approach entailing the proviso of empirical evidence and backed by an understanding of human interaction in their natural habitat. The contention of economic methodology being refuted for its non-scientific means of investigation and particularly with the application of Ceteris Paribus (CP) law, has been critically addressed in this article, with Sierra Leone as a case (...) example. Sierra Leone is a complex economy and issues surrounding the assumption of CP has been brought to the fore, with a view of the political economy structure being made transparent so as to make it possible for economists to address critical issues surrounding corruption (exogenous factors), not accounted for in econometric modelling. This is not necessarily that which is considered as the most obvious, with the use of CP concept, for example, the influence of naturally occurring incidents like adverse weather conditions, flooding and earthquakes. (shrink)

Herman Dooyeweerd’s classical characterization of the meaning-kernel of the economic modality runs as follows: the sparing or frugal mode of administering scarce goods, implying an alternative choice of their destination with regard to the satisfaction of different human needs. My first aim in this paper is to show that Dooyeweerd’s characterization of the meaning-kernel of the economic modality naturally leads to neoclassical economic theory. In order to do this, I will provide an argument that, departing from Dooyeweerd’s definition of the (...) meaning-kernel of the economic modality, concludes in a logical reconstruction of (the static case of) neoclassical economic theory (from now on denoted as NET). The fundamental law of this theory will turn out to be thus, naturally, a formulation of the fundamental modal law of economics. The second aim of the paper is epistemological since it discusses the methodological problem of the empirical claim of the theory. It is my hope that this discussion will clarify the limits of NET and provide a reply to the objections raised against it by Reformed scholars like Goudzwaard (1980). (shrink)

Herman Dooyeweerd’s classical characterization of the meaning-kernel of the economic modality runs as follows:the sparing or frugal mode of administering scarce goods, implying an alternative choice of their destination with regard to thesatisfaction of different human needs.My first aim in this paper is to show that Dooyeweerd’s characterization of the meaning-kernel of the economic modality naturallyleads to neoclassical economic theory. In order to do this, I will provide an argument that, departing from Dooyeweerd’s definitionof the meaning-kernel of the economic modality, (...) concludes in a logical reconstruction of neoclassical economictheory . The fundamental law of this theory will turn out to be thus, naturally, a formulation of thefundamental modal law of economics. The second aim of the paper is epistemological since it discusses the methodological problem of the empirical claim of the theory. It is my hope that this discussion will clarify the limits of NET and provide a reply to the objections raised against it by Reformed scholars like Goudzwaard. (shrink)

In this article, the author offers a discussion of the evidential role of the Galilean constant in the history of physics. The author argues that measurable constants help theories constrain data. Theories are engines for research, and this helps explain why the Duhem-Quine thesis does not undermine scientific practice. The author connects his argument to discussion of two famous papers in the history of economic methodology, Milton Friedman's 'Methodology of Positive Economics', which appealed to example of Galilean (...) Law of Fall in its argument; and Vernon Smith's 'Economics in the Laboratory'. While the author offers some criticism of Friedman and Smith, most of the article is a friendly reinterpretation of their insights. (shrink)

There is an ever-increasing interest in the question of how and why legal norms can effectively guide human action. This compact volume demonstrates how economic tools can be used to examine this question and scrutinize these legal norms. Indeed, this is one of the first text to be based on civil law instead of the more usual common law, situating the study of both private and public law within the framework of institutional economics, with recommendations for further reading and (...) a list of key terms in each chapter. Besides the standard economic problems in property, tort, contract, crime and litigation, areas covered include: new institutional economics public choice constitutional law public administrations regulatory impact analysis. This book is essential reading for students in law schools and economics departments alike, particularly those engaged with the methodology of law and economics, applied economics and economic methods of legal policy. (shrink)

