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History versus equilibrium? on the possibility and realist basis of a general critique of traditional equilibrium analysis

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Author Info
Dany Lang
Mark Setterfield

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Abstract

This paper responds to Backhouse's (2004) claims that there is no antagonism between history and equilibrium and no case to be made in principle against equilibrium analysis. We first show that Backhouse's partial defense of equilibrium analysis has already been encompassed by heterodox theory. We then identify a "traditional equilibrium approach" to economic analysis and provide a general critique of this approach based on its perceived infidelity to the properties of social reality. Finally, we argue that this exercise exemplifies Lawson's (2005a) thesis that heterodox skepticism of equilibrium analysis is motivated by ontic concerns—that is, concerns with the intrinsic properties of the social material that is being theorized by economists.

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File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=X13272446877T2G3
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Publisher Info
Article provided by M.E. Sharpe, Inc. in its journal Journal of Post Keynesian Economics.

Volume (Year): 29 (2007)
Issue (Month): 2 (January)
Pages: 191-209
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Handle: RePEc:mes:postke:v:29:y:2007:i:2:p:191-209

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=109348

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Related research
Keywords: equilibrium; historical time; homeostasis; path dependence; time reversibility;

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This page was last updated on 2009-11-22.


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