Lachmann and Veblen: Institutions versus Neoclassicism

In this study, an intellectual relationship endeavour is constituted between Lachmann and Veblen through the lens of institutions. Their mutual perspective lies in their efforts to understand economics through institutions, diverging from orthodox neoclassical economics. Simultaneously, the authors...

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Bibliographic Details
Main Author: Adem Levent
Format: Article
Language:English
Published: Istanbul University Press 2025-02-01
Series:İktisat Politikası Araştırmaları Dergisi
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Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/24653FF3EA0A4EE5AFBCDD0B2F874B65
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Summary:In this study, an intellectual relationship endeavour is constituted between Lachmann and Veblen through the lens of institutions. Their mutual perspective lies in their efforts to understand economics through institutions, diverging from orthodox neoclassical economics. Simultaneously, the authors share a similarity in their ways of defining institutions. The foundations of institutions, as conceived by Lachmann in the plans within the human mind and the institutions expressing Veblen’s habits of thoughts and life, are closely aligned. This proximity established through institutions also provides an opportunity to address the enduring problem of the actor-structure dilemma in social theory. In other words, the article offers a different resolution to the ongoing debate between methodological individualism and methodological holism in social theory through the developed connection between Lachmann and Veblen. Furthermore, the hermeneutic approach, which has found limited traction in economics, persists firmly with Lachmann and Veblen. The hermeneutic approach, overt in Lachmann and more implicit in Veblen, presents another possibility for establishing an intellectual relationship between the two scholars.
ISSN:2148-3876