Conceptual Progress in Economics

How to recognise scientific progress and policy relevance of theories in the practice of economic theory makers? To answer this question, we depict what economists have in fact been doing. Starting point is the essentialist approach of the Austrian capital theorist Eugen von Böhm-Bawerk. As to progress in science, instrumentalism and realism are well known philosophical positions. Despite self-conceptions by modern economists to the contrary, they are inclined toward realism; many appear to even have an implicit taste for essentialism. Thus, abstraction of the supposed 'fundamental' aspects of economic reality turns out to be the engine for research of the supposed causes of economic phenomena. But abstraction is not the same as the use of ceteris paribus clauses. This investigation also brings clarity to the much debated difference between abstraction and idealisation. Lastly, this thesis defends the essentialist practices in economics while trying to do justice to the fact that knowledge can only be indexed to conceptual schemes.