Issues in the Philosophy of Economics

The Action Theory of Exchanges is based on three main assumptions: i) an exchange is motivated by people having convergent preferences, ii) people exchange actions, and iii) offers and acceptances are crucial parts of an exchange and they bring about rights and obligations. The main aim of this paper is to discuss three aspects of this theory to better understand its ontological implications and, possibly, improve it. I first examine the expression “transferring the ownership” by showing an ontological issue behind (...) it; after that, I propose an interpretation that might solve this issue. I then show that convergent preferences are not enough to motivate an exchange; accordingly, one has to introduce two more preferences possessed by the agents. I finally propose a characterization of buying and selling (and buyer and seller) which, in addition to being compatible with the Action Theory of Exchanges, has the advantage of accounting for both monetary and non-monetary exchanges. (shrink)

الأحمق الأعظم» نظرية في علم الاقتصاد مؤداها أنه ليس من المُهم السعر الذي تشتري به الأصل، طالما أن ثمة أحمقًا ينتظر، وسيشتريه بسعرٍ أعلى. وبعبارة أخرى، تنص النظرية على أنه من الممكن بالفعل جني الأموال عن طريق شراء الأصول (حتى عندما تكون أسعارها مبالغًا فيها) ثم إعادة بيعها، حيث ستتمكن دائمًا من العثور على شخصٍ ما (أكثر حُمقًا) على استعدادٍ لدفع سعرٍ أعلى! هذه النظرية شائعة جدًا بين المستثمرين الذين يستثمرون في أسهم الشركات؛ فالمستثمر الذي تنطبق عليه – عن علم (...) أو عن غير علم – نظرية الأحمق الأعظم، من شأنه أن يشتري الأصول التي يحتمل أن تكون قيمتها مبالغًا فيها دون النظر إلى القيمة الفعلية لها، وكأنه يقول لنفسه: «إنني أحمق لأني أشتري بمثل هذا السعر الباهظ، لكنني سأجد أحمقًا أكبر سيكون على استعدادٍ لدفع أكثر مما دفعت»! (shrink)

On the standard interpretation, if a person holds cyclical preferences, the person is prone to acting irrationally. I provide a different interpretation, tying cyclical preferences not to irrationality, but to indecision. According to this alternative understanding – coined the indecision interpretation – top cycles in a person’s preferences can be associated with a difficulty in justifying one’s choice. If an agent’s justificatory impasse persists despite attempts to resolve the cycle, the agent can be deemed undecided. The indecision interpretation is compatible (...) with the standard interpretation of such cycles as instances of irrationality. Yet indecision corresponds to a first-person, non-instrumental perspective on the problem, whereas irrationality usually corresponds to a third-person, instrumental perspective. Due to these differences, interpreting cycles in terms of indecision offers a novel conceptual perspective, pertinent both for explanatory purposes and for the aim of normative theorizing. (shrink)

This paper proposes that goods (the things exchanged in financial transactions and an object of study in economics) should be individuated according to a two-place relation constituted by an object and a description. Several of the problems in contemporary philosophy of economics involve shifting focus from objects to descriptions, while certain phenomena central to micro-economics, market regulation, and political economy require consideration of one of the two places. The paper argues thatby considering both constituents in a relation, many of those (...) issues can be more effectively addressed, communicated, and even resolved. The issues that may be so resolved include the seminal discussions of transformable goods, or goods whose existenceor relevant properties are impacted by their means of acquisition (e.g., buying, giving, awarding, etc.). The two-place approachto individuation shows how the cases of transformable goods can be more effectively addressed without incurring problematicmetaphysical commitments which may spiral out into confusion in the ethical and social scientific literature. The paper thenargues that the two-place approach can be leveraged into more fruitful discussion in microeconomics and the ongoing literature inthe metaphysics and ethics of markets. -/- . (shrink)

I propose a solution to a problem raised by E.G. West’s paper “Adam Smith’s Two Views on the Division of Labour.” Smith seems committed to the views that the division of labour makes people more and less intelligent.

