Methodological individualism: Difference between revisions
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'''Methodological individualism''' is the theory that social and economic phenomenon can be explained by reference to the actions of individuals rather than groups or collectives. Based on this theory groups and collectives are not entities which can act in and of themselves but only through the action of the individual members of which they are composed. Methodological individualism is one of the core concepts of the [[Austrian School|Austrian School of Economics]], and while the term was coined by the Viennese economist [[Joseph Schumpeter]],<ref>Schulak EM and Unterkofler H. [http://mises.org/resources/6136/The-Austrian-School-of-Economics-A-History-of-Its-Ideas-Ambassadors-and-Institutions "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions"], 2011, page 15.</ref> the idea was developed earlier by the founder of the school [[Carl Menger]]. Menger's formulation of this position is revealed by a quote of his published in 1889: "There is no economic phenomenon that does not ultimately find its origin and measure in the economically acting human and his economic deliberations".<ref>Menger Carl, "Nationalökonomische Literaturin Österreich", 1889, page 2-4</ref> The development of this idea by Menger in the late 19th century was in direct contrast to the dominant theories of the German economists of the day, who at the time considered institutions such as "the people", "the economy", and "the nation" to be entities in their own right.<ref>Schulak EM and Unterkofler H. [http://mises.org/resources/6136/The-Austrian-School-of-Economics-A-History-of-Its-Ideas-Ambassadors-and-Institutions "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions"], 2011, page 15.</ref> Methodological individualism on the other hand does not deny the outright existence of collectives such as nations, economies, or classes, | '''Methodological individualism''' is the theory that social and economic phenomenon can be explained by reference to the actions of individuals rather than groups or collectives. Based on this theory groups and collectives are not entities which can act in and of themselves but only through the action of the individual members of which they are composed. Methodological individualism is one of the core concepts of the [[Austrian School|Austrian School of Economics]], and while the term was coined by the Viennese economist [[Joseph Schumpeter]],<ref>Schulak EM and Unterkofler H. [http://mises.org/resources/6136/The-Austrian-School-of-Economics-A-History-of-Its-Ideas-Ambassadors-and-Institutions "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions"], 2011, page 15.</ref> the idea was developed earlier by the founder of the school [[Carl Menger]]. Menger's formulation of this position is revealed by a quote of his published in 1889: "There is no economic phenomenon that does not ultimately find its origin and measure in the economically acting human and his economic deliberations".<ref>Menger Carl, "Nationalökonomische Literaturin Österreich", 1889, page 2-4</ref> The development of this idea by Menger in the late 19th century was in direct contrast to the dominant theories of the German economists of the day, who at the time considered institutions such as "the people", "the economy", and "the nation" to be entities in their own right whose actions were influenced by factors over and above the action of individuals.<ref>Schulak EM and Unterkofler H. [http://mises.org/resources/6136/The-Austrian-School-of-Economics-A-History-of-Its-Ideas-Ambassadors-and-Institutions "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions"], 2011, page 15.</ref> Methodological individualism on the other hand does not deny the outright existence of collectives such as nations, economies, or classes, rather just denies that the action of such entities can be explained by anything other then the actions of their individual members. | ||
==References== | ==References== | ||
Revision as of 12:59, 16 September 2011
Methodological individualism is the theory that social and economic phenomenon can be explained by reference to the actions of individuals rather than groups or collectives. Based on this theory groups and collectives are not entities which can act in and of themselves but only through the action of the individual members of which they are composed. Methodological individualism is one of the core concepts of the Austrian School of Economics, and while the term was coined by the Viennese economist Joseph Schumpeter,[1] the idea was developed earlier by the founder of the school Carl Menger. Menger's formulation of this position is revealed by a quote of his published in 1889: "There is no economic phenomenon that does not ultimately find its origin and measure in the economically acting human and his economic deliberations".[2] The development of this idea by Menger in the late 19th century was in direct contrast to the dominant theories of the German economists of the day, who at the time considered institutions such as "the people", "the economy", and "the nation" to be entities in their own right whose actions were influenced by factors over and above the action of individuals.[3] Methodological individualism on the other hand does not deny the outright existence of collectives such as nations, economies, or classes, rather just denies that the action of such entities can be explained by anything other then the actions of their individual members.
References
- ↑ Schulak EM and Unterkofler H. "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions", 2011, page 15.
- ↑ Menger Carl, "Nationalökonomische Literaturin Österreich", 1889, page 2-4
- ↑ Schulak EM and Unterkofler H. "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions", 2011, page 15.