Dan Št’astný: The Economics of Economics
The Economics of Economics (2010) by Dan Št’astný extends the economic approach of public choice and law and economics to see how economists behave so as to improve their well being in the world of uncertainty, scarcity and institutions. According to Št’astný, economists have been adjusting their behavior to the changing institutional environment and, consequently, ended up policy irrelevant. The book review provides an assessment of the model Št’astný employs. On the one hand, Št’astný offers a looking glass that helps seeing the decision making process of an economist from a price theory perspective. I suggest, on the other hand, that the model would be more accurate had it not considered preferences constant. In fact, the evolution of economists’ preferences and the changing sense of praiseworthiness is what the model should try to explain.
KeywordsEconomics of Economics Public choice Law and economics Consensus Theory-policy gap Praiseworthiness
JEL ClassificationA11 Z00
- Buchanan, J. M., & Tullock, G. (1967). The calculus of consent: Logical foundations of constitutional democracy. Michigan: University of Michigan Press.Google Scholar
- Colander, D. (2007). The making of an economist, redux. Princeton: Princeton University Press.Google Scholar
- Frey, B. S. (2000). Does economics have an effect? Towards an economics of economics. Zurich: Institute for Empirical Research in Economics, University of Zurich.Google Scholar
- Frey, B. S., & Eichenberger, R. (1992). Economics and economists: A European perspective. The American Economic Review, 82(2), 216–220.Google Scholar
- Klamer, A., & Colander, D. (1990). The making of an economist. Westview Pr (Short Disc).Google Scholar
- Klein, D. B., & Romero, P. P. (2007). Model building versus theorizing: The paucity of theory in the Journal of Economic Theory. Econ Journal Watch, 4(2), 241–271.Google Scholar
- Levy, D. M., & Roháč, D. (2009). Praiseworthiness and endogenous growth. Prague Economic Papers, 2009(3), 220–234.Google Scholar
- Posner, R. A. (1973). Economic analysis of law. Boston: Little, Brown.Google Scholar
- Smith, A. (1759). The theory of moral sentiments (1st Edition in this form. Series: The Glasgow edition of the works and correspondence of Adam Smith; 1. ed.). USA: Oxford University Press.Google Scholar
- Št’astný, D. (2010). The Economics of Economics. CEVRO Institute Academic Press. http://www.cevroinstitut.cz/cooluri.php?lang=en&url=Section/academic+press/books/&&year=2011&month=08.