IDEAS home Printed from https://ideas.repec.org/a/taf/jecmet/v8y2001i2p169-201.html
   My bibliography  Save this article

Successes and failures in the transformation of economics

Author

Listed:
  • Richard Lipsey

Abstract

While acknowledging the successes of modern economics, this paper concentrates on some shortcomings. Many are traced to a single source: the great insights of economics are all qualitative. Economics does not have a theoretical structure that is tightly related to a rich body of data and those seeking to contribute to its ideas operate on widely divergent levels of theoretical and empirical sophistication with little communication between those who operate at different levels. One consequence is that anomalies are tolerated on a scale that would be scandalous in any natural science. Another is that theories tend to be developed in unconstrained ways that are empirically relevant only by accident. Elegant error is often preferred to messy truth. Theoretical tractability is often preferred to empirical relevance. Economists often prefer theories that produce unambiguous policy results over theories that do not, irrespective of their relative evidential bases.

Suggested Citation

  • Richard Lipsey, 2001. "Successes and failures in the transformation of economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 169-201.
    • Handle: RePEc:taf:jecmet:v:8:y:2001:i:2:p:169-201
    DOI: 10.1080/13501780110047273
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/13501780110047273
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13501780110047273?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 search for a different version of it.

    References listed on IDEAS

    as
    1. B. C. Eaton & Richard G. Harris (ed.), 1997. "Trade, Technology and Economics," Books, Edward Elgar Publishing, number 1020.
    2. Curtis Eaton, B. & Lipsey, Richard G., 1989. "Product differentiation," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 12, pages 723-768, Elsevier.
    3. Stephen R. G. Jones & W. Craig Riddell, 1999. "The Measurement of Unemployment: An Empirical Approach," Econometrica, Econometric Society, vol. 67(1), pages 147-162, January.
    4. William J. Baumol, 1952. "The Transactions Demand for Cash: An Inventory Theoretic Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 66(4), pages 545-556.
    5. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(2), pages 65-86.
    6. R. G. Lipsey & Kelvin Lancaster, 1956. "The General Theory of Second Best," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 24(1), pages 11-32.
    7. Richard G. Lipsey, 1981. "The Understanding and Control of Inflation: Is There a Crisis in Macro-Economics?," Canadian Journal of Economics, Canadian Economics Association, vol. 14(4), pages 545-576, November.
    8. Richard Lipsey, 2002. "Some Implications Of Endogenous Technological Change For Technology Policies In Developing Countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 321-351.
    9. G.C. Archibald & B.C. Eaton & Richard Lipsey, 1982. "Address Models of Value Theory," Working Paper 495, Economics Department, Queen's University.
    10. Robert E. Hall, 1980. "Employment Fluctuations and Wage Rigidity," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 11(1, Tenth ), pages 91-142.
    11. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
    12. Chrystal, K. Alec & Lipsey, Richard G., 1997. "Economics for Business and Management," OUP Catalogue, Oxford University Press, number 9780198775386.
    13. Thomas Mayer, 1992. "Truth versus precision in economics," Books, Edward Elgar Publishing, number 307.
    14. B. C. Eaton & Richard G. Lipsey, 1997. "On the Foundations of Monopolistic Competition and Economic Geography," Books, Edward Elgar Publishing, number 1233.
    15. Richard G. Lipsey & Kenneth Carlaw, 2000. "What Does Total Factor Productivity Measure?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 1, pages 31-40, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Des Gasper, 2002. "Is Sen's Capability Approach an Adequate Basis for Considering Human Development?," Review of Political Economy, Taylor & Francis Journals, vol. 14(4), pages 435-461.
    2. Anthony Scott, 2001. "Economists, Environmental Policies and Federalism," The State of Economics in Canada: Festschrift in Honour of David Slater, in: Patrick Grady & Andrew Sharpe (ed.),The State of Economics in Canada: Festschrift in Honour of David Slater, pages 405-449, Centre for the Study of Living Standards.
    3. Lukasz Hardt, 2011. "An inquiry into the explanatory virtues of transaction cost economics," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 5(1), pages 120-147, November.
    4. Stuart Birks, 2013. "No Ethical Issues in Economics?," Economic Thought, World Economics Association, vol. 2(1), pages 1-3, April.
    5. Vinca Bigo & Ioana Negru, 2008. "From Fragmentation to Ontologically Reflexive Pluralism," The Journal of Philosophical Economics, Bucharest Academy of Economic Studies, The Journal of Philosophical Economics, vol. 1(2), pages 127-150, March.
    6. Lind, Hans, 2007. "The story and the model done: An evaluation of mathematical models of rent control," Regional Science and Urban Economics, Elsevier, vol. 37(2), pages 183-198, March.
    7. Gasper, D.R., 2007. "Problem- and policy-analysis for human development," ISS Working Papers - General Series 18743, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    8. Gasper, D.R., 2002. "Is Sen's Capability Approach an Adequate Basis for Considering Human Development," ISS Working Papers - General Series 50674, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    9. Zoya Mladenova, 2005. "XX Century and the Evolution of the Economic Theory (Neoclassical Theory: Development of Microeconomics)," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-23.
    10. Zoya Mladenova, 2006. "The Evolution of Economic Theory during the Twentieth Century," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 7, pages 49-71.
    11. Claudius Gräbner & Birte Strunk, 2020. "Pluralism in economics: its critiques and their lessons," Journal of Economic Methodology, Taylor & Francis Journals, vol. 27(4), pages 311-329, October.
    12. Oliver E. Williamson, 2005. "The Economics of Governance," American Economic Review, American Economic Association, vol. 95(2), pages 1-18, May.
    13. Schiffman, Daniel A., 2004. "Mainstream economics, heterodoxy and academic exclusion: a review essay," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1079-1095, November.
    14. Hendrik P. van Dalen, 2003. "Pluralism in Economics: A Public Good or a Public Bad?," Tinbergen Institute Discussion Papers 03-034/1, Tinbergen Institute, revised 18 May 2004.
    15. Birolo, Adriano, 2010. "La ricerca economica in Italia tra pluralismo e monismo: i giovani economisti negli ultimi trent’anni [The Italian economic research between pluralism and monism: the young economists in the last t," MPRA Paper 27219, University Library of Munich, Germany.
    16. Richard G. Lipsey, 2009. "Some Legacies of Robbins' An Essay on the Nature and Significance of Economic Science," Economica, London School of Economics and Political Science, vol. 76(s1), pages 845-856, October.

