The paper discusses the sense in which the changes undergone by normative economics in the twentieth century can be said to be progressive. A simple criterion is proposed to decide whether a sequence of normative theories is progressive. This criterion is put to use on the historical transition from the new welfare economics to social choice theory. The paper reconstructs this classic case, and eventually concludes that the latter theory was progressive compared with the former. It also briefly comments on (...) the recent developments in normative economics and their connection with the previous two stages. (Published Online April 18 2006) Footnotes1 This paper suspersedes an earlier one entitled “Is There Progress in Normative Economics?” (Mongin 2002). I thank the organizers of the Fourth ESHET Conference (Graz 2000) for the opportunity they gave me to lecture on this topic. Thanks are also due to J. Alexander, K. Arrow, A. Bird, R. Bradley, M. Dascal, W. Gaertner, N. Gravel, D. Hausman, B. Hill, C. Howson, N. McClennen, A. Trannoy, J. Weymark, J. Worrall, two annonymous referees of this journal, and especially the editor M. Fleurbaey, for helpful comments. The editor's suggestions contributed to determine the final orientation of the paper. The author is grateful to the LSE and the Lachmann Foundation for their support at the time when he was writing the initial version. (shrink)

Despite the conclusions from the contemporary philosophy of science, many economists cherish the ideal of positive science. Therefore, value-free economics is still the central paradigm in economics. The first aim of the paper is to investigate economics' axiomatic assumptions from an epistemological perspective. The critical analysis of the literature shows that the positive-normative dichotomy is exaggerated. Moreover, value-free economics is based on normative foundations that have a negative impact on individuals and society. The paper's second aim is to show that (...) economics' normativity is not a problem because the discussion concerning values is possible and unavoidable. In this context, Weber and other methodologists are investigated. The conclusion of the paper is that science can thrive without strict methodological rules thanks to institutional mechanisms. Therefore, economists could learn from artists who accept the world without absolute rules. This perspective opens the possibility for methodological pluralism and normative approaches. (shrink)

This paper discusses the development of the field of economic methodology during the last few decades emphasizing the early influence of the "shelf" of Popperian philosophy and the division between neoclassical and heterodox economics. It argues that the field of methodology has recently adopted a more naturalistic approach focusing primarily on the "new pluralist" subfields of experimental economics, behavioral economics, neuroeconomics, and related subjects.

The backward induction controversy in game theory flared up and then practically ended within a decade – the 1990s. The protagonists, however, did not converge on an agreement about the source of the controversy. Why was this the case, if opposing sides had access to the same modelling techniques and empirical facts? In this paper I offer an explanation for this controversy and its unsettled end. The answer is not to be found in the modelling claims made by the opposing (...) protagonists, but in the tacit metaphors they operate under. Aristotle defined metaphor as giving a 'thing a name that belongs to something else' (Poetica, 1457b). The meaning of metaphors has not changed much since then – in contrast to models which are comparatively new, and still not well-understood, scientific tools. The controversy of backward induction in game theory provides a test bed for the explanatory power of metaphors. This paper frames the controversy in terms of metaphor choice to provide a common framework for the protagonists. This results in the identification of three different domains – mathematical logic, game theory and the world – each connected to the other via different metaphors. The controversy around backward induction is placed in, and tentatively explained by, this framework. (shrink)

We examine the most famous controversy between economists as a means of shedding fresh light on the current debate about economic methodology. By focusing on the controversy as the primary unit of analysis, we show how methodological considerations are but one of a whole set of stratagems strategically employed by each opponent. We argue that each opponent's preference for a particular kind of stratagems expresses his own specific scientific style (within the general scientific and cultural style of an age). We (...) also describe a dynamic dimension of the controversy, independent of the participants' intentions. Such a dimension is analysed in a "cycle" of the controversy, which begins with a well-defined issue and expands to additional topics, without reaching a "solution" to the initial issue. The definition and re-definition of the issue(s) at stake and of the difference between both participants is an essential and recurrent feature of such cycles; the conclusion of a cycle does not imply a real "closure" of the controversy, but only that each opponent has reached a satisfying degree of self-clarification. The controversy, thus, does not yield persuasion -- its ostensible aim. Rather, its "benefit" seems to lie in an unintended result -- clarification and deepening of contrasting approaches to the discipline -- due to its peculiar dynamics. In so far as the history of a discipline requires a reconstruction of such contrasts, it is indispensable for it to take into account the controversies where they emerge, and to view both the positive doctrines and the methodological posture of the contenders as parts of a wider framework, that is a scientific style. (shrink)

