Ontology of Economics: Difference between revisions

From NCOR Wiki
Jump to navigationJump to search
(100 intermediate revisions by the same user not shown)
Line 1: Line 1:
'''PHI 637 (seminar, 3 credits). Registration number: [http://www.buffalo.edu/class-schedule?switch=showclass&semester=fall&division=GRAD&dept=PHI&regnum=]'''
'''PHI 637. Registration number: [https://www.buffalo.edu/cas/philosophy/grad-study/grad_courses/fallcourses_grad.html#title_1634450640_cop]'''


'''Time''': 1:00-3:50pm, Mondays, Fall Semester 2023
'''Time''': 1:00-3:50pm, selected Mondays, Fall Semester 2024. Begins September 23 in 141 Park Hall.
 
'''Mode''': Hybrid: Face-to-Face, Online Synchronous, and Online Asynchronous
 
'''Credit''': 2 credit hours


'''Room''': Park 141, UB North Campus  
'''Room''': Park 141, UB North Campus  


'''Instructors''': [http://ontology.buffalo.edu/smith/ Barry Smith] (Philosophy) and [https://www.philosophie.uzh.ch/en/seminar/people/research/politics_cheneval/martinelli.html Emanuele Martinelli] (Philosophy, University of Zurich)
'''Instructors''': [http://ontology.buffalo.edu/smith/ Barry Smith] (Philosophy), [https://www.philosophie.uzh.ch/en/seminar/people/research/politics_cheneval/martinelli.html Emanuele Martinelli] (Philosophy, University of Zurich)


'''Office hours''': BS: by appointment via [mailto:phismith@buffalo.edu email]; EM: by appointment via [mailto:emanuele.martinelli@uzh.ch email]
'''Office hours''': BS: by appointment via [mailto:phismith@buffalo.edu email]; EM: by appointment via [mailto:emanuele.martinelli@uzh.ch email]
Line 11: Line 15:
'''Course Description'''  
'''Course Description'''  


All slides and videos will be made available at [this link].
This course is a two-credit hour seminar, taught in hybrid mode. Students intending to take the course online should contact Dr Smith at phismith@buffalo.edu. To obtain three credit hours students can register for a supplementary tutorial with Dr Smith. Students with no background in philosophy are recommended to take the 1-credit-hour asynchronous course described [https://ncorwiki.buffalo.edu/index.php/Introduction_to_Philosophy_from_an_Ontological_Perspective here].
The goal of the course is to give the students conceptual tools to understand and evaluate critically the philosophical assumptions of different schools of thoughts in economics. Debates between different approaches in economics may be sometimes reduced to ontological debates on the nature of social entities, e.g. institutions and the market, with respect to individual economic actors. Hence, the course aims at introducing the core concepts that build up the world of economics and how different interpretations of such concepts can support different economic claims and systems.
 
The first part of the course introduces some useful topics in social ontology with an eye on economic applications: agency, complexity, information, collectivity. The second part of the course analyzes some themes underlying the works of the main contemporary economic school of thoughts, including classical and neoclassical economics, keynesian economics, institutional economics, Austrian economics, complexity economics, and marxist economics. Austrian economics will be given much relevance throughout the course because it is arguably the economic school of thought that makes the most open use of philosophical concepts in its theories. Part of the lectures will be devoted to the introduction of AI technology as a bearer of new possibilities and new understanding on the working of economic processes and society as a whole.
The goal of the course is to give the students conceptual tools to understand and evaluate critically the philosophical assumptions of different schools of thought in economics. Debates between different approaches in economics may be viewed in part as ontological debates as to the nature of social entities such as prices, markets, economic actors. Hence, the course aims at introducing the core categories that determine the world of economics and exploring how different interpretations of these categories can support different economic claims and systems.
 
Part One of the course introduces topics in social ontology with an eye on economic applications: agency, complexity, information, collectivity, speech acts, claims and obligations.  
 
Part Two analyzes themes underlying the works of the main contemporary economic schools of thought. Austrian economics will be given special prominence because it is arguably the economic school of thought that makes the most open use of philosophical categories in its theories.


=='''Recommended background reading''' ==
=='''Recommended background reading''' ==
W. Grassl, and B. Smith (eds.), 2010,  [https://buffalo.box.com/s/9qe3texjo9jwxctoodcu4v66jhrakt20 ''Austrian Economics: Historical and Philosophical Background''], pp. 1-36,
F. A. Hayek, 1945, [https://german.yale.edu/sites/default/files/hayek_-_the_use_of_knowledge_in_society.pdf "The Use of Knowledge in Society"]
G. M. Hodgson, 2007, [https://www.tandfonline.com/doi/abs/10.1080/13501780701394094 “Meanings of Methodological Individualism”]
C. List & P. Pettit, 2011, [https://academic.oup.com/book/3619?login=false "Group Agency: The Possibility, Design, and Status of Corporate Agents", Part I]
P. Törnberg, 2018, [https://doi.org/10.1080/00346764.2018.1480796 "Complex Realist Economics"]
B. Smith and J. Landgrebe, 2022, [https://buffalo.box.com/s/pkwxnosijir07tn5lpp0g2upw894r2yo "Models of Complex Systems"], especially pp. 157f.


