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The Methodology of Positive Economics

In Essays in Positive Economics. University of Chicago Press. pp. 3-43 (1953)

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  1. Implications of smart decision-making and heuristics for production theory and material welfare.Morris Altman - 2019 - Mind and Society 18 (2):167-179.
    Conventional theory assumes that economic agents perform at optimal levels of efficiency by definition and this is achieved when individuals behave in a particular fashion. Moreover, neoclassical production theory masks the process by which optimal output can be achieved. I argue that economic theory should be revised to incorporate some key findings of behavioural economics, while retaining the conventional theory’s normative ideal of optimum output whilst rejecting its normative procedural ideals of how to achieve optimality in production. I argue that (...)
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  • Narrowing the Theory’s or Study’s Scope May Increase Practical Relevance.Mikko Siponen & Tuula Klaavuniemi - 1990 - In Mikko Siponen & Tuula Klaavuniemi (eds.), Proceedings of the 52nd Hawaii International Conference on System Sciences. pp. 6260-6269.
    Numerous articles in top IS journals note as a limitation and lack of generalizability that their findings are specific to a certain type of technology, culture, and so on. We argue that this generalizability concern is about limited scope. The IS literature notes this preference for generalizability as a characteristic of good science and it is sometimes confused with statistical generalizability. We argue that such generalizability can be in conflict with explanation or prediction accuracy. An increase in scope can decrease (...)
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  • Critical reflections on a realist interpretation of Friedman’s ‘Methodology of Positive Economics’.Edward Mariyani-Squire - 2017 - Journal of Economic Methodology 24 (1):69-89.
    Uskali Mäki has offered an innovative scientific realist account of Milton Friedman’s 1953 essay, ‘The Methodology of Positive Economics’, which directly challenges the dominant instrumentalist interpretation. This paper offers critical reflections on Mäki’s approach and interpretation. It is argued that Mäki’s method of rereading-rewriting the text is problematic; that an unforced instrumentalist account of unrealistic assumptions can be extracted from the text itself; and that seemingly realist passages can be plausibly read as expressing an instrumentalist stance.
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  • What Second Order Science Reveals About Scientific Claims: Incommensurability, Doubt, and a Lack of Explication.Michael Lissack - 2017 - Foundations of Science 22 (3):575-593.
    The traditional sciences often bracket away ambiguity through the imposition of “enabling constraints”—making a set of assumptions and then declaring ceteris paribus. These enabling constraints take the form of uncritically examined presuppositions or “uceps.” Second order science reveals hidden issues, problems and assumptions which all too often escape the attention of the practicing scientist. These hidden values—precisely because they are hidden and not made explicit—can get in the way of the public’s acceptance of a scientific claim. A conflict in understood (...)
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  • Causalité, explication scientifique et théorie économique.Thomas Ferretti - 2011 - Ithaque 8:17-40.
    Le modèle déductivo-nomologique domine depuis longtemps la réflexion philosophique concernant l’explication en science économique. Or, pour plusieurs, comme James Woodward et Tony Lawson, ce modèle ne considère pas suffisamment la causalité dans l’explication. L’objectif de cet article est double : 1- renforcer la critique que Tony Lawson adresse à l’économie contemporaine et 2- évaluer la théorie alternative qu’il propose, le « réalisme critique », qui tente de réintroduire la causalité dans l’explication en science économique. Nous conclurons que les considérations causales (...)
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  • Friedman's ‘instrumentalism’ and constructive empiricism in economics.Maurice Lagueux - 1994 - Theory and Decision 37 (2):147-174.
    This reassessment of the long debate about Friedman's thesis on the pointlessness of testing assumptions in economics shows that Friedman's three famous examples, on which a large part of the credit given to this thesis is based, far from substantiating it, can be used to establish radically opposite conclusions. Furthermore, it is shown that this so-called “instrumentalist” thesis, when applied by Friedman to economics, is of a quite different nature and raises much more serious problems than the standard instrumentalist thesis (...)