    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. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    2. Stephen D. Williamson & Randall Wright, 2010. "New monetarist economics: methods," Review, Federal Reserve Bank of St. Louis, vol. 92(May), pages 265-302.
    3. Charles Van Marrewijk, 2004. "An Introduction to International Money and Foreign Exchange Markets," Centre for International Economic Studies Working Papers 2004-07, University of Adelaide, Centre for International Economic Studies.
    4. Boucekkine, R. & Laksaci, M. & Touati-Tliba, M., 2021. "Long-run stability of money demand and monetary policy: The case of Algeria," The Journal of Economic Asymmetries, Elsevier, vol. 24(C).
    5. Jan Tin, 2010. "Bequest motives and household money demand," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 34(3), pages 269-283, July.
    6. Abdul Qayyum, 2000. "Demand for Real Money Balances by the Business Sector: An Econometric Investigation," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 39(4), pages 857-873.
    7. Snellman, Heli, 2006. "Automated teller machine network market structure and cash usage," Bank of Finland Scientific Monographs, Bank of Finland, volume 0, number sm2006_038, July.
    8. Reuven Glick, 1984. "The Geometry Of Asset Adjustment With Adjustment Costs," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, vol. 7(4), pages 303-314, December.
    9. Franco Modigliani, 1977. "The monetarist controversy; or, should we forsake stabilization policies?," Economic Review, Federal Reserve Bank of San Francisco, issue Spr suppl, pages 27-46.
    10. David Wiens, 2016. "Assessing ideal theories," Politics, Philosophy & Economics, , vol. 15(2), pages 132-149, May.
    11. Gordon, Robert J, 1981. "Output Fluctuations and Gradual Price Adjustment," Journal of Economic Literature, American Economic Association, vol. 19(2), pages 493-530, June.
    12. Podshivalov, Georgii, 2019. "Observing the Evolution in Macroeconomic Theory," MPRA Paper 97657, University Library of Munich, Germany.
    13. Grzegorz Michalski, 2012. "Crisis Caused Changes In Intrinsic Liquidity Value In Non-Profit Institutions," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 7(2), pages 139-158, June.
    14. Georges Prat, 1988. "Note à propos de l'influence de l'incertitude sur la demande de monnaie," Revue Économique, Programme National Persée, vol. 39(2), pages 451-460.
    15. Bordo, Michael D. & Jonung, Lars, 1990. "The long-run behavior of velocity: The institutional approach revisited," Journal of Policy Modeling, Elsevier, vol. 12(2), pages 165-197.
    16. Casey B. Mulligan, "undated". "The Demand for Money by Firms: Some Additional Empirical Results," University of Chicago - Population Research Center 97-1, Chicago - Population Research Center.
    17. Mr. Jean-Claude Nachega, 2001. "Financial Liberalization, Money Demand, and Inflation in Uganda," IMF Working Papers 2001/118, International Monetary Fund.
    18. Scheffel, Eric, 2008. "Consumption Velocity in a Cash Costly-Credit Model," Cardiff Economics Working Papers E2008/31, Cardiff University, Cardiff Business School, Economics Section.
    19. Padha, Vimarsh & Chaubal, Aditi, 2024. "Impact of global liquidity on Indian financial markets and monetary policy outcomes: An ARDL approach," Journal of Asian Economics, Elsevier, vol. 90(C).
    20. I L Awad & A M Soliman, 2016. "The stability of the demand for money function in Islamic and non-Islamic monetary policy regimes," Economic Issues Journal Articles, Economic Issues, vol. 21(1), pages 67-85, March.

    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:taf:jecmet:v:8:y:2001:i:2:p:169-201. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJEC20 .

    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.