The normative purpose of economic ‘science’: Rediscovery of an eighteenth century method

Buchanan, 1969, 47 Buchanan, 1978, Professor Alchian on Economic Method Wicksteed, 1910 Stigler, 1980, The Economist as Preacher Of course, institutions may still be compared, but by reference to other criteria. For example, even in this world of publicly-motivated individuals there is the question of how those individuals obtain the information necessary to enable them to act in accordance with their assumed norms. Interestingly enough, the market has virtues in this area as well, a point emphasized strongly by Hayek. See F.A. Hayek, ‘The Use of Knowledge in Society’, (1945) 35 Am. Econ. Rev., 519–530. With imperfect information, it is reasonable to expect that perceptions of the ‘public interest’ will differ. Then one can and must distinguish between the explicit private pursuit of public interest, and the emergence of ‘optimal’ outcomes as an ‘unintended consequence’ of the interactions within the institutional structure. Smith, 1976, 30 Brennan, 1980