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)

Economic formalism crowds out the analysis of change and adjustments to change under capitalism. The style of analytical narrative that was practiced by the first generation of neoclassical economists, in contrast, is more productive of genuine economic understanding. Despite Daniel Haus‐man's challenging argument to the contrary, I maintain that Joseph Stiglitz's work is formalist at its core. While I agree with Robert Heilbroner's critique of contemporary economics, there is a limited sense in which nonformalist economics can rely on universalistic assumptions. (...) And Thomas Mayer has provided useful guidelines for focusing nonformalist analysis on real‐world economic problems. (shrink)

Theories of social capital are popular because they claim to insulate society against both the coercion of states and the individualism of markets, as well as to better explain social prosperity and economic performance. But in fact laws, citizenship rights, compulsory associations and political institutions do a much better job of the former, while large-scale civic movements, like Poland’s Solidarity, with demonstrable impacts on the configuration of political power, are the historic keys to democratic prosperity and social confidence.

The recent economic crisis has brought to the fore another crisis that has been going on for many years, that of economic theory. The latter failed to predict and, after the event, cannot offer an explanation of why it happened. This article sketches out why this is the case and what constitutes the crisis of economics. On this basis, the case is made for the revival of an interdisciplinary political economy as the only way for offering an explanation of the (...) workings of the economy in general and of economic crises in particular. (shrink)

In an attempt to re-envision economics, the paper analyses Robert Heilbroner’s philosophy of economics through the lens of Max Weber’s philosophy of science. Specifically, Heilbroner’s position on vision, ideology and value-freedom is examined by contextualising it within a framework of … More ›.