The Nature of Economics (5)


The Nature of Economics (5)
We see here a good example for the fact that the values researchers possess affect their choice of the topic and method of research generating bias in ‘scientific works.’　Researchers who want to support individualism do not analyze firms or households seriously. They simply introduce exogenously given production functions and utility functions.
Economists tend to ignore or distort social aspects that are inconvenient to build models with conclusions they like. It is really hard to establish social sciences that are value-free. Researchers need to recognize this.
On the other hand, a unified theoretical model may be formed to explain the cultural difference mentioned in the example given in the above third reason. It may be done by introducing a measure of the degree of cooperativeness as an exogenous variable. In such a model different types of equilibrium may arise for different values of the measure.
If we can endogenize the variable for that measure, we may be able to build a model for the most efficient level of cooperation. This endogenization involves inculcating values with costs. Such a model will be value-free in a sense. Similarly, we may be able to build value-free models for other values, though I need to add that it may not be easy to do so.
Therefore, it may not be impossible to establish a value-free social science which suggests the objective truth about what values human beings should pursue and how they should behave, though it is still probable that a value-free model has multiple efficient equilibria. It is certain that existing religions have influenced economic theory, but the above consideration implies that value-free economics creates a new ‘religion’ which teaches true values to pursue and makes all people happy.

Comments and questions are welcome.
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