Max Weber and Economic Sociology

A bstract .   Peukert (2004 ) argues that Weber's work is only of limited relevance to present-day economic sociology because it incorporates "a rather narrow and static understanding of rationality and the economy." This article disputes that claim. It is argued that Weber differentiates between economic and sociological perspectives on the economy through incorporating uncertainty into the latter. Hence Weber's economic sociology develops the distinction between "before" and "after" perspectives on action, incorporates expectations, and defines capital with reference to time and uncertainty. Furthermore, Weber's analysis of formal rationality presupposes uncertainty. Weber's economic sociology thus assumes a dynamic economy, where uncertainty is prevalent, and formal rationality can reduce uncertainty. Peukert's analysis thus (a) fails to consider Weber's differentiation between economic and sociological investigations, and (b) does not engage with Weber's knowledge of Austrian economics.     

Max Weber as an Economist and as a Sociologist

A bstract In this article I first give a picture of Weber as an economist, mainly by focussing on a text which he distributed to his students when he taught economics in the 1890s. From this text it is, for example, clear that Weber was positive to the use of marginal utility theory in theoretical economics, but also felt that this approach was insufficient, by itself, to analyze empirical phenomena. I then outline Weber's work in economic sociology, relying primarily on Economy and Society and its central Chapter 2 ("Sociological Categories of Economic Action"). The differences between the approaches of economic theory and economic sociology, as seen by Weber, are summarized, and an account is given of some of Weber's most suggestive concepts in economic sociology. In the concluding section the question is raised as to when the analyst, according to Weber, should use economic sociology rather than economic theory, and vice versa. Weber's ideas about a broad economic science–what he termed Sozialökonomik or social economics–are also presented.     

Economics, Sociology, and the "Professional Complex"

A bstract .   This article discusses the relationship between economics and sociology in the context of Parsons's analytical theory of action and systems and his criticisms of orthodox and institutional economics. The article also addresses his view of the importance of the professions to an understanding of the nature of advanced capitalism. The professions are discussed as both an illustration of his theoretical argument and a substantive problem that stimulated the development of his theory. The "professional complex" is an emergent phenomenon in capitalism that modifies its operation and points to the complexity of systems of social action that require to be analyzed without being reduced to one of their elements. This reductionism is evident in orthodox economic theory and also in the more sociologically-oriented approach of institutional economics. Parsons argues that each is a form of what, following Whitehead, he calls the "fallacy of misplaced concreteness." Although Parsons offers a significant critique of dominant approaches in economics, major flaws within his own theory create the appearance that he has simply carried over the deficiencies of orthodox theory into his own general statement of theory. These flaws contribute to major misunderstandings of Parsons's project and, therefore, indicate continuing problems in the relation between economics and sociology.     

Interpenetration Versus Embeddedness

A bstract .   The economy and economics are important fields in Talcott Parsons's work. Parsons's contributions on this subject were, however, mostly critically received in the new economic sociology. In this article, main points of criticism of Parsons's economic sociology will be discussed and the question asked whether the importance of Parsons's works in economic sociology was adequately treated. It will be demonstrated that the critical assessments was based for the most part on theoretical conceptions Parsons developed during his structural-functionalist period. Hence the assessments neglected to discuss the theory of expressive-symbolic communication of affect that Parsons developed in his later systems-functionalist period. However, precisely these later theoretical developments correlate directly with the concept of social embeddedness as a key concept in the new economic sociology. A stronger linking with this development in Parsons's theory could bring economic sociology closer to finding a foundation in action theory, which has been missing up to the present.     

Reconciling Weber and Mises on Understanding Human Action

A bstract .   Max Weber and Ludwig von Mises were two of the 20^th century's foremost theorists of human action. Mises held Weber, his senior by some 17 years, in great esteem and often discussed his theories, even weaving some, such as Weber's model of ideal types, deeply into the fabric of his own social thought. However, at least at first glance, there seems to be a deep rift between the two men's conceptions about the rationality of action. Weber classified "social actions" into several distinct categories, some of which he saw as exhibiting little, if any, rationality. Mises, in contrast, held that all action is rational by conceptual necessity. Various writers have taken their views to be obviously incompatible, among them, Mises himself. This article suggests that the appearance of a conflict is produced by the failure to discern that Weber and Mises were addressing different sorts of questions and constructing frameworks to support different modes of analyzing social phenomena. I contend that, if that divergence of aim is properly understood, then the apparent contradiction will be seen as illusory.     