The Austrian School seems to remain outside the debate on the realism of economic models. In principle, given the association of the term “model” with the Chicago School, and also for understanding that Hayek had critized the model of perfect competition as unrealistic. Even though in previous opportunities we showed how the theory of market as a process could be understood as the model of the Austrian School, and that Hayek’s criticism to the model of perfect competition was not so (...) much of unrealistic, but that it was wrongly stated (Zanotti & Borella, 2015), and we developed the ontological foundation of the model in Hayek’s thought (Borella, 2019), in this paper we will show how it is posible to compare pattern predictions with models, and how in this sense, the Austrian School, also seems to get near, even without sufficiently noticing it, to the discussion on models in economics and their realism. Keywords: Realism of models- Hayek- pattern predictions-models . (shrink)

Local Currencies, Local Exchange Trading Systems, and Time Banks are all part of a new social movement that aims to restrict money's purchasing power within a certain geographic area, or within a certain community. According to their proponents, these restrictions may contribute to building sustainable local economies, supporting local businesses and creating “warmer” social relations. This article inquires whether the overall enthusiasm that surrounds alternative currencies is justified. It argues that the potential benefits of these currencies are not sufficient to (...) justify the restrictions they impose on money's purchasing power. Turning these currencies into effective channels of change, by increasing their scope and their strength, could severely hinder the pursuit of social justice, in a way that is probably not even necessary for achieving their objectives. The paper concludes that large-scale limitations of money's purchasing power are, therefore, undesirable. (shrink)

El concepto de desarrollo humano del Programa de las Naciones Unidas para el Desarrollo (PNUD) surge en 1990 como una crítica a la consideración de la economía como el fin último de los esfuerzos del desarrollo. En la visión del PNUD, la economía es considerada un fin relativo, es decir, un fin y un medio para el desarrollo humano. Al considerar, por su parte, el fin del desarrollo humano, este es identificado con el ensanchamiento de las opciones y libertades de (...) que gozan los individuos. En este sentido, este concepto de desarrollo humano hace alusión a una práctica política más que a un entendimiento ético-ontológico del ser humano, evitando referirse a desarrollo humano entendido como un desarrollo del ser humano. Este artículo explora los antecedentes del concepto del desarrollo humano del PNUD y los fines que consideran estos enfoques previos. Se observa que la consideración subjetivista del PNUD proviene de la teoría de Amartya Sen, quien queda sujeto a la crítica objetivista de Martha Nussbaum al no considera un fin objetivo para los asuntos humanos, crítica que puede de igual manera aplicarse al concepto de desarrollo humano del PNUD. (shrink)

Conocer los mecanismos que operan en el mundo social es tarea fundamental de la economía como ciencia. La transformación del mundo social está vinculada a la reorientación de esta disciplina. Tal es la propuesta de Tony Lawson y la Escuela de Cambridge. Para que la economía sea reorientada ha de ajustarse a los presupuestos ontológicos del Realismo Crítico. En este trabajo se intentará profundizar en la naturaleza de los mecanismos y su relación con la economía como ciencia, y se presentarán (...) dos dificultades en torno a esta noción: a) la posibilidad de una teoría económica de sistemas abiertos, y b) el conocimiento de los mecanismos. (shrink)

El Realismo Crítico Auténtico (RCA) sostenido por Uskali Mäki se distingue del Realismo Crítico de Lawson. En el marco del Realismo Mínimo se explicitará qué es el RCA y se presentará el Realismo Posible de los modelos económicos en su versión MISS. Se diferenciará el Realismo Mínimo del Realismo Científico Standard. Se desarrollarán las dificultades en torno al RCA.

