Methodological individualism
Encyclopedia
Methodological individualism is the theory that social phenomena can only be accurately explained by showing how they result from the intentional states that motivate the individual actors. The idea has been used to criticize historicism
, structural functionalism
, and the roles of social class
, gender
roles, or ethnicity as determinants of individual behavior. It is promoted by the Austrian School of economics
in interpreting economic developments.
Mark Blaug
, known for his work on the history of economic thought
, has criticized over-reliance on methodological individualism, "it is helpful to note what methodological individualism strictly interpreted ... would imply for economics. In effect, it would rule out all macroeconomic propositions that cannot be reduced to microeconomic ones, ... this amounts to saying goodbye to almost the whole of received macroeconomics. There must be something wrong with a methodological principle that has such devastating implications."
Historicism
Historicism is a mode of thinking that assigns a central and basic significance to a specific context, such as historical period, geographical place and local culture. As such it is in contrast to individualist theories of knowledges such as empiricism and rationalism, which neglect the role of...
, structural functionalism
Structural functionalism
Structural functionalism is a broad perspective in sociology and anthropology which sets out to interpret society as a structure with interrelated parts. Functionalism addresses society as a whole in terms of the function of its constituent elements; namely norms, customs, traditions and institutions...
, and the roles of social class
Social class
Social classes are economic or cultural arrangements of groups in society. Class is an essential object of analysis for sociologists, political scientists, economists, anthropologists and social historians. In the social sciences, social class is often discussed in terms of 'social stratification'...
, gender
Gender
Gender is a range of characteristics used to distinguish between males and females, particularly in the cases of men and women and the masculine and feminine attributes assigned to them. Depending on the context, the discriminating characteristics vary from sex to social role to gender identity...
roles, or ethnicity as determinants of individual behavior. It is promoted by the Austrian School of economics
Austrian School
The Austrian School of economics is a heterodox school of economic thought. It advocates methodological individualism in interpreting economic developments , the theory that money is non-neutral, the theory that the capital structure of economies consists of heterogeneous goods that have...
in interpreting economic developments.
Mark Blaug
Mark Blaug
Mark Blaug , was a British economist , who has covered a broad range of topics over his long career. In 1955 he received his PhD from Columbia University in New York under the supervision of George Stigler...
, known for his work on the history of economic thought
History of economic thought
The history of economic thought deals with different thinkers and theories in the subject that became political economy and economics from the ancient world to the present day...
, has criticized over-reliance on methodological individualism, "it is helpful to note what methodological individualism strictly interpreted ... would imply for economics. In effect, it would rule out all macroeconomic propositions that cannot be reduced to microeconomic ones, ... this amounts to saying goodbye to almost the whole of received macroeconomics. There must be something wrong with a methodological principle that has such devastating implications."
Further reading
- Kenneth J. ArrowKenneth ArrowKenneth Joseph Arrow is an American economist and joint winner of the Nobel Memorial Prize in Economics with John Hicks in 1972. To date, he is the youngest person to have received this award, at 51....
(1994), "Methodological Individualism and Social Knowledge," American Economic Review, 84(2), p p. 1-9. - Kaushik Basu (2008), "Methodological Individualism," The New Palgrave Dictionary of EconomicsThe New Palgrave Dictionary of EconomicsThe New Palgrave Dictionary of Economics , 2nd Edition, is an eight-volume reference work, edited by Steven N. Durlauf and Lawrence E. Blume. It contains 5.8 million words and spans 7,680 pages with 1,872 articles. Included are 1057 new articles and, from earlier, 80 essays that are designated as...
, 2nd Edition. Abstract. - Brian Epstein (2009), "Ontological Individualism Reconsidered," Synthese, 166(1), pp. 187–213.
- Friedrich A. Hayek (1948), Individualism and Economic OrderIndividualism and Economic OrderIndividualism and Economic Order is a book written by Friedrich Hayek . It is a collection of essays originally published between the 1930s and 40s, discussing topics ranging from moral philosophy to the methods of the social sciences and economic theory to contrast free markets with planned...
. - Friedrich A. Hayek (1952), The Counter-Revolution of Science: Studies in the Abuse of Reason.
- Joseph HeathJoseph HeathJoseph Heath is a philosophy professor at the University of Toronto. He also teaches at the School of Public Policy and Governance. He received his BA from McGill University, where his teachers included Charles Taylor, and his MA and PhD degrees are from Northwestern University, where he studied...
(2005), "Methodological Individualism", Stanford Encyclopedia of Philosophy, Edward N. ZaltaEdward N. ZaltaEdward N. Zalta is a Senior research scholar at the Center for the Study of Language and Information. He received his Ph.D. in philosophy from the University of Massachusetts - Amherst in 1980. Zalta has taught courses at Stanford University, Rice University, the University of Salzburg, and the...
(ed.), Eprint. - Geoffrey HodgsonGeoffrey HodgsonGeoffrey M. Hodgson is a Research Professor of Business Studies in the University of Hertfordshire, and also the editor-in-chief of the Journal of Institutional Economics.Prof...
, (2007) "Meanings of Methodological Individualism", Journal of Economic Methodology 14(2), June, pp. 211–26. - Harold Kincaid (2008), "individualism versus holism," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
- Steven Lukes (1968), "Methodological Individualism Reconsidered," British Journal of Sociology 19, pp. 119–29.
- Ron McClamrockRon McClamrockRonald Albert McClamrock, usually known as Ron McClamrock, is an associate professor of philosophy at the University at Albany, The State University of New York...
(1991), "Methodological Individualism Considered as a Constituive Principle of Scientific Inquiry", Philosophical Psychology. - Ludwig von MisesLudwig von MisesLudwig Heinrich Edler von Mises was an Austrian economist, philosopher, and classical liberal who had a significant influence on the modern Libertarian movement and the "Austrian School" of economic thought.-Biography:-Early life:...
, "The Principle of Methodological Individualism", chapt. 2 in Human ActionHuman ActionHuman Action: A Treatise on Economics is the magnum opus of the Austrian economist Ludwig von Mises. It presents a case for laissez-faire capitalism based on Mises' praxeology, or rational investigation of human decision-making. It rejects positivism within economics...
, Eprint. - Karl PopperKarl PopperSir Karl Raimund Popper, CH FRS FBA was an Austro-British philosopher and a professor at the London School of Economics...
(1945), The Open Society and Its EnemiesThe Open Society and Its EnemiesThe Open Society and Its Enemies is an influential two-volume work by Karl Popper written during World War II. Failing to find a publisher in the United States, it was first printed in London by Routledge in 1945...
. - Karl Popper (1957), The Poverty of Historicism (earlier published as articles in the journal "Economica").
- Joseph SchumpeterJoseph SchumpeterJoseph Alois Schumpeter was an Austrian-Hungarian-American economist and political scientist. He popularized the term "creative destruction" in economics.-Life:...
(1908), Das Wesen und der Hauptinhalt der theoretischen Nationalökonomie (München und Leipzig: Duncker und Humblot). - Joseph Schumpeter (1909), "On the Concept of Social Value", Quarterly Journal of Economics, 23(2), February, pp. 213–32.
- Lars Udéhn (2001), Methodological Individualism: Background, History and Meaning (London and New York: Routledge).
- Lars Udéhn (2002), "The Changing Face of Methodological Individualism", Annual Review of Sociology, 28, pp. 479–507.