Gustav von Schmoller and Social Economics

It is proposed that social economics is in danger of losing its societal significance if economic analysis is reduced to one method only. Recently, prominent economists have emphasised the need to reintroduce the historical method into economic research work. A brief look is taken at some of the seminal examples of historical work in economics, particularly the German historical school. Other areas discussed include the scope and consequences of neglect of historical methods in contemporary economics; an outline of Schmoller′s work as an example of a historical social economist; and how Schmoller′s work compared with that of his contemporaries. The article concludes with a plea for a renewed emphasis on historical methods in economics.