How Economics Forgot History: The Problem of Historical Specificity in Social Science (Economics & Social Theory) [Paperback]

'Hodgson's erudition is deeply impressive. Overall he must know more than anyone in the world about the roots of historical and institutional economics. In this volume the importance of thinking about institutions comes across very clearly, as does the contribution of the old institutional economics to this endeavour. This is an important book, which clears the ground for a new, constructive approach to economics that can contribute to a deeper understanding of the world in which we live.' - Professor Paul Omerod, Volterra Ltd., UK; 'In this outstanding, thought-provoking and lucidly written book, Geoffrey M. Hodgson explores the important relationship between economic theory and history, challenging the universalistic doctrine of neoclassical economics. He succeeds impressively...The book provides effective guidance for economists who are prepared to rethink theory formation in a novel way.' - rofessor Kurt Dopfer, University of St. Gallen, Switzerland; 'This is a splendid piece of intellectual history. Hodgson breathes new life into past ideas and the issues surrounding them. These revived ideas are terribly important for the current generation of economists, both mainstream and heterodox. It is the first book I have seen that gets the complex story of historismus into a proper intellectual context.' - Professor Paul Dale Bush, California State University at Fresno, USA; 'This is an impressive study relating the German historical school to institutional and modern economic theory. It shows that Frank Hahn was wrong: the insights of history have not been absorbed; economists need to know the history of ideas and the history of the economy.' - Professor David Colander, Middlebury College, Vermont, USA

In arguably his most important book to date, Hodgson calls into question the tendency of economic method to try and explain all economic phenomena by using the same catch-all theories and dealing in universal truths. He argues that you need different theories to analyze different economic phenomena and systems and that historical context must be taken into account.

Hodgson argues that the German Historical School was key in laying the foundations for the work of the pioneer institutional economists, who themselves are gaining currency today; and that the growing interest in this school of thought is contributing to a more complete understanding of socio-economic theory.

Geoffrey M. Hodgson is a Research Professor in Business Studies at the University of Hertfordshire. He has published widely in the academic journals and his previous books include Economics and Utopia (Routledge, 1999)