IDEAS home Printed from https://ideas.repec.org/a/spr/revepe/v2y2021i2d10.1007_s43253-020-00024-1.html
   My bibliography  Save this article

Veblen’s evolutionary methodology and its implications for heterodox economics in the calculable future

Author

Listed:
  • Tae-Hee Jo

    (State University of New York—Buffalo State)

Abstract

Critics have repeatedly claimed that heterodox economics has failed. They blame heterodox economists for their own failure. I subject this claim to critical examination from the perspective of Veblen’s evolutionary methodology. Veblen’s theory of the business enterprise will be used as an example, which exemplifies the case that a ‘blasphemous’ theory is ignored and marginalized even though it provides rich and perspicacious insights into the evolution of economy and society. It is also argued that social science does not follow the biological principle of natural selection and the survival of the fittest. What survives does not necessarily mean the fittest in the social realm. The history of science is replete with paradoxical incidents that an incoherent, irrelevant, or even wrong theory becomes dominant and widely accepted because it is one that serves the vested interests in academia and society. Economics is no exception.

Suggested Citation

  • Tae-Hee Jo, 2021. "Veblen’s evolutionary methodology and its implications for heterodox economics in the calculable future," Review of Evolutionary Political Economy, Springer, vol. 2(2), pages 277-295, July.
    • Handle: RePEc:spr:revepe:v:2:y:2021:i:2:d:10.1007_s43253-020-00024-1
    DOI: 10.1007/s43253-020-00024-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43253-020-00024-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s43253-020-00024-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ann Jennings & William Waller, 1998. "The Place of Biological Science in Veblen's Economics," History of Political Economy, Duke University Press, vol. 30(2), pages 189-217, Summer.
    2. Marc Lavoie, 2014. "Post-Keynesian Economics: New Foundations," Post-Print hal-01343652, HAL.
    3. Michael Dietrich & Jackie Krafft (ed.), 2012. "Handbook on the Economics and Theory of the Firm," Books, Edward Elgar Publishing, number 13623.
    4. Francisco Louçã & Mark Perlman (ed.), 2000. "Is Economics an Evolutionary Science?," Books, Edward Elgar Publishing, number 1897.
    5. Tae-Hee Jo & John F. Henry, 2015. "The Business Enterprise in the Age of Money Manager Capitalism," Journal of Economic Issues, Taylor & Francis Journals, vol. 49(1), pages 23-46, January.
    6. Stephen Edgell & Rick Tilman, 1989. "The Intellectual Antecedents of Thorstein Veblen: A Reappraisal," Journal of Economic Issues, Taylor & Francis Journals, vol. 23(4), pages 1003-1026, December.
    7. Richard Holt & J. Barkley Rosser & David Colander, 2011. "The Complexity Era in Economics," Review of Political Economy, Taylor & Francis Journals, vol. 23(3), pages 357-369.
    8. Geoffrey M. Hodgson & Warren J. Samuels & Marc R. Tool (ed.), 1994. "The Elgar Companion to Institutional and Evolutionary Economics," Books, Edward Elgar Publishing, volume 0, number 228.
    9. Janet T. Knoedler, 1995. "Transaction Cost Theories of Business Enterprise from Williamson and Veblen: Convergence, Divergence, and Some Evidence," Journal of Economic Issues, Taylor & Francis Journals, vol. 29(2), pages 385-395, June.
    10. Foss, Nicolai J, 1998. "The Competence-Based Approach: Veblenian Ideas in the Modern Theory of the Firm," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 22(4), pages 479-495, July.
    11. William M. Dugger, 2006. "Veblen’s Radical Theory of Social Evolution," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(3), pages 651-672, September.
    12. Alfred S. Eichner, 1983. "Why Economics Is Not Yet a Science," Journal of Economic Issues, Taylor & Francis Journals, vol. 17(2), pages 507-520, June.
    13. Frederic Sterling Lee & Marc Lavoie, 2013. "In Defense of Post-Keynesian Economics and Heterodox Economics: Response to their Critics," Post-Print hal-01343662, HAL.
    14. John Groenewegen, 2004. "Who Should Control the Firm? Insights from New and Original Institutional Economics," Journal of Economic Issues, Taylor & Francis Journals, vol. 38(2), pages 353-361, June.
    15. Thorstein Veblen, 1907. "The Socialist Economics of Karl Marx and his Followers," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 21(2), pages 299-322.
    16. John Watkins, 2010. "Mainstream Efforts to Tell a Better Story - Natural Selection as a Misplaced Metaphor: The Problem of Corporate Power," Journal of Economic Issues, Taylor & Francis Journals, vol. 44(4), pages 991-1008.
    17. Geoffrey Hodgson & Thorbjørn Knudsen, 2004. "The firm as an interactor: firms as vehicles for habits and routines," Journal of Evolutionary Economics, Springer, vol. 14(3), pages 281-307, July.
    18. David Colander & Richard Holt & Barkley Rosser, 2004. "The changing face of mainstream economics," Review of Political Economy, Taylor & Francis Journals, vol. 16(4), pages 485-499.
    19. Giuseppe Fontana & Bill Gerrard, 2006. "The future of Post Keynesian economics," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 59(236), pages 49-80.
    20. Veblen, Thorstein, 1904. "Theory of Business Enterprise," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1904.
    21. Michael Dietrich & Jackie Krafft, 2012. "Handbook on the Economics and Theory of the Firm," Post-Print halshs-01378625, HAL.
