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Heterodox economics

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Heterodox economics refers to schools of economic thought which do not conform to the dominant paradigm of neoclassical economics.

The main objection of heterodox economics against official or conventional economics is that its models fail to explain the real world of economic life satisfactorily. Conventional economics, according to its critics, has a way of theorising, abstraction and idealisation which is to a large extent unreal.

Therefore, many heterodox economists argue, this economics cannot actually be used for anything much, it serves only as a mathematical ideology justifying market-functioning. Conventional economics is very narrowly reduced to what happens to factor-, product- or asset prices under specific conditions; in effect, economics has become identified with a "technology of commerce". If the models fail to work, this is often attributed to "extra-economic factors" influencing market relations. The result is at best an eclectic description of economic activity, which lacks much explanatory power, except in very limited cases.

Consequently, many schools of heterodox economics aim to re-introduce into economic science perspectives which have been expelled or banned from it: classical and modern political economy; economic history; Marxian economics; socialist economics; environmental economics; economic sociology and anthropology; institutional economics; business law; gender and racial issues in economics; public finance; economic ethics and social justice; development studies; and so on.

References

  • Marc Linder, Anti-Samuelson.
  • Francis Green & Petter Nore (eds.), Economics: An Anti-Text.