Week 3 Inductivism and Deductivism Flashcards
Explain inductivism in economics?
Inductivism subordinates conceptual considerations to empirical work
This approach starts with F. Bacon who wanted to ground our knowledge on careful observations from which to derive general laws
Thus science is obtained from:
1) Gathering data,
2) Deriving a theory
Explain Bacon’s work?
Bacon identified 4 idols we should free ourselves from, because they interfere with our knowledge of nature:
Idol of Tribe: tendency to find an unwarrantable degree of order or regularity
Idol of the Den: refers to peculiarities of our individual character
Idol of the Market Place: Need to find a common language, which may lead to imprecise scientific language
Idol of the Theatre: misleading information associated with dogmas which different schools of thought peddle
Explain Bacon’s method?
Enumerative Induction: we gather together a number of particular observation and draw general conclusion
This was deemed to be a weak method replaced by:
Eliminative Induction: we consider the phenomenon under investigation in a variety of different circumstances (place, time etc.) to see whether the latter affect the former. If not, we can eliminate those circumstances
What are some criticisms of Bacon’s method?
Chalmers points out that we do not collect mere data, but they are influenced by cultural background, anticipation and expectation
A more general argument is put forward by Gadamer and his hermeneutic philosophy according to which there is no theory without pre-comprehension (Vor-Urteile)
Hempel and Popper also stress that we cannot collect all data
What are the problems of induction? Who critisised it?
Hume criticised it for relying upon an unproven principle of uniformity of nature
But this principle has been inductively derived, i.e. it uses induction to justify induction!
Among econometricians, Mayer was aware of the impossibility of assuming stability in the behaviour of variables
Which school adopted inductivism?
Despite these criticisms inductivism has been adopted by the German Historical school of economics, especially Schmoller
However Schmoller who was aware of the problem of induction denied that we could ever attain laws in economics
Economics has to collect information for practical purposes
Explain the difference between deduction and deductivism?
While deduction can be used to facilitate statistical analysis, deductivists believe that statistical analysis is so transitory and greater knowledge may be acquired from introspection.
Deductivism originates with Descartes’ “cogito ergo sum”=I think therefore I am
Descartes tried to find some indubitable principles, which he found in the “self”
Explain Descartes’ Method
Consciousness is the basis for certitude
According to Descartes, all clear and distinct ideas are true and these can be found through 4 ways:
- Intuition
- Analysis, i.e. An idea can be decomposed and analysed into simpler ideas
- Method of synthesis, from simpler to more complex ideas
- Enumeration and control of what has been found in 1) or 2) or 3) to make sure that nothing essential has been omitted
His method relied on an a priori truth which had to be obtained via intuition
Starting from the certainty of the “cogito” all other “clear and distinct” ideas (World, God and Soul could be derived)
There was no room for induction in his approach
Explain deductive method of economics from the opinion of Ricardo and Cairnes…
Ricardo regarded the abstract method as essential to analyse the economic activity
He started from “self evident” propositions or “strong cases” to derive results
Cairnes also defended Ricardo’s deductive method. “Economics starts with a knowledge of ultimate causes”
He saw economics as middle ground between mathematics and inductive natural sciences
Explain Nassau Senior’s work…
Nassau Senior used 4 propositions as self-evidently true (axioms):
- Every person wishes to obtain more wealth with as little effort as possible
- World population is limited only by fear of drop in living standards
- Productive power of labour can be increased by using its product as means of further production
- Agricultural sector exhibits diminishing returns to scale
What are the problems with Deductivism?
Deductivism rests on axioms and applications to them of mathematical method. But the duty of scientist is to ask:
How are the axioms obtained?
Is it introspection? (subjectivism)
Are useful simplifications to be tested? (is this still deductivism or rather inductivism?)
Are just imposed to obtain rigorous results? (formalism)
Provide an example of an inductive and deductive theory?
Deductivism is a form of argument that relies on theological syllogism
- Premise (major) : all men are mortal
- Premise (minor) : Socrates is a man
Conclusion: Socrates is mortal
Induction: starts from true premises but will never reach a firm (universal) conclusion
Example: P1, the cardinal is a bird that flies
P2: the robin is a bird that flies
C: all birds can fly
