Aggregates and Methodological Individualism: A Relational Approach

New Perspectives on Political Economy 9(1) 2013: 5-28

32 Pages Posted: 7 Sep 2012 Last revised: 16 Aug 2014

See all articles by Alexander William Salter

Alexander William Salter

Texas Tech University - Rawls College of Business; American Institute for Economic Research

Date Written: September 1, 2011

Abstract

Methodological individualism, coupled with radical subjectivity, leads naturally to skepticism regarding the objective theoretical value of economic aggregates. I restate the role of aggregates in the methodological individualist paradigm, focusing on the Austrian tradition, in a way consistent with Hodgson’s (2007) critique and emphasize belief and meaning as the relevant channel through which these aggregates operate. Viewing aggregates this way leads to a relational approach which is consistent with formulations made by scholars working within in the methodological individualist paradigm and answers Hodgson’s call for recognition of the importance of interactive relations between individuals.

Keywords: methodological individualism, aggregation, subjectivism, belief, meaning, Austrian economics

JEL Classification: B4, B53

Suggested Citation

Salter, Alexander William, Aggregates and Methodological Individualism: A Relational Approach (September 1, 2011). New Perspectives on Political Economy 9(1) 2013: 5-28, Available at SSRN: https://ssrn.com/abstract=2142963 or http://dx.doi.org/10.2139/ssrn.2142963

Alexander William Salter (Contact Author)

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States

HOME PAGE: http://awsalter.com

American Institute for Economic Research

PO Box 1000
Great Barrington, MA 01230
United States

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