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Dr. Keynes: Economic Theory in a Diagnostic Science

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  • Kevin Hoover

    (Department of Economics, University of California Davis)

Abstract

In his own view, economic theory was important to Keynes?s work as an economists. Aside from the General Theory, most of his economic writings, however policy oriented make explicit reference to theory. Nevertheless, Keynes?s theoretical style is so far from what contemporary economics regards as ?theory? that some have dismissed Keynes as a theorist altogether or thought of him as a theorist hampered by the lack of modern mathematical tools. In this paper, I argue to the contrary that Keynes?s theoretical style is conditioned by a conception of theory as a diagnostic tool. This is a natural development from Marshall, and conceptually very different from modern macroeconomists. It is nonetheless a very attractive conception of the place of theory in economics.

Suggested Citation

  • Kevin Hoover, 2005. "Dr. Keynes: Economic Theory in a Diagnostic Science," Working Papers 199, University of California, Davis, Department of Economics.
    • Handle: RePEc:cda:wpaper:199
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    References listed on IDEAS

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    1. Michel De Vroey, 2004. "The History of Macroeconomics Viewed against the Background of the Marshall-Walras Divide," History of Political Economy, Duke University Press, vol. 36(5), pages 57-91, Supplemen.
    2. Hendry,David F. & Morgan,Mary S., 1997. "The Foundations of Econometric Analysis," Cambridge Books, Cambridge University Press, number 9780521588706.
    3. Hammond,J. Daniel, 1996. "Theory and Measurement," Cambridge Books, Cambridge University Press, number 9780521552059.
    4. Lucas, Robert E, Jr, 1980. "Methods and Problems in Business Cycle Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 696-715, November.
    5. Milton Friedman, 1949. "The Marshallian Demand Curve," Journal of Political Economy, University of Chicago Press, vol. 57(6), pages 463-463.
    6. Milton Friedman, 2001. "Friedman on Friedman," Rivista di storia economica, Società editrice il Mulino, issue 1, pages 127-132.
    7. Lucas, Robert Jr, 1976. "Econometric policy evaluation: A critique," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 19-46, January.
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    More about this item

    Keywords

    general theory; economics; contemporary;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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