Hausman Daniel M. The Inexact and Separate Science of Economics

2nd edition. — Cambridge University Press, 2023. — 552 p. — ISBN 978-1-009-32029-0.Is economics a science? What distinguishes it from other sciences, both natural and social? Like many of the natural sciences, its theories are mathematically complex. Yet, like the social sciences, its 'laws' are largely everyday generalizations. Can such generalizations, which are far from universal truths, constitute a science? Does economics have a distinctive method? The first edition answered these and other questions about the scientific status of economics and its underlying methodology. In this fully updated new edition, Dan Hausman reflects on developments in both economics and the philosophy of economics over the last thirty years. It includes a new chapter on the methodology of macroeconomics, an updated discussion on the use of models, and new discussions causal inference and behavioural economics and their implications for theory appraisal. It is the perfect choice for a new generation of students studying the methodology of modern economics.Introduction
Introduction: Content, Structure, and Strategy of Mainstream Economics
Rationality, Preferences, and Utility Theory
Demand and Consumer Choice
The Theory of the Firm and General Equilibrium
Equilibrium Theory and Normative Economics
Equilibrium Theory and Macroeconomic Models
Models and Theories in Economics
The Structure and Strategy of Economics
Overlapping Generations
Theory Assessment
Inexactness in Economic Theory
Mill’s Deductive Method and the Assessment of Economic Hypotheses
Methodological Revolution
Karl Popper and Imre Lakatos
The Inexact Deductive Method
Casting off Dogmatism
Conclusion
Economic Methodology