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TERRA ECONOMICUS

Ideology and narrative economics


TERRA ECONOMICUS, , Vol. 22 (no. 3),

This article discusses the connection between ideology and economic theories. Adopted from Douglas North, ideologies are understood as shared frameworks of mental models that groups of individuals apply to interpret the environment and to prescript as to how that environment should be ordered. These models serve to explain the supposed and real connection between the means and the results for implementing policies aimed at transforming society. Narrative economics provides a fruitful approach to analyze meaningful theoretical narratives shared by the academicians belonging to various schools of economic thought. The concept of theoretical narrative is widely used in discussions between the mainstream and heterodox economists. In academic discourse, a theoretical narrative might appear as a collective narrative reflecting social interactions between individuals and their groups. Emerging as a result of the competition between individual narratives, collective economic narratives affect the understanding of economic processes and economic policy. The concept of a collective narrative underpins the study of ideology and its role for economic theories. Being associated with the basic elements of economic thinking, theoretical concepts, and cognitive models, ideology influences both real economic decisions and economic policy. A crucial role is played by social groups (namely, the schools of economic thought, political organizations, etc.) in their endeavor to contribute to the connection between the means and outcomes of related policy. A critical assessment of ideologies in terms of their contribution to economic policies and institutional evolution implies identifying which theories and to what extent are exposed to a particular ideology.
Citation: Volchik V. (2024). Ideology and narrative economics. Terra Economicus 22(3), 21–33 (in Russian). DOI: 10.18522/2073-6606-2024-22-3-21-33
Acknowledgment: This work was supported by the grant of Russian Science Foundation № 24-18-00665, https://rscf.ru/en/project/24-18-00665/, “Ideological landscape of Russian economic science”, at Southern Federal University


Keywords: narrative economics; ideology; mental model; institutional economics; theoretical narrative

JEL codes: B52, Z13, B41

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Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606