The ramifications of modernity and the resultant challenges compelled Ottoman intellectuals and state officials to contemplate matters like as innovation, progress, and change. The pursuit of remedies to eradicate political, military, and economic deficiencies was similarly evident in the legal domain. Ziya Gökalp articulated his perspectives on the origins, societal efficacy, and adaptability of law within the framework of the Turkism movement, presenting several methodologies that redefined the interplay among religion, law, society, and state. The most characteristic method among them (...) is the internal sociological methodology of law, which he equated with his own identity. Other Turkist figures of the time supported this theory, which aimed to bring dynamism to Islamic law in line with modern demands and changing conditions, as well as to establish a national law-society-state relationship. Another approach put forward by Gökalp was based on the distinction between legal (qāḍāī) and ethical/spiritual (diyānī) aspects that were established in traditional Islamic law. In Gökalp's intellectual life that extends from the last years of the Ottoman Empire to the first years of the Republic, two different stages stand out. Gökalp, who tended to restructure jurisprudential concepts with an original interpretation in the late Ottoman period, became a persistent defender of the distinction between religion and state as well as religion and law in the Republican period. However, he did not deny the role of religion in the existence of the nation and emphasized the place of religious institutions, such as the office of Sheikhul-Islam, in the Republican period. Although he took the traditional jurisprudential perspectives into consideration, he could not escape from the criticism of his fellow intellectuals such as İzmirli İsmail Hakkı, who represented the traditional understanding. This article addresses Ziya Gökalp's views that he developed on fiqh and sociology in the Turkish modernisation process and sheds light on the possible reflections of these views on the Republican period. (shrink)

This paper explores the methodological foundations of Thomas Piketty's recent book Capital in the twenty-first century. The current literature on Piketty's work lacks consensus as to which paradigm of economic thought Capital fits into. In response to that literature, this paper argues that Piketty offers a new methodological direction for economic science in the form of an analytical 'new-historicism'. The central emphasis of this methodology is an analysis of general dynamic laws on three levels: distribution, institutions, and history. A (...) new-historical methodological framework applies new analytical tools to old economic problems raised by Smith, Ricardo, Marx, and others. This distinguishes Piketty's framework from other contending paradigms or schools of economic thought, thereby alleviating confusion in the current literature surrounding Piketty's book. (shrink)

'An extremely readable book that should provoke both economists and students of economic methodology to think more deeply about what they are doing.' Roger E. Backhouse, Professor of the History and Philosophy of Economics, University of BirminghamEconomic Methodology provides an accessible introduction to the subject-matter of and literature on the methodology of economics. It presents issues in economics in order to demonstrate the need for methodological awareness and debate. The core of the book then (...) explains the content and development of thought in methodology in relation to issues in economics, with an especial emphasis on the most recent thinking in the area. (shrink)

A review of U. Mäki (ed.). Fact and Fiction in Economics, Cambridge: Cambridge University Press, 2003. pp. xvi 384. ISBN 0521 00957. As people interested mainly in theory, methodologists and philos...

The Methodology of Empirical Macroeconomics stakes out a pragmatic middle-ground between traditional, prescriptive economic methodology and recent descriptive methodology. The former is sometimes seen as arrogantly telling economists how to do their work and the latter as irrelevant to their practice. The lectures are built around a case study of a concrete example of macroeconomic analysis. They demonstrate that economic methodology and the philosophy of science offer insights that help to resolve the genuine concerns of macroeconomists. (...) Some examples of questions addressed include: What is the relationship between theoretical models and empirical observations? What is the relevance of macroeconomics to policy? Should macroeconomics be viewed as a special case of microeconomics? What is the place of long-standing philosophical issues in macroeconomics, such as the scope and nature of economic laws, the role of idealizations, methodological individualism, and the problem of causality? (shrink)

Is methodology fruitless? Intense controversy has resulted from attempts to understand economics through philosophy of science. This collection clarifies and responds to the issues raised, arguing that methodology is an essential activity.

A comprehensive bibliography of economic methodological works since 1860, this volume includes 2,244 entries divided into two primary sections. The first section covers works on economic methodology while Part Two deals with works on the philosophy of science. Many of the entries are annotated, including the classics in economic methodology, almost all of the books, and general works in the philosophy of science section. All other sections include an introduction to the topic and the articles collected under that (...) heading. (shrink)

First published in 1985, this title includes contributions from leading economists and addresses many seminal aspects of Keynes' work and methods. This revival will be of particular interest to lecturers and advanced students of economics.

