The critique of equilibrium theory in economic methodology: A constructive empiricist perspective

Kaldor, one of the leading figures of the post‐war ‘Cambridge School’, has produced a large volume of methodological writings since the mid‐1960s, which we will argue represents one of the major critiques of orthodox equilibrium economic theory produced this century. While Kaldor's position represents a fundamental and radical rejection of the methodological basis of equilibrium economics, he did not provide a systematically formulated alternative methodology for economics. Recent attempts at providing such a reconstruction has argued that scientific realism provides the most convincing philosophical interpretation of Kaldor's methodological contributions. In this paper we will argue that van Fraassen's constructive empiricism represent a more compelling alternative methodological framework to realism for systematizing Kaldor's important contributions. In particular it will be argued that this constructive empiricist reading of Kaldor has the capacity to critically undermine the methodological basis of orthodox equilibrium economics. In addition we explore the potential of this alternative framework to provide a novel and challenging reconstruction of economic methodology.     

Cyborg Politics and Economic Realities: Reflections on Elaine Graham's Representations of the Post/Human

Abstract

This article seeks to examine the political and economic context of cyborg culture and technology in Elaine Graham's Representations of the Post/Human. It begins by drawing out the relationship between Graham's study and Foucault's genealogical method and seeks to establish the ‘silent machine’ operating in Graham's analysis. By following three critical strands —knowledge as technology, economic determinism and imaginative agency and the economics of transcendence—the article highlights and extends a critique of capitalism and technology in the text. It argues that economics is now shaped by the machine and concludes by opening up a ‘politics of refusal’. Graham's work is acknowledged for bringing to light uncomfortable questions surrounding the politics of the machine.     

Kant on the Ontological Argument

The article examines Kant's various criticisms of the broadly Cartesian ontological argument as they are developed in the Critique of Pure Reason. It is argued that each of these criticisms is effective against its intended target, and that these targets include—in addition to Descartes himself—Leibniz, Wolff, and Baumgarten. It is argued that Kant's most famous criticism—the charge that being is not a real predicate—is directed exclusively against Leibniz. Kant's argument for this thesis—the argument proceeding from his example of a hundred thalers—although it may seem to beg the question, in fact succeeds against Leibniz. It does so because the charge of begging the question can be rebutted if one makes certain Leibnizian assumptions.     

III. Counterfactuals and the new economic history

In discussing Elster's views on the use of counterfactuals and on the nature of contradictions in society, it is contended that, in general, these will not seem especially controversial to those trained in neoclassical economics. Similarly, there is little disagreement in principle between the views of many ‘new economic historians’ and Elster on the use of counterfactuals in the study of historical problems. In evaluating Elster's critique of several applications of counterfactuals in the ‘new economic history’, it is argued that the concentration on broad philosophical questions may obscure the point that much recent controversy is based upon disagreements concerning factual issues and the nature of empirical relationships and magnitudes.     

A Spirituality of Dissent: Religion,culture and post-colonial criticism

This paper examines one aspect of post-colonial criticism— the relationship between culture and its representation— and considers the relevance of this for understanding children's spirituality in contemporary, global context. The paper provides particular focus on the now widely held premise in post-colonial criticism that domination within political and social systems is dependent upon the control and manipulation of cultural representation, with particular focus on the cultural representation of religion in British education. The crucial idea here is that such domination (including the disempowerment and subjugation of minorities) is dependent upon the creation of a culturally imagined 'other'. It is argued that this alienating socio-political and economic dimension of spirituality— and essentially colonial notion of 'otherness'— has largely been ignored in discussions of contemporary spirituality. The paper thus introduces into current debate the language of post-colonial criticism in order to demonstrate the inherent, if underplayed, politicization of spirituality. It concludes with a call to re-examine the representation of culture within a global, post-colonial framework through the characterization of a 'spirituality of dissent'.     

