by Summary:
The good (ideal) and the bad (real) of conventional economics. The policy consequences are essentially two-fold. The first is in not recognizing the disjunction between the ideal (formal) and the real (empirical), which violates the basic requirement of a scientific approach and makes the undertaking an excursion in philosophy rather than science, even though it is dressed put to look like science. The consequence is policy formulation that doesn't lead to the predicted results, since it is based on errors built into the assumptions. The second is in recognizing the disconnect and trying to fit the real to the ideal through policy, which is a fool's errancy, since the assumptions as such that framework cannot generate models that are feasible to implement socially and
Topics:
Mike Norman considers the following as important: Arrow-Debreu-Mackenzie, conventional economics, economics profession, Sonnenschein-Mantel-Debreu
This could be interesting, too:
The good (ideal) and the bad (real) of conventional economics. The policy consequences are essentially two-fold. The first is in not recognizing the disjunction between the ideal (formal) and the real (empirical), which violates the basic requirement of a scientific approach and makes the undertaking an excursion in philosophy rather than science, even though it is dressed put to look like science. The consequence is policy formulation that doesn't lead to the predicted results, since it is based on errors built into the assumptions. The second is in recognizing the disconnect and trying to fit the real to the ideal through policy, which is a fool's errancy, since the assumptions as such that framework cannot generate models that are feasible to implement socially and
Topics:
Mike Norman considers the following as important: Arrow-Debreu-Mackenzie, conventional economics, economics profession, Sonnenschein-Mantel-Debreu
This could be interesting, too:
Mike Norman writes David Ricardo’s explanation of the case for free trade rests on some basic economic principles, but also has a big public policy blind spot — Miles Corak
Mike Norman writes REVIEW ESSAY–The Reformation in Economics: A Deconstruction and Reconstruction of Economic Theory by Philip Pilkington Marc Morgan
Mike Norman writes The old guard trying to stay relevant and failing — Bill Mitchell
Mike Norman writes Three Economic Ideas Threatening to Defenders of the Status Quo — Peter Cooper
The good (ideal) and the bad (real) of conventional economics.
The policy consequences are essentially two-fold.
The first is in not recognizing the disjunction between the ideal (formal) and the real (empirical), which violates the basic requirement of a scientific approach and makes the undertaking an excursion in philosophy rather than science, even though it is dressed put to look like science. The consequence is policy formulation that doesn't lead to the predicted results, since it is based on errors built into the assumptions.
The second is in recognizing the disconnect and trying to fit the real to the ideal through policy, which is a fool's errancy, since the assumptions as such that framework cannot generate models that are feasible to implement socially and politically because homo economicus is a fictional construct with little resemblance to the actual homo socialis. This leads to policy that is impractical and the results are the evidence of this.
Lars P. Syll’s Blog
Lars P. Syll | Professor, Malmo University