Philosophy of economics

Philosophy of economics

The philosophy of economics is the branch of philosophy which studies philosophical issues relating to economics. It can also be defined as the branch of economics which studies its own foundations and status as a moral science.

cope of the philosophy of economics

Definition and ontology of economics

The first question usually addressed any subfield of philosophy (the philosophy of "X") is "what is "X"?"A philosophical approach to the question "what is economics?" is less likely to produce an answer than itis to produce a survey of the definitional and territorial difficulties and controversies.

Ontological questions continue with further "what is..." questions addressed at fundamental economic phenomena, such as "what is (economic) value?", "what is a market?". While it is possible to respond to such questions with real verbal definitions, the philosophical value of posing such questions actually aims at shifting entire perspectives as to the nature of the foundations of economics. In the rare cases that attempts at ontological shifts gain wide acceptance, their ripple effects can spread throughout the entire field of economics.

Methodology and epistemology of economics

: "Main article: " Economic methodology

An epistemology deals with how we "know" things. In the philosophy of economics this means asking questions such as: what kind of a "truth claim" is made by economic theories - for example, are we claiming that the theories relate to reality or perceptions? How can or should we prove economic theories - for example, must every economic theory be empirically verifiable? How exact are economic theories and can they lay claim to the status of an exact science - for example, are economic predictions as reliable as predictions in the natural sciences, and why or why not? Another way of expressing this issue is to ask whether economic theories can state "laws". Philosophers of science have explored these issues intensively since the work of Alexander Rosenberg and Daniel Hausman in the 1970s.

Game theory and economic agents

: "Main articles: " game theory, decision theory

Game theory is shared between a number of disciplines, but especially mathematics, economics and philosophy. Game theory is still extensively discussed within the field of the philosophy of economics. Decision theory is closely related to game theory and is likewise very strongly interdisciplinary. Philosophical approaches in decision theory focus on foundational concepts in decision theory - for example, on the natures of choice or preference, rationality, risk and uncertainty, economic agents.

Ethics of economic systems

The ethics of economic systems deals with the issues such as how it is right (just, fair) to keep or distribute economic goods. This area overlaps strongly with other disciplines. Approaches are regarded as more philosophical when they study the fundamentals - for example, John Rawls' "A Theory of Justice" (1971) and Robert Nozick's "Anarchy, State and Utopia" (1974).

Utilitarianism, one of the major ethical methodologies, hasits origins inextricably interwoven with the emergence of modern economic thought. Today utilitarianism has spread throughout applied ethics as one of a number of approaches. Non-utilitarian approaches in applied ethics are also now used when questioning the ethics of economic systems - e.g. rights-based (deontological) approaches.

Many political ideologies have been an immediate outgrowth of reflection on the ethics of economic systems. Marx, for example, is generally regarded primarily as a philosopher, his most notable work being on the philosophy of economics.

Non-mainstream economic thinking

: "Main article": Heterodox economicsThe philosophy of economics defines itself as including the questioning of foundations or assumptions of economics. The foundations and assumption of economics have been questioned from the perspective of noteworthy but typically under-represented groups. These areas are therefore to be included within the philosophy of economics.
* Cross-cultural perspectives on economics: an example is the Buddhist-inspired Bhutanese "Gross National Happiness" concept (suggested as a better development measure than GNI/GDP). Amartya Sen is a renowned advocate for the integration of cross-cultural phenomena into economic thinking ("It may be well asked why anyone should try to lecture the World Bank on culture." [] ) Related area: economic anthropology.
* Feminist perspectives on economics: e.g. Drusilla Barker & Edith Kuiper eds., cite book |first= |last= |year=2003 |title=Towards a feminist philosophy of economics |chapter= |editor= |others= |pages= |publisher=Routledge |id=ISBN 0-415-28388-4 |url= | authorlink= ; see also feminist economics.

Important figures

* Adam Smith
* John Stuart Mill
* Karl Marx
* John Neville Keynes
* Ludwig von Mises
* John Maynard Keynes
* Milton Friedman
* Paul Samuelson
* Kenneth Arrow
* John Rawls
* Murray Rothbard
* Amartya Sen
* Bernard Williams
* John Locke
* David Hume
* Ken Binmore
* E. F. Schumacher

Related disciplines

The "ethics of economic systems" is an area of overlap between business ethics and the philosophy of economics. People who write on the ethics of economic systems are more likely to call themselves 'political philosophers' than "business ethicists" or "economic philosophers". There is significant overlap between theoretical issues in economics and the philosophy of economics. As economics is generally accepted to have its origins in philosophy, the history of economics overlaps with the philosophy of economics.


* Kenneth E. Boulding (1969). "Economics as a Moral Science," "American Economic Review", 59(1) , p [ p. 1] -12
*Caldwell, Bruce (1987). "positivism," "", v.3, pp.921-23.

* Downie, R.S. (1987). "moral philosophy," "The New Palgrave: A Dictionary of Economics] ", v. 3, pp. 551-56.



* _____ (2001). "Economics: Philosophy of," "International Encyclopedia of the Social & Behavioral Sciences", v. 6, pp. 4159-65. [,151000134&_fmt=high&_orig=na&_docanchor=&_idxType=SC&view=c&_ct=28&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=01681fbbf0d46b3ae1f7c80cc6e3c168 Abstract.]


* Walsh, Vivian (1987). "philosophy and economics," "The New Palgrave: A Dictionary of Economics", v. 3, pp. 861-869.


* [ Economics and Philosophy]
* [ Philosophy and Public Affairs]
* [ Journal of Economic Methodology]

External links

* Recommended first reading: [ Philosophy of Economics] (Daniel Little's entry in the "Routledge Encyclopedia of the Philosophy of Science")
* [ Philosophy of Economics] (Stanford Encyclopedia of Philosophy)
* Philosophical Issues in Economics [] (Cambridge University)
* [ Description of the Philosophy of Economics] (Dan Hausman, notable in the field)
* [ Homophileconomicus] (Philosophy and Economics Blog, with useful links, conference announcements, course syllabi, news concerning recent research, etc.)
* [ EIPE] (Erasmus Institute for Philosophy and Economics, based in Rotterdam, The Netherlands)

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