Hume: The power of abduction and simple observation in economics
In Hume’s epistemology, induction leads to discovery in matters of fact. However, because of the poor data Hume analyzes the balance of trade with a thought experiment, doing what Mill makes explicit afterwards: reason from assumptions, to reach conclusions which are true in the abstract. Hume’s potential explanation, what Peirce later calls abduction, is backed by a case study, the price revolution of the 16th century, which supports half his abductive inference, when money supply is multiplied fivefold. Given that economics reasons abductively, Hume’s attention to realistic hypotheses and the adjustment process matters.
|Date of creation:||Mar 2010|
|Contact details of provider:|| Postal: Av. Córdoba 374, (C1054AAP) Capital Federal|
Phone: (5411) 6314-3000
Fax: (5411) 4314-1654
Web page: http://www.cema.edu.ar/publicaciones/doc_trabajo.html
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- K. Austin Kerr, 2000. "Book Reviews," Business History, Taylor & Francis Journals, vol. 42(2), pages 192-193.
- Filippo Cesarano, 2006. "Economic history and economic theory," Journal of Economic Methodology, Taylor & Francis Journals, vol. 13(4), pages 447-467.
- Thomas M. Humphrey, 1981. "Adam Smith and the monetary approach to the balance of payments," Economic Review, Federal Reserve Bank of Richmond, issue Nov, pages 3-10.
- Ricardo F. Crespo, 2011. "Two conceptions of economics," Journal of Applied Economics, Universidad del CEMA, vol. 14, pages 181-197, November.
- Maria Pia Paganelli, 2006. "Hume and Endogenous Money," Eastern Economic Journal, Eastern Economic Association, vol. 32(3), pages 533-547, Summer.
- R. Myerson., 2010.
"Nash Equilibrium and the History of Economic Theory,"
N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 6.
- Roger B. Myerson, 1999. "Nash Equilibrium and the History of Economic Theory," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1067-1082, September.
- Jorge M.Streb & Pablo F.Druck, 2007. "Economic development as a matter of political geography," Estudios de Economia, University of Chile, Department of Economics, vol. 34(1 Year 20), pages 5-20, June.
- Pablo Druck & Jorge M. Streb, 2001. "Economic Development as a Matter of Political Geography," CEMA Working Papers: Serie Documentos de Trabajo. 182, Universidad del CEMA.
- Robert J. Leonard, 1992. "Reading Cournot, Reading Nash / or / The Emergence and Stabilization of the Nash equilibrium," Cahiers de recherche du Département des sciences économiques, UQAM 9214, Université du Québec à Montréal, Département des sciences économiques.
- Berdell, J F, 1995. "The Present Relevance of Hume's Open-Economy Monetary Dynamics," Economic Journal, Royal Economic Society, vol. 105(432), pages 1205-1217, September.
- Leonard, Robert J, 1994. "Reading Cournot, Reading Nash: The Creation and Stabilisation of the Nash Equilibrium," Economic Journal, Royal Economic Society, vol. 104(424), pages 492-511, May.
- George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, Oxford University Press, vol. 84(3), pages 488-500.
- Hicks, J. R., 1979. "Critical Essays in Monetary Theory," OUP Catalogue, Oxford University Press, number 9780198284239, April.
- G. C. Peden, 2000. "Book Reviews," Business History, Taylor & Francis Journals, vol. 42(2), pages 188-189.
- R. E. Tyson, 2000. "Book Reviews," Business History, Taylor & Francis Journals, vol. 42(3), pages 158-159.
- Dow Sheila C., 2009. "David Hume and Modern Economics," Capitalism and Society, De Gruyter, vol. 4(1), pages 1-31, June.
- R. J. Overy, 2000. "Book Reviews," Business History, Taylor & Francis Journals, vol. 42(4), pages 198-199.
- A. M. C. Waterman, 1988. "Hume, Malthus, and the Stability of Equilibrium," History of Political Economy, Duke University Press, vol. 20(1), pages 85-94, Spring. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:cem:doctra:417. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valeria Dowding)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.