L2: Flaws of LP
Flaws of the Logical Positivist Methodology Used in Economics (VIDEO LECTURE)
Also, the paper Methodological Mistakes and Econometric Consequences explains how logical positivism has led to a deeply flawed methodology for Econometric
Background for the lecture is provided in the following paper:
Asad Zaman
Pakistan Institute of Development Economics
December 30, 2013
International Journal of Economics, Management and Accounting, Vol 21, No. 2, pp1-18. published by International Islamic University of Malaysia
Abstract:
We provide a detailed discussion of current methodology of economics and its emergence from secular roots in Europe. The foundational principles of this methodology, which is based on logical positivism, are in conflict with Islam. We then sketch some alternative methodologies which would be more suitable for Islamic economics.
We first describe how logical positivism emerged as the dominant philosophy of science, and how it was adopted into the foundations of economics. We then show that the current economic methodology is based on logical positivism. This philosophy is anti-Islamic, and therefore cannot be used to construct Islamic Economics. There are two main points of opposition. Logical Positivism rejects the unseen, while Islam requires faith in the unseen. Logical Positivism rejects morality as unscientific, while morality is a central part of Islamic teachings. This means that a methodology for Islamic economics must be radically different from that currently in use in conventional economic theory. Some essential elements of an alternative methodology are sketched.
Number of Pages in PDF File: 24
This paper is even more radical -- it explains why the scientific methodology cannot be applied to economics
Asad Zaman
Pakistan Institute of Development Economics
May 1, 2015
Forthcoming, International Journal for Pluralism in Economics Education
Abstract:
Our goal is to show that production of knowledge requires different approaches in different areas. In particular, radically different methodologies are suitable for mathematics, science, and humanities. Mathematics requires an axiomatic and deductive approach, while science requires an inductive and empirical approach. Historical events in Europe led to a conflict between science and religion, and a consequent attempt to use science to replace religion. The attempt to prove that science leads to certainty led to the mistaken understanding that scientific methodology is mathematical. The assumption that science is the only valid body of knowledge led to the mistaken attempt to apply this wrong understanding of scientific methodology to the social sciences. These two mistakes have crippled the development of our understanding of human beings and societies. The failure to understand the basic realities of human experience has led to many disasters, and needs to be rectified by correcting this double mistake.
Number of Pages in PDF File: 19