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
I will be happy to share my paper this them.
Professor Emeritus, Osaka City University
Former president of the Japan Association of Evolutionary Economics