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The Methodology of Economics: Or, How Economists Explain (Cambridge Surveys of Economic Literature), by Mark Blaug
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This book examines the nature of economic explanation. The author introduces current thinking in the philosophy of science and reviews the literature on methodology. He looks at the status of welfare economics, and also provides a series of case studies of leading economic controversies, showing how they may be illuminated by paying attention to questions of methodology. A final chapter draws the strands together and gives the author's view of what is wrong with modern economics. This book is a revised and updated edition of a classic work on the methodology of economics.
- Sales Rank: #994560 in Books
- Brand: Brand: Cambridge University Press
- Published on: 1992-07-31
- Original language: English
- Number of items: 1
- Dimensions: 8.98" h x .71" w x 5.98" l, .97 pounds
- Binding: Paperback
- 316 pages
- Used Book in Good Condition
Review
"This is a well-written and stimulating book...The summaries of the relevant literature are very good; its critical comments are balanced and fair. Many economists will find it a useful book". Journal of Economic Literature
"...If one is looking for a single book that might safely be put into the hands of economics students to inform them about relevant developments in the philosophy of science, about the tradition of self-conscious appraisal in their own discipline, and about the empirical substance of what they will almost everywhere be taught as mainstream economics, then this is it." Neil De Marchi, The Economic Journal
About the Author
Blaug is Professor Emeritus, Univeristy of London, Professor Emeritus, University of Buckingham, UK and University of Amsterdam, The Netherlands.
Most helpful customer reviews
12 of 12 people found the following review helpful.
A Classic and a Benchmark
By Matthias Huehn
This old and very short book on methodology enables novices to enter a philosophocal debate that is fragmented and decentralised. The book uses simple language and tries to educate not impress. Together with Alan Chalmers Mark Blaug is the best starting point for any student. However, it stops in the 1980s and therefore cuts off the debate at a critical point of time.
19 of 22 people found the following review helpful.
Time to move on from Lakatos
By Rafe Champion
The first edition of this book in 1980 established Blaug as a leading influence in this field, especially in his insistence on the importance of the testability or falsifiability of economic theories.
The first part of the book is a clearly written introduction to the modern philosophy of science. Popper is identified as the pivotal figure between the old positivism and the new heterodoxy of Kuhn, Lakatos and Feyerabend. Unfortunately he is still depicted as a "falsificationist" rather than a critical rationalist, a serious mistake in the first edition which might well have been corrected. Hands and Caldwell have subsequently made that step so perhaps Blaug will fix this in the second revised edition. Lakatos may have been the major influence in this matter of misunderstanding Popper, in any case the time has surely come to move on with the assistance of Popper's theory of metaphysical research programs (which are subjected to critical appraisal) rather than the theory of "untouchable" hard cores that was the legacy of Lakatos.
Blaug may be ready to make a decisive step in this area. Recently, meditating on the outcome of the second Greek Islands conference on methodology, he wrote "I have come slowly and extremely reluctantly to the view that they [the Austrians] are right and that we have all been wrong [on Walrasian general equilibrium]". This concession to the Austrians is a major shift for Blaug and this may enable him to take the next step and perceive the overlap between the Austrian assumptions and the major elements of Popper's program. There include realism, non-determinism, the flux of time, methodological individualism and the uncertainty of knowledge
The second part treats the history of economic methodology. This provides an opportunity to rubbish the modern Austrians for their a priori heuristic postulates (this is the old, or rather the younger, Blaug speaking). There is a chapter on falsificationism, and various other "isms" including operationalism, Friedman's instrumentalism and Samuelson's descriptivism. Unfortunately the treatment of instrumentalism and descriptivism (or conventionalism) falls far short of that which is offered in Boland's The Foundations of Economic Method (1982)
The heart and soul of the book should be the third part which is a methodological appraisal of various aspects of the neoclassical research program. As C Wright Mills pointed out, discussion of methodology in isolation from actual work in progress is unlikely to be fruitful, so this part of the book should stand as a test (a possible falsification) of the value of Blaug's methodological apparatus. It might have been even more helpful to include two of his own special areas of interest - education and the arts, in this section, but perhaps this work is not a part of the neoclassical research program.
The fourth part is a short commentary on what we have now learned about economics with advice on falsificationism, applied econometrics and the best way forward.
3 of 3 people found the following review helpful.
Magnificent and Essential Survey of Economic Method
By Rudolph V. Dusek
Blaug is noted as author of Economic Theory in Retrospect, a brilliant "presentist" reconstruction of past economic thought in terms of modern mathematical models. In the beginning of early editions of that work he included a survey of economics method which is considerably expanded in this book.
He surveys the traditional nineteenth century economic methodologists, such as Neville Keynes (J. M. Keynes' father), The scope and method of political economy. by John Neville Keyne John Stuart Mill, A System of Logic, Ratiocinative and Inductive and Cairns The Character and Logical Method of Political Economy. He also gives a general clear and condensed overview of the philosophies of science of Popper Conjectures and Refutations: The Growth of Scientific Knowledge (Routledge Classics), Thomas Kuhn The Structure of Scientific Revolutions, Imre Lakatos Criticism and the Growth of Knowledge: Volume 4: Proceedings of the International Colloquium in the Philosophy of Science, London, 1965, and Paul Feyerabend Against Method (Fourth Edition). In the second half of the book he treats a number of methodological issues concerning specific theories and disputes within economics, including the Friedman-Samuelson debate about "realism of assumptions" vs. instrumentalism.
There are a few minor slips, such as his identification of Lakatos' "hard core" with Joseph Schumpeter's "vision." The hard core are the central assumptions of a theory that are not given up in the face of counter-evidence, but are saved by modified auxiliary hypotheses. Schumpeter's "vision" is more the ideological and metaphysical background of a theory, more like Kuhn's paradigm. Rather the "vision" is the background presupposition for Lakatos' "negative heuristic," the injuction not to give up the hard core.
Overall Blaug's book is the most valuable survey of economic methodology available. I personally much prefer the first two editions to the most recent edition, as in the latter he gives up much of his position held in the first two editions.
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