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November 13, 2007
Re: Two cheers for Bob Tollison
Unlike Ed, I wasn't lucky enough to have had Bob Tollison as a professor, but I was heavily influenced by his work too. His brand of in-your-face applied micro/public choice was an inspiration to me as a student. Also I think his 1985 Presidential Address to the Southern Economic Association is as fine an essay on the methodology of economics as I've ever read. My favorite part: Consider a fanciful example. Suppose that an economics journal offers a prize for a documented refutation of the law of demand. A young economist has an ambitious idea - why not produce a refutation in the local market for toothpicks? That is, enter this market, behave in contradiction to the law of demand, observe and write up the results, and submit them for publication. While all this is quite plausible, at least in a short period of time before toothpick producers get wind of the economist's behavior and raise their prices until his demand curve is negatively sloped, the journal editor would not accept the paper. The paper could show a "verified" upward sloping demand curve for toothpicks in Floyd, Virginia, ceteris paribus, but the editor would reject it and with good reason. The rejection letter would read like this.Dear Professor X: ATSRTWT: Economists as the Subject of Economic Inquiry by Robert D. Tollison Posted by Robert Lawson at 09:19 AM in Economics
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The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith
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