Question

Walras and Jevons regarded economics as a science which quests for eternal general laws, where the verification is much less important than its explanatory power. Maxwell, on the other hand, said that mathematical formalism and physical phenomena are both sides of the same coin. Unless this is done, can the ‘eternal laws’ have an explanatory power?

Answer 1

Mathematical formalism is used to justify what is happening as a physical phenomenon and it is physical phenomenon that becomes the basis of assumptions used, for the creation of mathematical formalism. If mathematical formalism does not become consistent with what is predicted in physical phenomenon, then it is some other variables that is not considered by the mathematical formalism. So, Maxwell is right in saying that, both of these are the part of same coin.

If it does not happen, eternal laws has the explanatory power in a limited manner, because there will be huge variations in the behavior of people and it will not be able to form a rational explanation that can help explain behaviors exhibited as it is done in the Economics. Hence, it is always important to bring some mathematical formalism to devise a system that can predict physical phenomenon, and when it happens, then it is more justified, rational and stable. Hence, it is important for physical phenomenon and mathematical formalism to help each other, to make strong and stable explanatory power. If not, then there will be a need of different explanations for different behavioral approach, though the environmental setting will remain same.