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The turn in economics and the turn in economic methodology

There is now considerable evidence that economics is undergoing significant change in which a collection of new research programs all at odds in important respects with standard neoclassical economics is increasingly dominating the economics research frontier (Davis 2006b). These new programs include game theory, evolutionary economics, behavioral economics, experimental economics, agent-based complexity economics and neuroeconomics. All raise new issues for economics, and contest longheld assumptions. Such a development, however, naturally raises questions about the nature and direction of economic methodology. Whereas economics investigates the economy, economic methodology investigates economics (as does the history of economics). Thus a significant re-direction of economics suggests there may be a need for an associated re-direction in the focus and concerns of economic methodology. Of course change in the economics research frontier per se does not hold any special implications for economic methodology, since change in any field’s research frontier is always ongoing. Indeed even dramatic change in a field’s research frontier need not have any special implications for its philosophy of science. The current change in economics, however, has one remarkable characteristic: all the new research programs in economics have their origins in other sciences. Thus whereas economic methodology – as befits its name – has essentially only had economics as its province in the past, it now may need to have as its new domain of responsibility not science in general (then it would be indistinguishable from the philosophy of science), but economics-within-science. In this regard, economic methodology as a field comes relatively well prepared, since its own origins and resources as the philosophy of science for economics lie in large degree outside economics in the history and philosophy of science. From the logical