Differences Between Mainstream Economics and Heterodox Economics

Mainstream economics is based on mathematical models and their insistence of the mathematical models applicability universally to study issues of economics. In other words, they tend to be fetish about mathematical models to study economics. They tend to down play in their analysis concerns for philosophical issues and social issues. Mainstream economists also believe that their economic theorems are applicable universally irrespective of different contexts. They totally reject historical analysis.

In essence in economic affairs they have a mathematical world view in an ontological perspective.

The mainstream mathematical model and their fetishism is questionable fact because as mentioned above it does not allow alternative approaches to study economics, which is more complex phenomenon in reality. Their relevance to study economics is also questionable because of their atomistic analytical methods, which is not consistent with an economy as a whole. That is, they have microeconomics and macroeconomics where they have inconsistent in their approaches and cannot integrate micro and macro analysis together. In other words, their world view is very simplistic and their analysis has too much abstraction compared to the ever changing economic reality.

In contrast, heterodox economics questions in all its varieties the fetishism of the mainstream insistence of mathematical models in studying economy as a whole. They tend to reject this mathematical model building on the basis of its relevance to study economics based on an entirely different world view compared to the mainstream economics world view.  They also tend to reject the mainstream economics insistence of mathematical economic models usability in economics and its theorems on a universal basis. In essence, the heterodox economics even though they differ unit of analysis and economic concerns they all have a common ground on the fetishism of mathematical models and its relevance in studying economic phenomenon as an economy as a whole. Some heterodox economic paradigms agree with the rationality and individualism assumptions to varying degrees and equilibrium analysis; however they all disagree with the fetishism of mathematical models to study economics as the only viable analytical method. They tend to see the economy as dynamic rather than static, evolutionary, the role of institutions in economics, sociological issues and social relations interacting and contextual economic laws than universal laws compared to mainstream economics.

However, heterodox economics differ within them selves in their social, political concerns, evolutionary aspects, role of uncertainty, money and institutional issues green economic issues in economics and their emphasis in their analysis. In essence, they differ in their concerns, orientation and emphasis rather than the outcomes and methodological questions.

In summary, all heterodox economics are opposed to the mathematical model obsession of the mainstream economics and their relevance and their insistence of their universal nature of their economic theorems. They also are in opposition not to allow other methods of analysis and widely vary in their ontological view of economics as compared to mainstream economics. They can be viewed as division of labor within the heterodox economics as in social science there are many different fields of research and social phenomenon. However they have an interdisciplinary analytical method in their economic analysis rather than based on individualism and the concept of rationality alone in mainstream economics. In addition, heterodox economics differ widely in their concerns, orientation, unit of analysis and orientation.  That is they are not homogeneous in character but pluralistic and pluralistic in its approach to study economics and eclectically oriented.

The Heterodox economics includes Marxian economics, Post-Keynesian economics, evolutionary economics, Institutional economics, Feminist economics and radical-political economics.