Folk theories,models and economic reality: A reply to Williams

In this article, I argue that Williams's sceptical view about the value of economic models expressed in 'The philosophy of economic modelling: a critical survey' [South African Journal of Philosophy, 18(2): 223–246, this issue], and widely shared amongst philosophers of science, is not warrented. Williams's error, I maintain, lies in his failure to adequately distinguish, (a) between theories in general and what he calls 'folk theories', and (b) between the different roles that models play in different sciences. With respect to (b), I suggest that Williams fails to recognize that scientists who lack the ability of physicists to constrain theorizing through rigorous controlled experiments must generally do a good deal of work investigating theories by means of models solely designed to test their formal implications, before further models with potentially direct applicability to the world can even be developed. Williams's central mistake, I argue, lies in confusing models of the first sort with models of the second.     

Galton and the birth of differential psychology and eugenics: Social,political, and economic forces

The social, political, and economic forces operative in nineteenth century Britain are briefly described. This permits tracing the birth of both the scientific study of individual differences and the field of eugenics to the infrastructure of society at that time. The distinction is made between the normative doctrine of individualism and the factual study of individual differences. It is argued that democratic—liberal—capitalistic—individualism, in part, conditioned the beginning of differential psychology and eugenics. In this process, Galton's liberal views concerning individual freedom and opportunity for full development became transformed into their dialectic—totalitarian—collectivism—a vision of an ideal state which did not come into being. It is paradoxically concluded that those same social forces which helped bring about the birth of differential psychology and the entailing eugenics ideology prevented the latter from being accepted and implemented.     

Love,money and madness: Money in the economic philosophies of Adam Smith and Jean-Jacques Rousseau

In this paper, the economic philosophies of Adam Smith (1723–1790) and Jean-Jacques Rousseau (1712–1778) are discussed, with special reference to their respective views on money. It is argued that self-love plays an important role in their philosophies of money. For Smith, self-love is the foundation of economic activity and a means to quantify exchange relations. Rousseau, in turn, rejects money because of the possibility that it may give rise to destructive and narcissistic forms of self-love—which he calls amour-propre. It seems that Smith's and Rousseau's views of money are in opposition to each other; however, both argue that their view of money becomes unsustainable, if not qualified, by the embedded tension present in self-love. For Smith, self-love must remain in tension with sympathy for the economy to function, as discussed in his Theory of Moral Sentiments. Rousseau concedes that in society both amour-propre and amour de soi (passionate, sacrificial love) are necessary. This tension introduces a moment of madness that may have important implications when contemporary philosophies of economics engage issues such as economic inequality and poverty.     

From Wald to Savage: Homo Economicus Becomes a Bayesian Statistician

Bayesian rationality is the paradigm of rational behavior in neoclassical economics. An economic agent is deemed rational when she maximizes her subjective expected utility and consistently revises her beliefs according to Bayes's rule. The paper raises the question of how, when and why this characterization of rationality came to be endorsed by mainstream economists. Though no definitive answer is provided, it is argued that the question is of great historiographic importance. The story begins with Abraham Wald's behaviorist approach to statistics and culminates with Leonard J. Savage's elaboration of subjective expected utility theory in his 1954 classic The Foundations of Statistics. The latter's acknowledged fiasco to achieve a reinterpretation of traditional inference techniques along subjectivist and behaviorist lines raises the puzzle of how a failed project in statistics could turn into such a big success in economics. Possible answers call into play the emphasis on consistency requirements in neoclassical theory and the impact of the postwar transformation of U.S. business schools.     

Methodenstreit in der Nationalökonomie

Methodenstreit in Economics. This essay offers an account of the Methodenstreit in economics between first Menger and Schmoller and later Max Weber and again Schmoller. It is argued that, for Schmoller, two issues were central; to use economics (widely conceived) as an instrument for economic policy and notably social policy: and to base the science empirically with all the modern methods available. In contrast, the Austrian position had a different view of economics as a science, seeing it more as a system of ideas, which implies a radically different use of empirical evidence. This revised version was published online in August 2006 with corrections to the Cover Date.     

