Writing a pluralist subject benchmark statement for economics 

 

This is a page launched by the Association for Heterodox Economics (AHE) with the purpose of writing a pluralist subject benchmark statement for economics (SBSE).  The existing benchmark statement for economics can be consulted here:  http://www.qaa.ac.uk/Publications/InformationAndGuidance/Documents/Economics.pdf.  The AHE believes that the current statement is monist in its effects, and that it should be replaced by a pluralist SBSE.  The SBSE was revised in 2006 and the submission of the AHE to that review can be seen here:  http://wwwdocs.fce.unsw.edu.au/economics/Research/Heterodox/AHE_Economics_QAA_benchmark.pdf.  A short statement of what we find problematic about the SBSE can be found here.  

 

The text of the benchmark statement is reproduced here so that it can be edited up to transform it into a pluralist statement.  Please send me an email (a.denis@city.ac.uk) to ask for access.  I suggest we keep the existing text for the time being and add edited text in another colour, let's say red.  We can also add comments not intended for inclusion in the text - see the comments I've added below in green blue.  

 

 

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1 Introduction

 

1.1 This document sets out the subject benchmark statement for economics. It

defines the distinctive nature of the subject, the aims of a typical degree programme,

the subject knowledge and skills of an economist, methods of learning and assessment

and finally a description of two benchmark standards.

 

[I suggest we don't change this.  AD]

 

2 Nature and context of economics

 

[It's very important that this section give a sense of the plurality of the economics discipline.  It is right that the mainstream/orthodox/neoclassical perspective be at the centre, since it is, if nothing else, the language in which economics is conducted and debated.  But where it is the mainstream standpoint which is being discussed, it has to be identified as such.  Examples of diverging views - post Keynesian, Marxian, Austrian, etc - can then be given.  AD]

 

[Tony Lawson has objected to the use of the term "neoclassical" here, referring us to his article, "What is this ‘school’ called neoclassical economics?" in the Cambridge Journal of Economics 2013, 37, 947–983.  The term neoclassical does not appear in the original SBSE, but in comments and suggested edits I have posted, here and below.  AD]

 

2.1 Economics is the study of the material, technical, and social factors that influence income, wealth and

social well-being - the social provisioning process.

 

[Economics is the study of the social provisioning process.  While this is not accepted by the mainstream, nevertheless there should be an attempt to put it in the benchmark statement in some manner. FL]  

 

From this it seeks to inform the design and implementation of economic

policy. Its aim is to analyse and understand the allocation, distribution and utilisation of

scarce

 

["scarce" is doubly problematic: first, it is a clear, and presumably deliberate, reference to a particular definition of "economics" (i.e. Robbins'), and second definition is contentious. JW] 

 

resources and their consequences for economic and social well-being. Economics

is concerned both with how present allocations arise and with how they may change in

the future. Studying economics requires an understanding of who makes the decisions of how resources are used, how households and firms behave and interact, how trade unions contribute to the betterment of the working class, how firms use collective forms of organization (such as cartels and employer assoications) to control product and markets, and how the state and international organizations promotes the economy in the interest of the business community. This understanding is required at both the disaggregated level of markets and industry (micro) and at the level of the economy as a whole (macro). 

 

[Micro is not the individual and macro is not aggregate.  This is a straight neoclassical view and so it needs to be opposed.  In addition there is more to the economy and resource allocation than households and firms:  there are trade unions, cartels, the state, employers' associations, WTO, etc. FL] 

 

[I am opposed to Fred's proposed edit which says that "studying economics requires an understanding of" all sorts of agents other than households and firms.  Why?  Not because it is wrong, but because it is prescriptive.  We should be trying to reduce prescription, not increase it, in the SBSE.  A requirement to understand households and firms is minimal and most economists can sign up to that.  Let's leave it at that.  I also don't understand the claim that micro is not the individual and macro is not the aggregate, nor see what change that leads us to propose to the SBSE.  I completely reject the view that anything that its a neoclassical view "needs to be opposed".  This is not an appropriate forum for neoclassical bashing.  It is a forum to try to develop a pluralist SBSE.  That is an utterly different enterprise.  AD]

 

The analysis is both static

(dealing with, for example, output, employment, income, trade and finance) and

dynamic (concerned with, for example, innovation, technical progress, economic

growth, business cycles, sustainable development and its resource base). The study of

economics requires an understanding of resources, agents, institutions and mechanisms.

