Karl Popper and Economic Methodology: A New Look
Economics and Philosophy
Discussions of Karl Popper's falsificationist philosophy of science appear regularly in the recent literature on economic methodology. In this literature, there seem to be two fundamental points of agreement about Popper. First, most economists take Popper's falsificationist method of bold conjecture and severe test to be the correct characterization of scientific conduct in the physical sciences. Second, most economists admit that economic theory fails miserably when judged by these same falsificationist standards. As Latsis (1976, p. 8) states, “the development of economic analysis would look a dismal affair through falsificationist spectacles.”
"Karl Popper and Economic Methodology: A New Look," Economics and Philosophy, 1, 1985, 83-99 [reprinted in The Philosophy and Methodology of Economics, Vol. III, Bruce Caldwell, ed., 1993].