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  • Quantity competition, endogenous motives and behavioral heterogeneity.Alessandra Chirco, Caterina Colombo & Marcella Scrimitore - 2013 - Theory and Decision 74 (1):55-74.
    The article shows that strategic quantity competition can be characterized by behavioral heterogeneity, once competing firms are allowed in a pre-market stage to optimally choose the behavioral rule they will follow in their strategic choice of quantities. In particular, partitions of the population of identical firms in which some of them are profit maximizers while others follow an alternative criterion, turn out to be deviation-proof equilibria both in simultaneous and sequential game structures. Our findings that in a strategic framework heterogeneous (...)
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  • Decision Criteria in Ethical Dilemma Situations: Empirical Examples from Austrian Managers. [REVIEW]Michael Litschka, Michaela Suske & Roman Brandtweiner - 2011 - Journal of Business Ethics 104 (4):473-484.
    This article is the result of an empirical research project analyzing the decision behaviour of Austrian managers in ethical dilemma situations. While neoclassical economic theory would suggest a pure economic rational basis for management decisions, the empirical study conducted by the authors put other concepts to a test, thereby analyzing their importance for managerial decision making: specific notions of fairness, reciprocal altruism, and commitment. After reviewing some of the theoretical literature dealing with such notions, the article shows the results of (...)
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  • Arbitrage arguments.DanielM Hausman - 1989 - Erkenntnis 30 (1-2):5 - 22.
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  • Not a New Gold Standard: Even Big Data Cannot Predict the Future.Kai Jäger - 2016 - Critical Review: A Journal of Politics and Society 28 (3-4):335-355.
    ABSTRACTMany scholars believe that the proliferation of large-scale datasets will spur scientific advancement and help us to predict the future using sophisticated statistical techniques. Indeed, a team of researchers achieved astonishing success using the world’s largest event dataset, produced by the icews project, to predict complex social outcomes such as civil wars and irregular government turnovers. However, the secret of their success lay in transforming epistemically difficult questions into easy ones. Forecasting the onset of civil wars becomes an easy task (...)
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  • What economists say (and don't say) about politics.Anthony Woodlief - 2000 - Critical Review: A Journal of Politics and Society 14 (2-3):271-298.
    Abstract Sam Peltzman has brought discipline and common sense to economic analyses of voting and representation. Yet his approach suffers, like that of other economists, from disciplinary provincialism and a singular devotion to econometrics as a research methodology. Political science offers alternative models and research methods that can enliven and deepen the political analyses of Peltzman and other economists.
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  • Competition as an evolutionary process: Mark Blaug and evolutionary economics.Jack J. Vromen - 2013 - Erasmus Journal for Philosophy and Economics 6 (3):104.
    Mark Blaug and I agree that if there is a realist interpretation of economic behavior to be discerned in Friedman, it is to be found not in Friedman's belief that the profit motive overrides other possible motives, but in his belief that a selection mechanism is working in competitive markets. Our joint sympathy for evolutionary economics is largely based on a conviction that the conception of competition as a dynamic evolutionary process is rather plausible. We disagree, however, on two issues: (...)
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  • Rights and Well-Being in Amartya Sen’s Value Theory.Jeffrey Spring - 2011 - Journal of Value Inquiry 45 (1):13-26.
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  • Idealized laws, antirealism, and applied science: A case in hydrogeology.K. S. Shrader-Frechette - 1989 - Synthese 81 (3):329 - 352.
    When is a law too idealized to be usefully applied to a specific situation? To answer this question, this essay considers a law in hydrogeology called Darcy''s Law, both as it is used in what is called the symmetric-cone model, and as it is used in equations to determine a well''s groundwater velocity and hydraulic conductivity. After discussing Darcy''s law and its applications, the essay concludes that this idealized law, as well as associated models and equations in hydrogeology, are not (...)
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  • Inventing paradigms, monopoly, methodology, and mythology at 'Chicago': Nutter, Stigler, and Milton Friedman.Eric Schliesser - 2012 - Studies in History and Philosophy of Science Part A 43 (1):160-171.