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

The methodological foundations of any scientific discipline are shaped by the goals towards which that discipline is aiming. While it is almost universally accepted that the goals of explanation and prediction of natural and non-human phenomena have been met with great success since the scientific revolution, it is almost just as universally accepted that the social sciences have not even come close to achieving these goals. This raises the question addressed in this paper, namely, what is economics, and social (...) science more broadly speaking, for? What is their aim, and how is it similar and dissimilar to that of the natural sciences as we have come to classify them? I take up this question from a pragmatic perspective in this paper, setting economics within the wider context of social inquiry. Specifically, I turn to Hilary Putnam and John Dewey as exemplars of the pragmatic critique of any economics that sees its goals in line with those of the natural sciences, that is, as aiming for explanation and prediction according to governing laws of human behaviour. NB: this is a preprint that underwent some minor edits. (shrink)

First published in 1985, this title includes contributions from leading economists and addresses many seminal aspects of Keynes' work and methods. This revival will be of particular interest to lecturers and advanced students of economics.

Muslim legal culture is becoming more relevant to modern Ukraine, which can be explained, on the one hand, by the nature of Islam and, on the other, by the peculiarities of its current state in our country. After all, the internal logic of Islam, as a universal system that encompasses both religious and secular life, as one of the components of the awakening of Islam, involves recourse to Sharia, a strict adherence to which is an unmistakable criterion for Muslims of (...) deep religious faith. On the other hand, in addition to religious revival, in the lives of Muslims, social and economic, political, national and cultural problems need to be addressed and secular. It is secular relations that led to the formation of Muslim jurisprudence and its subsequent evolution. (shrink)

Chapter 5 is an essay on the methodology of equilibrium theory. In the course of examining recent controversies concerning lawlike claims and "assumptions" in economic theory, I reach a position similar to J. S. Mill's. Neo-classical economics is what Mill would call "a separate science." It follows a deductive method, since its basic laws supported by everyday experience. In its general equilibrium formulation, equilibrium theory possesses, however, no explanatory worth and very little explanatory importance, since its idealizations are (...) not legitimate. General equilibrium theory ought fundamentally to be regarded as an explanation of how economic equilibrium is possible. ;In conclusion I argue that Sraffa's contribution is a legitimate form of economic theorizing. Those methodological views, like Lionel Robbins', which would proscribe the sort of piecemeal theorizing Sraffa exemplifies, are, as methodological strictures, unjustified. In fact they involve an ideological distortion. Given the weaknesses in general equilibrium theory identified in Chapters 3 and 5, one has good reason to be eclectic. The Austrian theory, despite the Cambridge criticisms, may be useful in some investigations. A much more segmented economics built around Sraffa's work may have a great deal to teach us. Theories of capital, interest and exchange value currently are underdeveloped, unsupported, and subject to ideological influence. ;In Chapter 3 one special formulation of intertemporal general equilibrium theory is examined. I argue that general equilibrium theory may be taken as a theory of the rate of interest to which the Cambridge criticisms do not apply. Puzzles remain, however, concerning both the apparently lawlike claims and the unrealistic stipulations concerning background conditions that general equilibrium theory makes. ;In Chapter 4 Sraffa's system in The Production of Commodities by Means of Commodities is presented and tentatively assessed. I argue that it is consistent with equilibrium theory, but may be combined with other claims that are not consistent with equilibrium theory. What is puzzling but, I argue, methodologically legitimate in Sraffa's work is that he takes as givens factors like the composition of output, that are themselves subject to further economic analysis. Sraffa's work, when properly understood, can prove valuable to Marxian economists. ;Chapter 1 establishes a contrast between physical cost and marginal utility theories of exchange value and examines why issues concerning capital and interest are theoretically central to both theories. I point out that physical cost theories of value are not tenable. ;Chapter 2 is concerned with simplified aggregate capital theories, especially Wicksell's Austrian theory of capital, and with the Cambridge criticisms of such theories. The Cambridge criticisms show, I conclude, that aggregative capital theories make unwarranted economic claims. ;This dissertation examines from both an economic and a philosophical perspective controversies concerning the theory of capital and interest and the relationship of capital and interest to exchange value. The fundamentals of the neo-classical and neo-Ricardian approaches to economic theory are made explicit and compared. The neo-Ricardian approach is partially defended. (shrink)

