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The question of whether Economics is a science has no straightforward answer simply because the question "what is Science" has no straightforward answer either. This question is referred to as the "demarcation problem" (related to "boundary work/ problem") in the Philosophy of Science and is still an unsettled question in the ...


8

If in equilibrium, a player "chooses a mixed strategy" that plays $H$ and $T$ with positive probability, $H$, and $T$ must be both optimal choices. It is a standard result that for a (subjective or objective) expected utility maximizer, randomizing can only be optimal if it is over pure optimal choices. This is a direct consequence of expected ...


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There is actually no clear cut consensus on where Economics belongs (although it is fair to say most would likely put it into category of social science). Some authors consider it to be science, some social science, some even moral science, and some even argue it should have its own category. A good paper that tries to answer this question for economics is ...


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TL;DR: Economics is not politics by definition. Whether economics is science depends on what view on demarcation of science you adopt but most of the economics will pass virtually any commonly used criteria in philosophy of science and there is no doubt it passes the mainstream demarcations such as the Popperian one. Economics is: The most common definition ...


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Post-Keynesian Post-Keynesianism (PK) is based on the criticism of the so called "Keynesianism", which according to PKs is not loyal to core Keynes ideas. As such, this school of thought aims to be called the "true" Keynesians. The criticism starts with the workhorse model of Keynesianism, the IS-LM model, developed by Hick in a 1937's article, right after ...


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Material capital is any durable good that is used as a factor of production and, by virtue of being durable, it is gradually consumed in production over a maximum possible duration of a length that is determined by (i) how much a unit of capital is used and (ii) the depreciation rate of a unit of capital. Capital forms by labor and savings (which is in ...


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The real-life question is "how do you persuade people to use mixed strategies"? To stick with your example, Consider a person that has to make a binary choice $(H, T)$, and, after contemplation, they conclude that the optimal strategy is the mixed strategy $(2/3, 1/3)$. I have never know of anyone putting two red and one blue ball in a vase and ...


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When you say that a policy's objective is to "maximize well-being", presumably you mean "maximize collective well-being". And presumably, by "collective" well-being, you mean some sort of aggregate or average of the individual well-beings of all members of society. So your question breaks into two parts: What is the right measure of individual well-being? ...


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In an experimental setting, how could you prevent the players from adopting a mixed strategy? I don't think you can. Restricting access to mixed strategies is essentially banning the use of any private randomization devices. But since there are various ways to perform mental coin-flips, not all of which are readily observable, it would be prohibitively ...


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It appears that you equate "science = academic field" which is certainly not the case. Also, it may be true that the word "science" was customarily associated with what we nowadays call "hard science", which exactly proves that the use of the word "science" has been generalized. Hard and soft, humanities and social sciences, they are all "scientific ...


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The Chicago School The Chicago School is a sub-school of the broader neoclassical school of economic thought, named for the significant influence of prominent scholars in Chicago. According to Wikipedia "The term was coined in the 1950s to refer to economists teaching in the Economics Department at the University of Chicago, and closely related academic ...


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There is one theoretically sound methodology to do what you are asking. When you have multiple models to compare, the only choice is Bayesian model selection and Bayesian model averaging. Bayesian methods have several properties that you would want. Any statistic created is intrinsically "admissible," and "coherent." The disadvantage, which does not ...


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Complexity/Evolutionary Economics This approach to economics, widely inspired in Evolutionary Biology, is a direct criticism to Neoclassical Economics, as its key postulates indicate. These are: Economics are open, dynamic, non-linear systems far from equilibrium Agents have realistic rationality, as opposed to perfect rationality. This is, they use ...


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The use and abuse of economics by politicians does not invalidate economics as a science. Full stop. Consider politicians (including In Russia, China, Europe) who play global politics by promoting, gifting and politicizing their vaccines. Or politicians that politicize mask wearing. Or politicians that politicize climate change to support the fossil fuel ...


2

From a Marxist perspective, capital is a social relation. Essentially, it is money that begets more money. As such, it only becomes more or less synonim with "means of production" once it takes over production, ie, once society becomes capitalist. In a feudal society, tools and land are not capital, albeit being means of production. The money of money ...


2

Neoclassical Economics It is not-controversial to say that Neoclassical Economics is the dominant strand of economics within mainstream economics, not only in academia but also in teaching. Regarding this school of thought, this article states: It describes the synthesis of the subjective and objective theory of value in a diagram of supply and demand, ...


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First, quoting from wikipedia/Mariam-webster Fungibility is the property of a good or a commodity whose individual units are capable of mutual substitution (i.e., interchangeability). That is, it is the property of essences or goods which are "capable of being substituted in place of one another". Let's move now to McCloskey's example: Ex post, It ...


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In economics and finance, fungibility means that we cannot distinguish between instruments. For example, we normally do not care whether we have one \$20 bill or two \$10 bills. McCloskey's example is poor. In one sense, it is correct: when points are scored do not matter in the final tally. However, it is psychologically incorrect when applied to sports. ...


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Economics is a science and hence the objective of economics is the same as of any science just applied to the specific discipline. Thus this objective depends on how you want to define what an objective of science is and on the demarcation of what economics is. On the objective of science: There are many different approaches to the philosophy of science and ...


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Your question is a little bit unclear. But still, if you wish to delve into the philosophical side of economical topics/question/phenomena, you can check the Stanford Encyclopaedia of Philosophy's article on Philosophy of economics. It might be a good place to start and refine what you are looking for.


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Economics is a science still in growth! Try to sit back and forget about the "meaning" thing for a while. After you took enough courses and immersed into enough literature, then you will have your opinion about economics, which will answer your question. Don't be abducted by the premature thought or some false idea of justification. A similar situation is ...


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Economics is a social science. The meaning lays in the word itself: οἰκονομία (oikonomía, “management of a household, administration”). In economic science is a houshold the freely choosen frame of a given research. It can be a single individual or the whole globe. Mostly it is a firm or the economy of an country. The goal of the management is to adapt the ...


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There are several problems with the idea: My problem is that although logically both idea looks the same (i.e. good getting cheaper with a constant level of income = income growth outpaces prize increase ), I find the latter method mathematically more complicated. Here you are confusing economics as a science with economic policy. Yes in a science we ...


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However, I encountered an opinion that since all preferences derive from underlaying values they are all strictly normative and considering them positive even in the strict sense of revealed preference is a fallacy. There's a logical inconsistency here which might help see why it's not a good way of looking at the issue. What is the key element that is ...


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This is due to Fractional Reserve System. In fractional reserve system when you make a deposit at a bank bank is required to keep a bit of it as a deposit and it is allowed to lend out the rest. So for example if Central Bank makes an initial money injection into economy. Let’s say 100€ (and it does not really matter whether it’s by helicopter drop or ...


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Here are a few that come to mind. Bargaining: How are bargaining outcomes determined? Market failure: Why do markets fail, and what are the welfare consequences of their failures? Suppose the answers include moral hazard, limited commitment, adverse selection, and externalities. Then, how can governments or private entities counteract these problems and ...


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