Davidson and methodology

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

FROM:  Paul Davidson
"      Holly Chair of Excellence in Political Economy
"      University of Tennessee, Knoxville, Tn. 37996-0550
Dear Ric: As my longer reply which I hope you have received and sent on to the
network indicates Keynes used both deductive and inductive logic. Keynes merely
argued that the general theory should not impose probabilistic ergodicity
axiom. Then we can have two cases: (1) ergodic systems -- e.g., the
rational expectations hypothesis in general (and morelimited bounded
rationality models) and (2) nonergodic systems.  Case (1) requires
characteristics that do not happen to be those of the world in which we live.
   Do not confuse the concept of uncertainty -- with anything can happen and th
erefore we can have no deductive logical system. The former does not imply the
latter.

Have a good day! Paul
email address: PB108928@xxxxxxxxxxxxxx
fax# (615)974-1686
phone# (615)974-4221