== '''Recommended background video content''' ==
== '''Recommended background video content''' ==
 
[https://www.youtube.com/playlist?list=PLyngZgIl3WTgymPp_m7BPgBRCFZJ8uW7Y Goods and Services]
 
[https://www.youtube.com/watch?v=7-jAhwkeC7Q&list=PLyngZgIl3WTiijjT0n02R_ToQAIm1pqrQ&pp=gAQBiAQB Ontologies of Commerce, Deontic Ontologies]
 
== '''Schedule''' ==  
== '''Schedule''' ==  


== August 26: Introduction / General Overview (BS) ==
== September 23: Introduction ==
 
'Ontology' can be understood in two ways: 1. as a branch of philosophy that deals with the kinds and categories of entities and how they relate. 2: a more technical area which overlaps with computer science, and which is focused on the use of category systems in data and information systems in large organizations. The bulk of this course is devoted to ontology in the philosophical sense, but this introductory session focuses on technical uses of ontologies. As an introduction to this class we start with an overview of the background of Barry Smith's work in ontology in the study of Austrian philosophy and of Austrian economics. We then move to some examples designed to illustrate how the ontological approach can help us to understand issues in the applied ontology of space/place. 
 
[https://buffalo.box.com/v/Ontology-of-Economics-1 Slides]
 
[https://buffalo.box.com/v/Ontology-of-Economics-video1 Video]
 
== September 30: Introduction: Economic Agents and Agency ==
 
This class introduces the topic of 'agency' from the point of view of social ontology, with a focus on the different kinds of agents that populate the social world. This reflection on agency can make our understanding of core economic notions more sophisticated, including economic actors, markets, government interventions, firms. When reflecting on the assumptions of different economic models, philosophical considerations about society are a useful tool. Another very important conceptual distinction is that between 'collectivism' and 'individualism'. Moving from the various levels of this distinction, the class will examine the methodological division between microeconomics and macroeconomics under the lens of the individualist-collectivist spectrum that we find in the socio-ontological literature.
 
[https://buffalo.box.com/shared/static/opmoln0sm2p2kpc02rb2rcffuy3iy3yt.pptx Slides]
 
[https://buffalo.box.com/s/6ayawb5qfs4qyowj6xjinmrtdwhmsbje Video]
 
Supplementary [https://buffalo.box.com/s/79ubaysnyp865aqn2uuizmv2m8l3nkp4 Slides]
 
[https://www.argumenta.org/wp-content/uploads/2023/06/Argumenta-82-Emanuele-Martinelli-Toward-a-General-Model-of-Agency-1.pdf Publication]
 
== October 7: Market Equilibrium and Critical Perspectives ==
 
This class introduces classical and neoclassical economics. We will present the main proposals has advanced by the latter to overcome some core tenets of classical economics. This will include reflection on the assumptions of neoclassical economics, such as economic rationality, general equilibrium, and the invisible hand. We will then explore their deeper philosophical implications by comparing them with notions of social ontology. Different perspectives that try to move away from classical economics are presented, with a major focus on schools of economic though that have critized the core notion of economic equilibrium.
 
[https://buffalo.box.com/s/opmoln0sm2p2kpc02rb2rcffuy3iy3yt Slides]


== September 2: LABOR DAY (No class) ==
[https://buffalo.box.com/s/6ayawb5qfs4qyowj6xjinmrtdwhmsbje Video]


== September 9: Economic Agents and Agency ==
[http://fmwww.bc.edu/cef99/papers/somefun.pdf Paper Mirowski & Somefun]


This class introduces the concept of 'agency' from the point of view of social ontology, with a focus on the different kinds of agents that populate the social world, namely individual biological agents, collective agents, automated agents. The concept and its ramification are then understood in the context of the particular application the term has in economics, through notions such as economic actor, market, institutions, microeconomic/macroeconomic agent, aggregate supply/demand.
== October 14: FALL BREAK (No class) ==


== September 16: Complex Systems and Economic Information ==
== October 21: Economic Goods and Institutions  ==


This class introduces the concept of 'complexity' and its applications to the economic context. Complexity as a notion can be attributed a myriad of interpretation, of which a short overview will be given. However, the main notions of complexity that are useful in economics are 'computational complexity' and, above all, 'systemic complexity'. Reflecting on the latter, the class will highlight the features of complex systems that offer obstacles to modeling and manipulation, e.g. their evolutionary character or their dynamic phase space transitions. A notable application of this in economics is the multiplicity of kinds of economic information that inform economic decisions, both at the microeconomic and macroeconomic levels, and these will be presented by drawing a distinction on econometric data and economic local knowledge.
1. (BS) The distinction between goods and services. An application of BFO to the economic realm.


== September 23: Collectivism and Individualism ==
2. (EM) Property plays a pivotal role in any commercial economy. The class will discuss the nature and origin of property, discussing classical views like Hohfeld's and Locke's in comparison with the realist perspective of Reinach. Introducing an understanding of the goods at the core of property, the class will encounter Samuelson's classic notions of 'rivalry' and 'excludability' and the subsequent debate around public goods. These may be extended to draw a basic ontology of different kinds of economic goods, following the intuitions of Elinor Ostrom and Mancur Olson. Building an ontology of economic goods is important in the normative domain as well, as institutions can be understood as different systems of rules that are tailored to facilitate the social provision of different kinds of economic goods.


