Philosophy and Methodology

In the nineteenth century, scholars trained in both mathematics and political economy began to construct economic theory in mathematical form.

How rational are humans? Many important implications hinge on this seemingly innocuous question hinge, for not only economists, but all social scientists. 

All human institutions — governments, markets, money, etc. — suffer from the same problem: the imperfections so bitterly denounced by Schmookler. Greed, ignorance, myopia, irrationality are endemic in them all. 

Supporters of Kaldor-Hicks believe it useful to have a quantitative measure to assess the efficiency of different situations.  Although it may appear convenient to be able to judge policies

oth the establishment of property rights and their violation spring from actions: acts of appropriation and expropriation. However, in addition to a physical appearance, actions also have an internal, subjective aspect. 

Austrians have frequently criticized neoclassical economics for the unrealistic character of its assumptions. Neoclassical models are typically “idealized”;

What is certain is that mathematics cannot possibly be a valid means (to advances in economic understanding) unless and until it is used properly. That means that dimensions must be used consistently and correctly.

Although most economists model individual behavior using comparative statics, that approach ignores several important aspects of human action. How do we account for people having opposite responses to the same price change?

One sign of the lengthy distance we have traveled away from the liberal, individualist origins of the American political order is the surprising pr

Long before receiving his Nobel Prize, Friedrich von Hayek was well respected in the academic community.