ABSTRACT

Many factors contributed to the reorganization of political economy in Germany from the time that cameralism flourished up until the establishment of the German Historical School of Economics (GHSE). This chapter explains that a number of important features of the GHSE were deeply influenced by cameralism and the Historical School of Jurisprudence, including the development of the collectivist approach, the use of statistics, the development of public finance and public administration, support for institutional progress, the idea of ethical and historical economics, and the concept of a national economy. Understanding the intellectual sources of the GHSE could provide insight into why the development of the discipline of economics in the US during the 20th century created a disconnect between modern economics and its origins, despite the influence of the GHSE.