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Investigations into the Methods of the Social Sciences
Here is the book that gave the Austrian School its name!
The famed Methodenstreit of the late 19th century was the battle of method. It pitted the emerging Austrian School against the German Historical School over a critically important what is the proper way to do social science? Here Carl Menger, the founder of the School, vindicates the importance of theory, and lays the foundation for later developments by Mises and others.
[image]The book was written twelve years after his principles book, and it sought to deal with the hostility with which that book was greeted in the German world. Menger argues that economics can and must be more than an effort at observing, collecting, and assembling data. It can make general observations about the laws of economics that operate independently of time and place.
Joseph Salerno "The Investigations precipitated a furor among German economists who heatedly responded with derisive attacks on Menger and the Austrian School. In fact, this latter term was originated and applied by the German Historicists in order to emphasize the isolation of Menger and his followers from the mainstream of German economics."
No Austrian can overlook this very important treatise on method.
paperback, 260 pgs.
The famed Methodenstreit of the late 19th century was the battle of method. It pitted the emerging Austrian School against the German Historical School over a critically important what is the proper way to do social science? Here Carl Menger, the founder of the School, vindicates the importance of theory, and lays the foundation for later developments by Mises and others.
[image]The book was written twelve years after his principles book, and it sought to deal with the hostility with which that book was greeted in the German world. Menger argues that economics can and must be more than an effort at observing, collecting, and assembling data. It can make general observations about the laws of economics that operate independently of time and place.
Joseph Salerno "The Investigations precipitated a furor among German economists who heatedly responded with derisive attacks on Menger and the Austrian School. In fact, this latter term was originated and applied by the German Historicists in order to emphasize the isolation of Menger and his followers from the mainstream of German economics."
No Austrian can overlook this very important treatise on method.
paperback, 260 pgs.
260 pages, Paperback
First published January 1, 1883
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Displaying 1 - 6 of 6 reviews
March 22, 2020
"Pedantic yet brilliant, Menger's classic, Investigations, deserves to be studied for its lasting insights on spontaneous order theorizing if not for its (mostly outdated) commentaries on the German Historical School. However, for most readers, a selective reading will do. There are several parts of the book that are historically outdated, terminologically confused, or a combination of both. And the writing is humorously obnoxious. Nobody could accuse Menger of being a "good read." This is partially the result of a rather uneven English translation by Francis J. Nock but it doesn't read much better in original German. And yet, for all its faults, there are parts of the book that absolutely essential for understanding the origins of human social interaction.
The majority of the book deals with fundamental methodological questions as reflected in the "Methodenstreit" with the German Historical School. The particular details of this debate have abated in our collective memory although the general outlines carry some lasting impact. Here, Menger discusses the importance of abstract (theoretical) concepts vs. empirical observations, and the importance of the search for laws vs. the tracking of statistical-historical correlations in theoretical economics. He opposes his own (the "Austrian") notion of the "strict" mode of theoretical economics with what he calls the "realistic-empirical" (the "German" or "historical") mode of analysis. This discussion is somewhat interesting but rather stiff and stuffy. Most of these issues have been debated with improved arguments and clarity in subsequent literature.
For me the best parts of the book are its groundbreaking discussion of the "organic" origin of money, law, markets, and social institutions. Menger combines Burke's critique of "the spirit of innovation" with Karl von Savigny's historical insights into the origins of customary law. Menger insists that there are many facets of common law, custom, and inherited social institutions like money and markets that advance common welfare despite being the result of common will or positive law. These ideas heavily influenced F.A. Hayek's revival of spontaneous order theorizing in the middle of the 20th century. They also presage the insights of contemporary evolutionary economics.
Unlike the rather stuffy and pedantic sections on scientific methodology, his analysis of the organic origins of law and money carries lasting weight beyond the parochial confines of now-forgotten 19th century methodological disputes in the German speaking world. Menger's groundbreaking analysis of the emergence of money and law may draw inspiration from Burke and Savigny but it goes beyond them in the uniqueness of his insights and their analytical clarity.
PS. It should be noted that the best sections on law and money only take up less than half of the entire book. The rest, IMO, can be safely ignored. So, I would recommend only reading the three chapters of Book III (on organic development) and the lengthy Appendix VIII (on law). This should suffice for most people. The rest is only useful for a specialized scholar. Or a special kind of masochist."
The majority of the book deals with fundamental methodological questions as reflected in the "Methodenstreit" with the German Historical School. The particular details of this debate have abated in our collective memory although the general outlines carry some lasting impact. Here, Menger discusses the importance of abstract (theoretical) concepts vs. empirical observations, and the importance of the search for laws vs. the tracking of statistical-historical correlations in theoretical economics. He opposes his own (the "Austrian") notion of the "strict" mode of theoretical economics with what he calls the "realistic-empirical" (the "German" or "historical") mode of analysis. This discussion is somewhat interesting but rather stiff and stuffy. Most of these issues have been debated with improved arguments and clarity in subsequent literature.
