The Cambridge Controversies in Capital Theory (Routledge Studies in the History of Economics)

This book explains the debate over the Cambridge controversies of the 1960s and 1970s. In a compelling and comprehensive argument, Birner discusses the main contributions to the controversy in a series of case studies. He gradually develops a methodological model of idealizations that explains both the progress of the debate and the historical ironies surrounding it. A Controversy In Capital Theory Dominated Economics In The 1960s And 1970s. Economists Based In Cambridge, England Detected Flaws In The Production Model Of Neoclassical Economics, Associated With Cambridge, America. This Debate Established That The Aggregate Measure K For Capital Could Not Be Used Except In Very Special Cases Despite Its Still Common Usage In Real Business Cycle Theory Today. The Cambridge Controversies In Capital Theory Discusses The Main Contributions To The Controversy In A Series Of Case Studies. It Gradually Develops A Methodological Model Of Idealizations That Explains Both The Process Of The Debate And The Historical Ironies Surrounding It, Revealing That The Surrounding Confusion Was Due To The Internal Dynamics Of The Debate Rather Than To Ideological Differences. Economists Were Mainly Engaged In Attempts To Solve Local Problems, Often Of A Highly Technical Nature. This, Plus The Use Of Mathematics, Led Them To Confuse Different Kinds Of Idealizations And To Drift Away From The Global Problems That Were At Stake. The Main Methodological Result Is A Model Describing The Development Of Theories By A Particular Type Of Generalization: Correspondence. The Direction In Which Theories Are Expanded Is Ruled By The Logical Presupposition Relationship Between The Core Of A Research Programme And Its Corresponding Models. This Framework Is Used To Assess Cartwright's Account Of Scientific Explanation, To Solve Friedman's Problem Of Assumptions And The Problem Of Methodological Pluralism. This Book Will Be Of Use To Academics And Advanced Students With An Interest In Theoretical Economics, History Of Economic Thought, Economic Methodology And The Philosophy Of Science.--jacket. The K That Wouldn't Go Away -- The Sleepwalker Effect -- Levels And Problems -- Idealizations And The Method Of Economics: Some Historical Background -- The Way Forward -- A Brief Exposition Of Reswitching And Capital Reversing -- The Model -- Characteristic Propositions Of Neoclassical Production Theory -- Perversities And Anomalies -- The Background Of The Debate: Some History -- Robinson's Research Programme -- Discontinuities In The Recent History Of Economic Thought -- Clouds In The Neoclassical Sky -- Robinson Defines The Problem -- Champernowne's Solution -- Robinson Returns To The Problem -- Taking Methodological Stock (i) -- The Polish Idealization Model -- Back To The Capital Theory Debate -- Correspondence And Factualization -- An Excursion Into The Philosophy Of Science -- Better Roughly Right Than Precisely Wrong? -- An Example Of Correspondence -- Triumph And Crisis Of The Neoclassical Production Model -- Neoclassical Triumph -- Crisis For The Neoclassical Model -- Taking Methodological Stock (ii) -- The Antipodean Idealization Model -- Aiming At A Complete Model Of Idealizations -- From Curiosum To Issue -- A Little Theorem With Big Consequences -- The Symposium -- Neoclassical Reactions -- Hicks Hunts The Snark -- Brown Pursues The Trail -- More Neoclassical Resources Are Mobilized -- Taking Methodological Stock (iii) -- Tactics And Moves -- Strategies And Likelihoods -- Aim And Pim Reconsidered -- Weapons -- The Role Of Mathematics -- Mathematics As A Neutral Instrument. Jack Birner. Includes Bibliographical References (p. [188]-201) And Index. Book Cover......Page 1 Title......Page 4 Contents......Page 5 List of illustrations......Page 14 Preface......Page 16 Acknowledgements......Page 18 Introduction......Page 20 A brief exposition of reswitching and capital reversing......Page 33 The background of the debate: some history......Page 41 Clouds in the neoclassical sky......Page 47 Taking methodological stock (I)......Page 66 Triumph and crisis of the neoclassical production model......Page 85 Taking methodological stock (II)......Page 103 From curiosum to issue......Page 112 Neoclassical reactions......Page 129 Taking methodological stock (III)......Page 148 The role of mathematics......Page 157 Taking methodological stock (IV)......Page 179 A final stock-taking......Page 186 Bibliography......Page 207 Index......Page 221 Economic Theory and Philosophy Book Cover 1 Title 4 Contents 5 List of illustrations 14 Preface 16 Acknowledgements 18 Introduction 20 A brief exposition of reswitching and capital reversing 33 The background of the debate: some history 41 Clouds in the neoclassical sky 47 Taking methodological stock (I) 66 Triumph and crisis of the neoclassical production model 85 Taking methodological stock (II) 103 From curiosum to issue 112 Neoclassical reactions 129 Taking methodological stock (III) 148 The role of mathematics 157 Taking methodological stock (IV) 179 A final stock-taking 186 Bibliography 207 Index 221 Hindsight, 'that most important of all the instruments of the historian' (Finley 1977: 104-5), enables us to show in a few paragraphs what took economists, some of them the best of the profession, years to discover. This book examines the legacy of the capital switching debate of the early 1960's and the enormous impact it has had on economic theory.