STEVE KEEN

Dr 'Steve Keen' is an Associate Professor in economics and finance at the University of Western Sydney. He criticizes both modern neoclassical economics and (some of) marxian economics as inconsistent, unscientific and empirically unsupported. The major influences on Keen's thinking about economics include Hyman Minsky, Piero Sraffa and Joseph Alois Schumpeter. His work has been published in academic journals, like ''Physica A''.

Contents

Keen's critique of neoclassical theory

Books

See also

External links

Keen's critique of neoclassical theory

Keen has presented a mathematical critique of the neoclassical marginal pricing theory[1]. Keen's full-range critique of neoclassical economics is contained in his book "Debunking Economics." Some reviewers of the book, neoclassical or otherwise, contend that Keen has not shown what he claims and that he is making exaggerated claims for his research, most of which is based on a misunderstanding of economic theory. In support of his results, Keen cites empirical research beginning with the Eiteman & Guthrie (1952) paper on marginal costs and marginal revenue in real firms, which shows that 89% of firms do not behave as the neoclassical model would suggest. The latest research on this includes Alan Blinder's research on marginal costs and marginal revenue in real firms, which is also used by Keen to support his critique.
In a survey of various schools of heterodox economics. Keen writes: ''None of these is at present strong enough or complete enough to declare itself a contender for the title of ‘the’ economic theory of the 21st century.'' In his book "Debunking Economics", Keen asserts, that the neoclassical research program is degenerative, because it does not generate new knowledge and has instead a growing belt of protective auxiliary hypotheses to shield its core beliefs from critique. Keen's point of view can be summarized as follows: A paradigm shift in mainstream economics, specifically Neoclassical Economics, has to take place, as soon as at least one of the competing schools of economic thought is complete enough to stand alone as an economic theory.

Books

Steve Keen's books include:

★ Debunking Economics: The Naked Emperor of the Social Sciences (2001, Pluto Press Australia) ISBN 1-86403-070-4
''Debunking economics'' has the interesting feature of being written for a lay audience, but with an accompanying web site which provides more detailed mathematical expositions for experts.

★ Co-editor of: ''Commerce, Complexity and Evolution: Topics in Economics, Finance, Marketing, and Management: Proceedings of the Twelfth International Symposium in Economic Theory and Econometrics.'' New York: Cambridge University Press. ISBN 0-521-62030-9.

See also

★ Heterodox Economics

★ Paul Ormerod

★ Eiteman & Guthrie (1952): ''The shape of the average cost curve'', American Economic Review 42: 832-838.

★ Blinder, Alan; et al. (1998): Asking about prices: a new approach to understanding price stickiness, Russell Sage Foundation, New York.

External links

★ Academic website

★ Website of "Debunking Economics"

★ There is madness in their method A sample chapter.

★ Keen's Physica A article on the invalidity neoclassical economic theory of the firm.

★ A more detailed presentation of the contents in the Physica A article.

★ A news feature on an Econophysics paper co-written by Prof. Keen appeared in the journal Nature, accompanied by an editorial.