nep-hpe New Economics Papers
on History and Philosophy of Economics
Issue of 2006‒11‒12
six papers chosen by
Erik Thomson
University of Chicago

  1. Did F. A. Hayek Embrace Popperian Falsificationism? - A Critical Comment About Certain Theses of Popper, Duhem and Austrian Methodology By van den Hauwe, Ludwig
  2. Is Macroeconomics a Science? By Barnett, William A.
  3. Entscheidungsfreiheit als Grundlage wirtschaftswissenschaftlicher Forschung - Bezüge zwischen Betriebswirtschaftslehre, Ethik und Neurobiologie By Küpper, Hans-Ulrich
  4. Social Consequences of Commitment By Isaac, Alan G
  5. La théorie et la modélisation macroéconomiques, d'hier à aujourd'hui. By Michel De Vroey; Pierre Malgrange
  6. Supply of Money By Barnett, William A.

  1. By: van den Hauwe, Ludwig
    Abstract: The author of this article argues that Hayek´s methodological outlook at the time he engaged in business cycle research was actually closer to praxeological apriorism than to Popperian falsificationism. A consideration of the Duhem thesis highlights the fact that even from a mainstream methodological perspective falsificationism is more problematic than is often realized. Even if the praxeological and mainstream lines of argumentation reject the Popperian emphasis on falsification for different reasons and from a different background, the prospects for falsificationism in economic methodology seem rather bleak.
    Keywords: General Methodology; Austrian Methodology; Falsificationism; Popper; Hayek; Duhem; Duhemian Argument; Testing of Theories; Meaning and Interpretation of Econometric Results; Correlation and Causality;
    JEL: B20 C10 B23 A12 E32 B53 B40
    Date: 2006
  2. By: Barnett, William A.
    Abstract: This paper was written as the first draft of the invited Foreword for the book, Money and the Economy, by Apostolos Serletis. The paper provides a critical view of those areas in which methodology in economics deviates from that in the physical sciences, provides examples and illustrations of those deviations, and emphasizes those areas of and approaches to economic research that most closely correspond with the nature of research in the physical sciences.
    Keywords: science; social science; politics; Federal Reserve; monetary policy
    JEL: B41 A11 C00 B20 A10
    Date: 2006–01–30
  3. By: Küpper, Hans-Ulrich
    Abstract: This paper analyses whether freedom of decision as a crucial precondition of normative deci-sion theory is questioned by ethics and neurobiology. It argues for an understanding of busi-ness ethics which sees the economic agents freedom of decision as the necessary basis for handling ethical questions in business practice, rather then as a limitation to this end. Analys-ing free will as a main object of scrutiny in neurobiology, it is hypothesised that acting in real-ity lies between plain determination on the one extreme and complete autonomy on the other. It supports the proposition in decision theory that managerial decisions are taken within the conditions of a certain framework. However, in the light of the recent developments in behav-ioural economics, ethics and neurobiology, it argues for the extension of this concept by con-sciously or unknowingly anchored norms.
    Keywords: Decision theory; ethics; experimental research; neurobiology; business ethics
    JEL: I23 M00
    Date: 2006–10
  4. By: Isaac, Alan G
    Abstract: This paper begins with a detailed computational introduction to a classic ACE model: an evolutionary prisoner's dilemma. The paper presents a simple but fully coded object oriented implementation of this model. (We use the Python programming language, which is shown to be a natural ally for ACE research). Using these tools, we demonstrate that player type evolution is affected by cardinal payoffs. We then explore a possible social benefit to commitment, where 'commitment' denotes an unwillingness to surrender a reciprocal strategy.
    Keywords: ACE; agent-based; computational economics; iterated prisoner's dilemma; evolutionary prisoner's dilemma; commitment
    JEL: C73 C63
    Date: 2006–10–11
  5. By: Michel De Vroey; Pierre Malgrange
    Abstract: Nous retraçons à grands traits l'évolution de la macroéconomie de sa naissance à nos jours, son émergence dans les années 1930, puis la période de règne sans partage de la macroéconomie keynésienne des années 1950 à 1970. L'étape suivante de son évolution est l'offensive menée par Milton Friedman et Robert Lucas contre la macroéconomie keynésienne. Les travaux de ces auteurs ont débouché sur un changement de perspective qui nous paraît mériter d'être épinglé comme une "révolution scientifique" à la Kuhn, l'émergence de la macroéconomie dynamique et stochastique. Avec celle-ci, le centre d'intérêt de la théorie et de la modélisation macroéconomie se déplace. Le thème des défaillances de l'économie de marché, et en particulier du chômage, est délaissé au profit d'un examen des phénomènes du cycle et de la croissance, ceux-ci étant étudiés à partir de l'hypothèse d'un fonctionnement efficace du système. Ces dernières années ont vu l'émergence d'une "nouvelle synthèse néoclassique" rejouant le jeu de la synthèse ancienne avec une combinaison d'éléments keynésiens et classiques, tout en adoptant la méthodologie nouvelle de discipline de l'équilibre et de rationalité des agents. ### [english abstract: An outline of the evolution from the birth up to present days of the macroeconomics is laid out, its emergence during the thirties, then the period of the domination of the Keynesian macroeconomics of the years 1950 to 1970. The following stage of the evolution has been the attack from Milton Friedman and Robert Lucas against Keynesian macroeconomics. We consider the works of these authors deserve the label of a "scientific revolution à la Kuhn", with the emergence of the dynamic and stochastic macroeconomics. Associated with this, the focus of macroeconomics has shifted. Themes linked to market failures, and especially to unemployment disappear, in favour of cycle and growth analysis, these last being studied from the postulate of efficient working of the system. These last years have seen the emergence of a "New Neoclassical Synthesis" mimicking the old synthesis in combining keynesian and classical elements, while adopting the new methodology of equilibrium discipline and of agents rational behaviour.] ###
    Date: 2006
  6. By: Barnett, William A.
    Abstract: This short paper is the encyclopedia entry on Supply of Money to appear in the second edition of the International Encyclopedia of the Social Sciences. The encyclopedia is edited by William A. Darity and forthcoming from Macmillan Reference USA (Thomson Gale).
    Keywords: monetary aggregation; index number theory; Divisia index; encyclopedia entry; aggregation theory; supply of money
    JEL: E5 E4 C43 G12
    Date: 2006–07–14

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