(L9) Sandmo Chapter 19 Flashcards
What is the debate over mathematical language in economics about?
The debate is about the usefulness of mathematical language in economics, contrasting with a push towards empirical research and statistical methods.
What are the objections to formalization in economics?
Objections include concerns about mathematical formalization ignoring individual researchers’ thought processes and the practical applicability of economic problems.
How has economics evolved from a historical perspective?
Economics has evolved from a ‘literary’ field with limited formalized methods to integrating mathematical and statistical methods post-World War II.
What is the current trend in the usage of mathematical methods in economics?
Modern economics heavily employs mathematical methods, with most articles and textbooks now using these methods, indicating a shift towards formalization and technical analysis.
What are new perspectives in economics concerning interdisciplinary approaches?
There’s an increasing adoption of economic concepts in other fields like philosophy, sociology, and political science, leading to a broader scope of economic analysis.
What is meant by ‘economic imperialism’ in modern economics?
Economic imperialism refers to the expansion of economic analysis into traditionally non-economic areas like health, education, and environmental studies.
What are the criticisms and defenses of the mathematical approach in economics?
Criticisms include the approach being too narrow and oversimplifying human relationships. Defenses argue for the necessity of simplification for rigorous analysis and the clarity and transparency that mathematical formulation provides.
How has the perspective on marginalism and equilibrium changed in economics?
There has been a shift from institutional perspectives to focusing on marginalism and general equilibrium theories, viewing institutions as antitheoretical.
What impact does the increasing formalization of economics have on its accessibility?
The increasing formalization makes economics less accessible, creating a barrier for those without a strong background in mathematics and statistics.
How has empirical research evolved in modern economics?
Empirical research has become more prominent, with advancements in data collection and econometric techniques enabling better testing of theories.
What is the significance of experimental economics in the field?
Experimental economics marks a transition towards a more empirical approach, using laboratory experiments to test hypotheses about behavior.
How has the profession of economics evolved over time?
Economics has evolved from a pursuit of ‘gentlemen of leisure’ to a professional academic discipline, with increased institutionalization and specialization.
What characterizes the globalization of economics?
The globalization of economics is marked by English becoming the dominant language, increased international collaboration, and American universities becoming central to economic research.
What consensus exists among economists on policy-related questions?
Economists generally agree on certain policy-related questions, such as the negative impact of tariffs and minimum wages on economic welfare and employment.
How has the debate on markets vs. state planning evolved?
The debate has evolved to a more nuanced view of the balance between market freedom and state intervention, especially post-communism.
