A THEORY OF THE METHODOLOGY OF ECONOMICS

This paper presents a theory of the determinants of the methodology of economics. Following the useful distinction made by Papendreou (1958), theory is defined as comprising both a model and a probability statement as to the empirical validity of the model. Accordingly, first a model of the determinants of methodology of economics is presented and, then as an illustration, the model is applied to explain the major issues which have been debated in the recent literature on methodology. The paper concludes with a brief and simplified analysis of the evolution of methodology and some testable hypotheses are presented about the future course of the methodology of economics.