Spiethoff’s economic styles and the current debate about pluralism in economics

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Abstract

The article concentrates on the methodological aspects of the economic styles approach by Arthur Spiethoff. As it will be shown, this approach shows a lot of characteristics typically attributed to social economics, evolutionary economics, Tony Lawson’s social ontology and, therefore, to heterodox economics in general. However, it can also add interesting insights to the current debate about economics. Among others, a re-interpretation of this approach can help to outgrow the duality of either deduction or induction still dominating the debate about economics. It can also provide a general framework for different economic approaches, including the established (so-called) mainstream approaches.

Posted for comments on 12 May 2017, 11:10 am.

Comments (1)

  • Rafael Galvão de Almeida says:

    This article makes a good work on summarizing Spiethoff’s work and in presenting his definition of economic styles to people who never heard of him before (just like me and a lot of readers of this journal). So I will focus on the more general aspects and look at how you [the author] introduce[s] the issue.

    In the second paragraph, you introduce the idea of economic styles but by the end of it, all I can say is “then, what are economic styles?” I mean, it is more of a writing issue: you introduce “economic styles” and then you start to tell that it is part of the tradition of the German historical school (GHS) and wait until page 9 to define them. It felt like the topic changed from a dissertation about “what economic styles are” to “what the relevance of the GHS to this is”. For example, let’s take Douglass North’s definition of institutions as “institutions are the rules of the game” (North, 1990, p. 3). I will not discuss the correctness of this definition, but I place this here to show how institutions for North can be defined in one phrase. It would be good if you introduced a simple yet comprehensive definition of economic styles before going about its origins in the GHS. Since the term has been used by others than Spiethoff, it would be good to define what the common ground is among them, leaving the discussion on the differences for another time (since it is not the aim of the paper).

    And, speaking of the GHS, while a detailed research on the economic styles is beyond the scope of the article, I think a contextual note/paragraph would be good. For example, in page 5, note 4, you wrote that Spiethoff’s approach “clearly breathe the spirit of Carl Menger’s ‘exact method’.” Any undergraduate course in history of economic thought teaches the student that Schmoller and Menger were on opposite sides in the Methodensreit and this note seemed to imply that Spiethoff managed to synthetize both approaches, which is a topic for an entire new discussion. And since the economic styles approach is not well-known, it needs a better context than to say it belongs to the GHS tradition.
    I appreciate the clarifying points to determine the scope of the article. Such an unknown character in the history of economic thought can lead to lots of different questions that, in a sense, I have already asked in this review. The article shows no problems with all points, but point 2: if the economic styles has a forgotten character, then why was it? I mean, the approach clearly has applications for the pluralism, but if it was forgotten because of defects and weaknesses, they have to be taken in consideration in its modern applications; but if it was forgotten by bad timing or it just did not interest to the mainstream (I realized that Spiethoff’s articles in English were published more or less at the same time as Friedman’s (1953) article on methodology, what a coincidence, huh? Even the metaphor of a painting not a photo resonates with Friedman’s metaphor of an engine not a photo), then there is nothing that can be done. Redirecting to one of the secondary literature that discuss this can be good.

    A minor thing, but I wonder how the Gestalt theory relates to the complexity approach. Since “[E]conomic Gestalt theory considers the maximum number of relations in which the phenomenon to be investigated actually occurs”, it would be a good way to deal with the economic complexity approach.

    The use of a stereotypical vision of mainstream is a problem with heterodox economics (Dasgupta (2002), in spite of being full of sarcasm, is more or less correct in saying that some heterodox economists do not understand how processes of change occur in mainstream economics) is a problem that heterodox economists cannot afford to commit (in contrast to the opposite scenario, unfortunately) and the article does a good job of analyzing the mainstream using Spiethoff’s view. Once again the approach of overmatematization has also its critics in the mainstream itself (e.g. Romer, 2015), but this is a good discussion on how Spiethoff can complement Lawson’s perspective, since many consider Lawson’s perspective to be too radical. Especially because there are heterodox critiques of mainstream economics in the sense that it does not use too much math but too little math (e.g. Arthur, 1999) (not saying to incorporate them in the article, but that studying complexity based on Spiethoff’s economic styles can be a suggestion for future research – and as an anecdotal evidence, based on talks with a friend who is into econophysics, he said that physicians and mathematicians consider neoclassical mathematics mostly outdated and ignorable).

    Other minor concern is the use of approaches that might not be familiar with an international reader. Like the German Sozialökonomik (which is in the abstract with a slightly different name), I think that non-German speakers might not be familiar with this approach, unlike evolutionary economics (assuming that “German evolutionary economics” does not differentiate much from usual evolutionary economics, save for more emphasis on sociology), so an explanatory note would be good.

    One of the greatest points of the article is “the scientist is not free of interest, but the creation of economic styles is influenced by the scientist’s own impression about the entire economic life”. Economists must remember that economics is a moral science, values and interests will affect their research. It is better to put them on the table rather than try to hide them under a veil.

    In overall, I think that the paper should be published by Economic Thought. It manages to restore Arthur Spiethoff’s work on economic styles and its applications to a more plural economic science. However, the main issues with the paper are a better presentation of the concept of economic styles, make it more clear in the beginning of the article and to give the theory a better explained context in the history of economic thought. It also needs editing with language and writing structure issues.

    References

    Arthur, W. Brian. “Complexity and the economy.” science 284.5411 (1999): 107-109.
    Dasgupta, Partha. “Modern economics and its critics.” In: Mäki, Uskali (ed.). Fact and fiction in economics: Models, realism and social construction (2002): 57-89.
    Friedman, Milton. The methodology of positive economics. 1953. In: Hausman, Daniel (ed.) The philosophy of economics. 3rd edition. Cambridge: Cambridge University Press, (2008): 145-178.
    North, Douglass. Institutions, institutional change and economic performance. Cambridge: Cambridge University Press, 1990.
    Romer, Paul M. “Mathiness in the theory of economic growth.” The American Economic Review 105.5 (2015): 89-93.

    Rafael Galvão de Almeida
    PhD candidate, Federal University of Minas Gerais (UFMG, Brazil)

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