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Macaulay’s Problem

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  • Marek Hudík

Abstract

The model of economic man is either empirically testable and false, or it is non-testable and always true. The fact that neither position is entirely satisfactory is called Macaulay’s problem. This paper first reviews and criticizes various attitudes toward this problem and then argues that Macaulay’s problem is a pseudoproblem, because it assumes that the explicandum of the economic man model is individual behavior. Contrary to this assumption it is argued that the model attempts to explain changes of people’s behavior on an aggregate level in response to changes in constraints. The paper posits that all the studied attitudes pertaining to Macaulay’s problem can be reinterpreted and, to a great extent, reconciled in light of this view. It is also argued that this view helps to explain why the usual criticisms of the economic man model miss the point. A method for effective criticism is suggested

Suggested Citation

  • Marek Hudík, 2013. "Macaulay’s Problem," ICER Working Papers 01-2013, ICER - International Centre for Economic Research.
    • Handle: RePEc:icr:wpicer:01-2013
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    File URL: http://www.bemservizi.unito.it/repec/icr/wp2013/ICERwp01-13.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    economic man; “as if” explanations; apriorism; rational choice; methodology of economics; empirical content of theories;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles

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