Taking as its starting-point Guido Calabresi’s latest book – The Future of Law and Economics – the present article aims to explore the often neglected issue of value judgments and normativity in Law and Economics. I will show the importance of enquiring Calabresi’s methodological distinction between Law and Economics and Economic Analysis of Law and the related bilateralism thesis in order to understand the problematic relationship between methodological value judgments and ethical value judgments, the ‘distance’ between Calabresi (...) and Posner and the problematic notion of reformism. Then I will try to introduce a different notion of normativity. I will also show the existence of an unresolved tension in Calabresi’s methodological discourse between a positive approach, which seems to be privileged in this book, and his insistence on the inevitability of value judgments in economic analysis. Finally, I clarify the reasons for the ‘ignorance’ of values by the economist by distinguishing between economists’ “lack of self-awareness”, economists’ idolatry and the economists’ lenses. (shrink)

The Handbook of Experimental Economic Methodology, edited by Guillaume R. Fréchette and Andrew Schotter, aims to confront and debate the issues faced by the growing field of experimental economics. For example, as experimental work attempts to test theory, it raises questions about the proper relationship between theory and experiments. As experimental results are used to inform policy, the utility of these results outside the lab is questioned, and finally, as experimental economics tries to integrate ideas from other (...) disciplines like psychology and neuroscience, the question of their proper place in the discipline of economics becomes less clear.This book contains papers written by some of the most accomplished scholars working at the intersection of experimental, behavioral, and theoretical economics talking about methodology. It is divided into four sections, each of which features a set of papers and a set of comments on those papers. The intention of the volume is to offer a place where ideas about methodology could be discussed and even argued. Some of the papers are contentious---a healthy sign of a dynamic discipline---while others lay out a vision for how the authors think experimental economics should be pursued. This exciting and illuminating collection of papers brings light to a topic at the core of experimental economics. Researchers from a broad range of fields will benefit from the exploration of these important questions. (shrink)

This chapter canvasses the debate between John Rawls and his cosmopolitan critics over the demands of economic justice that arise beyond state borders. In particular, it examines the merits of four defenses of the position Rawls advances in The Law of Peoples that justice does not call for a cross-society egalitarian distributive principle: first, that such a principle would fail to hold states responsible for their economic position; second, that because societies do not have a fundamental interest in wealth, they (...) would not favor such a principle; third, that satisfying such a principle would not be feasible; and, fourth, that appeal to Rawls's constructivist methodology can explain why the egalitarian principles he takes to be suited for the state context are not suited for the international context. The chapter concludes that upon careful examination, none of these defenses succeed in plausibly motivating Rawls's rejection of global egalitarianism. (shrink)

Contemporary developments in economicmethodology have produced a vibrant agenda ofcompeting positions. These include, amongothers, constructivism, critical realism andrhetoric, with each contributing to the Realistvs. Pragmatism debate in the philosophies of thesocial sciences. A major development in theneo-pragmatist contribution to economicmethodology has been Quine's pragmatic assaulton the dogmas of empiricism, which are nowclearly acknowledged within contemporaryeconomic methodology. This assault isencapsulated in the celebrated Duhem-Quinethesis, which according to a number ofcontemporary leading philosophers of economics,poses a particularly serious methodologicalproblem for (...) class='Hi'>economics. This problem, asreflected in Hausman's analysis, consists ofthe inability of economics to learn fromexperience, thereby subverting the capacity totest economic theories. In this paper wedispute this position. Our argument is basedon a combination of Quine's holism with VanFraassen's constructive empiricism, especiallythe latter's analysis of empirical adequacy andhis pragmatic approach to explanation. Theresulting reorientation of economic methodologyrestores the capacity of economics to learnfrom experience and reinstates the imperativeof developing alternatives to orthodoxtheorizing in economics. (shrink)