Moreover, since virtually no economy operates in isolation, it is important that these

phenomena are studied in an international context.

 

 

2.2 Economics is a key discipline in the social sciences. Its subject matter engages

with other subject areas such as psychology, politics, sociology, anthropology,

geography, history and law. It also uses mathematics and statistics and is engaging

increasingly with sciences such as biology, environmental science and medicine.

Furthermore, since knowledge of economics is essential for an understanding of business

behaviour, strategy and corporate performance, it is one of the central disciplines

underpinning the study of business and management and related areas. Recognition of

these interrelationships, and the increasing number of students who are choosing to

study economics jointly with other subjects, or as an integral part of a business and

management degree, have led to new and imaginative degree programmes. Their

design has been influenced by the appreciation that a training that includes economics

provides significant employment opportunities in a variety of careers in addition to

working as a professional economist.

 

[It all looks fine up until this point.  What is missing is any statement of the plurality of the discipline.  Perhaps we should introduce a new 2.3 on pluralism and re-number subsequent paragraphs.  AD]

 

2.3 Economics is a plural discipline.  As well as the neoclassical family of

schools of thought – including neoclassical Keynesians, monetarists, new Keynesians,

new classical and real business cycle theorists, new institutionalists, new economic

geographers and analytical Marxists – there is a constellation of heterodox schools,

including Post Keynesians, Marxians, Austrians, institutionalists, Georgists, Associative

economists, Social economists

 

[Social economists associated with the Association for Social Economics needs to be included among the heterodox economists. FL]

 

, feminists, and critical realists, as well as Muslim, Christian and Buddhist

economists, in so far as they regard their religion as informing their economics.  While

the neoclassical approach is undoubtedly the mainstream, and students must be

familiar with its tenets and competent in its methods in order to graduate, they should

also be aware of the diversity within the discipline and have had some contact with

non-mainstream approaches.  (AD)

 

 

2.4 This points to certain key intellectual features that characterise the economist's

approach. First there is the ability to abstract and simplify in order to identify and model (in part)

 

[Models are always partial so what does this add?  AD]

 

the essence of a problem. Second is the ability to analyse and reason - both deductively

and inductively. Third is the ability to marshal evidence and to assimilate, structure,

analyse and evaluate qualitative and quantitative data. Fourth is the ability to

communicate results concisely to a wide audience, including those with no training in

economics. Fifth is the ability to think critically about the limits of one's analysis in a

broader socio-economic context. Sixth is the ability to draw economic policy inferences,

to recognise the potential constraints in their implementation and to evaluate the

efficacy of policy outcomes in the light of stated policy objectives.

 

3 The aims of degree programmes in economics

 

3.1 Given these defining features, the main aims of a degree programme in, or

including economics as a major component, are:

     *  to provide training in the principles of economics and their application

appropriate to the type of degree concerned: single honours, joint honours or

combined studies

     *  to stimulate students intellectually through the study of economics and to lead

them to appreciate its application to a range of problems and its relevance in

a variety of contexts

     *  to provide a firm foundation of knowledge about the workings of economic

systems and to develop the relevant skills for the constructive use of that

knowledge in a range of settings

     *  to develop in students the ability to apply the knowledge and skills they have

acquired to the solution of theoretical and applied problems in economics

     *  to equip students with appropriate tools of analysis to tackle issues and problems

of economic policy

     *  to develop in students, through the study of economics, a range of generic skills

that will be of value in employment and self-employment

     *  to provide students with analytical skills and an ability to develop simplifying analytical

frameworks for studying the real world. They should be able to appreciate

what would be appropriate levels of abstraction in order to study a range of

economic issues

     *  to provide students with the knowledge and skill base, from which they can

proceed to further studies in economics, related areas or in multidisciplinary areas

that involve economics

     *  to generate in students an appreciation of the economic dimension of wider

social, political and environmental issues.