'Collectivism' and 'individualism' are crucial approaches to the social world that influence the construction of theories throughout the social sciences. The class will introduce three dimensions of the collectivist/individualist divide: ontological c./i., ethical c./i., methodological c./i. The focus will then be moved to ontological collectivism and individualism, and the class will explore some proposals in the socio-ontological literature along the individualist-collectivist sprectrum (e.g. Miller, Tuomela, Searle, F. Schmitt, Marx).
Part 1: BS on Goods and Services


== September 30: Kinds of Economic Goods and Kinds of Institutions ==
[https://buffalo.box.com/s/yhmakros7t8epydqsi069q47g35xzjve BS Slides]


Samuelson's classic concepts of 'rivalry' and 'excludability' and the subsequent debate around the definition of public goods may be extended to draw a basic ontology of different kinds of economic goods, following the intuitions of Elinor Ostrom on the matter. Moreover, the classic spectrum between goods and services can be stretched to further sophisticate our understanding of economic goods. Building an ontology of economic goods is important in the normative domain as well, as institutions can be understood as different systems of rules that are tailored to facilitate the social provision of different kinds of economic goods.
[https://www.youtube.com/watch?v=CZUmhg7vzRs Beyond the Goods-Services Continuum]


== October 7: FALL BREAK (No class) ==
[https://www.youtube.com/watch?v=9qrwWAISrC8 Ontology of Social Services]


== October 14: (Neo)Classical Economics: Individual Rationality and Social Equilibrium ==
Part 2: EM on Goods and Institutions


This class introduces the core themes of classical economics and their refinement in neoclassical economics since the work on general equilibrium models by Léon Walras. The core tenets of (neo)classical economics, such as economic rationality, utility maximization, and general equilibrium, are discussed in their deeper philosophical implications by comparing them with notions of social ontology previously introduced in the course.
[https://buffalo.box.com/s/brt2o2kegvxixhdagts5wcmp78m3jrw5 EM Slides]


== October 21: Collective Proactivity from Keynesian Economics to Institutional Economics  ==
[https://buffalo.box.com/v/Ontology-of-Economics-4 EM Video]


The class introduces the core features of Keynesian economics and institutional economics, reflecting on their initial assumptions. An important shared theme between the two attempts to treat the limits of (neo)classical economics is to overcome its reliance on methodological and ontological individualism. Both schools offer their own blends of collectivist and individualist intuitions, by trying to introduce active macroeconomic institutions, such as the government that manipulates aggregate demand or market configurations that influence individual decisions, in our ontology of economic actors.
 
[https://link.springer.com/content/pdf/10.1007/s10516-017-9351-5.pdf Paper on Reinach and Property]


== October 28: Austrian Economics 1 - Menger, Mises, and Apriorism ==
== October 28: Austrian Economics 1 - Menger, Mises, and Apriorism ==


The class introduces the philosophical presuppositions of the Austrian school of economics, and its program to promote an understanding of economics as a philosophy of human action, or praxeology. This interest begins in the works of the two founding fathers of the school, Carl Menger and Ludwig von Mises, and the course thus introduces the main innovation they proposed: apriorism, the praxeological approach, entrepreneurship as a feature of human action, the subjective theory of value, the re-establishment of methodological individualism. In particular this class will conclude by drawing the objections to neoclassical economics that Austrians make, by presenting the Austrian school's nuanced approach toward the quantitative mathematical modeling of the economy.
The class introduces the philosophical presuppositions of the Austrian school of economics, and its program to promote an understanding of economics as a philosophy of human action, or praxeology. This interest begins in the works of the two founding fathers of the school, Carl Menger and Ludwig von Mises, and the course thus introduces the main innovations they proposed: apriorism, the praxeological approach, the theory of exchange, the subjective theory of value, the re-establishment of methodological individualism.


== November 4: Austrian Economics 2 - Hayek and the Price System ==
[https://buffalo.box.com/v/Ontology-of-Economics-5 Slides]
 
[https://buffalo.box.com/v/Ontology-of-Economics-5-video Video]
 
[https://www.degruyter.com/document/doi/10.1515/jso-2015-0057/pdf?licenseType=open-access Paper Theory of Exchanges]
 
== November 4: Austrian Economics 2 - Hayek and the Price System ==
 
One of the core objections to neoclassical economics made by the representatives of the Austrian school is their nuanced approach toward quantitative mathematical models of the economy. Firstly, the class will introduce the central notion of 'need' in Menger's thought, as an alternative to the neoclassical notion of 'utility.' The course, further, moves to Hayek's understanding of social phenomena as spontaneous orders, and the ontological foundations of this perspective. This maps, in turn, to Hayek's understanding of the economy as a complex system, prompting the recent development of complexity economics.
 
