Monday, May 25, 2009

More Thoughts on Categorizing Economic Schools

The School’s…
View of the scope of Economics: science of human action, science of objective wealth, science of scarcity and allocation, etc.

Method of formalism: verbal logic, mathematical logic, acceptance of ambiguity and lack of formalism

Basic assumptions about rationality: perfect rationality, bounded rationality, reasonable rather than rational, irrational (driven by animal spirits)

Use of time: comparative statics (extremely limited use of time), equilibrium (out of time), real time (Bergsonian time)

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