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  • Methodology in Capital in the twenty-first century: a "new-historical" approach to political economy.Luke Anthony Petach - 2015 - Erasmus Journal for Philosophy and Economics 8 (2):21.
    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 (...)
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  • Ideal types and empirical theories.David Papineau - 1976 - British Journal for the Philosophy of Science 27 (2):137-146.
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  • Das Modell des Homo Sociologicus. Eine Explikation und eine Konfrontierung mit dem utilitaristischen Verhaltensmodell.Karl-Dieter Opp - 1986 - Analyse & Kritik 8 (1):1-27.
    The present paper focuses on the sociological model of man (also denoted as homo sociologicus or normative paradigm). It is discussed to what extent three problems limit its explanatory value: (1) behavior which is not normatively regulated and (2) behavior deviating from norms cannot be explained. (3) In case of norm conflicts it cannot be explained which of the normative expectations is followed. It is further discussed to what extent another model of man - which is called the “utilitarian”, “economic” (...)
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  • Puzzled by Idealizations and Understanding Their Functions.Uskali Mäki - 2020 - Philosophy of the Social Sciences 50 (3):215-237.
    Idealization is ubiquitous in human cognition, and so is the inclination to be puzzled by it: what to make of ideal gas, infinitely large populations, homo economicus, perfectly just society, known to violate matters of fact? This is apparent in social science theorizing, recent philosophy of science analyzing scientific modeling, and the debate over ideal and non-ideal theory in political philosophy. I will offer a set of concepts and principles to improve transparency about the precise contents of idealizations and their (...)
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  • Alan Kirman's Complex economics: individual and collective rationality. The Graz Schumpeter Lectures. London: Routledge, 2011, 272pp. [REVIEW]Stefan Mendritzki - 2011 - Erasmus Journal for Philosophy and Economics 4 (2):67.
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  • Welfare economics and positive neoclassical economics.Lansana Keita - 1999 - Journal of Value Inquiry 33 (3):335-351.
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  • Cognitive perspectives in economics.Ludovic Dibiaggio - 2005 - Mind and Society 4 (2):197-222.
    The integration of learning cognitive agents in the research agenda is an important step in the evolution of economics. However, relying on a retrospective analysis of the treatment of decision making in economics, this article argues that the cognitive programme aims to justify rational behaviour in an equilibrium framework rather than to integration an interpretative conception of agents' behaviour. As a consequence, the level of generality of analytical results remains limited and economists miss the opportunity to establish a discussion with (...)
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  • Creativity or Coercion: Alternative Perspectives on Rights to Intellectual Property.Peter Lewin - 2007 - Journal of Business Ethics 71 (4):441-455.
    Part one of this paper considers the question of property rights in general and asks how such rights can be justified, contrasting Consequentialist with other approaches and concludes that it is impossible to avoid a broadly Consequentialist approach. Part two considers the question of intellectual property (IP) and asks how property rights justifications apply to it. The basic economics if IP is indispensable in this discussion. Finally, part three, considers IP in the light of modern technological developments. I conclude that (...)
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  • On Some Problems to Apply the Economic Model of Behaviour in Political Science.Gebhard Kirchgässner - 2008 - Analyse & Kritik 30 (2):649-667.
    After a short description of the economic model of behaviour it is shown that there are two reasons why problems arise if this model is applied to political processes and decisions. First, such decisions are often ‘low cost’, i.e. ‘wrong’ decisions have hardly any impact on the decision maker. Second, the behaviour of single individuals or small groups of individuals is to be explained. The common root of this problem is the difficulty to predict behaviour which is mainly preference governed (...)
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  • Corporate response to social pressures: A typology. [REVIEW]John A. Kilpatrick - 1985 - Journal of Business Ethics 4 (6):493 - 501.
    The paper deals briefly with several definitional issues; discusses the concept of image as it determines the way managers see the world; as one aspect of the image, examines the contrasting views of conflict and cooperation in social and organizational relationships; and then presents a typology of corporate responses to pressures for socially responsible behavior: authoritarian, manipulative and bargaining. This typology was developed on the basis of the analysis of a large number of case histories of environmental conflicts, a number (...)
