While neo-classical analysis works well for studying impersonal exchange in markets, it fails to explain why people conduct themselves the way they do in their personal relationships with family, neighbors, and friends. In Humanomics, Nobel Prize-winning economist Vernon L. Smith and his long-time co-author Bart J. Wilson bring their study of economics full circle by returning to the founder of modern economics, Adam Smith. Sometime in the last 250 years, economists lost sight of the full range of human feeling, (...) thinking, and knowing in everyday life. Smith and Wilson show how Adam Smith's model of sociality can re-humanize twenty-first century economics by undergirding it with sentiments, fellow feeling, and a sense of propriety - the stuff of which human relationships are built. Integrating insights from The Theory of Moral Sentiments and the Wealth of Nations into contemporary empirical analysis, this book shapes economic betterment as a science of human beings. (shrink)

In Bettering Humanomics: A New and Old Approach to Economic Science, Deirdre Nansen McCloskey offers a critique of contemporary economics and a proposal for a better humanomics. McCloskey argues for an economic science that accepts the models and mathematics, the statistics and experiments of the current orthodoxy, but also attests to the immense amount we can still learn about human nature and the economy. From observing human actions in social contexts, to the various understandings attained by studying history, (...) philosophy, and literature, McCloskey presents the myriad ways in which we think about life and how we justify and understand our actions in a synergistically human approach towards economic theory and practice. (shrink)

Paolo Silvestri interviews Deirdre Nansen McCloskey on the occasion of her latest book, Bettering Humanomics: A New, and Old, Approach to Economic Science. The interview covers her personal and intellectual life, the main turning points of her journey and her contributions. More specifically, the conversation focuses on McCloskey’s writings on the methodology and rhetoric of economics, her interdisciplinary ventures into the humanities, the Bourgeois Era trilogy with its history of the ‘Great Enrichment’, her liberal political commitments, and the value (...) and meaning of liberty, equality, and solidarity. Finally, the conversation returns to McCloskey’s ‘humanomics’ approach: an economics with the humans left in. (shrink)

Among the various attempts to re-humanize economics, the ‘humanomics’ proposed by Vernon Smith and Bart Wilson stands out. We contribute to the “humanomics project” by mapping its territory – core, periphery and frontiers – with an eye, also, on future explorations. First, we critically study the core: Smith and Wilson’s interpretation and experimental application of Adam Smith’s ideas on beneficence and injustice. Using the distinction between reciprocal cooperation and reciprocal kindness, we provide a different interpretation of Smith which (...) helps to better understand the difference between exchange and trust, based on mutual advantage, and (reciprocal) beneficence proper. Secondly, we turn to the periphery, going beyond the ‘dichotomous representation of the human personality’ – personal-social/impersonal-economic – and showing other possible worlds: nuances of humans equally worthy of study, such as the personal-economic and the impersonal-social. Thirdly, we argue that the humanomics project should keep its frontiers as open as possible to human diversities and frailties. (shrink)

In Beyond Positivism, Behaviorism, and Neoinstitutionalism in Economics, Deirdre Nansen McCloskey zeroes in on the authoritarian cast of recent economics, arguing for a re-focusing on the liberated human. The behaviorist positivism fashionable in the field since the 1930s treats people from the outside. It yielded in Williamson and North a manipulative neoinstitutionalism. McCloskey argues that institutions as causes are mainly temporary and intermediate, not ultimate. They are human-made, depending on words, myth, ethics, ideology, history, identity, professionalism, gossip, movies, what your (...) mother taught you. Humans create conversations as they go, in the economy as in the rest of life. In engaging and erudite prose, McCloskey exhibits in detail the scientific failures of neoinstitutionalism. She proposes a "humanomics," an economics with the humans left in. Humanomics keeps theory, quantification, experiment, mathematics, econometrics, though insisting on more true rigor than is usual. It adds what can be learned about the economy from history, philosophy, literature, and all the sciences of humans. McCloskey reaffirms the durability of "market-tested innovation" against the imagined imperfections to be corrected by a perfect government. With her trademark zeal and incisive wit, she rebuilds the foundations of economics. (shrink)

This paper discusses commerce in Early Confucianism. It argues that the virtuous Confucian agent engages with the world in different ways, including in commerce – it is another way of acting with virtue. This conception is compared with two roughly contemporary approaches in economics, the thought of Wilhelm Röpke and the Humanomics project by Vernon Smith. In both, virtue is constitutive to commerce. However, they differ substantially in the exact relationship between virtue and commerce. While in Early Confucianism commerce (...) is a way for the agent to unfold and cultivate virtues, in Röpke, virtues are a corrective to the utilitarianism in commerce. In Humanomics, agents engaging in commercial relations find shared virtues. (shrink)