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Theory and realism in economics: Richard R. Nelson, equilibrium and economic change

Carolina Alves

Journal of Industrial and Business Economics2026https://doi.org/10.1007/s40812-026-00394-3article
AJG 1ABDC B
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0.50

Abstract

This paper revisits the work of Richard R. Nelson (1930–2025), focusing on his critique of equilibrium theory, to explore persistent methodological debates within the field of economics. It examines the tension between theoretical abstraction and empirical realism, arguing that Nelson’s evolutionary approach offers a compelling alternative to the dominant general equilibrium framework. By foregrounding processes of change, uncertainty, and adaptive behaviour, Nelson (alongside Sidney G. Winter) challenges the discipline’s tendency to model economies as static, fully understood systems. While this paper does not aim to provide a comprehensive review of their contributions, it highlights how their critique remains strikingly relevant today. Despite methodological refinements, shifts in research topics and policy engagement, mainstream economics continues to struggle with dynamic, out-of-equilibrium analysis. Revisiting Nelson’s legacy is not only timely, but also essential for those seeking a more realistic and responsive economics.

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https://doi.org/https://doi.org/10.1007/s40812-026-00394-3

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@article{carolina2026,
  title        = {{Theory and realism in economics: Richard R. Nelson, equilibrium and economic change}},
  author       = {Carolina Alves},
  journal      = {Journal of Industrial and Business Economics},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1007/s40812-026-00394-3},
}

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0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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