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  • Methodologische Überlegungen zum ökonomischen Imperialismus.Karl Homann & Andreas Suchanek - 1989 - Analyse & Kritik 11 (1):70-93.
    Starting point is the thesis that economics - as well as other social sciences - is imperialistic with regard to the area of its subject, but not with regard to its approach. Underlying economics is the following schema: Try to explain under the presumption that actors maximize their expected utility under constraints. Conditions and possibilities of interdisciplinary research within all sciences being considered imperialistic are discussed according to this schema. Theoretical guide-lines are provided by the systematic connection of ‘problem’ and (...)
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  • Rational Choice and Political Irrationality in the New Millennium.Tom Hoffman - 2015 - Critical Review: A Journal of Politics and Society 27 (3-4):299-315.
    ABSTRACTIlya Somin's Democracy and Political Ignorance uses a by-now familiar rational-choice lens with which to explain and analyze Americans’ widespread political ignorance. Unlike some scholars who tout rational choice on purely predictive or heuristic grounds, Somin claims that it also offers a more accurate description of reality, in this case better explaining the findings of empirical public-opinion research. In this essay, I compare Somin's central concept of rational ignorance and the related concept of “rational irrationality” with the earlier explanatory approach (...)
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  • The inexact and separate philosophy of economics: an interview with Daniel Hausman.Daniel M. Hausman - 2011 - Erasmus Journal for Philosophy and Economics 4 (1):67.
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  • Bart Engelen's Rationality and institutions: on the normative implications of rational choice theory. Saarbrucken: VDM Verlag, 2008. 276 pp. [REVIEW]Shaun P. Hargreaves Heap - 2009 - Erasmus Journal for Philosophy and Economics 2 (1):132.
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  • God and Man at the University of Chicago: Religious Commitments of Three Economists.J. Daniel Hammond - 2021 - Studia Gilsoniana 10 (5):1183–1217.
    The purpose of this paper is to examine how three very different Chicago economists, Milton Friedman, Frank H. Knight, and John U. Nef, Jr., handled the question of God and religion. The author shows that for each of these three figures, their stance on religion set limits on the effectiveness of their intellectual efforts in the public sphere of their university, the larger academic community, and American society.
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  • The world in the model: how economists work and think, by Mary S. Morgan, Cambridge, Cambridge University Press, 2012, 435 pp.A world of models: review of Mary S. Morgan, The world in the model: how economists work and think. [REVIEW]Itzhak Gilboa - 2015 - Journal of Economic Methodology 22 (2):235-240.
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  • Trajectories of Liberalism and Neoliberalism.Nicholas Gane - 2015 - Theory, Culture and Society 32 (1):133-144.
    This review article of The Making of Modern Liberalism and Masters of the Universe: Hayek, Friedman, and the Birth of Neoliberal Politics centres on the different trajectories of liberal and neoliberal thought that are mapped out by these two works. It is argued that to achieve an understanding of the meeting points, continuities and discontinuities between liberalism and neoliberalism it is necessary to examine the economic and political bases of these forms of governmental reason. By doing so, it is suggested (...)
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  • On the neural enrichment of economic models: recasting the challenge.Roberto Fumagalli - 2017 - Biology and Philosophy 32 (2):201-220.
    In a recent article in this Journal, Fumagalli argues that economists are provisionally justified in resisting prominent calls to integrate neural variables into economic models of choice. In other articles, various authors engage with Fumagalli’s argument and try to substantiate three often-made claims concerning neuroeconomic modelling. First, the benefits derivable from neurally informing some economic models of choice do not involve significant tractability costs. Second, neuroeconomic modelling is best understood within Marr’s three-level of analysis framework for information-processing systems. And third, (...)
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  • The Marketing Firm and the Consumer Organization: A Comparative Analysis With Special Reference to Charitable Organizations.Gordon Robert Foxall, Valdimar Sigurdsson & Joseph K. Gallogly - 2020 - Frontiers in Psychology 11.
