Re:U.S. house prices are rising exponentially faster than in...
by logicchains on Sunday October 31, 2021 @02:59AM
(#29055042)
>But mainstream empirical economics, including (but not limited to) the neoclassical school, does not have a theory of value.
It does; it assumes utility exists as some concrete thing that can be compared between individuals. The fact you weren't aware of that just shows how good mainstream economics is at hiding this. https://en.wikipedia.org/wiki/Utility#Discussion_and_critici...
But mainstream empirical economics, including (but not limited to) the neoclassical school, does not have a theory of value. It makes predictions based on hypotheses of how individuals act given the existence of individual subjective value systems. There are plenty of valid criticisms to be made, but this is just projection by the Austrian school.
You can layer an infinite number of possible idealized value systems on top of any mainstream economic theory to get a policy theory (and there's almost as many of those that have been layered on it as people making policy recommendations incorporating mainstream economic analysis, but that is a separate layer.
> There is a form of economics that makes testable predictions with a reasonably high degree of accuracy, and isn't based on any underlying ideology: it's called "quantitative finance".
QF is to economics as meteorology is to climatology.