Ricardo F. Crespo

‘Practical comparability’ and ends in Economics

This paper endeavours to summarize a variety of arguments for a reconsideration of ends in Economics. The logical structure of the rationality of ends (practical rationality) differs from the one of means (instrumental rationality). The paper sets out to explain the differences between both rationalities and some of the implications of incorporating this new emphasis on ends, given that Economics adopts the means rationality. The emergence of the topics of incommensurability and incomparability of ends is presented and a possible way to tackle it is suggested. Finally, some implications for Economics are drawn. This article emphasizes the importance of incorporating practical rationality into economic analysis. The arguments of the paper are built on Aristotelian grounds.

Would we have had this crisis if women had been running the financial sector

The two main ethical approaches, utilitarianism and deontology, have not been able to prevent some of the behaviours underlying the financial crisis. A third ethics, the ethics of care, might have been more effective than the other two in preventing the last financial crisis. The ethics of care is a feminist ethical theory concerned with relationships. It can be applied to a wide variety of relationships and has been tested in experimental settings, suggesting that women tend to behave more in ways that can be understood in terms of relationships, whereas men tend to behave more in terms of rules. Using these ethical theories, we analyse the crisis pointing at what are its causal behavioural attitudes and institutions.

Abduction in economics: a conceptual framework and its model

We discuss in this paper the scope of abduction in Economics. The literature on this type of inference shows that it can be interpreted in different ways, according to the role and nature of its outcome. We present a formal model that allows to capture these various meanings in different economic contexts.

Abducing the crisis

Macroeconomic crises are events marked by “broken promises” that shatter the expectations that many agents had entertained about their economic prospects and wealth positions. Crises lead to reappraisals of the views of the world upon which agents had based their expectations, plans and decisions, and to a reconsideration of theories and models on the part of analysts. A crisis triggers widespread efforts of abduction in search of new hypothesis and explanations. In this paper we will explore, in particular, the abductions that analysts may apply after a crisis and see how they reveal the prevalence of “wrong” abductions at the onset of the crisis. In order to carry out this exercise, we study the general role of abduction in economic analysis, both theoretical and practical. Economic theory generally proceeds by constructing models, that is, mental schemes based on mental experiments. They are often written in mathematical language but, apart from their formal expression, they use metaphors, analogies and pieces of intuition to motivate their assumptions and to give support to their conclusions. We try to capture all these elements in a formal scheme and apply the ensuing model of abduction to the analysis of macroeconomic crises.

The Increasing Role of Practical Reason in the Human Development Reports

This paper will argue for the need to reinsert practical reason into economics. It will first define, classify, and characterize practical reason. Second, it will show how it applies to Economics (Section 3). Then, it will note the presence of this use of reason in the construction of the United Nations Development Programs (UNDP) Human Development Index (Section 4). Finally, the paper will maintain that the UNDP is increasingly making use of this form of reason (Section 5).

Two Conceptions of Economics

As Ronald Coase points out, there are two kinds of conceptions of economics: first, the conception that emphasizes the study of specific kinds of human activities; and, second, the conception that makes economics the study of a specific approach to all human choices. The paper first shortly reviews the two conceptions. Then, it links them to specific conceptions about rationality. An analysis of the terms involved in the discussion shows which conception of economics corresponds most to its ordinary language meaning. The paper then analyzes and develops Coases argument for the first and against the second conception, explores the limits of an integration of the two views and assigns them specific roles.

Aristotelian Hylomorphism: A Framework for Non-physicalist Philosophers About Philosophy of Mind

The results of a recent survey on the philosophical views of contemporary, mainly Anglo-Saxon professional philosophers have shown that a supposed predominance of physicalist reductionist positions in the philosophy of neurosciences is far from unanimous. This paper explores one possible philosophical position rooting a non-physicalist reductionist conception of mind. It suggests and argues that a classical philosophical frame, Aristotelian hylomorphism, provides adequate non-reductionist answers that do not fall into dualisms. Finally, it offers the corresponding conclusions.

Capital and Entrepreneurship

While capital stems from the accumulation of the work on nature, entrepreneurship embodies a form of work. Therefore, the criteria for labor analyzed in the previous chapter apply to them. Just as salaries are not the ultimate objective of work, profits are not the ultimate goal of businesses—they are both conditions, not ends. This chapter finally elaborates on business ethics and corporate social responsibility.

Models and Measurements

Two key economic tools, models and measurements, are analyzed from a philosophical point of view, stressing their realism. Models should portray real causal relations, while it should be noted that measurements entail a simplification of reality, surveying quantitative dimensions and trying to quantify strictly qualitative dimensions.

THINKING ABOUT THE FINANCIAL AND ECONOMIC CRISIS: SOME BRIEF NOTES ON ITS CAUSES AND REMEDIES

An economic crisis is an unexpected phenomenon with strong consequences for nations, institutions and peoples wealth, habits, and behaviors. It departs from the ‘normal’ evolution of the affairs foreseen by economic theory. It makes the claim for new theoretical explanations. It surprises the economic agents (individuals, firms and governments) that try to ascertain what kind of phenomenon they are facing in order to decide the appropriate actions to undertake. It calls for revisions of theory, plans and expectations. Overall, a crisis calls for an explanation which clarifies its causes.