Studies in Economic Ethics and Philosophy

Series Editor Peter Koslowski

Springer Berlin Heidelberg New York Barcelona Budapest Hong Kong London Milan Paris Santa Clara Singapore Tokyo

Editorial Board F. Neil Brady James M. Buchanan Richard De George Jon Elster Amitai Etzioni Gerard Gafgen Serge-Christophe Kolm Michael S. McPherson Yuichi Shionoya Philippe Van Parijs

Studies in Economic Ethics and Philosophy

P. Koslowski (Ed.) Ethics in Economics, Business, and Economic Policy (out of print) 192 pages. 1992

P. Koslowski· Y. Shionoya (Eds.) The Good and the Economical Ethical Choices in Economics and Management (out of print) 212 pages. 1993

H. De Geer (Ed.) Business Ethics in Progress? 124 pages. 1994

P. Koslowski (Ed.) The Theory of Ethical Economy in the Historical School 345 pages. 1995

A. Argandona (Ed.) The Ethical Dimension of Financial Institutions and Markets 264 pages. 1995

G.K. Becker (Ed.) Ethics in Business and Society. Chinese and Western Perspectives 232 pages. 1996

P. Koslowski Ethics of Capitalism and Critique of Sociobiology. Two Essays with a Comment by James M. Buchanan 153 pages. 1996

F. Neil Brady (Ed.) Ethical Universals in International Business 255 pages. 1996

P. Koslowski and A. F011esdal (Eds.) Restructuring the Welfare State Theory and Reform of Social Policy 410 pages. 1997

G. Erreygers and T. Vandevelde Is Inheritance Legitimate? Ethical and Economic Aspects of Wealth Transfers 236 pages. 1997

P. Koslowski (Ed.) Business Ethics in East Central Europe 163 pages. 1997

Peter Koslowski (Ed.)

Methodology of the Social Sciences, Ethics, and Economics in the Newer Historical School From Max Weber and Rickert to Sombart and Rothacker

With 2 Figures and 1 Table

" Springer

Professor Dr. Peter Koslowski Centre for Ethical Economy and Business Culture The Hannover Institute of Philosophical Research GerberstraBe 26 D-30169 Hannover Germany

Editorial Assistant: Anna Maria Hauk M.A.

ISBN 3-540-63458-4 Springer-Verlag Berlin Heidelberg New York

Cataloging-in-Publication Data applied for Die Deutsche Bibliothek - CIP-Einheitsaufnahme

Methodology of the social sciences, ethics, and economics in the newer historical school: from Max Weber and Rickert to Sombart and Rothacker; with 1 table I Peter Koslowski (ed.). - Berlin; Heidelberg; New York ; Barcelona , Budapest; Hong Kong; London; Milan; Paris; Santa Clara; Singapore; TokyO: Springer, 1997

(Studies in economic ethics and philosophy) ISBN 3-540-63458-4

This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illus­trations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Viola­tions are liable for prosecution under the German Copyright Law.

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Preface

The volume at hand gives an exposition of the tradition of the Historical School of Economics and of the Geisteswissenschaften or human sciences, the latter in their development within the Historical School as well as in Neo-Kantianism and the sociology of knowledge. It continues the discussion started in the year 1994 on the Older Historical School of Economics and the 19th century German contribution to an ethical theory of economics with the Newer Historical School of the 20th century.

Economists, social scientists, and philosophers examine the contribution of this tradition and its impact for present theory. The schools of thought and their approaches to economics as well as to the cultural and social sciences are examined here not as much for their historical interest as for their poten­tial systematic contribution to the contemporary debates on economic ethics, economics, sociology, and philosophy.

The volume at hand contains the proceedings of the Fourth Annual SEEP-Conference on Economic Ethics and Philosophy in 1996, "Economics and Ethics in the Historical School. Part B: Max Weber, Heinrich Rickert, Max Scheler, Werner Sombart, Arthur Spiethoff, John Commons, Alfred Marshall, and Others", held at Marienrode Monastery near Hannover, Germa­ny, on March 27-30th, 1996, together with several additional invited papers.

It followed the SEEP-Conference on Economics and Ethics "Economics and Ethics in the Historical School of Economics. Achievements and Present Relevance. Part A: The Older Historical School, Schmoller, Dilthey, and Others" held in 1994 and published in 1995 under the title The Theory of Ethical Economy in the Historical School. Wilhelm Roscher, Lorenz von Stein, Gustav Schmoller, Wilhelm Di/they and Contemporary Theory as volume 7 in the series at hand.

In the conferences and book publications on the Historical School, a third and final conference will be held in two sections in autumn 1997 on the topic of "Economics and Ethics in the Historical School of Economics. Part C: Economic Ethics and Theory of Capitalism in the German Tradition of Eco­nomics - Historism as a Challenge to the Social Sciences", concentrating on

PREFACE

the theory of capitalism and on the challenge that historism presents to to­day's economic ethics and business ethics.

The focus of the debate has shifted between the fIrst two volumes on the Historical School. The fIrst volume on the Older Historical School concen­trates on the ethical and historical theory of economics. With this second volume, the emphasis shifts from "ethical economics" to the theory and methodology of economics and of the cultural and social sciences in the Newer Historical School. The normative question loses importance compared to the 19th century and the methodological problems gain in importance in the development of the Historical School from the 19th to the 20th century. The ethical and cultural dimension is, however, still present

In the volume at hand, the debate about the German tradition of econom­ics and of the cultural and social sciences is also extended from the Historical School to other approaches in the German tradition, to Neo-Kantianism, the sociology of knowledge in Max Scheler and Karl Mannheim, and to Georg Simmel's approach to the money economy. As in the fIrst volume, the in­fluence of the Historical School on other traditions of thought, in the volume at hand on the Austrian School of Economics and on American, British, Japanese and Russian economic science, is examined in addition to the pre­sentation of the German theorists.