Presently it is en vogue to search and research business models heedful to concerns of social, moral, and ecological sustainability. On the view here defended, however, we ought not to strive for piecemeal corrections but for a thoroughgoing paradigm change of the predominant economic theories and practices in favor of a genuinely ‘humanistic management.’ This very call for humanistic management serves as an introduction into this paper. The article then lays out a concept of humanistic management in three methodologically distinct (...) steps, description – ascription – prescription, before addressing potential challenges to the approach of humanistic management and, finally, pointing out some of its practical implications. The article hence proceeds as follows: From a critique of the reductionist description of economic agency given in conventional economics, the paper moves on to the ascription of freedom and responsibility by and through human actors, which appears essential for any attempt at re-integrating moral prescriptions into economics and, by extension, management theory. The resultant, dignity-centered humanistic management conception is then defended against challenges from postmodern authors and defendants of ‘deep ecology’. Afterward, the article presents some normative postulates for management practice ; last, the main findings of the paper are summarized. (shrink)

In past decades, significant work in behavioural economics has decisively revealed the limitations of the human agency model known as Homo Economicus, whereby humans are purely driven by material self-interest. These behavioural findings are, however, far from integrated in mainstream economic theory, which builds heavily on the neoclassical tradition. Unbeknown to modern economics, Bernard Mandeville and Adam Smith already proposed a richer model of human agency in which choices also depend on the desire for social approbation. The social approbation mechanism (...) complements material self-interest and provides a more diverse toolset, which is able to explain social preferences. Mainstream economic agency confines the study of human action to an artificially-limited spectrum because it reduces society to atomistic individuals who maximise one all-purpose measure of value: utility, which is often instrumented by consumption. Collective action is therefore only sustainable where material incentives are in place, as the economic agent rides for free unless financially penalised. To explain pro-social behaviour from the standpoint of self-interest, Mandeville and Smith proposed that agents also maximise social approbation, which conveys incentives to act pro-socially because the desire for others' approval encourages compliance with social norms. The upshot for collective action is that, assuming social norms represent common interests, approval from others provides an extrinsic motive for pro-social behaviour. I formalise the mechanism by proposing a simple utility function in which agents maximise social approbation as well as material self-interest. (shrink)

In this paper we attempt to show that rhetoric plays an important role in economics as a science and in economy as a social system. Our task is rather demonstrative, but it aims at stripping away the illusion that economics has acquired a status equal to the natural sciences, in which there is no place for subjectivism and ambiguity. Economics belongs, after all, to the realm of the social sciences and as such it is subject to the limitations of human (...) cognition and understanding. We show that economics as a science is not free from employing sophisticated methods of persuasion and rhetoric. Next, we also try to demonstrate that rhetoric can be a useful tool in creating economic reality. It does not have influence on economic processes per se, but it is helpful in constructing an institutional architecture of the economy by influencing public opinion and decision makers. (shrink)

Recent developments in themethodology of economics have drawn uponpragmatist and realist philosophies of socialscience. These recent developments areoutlined. It is argued that a specific variantof realist philosophy known as critical realismcan provide the basis for a prescriptiveeconomic methodology that is not susceptible topragmatist criticisms.

Paolo Silvestri interviews Deirdre Nansen McCloskey on the occasion of her latest book, Bettering Humanomics: A New, and Old, Approach to Economic Science. The interview covers her personal and intellectual life, the main turning points of her journey and her contributions. More specifically, the conversation focuses on McCloskey’s writings on the methodology and rhetoric of economics, her interdisciplinary ventures into the humanities, the Bourgeois Era trilogy with its history of the ‘Great Enrichment’, her liberal political commitments, and the value and (...) meaning of liberty, equality, and solidarity. Finally, the conversation returns to McCloskey’s ‘humanomics’ approach: an economics with the humans left in. (shrink)

Uncertainty is a feeling of anxiety and a part of culture since the dawn of civilization. Civilizations have invented numerous ways to cope with uncertainty, statistics is one of those technologies. The rhetoric as the discourse of investment theory uncovers that the theory of statistics applied is a blind spot in the current conversation about investment theory and practice. Probability and prediction in investment theory look like a tying sale, since investment theory is founded on stochastical predictability. The proof of (...) unpredictability, however, lies outside the paradigm of statistics, because statistics assumes that the substrate, that produces probability outcomes, is stable. The theory of objective probabilities founds the Capital Asset Pricing Model but does not stochastically predict, and neither do Markowitz’s subjective probabilities for his portfolio theory. Statistical models for investing have a function, despite that they cannot predict: in essence, the models try to quantify statistically the equity, the fairness of the distribution of risk and return between parties involved. In the dissertation, a lot of ideas to change finance have had attention: the alternative statistical theory of Mandelbrot, bubble theory, political finance, the analysis of rhetoric, the analysis of culture, innovative practices, ethics in the form of virtue and value ethics, and the history of finance. How to make the culture of finance more heterogeneous? That starts with awareness of the current problems, the introduction of multiform metaphors for investment theory, and handling the ambiguity of theory uncertainty, by presenting, explaining and elaborating the alternatives. (shrink)