[https://buffalo.box.com/v/Ontology-of-Economics-6 Slides]
 
[https://buffalo.box.com/v/Ontology-of-Economics-6 Video]
 
[https://cdn.mises.org/8_2_1_0.pdf Discussion on Hayek and Cultural Evolution]
 
[https://academic.oup.com/cje/article-abstract/44/5/1093/5897721?redirectedFrom=fulltext&login=false#no-access-message Paper on Needs and Desires in Carl Menger]
 
[https://pavroz.ru/files/hayekpretence.pdf Hayek's Nobel Prize Speech]


== November 11: Austrian Economics 3 - Schumpeter and Kirzner on Entrepreneurship and Creativity in Humans and Beyond ==
== November 11: Austrian Economics 3 - Schumpeter and Kirzner on Entrepreneurship and Creativity in Humans and Beyond ==


== November 18: Complexity Economics ==
The last core tenet of Austrian economics that the course finds philosophically important is entrepreneurship as the equilibrating force that drives the process of market equilibrium. The class will first put forward an understanding of the economic equilibrium as a process rather than a static state or goal, through an analysis of the price system in Hayek's and Kirzner's thought. The course will thus present the topic of entrepreneurship through the (sometimes conflicting) ideas of Joseph Schumpeter and Israel Kirzner. The focal point is that entrepreneurship is a fundamental notion in economics that is rarely investigated outside the Austrian school, and this has to do with the Austrian's recognition of the intrinsic complexity of the economy. Entrepreneurship can be further generalized as a feature of all action that has to do with creativity and proactivity, and this will allow to consider the hypothesis of designing AI entrepreneurs out of present-day technologies like stock market prediction systems, and so on.
 
[https://buffalo.box.com/v/Ontology-of-Economics-7 Slides]
 
[https://buffalo.box.com/v/Ontology-of-Economics7 Video]


== November 25: From Marxist Economics to Market Socialism ==  
== November 18: Market Socialism, AI, and Economic Planning ==


== December 2: AI and Economic Planning ==
The class will explore the 'calculation debate' sparked by Mises' and Hayek's objections to economic planning. The two main socialist replies will be introduced: the objectivity of economic value through the labor theory of value, and market socialism. Soon, the calculation debate has been flooded by proposals to harness the successes of AI technology for planning the economy. The class will thus present and discuss the most promising models that attempt to plan the economy through AI intervention, starting from Salvador Allende's CyberSyn project in Chile: the Lange-Lerner model, the Cockshott-Cottrell model, Nieto's model, and Saros' democratic economic planning model.
 
[https://link.springer.com/article/10.1007/s00146-024-02078-9 Publication]
 
[https://buffalo.box.com/v/Ontology-of-Economics8 Slides]
 
[https://buffalo.box.com/v/Ontology-of-Economics8 Video]
 
== November 25: Student Presentations ==
 
1:00pm Olivia Hobai: "Rationality, behavioral economics, and scientific realism"
 
1:30pm Giacomo de Colle: "The economic and material basis of the state"
 
2:00pm AI, Creativity, and Entrepreneurial Perception
 
[https://buffalo.zoom.us/j/96406930931 Zoom link]
 
[https://buffalo.box.com/v/Ontology-of-Creativity Slides (BS)]


== December 9: Student Presentations ==
== December 9: Student Presentations ==
1:00pm James Cordeiro, "Aspects of the Ontology of Stablecoins"
1:30pm Elena Milivinti, "Bridging Classical Economic Theories with Contemporary Challenges"
[https://buffalo.zoom.us/j/96406930931 Zoom link]