 

[Looks OK to me.  AD]

 

4 Subject knowledge and understanding

 

[Section 4 also looks OK to me; indeed there are already some salient pluralist elements which I'll underline to draw attention to them.  Can anyone think of anything in Section 4 which could be objected to by any heterodox stream of thought?  The first and third bullet points under 4.3 should swap places.  AD]

 

4.1 To achieve these aims, any single honours degree in economics normally

comprises the following elements.

     *  A coherent core of mainstream and alternative (heterodox?) economic principles. The understanding of these might be

verbal, graphical or mathematical. These principles should cover the

microeconomic issues of decision and choice, the production and exchange of

goods, the pricing and use of material, services, resources, and labor power inputs, investment decisions, research and product development decisions, employment decisions the interdependency of markets, the

relationships between principals and agents, and social economic welfare. They should

also include the macroeconomic issues of employment, national income, the

balance of payments, the distribution of income, inflation, growth and business

cycles, money and finance. The understanding should extend to economic policy

at both the microeconomic and macroeconomic levels. In all these, students

should show an understanding of analytical methods and model-based argument

and should appreciate the existence of different theoretical and methodological approaches.  

 

[Different theoretical approaches need to be included alongside different methodological approaches.  Theory is different from methodology.  FL]

 

[For all of these proposed edits, we should ask ourselves, Is it monist without the proposed changes?  Are the changes necessary to bring about pluralism?  If not then we should leave well alone and not get involved in pointless debate.  This also goes for subsequent edits, below, and I won't repeat this comment.  AD]

 

     *  Relevant quantitative and qualitative research methods and computing techniques. These would include

appropriate mathematical and statistical methods, including econometrics, social network analysis and modeling, and relevant qualitative and historical research methods.  

Students should have exposure to the use of such techniques on actual economic,

financial or social data, using suitable statistical or econometric software.

     *  A knowledge and appreciation of the nature, sources and uses of economic data,

both quantitative and qualitative.

     *  Students should also have some knowledge of and an ability to select and apply

appropriate methods that the economist might use to structure and analyse such data.

     *  The applications of economics. Students should have the ability to apply a core of mainstream and alternative (heterodox?)

economic principles and reasoning to a variety of applied topics. They should also

be aware of the mainstream and alternative economic principles that can be used to design, guide and

interpret commercial, economic, social and environmental, policy. As part of this,

they should have the ability to discuss and analyse government policy and to

assess the performance of the UK and other economies.

 

4.2 It is recognised that, in both single honours degrees and in many degrees that

involve a substantial amount of economics, content will be adapted to suit the nature

and objectives of the degree programme. In degrees that are not single honours

economics, not all the core elements in 4.1 may be covered. It is also recognised that

the forms of analysis chosen may differ and may be tailored to best serve the skills that

students bring with them into their degree programme. It is neither the function nor the

objective of this subject benchmark statement to prescribe what these forms of analysis

might be; this is a matter for institutional choice and decision.

 

4.3 The following is an indicative list of what the attainments of students might be.

     *  Understanding of relevant mathematical and statistical techniques.

     *  A critical understanding of analytical methods, both theory and model-based.

     *  Appreciation of the history and development of economic ideas and the differing

methods of analysis that have been and are used by economists.

     *  Ability to apply core and alternative economic theory and economic reasoning to applied topics.

     *  Ability to relate differences in economic policy recommendations to differences in

the theoretical and empirical features of the economic analysis, which underlie

such recommendations.

     *  Ability to discuss, analyse and evaluate government policy and to assess the

performance of the UK and other economies and of the global economy.

     *  Understanding of verbal, graphical, mathematical and econometric and other statistical representation

of economic ideas and analysis, including the relationship between them.

Appropriate techniques to enable manipulation, treatment and interpretation of

the relevant statistical data, may also be relevant.

 

5 Subject-specific skills and other skills

 

5.1 Some of the attributes that a graduate in economics possesses are generic and

not specific to the study of the subject. Their enhancement would be part of any degree

programme. These would include general intellectual skills such as literary and

information-processing skills, as well as interpersonal skills, such as communication.

Economics degree programmes, therefore, provide a learning environment that

facilitates and encourages the development and use of such skills.