The ArgumentIn this paper I argue first that Marx's Critique of Political Economy employs “critique” in the Kantian meaning of the term—i.e., determining the domain of legitimate application of the categories involved and maintaining that outside these borders understanding is led into error and entangled in metaphysics.According to Marx, his predecessors in political economy transgressed these boundaries of application, and therefore conceived of all different modes of production as being essentially similar to commodity production, and thus implied that commodity production (...) and the bourgeois form of life corresponding to it are “natural” not historical and transitory. In Marx's conception there are no super-historical economic categories or laws.I argue moreover that Marx's methodology of reconstructing the “development” of socioeconomic entities and categories from their “germ” or “cell” also serves his critical intention. Whereas social theorists of the time referred with organic metaphors to human collectives, Marx referred with such metaphors to economic entities only. The difference is crucial, since the first carries deterministic consequences for the development of society while the latter does not: Social form and historical development in Marx are contingent and not necessary, historical and not natural, transitory and not eternal.I also stress that Marx's procedure of critique is internal. He uses only such assumptions, observations, and arguments as could in principle also be used by the scholars criticized. Nevertheless the outcome of the critique is not merely a new theory but an entirely different one — i.e., a historical conception of the discipline of political economy and of its laws. (shrink)

The English Court of Appeal is currently faced with three analytically distinct approaches to the question of when one party owes another a duty of care in respect of her economic interests, all of which bear the authority of the House of Lords. Unable to choose between them, it has recently adopted a fourth approach combining which combines them, in the apparent belief that the combination will eradicate any individual deficiencies. Against the background of a recent case, the author argues (...) that this is a holding strategy at best and methodologically deficient. He also challenges the continuing lip-service paid by courts to models of liability based upon ‘assumptions of responsibility,’ examining and criticising the causes of their persistence in the law in the face of widespread academic criticism. Instead, the author argues, the House of Lords should now clearly endorse a single reasoning strategy to economic loss cases based on the three-stage approach in Caparo Industries v Dickman. Properly understood, this approach offers the best prospect of facilitating consistent and transparent decision-making in the longer term. (shrink)

This paper deals with an economist and philosopher, who is not very well known in the literature, namely Rudolf Stolzmann. Stolzmann considered himself a representative of Neo-Kantianism and in economics he is often ascribed to the social law movement of economics. The research question in this paper deals with the late works of Stolzmann, namely, “Nature and Goals of the Philosophy of Economics.” In this work, Stolzmann made use of another methodology compared to his earlier texts (...) in which society or a sense of community is deducted from a philosophical perspective. This paper aims to show the contradictions of this deductive method. This new approach is no longer compatible with Neo-Kantian philosophy and can be associated more closely with Hegelian or Neoplatonic philosophy; which Stolzmann appears to be unaware of. Conversely, his social organic theory gains greater plausibility and credence than before. Another result of the paper can be seen in the fact that Stolzmann did not use the deductive method consistently. Beginning from the fourth chapter, it gets confusing and Stolzmann mixed the deductive method with the inductive method. (shrink)

Using data on submitted and published manuscripts in Feminist Economics from 1995 to 2019, we examine differences in method and scope used by authors residing in the Global North and Global South. We specifically focus on research methods, intersectional analyses, region of analysis, and co-authorship status. Further, using logistic regression models, we examine the relationship between authors’ location and use of research methods. We find authors in the Global South are more likely to engage in empirical and mixed-methods papers (...) compared to Global North authors in our sample. Moreover, a greater share of Global South authors engage in intersectional analysis and exhibit geographical focus on developing countries. Drawing insights from the Feminist Economics manuscripts data, we argue that encouraging Global South research can contribute to the goals of the field of feminist economics – aimed at inclusivity, diversity of standpoints, and plurality in research methods, thereby improving overall economic research. (shrink)

In recent times, realism in economic methodology has increasingly gained importance. Uskali Mäki and Tony Lawson are the best-known realists within the discipline and even though their approaches are fundamentally different, both provide pragmatic defences of realism by claiming anti-realism to be the reason for the low quality of economic models. My paper will show that a pragmatic defence of realism is untenable and furthermore, I will show that for both Mäki's and Lawson's normative ideas there is no need (...) for realism. (shrink)

The purpose of this paper is to discuss the methodological foundations of the law and economics movement, with a special emphasis on the role and place of individuals in law and economics. Reviewing the works of the main contributors—the founders, indeed—to the law and economics movement, we show that all of them considered that the analysis of legal phenomena had to start from individual behavior, even as these very behaviors were embedded, to various degrees, though not determined, (...) in legal and institutional frameworks. They all use social, systemic, institutional, and anti-reductionist individualistic methodology. This is not inconsistent or contradictory. Indeed, methodological individualism does not imply to conceive human beings as (isolated) atoms living as if they were suspended in a social vacuum. (shrink)

(2013). The Elgar companion to recent economic methodology. Journal of Economic Methodology: Vol. 20, Methodology, Systemic Risk, and the Economics Profession, pp. 81-86. doi: 10.1080/1350178X.2013.774853.

