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Veblen: Pioneer Of Open Economic Reality

Author

Listed:
  • Fatma Esra Soylu

    (Alanya Alaaddin Keykubat University,Department of Economics, Alanya, Turkey)

Abstract

In this study, it is argued that the main failure of mainstream economics is its inability to establish a social ontology and Thorstein Veblen, the founder of the Institutional Economics school, has an important role in establishing this social ontology. Considering the social and economic reality as a closed system, which mainstream economics presupposes in the analysis, is the main reason behind its failure to produce solutions to real world problems. The necessity of an open system ontology is a common issue for heterodox schools of economics that opposes the mainstream. It will be argued that Veblen’s analysis has the ideas that form the basis of this concept. First, the basic elements of the open system approach will be discussed. Then, it will be argued that the elements of the evolutionist approach, the relationship between structure-agent, the rejection of positivism and the cumulative causality in Veblen’s analysis are consistent with the open system approach.

Suggested Citation

  • Fatma Esra Soylu, 2022. "Veblen: Pioneer Of Open Economic Reality," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 31(2), pages 603-621, december.
    • Handle: RePEc:avo:emipdu:v:31:y:2022:i:2:p:603-621
    DOI: 10.17818/EMIP/2022/2.12
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    References listed on IDEAS

    as
    1. Sheila C. Dow & Victoria Chick, 2012. "The Meaning of Open Systems," Palgrave Macmillan Books, in: Foundations for New Economic Thinking, chapter 11, pages 178-196, Palgrave Macmillan.
    2. Victoria Chick, 2004. "On open systems," Brazilian Journal of Political Economy, Center of Political Economy, vol. 24(1), pages 3-17.
    3. Veblen, Thorstein, 1898. "Why Economics is not an Evolutionary Science," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 12.
    4. Geoffrey M. Hodgson, 2000. "What Is the Essence of Institutional Economics?," Journal of Economic Issues, Taylor & Francis Journals, vol. 34(2), pages 317-329, June.
    5. Thorstein Veblen, 1898. "Why is Economics Not an Evolutionary Science?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 12(4), pages 373-397.
    6. Tony Lawson, 2004. "Reorienting Economics: On heterodox economics, themata and the use of mathematics in economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 11(3), pages 329-340.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Thorstein Veblen; Open system; Institutional Economics; Ontology; Methodology;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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