For me the best parts of the book are its groundbreaking discussion of the "organic" origin of money, law, markets, and social institutions. Menger combines Burke's critique of "the spirit of innovation" with Karl von Savigny's historical insights into the origins of customary law. Menger insists that there are many facets of common law, custom, and inherited social institutions like money and markets that advance common welfare despite being the result of common will or positive law. These ideas heavily influenced F.A. Hayek's revival of spontaneous order theorizing in the middle of the 20th century. They also presage the insights of contemporary evolutionary economics.
Unlike the rather stuffy and pedantic sections on scientific methodology, his analysis of the organic origins of law and money carries lasting weight beyond the parochial confines of now-forgotten 19th century methodological disputes in the German speaking world. Menger's groundbreaking analysis of the emergence of money and law may draw inspiration from Burke and Savigny but it goes beyond them in the uniqueness of his insights and their analytical clarity.
PS. It should be noted that the best sections on law and money only take up less than half of the entire book. The rest, IMO, can be safely ignored. So, I would recommend only reading the three chapters of Book III (on organic development) and the lengthy Appendix VIII (on law). This should suffice for most people. The rest is only useful for a specialized scholar. Or a special kind of masochist."
March 24, 2020
Pedantic yet brilliant, Menger's classic, Investigations, deserves to be studied for its lasting insights on spontaneous order theorizing if not for its (mostly outdated) commentaries on the German Historical School. However, for most readers, a selective reading will do. There are several parts of the book that are historically outdated, terminologically confused, or a combination of both. And the writing is humorously obnoxious. Nobody could accuse Menger of being a "good read." This is partially the result of a rather uneven English translation by Francis J. Nock but it doesn't read much better in original German. And yet, for all its faults, there are parts of the book that absolutely essential for understanding the origins of human social interaction.
The majority of the book deals with fundamental methodological questions as reflected in the "Methodenstreit" with the German Historical School. The particular details of this debate have abated in our collective memory although the general outlines carry some lasting impact. Here, Menger discusses the importance of abstract (theoretical) concepts vs. empirical observations, and the importance of the search for laws vs. the tracking of statistical-historical correlations in theoretical economics. He opposes his own (the "Austrian") notion of the "strict" mode of theoretical economics with what he calls the "realistic-empirical" (the "German" or "historical") mode of analysis. This discussion is somewhat interesting but rather stiff and stuffy. Most of these issues have been debated with improved arguments and clarity in subsequent literature.
For me the best parts of the book are its groundbreaking discussion of the "organic" origin of money, law, markets, and social institutions. Menger combines Burke's critique of "the spirit of innovation" with Karl von Savigny's historical insights into the origins of customary law. Menger insists that there are many facets of common law, custom, and inherited social institutions like money and markets that advance common welfare despite being the result of common will or positive law. These ideas heavily influenced F.A. Hayek's revival of spontaneous order theorizing in the middle of the 20th century. They also presage the insights of contemporary evolutionary economics.
Unlike the rather stuffy and pedantic sections on scientific methodology, his analysis of the organic origins of law and money carries lasting weight beyond the parochial confines of now-forgotten 19th century methodological disputes in the German speaking world. Menger's groundbreaking analysis of the emergence of money and law may draw inspiration from Burke and Savigny but it goes beyond them in the uniqueness of his insights and their analytical clarity.
PS. It should be noted that the best sections on law and money only take up less than half of the entire book. The rest, IMO, can be safely ignored. So, I would recommend only reading the three chapters of Book III (on organic development) and the lengthy Appendix VIII (on law). This should suffice for most people. The rest is only useful for a specialized scholar. Or a special kind of masochist.
The majority of the book deals with fundamental methodological questions as reflected in the "Methodenstreit" with the German Historical School. The particular details of this debate have abated in our collective memory although the general outlines carry some lasting impact. Here, Menger discusses the importance of abstract (theoretical) concepts vs. empirical observations, and the importance of the search for laws vs. the tracking of statistical-historical correlations in theoretical economics. He opposes his own (the "Austrian") notion of the "strict" mode of theoretical economics with what he calls the "realistic-empirical" (the "German" or "historical") mode of analysis. This discussion is somewhat interesting but rather stiff and stuffy. Most of these issues have been debated with improved arguments and clarity in subsequent literature.
For me the best parts of the book are its groundbreaking discussion of the "organic" origin of money, law, markets, and social institutions. Menger combines Burke's critique of "the spirit of innovation" with Karl von Savigny's historical insights into the origins of customary law. Menger insists that there are many facets of common law, custom, and inherited social institutions like money and markets that advance common welfare despite being the result of common will or positive law. These ideas heavily influenced F.A. Hayek's revival of spontaneous order theorizing in the middle of the 20th century. They also presage the insights of contemporary evolutionary economics.
Unlike the rather stuffy and pedantic sections on scientific methodology, his analysis of the organic origins of law and money carries lasting weight beyond the parochial confines of now-forgotten 19th century methodological disputes in the German speaking world. Menger's groundbreaking analysis of the emergence of money and law may draw inspiration from Burke and Savigny but it goes beyond them in the uniqueness of his insights and their analytical clarity.
