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The Contrast between Mainstream and Heterodox Economics: A Misleading Controversy—“Necessary” System versus “Natural” System

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  • Fusari, Angelo

Abstract

This article focuses on a broad distinction within economic thinking and the methodological misconceptions that are implied by it. We find today, on the one hand, mainstream economics, which uses both the method of abstract rationality typical of the logical-formal sciences and the method of the natural sciences—two methodologies that, as we shall prove, are inappropriate for the study of social reality. On the other hand we find the opponents of mainstream economics, primarily heterodox economics, who emphasize methodological pluralism and lend, in the extreme, their support to the relativist view that all views may be right in their own way. Such an unconstrained pluralist attitude to method obstructs interaction and reciprocal understanding among students, the scientific appreciation of theoretical contributions and the same fecundating role of pluralism. We shall see that methodological diffuseness is the primary factor explaining the failure of attacks against mainstream economics and we shall look for a solution to this embarrassing impotence by searching for general methodological procedure and rules fully appropriate to the scientific study of social reality.

Suggested Citation

  • Fusari, Angelo, 2014. "The Contrast between Mainstream and Heterodox Economics: A Misleading Controversy—“Necessary” System versus “Natural” System," MPRA Paper 60097, University Library of Munich, Germany, revised Jul 2014.
    • Handle: RePEc:pra:mprapa:60097
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    References listed on IDEAS

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    1. Pasinetti,Luigi L., 2007. "Keynes and the Cambridge Keynesians," Cambridge Books, Cambridge University Press, number 9780521872270.
    2. Tony Lawson, 2006. "The nature of heterodox economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(4), pages 483-505, July.
    3. Robert Delorme & Kurt Dopfer (ed.), 1994. "The Political Economy Of Diversity," Books, Edward Elgar Publishing, number 131.
    4. John B. Davis & D. Wade Hands (ed.), 2011. "The Elgar Companion to Recent Economic Methodology," Books, Edward Elgar Publishing, number 13684.
    5. Fusari, Angelo, 2013. "Radical Uncertainty, Dynamic Competition and a Model of the Business Cycle," MPRA Paper 74015, University Library of Munich, Germany, revised Mar 2013.
    6. A. P. Lerner, 1938. "Theory and Practice in Socialist Economics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 6(1), pages 71-75.
    7. Angelo Fusari, 2004. "A reconsideration on the method of economic and social sciences: Procedure, rules, classifications," International Journal of Social Economics, Emerald Group Publishing, vol. 31(5/6), pages 501-535, May.
    8. Fusari, Angelo, 2010. "Economic theory and social change: problems and revisions," MPRA Paper 23974, University Library of Munich, Germany.
    9. Angelo Fusari, 2005. "A model of the innovation-adaptation mechanism driving economic dynamics: a micro representation," Journal of Evolutionary Economics, Springer, vol. 15(3), pages 297-333, August.
    10. Sheila C. Dow, 2011. "Heterodox economics: history and prospects," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 35(6), pages 1151-1165.
    11. Friedman, Milton, 2002. "Capitalism and Freedom," University of Chicago Press Economics Books, University of Chicago Press, number 9780226264219, Febrero.
    12. Andrea Salanti & Ernesto Screpanti (ed.), 1997. "Pluralism in Economics," Books, Edward Elgar Publishing, number 900.
    13. Garegnani, Pierangelo, 1984. "Value and Distribution in the Classical Economists and Marx," Oxford Economic Papers, Oxford University Press, vol. 36(2), pages 291-325, June.
    14. Friedman, Milton, 2002. "Capitalism and Freedom," University of Chicago Press Economics Books, University of Chicago Press, number 9780226264202.
    15. John B. Davis, 2008. "The turn in recent economics and return of orthodoxy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 32(3), pages 349-366, May.
    16. Fusari, Angelo & Reati, Angelo, 2013. "Endogenizing technical change: Uncertainty, profits, entrepreneurship. A long-term view of sectoral dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 76-100.
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    More about this item

    Keywords

    This article focuses on a broad distinction within economic thinking and the methodological misconceptions that are implied by it. We find today; on the one hand; mainstream economics; which uses both the method of abstract rationality typical of the logical-formal sciences and the method of the natural sciences—two methodologies that; as we shall prove; are inappropriate for the study of social reality. On the other hand we find the opponents of mainstream economics; primarily heterodox economics; who emphasize methodological pluralism and lend; in the extreme; their support to the relativist view that all views may be right in their own way. Such an unconstrained pluralist attitude to method obstructs interaction and reciprocal understanding among students; the scientific appreciation of theoretical contributions and the same fecundating role of pluralism. We shall see that methodological diffuseness is the primary factor explaining the failure of attacks against mainstream economics and we shall look for a solution to this embarrassing impotence by searching for general methodological procedure and rules fully appropriate to the scientific study of social reality.;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • B49 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Other

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