As made manifest by Clower's comments on their “science fiction” nature, general equilibrium theories present such peculiar and puzzling features that the methodologist must perforce seek some specific methodological accommodation for this part of economic theory. The role played by such theories in contemporary economics is so fundamental that the impossibility of appraising them by means of any version of falsificationism, and their patent lack of empirical content if approached with the conceptual devices of the methodology of scientific research programs, (...) have prompted several scholars interested in the methodology of economics to search for a reasonable way out. (shrink)

We discuss in this paper the scope of abduction in Economics. The literature on this type of inference shows that it can be interpreted in different ways, according to the role and nature of its outcome. We present a formal model that allows to capture these various meanings in different economic contexts.

InStabilizing Dynamics Roy Weintraub provides a history of stability theory from the work of Hicks and Samuelson in the late 1930s to the Gale and Scarf counterexamples in the 1960s. Unlike his earlier work in the history of general equilibrium theory this recent contribution is not an attempt to fit the Walrasian program into the narrow framework of some particular philosophy of natural science. Rather, the theme inStabilizing Dynamicsis broadly social constructivist. Simply put, the constructivist view of science is “that (...) scientific knowledge itself is constructed socially, in communities of scientists: Knowledge is constructed, not found”. (shrink)

Theoretical works in economics usually have a core consisting of proofs that a “model-economy” has certain properties. The economist constructs a model that can be looked on as a description of an economy, and then proves that certain relations hold in this economy and/or that certain relations in this economy depend on certain specific characteristics. The model-economy is usually described as simplified or idealized.

When reassessing the role of Debreu’s axiomatic method ineconomics, one has to explain both its success and unpopularity; onehas to explain the “bright shadow” Debreu cast on the discipline:sheltering, threatening, and difficult to pin down. Debreu himself didnot expect to have such an influence. Before he received the Bank ofSweden Prize in 1983 he had never openly engaged with themethodology or politics of mathematical economics. When in severalspeeches he later rigorously distinguished mathematical form fromeconomic content and claimed this as the (...) virtue of mathematicaleconomics, he did both: he defended mathematical reasoning againstthe theoretical innovations since the 1970s and expressed remorse forhaving promised too much because it cannot support claims abouteconomic content. The analysis of this twofold role of Debreu’saxiomatic method raises issues of the social and political responsibilityof economists over and above standard epistemic issues. (shrink)

This is the second of two articles in which I reflect on “generalized Darwinism” as currently discussed in evolutionary economics. In the companion article (Callebaut, Biol Theory 6. doi: 10.1007/s13752-013-0086-2, 2011, this issue) I approached evolutionary economics from the naturalistic perspectives of evolutionary epistemology and the philosophy of biology, contrasted evolutionary economists’ cautious generalizations of Darwinism with “imperialistic” proposals to unify the behavioral sciences, and discussed the continued resistance to biological ideas in the social sciences. Here I assess Generalized Darwinism (...) as propounded by Geoffrey Hodgson, Thorbjørn Knudsen, and others, concentrating on the roles of theory and model building in science (and the roles of analogy and metaphor therein), generative replication, and the relation between selection and self-organization. I then point to advances in current biology that promise to be more fruitful as sources of inspiration for evolutionary economics than the project to generalize Darwinism in its current, “hardened Modern Synthesis” form; and I draw some conclusions. (shrink)