by Where economics went wrong David Colander and Craig Freedman’s Where Economics Went Wrong is a provocative book designed to inspire economists to serious reflection on the nature of economics and how it is practiced. It is a book to that seeks to stimulate discussion about the current state of the discipline; it should be read by anyone who categorizes what they do as applied policy work. I agree with much – though not all – of what Colander and Freedman’s write … Reliance on mathematics has obscured much of the assumed structure that economists work from, leaving us unable to clearly articulate assumptions or identify our often normative precepts. Adoption of the scientific method has resulted in the belief that economic theory can deliver useful,
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Where economics went wrong
David Colander and Craig Freedman’s Where Economics Went Wrong is a provocative book designed to inspire economists to serious reflection on the nature of economics and how it is practiced. It is a book to that seeks to stimulate discussion about the current state of the discipline; it should be read by anyone who categorizes what they do as applied policy work. I agree with much – though not all – of what Colander and Freedman’s write … Reliance on mathematics has obscured much of the assumed structure that economists work from, leaving us unable to clearly articulate assumptions or identify our often normative precepts. Adoption of the scientific method has resulted in the belief that economic theory can deliver useful, practical knowledge. However, this belief has not been tempered by a corresponding understanding of the limits of theory in a complex world where people do not always behave as rational actors, but are influenced by culture, society, history, and government structure. In this review essay, I explore some aspects of the Chicago-School story to illustrate why shifting the profession to Colander and Freedman’s vision of a Classical liberal attitude is likely to be a difficult task – and why the effort is valuable.
A book well worth reading, although yours truly have to confess of not being convinced that it really is possible — or even desirable — to separate ‘positive economics’ from ‘normative economics’. With the background of this year’s ‘Nobel prize’ in economics, it would certainly also have been interesting to evaluate what the ‘randomistas’ revolution with its (alleged) abandonment of theory for experiments means for the authors’ thesis on the separation between ‘science’ (theory) and its ‘application’ (policy).