El presente trabajo intenta profundizar en la noción de mecanismo en el Realismo Crítico de Tony Lawson. Penetraremos en la naturaleza de los mecanismos en este autor. Señalaremos su importancia para conocer el reino social, transformarlo y reorientar la economía. Mostraremos algunas dificultades presentes en la propuesta de Lawson en torno a esta noción: acerca de la viabilidad de una teoría económica para los sistemas abiertos; sobre el valor explicativo de los transfácticos y las posibilidades de conocer los mecanismos.

Se analizará en este texto la noción de aislamiento en el Realismo Crítico de Tony Lawson y su relación con su posición frente al uso de los modelos económicos mainstream para acceder al mundo social. Distinguiremos las nociones de abstracción y aislamiento en este autor. Mostraremos la irreductibilidad de las mismas y que la consideración de la complejidad de la realidad social se relaciona con su posición sobre el rol del aislamiento para llegar a ella.

Tony Lawson, fundador del Grupo de Ontología Social y del Taller Realista de Cambridge, ha propuesto el realismo crítico para reorientar la economía. La transformación del mundo social, que intenta Lawson, surge de la adhesión al realismo crítico, esto es, de trasladar el realismo trascendental de Roy Bhaskar al reino social. Con el propósito de profundizar en las críticas a este movimiento, explicitaremos en qué consiste el realismo crítico, y cuáles son los presupuestos filosóficos de la mainstream según este autor. (...) Plantearemos las críticas en torno a: a) la noción de economía mainstream, b) las posibilidades de una economía fundada en la ontología social, c) el realismo de los modelos económicos y d) las nociones de aislamiento y abstracción. (shrink)

Karl Popper presenta al realismo como su posición acerca del conocimiento, distinguiéndola del instrumentalismo y del esencialismo. Ataca del primero la consideración meramente instrumental de las teorías científicas. Del segundo, critica que sostenga la posibilidad de establecer la verdad definitiva de las teorías, y que éstas describen esencias. El instrumentalismo coincide con Popper en que no hay conocimiento de esencias a través de las teorías científicas, pero de ello infiere que las teorías son meros instrumentos. Popper señala que el carácter (...) meramente instrumental de las teorías las vuelve irrefutables. Porque un instrumento de predicción no puede ser refutado (cf. Popper (1972a, p. 149)). Además, el instrumentalismo no puede explicar el interés del científico por la verdad. Su esencialismo modificado, toma del esencialismo que “el científico aspira a una verdadera descripción del mundo o de algunos de sus aspectos, y a una explicación verdadera de los hechos observables” (Popper, 1972a, p. 150). Pero agrega que no es posible saber con certeza si sus hallazgos son verdaderos. Resaltar el carácter conjetural de las teorías científicas no implica disminuir la aspiración del científico a describir algo real. (shrink)

Cuestiones vinculadas a la responsabilidad social empresaria y la presencia de valores éticos en las empresas han cobrado especial importancia. Si bien no siempre se manifiestan concretamente, al menos se han hecho presentes en los aspectos a considerar en las organizaciones sociales. Pero los mayores inconvenientes al tratar el tema de la ética en la empresa, no residen en señalar si hay o no valores que rigen la práctica de las organizaciones sociales, porque en sentido amplio todos estaríamos de acuerdo (...) en que los hay, sino en determinar cuál es el contenido de la ética a la que se hace referencia cuando se habla de ética de la empresa; donde el concepto " valor " , ya no es entendido en sentido amplio, y " se convierte " en " determinados valores éticos " que ordenan o " debieran ordenar " el quehacer de las organizaciones sociales. Con el fin de señalar el contenido propio de esta ética, y siguiendo la propuesta de Adela Cortina, intentaremos penetrar en esto que la autora ha llamado ética de mínimos, sobre la que se apoya la ética de máximos que permite a las personas alcanzar la felicidad. (shrink)

