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The theory of patronized goods in the optics of comparative methodology

Aleksander Rubinstein ()
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Aleksander Rubinstein: Institute of Economy, Russian Academy of Science

International Journal of Entrepreneurial Knowledge, 2013, vol. 1, issue 1, 4-32

Abstract: The present study focuses on the methodological aspects of the Theory of patronized goods, modifications of two liberal principles of the Austrian school, incorporated into mainstream economic theory - methodological subjectivism and methodological individualism, as well as the standard axiom of homogeneity of economic agents. The paper discusses some modifications to these assumptions and their various combinations that form the basis of a number of theories that justify state activity. Analysis of the basic premises of the theory of public goods and merit goods, and the concept of libertarian paternalism allowed the author to suggest that from the point of view of methodology, these theoretical constructions are particular cases of the Theory of patronized goods based on methodological subjectivism, methodological relativism and the principle of heterogeneity. In the Theory of patronized goods they are integrated in the form of supposition that every person depending on the level of his understanding and his value judgments acts subjectively optimally in the given circumstances; in the principle of utility complementarity, according to which there may be a group interest alongside with the individual interests of the group members; and in the form of two irreducible to each other branches of formation of public interest – market and political.

Keywords: Patronized goods; public goods; meritoric; libertarian paternalism; methodological subjectivism; methodological relativism; heterogeneity; normative interests (search for similar items in EconPapers)
JEL-codes: D01 (search for similar items in EconPapers)
Date: 2013
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