== '''Student Learning Outcomes''' ==
== '''Student Learning Outcomes''' ==
Line 75: Line 169:
! Assessment Method(s)
! Assessment Method(s)
|-
|-
| The student will acquire a knowledge of the philosophy of the social sciences in general and of economics in particular.   
| The student will acquire a knowledge of the philosophy of the social sciences in general and of economics in particular.   
| Lectures and class discussions
| Lectures and class discussions
| Review of reading matter and associated online content and participation in class discussions
| Review of reading matter and associated online content and participation in class discussions
Line 97: Line 191:
:[https://web.archive.org/web/20191209181112/https://jordanbpeterson.com/wp-content/uploads/2018/02/Essay_Writing_Guide.docx Jordan Peterson's Essay Writing Guide]
:[https://web.archive.org/web/20191209181112/https://jordanbpeterson.com/wp-content/uploads/2018/02/Essay_Writing_Guide.docx Jordan Peterson's Essay Writing Guide]
:[https://buffalo.box.com/s/xku6jc38cx7u1dgm5lteus5qbq7909i9 How to Use ChatGPT to write an essay]
:[https://buffalo.box.com/s/xku6jc38cx7u1dgm5lteus5qbq7909i9 How to Use ChatGPT to write an essay]
=='''Suggested Additional Reading'''==
W. B. Arthur, 2021, “Foundations of Complexity Economics”, [https://www.nature.com/articles/s42254-020-00273-3]
S. Bostaph, 2019, “Schumpeter vs Kirzner on Entrepreneurs”, [https://mises.org/wire/schumpeter-vs-kirzner-entrepreneurs]
P. Boettke & R. Candela, 2022, "On the Feasibility of Technosocialism", [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4219398]
S. R. Chant, 2007, "Unintentional Collective Action", [https://www.tandfonline.com/doi/full/10.1080/13869790701535246]
R. Crespo, 2022, "The Nature of the Economy", [https://link.springer.com/book/10.1007/978-3-031-02453-5]
A. Cottrell & P. Cockshott, 1993, "Calculation, Complexity and Planning: The Socialist Calculation Debate Once Again", [https://users.wfu.edu/cottrell/socialism_book/calculation_debate.pdf]
H. De Soto, 2001, "The Mystery of Capital", [https://www.hachettebookgroup.com/titles/hernando-de-soto/the-mystery-of-capital/9780465016150/?lens=basic-books]
N. Effingham, 2009, "The Metaphysics of Groups", [https://link.springer.com/article/10.1007/s11098-009-9335-4]
J. Fernández-Villaverde, 2020, "Simple Rules for a Complex World with Artificial Intelligence", [https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3559378]
G. Gaus, 2021, "The Open Society and Its Complexity", [https://academic.oup.com/book/39045?login=false]
F. A. Hayek, 2012, "Law, Legislation and Liberty. A New Statement of the Liberal Principles of Justice and Political Economy", pp: 35-54, [https://www.taylorfrancis.com/books/mono/10.4324/9780203103814/law-legislation-liberty-hayek-paul-kelly]
P. Mirowski & K. Somefun, 1998, "Towards an Automata Approach of Institutional (and Evolutionary) Economics", [http://fmwww.bc.edu/cef99/papers/somefun.pdf]
S. Phelan, 2020, "Can Entrepreneurship Be Learned by Intelligent Machines", [https://duckduckgo.com/?q=phelan+ai+entrepreneurs&atb=v342-1&ia=web]
L. Philips & M. Rozworski, 2019, "The People's Republic of Walmart", [https://www.penguinrandomhouse.com/books/564287/the-peoples-republic-of-walmart-by-leigh-philips-and-michal-rozworski/]
A. Quinton, 1976, “Social Objects”, [https://philpapers.org/rec/QUISO]
S. Ramoglou, 2021, "Why Do Disequilibria Exist?", [https://www.researchgate.net/publication/350879006_Why_do_disequilibria_exist_An_ontological_study_of_Kirznerian_economics]
L. E. Read, 1958, "I, Pencil: My Family Tree", [https://fee.org/ebooks/i-pencil/]
R. Scruton & J. Finnis, 1989, "Corporate Persons", [https://www.sci.brooklyn.cuny.edu/~schopra/Persons/ScrutonFinnis.pdf]
J. Searle, 2010, "Collective Intentions and Actions", [https://www.cambridge.org/core/books/abs/consciousness-and-language/collective-intentions-and-actions/AA8B8F5618E54D8CB1A673FF2AA4FFB6]
A. Sen, 1977, "Rational Fools: A Critique of the Behavioral Foundations of Economic Theory", [https://www.jstor.org/stable/2264946]
S. Thurner et al., 2018, "Introduction to the Theory of Complex Systems", [https://global.oup.com/academic/product/introduction-to-the-theory-of-complex-systems-9780198821939]
T. Yamamori, 2020, "The Intersubjective Ontology of Need in Carl Menger", [https://doi:10.1093/cje/beaa028]


=='''Important Dates'''==
=='''Important Dates'''==
{| class = wikitable
{| class = wikitable
|  Sep 11 || - submit book review choice, and start to discuss the content of your essay with Dr Smith
|-  
|-
|  Oct 19 || - submit proposed title and abstract of your essay
|  Sep 25 || - submit proposed title and abstract of your essay
|-
|  Oct 2|| - last day to ''present'' book summary
|-
|-
|  Oct 23 || - submit a table of contents of your essay and 300 word summary plus draft of associated ppt slides
|  Oct 23 || - submit a table of contents of your essay and 300 word summary plus draft of associated ppt slides
Line 112: Line 249:
|  Nov 13 || - submit second draft of essay (~2000 words) and associated powerpoint (~10 slides)
|  Nov 13 || - submit second draft of essay (~2000 words) and associated powerpoint (~10 slides)
|-
|-
|  Nov 20 || - class presentation
|  Nov 25 || - class presentation
|-
|  Dec 2  || - class presentation
|-
|-
|  Dec 10 || - submit final version of essay and powerpoint slides and upload final version of video to youtube
|  Dec 10 || - submit final version of essay and powerpoint slides and upload final version of video to youtube
Line 121: Line 260:
Grading will be based on two factors:  
Grading will be based on two factors:  


I: understanding and criticism of the material presented in classes 1-13
I: understanding and criticism of the material presented in classes 1-8


All students are required to take an active part in class (and where relevant on-line) discussions throughout the semester.  
All students are required to take an active part in class (and where relevant on-line) discussions throughout the semester.  

Revision as of 23:42, 21 November 2024

PHI 637. Registration number: [1]

Time: 1:00-3:50pm, selected Mondays, Fall Semester 2024. Begins September 23 in 141 Park Hall.