El presente trabajo intenta profundizar en la noción de racionalidad y la lógica de la situación de Karl Popper en el marco del debate entre “economía sustantiva” y “economía formal o instrumental”. Con tal propósito realizaremos una breve aproximación histórica al concepto de racionalidad económica señalando los distintos aportes de diversos autores a la cuestión. Este marco histórico permitirá encuadrar el planteo que Karl R. Popper hace de la lógica de la situación como metodología de las ciencias sociales tomada de (...) la teoría económica. En cuanto a la racionalidad y la lógica de la situación en Popper distinguiremos algunas notas acerca del análisis situacional y de la noción de racionalidad que subyace al mismo. Analizaremos el principio de racionalidad y el debate en torno al status epistemológico de tal principio. (shrink)

La cuestión del principio de racionalidad en el pensamiento de Karl Popper pareciera no mostrarse con precisión (observación hecha por diversos autores), al menos no como lo es su propuesta falsacionista. Pero intentaré retomar las principales notas sobre este principio e indicar algunas aproximaciones al debate epistemológico que surgen en torno a él. Popper trata de hallar un método que permita el conocimiento de las ciencias naturales y de las ciencias sociales, proponiendo un monismo metodológico. Sin embargo, al referirse a (...) las ciencias sociales, señala que éstas han de realizar explicaciones basadas en tendencias que permitan construir modelos “en términos de individuos”, llamando a esto “individualismo metodológico.” Mostrando que en las ciencias sociales intervienen proposiciones históricas singulares, se hace presente la dificultad en torno a estas ciencias; en relación a esto explica que en la mayoría de las situaciones sociales hay un elemento de racionalidad, introduciendo así el “método de construcción racional o lógica” o “método cero.”. (shrink)

La presente obra ofrece un análisis crítico de la filosofía de la economía de Uskali Mäki; en particular de la consideración realista científica de la economía. Se intenta a lo largo del texto responder, de algún modo, a las preguntas que plantea Lehtinen en la introducción: “¿Están los economistas aspirando en absoluto a la verdad, o están solamente jugando un juego intelectual en que tales supuestos son aceptables por alguna razón misteriosa? ¿Están estudiando la economía en serio? ¿Están simplemente desinteresados (...) en la verdad?, o ¿hay tal vez alguna otra forma de considerar sus prácticas de modelar?” p. 1. (shrink)

Si bien no es habitual pensar a Hayek en términos de realismo, sino comprenderlo como neokantiano, presentaremos la interpretación realista fenomenológica de Hayek que ofrece Zanotti a lo largo de su obra. Señalaremos los aspectos centrales de la epistemología de Hayek y la lectura realista fenomenológica como una posición superadora tanto del positivismo como de una hermenéutica relativista.

Esta obra se encuadra en la discusión ortodoxia-heterodoxia en economía, en el marco de la epistemología de la economía y dentro de la filosofía de la ciencia. El cuadro general es una discusión metodológica en términos de economía: si los modelos formales mainstream son o no, aquello que nos permite explicar, predecir, y/o alcanzar a comprender algo del mundo social. En este ámbito el texto de Fullbrook se enmarca en la llamada economía heterodoxa, apartándose de la economía mainstream, el dogmatismo (...) narrativo y el atomismo ontológico (Fullbrook, 2015 y 2016). (shrink)

Introducir un recorrido a través de la historia y la teoría propia de la filosofía dela economía es una tarea del todo ambiciosa, sin embargo, Mariusz Maziarz lo lleva adelante en esta obra, que se puede considerar un manual actualizado de la filosofía de la economía y, en particular, de la epistemología de la economía. Aun-que no es un libro de historia del pensamiento económico ni de historia de la filosofía de las ciencias, sino más bien una iniciación ordenada a (...) los problemas de la epistemología de la economía, ellos se fundan en la filosofía de la ciencia y están atravesados por cuestiones y debates históricos. Quizás algo de eso sea aquello que Maziarz quiere desenredar en este texto. (shrink)

