Other things equal: Samuelsonian Economics

Deirdre McClosky argues that we need to get beyond the Age of Samuelsonianism in economics and get back to theorizing and observing. Economics, especially mainstream American economics, for all its promise, is in very bad shape because it has fallen into a cargo-cult version of “science” in which qualitative theorem-making runs the “theory” and statistical significance without a loss function runs the “empirical work.” Consequently, none of the high-prestige “work” in the journals is to be taken seriously. Most (say 95 percent) of its alleged “results” have to be done all over again, by economic scientists using—in preference to the mumbo-jumbo that has passed for scientific method among economists since 1947— real scientific methods (such as serious simulation disciplined by the world’s facts; and functional-form math; and statistical significance, when relevant, with loss functions; and economic history; and inquiry into all the other human sciences we economists have been invited so long to ignore). A real science—or a real inquiry into anything about the actual world—should both think and watch, theorize and observe.Economics

Value is Subjective and Other Fallacies in Economics

“Before I hand back your exams, let’s review the overall performance of the class. Listed here are the median and mean scores. You can also see the grades of five highest scores on exam…” I sat anxiously in my chair as my economics professor shared class statistics before finally handing back our tests. After he distributed them to a number of students, they mingled at the front the room, speculating who earned the top scores. “Dude, who do you think got the 101?” “I bet it was *David?” “Or maybe Mike? He’s always answering questions correctly.” “Could be. But I think one of them is definitely Seth – that guy is totally on the ball.” Always attuned to the behavior of the men in this class, I listened closely. When the professor finally handed back my exam, I was shocked. Not only had I done much better than anticipated, I earned the second highest grade. [excerpt

The Turn in Economics: Neoclassical Dominance to Mainstream Pluralism?

This paper investigates whether since the 1980s neoclassical economics has been in the process of being supplanted as the dominant research programme in economics by a collection of competing research approaches which share relatively little in common with each other or with neoclassical economics. A shortlist of the new approaches in recent economics includes game theory, experimental economics, behavioral economics, evolutionary economics, neuroeconomics, and non-linear complexity theory. Two hypotheses are advanced – one regarding the relation between economics instruction and economics research and one regarding the nature of the economics research frontier – to describe social-institutional practices that contribute to the replication of economics as a field. Two further hypotheses are advanced – one regarding the boundaries of the field and one regarding how the field appraises itself – to create a historical–methodological framework for evaluating the question of change in economics and change in recent economics in particular. Finally, the paper distinguishes three leading explanations – the ‘breakdown’ view, the ‘takeover’ view, and the ‘maturity’ view – of why neoclassical economics no longer dominates a mainstream economics

[Review of the book \u3ci\u3ePersonnel Economics\u3c/i\u3e]

[Excerpt] What is personnel economics? Despite its name (non-economists may be put off by the use of the word “personnel,” which was left behind by what is now called human resource management about a quarter century ago), personnel economics deals with issues of fundamental importance in the workplace. As the editors explain in the introduction, “The literature is distinguished from other parts of labour economics primarily by its focus on problems that are central to business.” Thus, personnel economics is economics, it is that part of economics that deals with workplace issues, and it is firmly grounded in labor economics. Whether you call it personnel economics, workplace economics, an economic approach to human resource management, or something else, the field is breaking exciting new ground, asking questions that simply were not asked when I and others of my academic generation were learning labor economics

Exploring a New ExpAce: The Complementarities between Experimental Economics and Agent-based Computational Economics

What is the relationship, if any, between Experimental Economics and Agent-based Computational Economics? Experimental Economics (EXP) investigates individual behaviour (and the emergence of aggregate regularities) by means of human subject experiments. Agent-based Computational Economics (ACE), on the other hand, studies the relationships between the micro and the macro level with the aid of artificial experiments. Note that the way ACE makes use of experiments to formulate theories is indeed similar to the way EXP does. The question we want to address is whether they can complement and integrate with each other. What can Agent-based computational Economics give to, and take from, Experimental Economics? Can they help and sustain each other, and ultimately gain space out of their restricted respective niches of practitioners? We believe that the answer to all these questions is yes: there can be and there should be profitable “contaminations” in both directions, of which we provide a first comprehensive discussion.Experimental Economics, Agent-based Computational Economics, Agent-Based Models, Simulation.

(WP 2018-04) Economics and Economic Methodology in a Core-Periphery Economic World

This paper uses a core-periphery distinction to characterize contemporary economics, economic methodology, and also today’s world economy. First, it applies the distinction to the organization of contemporary economics through an examination of the problem of explaining economics’ relations to and boundaries with other disciplines. Second, it argues that economics’ core-periphery organization is replicated in a similar organization of the use and practice of contemporary economic methodology in economics Third, it draws on the use of the core-periphery thinking in economics itself and the uneven development of the world economy to provide possible foundations for economics and economic methodology being organized in core-periphery terms. Fourth, the paper briefly discusses three as a potential countervailing forces operating on the development of contemporary economics that might work against its core-periphery organization

(WP 2011-01) Kenneth Boulding as a Moral Scientist

Kenneth Boulding’s AEA presidential address argued that economics is a moral science. His view derived from his general systems theory thinking, his three systems view of human society, and his early contributions to evolutionary economics. Boulding’s argument that economics could not be value-free should be distinguished from other well-known views of economics as a moral science, such as Gunnar Myrdal’s. This paper discusses the development and nature of Boulding’s thinking about economics as a moral science in the larger context of his thinking

TEN COMMANDMENTS FOR AGRICULTURAL ECONOMICS (AND PERHAPS OTHER) ADMINISTRATORS

There is some justification for the impression that agricultural economics has entered an era of relatively greater budget stress than that of the recent past. However, optimal strategies for sustaining or enhancing departmental productivity in research, teaching and extension are invariant to the budget level. These "strategies" are discussed in the form of "ten commandments" to department heads.Teaching/Communication/Extension/Profession,

A Multiplicity of Approaches to Institutional Analysis. Applications to the Government and the Arts

Four types of “economics” relevant for institutional analysis are distinguished: Standard Neoclassical Economics; Socio-Economics or Social Economics; New Institutional Economics; and Psychological Economics (often misleadingly called Behavioural Economics). The paper argues that an extension of Neoclassical Economics with elements from other social sciences (including political science, sociology, psychology, law and anthropology) is fruitful to explain institutions because it allows us to maintain the strength of that approach. Social Economics can play an important role helping to overcome the limitations of Neoclassics. However, it should become more concrete, integrate what is useful in Neoclassics, and should seriously engage in empirical research.Institutional Economics, Neoclassics, Psychological Economics, Behavioural Economics, institutions

Testing Behavioral Public Economics Theories in the Laboratory

"Behavioral economics", or the application of methods and evidence from other social sciences to economics, has increased greatly in significance in the last two decades. An important method by which many of its predictions have been tested has been via laboratory experiments. In this paper I survey and assess experimental tests of various applications of behavioral economics to the specific area of public economics, or "behavioral public economics". I discuss the basic elements of behavioral economics, the methodology of experimental economics, applications of experimental methods to behavioral public economics, and topics in which future applications should prove useful.experimental methods, behavioral economics