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.:
- 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.
- 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.
- 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.
- Ricardo F. Crespo, 2011. "Two conceptions of economics," Journal of Applied Economics, Universidad del CEMA, vol. 14, pages 181-197, November.
- 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.
- Maria Pia Paganelli, 2006. "Hume and Endogenous Money," Eastern Economic Journal, Eastern Economic Association, vol. 32(3), pages 533-547, Summer.
- Filippo Cesarano, 2006. "Economic history and economic theory," Journal of Economic Methodology, Taylor & Francis Journals, vol. 13(4), pages 447-467.
- K. Austin Kerr, 2000. "Book Reviews," Business History, Taylor & Francis Journals, vol. 42(2), pages 192-193.
- 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.
- 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.
- R. E. Tyson, 2000. "Book Reviews," Business History, Taylor & Francis Journals, vol. 42(3), pages 158-159.
- 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.
- 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.
- G. C. Peden, 2000. "Book Reviews," Business History, Taylor & Francis Journals, vol. 42(2), pages 188-189.
- R. J. Overy, 2000. "Book Reviews," Business History, Taylor & Francis Journals, vol. 42(4), pages 198-199.
- 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.
- Hicks, J. R., 1979. "Critical Essays in Monetary Theory," OUP Catalogue, Oxford University Press, number 9780198284239, December.
- Dow Sheila C., 2009. "David Hume and Modern Economics," Capitalism and Society, De Gruyter, vol. 4(1), pages 1-31, June.
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 references are entirely missing, you can add them using this form.