In the debate on realism of models in economics, the Austrian School and Hayekin particular, seem to have, in a certain way, remained outside. Assuming neoclassical models asunrealistic, the theory of the market as a process looks like a more realistic proposal. However, oneof the fundamental issue s in Hayek’s dissent is not so much the unrealism of the assumptions, but that the market equilibrium theory was not correctly raised, especially with regards to the perfectknowledge assumption. Despite this, in this (...) setting and in line with a previous paper (Zanotti & Borella, 2015), we will argue that Hayek’s spontaneous order may be understood as the Austrian School’s “model”, assuming Mäki’s MISS version of models (Models as Isolations and Surrogate Systems) and emphasizing the place of the ontological foundation of Hayek’s proposal when assessing his model. (shrink)

In this paper we will analyze Lawson’s criticism of Hayek for not having transcended positivism. We will distinguish two levels in the criticism: methodological and ontological. So far as methodological criticism is concerned, we consider that Lawson’s positivist interpretation of Hayek regarding the method in economics is not the only possible, and we will try to develop another one. With respect to ontological criticism, we will state that though it is possible to understand Hayek as an ontological positivist, since he (...) assumes an ontological individualism, this fact would not necessarily lead to positivism -question to which Lawson seems to bring Hayek closer after 1955- but a moderate ontological individualism could be assigned to Hayek founded on a realistic interpretation of Husserl’s phenomenology. (shrink)

El objetivo del presente trabajo es señalar algunas primeras aproximaciones a la cuestión del principio de racionalidad en el pensamiento de Karl Popper. Si bien este tema específicamente pareciera no mostrarse con precisión, (cuestión marcada por diversos autores), al menos no como lo es su propuesta falsacionista, se intentará retomar las principales notas sobre el principio de racionalidad e indicar algunas aproximaciones al debate epistemológico que surge en torno a este principio.

Even though Popper, Lawson and Mäki are realists, the three of them understand by realism something different and support different positions on the use of models in economics. In this article we will compare the three proposals on their conceptions of reality, the function and the nature of economic models and their use to study the social world.

This paper tries to deepen the notion of isolation in Tony Lawson´s Critical Realism and its relation with his position on the use of mainstream economic models to access the social world. I distinguish the notion of isolation and abstraction in this author. I show that the consideration of the complexity of social reality is related to his position on the role of isolation to reach it. Lawson´s social ontology is central to establish what the role is that isolation performs (...) in the knowledge of the social realm. There is, in this author, a pre-eminence of the ontological over the theoretical. How the world is determines the methodological possibilities to know it. (shrink)

The credit crises experienced in the US in year 2008 is labeled as perhaps the most significant crises since the great depression. The roots of the crises were found in the default of the sub-prime mortgages and the failure occurred in both the US and the UK. Due to the integrated nature of international financial systems the spillover impacted many countries as the economies in Asia and Europe were purchasers of the sub-prime mortgages that originated in both UK and US. (...) The impact of the credit crises in Canada is of unique importance due to the close proximity to US, and both the US and Canada being of great strategic importance to each other as well as one of the largest trading partners.Even though the international financial credit crises adversely impacted many countries, the evidence that has come across recent years point towards the conclusion that Canada was able to weather the crises much better than many other countries. (shrink)

Building on the system of reason provided for by the Greek philosopher and specifically Aristotle, St. Thomas Aquinas built a comprehensive system and theory of natural law which has lasted through the ages. The theory was further developed in the Middle Ages and in the Enlightenment Ages by many a prominent philosopher and economist and has been recognized in the Modern Age. The natural law-theory and system has been repeatedly applied to the spheres of economic thought and has produced many (...) lasting contributions such as private property rights and individual rights. In recent times with the collapses of the financial system and rapid globalization, there has been a renewed interest in the application of natural law theory to economics to counter a certain anthropology and distortion of values created by a modern economic system of selfpreservation deriving its insights from the philosophies of Thomas Hobbes and Niccolo Machiavelli. (shrink)

