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Some Practical Aspects of Pluralism in Economics Truth is so important, however, that it behooves us not to jump to conclusions about it (Samuels, 1997)

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Thomas Mayer

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Abstract

This contribution to a Festschrift for Warren Samuels argues that in giving policy advice economists should seek diversification and consider the probability of error, and also the loss function and risk aversion. And since advocacy of a theory is in a relevant way like a policy decision, the same applies to theories. If this means employing contradictory theories, then that is consistent with rational behavior. In choosing a methodology, too, a sharp dichotomy of right and wrong is not useful, as the example of new classical reductionism illustrates. Similarly, there is a role for probabilistic pluralism in making value judgments.

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Paper provided by California Davis - Department of Economics in its series Department of Economics with number 99-05.

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Handle: RePEc:fth:caldec:99-05

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