IDEAS home Printed from https://ideas.repec.org/p/icr/wpicer/37-2007.html
   My bibliography  Save this paper

Rationality, Behavior, Institutional and Economic Change in Schumpeter

Author

Listed:
  • Agnès Festré
  • Pierre Garrouste

Abstract

In 1940 Schumpeter wrote a paper entitled: “The Meaning of Rationality in the Social Sciences”, which was intended to one of the meetings of a seminar including Talcott Parsons, Wassilly Léontief, Paul Sweezy and other Harvard scholars, that he took the initiative to start. In this paper Schumpeter develops thoroughly his own conception of rationality in economics. First, this paper is interesting in itself because it is based on a sophisticated methodological analysis. Schumpeter indeed interestingly anticipates some important debates concerning the problem of rationality and behavior in economics and presents arguments tha t make his ideas very topical. 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

  • Agnès Festré & Pierre Garrouste, 2007. "Rationality, Behavior, Institutional and Economic Change in Schumpeter," ICER Working Papers 37-2007, ICER - International Centre for Economic Research.
    • Handle: RePEc:icr:wpicer:37-2007
    as

    Download full text from publisher

    File URL: http://www.bemservizi.unito.it/repec/icr/wp2007/ICERwp37-07.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Richard Arena, 2012. "Economic rationality and the emergence of institutions: a Schumpeterian view," Post-Print halshs-00941347, HAL.
    2. Armen A. Alchian, 1950. "Uncertainty, Evolution, and Economic Theory," Journal of Political Economy, University of Chicago Press, vol. 58(3), pages 211-211.
    3. Shionoya,Yuichi, 1997. "Schumpeter and the Idea of Social Science," Cambridge Books, Cambridge University Press, number 9780521430340, October.
    4. Richard Arena & Agnès Festré (ed.), 2006. "Knowledge, Beliefs and Economics," Books, Edward Elgar Publishing, number 3100.
    5. Ronan Macdonald, 1965. "Schumpeter and Max Weber — Central Visions and Social Theories," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 79(3), pages 373-396.
    6. Enrico Santarelli & Enzo Pesciarelli, 1990. "The Emergence of a Vision: The Development of Schumpeter's Theory of Entrepreneurship," History of Political Economy, Duke University Press, vol. 22(4), pages 677-696, Winter.
    7. repec:ucp:bkecon:9780226320649 is not listed on IDEAS
    8. H. Peyton Young, 1996. "The Economics of Convention," Journal of Economic Perspectives, American Economic Association, vol. 10(2), pages 105-122, Spring.
    9. Richard Swedberg, 2006. "On Teasing Out Sociology from Economics," American Journal of Economics and Sociology, Wiley Blackwell, vol. 65(1), pages 71-74, January.
    10. Niles M. Hansen, 1966. "Schumpeter and Max Weber: Comment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(3), pages 488-491.
    11. Powell, Walter W, 1996. "Weber and Schumpeter: Turbulent Lives, Ideas Never at Rest," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 5(3), pages 917-924.
    12. Richard Arena & Agnès Festré, 2006. "Knowledge and Beliefs in Economics: The Case of the Austrian Tradition," Chapters, in: Richard Arena & Agnès Festré (ed.), Knowledge, Beliefs and Economics, chapter 3, Edward Elgar Publishing.
    13. Yuichi Shionoya, 1991. "Schumpeter on Schmoller and Weber: A Methodology of Economic Sociology," History of Political Economy, Duke University Press, vol. 23(2), pages 193-219, Summer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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, Cambridge Political Economy Society, 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tristan Velardo, 2021. "Vision and Analysis in Schumpeter’s Theory: A Reappraisal in Economic Philosophy [La Vision et l’Analyse chez Schumpeter : une lecture critique en philosophie économique]," Post-Print halshs-04123565, HAL.
    2. Andreas Pyka & Uwe Cantner & Alfred Greiner & Thomas Kuhn (ed.), 2009. "Recent Advances in Neo-Schumpeterian Economics," Books, Edward Elgar Publishing, number 12982.
    3. Richard Arena & Pierre Garrouste, 2007. "Market or Markets?," ICER Working Papers 35-2007, ICER - International Centre for Economic Research.
    4. Agnieszka Lipieta & Andrzej Malawski, 2016. "Price versus quality competition: in search for Schumpeterian evolution mechanisms," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1137-1171, December.
    5. Agnes Festre & Eric Nasica, 2009. "Schumpeter on money, banking and finance: an institutionalist perspective," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 16(2), pages 325-356.
    6. Agnès Festré, 2012. "Carl Menger and Friedrich von Wieser on the role of knowledge and beliefs," Post-Print halshs-00346478, HAL.
    7. 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.
    8. Panayotis G. Michaelides & John G. Milios & Angelos Vouldis & Spyros Lapatsioras, 2010. "Heterodox influences on Schumpeter," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(3), pages 197-213, February.
    9. 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.
    10. Michaelides, Panayotis G. & Milios, John G., 2005. "The Influence of the German Historical School on Schumpeter," MPRA Paper 74471, University Library of Munich, Germany.
    11. H. Lorne Carmichael & W. Bentley MacLeod, 1997. "Territorial Bargaining," Boston College Working Papers in Economics 343., Boston College Department of Economics.
    12. David Dequech, 2006. "Towards An Alternative To The Game-Theoretic Concept Of Conventions," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 77, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    13. Brousseau, Eric & Garrouste, Pierre & Raynaud, Emmanuel, 2011. "Institutional changes: Alternative theories and consequences for institutional design," Journal of Economic Behavior & Organization, Elsevier, vol. 79(1-2), pages 3-19, June.
    14. 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.
    15. Richard Arena, 2017. "Schumpeter and Schumpeterians on competition: some policy implications," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 161-186, January.
    16. Nathanaël Colin-Jaeger & Etienne Wiedemann, 2019. "Aux origines nietzschéennes des ambiguïtés du concept d'entrepreneur : Schumpeter lecteur de Nietzsche," Working Papers halshs-03271422, HAL.
    17. 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.
    18. Nathanaël Colin-Jaeger & Étienne Wiedemann, 2021. "Aux origines nietzschéennes des ambiguïtés du concept d'entrepreneur : Schumpeter lecteur de Nietzsche," Post-Print halshs-03271422, HAL.
    19. Buss, Adrian, 2013. "Capital controls and international financial stability: a dynamic general equilibrium analysis in incomplete markets," Working Paper Series 1578, European Central Bank.
    20. Daniel Sutter & Daniel J. Smith, 2017. "Coordination in disaster: Nonprice learning and the allocation of resources after natural disasters," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 30(4), pages 469-492, December.

    More about this item

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icr:wpicer:37-2007. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Daniele Pennesi (email available below). General contact details of provider: https://edirc.repec.org/data/icerrit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.