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The discussion between Geoff Hodgson, Brian Eggleston, Randall Wray, and
others is extremely interesting. John Henry seems to have opened a topic on
the rise of neoclassicism. Let me briefly intervene in the last point only.
John talks on the emergence of neoclassical economics totally from
externalist point of view. Philip Mirowski has given another example by his
book "More Light than Heat." I do not object to this interpretation,
because the emergence of neoclassical economics, or the neoclassical turn
of economics cannot be explained by a single reason. However, if economics
is a science (or at least a system of logical reasoning and empirical
knowledge), we should also see internal logic of the turn: from classical
to neoclassical economics. Mainstream economists look this change as a
natural development from a more primitive to a more sophisticated stage of
economic analysis, or a change of analytical tools. Heterodox economists
cannot accept this internalist interpretation, because the neoclassical
turn of economics is, so to speak, a degradation of economic science.

This situation explains why heterodox economists tend to give externalist
explanations. John's explanation is typical in this style. However, in my
opinion, pure externalist interpretation is weak as an explanation of why
neoclassical turn occurred in economics. It is necessary to find a deeper
explanation than the analytical tool development thesis. I think this is
possible. I have found an example mostly by chance, because I have been
working on international trade theory. John Stuart Mill, despite he wanted
to be a loyal disciple of David Ricardo, was obliged to "revert to the
principle of demand and supply" which was "anterior to that of cost of
production."

For more details, see my paper: An origin of neoclassical economics: Mill'
"reversion" and its consequences, 2017. If someone want to read this,
please send me an e-mail to
[log in to unmask],
I will be happy to share my paper this them.

Yoshinori Shiozawa
Professor Emeritus, Osaka City University
Former president of the Japan Association of Evolutionary Economics