My philosophical intuitions are those of a scientific realist. In addition to being realist in its philosophical outlook, my philosophy of economics also aspires to be realistic in the sense of being descriptively adequate, or at least normatively non-utopian, about economics as a scientific discipline. The special challenge my philosophy of economics must meet is to provide a scientific realist account that is realistic of a discipline that deals with a complex subject matter and operates with highly unrealistic models. Unrealisticness (...) in economic models must not constitute an obstacle to realism about those models. What follows is a selective and somewhat abstract summary of my thinking about economics, outlined from two perspectives: first historical and autobiographical, then systematic and comparative. The first angle helps understand motives and trajectories of ideas against their backgrounds in intellectual history. My story turns out to have both unique and generalizable aspects. The second approach outlines some of the key concepts and arguments as well as their interrelations in my philosophy of economics, with occasional comparisons to other views. More space will be devoted to this second perspective than to the first. (shrink)

Herbaria principally host and study collections of dried vegetal specimens, and the curators and researchers employed there are mainly systematic botanists working on plant taxonomy. Twenty years ago, a textographic investigation of the University of Michigan Herbarium was conducted as part of a larger study. In this follow-up inquiry, we investigate what sort of changes have – or have not – occurred over the intervening period. Two of the five original Herbarium informants are still working there, and mainly through text-based (...) interviews and discourse analysis we trace their subsequent careers and research outputs. We find that there has been considerable technological change since the 1990s, such as the growth of molecular studies, the digitization of specimens, and the use of the web, which has greatly impacted the processes of scholarly textual production. However, technological effects on the highly distinctive genres of systematic botany turn out to be more moderate. This genre set, comprising monograph, flora, treatment, and protologue, remains little known to those who study the more general discourses of the academic and research worlds. (shrink)

The reply to five reviews of Bourgeois equality in a symposium in EJPE observes that all the reviewers admit the great force of ideas in causing the Great Enrichment. Materialism is dead. Liberalism reigns.

Privileging deductive first principles over inductive contingencies, I argue, contributed to the economic meltdown of late and will continue to limit the range of reasonable solutions available to solve entrenched economic problems. I cite Toulmin’s critique of scientific certainty and the rancor over the demise of the ninth planet Pluto to posit a role for rhetoric in making valid claims across all fields of study, calling for more productive uncertainty subject to vigorous argumentation.

Debates about the relationship between agricultural technology and the conservation of crop genetic diversity are often hampered by unclear vocabulary and imprecise data. Various interpretations of the terms “modern variety,” “local variety,” “hybrid,” and “green revolution” are first explored, and then evidence is examined regarding the effect of modern varieties on intra- and intercrop diversity, risk, input use, and farmer decision-making. The objective is to urge a more reasoned debate about the future of plant genetic resources.

How distinct is European philosophy of science? The first step is to characterize what is or might be considered as ‘European philosophy of science’. The second is to analyse philosophy of the social sciences as a relevant case in the European contribution to philosophy of science. ‘European perspective’ requires some clarification, which can be done from two main angles: the historical approach and the thematic view. Thus, there are several structural and dynamic things to be considered in European philosophy of (...) science and compare with other conceptions: the topics discussed; the contents proposed; and the style of thought used. The case of philosophy of the social sciences is relevant for the historical approach and for the thematic view. Historically, the Erklären–Verstehen methodological controversy arose in this continent, where the main authors and most of the influential approaches are located. Thematically, we can consider the contributions made by these European approaches... (shrink)

In the methodology of scientific research programs (MSRP) there are important features on the problem of prediction, especially regarding novel facts. In his approach, Imre Lakatos proposed three different levels on prediction: aim, process, and assessment. Chapter 5 pays attention to the characterization of prediction in the methodology of research programs. Thus, it takes into account several features: (1) its pragmatic characterization, (2) the logical perspective as a proposition, (3) the epistemological component, (4) its role in the appraisal of research (...) programs, and (5) its place as a value for scientific research. -/- The notion of “novel facts” is highly relevant in his conception, where several aspects are involved: the directions of novel facts, the different kinds of novelty, and the transition from six possible options of “novel facts” to four choices. Thereafter, the prediction of novel facts as the criterion of appraisal is considered. On the one hand, this requires analyzing the theoretical, empirical, and heuristic possibilities of appraisal; and, on the other, whether there is an overemphasis on the role of prediction in methodology of scientific research programs. As a consequence, there is an analysis of Lakatos’ criterion of appraisal in MSRP and economics. (shrink)