The conference at the basis of this volume and the whole project have been organized by the Centrum ffir Ethische 6konomie und Wirtschaftskultur des Forschungsinstituts ffir Philosophie Hannover - Centre for Ethical Econ­omy and Business Culture, The Hannover Institute of Philosophical Re­search, Hannover, Germany, with the support of the Fritz Thyssen Stiftung Koln and the Stiftung Forschungsinstitut ffir Philosophie Hannover.

The editor wishes to thank his co-workers at the Centre for Ethical Econ­omy and Business Culture for their assistance in organizing the conference meetings at Marienrode and Anna Maria Hauk M.A. for her assistance in preparing the manuscript.

A special word of gratitude is due the Fritz Thyssen Stiftung whose fI­nancial support made the SEEP-conference in 1996 possible.

Hannover, May 1997 P.K.

VI

Contents

Preface ......................................................................................... V

Pan One

On Max Weber's Contribution

Chapter 1

The Present Relevance of Max Weber's Wertrationalitiit (Value Rationality) RAYMOND BOUDON ....•.......................................•...........•......•.....•. 3

Discussion Summary .................................................................... 30

Chapter 2

Max Weber and Ludwig von Mises, and the Methodology of the Social Sciences RICARDO F. CRESPO .................................................................... 32

Discussion Summary .................................................................... 52

CONTENTS

Part Two

Neo-Kantianism, Wissenssoziologie (Sociology of Knowledge), and the Sociological Theory of Money and Exchange

Chapter 3

Value Theory and the Foundations of the Cultural Sciences. Remarlcs on Rickert GUY OAKES ...................................... ........................................... 59

Chapter 4

The Sociology of Knowledge and Diagnosis of Time with Max Scheler and Karl Mannheim KARL ACHAM .............................................................................. 79

Discussion Summary ................................................................... 113

Chapter 5

Georg Simmel's Contribution to a Theory of the Money Economy RAIMUND DIEIZ ......................................................................... 115

Part Three

Ethics and Economics in Sombart, Spiethoff, Freyer, and in Older German Business Administration

Chapter 6

Ethics and Economics in the Work of We mer Sombart FRIEDRICH LENGER ..................................................................... 147

Discussion Summary ................................................................... 164

VIIl

CONTENTS

Chapter 7

Historical Changes and Economics in Arthur Spiethoffs Theory of Wirtschaftsstil (Style of an Economic System) VIT ANTONIO GIOIA ...................................................................... 168

Discussion Summary ................................................................... 191

Chapter 8

Hans Freyer's Economic Philosophy After World War II VOI.KER KRUSE .......................................................................... 194

Chapter 9

Business Ethics in Older German Business Administration: Heinrich Nicklisch, Wilhelm Kalveram, August Marx UDO NEUGEBAUER ...................................................................... 209

Part Four

Austrian Economics and the Historical School

Chapter 10

Carl Menger and the Historicism in Economics KllCffiRO Y AGI ........................................................................... 231

Chapter 11

The 'Irrelevance' of Ethics for the Austrian School RAIMONDO CUBEDDU .................................................................. 259

Summary of the Discussions on K. Yagi and R. Cubeddu ................... 285

IX

CONTENTS

Part Five

The Historical School and American and British Economists: John R. Commons, Frank Knight, Alfred Marshall

Chapter 12

The Historicism of John R. Commons's Legal Foundations of Capitalism JEFF BIDDLE and WARREN 1. SAMUELS .......................................... 291

Chapter 13

Frank Knight and the Historical School CLAUS NOPPENEY ....................................................................... 319

Discussion Summary ................................................................... 340

Chapter 14

Method and Marshall D. E. MOGGRIOOE ...................................................................... 342

Discussion Summary ................................................................... 370

Part Six

The Historical School and the Development of Economics in Japan and Russia

Chapter 15

Two Developments of the Concept of Anschauliche Theorie (Concrete Theory) in Germany and Japan TETSUSHI HARADA ...................................................................... 375

Discussion Summary ................................................................... 411

x

CONTENTS

Chapter 16

Some Reflections on Ethics and Economics Concerning the German Historical School and Its Reception in Russia VLADIMIR S. AvrONOMOV .......................................................... 413

Discussion Summary ................................................................... 422

Part Seven

The Historical School of Economics and Today's Economics

Chapter 17

The Old and the New Institutionalism in Economics EIRIK G. FURUBOTN .................................................................... 429

Discussion Summary ................................................................... 464

Chapter 18

Moral Leadership in Ethical Economics MARK CASSON ........................................................................... 467

Discussion Summary ................................................................... 485

XI

CONTENTS

Part Eight

Theories of History and of Education, and a Philosophy of the Historical School

Chapter 19

Theories of History and of Education in Germany and France During the 19th Century FRTIZRINGER ............................................................................ 491

Chapter 20

A Philosophy of the Historical School: Erich Rothacker's Theory of the Geisteswissenschaften (Human Sciences) PEI'ER KOSLOWSKI ..................................................................... 510

Discussion Summary ................................................................... 529

Conclusion

Chapter 21

Germany, Japan and National Economics: An Alternative Paradigm of Modernity? DAVID WILLIAMS ........................................................................ 535

List of Authors and Discussants ..................................................... 552

Index of Names ............................................................................ 554

xn