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Two Essays in the Philosophy of Economics

Green, Edward J. and Wilde, Louis L. (1980) Two Essays in the Philosophy of Economics. Social Science Working Paper, 314. California Institute of Technology , Pasadena, CA. (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20171012-144002221

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Abstract

This paper addresses the question of how fundamental theories in economics (e.g. game theory and general equilibrium theories) are related to theories of specific markets or market phenomena. This question arises because, in neoclassical economics, fundamental theories typically are not subjected directly to empirical tests. The argument presented here has two parts. First it is argued that, even without being directly tested itself, fundamental theory can help to refine, test and evaluate specific theories. Six ways in which this can occur are enumerated. Second, it is argued that the close relationship between fundamental and specific theories is a general feature of positive economics rather than being a special feature of neoclassical theory, and that this relationship makes it possible systematically to test or evaluate fundamental theory. Views of Friedman, Machlup and von Mises are considered.


Item Type:Report or Paper (Working Paper)
Related URLs:
URLURL TypeDescription
https://doi.org/10.1007/978-94-009-8394-6_2Related ItemPart 1. Later version published in Philosophy in Economics (Springer, 1981 - pp 5-15)
https://doi.org/10.1007/978-94-009-8394-6_9UNSPECIFIEDPart 2. Later version published in Philosophy in Economics (Springer, 1981 - pp 137-148)
Alternate Title:On the Role of Fundamental Theory in Positive Economics, On the Use of Laboratory Experiments in Economics
Additional Information:This working paper is divided into two separate essays, one written by Edward J. Green and the other by Louis L. Wilde. They were published separately as Green, E.J. (1981). "On The Role of Fundamental Theory in Positive Economics." Pitt J.C. (eds) Philosophy in Economics, vol 16, pp. 5-15. Dordrecht: Springer.; and Wilde, L. L. (1981). "On the Use of Laboratory Experiments in Economics." Pitt J.C. (eds) Philosophy in Economics, vol 16, pp. 137-148. Dordrecht: Springer. Louis Wilde would like to thank Ed Green, Charles Plott, Alan Schwartz, and Vernon Smith for helpful comments on the first draft of "On the Use of Laboratory Experiments in Economics."
Group:Social Science Working Papers
Series Name:Social Science Working Paper
Issue or Number:314
Record Number:CaltechAUTHORS:20171012-144002221
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20171012-144002221
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:82325
Collection:CaltechAUTHORS
Deposited By: Jacquelyn Bussone
Deposited On:16 Oct 2017 18:09
Last Modified:03 Oct 2019 18:53

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