The Physics Scientific Ideal in the Works of Edgeworth and Fisher

Abstract

The scientific methodology of classical physics has been a constant influence in the development of orthodox economics. Clear signs of this can be found in the works of many classical economists such as Smith, Ricardo, Cournot, and Mill. The physics influence became more apparent with the emergence of marginalism. The economic thought of Edgeworth, however, is the peak of the influence of classical physics to economics. The identification of maximum energy in physics with that of the maximum pleasure in economic calculus, is central in his thought. In the same manner, Fisher, the founder of marginalism in the US, promoted a physics based economic methodology. The close analogy of physics and economics concepts and the application of tools from mathematical physics to economic theory, are basic characteristics of his work. These views eventually dominated orthodox economic methodology. The paper argues that, apart from establishing the physics scientific ideal in economics, both of these authors provided the methodological justification for its adoption in economics. It also examines the possible reasons for its wider acceptance as their subsequent influence on the formation of the current methodological approach in orthodox economics, indicates. Finally, there is a discussion of Edgeworth and Fisher views in the light of current trends in economic methodology.

An earlier version of the paper was presented to the Conference in memory of Anastassios D. Karayiannis at the University of Thessaly, Volos, October 18–19, 2013. Special thanks for comments are due to the conference participants.