PS. It should be noted that the best sections on law and money only take up less than half of the entire book. The rest, IMO, can be safely ignored. So, I would recommend only reading the three chapters of Book III (on organic development) and the lengthy Appendix VIII (on law). This should suffice for most people. The rest is only useful for a specialized scholar. Or a special kind of masochist.
July 31, 2024
THE FOUNDATIONAL AUSTRIAN ECONOMIST LOOKS AT "METHOD"
Carl Menger (1840-1921) was the founder of the Austrian School of economics; he also wrote books such as 'Principles of Economics.'
He wrote in the Preface to this 1882 book, "How is the investigation of the WAYS to the goals of research in the field of political economy... to reach a satisfactory solution? How is the interest of the scholarly world to turn seriously to the pertinent problems, if the goals themselves are so completely in question? It is my intention for the present work... to serve this need first. This work... is primarily concerned with determining the nature of political economy, of its subdivisions, of its truth, in brief, with the goals of research in the field of our science. Methodology ... is chiefly to be reserved for future investigations, for which interest will of course be aroused immediately, as soon as some agreement has been reached concerning the basic problems treated here." (Pg. xiv)
He asks, "Now what else do the representatives of the previously characterized doctrine want but to expand theoretical economics, which as an exact science is---can be!---only a theory of the ECONOMIC side of the life of a nation, into a phantom of a universal theory of social phenomena." (Pg. 49)
He suggests, "We have particularly pointed out the errors of those who see a 'historical' science in political economy. Political economy... is a theoretical-practical science. The treatment of it, therefore, as a historical discipline is just as wide of the mark as if one wanted to subordinate the history or the statistics of economy to the methodological points of view of the theoretical or practical sciences." (Pg. 71)
He argues, "Money, an institution serving the common good in the most outstanding sense of the word, can thus, as we saw, come into being legislatively, like other social institutions. But this is no more the only way than it is the most original way that money developed... the origin of money can truly be brought to our full understanding only by our learning to understand the SOCIAL institution discussed here as the unintended result, as the unplanned outcome of specifically INDIVIDUAL efforts of members of a society." (Pg. 135)
Although less of an "economics book" than Menger's "Principles," this book will still be of interest to those studying the foundations of the Austrian School.
Carl Menger (1840-1921) was the founder of the Austrian School of economics; he also wrote books such as 'Principles of Economics.'
He wrote in the Preface to this 1882 book, "How is the investigation of the WAYS to the goals of research in the field of political economy... to reach a satisfactory solution? How is the interest of the scholarly world to turn seriously to the pertinent problems, if the goals themselves are so completely in question? It is my intention for the present work... to serve this need first. This work... is primarily concerned with determining the nature of political economy, of its subdivisions, of its truth, in brief, with the goals of research in the field of our science. Methodology ... is chiefly to be reserved for future investigations, for which interest will of course be aroused immediately, as soon as some agreement has been reached concerning the basic problems treated here." (Pg. xiv)
He asks, "Now what else do the representatives of the previously characterized doctrine want but to expand theoretical economics, which as an exact science is---can be!---only a theory of the ECONOMIC side of the life of a nation, into a phantom of a universal theory of social phenomena." (Pg. 49)
He suggests, "We have particularly pointed out the errors of those who see a 'historical' science in political economy. Political economy... is a theoretical-practical science. The treatment of it, therefore, as a historical discipline is just as wide of the mark as if one wanted to subordinate the history or the statistics of economy to the methodological points of view of the theoretical or practical sciences." (Pg. 71)
He argues, "Money, an institution serving the common good in the most outstanding sense of the word, can thus, as we saw, come into being legislatively, like other social institutions. But this is no more the only way than it is the most original way that money developed... the origin of money can truly be brought to our full understanding only by our learning to understand the SOCIAL institution discussed here as the unintended result, as the unplanned outcome of specifically INDIVIDUAL efforts of members of a society." (Pg. 135)
Although less of an "economics book" than Menger's "Principles," this book will still be of interest to those studying the foundations of the Austrian School.
February 26, 2024
It's a real shame that Carl Menger is disregarded by modern internet Austrians. He was probably the smartest of the bunch and the most reasonable and value-free. His reasoning and writing are impeccable it makes his books a joy to read, it's a shame he didn't write more! Anyways, this is a great book on Austrian economic methodology and I recommend it to anyone interested in the Methodenstreit (a lot of the book contains remarks and history about the German historical school which are a little less useful.) Even if Menger's ideas were picked up by his students, he still wrote his on work the best. I really cannot recommend enough for any armchair economist to pick up this book.
December 12, 2020
Researching a paper revisting the Methodenstreit, in light of a lot of things like Institutionalist economics, the secondary character of marginal utility/productivity in relation to basic institutional structures like property rights, and the ways in which marginal productivity tends to ratify power structures.
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September 23, 2010Investigations into the Method of the Social Sciences with Special Reference to Economics (Studies in Economic Theory) by Carl Menger (1986)
Displaying 1 - 6 of 6 reviews