At 11:24 AM 5/8/97 -0700, Jim Devine wrote:
>Awhile back, wojtek sokolowski said that it is better >> to analyse social
>institutions (e.g. how the production is being organised in the developing
>countries) rather than watching trends in economic aggregates which,
>paraphrasin Plato, are but shadows cast on the wall of a cave populated by
>economists.<<
>
>Sure, we're in a cave, unable to perceive exactly what's going on. But we
>have no direct knowledge of many if not most of the phenomena we try to
>understand (including the organization of production). We need all the help
>from studies of the shadows we can get. And if our theory (or what's really
>going on) predicts different shadows than actually occur?


Not that I want to push that metaphor too far, but...

For Plato, the solution of the cave condition was turning to the "light" of
ideas and ways from the "darkness" of the empirical data.  Putting Plato
back on his feet, I'd suggest moving away from the ideas back to empirical
reality.

Not long ago I had a brief exchange with an economist (of the conventional
variety) who quite disparagingly spoke of causal models used in social
sciences.   He also dismissed the entire European school of political and
historical economics as being to preoccupied with empircal contingencies.
He favoured "prediction" which, upon my questioning, turned out to be a
priori policy engineering: what we need to do to get y results.  The irony
of that position was that conventional economics is not known for its
predictive power, to say the least.

But it is also my impression that even among empirically oriented historical
economist too much emphasis is put on the abstractions which allows building
grand theoretical schemes (Mike Perelman nicely described it as the "law of
inflated claims") at the expense of what in social sciences is known as
medium range theory or even a thick description.  These refer to empirical
context specific models of limited generalizability -- such as Alfred
Chandler's study of the emergence of corporate capitalism in the US under
the provocative title "The Visible Hand," Beth Mintz and Michael Schwartz's
studies of interlocking directorates and corporate elites, or even
anthroplogy of corporate life such as now classic "Men and Women of the
Corporation" by Rosabeth Kanter, or "Moral Mazes" by Robert Jackall.  Being
heavily depenedent on empirical material gathered through direct observation
-- rather tha studying numbers that nowadays pass for "facts" -- these
studies tell us more about business trends, as practised by real human
agents, than we can possibly get from statistical abstractions.

In my view, focus on the behaviour of real human agents endowed with
material resources can be more fruitful than studying accounting
abstractions, or even aggregates like classes or systems of production.  In
my mind, a system of production is but a shorthand for a range of
behaviours, not a determinant of behaviour.  Hence my "feudalism" metaphor
-- pointing to the fact that both pre-modern landlords and post-modern
corporate manegers do (or may) behave in more or less same way under more or
less similar circumstances -- regardless of what mode of production we
classify them into.

But that touches an ancient and hitherto unsolved philosophical controversy
between realism and nominalism, where I decidedly take the nominalist side.

regards,

wojtek sokolowski 
institute for policy studies
johns hopkins university
baltimore, md 21218
[EMAIL PROTECTED]
voice: (410) 516-4056
fax:   (410) 516-8233


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