This paper examines Kirzner's contribution to the study of the equilibrating tendency in economics. By analyzing his interpretation of Jevons’ law of indifference, we participate in the debate on Kirzner association with neoclassicals when discussing the equilibrating tendency. A reconstruction of Kirzner’s use of Jevons’ law is conducted, considering his argumentative strategy when presenting the Austrian economics ideas to other professionals in the field. We conclude that Kirzner drew close to neoclassical economics to emphasize the relevance and uniqueness of Austrian (...) economics. By doing so, we highlight the main differences between the two currents of economic thought. (shrink)

In the context of strategic interactions, individuals sometimes find themselves better off when they have fewer options. This mechanism is known under the name of ‘strategic commitment’, as it is usually the individuals themselves who ‘commit’ to following a certain course of action by restricting their options; but that is not necessary. I explain how a paternalistic intervention may be conceived where it is a third party who paternalistically restricts rational individuals’ choices to improve their welfare. This kind of intervention, (...) which I call ‘strategic paternalism’, contradicts the narrative according to which welfare economics is incompatible with paternalism because it assumes individual rationality, which would make paternalism irrelevant. To prove this point, I show why and in what sense this ‘strategic paternalism’ deserves to be called that way. (shrink)

Within the heterodox economic literature on pluralism, attention has predominately focussed on epistemic and methodological levels. The response to the question of what ontological pluralism could mean, and its contribution to the debate, remains limited. This paper argues for greater attention to be given to ontological pluralism, not only because it enriches the existing discussions around pluralism in the heterodox literature but it also provides support for a plurality of epistemological standards and methodological approaches. The paper proposes an alternative definition (...) of ontological pluralism based on the work of McDaniel and Turner. Both argue that ontological pluralism should be understood as saying that there are different ways to exist and that acceptance of the semantic characteristics of ontological questions and statements within different ontological discourses are essential in a proper definition. This paper details their definition and explores its consequences with an analysis of the Searle–Lawson dispute on social objects. (shrink)

Randomized control trials (RCTs) are recognized as the preferred tool of analysis in modern development economics literature/research and policy evaluation. This may lead to methodologies, including case studies, tabular analysis, simple regressions, taking a back seat. This survey explores the implications of such a methodological hierarchy and the implications of preoccupation with a particular evidence/methodology for research and policy. Similar developments in macroeconomic modelling are also discussed. Major advantages and limitations of RCTs and the attempts to address them are highlighted. (...) The article argues that preoccupation with a methodology can sometimes lead to important inquiries for research and policy getting side-lined on methodological considerations. This leads to inferences favouring a particular technique/methodology or issue. Focusing solely on methodologies that emphasize quantifying the ‘effect’ may not be appropriate to address all questions relevant to development. As policies involve multiple and conflicting social concerns, methodological pluralism may be preferable. (shrink)

Several authors have recently argued that the excessive focus on equilibrium models in mainstream economic analysis prevents economists from providing accurate representations of the complex and dynamic nature of real economic systems. In response, this paper argues the following. Many economic systems are the products of deliberate and centralized human design. People can and do build and support structures, such as social institutions, aiming to enhance the predictability of economic systems, and thus to move them toward being equilibrium systems. This (...) provides a reason to think that many economic systems can be represented by equilibrium models. (shrink)