Mode: Hybrid: Face-to-Face, Online Synchronous, and Online Asynchronous

Credit: 2 credit hours

Room: Park 141, UB North Campus

Instructors: Barry Smith (Philosophy), Emanuele Martinelli (Philosophy, University of Zurich)

Office hours: BS: by appointment via email; EM: by appointment via email

Course Description

This course is a two-credit hour seminar, taught in hybrid mode. Students intending to take the course online should contact Dr Smith at phismith@buffalo.edu. To obtain three credit hours students can register for a supplementary tutorial with Dr Smith. Students with no background in philosophy are recommended to take the 1-credit-hour asynchronous course described here.

The goal of the course is to give the students conceptual tools to understand and evaluate critically the philosophical assumptions of different schools of thought in economics. Debates between different approaches in economics may be viewed in part as ontological debates as to the nature of social entities such as prices, markets, economic actors. Hence, the course aims at introducing the core categories that determine the world of economics and exploring how different interpretations of these categories can support different economic claims and systems.

Part One of the course introduces topics in social ontology with an eye on economic applications: agency, complexity, information, collectivity, speech acts, claims and obligations.

Part Two analyzes themes underlying the works of the main contemporary economic schools of thought. Austrian economics will be given special prominence because it is arguably the economic school of thought that makes the most open use of philosophical categories in its theories.

Recommended background reading

W. Grassl, and B. Smith (eds.), 2010, Austrian Economics: Historical and Philosophical Background, pp. 1-36, F. A. Hayek, 1945, "The Use of Knowledge in Society"

G. M. Hodgson, 2007, “Meanings of Methodological Individualism”

C. List & P. Pettit, 2011, "Group Agency: The Possibility, Design, and Status of Corporate Agents", Part I

P. Törnberg, 2018, "Complex Realist Economics"

B. Smith and J. Landgrebe, 2022, "Models of Complex Systems", especially pp. 157f.

Recommended background video content

Goods and Services

Ontologies of Commerce, Deontic Ontologies

Schedule

September 23: Introduction

'Ontology' can be understood in two ways: 1. as a branch of philosophy that deals with the kinds and categories of entities and how they relate. 2: a more technical area which overlaps with computer science, and which is focused on the use of category systems in data and information systems in large organizations. The bulk of this course is devoted to ontology in the philosophical sense, but this introductory session focuses on technical uses of ontologies. As an introduction to this class we start with an overview of the background of Barry Smith's work in ontology in the study of Austrian philosophy and of Austrian economics. We then move to some examples designed to illustrate how the ontological approach can help us to understand issues in the applied ontology of space/place.

Slides

Video

September 30: Introduction: Economic Agents and Agency

This class introduces the topic of 'agency' from the point of view of social ontology, with a focus on the different kinds of agents that populate the social world. This reflection on agency can make our understanding of core economic notions more sophisticated, including economic actors, markets, government interventions, firms. When reflecting on the assumptions of different economic models, philosophical considerations about society are a useful tool. Another very important conceptual distinction is that between 'collectivism' and 'individualism'. Moving from the various levels of this distinction, the class will examine the methodological division between microeconomics and macroeconomics under the lens of the individualist-collectivist spectrum that we find in the socio-ontological literature.

Slides

Video

Supplementary Slides

Publication

October 7: Market Equilibrium and Critical Perspectives

This class introduces classical and neoclassical economics. We will present the main proposals has advanced by the latter to overcome some core tenets of classical economics. This will include reflection on the assumptions of neoclassical economics, such as economic rationality, general equilibrium, and the invisible hand. We will then explore their deeper philosophical implications by comparing them with notions of social ontology. Different perspectives that try to move away from classical economics are presented, with a major focus on schools of economic though that have critized the core notion of economic equilibrium.

Slides

Video

Paper Mirowski & Somefun

October 14: FALL BREAK (No class)

October 21: Economic Goods and Institutions

1. (BS) The distinction between goods and services. An application of BFO to the economic realm.

2. (EM) Property plays a pivotal role in any commercial economy. The class will discuss the nature and origin of property, discussing classical views like Hohfeld's and Locke's in comparison with the realist perspective of Reinach. Introducing an understanding of the goods at the core of property, the class will encounter Samuelson's classic notions of 'rivalry' and 'excludability' and the subsequent debate around public goods. These may be extended to draw a basic ontology of different kinds of economic goods, following the intuitions of Elinor Ostrom and Mancur Olson. Building an ontology of economic goods is important in the normative domain as well, as institutions can be understood as different systems of rules that are tailored to facilitate the social provision of different kinds of economic goods.

Part 1: BS on Goods and Services

BS Slides

Beyond the Goods-Services Continuum

Ontology of Social Services

Part 2: EM on Goods and Institutions

EM Slides

EM Video


Paper on Reinach and Property

October 28: Austrian Economics 1 - Menger, Mises, and Apriorism

The class introduces the philosophical presuppositions of the Austrian school of economics, and its program to promote an understanding of economics as a philosophy of human action, or praxeology. This interest begins in the works of the two founding fathers of the school, Carl Menger and Ludwig von Mises, and the course thus introduces the main innovations they proposed: apriorism, the praxeological approach, the theory of exchange, the subjective theory of value, the re-establishment of methodological individualism.

