Aggregates and Methodological Individualism: A Relational Approach

Abstract:     
Methodological individualism, coupled with radical subjectivity, leads naturally to skepticism regarding the objective theoretical value of economic aggregates. I restate the role of aggregates in the methodological individualist paradigm, focusing on the Austrian tradition, in a way consistent with Hodgson’s (2007) critique and emphasize belief and meaning as the relevant channel through which these aggregates operate. Viewing aggregates this way leads to a relational approach which is consistent with formulations made by scholars working within in the methodological individualist paradigm and answers Hodgson’s call for recognition of the importance of interactive relations between individuals.

Number of Pages in PDF File: 32

Keywords: methodological individualism, aggregation, subjectivism, belief, meaning, Austrian economics

JEL Classification: B4, B53

working papers series