Economic Explanation

Author: Zhang Wuchen
Publisher:
Publish Date: 2002-05-01
Features: The book The Economic Explanations collects 25 articles published by the professor in various magazines from 1968 to 1998, basically encompassing his academic thoughts. In 1982, during his inaugural speech at HKU, the professor advocated: "Let us be the pioneers in economic explanation." This collection is precisely the fulfillment of this idea. The professor firmly believed that economics must be a science of explaining phenomena, and only economic theories that can explain phenomena possess vitality. Among the wave of economic explanation that rose in the 1950s and 1960s, the professor was undoubtedly one of the outstanding pioneers. In the manuscript of The Economic Explanations, Zhang Wuchen incorporated a novel, important, widely interpreted, yet content that all current textbooks had delayed in including—the research findings of "New Institutional Economics," specifically the theories of property rights and transaction costs. These contents are certainly one of the most brilliant parts of The Economic Explanations. By comparing the relevant chapters with the conclusions of Coase and Alchian, readers will not find it difficult to see whether "the green" surpasses "the blue." Another feature of the theoretical system in The Economic Explanations is its logical coherence, seamless continuity, and lack of a distinction between "micro" and "macro." Most of the once-popular macroeconomic theory models have been overturned by facts. Since The Economic Explanations only elaborates on economic principles that remain steadfast to this day and does not serve as an exhibition hall for the history of economic thought, it is more reliable than current economics textbooks based on the "Samuelson system." In the book, Zhang Wuchen utilizes the scientific philosophy achievements of Carnap and Popper to handle economic concepts and construct the economic system. He adheres to the scientific principles of logical empiricism, rejects academic speculation, and stands in stark contrast to scholars who are pretentious and boastful. Zhang Wuchen provides us with a clean academic model, from which readers can learn how a person who has received solid scientific training cools their emotions, clearly distinguishing between "whether it is good or bad" (value judgment), "how to do it" (policy recommendations), and "why" (scientific explanation). Zhang Wuchen cites numerous examples, especially those rooted in Asia. Economics books filled with mathematical symbols are abundant; however, those that win through real-life examples remain scarce—undoubtedly, The Wealth of Nations is one, and The Economic Explanations will be another.
Author Bio:
● Zhang Wuchen was the inaugural holder of the Arnold C. Harberger Chair and is a polymath. In 1967, he obtained his Ph.D. in philosophy from the University of California, Los Angeles. He taught at the University of Chicago before becoming a professor of economics at the University of Washington and the University of Hong Kong. In 1997, he served as president of the (American) Western Economic Association. In addition to researching contracts and new institutional economics, Zhang is also a renowned photographer, calligrapher, and essayist, as well as an art enthusiast who collects paintings, calligraphy works, ancient jade, inkstones, and antiques.