 

5.2 There are three elements in the training of an economics graduate that provide

them with a coherent framework of thinking that is readily transferable and applicable

to decision-making in a wide range of areas. These elements are a set of subject-specific

skills; a conceptual framework that offers a guide to good decision-making; and the

general, but crucial, skill of numeracy.

 

[I suggest we amend 5.2 to add the following.  AD.] [OK.  FL]

 

The conceptual framework, and consequently also to some extent the subject-specific skills, will depend on the paradigm adopted.  Students should be aware that the choice of conceptual framework is not neutral but expresses the approach of a particular school of economic thought.  (AD)

 

Subject-specific skills

 

5.3 Economics graduates also possess other, subject-specific but highly transferable,

rigorous skills. This transferability is evidenced by the wide range of careers into which

graduates in economics move. The development of these skills is particularly emphasised

in the course of an undergraduate degree through the study of economic principles and

economic methods. These skills may be summarised as follows.

     *  Abstraction. From the study of economic principles and models, students see

how one can abstract the essential features of complex systems and provide a

useable framework for evaluation and assessment of the effects of policy or other

exogenous events. Through this, the typical student will acquire proficiency in

how to simplify while still retaining relevance. This is an approach that they can

then apply in other contexts, thereby becoming more effective problem-solvers

and decision-makers.

     *  Analysis, deduction and induction. For mainstreameconomics, economic reasoning is highly deductive, and

logical analysis is applied to assumption-based models. For heterodox economics, economic reasoning is empirically based, utilizing retroduction, the method of grounded theory, or pattern modeling to develop empirically grounded, structure-agency models.  Such models integrate both quantitative and qualitative data.

 

[This is wrong outside of mainstream economics - it should include retroduction, method of grounded theory, plus others.  Pattern modelling.  FL]  

 

However, inductive

reasoning is also important. The development of such analytical skills enhances

students' problem-solving and decision-making ability.

     *  Quantification and design. Data, and their effective organisation, presentation

and analysis, are important in economics. The typical student will have some

familiarity with the principal sources of economic information and data relevant

to industry, commerce, society and government, and have had practice in

organising it and presenting it informatively. This skill is important at all stages

in the decision-making process. 

 

[Students should be able to construct quantitative-qualitative models, and integrate qualitative and quantitative data.  FL]  

 

     *  Framing. Through the study of economics, a student should learn how to decide

what should be taken as given or fixed for the purposes of setting up and solving

a problem, ie what the important 'parameters' are in constraining the solution to

the problem. Learning to think about how and why these parameters might

change encourages a student to place the economic problem in its broader

social and political context. This 'framing' skill is important in determining the

decision-maker's ability to implement the solutions to problems.

 

[Does anyone see any problem with 5.3?  AD]

 

The transferable concept

 

5.4 From learning mainstream economic principles, the typical student acquires a facility with

some key concepts of the mainstream that are present in most of the decision problems that they are likely

to face subsequently in their careers. These include:

 

[The list that follows comprises eight concepts including incentives, the margin, equilibrium,

gains from trade, and expectations.  A strong argument can be made for

every one of them, but nearly every one is disputed – either rejected completely or interpreted in a quite

different way – by one school of thought or another. But they are presented here as

wholly uncontroversial.The assumption is that when we speak of ‘economics’, it is

just the mainstream version of economics that we are talking about.  We need to re-phrase the 3 introductory lines to make this clear.  AD]

 

[Might want to say that in subsequent (studies?) the student will find that these concepts are rejected by important people because the concepts are rejected.  FL]

 

[The SBSE in my view is no place for speculation about what students might or might not do after completion of their degree.  I am also opposed to qualifying the economic principles by the term mainstream in the first sentence of 5.4.  There is quite enough emphasis on the mainstream already.  This is retrograde, and the opposite of pluralist.  AD]

 

5.4 This section lists some salient examples of the elements of the subject-specific conceptual framework which students might acquire from their study of economic principles.  These eight instances are all at the heart of the neoclassical approach with constitutes the mainstream, and many are shared with a range of other, heterodox, approaches.  Nevertheless most if not all are either rejected, or interpreted in a profoundly different way, by one or more of the extant traditions within the discipline of economics.  Their inclusion here is not intended to be prescriptive, or to exclude concepts not mentioned here, such as Keynesian aggregate demand, the Marxian and classical labour theory of value, or the Hayekian theory of the evolution of social institutions.  (AD)