Franz Oppenheimer's (1864–1943) Social Economic Approach to Health

The idea of scholarly synthesis was central to the founders of the American Journal of Economics and Sociology. Franz Oppenheimer (1864–1943) in fact impersonated the idea of scholarly synthesis. Being the son of a Reformist rabbi—these religious roots provided the impulse for his work—he started out as a physician in the industrial suburbs of Berlin; his diagnosis was that he faced social and not medical disease, which consequently brought him to the study of economics. But unlike many mainstream economists today, he insisted on the necessary cooperation between economists and sociologists, ideally in one person. His chair in Frankfurt, showing his own handwriting, was denominated for economic theory and sociology. In this article, I show his contributions with respect to economic aspects of health. These are not well known. Part of the reason is that the field of health economics as it is taught now is very narrow. Therefore, Oppenheimer's health economic contributions tend to be overlooked.     

Henry George

A bstract . It is contended in Part I that Henry George should be recognized as an original American social theorist. He was a pioneering postmodern contributor to social theory who criticized the linear idea of progress and anticipated Durkheim's concept of the "collective consciousness," He recognized the fateful consequences of the separation of political economy into "economics" and "sociology." These include the loss of moral considerations from political economy , and the rise of a sociology that culminates in the proliferation of meaningless abstractions because it is premised on amoral economic assumptions. His theory' of speculative land value as the cause of civilizations' decline is recapitulated and shown in a larger context. The congruence between George's and Weber's concerns and conceptions is detailed. Part 11 (in the April 1995 issue) concludes by tracing the tragic consequences for modern American social theory, from Spencer to Parsons , that result from confusing the value of commodities with the value of land, of private wealth with social value.     

The Changing Relationship Between Economic Sociology and Institutional Economics

A bstract In his early work. Talcott Parsons severely criticized Old Institutional Economists like Thorstein Veblen and Clarence Ayres. Parsons'main objection was that institutional economics had a misconceived view on the scope of economics: institutions, being the embodiment of values, were the proper subject of sociology rather than economics. By arguing for a clear-cut division of labor between economics and sociology. Parsons legitimated the divide between the two disciplines that came into being in the years to follow. Recently however, the relationship between economic-sociology and institutional economics has changed dramatically. New Economic Sociology (advocated by scholars like Mark Granovetter and Richard Swedberig) rejects the division of labor proposed by Parsons. By-providing substitutes rather than just complements to economics, it tries to counter economic imperialism. This creates significant similarities between New Economic Sociology, Old Institutional Economics and the recent return of institutionalism in economic theory. However, the quest for a division of labor between economics and sociology remains unfinished.     

Parsonian Economic Sociology

A bstract .   This article focuses on Parsonian economic sociology and its actual or potential bridges and contributions to contemporary economics. These bridges are methodological or epistemological and theoretical or substantive ones. A relevant instance of the methodological bridges is socioeconomic holism, epitomized in the systems approach to economy and society. An important case of the theoretical bridges is sociological institutionalism. The holistic systems approach is a pertinent methodological bridge in that it treats the economy as an integral element of society as a larger system, and consequently treats economics as part of the complex of social sciences. Sociological institutionalism is an important theoretical bridge to (especially institutional) economics by virtue of its emphasis on social institutions and their economic significance. Some other methodological and theoretical bridges of Parsonian economic sociology to contemporary economics are also identified and discussed.     

Pareto, Parsons, and the Boundary Between Economics and Sociology

A bstract .   Recent discussions of the separation bUniversity of Bremenetween economics and sociology in the United States highlight the way Talcott Parsons used Vilfredo Pareto's Trattato di Sociologia Generale to propose that economics study logical actions and sociology study nonlogical actions. This article argues instead that in Pareto's treatise: (1) sociology is a synthetic discipline concerned with the study of human society in general; (2) human behavior is nearly always logical from a subjective point of view; and (3) sociology studies both logical and nonlogical behavior judged from an objective viewpoint. Thus, Pareto is an important intellectual ancestor for economic sociology.     

Henry George and Social Theory

A bstract . It was contended in Part 1 (in the January, 1995 issue) that Henry George should be recognized as an original American social theorist. He was a pioneering postmodern contributor to social theory who criticized the linear idea of progress and anticipated Durkheim's concept of the "collective consciousness."
He recognized the fateful consequences of the separation of political economy into "economics" and "sociology." These include the loss of moral considerations from political economy , and the rise of a sociology that culminates in the proliferation of meaningless abstractions because it is premised on amoral economic assumptions. His theory of speculative land value as the cause of civilizations decline is recapitulated and shown in a larger context. The congruence between the concerns and conceptions of George and Weber is detailed.
Part II concludes by tracing the tragic consequences for modern American social theory, from Spencer to Parsons , that result from confusing the value of commodities with the value of land, of private wealth with social value.     

A Socio-Dynamic Understanding of Markets

A bstract    Economic sociology furthers a healthy alternative to price-theory–oriented economics as it sets out to remedy the invisibility of the market within the latter. There is, however, no doubt that such a market-oriented sociology is still in its infancy, given among other issues its inability to shoulder market change. The void thus recognized opens up the potential for a market idea with both social and dynamic properties. There is good reason to believe that such an endeavor would benefit from the constructive blending of economic sociology and Austrian economics. This paper argues that such a "socio-Austrian" connection is in the position to enrich the socioeconomic discourse in general and its market conception in particular.     

