The Use of Knowledge in Economics

In this essay, we survey the use of knowledge in economics and argue that knowledge should be treated one way rather than another. In other words, we see our purpose as both positive and normative. First, we want to show how some economists have treated knowledge in their analytical depictions of the economy. Second, we argue that some efforts by economists are more successful than others at capturing the role that knowledge plays in the economy. We especially emphasize F.A. Hayek's work and his challenge to the economics profession in mid-20th century. It is in accessing how well different economists have addressed Hayek's challenge, or failed to address it, that is our primary concern