European Contributions and Concepts
- New Horizons in Institutional and Evolutionary Economics series
Edited by Jürgen G. Backhaus
Chapter 8: The evolution of the economic principle and motive towards a creative homo agens
Hans Maks INTRODUCTION The more or less received opinion equates neoclassical insights with those of Chicago School economists of the last half of the twentieth century. This equation, of course is a very dubious one. It is even to a large extent untenable. The neoclassical revolution as a reaction on the classical school around the 1860s has a much broader scope than Chicago. The development within neoclassical economics lead to a philosophy of the economic science that stands clearly in contradiction with Chicago with its essentially perfect rationality and its narrow economic motive. In evolutionary economics the agents are bounded rational. In this paper the development of apriorism, the mainstream philosophy of economic science, towards bounded rationality is sketched. An essential element of apriorism is the idea that the economist should always start his or her analysis from a core of assumptions, in which he or she can have great confidence. The mainstream philosophy of economic science, at least until the 1950s, is apriorism, especially empirical apriorism. A great number of economists, when writing about their philosophy of science, reveal ideas which are related to those of the classical author John Stuart Mill, the Neo-Classical and Austrian author Carl Menger and neoclassicist Lionel R. Robbins and the Austrian Ludwig von Mises. This applies, for example, to Senior, Cairnes, Dietzel, J.M. Keynes, Schumpeter and Nelson and Winter. In my seventh section this point is further developed. Therefore, to understand apriorism it is useful to give a fairly extensive and precise sketch...
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