The Economic Thought of David Hume: A Pioneer in the Field of Law & Economics

Abstract

David Hume's views on economics are expressed in his Essays, Moral, Political and Literary, Part II (1752). He was a contemporary of Adam Smith and read Smith's The Wealth of Nations shortly before his death. Some commentators have suggested that Hume exercised some influence over Smith's views on economics. Other commentators are not so sure.

Hume's commentators over the last 200 years have emphasized his theory of knowledge, doctrine of causality and belief, theory of morals and historical writing. His views on economics have been relatively neglected. The purpose of this essay is to summarize and clarify Hume's views on economics.

Keywords: Hume, Adam Smith, trade, monetary theory, Chicago School, specie-flow doctrine, interest theory

JEL Classification: B12, B31, K10