Background
The phrase “a priori” is derived from the Latin term meaning “from what is before.” In the context of economic theory and philosophy, it is similarly used to describe knowledge or claims that are posited based on inherent reasoning rather than empirical or observed evidence.
Historical Context
The investigation into a priori knowledge can be traced back to classical philosophers such as Plato and Aristotle, who contrasted this form of reasoning with empirical or a posteriori knowledge. Immanuel Kant in the 18th century elaborated on this distinction in his work “Critique of Pure Reason,” which subsequently influenced various domains including economics.
Definitions and Concepts
In economics, “a priori” refers to propositions or theoretical frameworks that are considered valid based on logical reasoning and deductive processes alone. Such concepts require no empirical verification to be accepted as true.
Major Analytical Frameworks
Classical Economics
In classical economics, an a priori approach is often visible in the development of fundamental laws such as the law of demand or the principles surrounding diminishing marginal utility.
Neoclassical Economics
Neoclassical economists also utilize a priori reasoning to build models and theories underpinned by assumptions intended to reflect rational behavior and market equilibrium without needing immediate empirical validation.
Keynesian Economics
While Keynesian economics is largely empirical in nature, certain concepts like the propensity to consume can be argued from a priori reasoning based on general observations of human behavior.
Marxian Economics
Marxist theories sometimes employ a priori conclusions regarding historical materialism and class struggle without requiring continuous empirical evidence to maintain their validity.
Institutional Economics
In institutional economics, the roles of institutions and societal norms are said, a priori, to shape economic behavior and outcomes based on logical assumptions of how such frameworks operate.
Behavioral Economics
Behavioral Economics often starts from a priori assertions about cognitive biases and irrational behavior, which are later examined through empirical studies.
Post-Keynesian Economics
Post-Keynesian approaches derive certain a priori propositions, especially relating to macroeconomic dynamics like the role of demand in driving economic growth.
Austrian Economics
Austrian economists are highly reliant on a priori logic, employing deductive reasoning to articulate theories related to human action, time preference, and the structure of production.
Development Economics
In Development Economics, a priori reasoning might be used to propose that certain policies will improve welfare based on theoretical understandings of economic progress rather than solely empirical findings.
Monetarism
Monetarists make several a priori assumptions regarding the neutrality of money and predictable relationships between monetary supply and economic activities.
Comparative Analysis
The acceptance and application of a priori methods vary across the different economic schools of thought. Classical and Austrian economics notably embrace a priori logic the most, whereas empirical approaches dominate Keynesian and Behavioral features.
Case Studies
Several case studies can illustrate the application of a priori reasoning:
- Classical Economics: The downward-sloping demand curve is often derived a priori before empirical validation.
- Austrian Economics: The theory of time preference, determining that individuals prefer present goods over future ones, is a priori reasoning.
Suggested Books for Further Studies
- “Critique of Pure Reason” by Immanuel Kant
- “Human Action” by Ludwig von Mises
- “An Essay on the Nature and Significance of Economic Science” by Lionel Robbins
Related Terms with Definitions
- A Posteriori: Knowledge or justification is dependent on empirical evidence and experience.
- Deductive Reasoning: The process of reasoning from one or more statements to reach a logically certain conclusion.
- Empirical Evidence: Information that verifies the truth of a claim through observations and experiences.
