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Fact and Fiction in Economics: Models, Realism and Social Construction Paperback – February 17, 2003

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Book Description

Bringing together some of the leading figures in the field of economic methodology and philosophy, this collection provides a thoughtful and balanced overview of the current state of debate about the status of economic knowledge. Representing the most current thinking on a topic of enduring interest to economists and philosophers and other social scientists,the book is notable for the extent to which authors from opposing schools of thought engage seriously with their opponents.

About the Author

USKALI MÄKI is Professor at Erasmus University of Rotterdam and Academic Director of the Erasmus Institute for Philosophy and Economics.
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Product Details

  • Paperback: 404 pages
  • Publisher: Cambridge University Press (February 17, 2003)
  • Language: English
  • ISBN-10: 052100957X
  • ISBN-13: 978-0521009577
  • Product Dimensions: 6 x 0.9 x 9 inches
  • Shipping Weight: 1.5 pounds (View shipping rates and policies)
  • Average Customer Review: 2.0 out of 5 stars  See all reviews (1 customer review)
  • Amazon Best Sellers Rank: #3,878,764 in Books (See Top 100 in Books)

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Format: Paperback
U Maki,the editor of this volume of collected essays,has included far too many essays which are long on fiction and very short on the facts.Two of the essays essentially provide fictional accounts of what John Maynard Keynes accomplished in the General Theory(GT).These essays are essay number 3,written by P. Dasgupta and essay number 8,written by M.Morgan.On pp.74-76,the reader is informed that Keynes had no mathematical model that analyzed the role played by involuntary unemployment in his theory of effective demand.On pp.187-195,which covers section 3,titled"Modeling Keynes's General Theory",the reader is told that Keynes had no model of his general theory in the GT.Morgan starts out as if she intends to cover Meade's 1937 model which is in fact very similar to the model presented by Keynes in chapters 10,20 and 21 of the GT,the major differences being (1)that Keynes did not include a variable to represent interest rates and (2)that Keynes incorporates expectational effects by shifting curves while Meade incorporates expectational effects by changing the elasticity(shapes) of the curves themselves.Meade's paper derives results which are very close to the results derived by Keynes,i.e.,an unemployment equilibrium representing the amount of involuntary unemployment qualitatively in a formal mathematical model.Keynes's comment on Meade's paper was that there was nothing with which he disagreed.Morgan NEVER attempts to analyze either Meade's model or Meade's results.Instead,she starts talking about the basic assumptions of Meade's model,which are the standard assumptions of the perfect/pure competition model.Meade left out the word "pure" and wrote "perfect" only.However,this is of no major consequence as far as the mathematical modeling of either Keynes or Meade was concerned.Read more ›
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