ABSTRACT
Given the comfortable compromise between those interested in positive economics and those interested in the mathematics-based model-building techniques, it is not surprising that few economists today will be found waving the banner of ‘economic positivism’ or ‘positive economics’ or even ‘positive science’. Thus the absence of flag-waving does not mean that economic positivism is dead. Positive economics is now so pervasive that virtually all competing methodological views (except the most defeatist hard-core mathematical economics) have been eclipsed. The absence of methodology flagwaving is thus easy to understand. There is no territory to dispute and thus no need to wave one’s flag. The dominance of economic positivism is abundantly evident in current textbooks. As I noted in Chapter 1, almost every introductory textbook explains the difference between ‘positive’ and ‘normative’ economics and tries to make it clear that economists are interested in positive economics and capable of fulfilling the demands of economic positivism. Why should economists be interested in positive economics? And has economics fulfilled the demands of economic positivism? These two questions will be the focus of this chapter.1