 

     *  opportunity cost - a problem solver or decision-maker must routinely ask 'what

would have to be given up if...', where the answer does not always involve a

simply calculated financial cost. It is often the case that actions are proposed that

fail to recognise forgone alternatives. Opportunity cost

 

[In a circular production model and the circular circuit of production which is central to heterodox economics, opportunity cost has no meaning.  FL]

 

allows the economist to

think about the costs in terms of all resources. Also, there are many examples of

economic policies which enhance efficiency yet reduce equity and vice-versa.

There are also many examples where gains in one time period involve costs in

other time periods. All of these examples encourage an appreciation of inevitable

trade-offs

     *  incentives

 

[This contradicts the notion of the acting person.  FL]

 

- economists are trained to recognise and evaluate the incentives

implied by particular rules, and how to establish sets of rules that actually lead

people to react in ways that give rise to some intended outcome. The ability to

think logically about these issues is essential in the effective design of both policy

and strategy

     *  equilibrium, disequilibrium and stability - these are concepts that economists make

heavy use of and the typical graduate will have seen these deployed in economic

argument with great regularity. The concept of equilibrium is a state where no

participant has any incentive to change behaviour. The ability to recognise

disequilibria and appreciate their stability properties, and to think coherently about

reactions to this, are essential ingredients of good decision-making

     *  strategic thinking - economists learn the importance of strategic thinking, and

the roles of opportunities, strategies, outcomes, information and motivation in the

analysis of strategic actions, including conflict, bargaining and negotiation

     *  expectations and surprises - economists learn that behaviour partly depends

on experience and partly on peoples' perceptions of what is expected to

happen. Thus behaviour may change when unanticipated events occur. Effective

decision-making requires the skill of reacting in a context where people's

behaviour is based on expectations that may be confounded by subsequent

surprises. Students in economics will have been exposed to these issues and this

will enhance their potential effectiveness as decision-makers

     *  the relevance of marginal considerations - economists are trained to recognise

that important decisions often relate to small variations in key variables and

parameters. An action is worth undertaking if the additional benefit that accrues is

greater than the additional cost incurred. The typical student in economics will be

fully aware of the importance of the margin relative to the average

     *  the possible gains from voluntary exchange - economists study and measure

the net gains that people, institutions and countries can obtain from economic

interaction in the form of specialisation, employment, exchange and trade.

The identification and measurement of gains relative to costs and the barriers to

maximising net gains are important in devising appropriate policies to optimise

the use of scarce resources with respect to various individual, institutional,

political, social and environmental objectives

     *  systems and dynamics - many economic decisions or events can start a complex

chain of events. Economists gain an understanding of the interrelationships

between economic phenomena and how effects can accumulate or die away.

The ability to see beyond the direct or short-term effects is a crucial insight that

economists can bring to analysing the effects of both deliberate decisions and

external shocks.

 

Numeracy

 

5.5 It is worth emphasising further the issue of numeracy. Economists frequently

use information that is presented in some numerical form, and students should be

appropriately trained in this regard. The raw data are often in tables, the processed data

as a graph, an average, a correlation and so on. Numeracy, statistical and computing

skills are necessary to handle this sort of information. Presentation skills are needed to

communicate such quantitative information in usable ways, and particularly to give

critical and coherent summary representations of data that cannot be readily absorbed

raw. As well as formal manipulative and presentation skills required to deal with statistical

data, economists learn not to be misled by numbers. They question whether the

numbers represent what they claim (eg unemployment, price indices), they understand

statistical significance (eg the margin of error in a poll or survey) and they are aware of

at least some of the difficulties in sampling a population. In addition, with some

understanding of econometrics, they recognise that conclusions drawn from data might

be ambiguous.