    The accurate delineation of various forms of business organization requires a comparative analysis of their objectives, functions, and organizational structures. In particular, this paper highlights differences in managerial work between business firms and non-profits exemplified by the charitable organization. It adopts as its template the theory of the marketing firm, a depiction of the modern corporation as it responds to the imperatives of customer-oriented management, namely consumer discretion and consumer sophistication. It describes in §2 the essentials of the theory and (...)
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  • Normative Rechnungslegungsforschung im Abseits? Einige wissenschaftstheoretische Anmerkungen.Rolf Uwe Fülbier & Manuel Weller - 2008 - Journal for General Philosophy of Science / Zeitschrift für Allgemeine Wissenschaftstheorie 39 (2):351-382.
    Normative research has nearly vanished from the academic ‘mainstream’ in accounting. Due to its prescriptive and value-driven approach, normative accounting research has been stigmatized as being unscientific and largely replaced by positive studies. We put this stigma into perspective. We first conceptualize the ‘positive-normative’ distinction and identify this dichotomy in accounting research history. We then challenge the dogmatic confinement of science to descriptive (positive) approaches. Moreover, we debate the basic conditions for normative accounting research and conclude that methodological and epistemological (...)
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  • The perils of tweaking: how to use macrodata to set parameters in complex simulation models.Brian Epstein & Patrick Forber - 2013 - Synthese 190 (2):203-218.
    When can macroscopic data about a system be used to set parameters in a microfoundational simulation? We examine the epistemic viability of tweaking parameter values to generate a better fit between the outcome of a simulation and the available observational data. We restrict our focus to microfoundational simulations—those simulations that attempt to replicate the macrobehavior of a target system by modeling interactions between microentities. We argue that tweaking can be effective but that there are two central risks. First, tweaking risks (...)
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  • The usefulness of truth: an enquiry concerning economic modelling.Simon Deichsel - 2010 - Erasmus Journal for Philosophy and Economics 3 (1):119.
    This thesis attempts to justify a normative role for methodology by sketching a pragmatic way out of the dichotomy between two major strands in economic methodology: empiricism and postmodernism. I discuss several methodological approaches and assess their aptness for theory appraisal in economics. I begin with the most common views on methodology and argue why they are each ill-suited for giving methodological prescriptions to economics. Then, I consider positions that avoid the errors of empiricism and postmodernism. I specifically examine why (...)
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  • Between Lévi-Strauss and Braudel: Furtado and the historical-structural method in Latin American political economy.Mauro Boianovsky - 2015 - Journal of Economic Methodology 22 (4):413-438.
    The methodology of Latin American economic structuralism has been generally interpreted as an implicit extension of classic French structuralism of Claude Lévi-Strauss and others, without careful examination of the methodological pronouncements of Latin American economists and social scientists. The present paper provides a detailed treatment of how Latin American structuralist methodology was formed between the 1950s and 1970s, with emphasis on Celso Furtado's views. Furtado was influenced by both C. Lévi-Strauss's and F. Braudel's apparently incompatible approaches to structure and history. (...)
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  • The spontaneous market order and evolution.Naomi Beck - 2016 - Studies in History and Philosophy of Science Part C: Studies in History and Philosophy of Biological and Biomedical Sciences 58:49-55.
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  • Political Economy: History with the Politics Left Out?Roger Backhouse - 2012 - Historical Materialism 20 (3):24-38.
    This paper argues that Milonakis and Fine, in their bookFrom Political Economy to Economics, offer an account of history that systematically omits discussion of how economics has been shaped by the political and social context in which it developed. This contrasts with work by intellectual historians who have argued that such factors were crucial to understanding the history of economic ideas. It is ironic given that Milonakis and Fine are criticising economists for excluding the political and the social from economics.
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  • Ethos y Formalismo de la Ciencia Económica: El caso de la Teoría de la Elección Racional.Christian Escobar Jiménez - 2016 - Revista de Filosofía 72:5-24.
