Schmoller and Modern Economic Sociology

Gustav von Schmoller, the leader of the younger German Historical School of Economics, criticized a theoretical approach of classical and neoclassical economics and advocated a historical approach. Schumpeter critically interpreted Schmoller's research program as the prototype of economic sociology. Along the line suggested by Schumpeter, this paper formulates Schmoller's attempt of economic sociology as a historical, ethical, and realistic approach to economics, with a focus on his conception of the economy and his specific topics, i.e., the Methodenstreit, the stage theory of development and social policy. Finally, this paper compares Schmoller's economic sociology with the classical and the modern economic sociology and suggests his relevance to the present-day social theory