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Critical realism in economics and open-systems ontology: A critique

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Author Info
Andrew Mearman

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Abstract

This paper examines the treatment of ontology offered by critical realism. It addresses much of the material elaborated upon in two editions of this journal. Three main groups of criticisms are made here of the critical realist treatment of open systems. It is argued that critical realism, particularly in the project in economics emanating from Cambridge, UK, tends to define systems in terms of events. This definition is shown to be problematic. The exemplar of a closed system provided by critical realism of the solar system is shown to be flawed in that it is not closed according to the closure conditions identified by critical realism. Second, the negativity of the definitions adopted is problematic for heterodox traditions attempting to build positive programmes. Furthermore, the dualism of the definitions is also inconsistent with Dow's approach, which has ramifications for the coherence of post Keynesianism. Third, the definitions tend to polarize open and closed systems and ignore the degrees of openness evident in reality. The polarization of systems leads to polarized methodology and unsustainable arguments to reject so-called "closed-systems methods.”

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Review of Social Economy.

Volume (Year): 64 (2006)
Issue (Month): 1 (March)
Pages: 47-75
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Handle: RePEc:taf:rsocec:v:64:y:2006:i:1:p:47-75

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Related research
Keywords: open systems; closed systems; critical realism; post-Keynesianism; dualism;

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References listed on IDEAS
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  1. Hahn, F H, 1989. "Kaldor on Growth," Cambridge Journal of Economics, Oxford University Press, vol. 13(1), pages 47-57, March.
  2. Lawson, Tony, 1989. "Realism and Instrumentalism in the Development of Econometrics," Oxford Economic Papers, Oxford University Press, vol. 41(1), pages 236-58, January. [Downloadable!] (restricted)
  3. Lawson, Tony, 1995. "The 'Lucas Critique': A Generalisation," Cambridge Journal of Economics, Oxford University Press, vol. 19(2), pages 257-76, April.
  4. Lawson, Tony, 1993. "Keynes and Conventions," Review of Social Economy, Taylor and Francis Journals, vol. 51(2), pages 174-200, Summer.
  5. Sheila C. Dow, 2004. "Reorienting Economics : Some epistemological issues," Journal of Economic Methodology, Taylor and Francis Journals, vol. 11(3), pages 307-312, September. [Downloadable!] (restricted)
  6. Lawson, Tony, 1998. "Clarifying and Developing the Economics and Reality Project: Closed and Open Systems, Deductivism, Prediction, and Teaching," Review of Social Economy, Taylor and Francis Journals, vol. 56(3), pages 356-75, Fall.
  7. Lawson, Tony, 1996. "Developments in "Economics as Realist Social Theory."," Review of Social Economy, Taylor and Francis Journals, vol. 54(4), pages 405-22, Winter.
  8. Lawson, Tony, 1989. "Abstraction, Tendencies and Stylised Facts: A Realist Approach to Economic Analysis," Cambridge Journal of Economics, Oxford University Press, vol. 13(1), pages 59-78, March.
  9. Tony Lawson, 1997. "Critical Issues in Economics as Realist Social Theory," Ekonomia, Cyprus Economic Society and University of Cyprus, vol. 1(2), pages 75-117, Winter.
  10. Andrew Brown & Gary Slater & David A. Spencer, 2002. "Driven to abstraction? Critical realism and the search for the 'inner connection' of social phenomena," Cambridge Journal of Economics, Oxford University Press, vol. 26(6), pages 773-788, November.
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