Wednesday, February 26, 2014

Merijn Knibbe — A 1963 critique of neoclassical econmics. Did anything change?

Did anything change?

No. The position hardened as neoclassical economists doubled down.

Real-World Economics Review Blog
A 1963 critique of neoclassical econmics. Did anything change?
Merijn Knibbe


Roger Erickson said...

this is truly classic commentary

this part in particular, just for laughs

"Theoretical economics of the neoclassical variety thus appears quite oddly to combine sociological problems with relatively sociology-free solutions.
It appears to be immune to the intrusion of sociological and social-psychological knowledge."

[LOL! Classic! pardon the pun]

"How can sense be made of this?"

"In everyday situations, if, in answer to an inquiry about the weather forecast, one is told that the weather will remain the same as long as it does not change, then one does not normally go away with the impression of having been particularly well informed ..."

".. one may be impressed by the great number of errors and misunderstandings to which even the most famous and penetrating thinkers succumb."

"If such and such conditions remain the same, then the demand function has such and such a general character."

"... the law of demand under question is fully immunized to facts"

[LOL again! do these guys know their economics, or what?]

"This [presumption] makes the statement untestable, and its informational content decreases to zero."

[ :) If there were a Nobel Prize for logic in the face of overwhelming stupidity ... these 1963 authors would have received it!]

Tom Hickey said...

Interesting that psychological studies suggest that when highly intelligent but strongly ideological people are shown logical or factual errors in their position, they double down on their position instead of admitting mistake and adjusting the position. This is conventional economics in spades. They must have teflon for brains.