In economics, thought experiments are frequently justified by the difficulty of conducting controlled experiments. They serve several functions, such as establishing causal facts, isolating tendencies, and allowing inferences from models to reality. In this paper, I argue that thought experiments served a further function in economics: facilitating the quantitative definition and measurement of the theoretical concept of utility, thereby bridging the gap between theory and statistical data. I support my argument by a case study, the “hypothetical experiments” of the Norwegian (...) economist Ragnar Frisch (1895-1973). Frisch aimed to eliminate introspection and a subjective concept of utility from economic reasoning. At the same time, he sought behavioral foundations for economic theory that enabled quantitative reasoning. By using thought experiments to justify his set of choice axioms and facilitating the operationalization of utility, Frisch circumvented the problem of observing utility via actual experiments without eliminating the concept of utility from economic theory altogether. As such, these experiments helped Frisch to empirically support the theory’s most important results, such as the laws of demand and supply, without the input of new empirical findings. I suggest that Frisch’s experiments fulfill the main characteristics of thought experiments. (shrink)

Consistindo em um processo ético-jurídico de deliberação coletiva, o que se impõe à manifestação da Vontade Geral como um fenômeno histórico-cultural é a condição de imanência que a caracteriza em um movimento dinâmico-dialético que demanda uma formação econômico-social que possibilite a emergência de valores e práticas, condutas e comportamentos, necessidades e objetivos que, tendo como fundamento o interesse comum, se lhe correspondam, convergindo para uma forma de autodeterminação que guarda possibilidade de promover a superação da alienação das capacidades humanas no (...) contexto das relações socioprodutivas, a saber, a autogestão. Tal experiência social de autodeterminação coletiva, conforme assinala o artigo, envolve tanto a esfera política quanto o âmbito econômico e encerra a noção que implica desde a igualdade substancial até a efetiva participação política, sobrepondo-se ao viés mercadológico da organização econômico-social vigente e à estrutura burocrática corporificada pelo Estado no sistema capitalista. (shrink)

In the latter half of the 19th century, economic thought in the Germanspeaking world was dominated, both intellectually and academically, by the so-called historical school, from Wilhelm Roscher to Gustav Schmoller and others. In 1871, the Austrian Carl Menger published his Grun&tze der Volkswirtschaftslehre (Menger, 1976 (1871)), customarily referred to as one of the three simultaneous discoveries of marginalist economics-the other two marginalist ‘revolutionaries’ being Jevons in England and Walras in France. Twelve years later, in 1883, Menger published a major (...) methodological treatise entitled Untersuchungen iiber die Methode der Socialwissenschaften und der Politischen Oekonomie insbesondere (Menger, 1963 (1883)). This book included criticisms of some of the historicist principles of doing economics. In the same year, Schmoller, leader of the German historicists, wrote a critical review of Menger’s book (Schmoller, 1883). Menger reacted forcefully with a more straightforwardly polemical small book, Die Irrthiimer des Historismus in der deutschen National6konomie (Menger, 1884). Commentaries by others appeared in later years, but this brief episode amounted to what has thereafter been called the Methodenstreit between Menger and Schmoller. It has been established as perhaps the most famous methodological controversy in the history of the social sciences. (shrink)

This book is a collection and reworking of research done by Pascal Salin since around 1990. Salin is an economist in the tradition of the Austrian school of economics. He emphasizes the centrality of individual choice in an uncertain world in which individual actions interact to produce spontaneous orders. But he is no mere conduit of established ideas. He also offers his own highly original insights honed after a lifetime as an economist, one who has earned the respect in which (...) he is now held by his peers worldwide. The book makes delightful reading. Salin covers a lot of ground in this book, mostly within the topics indicated by the title, though in the final two chapters he goes beyond these and into the foundations of economic science. The book is divided into five parts: (1) firms, markets and competition, (2) globalization and international economic problems, (3) monetary integration, (4) money, finance and economic policies, and (5) foundations of economic theory. (shrink)

