Philosophy of economic sciences and application of micro and macroeconomics

Philosophy of economic sciences and application of micro and macroeconomics

  • Study programme and level:The joint doctoral study programme Governance and Economics in the Public Sector (third cycle)
  • 1st year
  • 10 ECTS
  • Course type: Core course
  • Lectures: 30
  • Seminar: 30
  • Other forms of study: 30
  • Individual work: 210
  • Lecturer: Dragomir Sundać, PhD

1. Objectives and competences

Acquire basic knowledge about the philosophy of economy: the categorial apparatus, paradigms and basic principles of functioning of economic systems, including the implementation of economic philosophy in business economics

2. Content (Syllabus outline)

Classic discussion:

  • The definition and method of the Philosophy of Economy and Political Economy (Petty-Smith-Ricardo vs John Stuart Mill);
  • Objectivity and understanding in the Economy (Max Weber);
  • The nature and significance of Economic Science (Lionel Robbins);
  • Economy and human activity (Knight Frank);
  • Philosophical foundations of the Economy (Karl Marx);
  • The limitations of marginal utility (Thorstein Veblen);

Positivist and Popperian views:

  • The methodology of positive Economics (Milton Friedman);
  • Verification and approximations (Herbert Simon);
  • Purposefulness of the positivistic approach (Daniel M. Hausman);
  • Popper and Lakatos in economic methodology (D. Wade Hands);

Ideology and Normative Economics:

  • Science and Ideology (Joseph Schumpeter);
  • Postulates for welfare in economics and interpersonal comparisons of utility (Nicholas Kaldor);
  • Philosophical foundations of mainstream normative economics (Daniel M. Hausman and Michael S. McPherson);
  • Controversies of "cost-benefit" analysis (Robert Frank);
  • Capability and well-being (Amartya Sen);

The branches and schools of Economics and their methodological problems:

  • Econometrics as observation: the Lucas critique and the nature of econometric inference (Kevin Hoover);
  • The importance of microeconomic foundations of macroeconomics (Kevin Hoover);
  • Economics in the laboratory (Vernon Smith);
  • Neuroeconomics: use of neuroscience for financial forecasting (Colin F. Camerer);
  • The market as a creative process (James M. Buchanan and Viktor J. Vanberg);
  • The essence of institutional economics (Geoffrey Hodgson);

New directions in economic methodology:

  • Rhetoric of Economics (Deirdre McCloskey);
  • Realism (narrow Maki);
  • Realism and Economic Methodology (Tony Lawson);
  • Feminism and Economics (Julie Nelson);
  • Credibility in the Economy: the status of theoretical models in Economics (Robert Sugden).
  • The concept and philosophy of the so-called New Economy

3.  Readings

  • Hausman, D.M. (ur.): The Philosophy of Economics: An Anthology, 3. izdanje, Cambridge University  Press, Cambridge, 2007.
  • Rupnik, V., Sundać, D.: Dominacija kapitala; klopka čovječanstvu, IBCC, Rijeka, 2005.
  • Pulić, A., Sundać, D.: Intelektualni kapital - ključni resurs 21. stoljeća, IBCC, Rijeka, 2001.

4. Intended learning outcomes

Develop competency in order to a PhD student to acquire: the ability of philosophical understanding of economic theory and its applications in business processes, especially from the standpoint of the Knowledge Economy and globalzation proces…………….

5. Learning and teaching methods

  • Lectures and interactive relationship with students
  • Seminars, where each topic is treated with the active participation of all
  • Analysis of examples: theory and practice
  • Individual work from the perspective of scientific disciplines, from the field of student's doctoral thesis.

6. Assessment

Based on the knowledge acquired from lectures and 1-3 books,  Student writes a clitical work which is related to scientific field and topic of his doctoral (PhD) dissertation.
Discussion with the Professor on written critical work.
Active participation in classes is also assessed.