Vulnerability by Marriage: Okin's Radical Feminist Critique of Structural Gender Inequality

The central thesis of Susan Okin's Justice, Gender, and the Family—that the ideology of the traditional family is the linchpin of contemporary gender inequality in the US—remains significant more than a quarter‐century after the book's publication. On a political register, Okin's insistence on structural analysis of gender inequality is an important corrective to recent mainstream feminist emphasis on individual women's choices. On an academic register, her work reveals the incoherence of scholarly classifications of feminist theories as “liberal feminist” or “radical feminist” by confounding such distinctions. I argue that her thesis is best understood in relation to the early radical feminism of Juliet Mitchell's Woman's Estate, a book Okin praised. Placing Okin's work in the context of its radical roots clarifies her “linchpin thesis,” but also reveals the limitations of her argument: in her emphasis on what Iris Young has termed the “distributive paradigm of justice,” Okin unnecessarily adopts a much narrower definition of the family than did Mitchell, and overestimates the influence of economic vulnerability after divorce on women's capacity to exit marriage. I suggest modifications to her theory, and conclude by showing the continuing relevance of her argument for analyzing recent legal, policy, and demographic shifts.     

A Multifactorial Approach to the Study of Gender Characteristics

ABSTRACT The present article reviews some of the central conceptual issues confronted by gender researchers as they have tried to forge a theory of gender identity that can account for the complexity and diversity of gender-related characteristics displayed by women and men. An emerging consensus suggests that gender is incorporated into an individual's self-concept in multiple and loosely connected ways. We review one example of this emerging multiplicity perspective, Spence's (1993) multifactorial gender identity theory, and describe three recent studies testing its usefulness. We also discuss ways in which multiplicity models of gender could benefit from considering parallel developments in the general personality literature regarding the problem of levels or domains. In particular, it is argued that Me Adams's (this issue) integrative three-level model of the structure of personality offers a helpful framework for guiding future test construction and theory development in gender research.     

Truth and Generalized Quantification*

Kripke [1975] gives a formal theory of truth based on Kleene's strong evaluation scheme. It is probably the most important and influential that has yet been given—at least since Tarski. However, it has been argued that this theory has a problem with generalized quantifiers such as All(?, ψ)—that is, All ?s are ψ—or Most(?, ψ). Specifically, it has been argued that such quantifiers preclude the existence of just the sort of language that Kripke aims to deliver—one that contains its own truth predicate. In this paper I solve the problem by showing how Kleene's strong scheme, and Kripke's theory based on it, can in a natural way be extended to accommodate the full range of generalized quantifiers.     

Children's representations of the earth: A methodological comparison

Investigation of children's understanding of the earth can reveal much about the origins and development of scientific knowledge. Vosniadou and Brewer (1992) claim that children construct coherent, theory‐like mental models of the earth. However, more recent research has indicated that children's knowledge of the earth is fragmented and incoherent. By testing the influence of question type (open vs. forced‐choice questions) and medium (drawings vs. 3‐D models) on the responses of 6‐year‐olds (N=59), this study investigated whether, and how, methodological differences account for the discrepant findings of previous research. Both the use of drawings and of open questions (Vosniadou and Brewer's methods) were found to increase the apparent incidence of naïve mental models. Moreover, the combination of 3‐D models and forced‐choice questions elicited more scientifically correct responses and higher proportions of scientific and inconsistent mental models than the combination of drawings and open questions. It is argued that children know more about the earth than the mental model theorists claim, and that naïve mental models of the earth are largely artifactual.     

Why True Globalization Depends on New Scientific Models

Ervin Laszlo's Science and the Akashic Field is vital to our transition from a long epoch of empire building—of the drive to control Earth's resources by fierce competition in a situation of perceived scarcity—to a future of truly cooperative global family. Laszlo's universe is a far cry from the one Western science has taught us and compatible with my own views as a “post-Darwinian” evolution biologist. In fact, no small number of Western scientists today have defected from the official scientific story of How Things Are to create or adopt various versions of the new scientific worldview Laszlo presents—a worldview rooted in older sciences and cultures such as Vedic, yet ultimately not just timely, but futuristic. These new scientific models, integrating ancient and modern knowledge, represent a paradigm shift greater than the Copernican revolution and are crucial to the next stage in humanity's evolution as a planetary species.     

