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The Nature and Significance of Economic Science
The slim volume here reprinted nearly a half century after its first appearance, along with Lord Robbin's's Ely lecture on the same subject, can only be regarded as a dangerous revolutionary document. It caused an upheaval in the settled habits of thought of professional economists very soon after its appearance, and it engendered controversy which has not yet abated - controversy which continues to be created now as it was then. Even those who disagree most strongly with positions taken in this book will readily acknowledge that they are substantial, and that they have changed the course of economics by forcing economists to separate out clearly what they can derive from analysis standing firmly on logical and empirical evidence and the conclusions dependent on the observer's personal ethical precepts.
- GenresEconomics
200 pages, Hardcover
First published January 1, 1932
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160 people want to read
About the author
Lionel Robbins
86 books14 followersLionel Charles Robbins, Baron Robbins, CH, CB, FBA (22 November 1898 – 15 May 1984) was a British economist, and prominent member of the economics department at the London School of Economics. He is known for his leadership at LSE, his proposed definition of economics, and for his instrumental efforts in shifting Anglo-Saxon economics from its Marshallian direction. He is famous for the quote, "Humans want what they can't have."
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Displaying 1 - 7 of 7 reviews
May 7, 2021
It is fascinating to read this book retrospectively. Robbins has stated the foundations of the modern discipline and its commitment to emulating the positive sciences. In you seek an understanding of modern economics and its self-understanding, there are few better places to start.
Beyond the historical and intellectual interest, however, Robbins' discussion is short-sighted. In so strictly defining economic science (and he does distinguish this from theory, history, etc.), he runs into a variety of problems which cannot be as easily solved as he suggests. The relationship between economics and psychology is a particularly problematic one. Robbins suggests that economic laws are derived from the fundamental facts of human behaviour, but rejects the idea that innovation in psychology would alter or otherwise influence said economic laws.
Beyond the historical and intellectual interest, however, Robbins' discussion is short-sighted. In so strictly defining economic science (and he does distinguish this from theory, history, etc.), he runs into a variety of problems which cannot be as easily solved as he suggests. The relationship between economics and psychology is a particularly problematic one. Robbins suggests that economic laws are derived from the fundamental facts of human behaviour, but rejects the idea that innovation in psychology would alter or otherwise influence said economic laws.
November 1, 2022
I hate not finishing books, but I hate this book much more. The only use for Robbins' misleadingly slim volume I can see, is for nonviolently extracting confessions. Simply place the prisoner in the cell with only this to read and they'll admit to anything!
September 5, 2023
ENGLISH
Lionel Robbins “committed” this short, objective book, which sets the lasting neoclassical definition of Economics. The book refutes the then predominant definition of Economics as the study of the causes of wealth to establish that “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”.
Published in 1937, the book launches quite objective postulates, such as that Economics deals only with the means to achieve ends, for ends do not matter. Robbins is quite emphatic here in that morals is not part of the study, eliminating thus an element that scholars claim that has importance today and would have already been pointed out by Adam Smith as part of the economic phenomenon in his “Theory of Moral Sentiments” (my review here: https://www.goodreads.com/review/show...). Another postulate that became famous is the logical order of economic choices, as in the reasoning that if someone prefers A to B and B to C, then he will prefer A to C.
Interesting is the consecration of the important notion of opportunity cost (“scarcity” and “alternative uses”), present in economic reasoning since before Adam Smith, now as a constituent element of the definition of Economic Science.
Many of these postulates have been refuted, with economists (although liberal) claiming that ends do matter (Amartya Sen) and that that rational order of choices does not work in that strict way in reality and this is important to the economic study (Behavioral Economics).
Robbins, an English economist versed in German, built with this work an important bridge between English neoclassical economics, which had Alfred Marshall as a maximum reference (my review here https://www.goodreads.com/review/show...), with the Austrian School (as Robbins was a student of Mises), whose tradition goes back to marginalism, with its utilitarianism and subjectivism of choices (my review of Carl Menger’s foundational book here: https://www.goodreads.com/review/show...). The result is a historic work, which established the neoclassical definition of Economics, mentioned to this day in manuals of the discipline.
The refutations to the book have direct ideological implications as they try to demonstrate how such rigid postulates can influence the way of thinking public and economic policies and their results.
PORTUGUÊS
Lionel Robbins “cometeu” este livro curto e objetivo, que estabeleceu a definição neoclássica de Economia. O livro refuta a definição então predominante de Economia como o estudo das causas da riqueza para fixar que “a Economia é a ciência que estuda o comportamento humano como uma relação entre fins e meios escassos que têm usos alternativos”.