Slides

Video

Paper Theory of Exchanges

November 4: Austrian Economics 2 - Hayek and the Price System

One of the core objections to neoclassical economics made by the representatives of the Austrian school is their nuanced approach toward quantitative mathematical models of the economy. Firstly, the class will introduce the central notion of 'need' in Menger's thought, as an alternative to the neoclassical notion of 'utility.' The course, further, moves to Hayek's understanding of social phenomena as spontaneous orders, and the ontological foundations of this perspective. This maps, in turn, to Hayek's understanding of the economy as a complex system, prompting the recent development of complexity economics.

Slides

Video

Discussion on Hayek and Cultural Evolution

Paper on Needs and Desires in Carl Menger

Hayek's Nobel Prize Speech

November 11: Austrian Economics 3 - Schumpeter and Kirzner on Entrepreneurship and Creativity in Humans and Beyond

The last core tenet of Austrian economics that the course finds philosophically important is entrepreneurship as the equilibrating force that drives the process of market equilibrium. The class will first put forward an understanding of the economic equilibrium as a process rather than a static state or goal, through an analysis of the price system in Hayek's and Kirzner's thought. The course will thus present the topic of entrepreneurship through the (sometimes conflicting) ideas of Joseph Schumpeter and Israel Kirzner. The focal point is that entrepreneurship is a fundamental notion in economics that is rarely investigated outside the Austrian school, and this has to do with the Austrian's recognition of the intrinsic complexity of the economy. Entrepreneurship can be further generalized as a feature of all action that has to do with creativity and proactivity, and this will allow to consider the hypothesis of designing AI entrepreneurs out of present-day technologies like stock market prediction systems, and so on.

Slides

Video

November 18: Market Socialism, AI, and Economic Planning

The class will explore the 'calculation debate' sparked by Mises' and Hayek's objections to economic planning. The two main socialist replies will be introduced: the objectivity of economic value through the labor theory of value, and market socialism. Soon, the calculation debate has been flooded by proposals to harness the successes of AI technology for planning the economy. The class will thus present and discuss the most promising models that attempt to plan the economy through AI intervention, starting from Salvador Allende's CyberSyn project in Chile: the Lange-Lerner model, the Cockshott-Cottrell model, Nieto's model, and Saros' democratic economic planning model.

Publication

Slides

Video

November 25: Student Presentations

1:00pm Olivia Hobai: "Rationality, behavioral economics, and scientific realism"

1:30pm Giacomo de Colle: "The economic and material basis of the state"

2:00pm AI, Creativity, and Entrepreneurial Perception

Zoom link

Slides (BS)

December 9: Student Presentations

1:00pm James Cordeiro, "Aspects of the Ontology of Stablecoins"

1:30pm Elena Milivinti, "Bridging Classical Economic Theories with Contemporary Challenges"

Zoom link

Student Learning Outcomes

Program Outcomes/Competencies Instructional Method(s) Assessment Method(s)
The student will acquire a knowledge of the philosophy of the social sciences in general and of economics in particular. Lectures and class discussions Review of reading matter and associated online content and participation in class discussions
The student will acquire experience in using the methods of philosophical argument, in formulating complex propositions pertaining to economic matters Participation in practical experiments Review of results
The student will acquire experience in formulating ideas using powerful persuasive prose. Creation of documentation and youtube presentations Review of results

How to Write an Essay

Steven Pinker, The Sense of Style, Penguin Books, 2014
Strunk and White, The Elements of Style
Harvard's guide to writing philosophy
Jim Pryor's guide to writing philosophy
Jordan Peterson's Essay Writing Guide
How to Use ChatGPT to write an essay

Suggested Additional Reading

W. B. Arthur, 2021, “Foundations of Complexity Economics”, [2]

S. Bostaph, 2019, “Schumpeter vs Kirzner on Entrepreneurs”, [3]

P. Boettke & R. Candela, 2022, "On the Feasibility of Technosocialism", [4]

S. R. Chant, 2007, "Unintentional Collective Action", [5]

R. Crespo, 2022, "The Nature of the Economy", [6]

A. Cottrell & P. Cockshott, 1993, "Calculation, Complexity and Planning: The Socialist Calculation Debate Once Again", [7]

H. De Soto, 2001, "The Mystery of Capital", [8]

N. Effingham, 2009, "The Metaphysics of Groups", [9]

J. Fernández-Villaverde, 2020, "Simple Rules for a Complex World with Artificial Intelligence", [10]

G. Gaus, 2021, "The Open Society and Its Complexity", [11]

F. A. Hayek, 2012, "Law, Legislation and Liberty. A New Statement of the Liberal Principles of Justice and Political Economy", pp: 35-54, [12]

