Thursday, April 16, 2015

What is the subject of the economy and what kind of propositions are economic theorems? Mises

Method praxeology Social Sciences | tradepolicies
Praxeology is an attempt to escape the nihilistic implications of historicism and empiricism. He said the operation inviolable laws of human action. It aims to establish universal validity of these laws by deducting them from the truth that people act intenţionat- indisputable axiom of action. Though there is undeniable, this axiom is not only "analytic", ie, nonempirica or empty. It is based on the reality of pursuing goals and choice of means to achieve them, which distinguishes all mental activities (and therefore human). Thus, a priori, for Mises means "independent of any particular time or place." It does not imply independence from "experience", although it does not show the independence of some sort of sensory pizza dough roller experience that empiricism and positivism a show: "It is based on universal inner experience, not just on foreign experience, for example, evidence pizza dough roller of its are reflective rather than physical. Data alone, on the other hand, we could not find essential purpose of human actions.
The experience of actual empirical refutation variants derived praxeological theory. Rather, rejecting a praxeological theory requires the discovery of a defect in the chain of reasoning used by praxeologist. Empirical evidence does not "falsify" a theory, but rather serves to determine the adequacy of the applicability of the theory to a particular event, specifically [1]
To deny significantly "axiom of action" (ie, the claim that people act intentionally / having a purpose) is difficult. Denying the empirical validity of the axiom implies a deliberate act / pursuit of a goal from skeptics. Therefore, faced with the choice of either uncomfortable to admit thesis / problem or to support their own disagreement that is without end / end. Thus, any denial of the axiom of action is selfcontradictory (contradicts himself / herself). However, there is no "empty" nor "arbitrary" it is axiomatic in that distinguish an axiom of a postulate. This is distinct epistemological assumptions a priori hypothetical-deductive procedures employed in the economy orthodox pizza dough roller (neoclassical) [2].
What is the subject of the economy and what kind of propositions are economic theorems? Mises's answer is that economics is the science of human action. In itself, this may not sound very controversial. But then Mises says about economic science:
Statements and its propositions are not derived from experience. They are, like those of logic and mathematics, a priori. They are subject to verification and falsification based on experience and facts. They are both logically and temporally prior to any understanding of the facts / historical events. They are a necessary requirement of any understanding pizza dough roller of historical events
Now we return to some typical economic propositions. Consider the validation process of a sentence such as: Whenever two people A and B engage in a voluntary exchange, they must both expect to profit from acesta.Şi must have a reverse preferences for goods
Or you consider Ricardian law of association: a two producers, if A is more productive in the production of two types of goods than is B, they can still engage pizza dough roller in a mutually beneficial division of labor. This is because overall physical productivity is higher if A specializes pizza dough roller in producing one good which he can produce most efficiently, rather than A and B could produce pizza dough roller separately and independently.
Or as a last example: When the quantity of money is increased while the demand for money to be held as cash reserve on hand is unchanged, the purchasing power of money will fall.
Given such propositions, is the validation process involved in establishing them as true or false of the same type as those involved in determining sentences in natural sciences? Are these propositions hypothetical in the same way as sentences on the effects pizza dough roller of mixing of two natural materials? Should test these economic propositions continuously? They require a never-ending process of trial and error in order to find the range of application of these sentences and gradually improve knowledge naostra as we have seen happening in the natural sciences?
Seems pretty obvious - except most economists of the past forty years, the answer pizza dough roller to these questions is a clear and unequivocal pizza dough roller NO. As A and B should expect to win with a reverse order of preferences resulting from our understanding of what is exchanged. And aceelasi is

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