EconPapers    
Economics at your fingertips  
 

Reshaping Standard Microeconomics for Political Action: Kenneth J. Arrow and Thomas C. Schelling’s Rand Corporation Projects on Racial Issues

Cléo Chassonnery-Zaïgouche () and Lauren Larrouy

No 2014-18, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: The paper focuses on Arrow statistical discrimination theories and Schelling’s models of segregation, and how their work can be considered as an illustration of “the introduction of the same policy tools [as war game theory] into domestic politics in Lyndon B. Johnson’s Great Society Program” (Amadae, 2003: 10). In both contributions, abstract and formal theory serves as “a public policy tool” (Amadae, 2003: 9). We underline how (i) certain methods employed within RAND Corp. during the Cold War like its “interdisciplinary approach” or its “system analysis” are applied in Arrow and Schelling’s work on discrimination, and (ii) how certain tools which became the core of neoclassical economics are at the same time pervasive and challenged in Arrow and Schelling’s respective work. In that sense, our analysis is slightly different from Amadae’s one (2003) who sees in their work the illustration of the domination of rational choice theory in neoclassical economics. In our opinion, the two contributions have in common to be embedded in a neoclassical framework and illustrate a movement to amend this general framework for policy purpose. The paper discusses the epistemological status of Arrow and Schelling works, i.e. how they shape a new trend of scientific knowledge, by their specific methodologies, and how their works stress the usual dichotomy between economics as a normative or a positive science. Methods have consequences on political actions and Policy recommendations. The tiny threshold between prediction and explanation in Arrow and Schelling’s works imply a reflection on their epistemological status, especially because their respective amendments to standard theory are driven by the necessity of policy recommendations.

JEL-codes: A11 A12 B21 B41 D01 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2014-06
New Economics Papers: this item is included in nep-his and nep-hpe
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2014-18.pdf First version, 2014 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.gredeg.cnrs.fr:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2014-18

Access Statistics for this paper

More papers in GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France Contact information at EDIRC.
Bibliographic data for series maintained by Patrice Bougette ().

 
Page updated 2022-11-28
Handle: RePEc:gre:wpaper:2014-18