Abstract Kaldor, one of the leading figures of the post?war ?Cambridge School?, has produced a large volume of methodological writings since the mid?1960s, which we will argue represents one of the major critiques of orthodox equilibrium economic theory produced this century. While Kaldor's position represents a fundamental and radical rejection of the methodological basis of equilibrium economics, he did not provide a systematically formulated alternative methodology for economics. Recent attempts at providing such a reconstruction has argued that (...) scientific realism provides the most convincing philosophical interpretation of Kaldor's methodological contributions. In this paper we will argue that van Fraassen's constructive empiricism represent a more compelling alternative methodological framework to realism for systematizing Kaldor's important contributions. In particular it will be argued that this constructive empiricist reading of Kaldor has the capacity to critically undermine the methodological basis of orthodox equilibrium economics. In addition we explore the potential of this alternative framework to provide a novel and challenging reconstruction of economic methodology. (shrink)

The experimental approach in economics is a driving force behind some of the most exciting developments in the field. The 'experimental revolution' was based on a series of bold philosophical premises which have remained until now mostly unexplored. This book provides the first comprehensive analysis and critical discussion of the methodology of experimental economics, written by a philosopher of science with expertise in the field. It outlines the fundamental principles of experimental inference in order to investigate their (...) power, scope and limitations. The author demonstrates that experimental economists have a lot to gain by discussing openly the philosophical principles that guide their work, and that philosophers of science have a lot to learn from their ingenious techniques devised by experimenters in order to tackle difficult scientific problems. (shrink)

The temporal single-system (TSS) quantitative approach to Marx's economics is analysed. It is shown that TSS models lack a clear equilibrium concept and a coherent (dis)equilibrium methodology, and that Marx's propositions on value and exploitation are tautologically obtained (i) by constructing a money costs theory of value, where by assumption values are equal to market prices, apart possibly from short-run deviations; and (ii) by arbitrarily assuming that the undefined monetary expression of labour time is positive. In general, the (...) shortcomings of the analytical framework make TSS claims, including the proofs of the law of the tendential fall in the profit rate, unwarranted. (shrink)

In this chapter, typical examples of methodological individualism explanation are borrowed from Raymond Boudon’s writings. They respectively aim at answering the following questions:Why did Athens’ allies defect in the Peloponnesian War?When does social organization aim at eliminating unintended effects?Why does the rule of unanimity often prevail in traditional village societies?Why do members of an unorganized group tend to defect?Why are collective powers often governed by the iron law of oligarchy?Why did capitalist agriculture develop much more slowly in France than in (...) England in the eighteenth century?Why has the immoral character of interest lending disappeared in modern societies?Why is there no socialism in the United States?Why do economic booms seem to be associated with higher suicide rates?Why does the diffusion of an innovation follow a chain reaction process in situations where interpersonal influence is greater?Why were Mithra cult and Freemasonry, respectively, successful in Ancient Rome and modern Prussia?Why were the peasants in ancient Rome hostile to monotheism?Why did the French intellectuals of the late eighteenth century worship Reason?Why did Indian peasants not adopt the birth control measures advocated by the Indian administration?Why do conflicts between employees in a Taylorized firm tend to be more violent? (shrink)

Milton Friedman's 1953 essay 'The methodology of positive economics' remains the most cited, influential, and controversial piece of methodological writing in twentieth-century economics. Since its appearance, the essay has shaped the image of economics as a scientific discipline, both within and outside of the academy. At the same time, there has been an ongoing controversy over the proper interpretation and normative evaluation of the essay. Perceptions have been sharply divided, with some viewing economics as a (...) scientific success thanks to its adherence to Friedman's principles, others taking it as a failure for the same reason. In this book, a team of world-renowned experts in the methodology of economics cast new light on Friedman's methodological arguments and practices from a variety of perspectives. It provides the 21st century reader with an invaluable assessment of the impact and contemporary significance of Friedman's seminal work. (shrink)

