From Logical Rigor to Hyper Formalism Peter Boettke Econ 881/Spring February

What Went Wrong with Economics Economics and the Natural Sciences  Clocks, Engines, Computers Mirowski, p. 9 Cyborg economists vs. Neoclassical economist, Mirowski, p Uses and Misuses of Equilibrium Constructs  Foil or Imaginary Construction  Description or “As If”  Benchmark or Normative

Why the Emphasis on Equilibrium? Notion of Science  Newtonian Reality Puzzle  Self-regulation  Self-interested behavior => social order  Interconnectedness

Matrix of Social Explanation ChaosOrder Other regardingPave to Hell is Paved with Good Intentions Camelot Self regardingThe Devil Has His Way The Fable of the Bees

Economics and Social Order Simple Conditions Complex Conditions Inefficient OrderMarxism and anti-economics Post- Keynesianism and Market Failure Theory Efficient OrderNeoclassical Equilibrium Theory Austrian Economics

From the Literary Vagueness of political economic and economic sociology to the Flawless Precision of Mathematical Economics? Samuelson’s hypothesis  Confusion results from one of two sources Using the same word to mean different things, or different words to mean the same thing Mathematics forces us to state our assumptions explicitly and be clear about our terms Boulding’s hypothesis  Since the real world is a muddle, it would be an awful shame to be clear about it. Greater productivity of vagueness Shackle/Rothbard  Mathematical economics doesn’t do the job of clarifying because syntax and semantics are two different things and human affairs are about semantics

Where Are We At? Model  Game theory Measure  Statistical significance and economic significance Method  Analytic Narrative  pluralism