A note on Lucas and the Ricardian Vice
Abstract
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