Matt_Simpson comments on I want to learn economics - Less Wrong

8 Post author: alexflint 13 January 2011 11:02PM

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Comment author: Matt_Simpson 15 January 2011 06:41:25AM 1 point [-]

I agree, but deny that it matters very much (if by "foundations", you mean methodology).

It does in the case of the (some) austrians. They don't think economics can be empirical - it's purely a theoretical science for them. And with no math.

Comment author: Jayson_Virissimo 15 January 2011 07:38:38AM *  2 points [-]

It does in the case of the (some) austrians. They don't think economics can be empirical - it's purely a theoretical science for them. And with no math.

And yet, even Rothbard's America’s Great Depression makes hundreds of references to empirical facts (and uses quite a bit of descriptive statistics). My point is that there is a very loose connection between the stated methodological principles of economists and the actual manner in which they perform their research and construct their arguments.

Comment author: Matt_Simpson 15 January 2011 10:32:45AM 1 point [-]

I agree in general, but not for the hardcore Austrians like Rothbard. The facts are illustrative only for Rothbard. His argument doesn't rest on empirical observations.

Comment author: Jayson_Virissimo 15 January 2011 06:31:34PM *  2 points [-]

I agree in general, but not for the hardcore Austrians like Rothbard. The facts are illustrative only for Rothbard. His argument doesn't rest on empirical observations.

I apologize for being unclear. I agree with your point that the facts Rothbard uses are "illustrative only", but I deny that this separates Rothbard's work from most of the economics profession. He is simply more upfront about it.

Of course, I agree entirely with your advice not to start learning economics within the Austrian Paradigm, which is why all of the texts I suggested were within the Neoclassical Paradigm.

Comment author: Matt_Simpson 16 January 2011 09:40:23AM 1 point [-]

Ah, I see. My impression of the economics profession as a whole is that there is a large group for which you're description fits and another large group for which it doesn't, but I don't have any communicable evidence for this position. I've personally worked with several economists in the latter category, but they would probably put most of the profession in the former.