This book is an examination of the nature of economic explanation. The opening chapters introduce current thinking in the philosophy of science and review the literature on methodology. Professor Blaug then turns to the troublesome question of the logical status of welfare economics, giving the reader an understanding of the outstanding issues in the methodology of economics. This is followed by a series of case studies of leading economic controversies, which shows how controversies in economics (...) may be illuminated by paying attention to questions of methodology. A final chapter draws the strands together and gives the author's view of what is wrong with modern economics. This book is a revised and updated edition of a classic work on the methodology of economics, in which Professor Blaug develops his discussion of the latest developments in macroeconomics, general equilibrium theory and international trade theory. A new section on the rationality postulate is also added. (shrink)

The book argues that mainstream economists, who base their analyses only on the economic motivation of people, fail to explain and understand real-life economic phenomena. The economic crisis, which began in 2008, illustrates the relevance of psychic and social motivations, especially when combined with each other. This book discusses orthodox and heterodox economics, and offers the reader ample material on philosophy of science, psychology and sociology. A multidisciplinary economic perspective is constructed in which economics, psychology, and sociology are (...) integrated, and this multidisciplinary approach offers an understanding of real-life problems. Moreover, it offers researchers a rich source for further analysis. (shrink)

Papers produced for a conference of economists, economic methodologists and historians of economics, convened to reflect on the question of whether MSRP - the methodology of scientific research programmes - has proved useful in the light of 20 years' experience.

“This book aims to show that methodology is important and useful for experimental economists, but also that philosophers of science can learn from experimental economics”. With these words Francesco Guala makes clear right from the start what moved him to write this important book. The book is divided into two parts. The first part is dedicated to the theme of “inferences within the experiment,” and the second to “inferences from the experiment.” Each part is divided into five chapters.

This chapter focuses on the implications of economically self‐interested behavior by voters and lobbyists, rather than important issues of irredentism, demagoguery, and security. It also focuses on the political problems of liberalizing migration between poor and wealthy states. Economists often support temporary migration in order to guard against potential adverse effects of brain drain. International organizations can serve to engage in surveillance, communication, and adjudication in order to enforce rules. Responsibility for international economic migration could be assigned to an existing (...) organization or to a new organization. The chapter addresses the possible features of a new international organization addressing migration. It also describes the present migration‐related functions of the International Organization for Migration (IOM), International Labor Organization (ILO), and World Trade Organization (WTO). The ILO has broad experience in a variety of labor and migration issues, and its tripartite structure facilitates negotiations that involve the concerns of industry and labor. (shrink)

This chapter discusses the role of methodological individualism in behavioral economics. Since behavioral economics developed in reaction to traditional microeconomics, the chapter sketches first the latter’s understanding of methodological individualism. It argues that traditional microeconomics is based on three principles: the self-interest principle, the rationality principle, and the social change principle. The chapter then discusses experimental findings that led behavioral economists to relax all three principles. It argues that, in particular, the relaxation of the social change principle pushes (...) the boundaries of methodological individualism as understood in traditional microeconomics since it highlights ways in which social institutions, norms, and rules affect individual processes of preference formation. In doing so, behavioral economics invites intricate methodological discussions of the bidirectional relationship between social institutions and individual actions. (shrink)

