Posts byDirk Damsma

I am specialized in economic methodology and methodology of or for Business Studies. At Economics and Business I teach economic methodology and macro-economics and coordinate the thesis writing process for the tracks Economics and Economics and Finance. My columns will soon be published on as well.

Economic Science and Economic Reality

Last week, Rethinking Economics NL published an outstanding analysis of the state of economics education in the Netherlands today. It starts out by explaining how economics has gone from a science whose focus, domain and methods are defined or at least informed by its subject matter to a science whose subject matter is wholly defined

Productivity and Wages

Economists are generally hardly interested in how markets really work. If they were, they would have abandoned the concept of equilibrium as soon as its inconsistency with freedom and individuality became apparent through the work of Sonnenschein (1972), Mantel (1974) and Debreu (1974). The fact that they haven’t, indicates that the majority of them is

Criticism and Modern Economics

Contrary to popular belief and university propaganda, academia do not always foster an independent mind. In their first course on microeconomics, every budding economist is confronted with the notion of rational economic man allocating his scarce resources to fulfill as many of his stable and given preferences as possible. If these budding economists are like

On Planet Economics Killing Planet Earth is Rational

Constant economic growth is not doing the planet any favors. ‘Global average temperature has already risen by 0,8°C,’ ‘[a]round 40% of the world’s agricultural lands is now seriously degraded’ and ‘over 80% of the world’s fisheries are fully or over-exploited’ (Raworth 2017: 5, based on: Climate Action Tracker 2016; Global Agriculture 2015 and FAO 2010),

The Econocracy

In political parlance and mainstream media alike, the economy is often presented as an entity in its own right. It ‘can speed up, slow down, improve, decline, crash or recover, but no matter what it does, it must remain at the center of political attention’ (Earle, Moran & Ward-Perkins 2016: 7). Like the demigods of

Incentives in Financial Markets

An Anthropological and Political Perspective on the Financial Crisis   

As the majority of economists were (and most of them still are) working on a model in which markets ensure superior outcomes if left to themselves, they could not foresee the financial crisis. All the deregulation that happened since the early 80s, the supposed rational behavior of market participants, the technological capacity for calculating risks