Methodenstreit

Abstract

The ‘battle of methods’ between Carl Menger (1840–1921) and Gustav Schmoller (1838–1917) is one of the most important methodological debates in the history of economics. It began with the publication of Menger’s book on method (1883), which made the case for pure theory based on assumptions about behaviour and antecedent conditions. Schmoller responded with a strongly worded review (1883) that argued for principles of economics based on empirical historical data and the inductive method. Menger answered with an equally vehement statement of The Errors of Historicism (1884). The infuriated Schmoller refused even to read it (Schmoller 1884). A torrent of books and papers by others followed over the next several decades. The best summary of the entire controversy is Ritzel (1951).