I defend the idea that a liberal commitment to value neutrality is best honoured by maintaining a pure cardinality component in our rankings of opportunity or liberty sets. I consider two challenges to this idea. The first holds that cardinality rankings are unnecessary for neutrality, because what is valuable about a set of liberties from a liberal point of view is not its size but rather its variety. The second holds that pure cardinality metrics are insufficient for neutrality, because liberties (...) cannot be individuated into countable entities without presupposing some relevantly partisan evaluative perspective. I argue that a clear understanding of the liberal basis for valuing liberty shows the way to satisfying responses to both challenges. (shrink)

The principle of assistance says that the global rich should help the global poor because they are able to do so, and at little cost. The principle of contribution says that the rich should help the poor because the rich are partly to blame for the plight of the poor. This paper explores the relationship between the two principles and offers support for one version of the principle of assistance. The principle of assistance is most plausible, the paper argues, when (...) formulated so as to identify obligations that arise from the needs of particular identifiable members of the global poor, not from impersonal rules or values. Under that formulation, the principle can explain why knowledge of the circumstances faced by individual members of the global poor can have such a marked effect upon the willingness of the global rich to provide help, and can offer a better grounded motivational basis for helping the global poor. These are real advantages, the paper argues, and ones that cannot be matched by stories that focus upon the ways in which the global rich contribute to global poverty. (shrink)

The book presents an interdisciplinary exploration aimed at renewing interest in Luigi Einaudi’s search for “good government”, broadly understood as “good society”. Prompted by the Einaudian quest, the essays - exploring philosophy of law, economics, politics and epistemology - develop the issue of good government in several forms, including the relationship between public and private, public governance, the question of freedom and the complexity of the human in contemporary societies.

USKALI MÄKI (Helsinki, 1951) is a philosopher of science and a social scientist, and one of the forerunners of the strong wave of research on the philosophy and methodology of economics that has been expanding during the last three decades. His research interests and academic contributions cover many topics in the philosophy of economics, such as realism and realisticness, idealisation, scientific modelling, causation, explanation, rhetoric, the sociology and economics of economics, and the foundations of new institutional and Austrian economics. He (...) is a coeditor of The handbook of economic methodology (1998); Economics and methodology: crossing boundaries (1998); Rationality, institutions and economic methodology (1993). And the editor of two compilations of essays that have become highly influential to the shaping of the field: The economic world view: studies in the ontology of economics (2001), and Fact and fiction in economics: realism, models, and social construction (2002). (shrink)

This article critically discusses the concept of economic rationality, arguing that it is too narrow and specific to encompass the full concept of practical rationality. Economic rationality is identified here with the use of the optimizing model of decision, as well as of expected utility apparatus to deal with uncertainty. To argue that practical rationality is broader than economic rationality, the article claims that practical rationality includes bounded rationality as a particular case, and that bounded rationality cannot be reduced to (...) economic rationality as defined here. (shrink)

A discussion of one of the three books by which McCloskey launched his own economic rhetoric. The main criticism is that McCloskey enlarged view of rhetoric is still not encompassing enough, being limited to rhetoric in the writing of economic literature, while leaving the function of metaphor and other tropes in the more basic processes of conceptualization, theory change, and construction of 'observed' phenomena.

The paper describes economic crises as a term with different kinds of meanings, a term which undergoes continuous development. The way of understanding this term is intimately connected with the role of state in the sphere of economy. Before the big economic crises nobody expected the state to interfere with the economy. However, after the crises in 1930's till the end of 1970's it was considered as one of the main tasks of the state. The role of state was to (...) prevent the crises or to reduce its negative consequences. Due to the dominant position of the economic thinking in the present-day world the meanings of the term economic crises influence also the meanings of term crises in other fields. (shrink)

What might it mean to say that there is such a thing as a hermeneutic circle in the social sciences? A consideration of some remarks by Charles Taylor and others and an interpretive reconstruction, and assessment, of the idea of such a circle.

