Some economists sometimes say that neoclassical economics will be abandoned when a better theory is available. And they use this as an excuse for not pursuing, say, heterodox economics. I am tempted to respond that a better theory already exists, for example, some combination of Post Keynesian and institutional economics... heterodox economists tend to emphasize a need for open systems models in economics. This emphasis is the first property of heterodox economics that I want to mention that makes it difficult for mainstream economists to accept the superiority of much heterodox work... Second, heterodox economists tend to be skeptical of the possibility of economic laws applying to all societies across all of human existence. By contrast, Lionel Robbins definition of economics as the study of the allocation of scarce means among alternative uses is often claimed to be universal. There is nothing in the mainstream about capitalism or how social norms might differ among societies... So, by adopting theories appropriate for the problem domain, heterodox economists have developed theories that are superior to many orthodox theories. But, because of this very appropriateness, mainstream economists are socialized to fail to perceive this superiority.
Posted on: Wed, 04 Jun 2014 23:49:53 +0000
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