I. THE RELATION BETWEEN POSITIVE AND NORMATIVE ECONOMICS Milton Friedman's book Essays in Positive Economics (1953) is a collection of earlier articles by the author with as its lead an original essay "The Methodology of Positive Economics." This essay posits Friedman's famous, but controversial, principle (called the F-Twist by Samuelson) that assumptions need not be "realistic" to serve as scientific hypotheses; they merely need to make significant predictions. Milton Friedman Essays in Positive Economics Part I - The Methodology of Positive Economics ∗ University of Chicago Press 1953, 1970, pp. 3-43 Introduction In his admirable book on The Scope and Method of Political Economy John Neville Keynes distinguishes among “a positive science a body of systematized knowledge
Milton Friedman and the Methodology of Positive Economics This first essay in the book explores John Neville Keynes's distinction between positive and normative economics, what is vs. The essay sets out an epistemological program for Friedman's own research. Milton Friedman Born in 1912 in New York City BA Rutgers University 1932 MA University of Chicago 1933 PhD Columbia University 1946 Professor at University of Chicago 1946-1977 Fellow at the Hoover Institution, at Stanford University 1977- Mentors Arthur Burns, Wesley Mitchell, Jacob Viner, Frank Knight 1976 Nobel Memorial Prize in Economics
Essays in Positive Economics, Friedman The essay argues that economics as science should be free of normative judgments for it to be respected as objective and to inform normative economics (for example whether to raise the minimum wage). The book Essays in Positive Economics, Milton Friedman is published by University of Chicago Press.