Is Neoclassical Economics Scientific Knowledge Detached from Ethics? A Kantian Answer,an Institutionalist Alternative

Abstract

This paper aims to criticize the common idea which sustains that current neoclassical economics is detached from ethics, and therefore is scientific knowledge. Using Kantian critical philosophy, we argue, on the contrary, that neoclassical economics is based on certain ethical postulates, and thus it cannot obtain the status of science. Although ethics is but one of the many institutions that affect economics, it plays a major role in setting the basis on which to build its entire theoretical structure. Approaching the analysis from institutionalism places ethical issues at the forefront of economic debate, thus opening the door to future dialogue between disciplines and analytical approaches.