Classical and Radical Economic Ideas'

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Classical and Radical Economic Ideas.
Lecture 7
Methodology of Scientific Research Methods
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Classical and Radical Economic Ideas Lecture 7
Developments following Popper and Kuhn
In the late 1960s and 70s there was an
important attempt to synthesise Poppers
epistemological with Kuhns historical and
descriptive strengths. The key philosopher in
this project was Imre LAKATOS. (See Lakatos and
Musgraves Criticism and the Growth of
Knowledge).
Lakatos vision of scientific procedure is called
the Methodology of Scientific Research
Programmes - MSRP
In economics, S Latsis ( Method and Appraisal in
Economics, 1976) championed the use of Lakatos
methodology.
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CREI Lecture 7 Lakatos view of science
Science consists of
Tests
Empirical
Auxiliary Hypotheses
Core ideas
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CREI Lecture 7 MSRP and neo-classical economics
Neo-classical economics consists of
Tests
Econometric
Auxiliary Hypotheses
Econometric
Tests
Labour economics
Financial economics
Core ideas
Individualism
and many other areas of economics containing
auxiliary hypotheses
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CREI Lecture 7 Core of neoclassical economics
Inside the neo-classical core
Basic Theory Individuals have unique
preferences Individuals make choices according
to those preferences Individuals are constrained
in those choices
Core ideas
Negative Heuristic Ignore social structures such
as social class Ignore special psychological
assumptions
Positive heuristic Analyse using optimising
techniques Assume peri-equilibrium
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CREI Lecture 7 Testing and changing auxiliary
hypotheses
Auxiliary hypotheses changed if refuted by
empirical evidence
Tests
Labour Economics
Econometric
Hypothesis Labour supply rises if wage rate rises
Hypothesis refuted
New Hypothesis Large scale income effects mean
supply curve bends backwards
Other areas of economics containing auxiliary
hypotheses
Core ideas
Using the core, labour economics has tried to
adapt to the evidence, leaving the core of
neo-classical economics protected, so unchanged!
The core is progressive
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CREI Lecture 7 Degenerating core 1
What if, after an auxiliary hypothesis is
refuted, no new one is produced?
Tests
Labour Economics
Econometric
Hypothesis refuted
Other areas of economics containing auxiliary
hypotheses
NO New Hypothesis
Core ideas
Core is degenerating
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CREI Lecture 7 Degenerating core 2
What if the new auxiliary hypothesis doesnt come
from the core
Tests
Labour Economics
Econometric
Hypothesis refuted
Other areas of economics containing auxiliary
hypotheses
New but ad hoc hypothesis During tests,
workers became lazy!
Core ideas
Core failed to produce new hypothesis, it is
degenerating
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CREI Lecture 7 Progress as expansion of scope of
core
A core generating new areas or topics for
auxiliary hypotheses is also progressive
Other areas of n-c economics generating Auxiliary
Hypotheses
Labour economics
Financial economics
Core ideas
Tests
Individualism
Economics of marriage
Other areas of n-c economics generating Auxiliary
Hypotheses
Econometric
Political behaviour
Neo-classical criminology
Each new area will, of course, subject its
auxiliary hypotheses to empirical testing
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CREI Lecture 7 Rejecting the core
APPRAISING the CORE
Degenerate tendencies
Progressive tendencies
If these outweigh progressive tendencies then
core rejected
But ONLY if there is a more progressive core to
put in its place.
MSRP is a kind of competitive model of science
Does neo-classical micro economics have any
alternatives against which it can be compared?
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CREI Lecture 7 Summary of MSRP
Core ideas are never directly tested they are
accepted as the starting point of any analysis.
Core has basic ideas and positive and negative
HEURISTCS rules of thinking about the core.
Auxiliary hypotheses tested, rejected or accepted
empirically
If rejected, only the auxiliary hypotheses
rejected
Role of core to provide new interpretations of
auxiliary matters
Cores that thus provide logical and testable new
auxiliary hypotheses are PROGRESSIVE
FAILURE BY CORE TO DO THIS MEANS THAT CORE IS
DEGENERATE
A core can also be PROGRESSIVE if in auxiliary
areas it enables the discovery of new facts and
or explore new areas
Cores are APPRAISED by whether they are
degenerate or PROGRESSIVE
Note that the appraisal is inherently historical.
If the core is progressing it must be better than
the past or, if degenerating, worse than the past.
At a certain point, the scientific community
judges a core to be more degenerate than
progressive.
A core is REJECTED by the community if there are
alternative cores which are more progressive ie
the judgment is relative