Publicado em 1937, o livro lança postulados bastante objetivos, como o de que a Economia trata apenas dos meios para atingir os fins, pois os fins não importam. Robbins é bastante enfático aqui ao dizer que a moral não faz parte do estudo, eliminando assim um elemento que os estudiosos afirmam ter importância atualmente e que Adam Smith já teria apontado como parte do fenômeno econômico no seu “Teoria dos Sentimentos Morais” (a minha resenha aqui: https://www.goodreads.com/review/show...). Outro postulado que ficou famoso é o da ordem lógica das escolhas econômicas, como no raciocínio de que se alguém prefere A a B e B a C, então preferirá A a C.
Interessante a consagração da tão importante noção de custo de oportunidade (“escassez” e “usos alternativos”), presente no raciocínio econômico desde antes de Adam Smith, agora como um elemento constituinte da definição da Ciência Econômica.
Muitos desses postulados foram ou vêm sendo rebatidos, com economistas (ainda que liberais) afirmando que fins sim importam (Amartya Sen) e que a mencionada ordem racional de escolhas não funciona desse modo estreito na realidade e isso importa ao estudo econômico (Economia Comportamental).
É importante enfatizar que Robbins, um economista inglês versado em alemão, fez com esta obra uma importante ponte entre a economia neoclássica inglesa, que tinha Alfred Marshall como referência máxima (minha resenha aqui: https://www.goodreads.com/review/show...), com a Escola Austríaca (já que Robbins foi aluno de Mises), cuja tradição remonta ao marginalismo, com seu utilitarismo e subjetivismo de escolhas (minha resenha do livro fundacional de Carl Menger aqui: https://www.goodreads.com/review/show...). O resultado é uma obra histórica, que estabeleceu de forma duradoura a definição neoclássica de Economia, mencionada até hoje em manuais da disciplina.
As refutações ao livro possuem diretas implicações ideológicas, na medida em que tentam demonstrar como postulados tão rígidos podem influenciar a forma de pensar políticas públicas e econômicas e seus resultados.
Lionel Robbins “committed” this short, objective book, which sets the lasting neoclassical definition of Economics. The book refutes the then predominant definition of Economics as the study of the causes of wealth to establish that “Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”.
Published in 1937, the book launches quite objective postulates, such as that Economics deals only with the means to achieve ends, for ends do not matter. Robbins is quite emphatic here in that morals is not part of the study, eliminating thus an element that scholars claim that has importance today and would have already been pointed out by Adam Smith as part of the economic phenomenon in his “Theory of Moral Sentiments” (my review here: https://www.goodreads.com/review/show...). Another postulate that became famous is the logical order of economic choices, as in the reasoning that if someone prefers A to B and B to C, then he will prefer A to C.
Interesting is the consecration of the important notion of opportunity cost (“scarcity” and “alternative uses”), present in economic reasoning since before Adam Smith, now as a constituent element of the definition of Economic Science.
Many of these postulates have been refuted, with economists (although liberal) claiming that ends do matter (Amartya Sen) and that that rational order of choices does not work in that strict way in reality and this is important to the economic study (Behavioral Economics).
Robbins, an English economist versed in German, built with this work an important bridge between English neoclassical economics, which had Alfred Marshall as a maximum reference (my review here https://www.goodreads.com/review/show...), with the Austrian School (as Robbins was a student of Mises), whose tradition goes back to marginalism, with its utilitarianism and subjectivism of choices (my review of Carl Menger’s foundational book here: https://www.goodreads.com/review/show...). The result is a historic work, which established the neoclassical definition of Economics, mentioned to this day in manuals of the discipline.
The refutations to the book have direct ideological implications as they try to demonstrate how such rigid postulates can influence the way of thinking public and economic policies and their results.
PORTUGUÊS
Lionel Robbins “cometeu” este livro curto e objetivo, que estabeleceu a definição neoclássica de Economia. O livro refuta a definição então predominante de Economia como o estudo das causas da riqueza para fixar que “a Economia é a ciência que estuda o comportamento humano como uma relação entre fins e meios escassos que têm usos alternativos”.
Publicado em 1937, o livro lança postulados bastante objetivos, como o de que a Economia trata apenas dos meios para atingir os fins, pois os fins não importam. Robbins é bastante enfático aqui ao dizer que a moral não faz parte do estudo, eliminando assim um elemento que os estudiosos afirmam ter importância atualmente e que Adam Smith já teria apontado como parte do fenômeno econômico no seu “Teoria dos Sentimentos Morais” (a minha resenha aqui: https://www.goodreads.com/review/show...). Outro postulado que ficou famoso é o da ordem lógica das escolhas econômicas, como no raciocínio de que se alguém prefere A a B e B a C, então preferirá A a C.
