— Ch. 1 · Defining Economic Ontology —
Philosophy and economics.
~4 min read · Ch. 1 of 5
Adam Smith published An Inquiry into the Nature and Causes of the Wealth of Nations in 1776. This text established a foundational definition for economics that has evolved over centuries. Modern scholars like Roger E. Backhouse and Steven Medema note that definitions vary significantly depending on programmatic concerns and the specific expositors involved. The question "what is economics?" rarely yields a single answer. Instead, it produces a survey of definitional difficulties and territorial controversies within the field. Philosophers ask what constitutes economic value or what defines a market as a phenomenon. These inquiries aim to shift entire perspectives regarding the foundations of economic science rather than providing simple verbal definitions. When ontological shifts gain wide acceptance, their ripple effects spread throughout the entire discipline. Uskali Mäki discusses how scientific realism interacts with these ontological questions in modern economic theory.
Methodological Epistemology
Alexander Rosenberg published Microeconomic Laws: A Philosophical Analysis in 1976. Daniel M. Hausman followed this work with extensive critiques and analyses starting three decades ago. These authors questioned whether economic theories make truth claims about reality or merely describe perceptions. They asked if every economic theory must be empirically verifiable to hold validity. The debate centers on whether economic predictions can match the reliability of natural sciences. Some philosophers argue that economics cannot state laws in the same way physics does. Bruce J. Caldwell explored Beyond Positivism: Economic Methodology in the Twentieth Century to address these methodological divides. Vernon L. Smith later contributed Constructivist and Ecological Rationality in Economics to the American Economic Review in 2003. This research examined experimental economics as a tool for validating theoretical models. Francesco Guala wrote The Methodology of Experimental Economics in 2005 to further explore these empirical verification methods.