The relationship between economics and the philosophy of natural science has changed substantially during the last few years. What was once exclusively a one-way relationship from philosophy to economics now seems to be much closer to bilateral exchange. The purpose of this paper is to examine this new relationship. First, I document the change. Second, I examine the situation within contemporary philosophy of science in order to explain why economics might have its current appeal. Third, I consider some of the (...) issues that might jeopardize the success of this philosophical project. (shrink)

It is argued that rather than a well defined F-Twist, Milton Friedman’s “Methodology of positive economics” offers an F-Mix: a pool of ambiguous and inconsistent ingredients that can be used for putting together a number of different methodological positions. This concerns issues such as the very concept of being unrealistic, the goal of predictive tests, the as-if formulation of theories, explanatory unification, social construction, and more. Both friends and foes of Friedman’s essay have ignored its open-ended unclarities. Their removal may (...) help create new common ground for more focused debate in economics. Here I show how F53 can be reread/rewritten as a socially constructivist fallibilist, and realist statement – in contrast to the received instrumentalist interpretation. (shrink)

David Hull accounts for the success of science in terms of an invisible hand mechanism, arguing that it is difficult to reconcile scientists' self-interestedness or their desire for recognition with traditional philosophical explanations for the success of science. I argue that we have less reason to invoke an invisible hand mechanism to explain the success of science than Hull implies, and that many of the practices and institutions constitutive of science are intentionally designed by scientists with an eye to realizing (...) the very goals that Hull believes need to be explained by reference to an invisible hand mechanism. Thus, I reduce the scope of Hull's invisible hand explanation and supplement it by appealing to a hidden hand explanation. (shrink)

The article identifies real losses of foreign economic activity of industrial enterprises of Ukraine under the influence of modern challenges. The main purpose of the study is to implement a scientific and methodological approach to assess the impact of modern challenges on the development of foreign economic activity of enterprises. A critical analysis of the content of scientific publications on the studied issues revealed the lack of an integrated approach to establishing the real losses of foreign economic activity of enterprises (...) under the influence of modern challenges. The urgency of solving a certain problem is due to the scale of the impact of modern challenges on the dynamics of foreign economic activity of industrial enterprises, which requires an assessment of such an impact for the further development of measures that will be aimed at minimizing the negative impact of modern challenges. The methodological basis is the system of methods used to obtain the results of the study: theoretical generalization and analytical methods ‒ to clarify scientific approaches in determining the impact of modern challenges on the development of foreign economic activity of enterprises; generalization, grouping and integral evaluation ‒ to determine the level of influence of modern challenges on the development of foreign economic activity of industrial enterprises in 2013‒2021; relative and absolute deviations, coefficient analysis of changes in foreign trade turnover ‒ to establish the volume of losses of foreign economic activity of industrial enterprises of Ukraine under the influence of modern challenges; logical generalization ‒ to obtain conclusions and develop recommendations based on research results. The object of research in the work is the foreign economic activity of enterprises. The article presents the results of assessing the impact of modern challenges on the development of foreign economic activity of industrial enterprises, which became possible due to the developed and implemented author's scientific and methodological approach. Analysis and logical generalization of the results of assessing the impact of modern challenges on the development of foreign economic activity of industrial enterprises became the basis for determining the real volumes of losses of their foreign trade turnover. The results of the study have practical value for the Ministry of Economy of Ukraine and the Entrepreneurship and export promotion office, because they can serve as the basis for developing a program of recommendations for activating the export initiative of industrial enterprises under modern conditions. (shrink)

I examine the history of the concept of spontaneity in philosophy and the social sciences, particularly as it relates to monetary phenomena. I then offer an argument for the general significance of spontaneity. The essay concludes that scholars across the humanities and social sciences, whatever their (disciplinary, political, ideological, etc.) persuasion, would be well-served to further develop the theory of spontaneity and its social effects.