HOW ECONOMICS PROFESSORS
CAN STOP FAILING US

Samuel Bostaph

Review of book by Stephen Payson by Samuel Bostaph - Quarterly Journal of Austrian Economics, Vol. 21, No 1, Spring 2018, pgs. 79-86

Reviewer Comment:
This is a favorable review of a powerful indictment of not only academic economists but the entire academic professions in history, and other humanities fields. The author zeros in on the pressure young undergraduates and Ph.D., candidates and even faculty members to Publish and Publish - in order to have their articles then cited by others in a round of praise that will bring them tenure and other advancement. For economists in particular Payson denounces the requirement to build 'models' with the more arcane mathematical pseudo-validity the better.
Readers can compare thit with Thomas Woods' article, also in the QJAE - What Austrian Economics Can Teach Historians. And my review of it.

Thomas Woods - What Austrian Economics Can Teach Historians

Steven Payson's central point is that economists could provide valid advice if they would adopt a truly scientific methodology. Of course Woods' central point is that Austrian School economists are employing real scientific methods in contrast wtih historians and other economists.

Payson also points out that economists have attempted to be 'scientific' by engaging in theoretically based 'models' - that is elaborate mathematical formula writing. Moreover, their purpose in performing these exercises is to achieve as much publication as possible in the favorite professional journals of other, like minded, economists who proceed then to cite each others' articles in pursuit of tenure and academic recognition. But all this back and forth does not advance real knowledge about real problems.

Here is a quotation from Bostaph's critique: "The cover of the book features a chessboard showinga simple 'fools mate'. This seems appropriate as it is Payson's main contention that mainstream model-building founders quickly when it is realized that most of this activity consissts of making a few simple assumptions and then engaging in a rigorous mathematical exercise to ''rediscover" them."... Little effort is devoted to the rigorous derivation and defense of the assuptions, or to assessing the reliability of the data on which they may be based." He also comments that when real (natural) scientists use mathematics it is to further understanding of the cause- effect relationships they are studying, not as a substitute for results.

Payson strikes the core problem and Bostaph repeats it. "Instead, graduate students in mainstream economics programs study complicated mathematical models, constructed on the basis of a few restrictive assumptions, and learn to model-build themselves with a view to future publication in economics journals." No tests of the assumptions are involved."
Of course Woods claims that history is to complex with too many claimed 'facts' with which the economist must deal, hence restrictive assumptions are essential and pure reason when applied is the key to understanding.

Bostoph also notes that Payson includes many specific examples of this inherently faulty method. These include specific presentations by leading economists in their professional meetings in which the speakers specifically urge their young audience members to write with the objective of obtaining as wide a publication as possible to receive approbations. "The result is an academic culture that encourages and sustains the subordination of research ends to means." Payson continues with further negative critique on the whole publications game and the poor ethics involved. He concludes with recommendations for significant changes in the reserch methods themselves and more changes in the purposes for the publications game.
Bostoph writes:" Payson would like a lot more than this to be done to change the culture of academic economics."

Indeed, from my experience all the problems and faults that Payson describes and Bostoph repeats apply throughout the academy, in history, sociology, anthropology and others. And we should add that the motivation for the undesirable conditions in academic research are not limited to gaining personal advamcement and peer faim, but as much or more in gaining financial support for their institutions and their expanded work and from favorable support from politicians for their political policy agendas. And the same motivations and unfortunate results have developed in the 'hard science' fields as well - for instance climate research, environmental research, and other issues that dominate public policy debate.

David Hackett Fischer - The Great Wave - Economic historian Fischer devotes an appendix in his unique study of price movements to expose and denounce the same academic faults as do Payson and Bostoph

Lawrence White - The Clash of Economic Ideas - Economics professor White describes the competition and conflict among economists to gain attention through proposing alternative theories about real world phenomena on the basis of theoretical reasoning.