Three arguments for pluralism in economics

Abstract

For most mainstream economists, of course, there is only one way to do economics. It requires the construction of a model, collection of relevant data and subsequent testing. The model itself must be consistent with the fundamental principle of methodological individualism: that is to say, it must be based on the assumption of optimising behaviour by rational agents. The tests must emjlloy the most advanced econometric techniques rather than or at least in addition to descriptive statistics. For the defenders of mainstream economics these simple rules are what make it a science, which is envied and increasingly imitated by the practitioners of less favoured disciplines in the areas of management and social studies (Lazear, 2000).