Conclusion: Theoretical and Practical Reason in Economics

Abstract

The aim of this chapter is to recapitulate the content of the book. The main message intended here is that it is necessary to recuperate the use of theoretical and practical reason in economics. Cartwright’s capacities are put as an example of the former use of reason and Sen’s capabilities of the later. The book proposes to combine these two concepts and Cartwright’s notion of a socio-economic machine. The result is a socio-economic machine in which final causes and objectives are a set of capabilities appropriate of a process of human development. This set is composed of a small core of capabilities stemming from anthropological constants and other capabilities decided under the guidance of practical reason. Institutions consolidate the work of the socio-economic machine.