Uncertainty in Economics

Introduction to the New Approach

In this book the author develops a new approach to uncertainty in economics, which calls for a fundamental change in the methodology of economics.

Overview and Critical Appraisal

It provides a comprehensive overview and critical appraisal of the economic theory of uncertainty and shows that uncertainty was originally conceptualized both as an epistemic and an ontological problem.

Historical Context and Neglect

As a result of the economic professions’ attempt to become acknowledged as a science, the more problematic aspect of ontological uncertainty has been neglected and the subjective probability approach to uncertainty became dominant in economic theory.

Implications and Findings

A careful analysis of ontological theories of uncertainty explains the blindness of modern economics to economic phenomena such as instability, slumps or excessive booms.

Conclusion and New Paradigm

Based on these findings the author develops a new approach that legitimizes a New Uncertainty Paradigm in economics.