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real-world economics review
 
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Issue no. 47, 3 October 2008: 
 
What would a scientific economics look like? 
Peter Dorman
Sciences are loosely characterized by an agenda to describe the mechanisms by 
which observable outcomes are brought about and the privileging of propositions 
that have been demonstrated to have negligible risk of Type I error. Economics, 
despite its pretensions, does neither of these and should not be regarded as scientific
 in its current form. Its subject matter, however, is no more recalcitrant to scientific
  procedures than that of many other fields, like geology and biology. The benefit of
   bringing economics into greater conformity with other sciences in its content and
    method would be twofold: we would be spared the embarrassment of unfounded dogma,
     and over time economics could assemble an ever larger body of knowledge capable
      of being accepted at a high level of confidence. A scientific economics would
       take Type I error far more seriously, would study mechanisms rather than a
        succession of states, would be more experimental and would attach greater
         value to primary data collection.
  
 
Sen’s economic philosophy:
The revival of economics as a moral science 
L. A. Duhs
  
 
New thinking on poverty 
Paul Shaffer
  
 
The financial crisis
  
How far could the US dollar fall? 
Jacques Sapir
  
What’s in a number? The importance of LIBOR 
Donald MacKenzie
  
Progressive conditions for a bailout 
Dean Baker
  
 
Comment 
- Editor’s note
The paper by Helen Johns and Paul Ormerod, “The unhappy thing about happiness economics“, 
that appeared in the last issue of this journal has attracted an uncommonly large number of
 readers. In addition to downloads of the whole issue, Johns and Ormerod’s paper has to date 
 been downloaded over 12,000 times, more than twice the average rate. Given this strength of 
 interest and the paper’s strong and consequential thesis, a dozen leading practitioners of 
 happiness economics have been approached, offering them a chance to reply. So far none have
  ventured forth. If there is any economist out there who feels capable of rebutting all or
   part of Johns and Ormerod’s arguments, then a space awaits them in this journal.  
   
“A XXI-century alternative to XX-century peer review” by Grazia Ietto-Gillies  in issue no. 45. 
Comments: Donald W Braben, Roland Fox, Stevan Harnad,
Marco Gillies, Paul Ormerod, Menakhem Ben-Yami 
Rejoinder: Grazia Ietto-Gillies  
  
 
Regarding articles by Margaret Legum and Jim Stanford 
Economic freedom is negative liberty 
Joshua C. Hall, Robert A. Lawson and Will Luther
Two recent articles in this journal by Jim Stanford and the late Margaret Legum 
strongly condemn the measurements of economic freedom published by the Fraser 
Institute and the Heritage Foundation.1 As researchers associated with the Frasier 
Institute’s Economic Freedom of the World (EFW) index we feel that it is necessary to
 address some issues raised by their commentaries as they relate to the EFW index.
 Both Legum and Stanford believe that the problem with these indexes is that they 
are pro-business indexes that ignore normal, regular people. In the critical words
 of Stanford, the indexes say “what is good for investors and employers, is good for everyone.”
  
 
Opinion
  
Rejoinder: “Economic freedom”
 
Jim Stanford
In their response to critiques of their measurement of economic “freedom”, 
Joshua C. Hall, Robert Lawson, and Will Luther have done us a favour in 
laying bare the extreme libertarian philosophies which underpin their work.
 The Economic Freedom of the World project (an international initiative 
coordinated by Canada’s right-wing Fraser Institute) attempts to quantify a
 highly neoclassical conception of freedom: namely, the extent to which economic
  agents (investors, entrepreneurs, workers, and consumers) are free from 
  interference or constraint from government regulations, taxes, collective 
  bargaining, or other intrusions. As Hall et al. explain, this conception 
  is a nominally neutral conception of “negative liberty”: that is, it measures
   the extent to which individual agents are not interfered with. But it captures
    no positive rights which individuals may claim in the economic sphere – such as 
    the right to employment, the right to a basic standard of living, or the right
     to organize a union and bargain collectively.
  
 
If it ain’t broke, don’t fix it… Post autism and political correctness 
Benjamin H. Mitra-Kahn
  
 
When the going gets tough, economists go very quiet 
Simon Jenkins
  
 
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