Boettke, Peter (2011): A behavioral approach to the political and economic inquiry into the nature and causes of the wealth of nations.
Download (120kB) | Preview
Deirdre McCloskey’s Bourgeois Dignity (2010) represents another breakthrough work in her career, and the second volume in a multi-volume work on the economic and intellectual history of western civilization. In a sense, the subtitle of the book explains well what this volume is all about--why economics can’t explain the modern world. An important modifier would be – modern economics can’t explain the modern world – because much of what McCloskey argues is the resurrection of an older argument that was associated with classical liberal political economists from Smith, Bastiat, Mises, Hayek and Friedman. Fundamentally, she reasserts the power of ideas to shape the world. McCloskey’s narrative is simple and compelling -- materialist stories (whether technological, genetic, or institutional) do not work; incentive based stories do not provide a complete picture of why some countries grew rich while others remained poor, let alone for the exact timing for the divergence in the wealth and poverty of nations with the Industrial Revolution in the 18th and 19th century. McCloskey proposes that incentive based explanations must reside within a broader narrative that addresses values and beliefs, as well as institutions, technologies, and material conditions. In doing so, McCloskey paves the way for a true behavioral approach to a political and economic inquiry into the nature and causes of the wealth of nations.
|Item Type:||MPRA Paper|
|Original Title:||A behavioral approach to the political and economic inquiry into the nature and causes of the wealth of nations|
|Keywords:||Economic History; Economic Development; Industrial Revolution|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O10 - General
N - Economic History > N0 - General > N00 - General
P - Economic Systems > P1 - Capitalist Systems > P10 - General
|Depositing User:||Peter Boettke|
|Date Deposited:||23 Jul 2011 00:12|
|Last Modified:||24 Feb 2016 03:32|
Albert, H. 1979. “The Economic Tradition: Economics as a Research Programme for the Theoretical Social Sciences,” in Karl Bruner, ed., Economics and Social Institutions. Boston: Kluwer Academic Publishers.
Aligica, P and Peter Boettke. 2009. Challenging the Institutional Analysis of Development: The Bloomington School. New York: Routledge.
Boettke, P. 2007. “Deirdre McCloskey’s The Bourgeois Virtues,” Economic Affairs (March).
Boettke, P. 2010a. “Is The Only Form of ‘Reasonable Regulation’ Self-Regulation?,” Public Choice, 143.
Boettke, P. 2010b. “Spiritual Capital and Economic Development: An Overview,” in Peter Berger and Gordon Redding, eds., The Hidden Form of Capital: Spiritual Influences in Societal Progress. New York: Anthem Press.
Boettke, P. and Christopher Coyne. 2005. “Methodological Individualism, Spontaneous Order and the Research Program of the Workshop in Political Theory and Policy Analysis,” Journal of Economic Behavior and Organization, 57.
Boettke, P., Christopher Coyne and Peter Leeson. 2010. “Contra-Whig History and the Problem of the Endogenous Past,” GMU Working Paper.
Boulding, K. 1971. “After Samuelson, Who Needs Adam Smith?,” History of Political Economy, 3 (2).
Friedman, M. and Rose Friedman. Free to Choose. New York: Harcourt Brace Javanovich.
Keynes, J. M. 1936. The General Theory of Employment, Interest and Money. New York: Harcourt Brace Jovanovich.
McCloskey, D. N. 2006. The Bourgeois Virtues. Chicago: University of Chicago Press.
McCloskey, D. N. 2010. Bourgeois Dignity. Chicago: University of Chicago Press.
Mises, L. 1949. Human Action: A Treatise on Economics. New Haven, CT: Yale University Press.
North, D. 1981. Structure and Change in Economic History. New York: Norton.
North, D. 2005. Understanding the Process of Economic Change. Princeton: Princeton University Press.
Smith, V. 2003. “Constructivist and Ecological Rationality in Economics,” American Economic Review, 93 (June).
Wagner, R. 2010. Mind, Society and Human Action. New York: Routledge.