    El presente trabajo desarrolla varios aspectos epistemológicos de la Teoría de la Elección Racional. Se da una perspectiva histórica de la tradición científica occidental en la cual se inscribe la misma, ligándose profundamente a la epistemología idealista y racionalista. Se incluye también un repaso a la revisión crítica de la "racionalidad limitada" opuesta a la TER y de algunos elementos de estudios en psicología aplicados a la economía que contradicen los supuestos de la racionalidad sustantiva. Por último, se hace un (...)
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  • A Commentary on Peter Bent's ‘The Political Power of Economic Ideas: Protectionism in Turn of the Century America’.Eithne Murphy - 2015 - Economic Thought 4 (2):80.
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  • From philanthropy to "altruism": incorporating unselfish behavior into economics, 1961-1975.Philippe Fontaine - unknown
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  • The Methodological Status of 'Common Sense' in Economic Theory.Mackinnon Lauchlan - manuscript
    The present work was intended originally as a chapter for my January 2006 Ph.D dissertation, but now is essentially a 'working paper.' As is well known, economists make a number of abstract and unrealistic assumptions, such as for example characterising the economic agent as a rational maximiser. The present paper is concerned with assessing the methodological status of every-day common-sense observations in relation to such abstract and unrealistic assumptions. Following Popper and Hume, I propose a theoretical framework in which to (...)
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  • Dos cuestiones insuficientemente debatidas acerca de los supuestos en economía.Gustavo Marqués - 2004 - Análisis Filosófico 24 (1):59-81.
    El trabajo identifica dos problemas metodológicos que dificultan la contrastación de teorías económicas: 1) en su empleo habitual, no es posible decidir si se satisfacen sus condiciones de aplicación, antes e independientemente de la aplicación de las mismas; 2) si es admisible modificar las condiciones de aplicación de una teoría, debe aceptarse que también pueda ser "manipulada" su clase de predicciones consideradas relevantes. Ambas tesis conforman la base de la argumentación de Milton Friedman contra el realismo de los supuestos, pero (...)
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  • Cherchez la Firme: Redressing the Missing – Meso – Middle in Mainstream Economics.Stuart Holland & Andrew Black - 2018 - Economic Thought 7 (2):15.
    Aristotle warned against a 'missing middle' in logic (Gk Mesos – middle; intermediate). This paper submits that one of the reasons why there has been no major breakthrough in macroeconomics since the financial crisis of 2007-08 has been a missing middle in mainstream micro-macro syntheses, constrained by partial and general equilibrium premises. It maintains that transcending this needs recognition that large and dominant multinational corporations between small micro firms and macro outcomes – while also influencing both – merit the conceptual (...)
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  • Role of information and its processing in statistical analysis.Bryce Kim - unknown
    This paper discusses how real-life statistical analysis/inference deviates from ideal environments. More specifically, there often exist models that have equal statistical power as the actual data-generating model, given only limited information and information processing/computation capacity. This means that misspecification actually has two problems: first with misspecification around the model we wish to find, and that an actual data-generating model may never be discovered. Thus the role information - this includes data - plays on statistical inference needs to be considered more (...)
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  • Structure in economic theory and structure in real world economic systems.Lauchlan Mackinnon - manuscript
    While mathematical economic theory is replete with structural relationships, it has been suggested that economists have been far to content with the structure created in their conceptual theoretical worlds, and have done too little to conceptualise or study the structure inherent in actual economic systems. I advance the state of the argument by proposing a typology of theory types - correspondence, instrumental, speculative, and literary - with differing attempts and approaches to building some kind of 'correspondence' between the ontological elements (...)
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  • Political economy and ethic of care : toward a unified theory of utilization of assisted reproductive technologies.Emre Kayaalp - unknown
    Any ethical argument involving the problems of access to assisted reproductive technologies should entail the discussion of the decision protocol and consider the individual deliberating on the appropriateness of these remedies from the point of view of self and community. Yet, arguments based on patients' own moral calculations are rare in the bioethics literature. The moral voice behind most discourses concerning ARTs is that of an outwardly independent spectator, who nonetheless proceeds to justify a personally significant worldview in the utilization (...)
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