P. Mirowski & K. Somefun, 1998, "Towards an Automata Approach of Institutional (and Evolutionary) Economics", [13]

S. Phelan, 2020, "Can Entrepreneurship Be Learned by Intelligent Machines", [14]

L. Philips & M. Rozworski, 2019, "The People's Republic of Walmart", [15]

A. Quinton, 1976, “Social Objects”, [16]

S. Ramoglou, 2021, "Why Do Disequilibria Exist?", [17]

L. E. Read, 1958, "I, Pencil: My Family Tree", [18]

R. Scruton & J. Finnis, 1989, "Corporate Persons", [19]

J. Searle, 2010, "Collective Intentions and Actions", [20]

A. Sen, 1977, "Rational Fools: A Critique of the Behavioral Foundations of Economic Theory", [21]

S. Thurner et al., 2018, "Introduction to the Theory of Complex Systems", [22]

T. Yamamori, 2020, "The Intersubjective Ontology of Need in Carl Menger", [23]

Important Dates

Oct 19 - submit proposed title and abstract of your essay
Oct 23 - submit a table of contents of your essay and 300 word summary plus draft of associated ppt slides
Oct 30 - submit first draft of essay (~1000 words) and associated powerpoint (~10 slides)
Nov 13 - submit second draft of essay (~2000 words) and associated powerpoint (~10 slides)
Nov 25 - class presentation
Dec 2 - class presentation
Dec 10 - submit final version of essay and powerpoint slides and upload final version of video to youtube

Grading

Grading will be based on two factors:

I: understanding and criticism of the material presented in classes 1-8

All students are required to take an active part in class (and where relevant on-line) discussions throughout the semester.

II: preparation of an essay, and associated powerpoint slides and recorded presentation.

Content and structure of the essay should be discussed with Dr Smith.

Grading Policy: Grading follows standard Graduate School policies. Grades will be weighted according to the following breakdown:

Weighting Assignment

20% - class discussions
15% - youtube video presentation
15% - powerpoint slides
50% - essay

Final Grades

Percentages refer to sum of assignment grades as listed above

Grade Quality Percentage

A 4.0 90.0% -100.00%
A- 3.67 87.0% - 89.9%
B+ 3.33 84.0% - 86.9%
B 3.00 80.0% - 83.9%
B- 2.67 77.0% - 79.9%
C+ 2.33 74.0% - 76.9%
C 2.00 71.0% - 73.9%
C- 1.67 68.0% - 70.9%
D+ 1.33 65.0% - 67.9%
D 1.00 62.0% - 64.9%
F 0 61.9% or below

An interim grade of Incomplete (I) may be assigned if the student has not completed all requirements for the course. An interim grade of 'I' shall not be assigned to a student who did not attend the course. The default grade accompanying an interim grade of 'I' shall be 'U' and will be displayed on the UB record as 'IU.' The default Unsatisfactory (U) grade shall become the permanent course grade of record if the 'IU' is not changed through formal notice by the instructor upon the student's completion of the course.

Assignment of an interim 'IU' is at the discretion of the instructor. A grade of 'IU' can be assigned only if successful completion of unfulfilled course requirements can result in a final grade better than the default 'U' grade. The student should have a passing average in the requirements already completed. The instructor shall provide the student specification, in writing, of the requirements to be fulfilled.

The university’s Graduate Incomplete Policy can be found here.

Related Policies and Services

Academic integrity is a fundamental university value. Through the honest completion of academic work, students sustain the integrity of the university while facilitating the university's imperative for the transmission of knowledge and culture based upon the generation of new and innovative ideas. See http://grad.buffalo.edu/Academics/Policies-Procedures/Academic-Integrity.html.

Accessibility resources: If you have any disability which requires reasonable accommodations to enable you to participate in this course, please contact the Office of Accessibility Resources in 60 Capen Hall, 645-2608 and also the instructor of this course during the first week of class. The office will provide you with information and review appropriate arrangements for reasonable accommodations, which can be found on the web here.

University suppert services: Students are often unaware of university support services. For example, the Center for Excellence in Writing provides support for written work, and several tutoring centers on campus provide academic success support and resources.

Available resources on sexual assault: UB is committed to providing an environment free of all forms of discrimination and sexual harassment, including sexual assault, domestic and dating violence and stalking. If you have experienced gender-based violence (intimate partner violence, attempted or completed sexual assault, harassment, coercion, stalking, etc.), UB has resources to help. This includes academic accommodations, health and counseling services, housing accommodations, helping with legal protective orders, and assistance with reporting the incident to police or other UB officials if you so choose. Please contact UB’s Title IX Coordinator at 716-645-2266 for more information. For confidential assistance, you may also contact a Crisis Services Campus Advocate at 716-796-4399.

Counselling services: As a student you may experience a range of issues that can cause barriers to learning or reduce your ability to participate in daily activities. These might include strained relationships, anxiety, high levels of stress, alcohol/drug problems, feeling down, health concerns, or unwanted sexual experiences. Counseling, Health Services, and Health Promotion are here to help with these or other concerns. You learn can more about these programs and services by contacting:

Counseling Services: 120 Richmond Quad (North Campus), phone 716-645-2720
Health Services: Michael Hall (South Campus), phone: 716-829-3316
Health Promotion: 114 Student Union (North Campus), phone: 716- 645-2837
Retrieved from "https://ncorwiki.buffalo.edu/index.php?title=Ontology_of_Economics&oldid=74825"