    22. Wible James, 1998. "THE ECONOMICS OF SCIENCE, METHODOLOGY AND EPISTEMOLOGY AS IF ECONOMICS REALLY MATTER: Compte rendu de lecture par Emmanuel Martin," Journal des Economistes et des Etudes Humaines, De Gruyter, vol. 8(4), pages 555-572, December.
    23. Diane Coyle, 2007. "Introduction to The Soulful Science: What Economists Really Do and Why It Matters," Introductory Chapters, in: The Soulful Science: What Economists Really Do and Why It Matters, Princeton University Press.
    24. Michael Dietrich & Jackie Krafft, 2012. "The Economics and Theory of the Firm," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 1, Edward Elgar Publishing.
    25. John H Finch & Robert McMaster, 2018. "History matters: on the mystifying appeal of Bowles and Gintis [Trust and antitrust]," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(2), pages 285-308.
    26. Karl L. Anderson, 1933. "The Unity of Veblen's Theoretical System," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 47(4), pages 598-626.
    27. Argyrous, George & Sethi, Rajiv, 1996. "The Theory of Evolution and the Evolution of Theory: Veblen's Methodology in Contemporary Perspective," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 20(4), pages 475-495, July.
    28. Veblen, Thorstein, 1919. "The Vested Interests and the Common Man," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1919.
    29. William Dugger, 1990. "The New Institutionalism: New But Not Institutionalist," Journal of Economic Issues, Taylor & Francis Journals, vol. 24(2), pages 423-431, June.
    30. Philip Mirowski, 1983. "An Evolutionary Theory of Economics Change: A Review Article," Journal of Economic Issues, Taylor & Francis Journals, vol. 17(3), pages 757-768, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tae-Hee Jo, 2021. "A Veblenian Critique of Nelson and Winter’s Evolutionary Theory," Journal of Economic Issues, Taylor & Francis Journals, vol. 55(4), pages 1101-1117, October.
    2. Tae-Hee Jo, 2019. "The Institutionalist Theory of the Business Enterprise: Past, Present, and Future," Journal of Economic Issues, Taylor & Francis Journals, vol. 53(3), pages 597-611, July.
    3. Jo, Tae-Hee, 2013. "Uncertainty, Instability, and the Control of Markets," MPRA Paper 47936, University Library of Munich, Germany.
    4. Tae-Hee Jo, 2016. "What If There Are No Conventional Price Mechanisms?," Journal of Economic Issues, Taylor & Francis Journals, vol. 50(2), pages 327-344, April.
    5. Geoffrey M. Hodgson, 2012. "Veblen, Commons and the Theory of the Firm," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 5, Edward Elgar Publishing.
    6. Valentinov, Vladislav & Roth, Steffen, 2022. "Chester Barnard’s theory of the firm: An institutionalist view," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 56(3), pages 707-720.
    7. Viano Francesca Lidia, 2002. "Guesswork and knowledge in evolutionary economics: verblen revisited," CESMEP Working Papers 200205, University of Turin.
    8. Beckenbach, Frank, 2019. "Monism in modern science: The case of (micro-)economics," Working Paper Serie des Instituts für Ökonomie Ök-49, Hochschule für Gesellschaftsgestaltung (HfGG), Institut für Ökonomie.
    9. Hölzl, Werner & Janger, Jürgen, 2014. "Distance to the frontier and the perception of innovation barriers across European countries," Research Policy, Elsevier, vol. 43(4), pages 707-725.
    10. Nicolaï Foss & Nils Stieglitz, 2012. "Modern Resource-based Theory(ies)," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 20, Edward Elgar Publishing.
    11. Markus Becker & Thorbjorn Knudsen, 2012. "Nelson and Winter Revisited," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 19, Edward Elgar Publishing.
    12. Clare Virginia Eby, 1998. "Veblen’s Assault on Time," Journal of Economic Issues, Taylor & Francis Journals, vol. 32(3), pages 689-707, September.
    13. Marko Peric & Vanja Vitezic, 2016. "Impact of global economic crisis on firm growth," Small Business Economics, Springer, vol. 46(1), pages 1-12, January.
    14. Erhardt, Eva, 2017. "Microfinance beyond self-employment: Evidence for firms in Bulgaria," MPRA Paper 79294, University Library of Munich, Germany.
    15. Michal Brzozowski, 2019. "Access to Credit and Growth of Firms," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 69(3), pages 253-274, June.
    16. Weinstein Olivier, 2012. "Firm, Property and Governance: From Berle and Means to the Agency Theory, and Beyond," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 2(2), pages 1-57, June.
    17. Lina Cortés & Juan M. Lozada & Javier Perote, 2019. "Firm size and concentration inequality: A flexible extension of Gibrat’s law," Documentos de Trabajo de Valor Público 17205, Universidad EAFIT.
    18. Werner Hölzl & Jürgen Janger, 2012. "Innovation Barriers across Firms and Countries," WIFO Working Papers 426, WIFO.
    19. Erhardt, Eva Christine, 2017. "Microfinance beyond self-employment: Evidence for firms in Bulgaria," Labour Economics, Elsevier, vol. 47(C), pages 75-95.
    20. Canarella, Giorgio & Miller, Stephen M., 2018. "The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis," Economic Modelling, Elsevier, vol. 70(C), pages 259-271.

    More about this item

    Keywords

    Thorstein Veblen; Heterodox economics; Evolution; Business enterprise;
    All these keywords.

    JEL classification:

    • 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
    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:revepe:v:2:y:2021:i:2:d:10.1007_s43253-020-00024-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.