Economics and methodology: crossing boundaries ; proceedings of the IEA conference held in Bergamo, Italy

489 Pages·1998·25.119 MB·English

by  International Economic Association.;Backhouse, Roger

Economics and
Methodology
Crossing Boundaries
Edited by
Roger E. Backhouse, Daniel M. Hausman,
Uskali Mäki and Andrea Salanti
ECONOMICS AND METHODOLOGY
This is IEA conference volume no. 126
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Economics and
Methodology
Crossing Boundaries
Proceedings of the IEA Conference held in Bergamo, Italy
Edited by
Roger E. Backhouse
Daniel M. Hausman
Uskali Maki
and
Andrea Salanti
in association with the
flfl INTERNATIONAL ECONOMIC ASSOCIATION
f£ First published in Great Britain 1998 by
MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 6XS and London
Companies and representatives throughout the world
A catalogue record for this book is available from the British Library.
This book is published in the International Economic Association series
General Editor: Michael Kaser
Series Standing Order ISBN 0-333-71242-0 (outside North America only)
ISBN 0-333-67458-8
W First published in the United States of America 1998 by
ST. MARTIN'S PRESS, INC.,
Scholarly and Reference Division,
175 Fifth Avenue, New York, N.Y. 10010
ISBN 0-312-21099-X
Library of Congress Cataloging-in-Publication Data
Economics and methodology : crossing boundaries : proceedings of the
IEA conference held in Bergamo, Italy / edited by Roger E. Backhouse
...[etal.].
p. cm. — (IEA conference volume ; no. 126)
"In association with the International Economic Association."
"Originally presented at the IEA conference on 'The nature of
economics: case studies in economy methodology', held at the
University of Bergamo on 17-19 June 1996"—Ackn.
Includes bibliographical references and index.
ISBN 0-312-21099-X (cloth)
I. Economics—Methodology—Congresses. I. Backhouse, Roger.
II. International Economic Association. III. Series: I.E.A.
conference volume ; no. 126.
HB131.E2574 1998
330-dc21 97-40288
CIP
© International Economic Association 1998
All rights reserved. No reproduction, copy or transmission of this publication may be made
without written permission.
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Any person who does any unauthorised act in relation to this publication may be liable to
criminal prosecution and civil claims for damages.
The authors have asserted their rights to be identified as the authors of this work in
accordance with the Copyright, Designs and Patents Act 1988.
This book is printed on paper suitable for recycling and made from fully managed and
sustained forest sources.
10 9 8 7 6 5 4 3 2 1
07 06 05 04 03 02 01 00 99 98
Printed in Great Britain by
The Ipswich Book Company Ltd, Ipswich, Suffolk
Contents
The International Economic Association , ix
Acknowledgements xi
List of Participants xii
List of Abbreviations xiii
Introduction
Daniel M. Hausman and Uskali Maki ' xv
1 Individualism and Equilibrium Coordination in Games 1
Maarten Janssen
Comment 36
Ariel Rubinstein
Comment: Individualistic Explanation and Strategic
Justification 42
Philippe Mongin
Discussion 54
2 Free Riding as Mechanism 62
Pierre Salmon
Comment: Free Riders, Altruists and Rationality 88
Stefano Zamagni
Comment: Mechanisms, Models and Free Riders 97
Uskali Maki
Discussion 113
3 Learning from the Debate on Externalities 120
Maurice Lagueux
Comment: The Growing Role of Externalities in
Economic Theory 148
Andrea Boitani
v
VI Contents
Comment: Assessing Human Interactions 157
Daniel M. Hausman
Discussion 170
4 Accounting for Involuntary Unemployment in
Neoclassical Theory: Some Lessons from Sixty Years
of Uphill Struggle 177
Michel De Vroey
Comment: Involuntary Unemployment One More Time 225
Axel Leijonhujvud
Comment: Keynes, Marshall and Involuntary
Unemployment 236
Kevin D. Hoover
Discussion 248
5 .Monetarists and Keynesians on Central Banking:
A Case Study of a Flawed Debate 254
Thomas Mayer
Comment: Mayer's Version of the Monetarist versus
Keynesian Debate 303
Bennett T. McCallum
Comment: Task Uncertainty in Economics 311
Nancy /, Wulwick
Discussion 316
6 Harold Hotelling and the Neoclassical Dream 322
D. Wade Hands and Philip E. Mirowski
Comment 398
Leonid Hurwicz
Comment 417
Nancy Cartwright
Discussion 422
Contents vn
7 Final Discussion 429
Conclusions 437
Roger E. Backhouse and Andrea Salanti
Index of Names 447
Subject Index 456
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The International Economic
Association
A non-profit organisation with purely scientific aims, the International
Economic Association (IEA) was founded in 1950. It is a federation
of some sixty national economic associations in all parts of the world.
Its basic purpose is the development of economics as an intellectual
discipline, recognising a diversity of problems, systems and values in
the world and taking note of methodological diversities.
The IEA has, since its creation, sought to fulfil that purpose by pro
moting mutual understanding among economists through the organisa
tion of scientific meetings and common research programmes, and by
means of publications on problems of fundamental as well as of cur
rent importance. Deriving from its long concern to assure professional
contacts between East and West and North and South, the IEA pays
special attention to issues of economics in systemic transition and in
the course of development. During its nearly fifty years of existence,
it has organised some hundred round-table conferences for specialists
on topics ranging from fundamental theories to methods and tools of
analysis and major problems of the present-day world. Participation in
round tables is at the invitation of a specialist programme committee,
but eleven triennial World Congresses have regularly attracted the par
ticipation of individual economists from all over the world.
The Association is governed by a Council, composed of representa
tives of all member associations, and by a fifteen-member Executive
Committee which is elected by the Council. The Executive Committee
(1995-8) at the time of the Bergamo Conference was:
President: Professor Jacques Drfeze, Belgium
Vice-President: Professor Anne Krueger, USA
Treasurer: Professor Erich Streissler, Austria
Past President: Professor Michael Bruno, Israel (deceased
26 December 1996)
Other Members: Professor Anthony B. Atkinson, UK
Professor Vittorio Corbo, Chile
Professor Karel Dyba, Czech Republic
Professor Jean-Michel Grandmont, France
IX