A defense of indeterminate distinctness

On the one hand, philosophers have presented numerous apparent examples of indeterminate individuation, i.e., examples in which two things are neither determinately identical nor determinately distinct. On the other hand, some have argued against even the coherence of the very idea of indeterminate individuation. This paper defends the possibility of indeterminate individuation against Evans’s argument and some other arguments. The Determinacy of Identity—the thesis that identical things are determinately identical—is distinguished from the Determinacy of Distinctness—the thesis that distinct things are determinately distinct. It is argued that while the first thesis holds universally and there is no case of indeterminate identity, there are reasons to think that the second thesis does not hold universally, and that there are cases of indeterminate distinctness.     

Methodological altruism as an alternative foundation for individual optimization

Can economics, which is based on the notion of individual optimization, really model individuals who have a sense of exteriority? This question, derived both from Marcel Mauss's sociological analysis of the social norm of gift-giving and from Emmanuel Levinas's phenomenological analysis of the idea of 'otherness,' leads to the problem of whether it is possible to model altruism with the tool of optimization. By investigating the ways in which economic theory can address this challenge, and by introducing a postulate of methodological altruism following Levinas's theory of the constitution of subjectivity through otherness, this paper uncovers an alternative foundation for the very notion of optimizing calculation - no longer as a self-centered initiative, but rather as an other-centered response. This makes it possible to clarify the implicit content of usual economic individualism, and to see on the basis of which ethical arguments the economic method of optimization may be upheld. The paper studies the consequences of this renewed foundation of optimization for the organization of a fair and efficient interaction between altruists.     

Bayesian hierarchical response time modelling—A tutorial

Response time modelling is developing rapidly in the field of psychometrics, and its use is growing in psychology. In most applications, component models for response times are modelled jointly with component models for responses, thereby stabilizing estimation of item response theory model parameters and enabling research on a variety of novel substantive research questions. Bayesian estimation techniques facilitate estimation of response time models. Implementations of these models in standard statistical software, however, are still sparse. In this accessible tutorial, we discuss one of the most common response time models—the lognormal response time model—embedded in the hierarchical framework by van der Linden (2007). We provide detailed guidance on how to specify and estimate this model in a Bayesian hierarchical context. One of the strengths of the presented model is its flexibility, which makes it possible to adapt and extend the model according to researchers' needs and hypotheses on response behaviour. We illustrate this based on three recent model extensions: (a) application to non-cognitive data incorporating the distance-difficulty hypothesis, (b) modelling conditional dependencies between response times and responses, and (c) identifying differences in response behaviour via mixture modelling. This tutorial aims to provide a better understanding of the use and utility of response time models, showcases how these models can easily be adapted and extended, and contributes to a growing need for these models to answer novel substantive research questions in both non-cognitive and cognitive contexts.     

Knowledge of the aetiology and cost of the nocebo effect is increasing,but conceptualising expectancy and partialling out misattribution remain challenges: Comment on Faasse (2019)

The nocebo effect is a concerning phenomenon in which adverse outcomes are triggered by the treatment context. Faasse (2019) summarises recent evidence on mechanisms of the nocebo effect, proposes an updated model, and describes emerging techniques for reducing the nocebo effect. Faasse's model marks an important advance over prior models focussing only on expectancy and classical conditioning by incorporating the role of anxiety, which emerging evidence indicates can mediate the nocebo effect. The review also emphasises the importance of preventing the nocebo effect, given its resistance to extinction, as well as the need for translational research, both of which are timely points. However, the review also raises two challenges for nocebo research. The first concerns the conceptualisation of expectancy, with Faasse's model appearing to combine expectancy and verbal information into a single node. Such an approach suggests that verbal information necessarily and only elicits nocebo effects via expectancy, which may not hold true. The second concerns distinguishing genuine nocebo effects from misattribution. Faasse's review intentionally focuses only on the former, but it is argued that understanding the latter is necessary to accurately estimate the true cost of the nocebo effect as well as for prioritising interventions to minimise non-medication side effects. As such, in addition to Faasse's call for translational research—which I fully support—I propose that key nocebo research goals should be to understand how verbal information elicits nocebo effects outside of expectancy and to tease apart genuine nocebo effects and misattributed adverse symptoms.