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The Characteristics and Methods of Economics

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Philosophy of the Economy

Part of the book series: SpringerBriefs in Philosophy ((BRIEFSPHILOSOPH))

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Abstract

This chapter deals with economic method, highlighting the relevance of striking a reasonable balance between theory and empirical observations. While data without theory is useless, theory without data leads to an imaginary construct detached from reality, especially in a contingent, free, and culture- dependent matter as the economy. The difficulties stemming from this contingency are partially overcome with probabilistic generalizations based on natural and social regularities and trends. As a result, the predictive power of economics is always limited.

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Notes

  1. 1.

    All terms used by Fritz Machlup (1961). Sorokin speaks of “testomania” (1956, Chapter 4) and “quantofrenia” (1956, Chapters 7 and 8).

  2. 2.

    On abduction in economics, see a forthcoming paper co-authored with Fernando Tohmé (Tohmé and Crespo, forthcoming).

  3. 3.

    Quoted by Bateman (1996, p. 36).

  4. 4.

    I expand on this issue in my paper Crespo 2007.

  5. 5.

    Robbins was in charge of the reform of economics curricula in his capacity as Chairman of the Board of Studies in Economics of the London School of Economics and Political Science.

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Authors and Affiliations

  1. Department of Philosophy, Universidad Nacional de Cuyo and Consejo Nacional de Investigaciones Científicas y Técnicas, Mendoza, Argentina

    Ricardo F. Crespo

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  1. Ricardo F. Crespo
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Correspondence to Ricardo F. Crespo .

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Crespo, R.F. (2013). The Characteristics and Methods of Economics. In: Philosophy of the Economy. SpringerBriefs in Philosophy. Springer, Cham. https://doi.org/10.1007/978-3-319-02648-0_4

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