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Rationality, behavior, institutional, and economic change in Schumpeter

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  • Agnes Festre
  • Pierre Garrouste

Abstract

In 1940 Schumpeter wrote a paper entitled: 'The Meaning of Rationality in the Social Sciences', which was intended as a contribution to one of the meetings of a seminar including Talcott Parsons, Wassily Leontief, Paul Sweezy and other Harvard scholars, that he initiated. In this paper Schumpeter develops thoroughly his own conception of rationality in economics. First, this paper is interesting in itself because it relates to contemporary methodological debates on rationality in the social sciences. Second Schumpeter's conception of rationality is linked to his methodological background (both individualistic and holistic), which is rooted in his economic sociology and explains the relationships he stresses between individual behavior and collective entities. In this contribution we present the arguments developed by Schumpeter in his 1940 paper and analyze the reason why his notion of rationality can be seen as a key component of his conception of economic and institutional change.

Suggested Citation

  • Agnes Festre & Pierre Garrouste, 2008. "Rationality, behavior, institutional, and economic change in Schumpeter," Journal of Economic Methodology, Taylor & Francis Journals, vol. 15(4), pages 365-390.
    • Handle: RePEc:taf:jecmet:v:15:y:2008:i:4:p:365-390
    DOI: 10.1080/13501780802507222
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    Cited by:

    1. Remy Guichardaz & Julien Pénin, 2021. "Entrepreneurs “from within”? Schumpeter and the challenge of endogenizing novelty," Working Papers of BETA 2021-41, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Festré, Agnès & Garrouste, Pierre, 2016. "Wieser As A Theorist Of Institutional Change," Journal of the History of Economic Thought, Cambridge University Press, vol. 38(4), pages 463-483, December.
    3. Louis Azan, 2022. "The Romantic Conception of the Entrepreneur in Schumpeter’s Thought," Working Papers hal-04084445, HAL.
    4. Massimo Egidi, 2017. "Schumpeter’s picture of economic and political institutions in the light of a cognitive approach to human behavior," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 139-159, January.
    5. Agnès Festré, 2012. "Carl Menger and Friedrich von Wieser on the Role of Knowledge and Beliefs in the Emergence and Evolution of Institutions," Chapters, in: Richard Arena & Agnès Festré & Nathalie Lazaric (ed.), Handbook of Knowledge and Economics, chapter 4, Edward Elgar Publishing.
    6. Dieter Bögenhold & Panayotis G. Michaelides & Theofanis Papageorgiou, 2021. "Schumpeter, Veblen, and Bourdieu on Institutions and the Formation of Habits," Springer Books, in: Neglected Links in Economics and Society, chapter 0, pages 233-259, Springer.
    7. Mário Graça Moura, 2017. "Schumpeter and the meanings of rationality," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 115-138, January.
    8. Theofanis Papageorgiou & Ioannis Katselidis & Panayotis G. Michaelides, 2013. "Schumpeter, Commons, and Veblen on Institutions," American Journal of Economics and Sociology, Wiley Blackwell, vol. 72(5), pages 1232-1254, November.
    9. Philippe Aghion & Agnès Festré, 2017. "Schumpeterian growth theory, Schumpeter, and growth policy design," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 25-42, January.
    10. Mário Graça Moura, 2014. "Schumpeter and the meanings of rationality," FEP Working Papers 551, Universidade do Porto, Faculdade de Economia do Porto.
    11. Agnès Festré & Odile Lakomski-Laguerre & Stéphane Longuet, 2017. "Schumpeter and Schumpeterians on economic policy issues: re-reading Schumpeter through the lens of institutional and behavioral economics. An introduction to the special issue," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 3-24, January.
    12. Christoph Heinzel, 2013. "Schumpeter and Georgescu-Roegen on the foundations of an evolutionary analysis," Cambridge Journal of Economics, Oxford University Press, vol. 37(2), pages 251-271.
    13. Agnès Festré, 2012. "Carl Menger and Friedrich von Wieser on the role of knowledge and beliefs," Post-Print halshs-00346478, HAL.
    14. Muriel Dal-Pont Legrand & Harald Hagemann, 2015. "Can Recessions be 'Productive'? Schumpeter and the Moderns," GREDEG Working Papers 2015-23, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    15. Theresa Hager & Ines Heck & Johanna Rath, 2021. "Competition in Transitional Processes: Polanyi and Schumpeter," ICAE Working Papers 128, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.

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    More about this item

    Keywords

    rationality; institutional change; economic change; economic sociology; Schumpeter;
    All these keywords.

    JEL classification:

    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • Z19 - Other Special Topics - - Cultural Economics - - - Other

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