A note on Lucas and the Ricardian Vice
Brazilian Journal of Political Economy, Vol. 17 No. 4 (1997), Oct-Dec / 1997, Pages 622-629
Senior indetermination stresses the limitations of “pure” theory to derive normative
conclusions. This paper tries to show that Lucas runs into the so-called Ricardian Vice,
when he goes straight from abstract theoretical models to economic policy formulations. It
is argued that such a procedure is related to Lucas methodological positions. That is, the “as
if” methodology – inherited from Friedman – would lead to disregard of external elements
in policy prescriptions.
JEL Classification: B22; B31.
Keywords: Ricardian Vice indetermination of Senior Lucas New Classical history of economic thought