What Should Economists Do?

What Should Economists Do? collects James M. Buchanan's key essays and lectures from 1962 to 1976 on the methodology and philosophy of economics. The book examines core questions about the role of economists in society and challenges traditional interpretations of economic theory. Buchanan argues for a shift away from the optimization and equilibrium framework that dominates economic thinking. He presents an alternative vision focused on exchange processes, individual choice, and the institutional frameworks that enable market interactions. The essays explore topics like cost theory, market failure, public choice theory, and the relationship between politics and markets. Buchanan develops his perspective through both theoretical arguments and practical examples from policy and public finance. The book represents a fundamental critique of mainstream economics while offering a constructive vision for the discipline's future direction. Its emphasis on process over equilibrium and subjective valuation over objective optimization continues to influence economic methodology debates.

Readers view this as a philosophical examination of economics focusing on exchange and individual choice rather than resource allocation. The book compiles Buchanan's lectures and essays from 1962-1968. Readers appreciated: - Clear arguments for studying economics as a process of trade/exchange - Discussion of methodological individualism vs holistic approaches - Critique of mainstream economics' focus on optimization/equilibrium Common criticisms: - Dense academic writing style - Some essays feel repetitive - Limited practical applications A Goodreads reviewer noted "Buchanan makes compelling points about economics being about human action and choice rather than mechanical allocation." Another wrote "Important ideas but presented in a very academic way that can be hard to follow." Ratings: Goodreads: 4.0/5 (31 ratings) Amazon: 4.5/5 (6 ratings) The book has limited reviews online, likely due to its academic nature and specialized topic.

Economics and Knowledge by F.A. Hayek This work examines the role of knowledge in economics and its dispersion through markets, complementing Buchanan's insights on economic methodology and individual choice.

The Calculus of Consent by James M. Buchanan, Gordon Tullock The text establishes constitutional political economy through mathematical analysis of collective decision-making and institutional frameworks.

The Economic Point of View by Israel Kirzner This study traces the evolution of economic thinking and methodological approaches, exploring the fundamental questions about the nature of economic science.

Cost and Choice by James M. Buchanan The book presents a subjective theory of costs in economic decision-making, building upon the Austrian school's understanding of value and choice.

The Methodology of Economics by Mark Blaug This work analyzes the philosophical foundations of economic inquiry and the evolution of economic methodology through different schools of thought.

🎓 James Buchanan won the 1986 Nobel Prize in Economics for his pioneering work in public choice theory, which he developed after writing this collection of essays. 📚 The book's title essay was originally Buchanan's presidential address to the Southern Economic Association in 1963, challenging the traditional view of economics as purely focused on allocation and efficiency. 💭 Buchanan was heavily influenced by Swedish economist Knut Wicksell, whose ideas about unanimous consent in political decision-making shaped much of the book's philosophical framework. 🏛️ The book argues that economists should focus on the process of exchange and voluntary agreements between individuals rather than on maximizing utility or predicting outcomes. 📖 Many of the essays in this collection were written while Buchanan was at the University of Virginia, where he established the Thomas Jefferson Center for Studies in Political Economy and Social Philosophy.