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Situational analysis beyond 'single-exit' modelling

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  • Vítor Neves

Abstract

Situational analysis (SA) is currently the method of mainstream microeconomics, and this paper maintains that it may also perform an important role in heterodox research programmes in economics. Its most elaborate version in economics, the 'single-exit' modelling approach, is an epistemologically driven endeavour which does not take full account of the way our world works. In this paper, it is argued that a fully consistent SA that is firmly grounded on sound human ontological foundations can be pursued if it is detached from the Rationality Principle, if closed-system modelling is abandoned, and if a retroductive mode of inference is embraced. Copyright 2004, Oxford University Press.

Suggested Citation

  • Vítor Neves, 2004. "Situational analysis beyond 'single-exit' modelling," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(6), pages 921-936, November.
    • Handle: RePEc:oup:cambje:v:28:y:2004:i:6:p:921-936
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    File URL: http://hdl.handle.net/10.1093/cje/beh037
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