Back to the complete issue
Sunday, 18 August 2019

New research exposes the ideologies of economists

New research exposes the ideologies of economists: Suggesting that economics is anything other than a rigorously objective and deeply scientific discipline can generate quite the controversy among economists. Even after the failure to predict the 2008 financial crisis — for which neoclassical economics was criticized for being too hierarchical, prescribed, and dismissive of alternate perspectives — the mainstream has continued to claim a fervent commitment to neutrality. But research published earlier this year by Mohsen Javdani, associate economics professor at the University of British Columbia, and Ha-Joon Chang, professor at Cambridge University, calls these claims into question, and provides strong evidence for a pervasive ideological groupthink within the discipline.

Smith or Marx? Javdani and Chang surveyed 2,400 economists across 19 countries (92% of which held PhDs) in which respondents were asked to either agree or disagree with 15 statements made by famous economists. The trick? The researchers randomly changed the author of the quote without their knowledge to test whether the mere attribution of a name would alter their opinion on the statement. Quotes made by Adam Smith and Friedrich Hayek, for example, were misattributed to Karl Marx and Sigmund Freud in a bid to detect underlying prejudices. Other participants meanwhile were not given a source attribution, and had to evaluate the statement without knowing its author.

“Strong ideological bias”: The results suggest that ideology does indeed have a tendency to displace scientific objectivity among economists. Respondents were less likely to agree with a statement attributed to a non-mainstream source, and more likely to agree with quotes attributed to Kenneth Arrow and David Levine — regardless of its content. A large majority (82%) of respondents said that a statement should only be evaluated by content rather than author, suggesting that many have a genuine inability to acknowledge underlying biases. Interesting too, is that — despite the overwhelming dominance of neoclassical doctrine in the mainstream — randomized source attributions produced a definite lack of consensus over theory and policy.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.