 

6 Teaching, learning and assessment

 

[Section 6 looks OK to me.  AD]

 

6.1 There are various ways of organising and supporting the learning process so as to

establish an environment that fosters learning styles that create active and deep learning

opportunities. Students should be encouraged to explore and analyse information and

consider policy implications. A variety of approaches in economics to managing the

learning process may be adopted to achieve this. The menu includes lectures, seminars,

tutorials, workshops, peer teaching and learning, projects, experiments and distancelearning

approaches. The relative contribution of these ingredients is likely to differ from

degree to degree.

 

6.2 The approaches to the learning process just alluded to should be supported by

appropriate resource-based material. A conducive learning environment can be created

through a variety of approaches appropriate to the institution, the course and the

students, including the availability of libraries, information technology-based resources,

appropriate written materials and text, as well as learning packs.

 

6.3 Students should be assisted to learn actively and in depth and to develop

problem-solving skills and higher-order skills of reasoning and analysis in a structured

and supportive environment.

 

6.4 Assessment strategies should be designed to match intended learning outcomes.

A variety of assessment techniques may be employed, including, for example, unseen

and/or seen examinations, dissertations, portfolios, written essays, oral presentations,

problem-solving exercises, case studies or other assignments. Students should be given

timely and helpful feedback on their progress and attainment that allows them to

identify ways of improving their learning outcomes.

 

6.5 Assessment, either of a formative or summative nature, is a crucial signal about

what study is meant to achieve and is at the heart of the process of developing student

learning.

 

6.6 In assessing students' work, some or all of the following criteria may be adopted.

     *  How far have students focused on questions asked and/or identified key problems?

     *  How well have students chosen the arguments, the relevant theory or model, to

relate to the area specified or question asked?

     *  How good is the quality of explanation?

     *  How well have students demonstrated consistency, coherence and purposeful analysis?

     *  How successfully have students used evidence?

     *  How well have students collected, processed, analysed and interpreted relevant data?

     *  How deep is the extent of critical evaluation?

     *  How well have students demonstrated knowledge of relevant literature?

 

7 Benchmark standards

 

7.1 The benchmark levels proposed below are for both a single honours degree in

economics, and for those degrees where economics is a major component. Students

following degrees where economics is a minor component will not be expected to attain

all of these benchmarks.

 

The threshold level

 

7.2 A graduate in economics who has attained the threshold level should:

     *  demonstrate knowledge of alternative economic concepts and principles

     *  demonstrate knowledge of economic theory and modelling approaches

     *  demonstrate awareness of quantitative and qualitative methods and computing techniques

appropriate to their programme of study, and show an appreciation of the

contexts in which these techniques and methods are relevant

 

[In addition to quantitative/mathematical methods (which should include social network analysis and a whole range of analytical statistics methods that Jamie and Wendy Olsen know about but are not included among the statistical methods that mainstream economists use) there are also other methods such as the following:  historical, participant observation, survey, interviews, experimental, and other qualitative research methods.  FL]

 

     *  display knowledge of the sources and content of economic data and evidence

and appreciate what methods might be appropriately applied to the analysis of

such data

     *  know how to apply economic reasoning to policy issues

     *  demonstrate knowledge in an appropriate number of specialised areas in

economics

     *  display awareness of the possibility that many economic problems may admit

of more than one approach and may have more than one solution.

 

[I suggest we edit the final bullet point as follows, and put it first, and do the same with the final bullet point under "the typical level".  AD]  [OK.  FL]

 

     *  display awareness of the possibility that many economic problems may admit

of more than one approach and may have more than one solution.  (AD)

 

 

The typical level

 

7.3 A graduate in economics who has attained the typical level should:

     *  demonstrate understanding of economic concepts and principles

     *  demonstrate understanding of alternative economic theory and modelling approaches, and

their competent use

     *  demonstrate proficiency in quantitative and qualitative methods and computing techniques and

know how to use these techniques and methods effectively across a range of

problems

     *  display understanding of the sources and content of economic data and

evidence and of those methods that might be applied appropriately to the

analysis of such data

     *  know how to apply economic reasoning to policy issues in a critical manner

     *  demonstrate knowledge in an appropriate number of specialised areas in

economics, as well as an appreciation of the research literature in these areas

     *  display familiarity with the possibility that many economic problems may admit

of more than one approach and may have more than one solution.