A Sociological Theory of Economic Administration

tN I935 Adolph Lowe demonstrated, in a brilliant analysis, that | economics is based on sociological premises to such an extent that a Xgeneral theory in purely economic terms is logically impossible. He concluded that what the economist needed above all was a comprehensive sociological theory which would provide 'insight into the structure of rcal society'.l But the problem was soon overshadowed by the success of Keynes' major work, published a year later, which did, after all, seem to oSer precisely what Lowe had said was impossible: a 'general' economic theory. Since then a great many increasingly eclectic studies in 'applied economics' have accumulated. But they neither verify any theoretical propositions, nor go much beyond descriptive elaborations of common sense. So once again economics is faced with Lowe's problem. In so far, Talcott Parsons and Neil J. Smelser's Economy and Society (London, Routledge and Kegan Paul, I956) has appeared at the right time. In attempting to prove that economic theory is only a 'special case of the general thoory of social systems' (pp. 6 f., 295-306), the authors had, however, to ignore the most highly formalized (chiefly mathematical) branch of economic analysis, originating with Cournot, Walras and Jevons-this is admitted on p. 23. They have concentrated on the less abstract area of applied theories which have a bearing, often remotely, on economic policy. This field is remarkably heterogeneous.2 But despite that, the translation of economic into sociological criteria achieves a considerable measure of uniformity, due to the combined result of three central concepts: 'boundary process', 'institution' and 'collectivity'. Unfortunately, it is left largely to the reader to discover for hinlself how in fact these concepts are interrelated. To assess their significance, a broad clarification, rather than a detailed discussion, is therefore required

Administration (probate law · Political science · Social science · Sociological theory · Sociology · Economic theories and models · Economic Theory and Institutions · Law

• Discoveries, trends and complexity

  Open Access•Peter Lassman•History of the Human Sciences•1992

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