Interessante a consagração da tão importante noção de custo de oportunidade (“escassez” e “usos alternativos”), presente no raciocínio econômico desde antes de Adam Smith, agora como um elemento constituinte da definição da Ciência Econômica.
Muitos desses postulados foram ou vêm sendo rebatidos, com economistas (ainda que liberais) afirmando que fins sim importam (Amartya Sen) e que a mencionada ordem racional de escolhas não funciona desse modo estreito na realidade e isso importa ao estudo econômico (Economia Comportamental).
É importante enfatizar que Robbins, um economista inglês versado em alemão, fez com esta obra uma importante ponte entre a economia neoclássica inglesa, que tinha Alfred Marshall como referência máxima (minha resenha aqui: https://www.goodreads.com/review/show...), com a Escola Austríaca (já que Robbins foi aluno de Mises), cuja tradição remonta ao marginalismo, com seu utilitarismo e subjetivismo de escolhas (minha resenha do livro fundacional de Carl Menger aqui: https://www.goodreads.com/review/show...). O resultado é uma obra histórica, que estabeleceu de forma duradoura a definição neoclássica de Economia, mencionada até hoje em manuais da disciplina.
As refutações ao livro possuem diretas implicações ideológicas, na medida em que tentam demonstrar como postulados tão rígidos podem influenciar a forma de pensar políticas públicas e econômicas e seus resultados.
December 30, 2024
In this 1932 book, Robbins formulated one of the classic and enduring definitions of economics, often abbreviated as: how to meet infinite desires in a world of scarcity. But that truism in fact hides much of the subtly of Robbins's thinking. Robbins formulated the basic assumption of scarcity not as a supposed metaphysical fact of the world, but to limit economics to a world in which "choice" was necessary, because scarcity is just another name for the need to make choices between different limited ends. He helpfully provides the example of time as a scarce resource, and thus bring "immaterial" objects into economics by noting people choosing between "non-economic" leisure and "economic" work is still susceptible to economic analysis.
Robbins also noted that economics is, or should be, not so much concerned with means (the technics of production) or ends (why people have certain desires) but the relationship between the two. He believes that given the nature of scarcity, or, to use another word, choice, the relationship between means and ends will be universal, given the same background rules, and thus capable of deductive extrapolation. He thus spends some time knocking the "inductive" or institutionalist/German method as compared to the deductive Anglo-Saxon and Austrian schools, but given the opacity and sterility of much of inductive economics at the time, which mainly consisted of gathering piles of unrelated facts, this was warranted.
Like some other attempts to define "economics," this one, though intending to be expansive, actually limits its operation. He finds most of applied economics to be little more than applying the deductive truths, and thinks most probabilities found in economics that aren't based on firm deductive laws should be excluded. I think Robbins underestimated how little room this would leave for future researchers once basic deductive truths had been established. But throughout this book one meets a wonderful mind wrestling with the profoundest questions of the field and of social science more generally.
Robbins also noted that economics is, or should be, not so much concerned with means (the technics of production) or ends (why people have certain desires) but the relationship between the two. He believes that given the nature of scarcity, or, to use another word, choice, the relationship between means and ends will be universal, given the same background rules, and thus capable of deductive extrapolation. He thus spends some time knocking the "inductive" or institutionalist/German method as compared to the deductive Anglo-Saxon and Austrian schools, but given the opacity and sterility of much of inductive economics at the time, which mainly consisted of gathering piles of unrelated facts, this was warranted.
Like some other attempts to define "economics," this one, though intending to be expansive, actually limits its operation. He finds most of applied economics to be little more than applying the deductive truths, and thinks most probabilities found in economics that aren't based on firm deductive laws should be excluded. I think Robbins underestimated how little room this would leave for future researchers once basic deductive truths had been established. But throughout this book one meets a wonderful mind wrestling with the profoundest questions of the field and of social science more generally.
to-keep-reference
March 8, 2022De este ensayo es la famosa definición de la economía como distribución de recursos escasos
entre fines alternativos
entre fines alternativos
September 4, 2016
Horrible read. Sentences are long and wordy, arguments make no sense. I honestly feel dumber after reading this.
Would not recommend it to anyone in their right mind. I feel it's been written for people who have a prejudice against economics but no true understanding how economics truly works
Would not recommend it to anyone in their right mind. I feel it's been written for people who have a prejudice against economics but no true understanding how economics truly works
Displaying 1 - 7 of 7 reviews