Paradigmatic Typology of Economic Schools and the Role of Transaction Cost in the Paradigm Shift

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HEIDARY Somayeh; ALMASI MOJTABA; FATAHI SHAHRAM

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Journal Paper

Paper Information

Journal: Methodology of Social Sciences and Humanities Year:2021 | Volume:27 | Issue:107 Page(s): 63-82

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Information Journal Paper

Title

Paradigmatic Typology of Economic Schools and the Role of Transaction Cost in the Paradigm Shift

Author(s)

HEIDARY Somayeh | ALMASI MOJTABA | FATAHI SHAHRAM | Issue Writer Certificate

Keywords

Paradigm

Transaction Cost

Typology

Paradigm Shift

Ontology

Epistemology

Methodology

Abstract

The Paradigm includes a set of values, beliefs and perceptions of reality with theories based on them, which uses a distinctive Methodology to achieve research goals. The dominant Paradigms in the humanities are Positivism, Interpretation, Criticism, Complexity and Postmodernism. This research seeks to understand the meta-theoretical and Paradigmatic Typology of economic schools by using the documentary and content analysis. The results show that Neoclassical is positivist. Austrian tendencies are in the region of complexity, but the use of hermeneutics puts New Austrians closer to the interpretive Paradigm, while the older part tends to be a Positivism. The existence of variable structures in the Post-Keynesian and Evolutionary indicates the influence of the Complexity. OIE is dominated by the Criticism because of its emphasis on domination and dialectics. NIE uses the principles of Neoclassical and OIE as opposing currents. The elimination of this inconsistency has been due to the invention of Transaction Costs, which provides the basis for a Paradigm shift from Positivism and Criticism to Complexity. The Transaction Cost is the unit of analysis and the connection of institutions to economic performance, the use of which will lead to objectivity and generalization.

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