Beyond Twin Deficits

A bstract This paper outlines new developments in the sociology of money. It highlights certain aspects of Post Keynesian monetarism and explores Keynesian concepts of emotions relative to economics and economic sociology. Gunnar Myrdal's work on time and money contributes to the discussion. Underdeveloped areas of discourse in both sociology and economics are identified and the resulting superficiality of references to money are examined. Sociology, for example, has historically neglected concepts of future time and money, while economics has paid little attention to emotions and organizations. Removing these orthodox barriers allows economics to be informed by concepts previously relegated to sociology, such as emotions of trust and confidence. This process may induce the disaffected from both disciplines to draw from each other, creating an alternative, and ultimately more satisfactory understanding of money.     

The Economics of Edward Alsworth Ross

A bstract . Edward Alsworth Ross gained fame as a founding father of American sociology; however, he was trained as an economist by Richard T. Ely and made significant contributions in economics before he moved into sociology. Ross was the John Kennneth Galbraith of the popidist-progressive era. The similarity in background, methodology, Weltanschauung , and controversial academic and political styles of these men is discussed. Ross became a cause célébre after his dismissal from Stanford University in 1900 which became a major academic freedom case. Although he was a professional economist for only six years, Ross made original contributions in the areas of taxation, debt management, value theory, uncertainty , and location theory. The discussion of uncertainty as a factor in production precedes Knight's concept of risk and uncertainty and challenges neoclassical policy conclusions in a dynamic environment. His treatment of location theory includes a discussion of agglomeration, externalities, regional dualism, factor endowment, and comparative advantage to explain economic mobility.     

Against Both Private and Public Counterfeiting

A bstract .   In his highly provocative and otherwise brilliant book Defending the Undefendable (1991), Walter Block defends the private counterfeiting of state-counterfeited money. His argument fallaciously relies on an idiosyncratic linguistic definition of the counterfeiter, which is invalid from a legal point of view. In this short response, we analyze private counterfeiting in legal and economic terms rather than linguistic, and show why the behavior of the private counterfeiter should not be considered acceptable, let alone heroic, as claimed by Block. The present article is strongly influenced by Rothbard (1982 ).     

The Economic Sociology of Alfred Marshall:An Overview

A bstract The aim of the paper is to present the economic sociology of Alfred Marshall (1842-1924). Three topics are discussed in the paper: Marshall's ideas of how preferences are generated, the theory of action, and finally the introduction of a fourth factor of production, organization. Throughout the paper Marshall's broad perspective is demonstrated. It is argued that Marshall's approach encourages a closer connection between sociologists interested in economic phenomena and economists. This conclusion is strengthened because of the resemblance of Marshall's analysis to those offered by Max Weber and Thorstein Veblen.     

Economic Sociology in Retrospect and Prospect

A bstract Theory and research in the field of economic sociology have seen steady advancements in recent years. Economic sociology has become a legitimate branch of sociology as well as of economics. Nonetheless, the treatment of economic sociology in both modern economics and sociology leaves much to be desired. Various formal-terminological confusions and theoretical-substantive misconceptions are still present in the field. The present article advances some proposals for remedying this situation. In particular, it provides clarifications of and amendments to the current treatment of issues, such as the relationship between economics and sociology, the character of economic sociology, its links to economic theory, socio-economics, and rational choice theory, as well as the question of the old versus the new economic sociology. Special emphasis is placed on the relationships between economic sociology and rational choice theory, given the latter's claims to universality. It is hoped that the article will thereby redress certain inconsistencies found in some previous treatments of economic sociology as well as stimulate further refinements.     

Economic Sociology Reformulated

A bstract Previous theoretical and empirical research on economic sociology leaves much to be desired in terms of consistently defining the agenda and objectives of the discipline As a result, economic sociology often appears to lack a clearly defined mission and purpose This is epitomized by various failures to establish adequate epistemological relations of the proper realm of economic sociology with those of economics and sociology, and especially with the domain of rational choice theory This failure is compounded by a misplaced distinction between the subject matter of economic sociology and that of sociological economics, or socioeconomics And some recent works in the discipline (including the ambitious Handbook of Economic Sociology ) have not helped to remedy this situation In this paper, we try to address this situation by suggesting some reformulations of the subject matter of economic sociology in relation to those of related disciplines In addition, we attempt to redefine the field of the sociology of the market which is seen as the focal specialty of economic sociology     

The Complex Taxonomy of the Factors

A bstract .   Contemporary neoclassical economics has reduced factor analysis to two homogenous inputs, K and L. This excessive simplification has led to a deficient understanding of economic reality and a misunderstanding of concepts such as the producer surplus. This paper presents a taxonomy of the factors, including the complexity of natural resources. A better understanding of the role that factors play will enhance an understanding of economic reality and policy.