Critical Realism in Economics
Heterodox economists like Tony Lawson, Frederic Lee or Geoffrey Hodgson are trying to work the ideas of critical realism into economics, especially the dynamic idea of macro-micro interaction.
According to critical realist economists, the central aim of economic theory is to provide explanations in terms of hidden generative structures. This position combines transcendental realism with a critique of mainstream economics. It argues that mainstream economics (i) relies excessively on deductivist methodology, (ii) embraces an uncritical enthusiasm for formalism, and (iii) believes in strong conditional predictions in economics despite repeated failures.
The world that mainstream economists study is the empirical world. But this world is "out of phase" (Lawson) with the underlying ontology of economic regularities. The mainstream view is thus a limited reality because empirical realists presume that the objects of inquiry are solely "empirical regularities"—that is, objects and events at the level of the experienced.
The critical realist views the domain of real causal mechanisms as the appropriate object of economic science, whereas the positivist view is that the reality is exhausted in empirical, i.e. experienced reality. Tony Lawson argues that economics ought to embrace a "social ontology" to include the underlying causes of economic phenomena.
Read more about this topic: Critical Realism
Famous quotes containing the words critical, realism and/or economics:
“If our entertainment culture seems debased and unsatisfying, the hope is that our children will create something of greater worth. But it is as if we expect them to create out of nothing, like God, for the encouragement of creativity is in the popular mind, opposed to instruction. There is little sense that creativity must grow out of tradition, even when it is critical of that tradition, and children are scarcely being given the materials on which their creativity could work”
—C. John Sommerville (20th century)
“The realism of failure, the romance of success.”
—Mason Cooley (b. 1927)
“The new sound-sphere is global. It ripples at great speed across languages, ideologies, frontiers and races.... The economics of this musical esperanto is staggering. Rock and pop breed concentric worlds of fashion, setting and life-style. Popular music has brought with it sociologies of private and public manner, of group solidarity. The politics of Eden come loud.”
—George Steiner (b. 1929)