Re: Mirowski and critiques

[Paul Davidson <PB108928%UTKVM1.BITNET@xxxxxxxxxxxxxxxxx>]

FROM:  Paul Davidson
"      Economics Department
"      523 Stokely Management Center  (615) 974-4221
As much as I agree with Basil Moore's argument that the function of escience is
  to explain -- prediction is just iceing on an ergodic scientific cake --
this does not mean we must abandon the concept of equilibrium (as my controlled
experiment posting suggested). But we should not confuse the concept of
equilibrium in economics with market clearing. As I noted in the ECONOMIC jOURN
AL in 1967, equilibrium (a concept Marshall borrowed from the hard sciences)
merely means that there are no endogenous forces that cause further movement,
i.e., a state of rest. Clearing is a sufficient condition for equilibrium,
it is not a necessary condition. Thus Keynes insisted on a theory of
employment equilibrium where the stae of rest could be at less than labor
market clearing given specific values for the exogeneous variables.
      The use of "stylized facts" is perfectly consistent with specifying
values of exogenous variables and investigating the position of rest of
the experiment al population.

Have a good day!____Paul Davidson
))))_ fax # (615) 974-1686