The collective monograph «Determinants of Innovation and Investment Development of Multisectoral Entrepreneurship, Tourism and Hospitality Industry» is devoted to the 20th anniversary of the Educational and Scientific Institute of Economics and Law of Cherkasy Bohdan Khmelnytsky National University and is a continuation of the research tradition on the development of entrepreneurship, innovation, finance, competition, accounting and auditing problems, tourism, hotel and restaurant business. The results of the scientific research presented in the collective monograph show the achievements of the representatives (...) of various scientific schools, allow analyzing the experience gained and, considering current economic and political realities, contribute to the scientific substantiation of the prospects for the development of entrepreneurship, tourism industry, hotel and restaurant economy, enrich the intellectual potential of higher schools. The topics of sections and subsections identify the problem issues of innovation, investment and information technology in entrepreneurship, consider the competitive environment in the field of entrepreneurship, investigate the financial-economic and social problems, various directions of tourism industry development, declared by the World Economic Forum jointly with the World Tourism Organization (UN WTO). Particular attention is paid to the development of new trends in the hotel and restaurant business. A common task for scientists, educators, and employers in the conditions of international environmental instability is the formation and dissemination of new knowledge to achieve ambitious goals concerning the entrepreneurship development of tourism, hotel and restaurant business. The proposed discussion of current issues, experience and recommendation exchange will contribute to problem solving, research intensifying in the specified areas of activity. An important component of the modern economics is entrepreneurship; and the intensification of entrepreneurial activity should ensure overcoming of economic crises and their social and economic consequences, and determine the dynamic progress of a society and future welfare of people. It is entrepreneurship that is considered in many economically developed countries as a defining condition for a social and economic prosperity. Entrepreneurial activity involves all branches of economy including industrial, humanitarian and service areas. Therefore, it is necessary to study the key factors for the development of entrepreneurial activity in Ukraine. The current problems of entrepreneurship, tourism, hotel and restaurant business are extensively investigated by both domestic and foreign scholars. A number of researches focuses on these problems. Without diminishing the importance of their contribution to science, the need for further research and improvement should be noted. Therefore, in the monograph, special attention is paid to the state support of business structures, the regulation mechanisms of entrepreneurship, tourism, hotel and restaurant business, social sphere and interaction of market and state institutions, etc. The research was carried out using the developed scientifically substantiated methodological approaches based on the scientific developments of leading foreign and domestic scientists, which allowed proposing the specific directions of entrepreneurship development in the fields of economy, tourism, hotel and restaurant business. The unique nature of the monograph is not only its scientific significance, but also its practical application; since the substantiated positions, measures, proposals for the further transformation of economic processes in Ukraine and in the world have practical value. (shrink)

The growing acceptance and success of experimental economics has increased the interest of researchers in tackling philosophical and methodological challenges to which their work increasingly gives rise. I sketch some general issues that call for the combined expertise of experimental economists and philosophers of science, of experiment, and of inductive‐statistical inference and modeling. †To contact the author, please write to: 235 Major Williams, Virginia Tech, Blacksburg, VA 24061‐0126; e‐mail: [email protected].

The purpose of the study is to develop a methodology for the toolkit of evaluation criteria of a territorial resource, based on the development of a mechanism of criteria that can give a generalizing indicator, based on the consideration of the rhythmodynamics of the development of the territorial economy. The article discusses the problems of economic resources, when considering the methodology, it turned out that a separate approach is required in solving the problems of constructing evaluation indicators. Obviously, (...) when developing each, human capital is a priority. Adapted elements of international and domestic indicators require adjustments and additions, in order to "cross-cutting" assessment of the territory of the state, which is currently being carried out. (shrink)

What is the correct concept behind measures of inflation? Does money cause business activity or is it the other way around? Shall we stimulate growth by raising aggregate demand or rather by lowering taxes and thereby providing incentives to produce? Policy-relevant questions such as these are of immediate and obvious importance to the welfare of societies. The standard approach in dealing with them is to build a model, based on economic theory, answer the question for the model world and then (...) apply the results to economic phenomena outside. Data come in, if at all, only in testing a limited number of the model's consequences. Despite some critical voices, economic methodology too has by and large subscribed to a "theory first" approach to applied economics. Error in Economics systematically develops an alternative to the theory-based orthodoxy. It places the methodical study of evidence at the centre of the scientific enterprise and thus provides a foundation for a methodology of evidence-based economics. But the book does not stop at the truism that claims should be based on the best available evidence. Rather, detailed studies in the areas of measurement, causal inference and policy analysis show what it means for a claim to be evidence-based in the context of a concrete case. The examples discussed concern topics as diverse as consumer price indices, radio spectrum auctions, the transmission mechanism, natural experiments on minimum wages and the evaluation of counterfactuals for policy. Error in Economics is essential reading for economic methodologists, philosophers of science and anyone interested in how claims about socio-economic matters are validated. (shrink)