Includes bibliographical references and index.

1. Introduction: A Sociological Interpretation of the Modern History of Economics -- 2. The Neoclassical Era (1870-1914) from a Different Angle -- 3. Reconstructing the History of Institutionalism -- 4. The Struggle over the Meaning of Science -- 5. Bringing People and Institutions Back In: The Struggle over the Scope of Economics -- 6. The Free Market on Trial: The Struggle over the Gap between Reality and Theory -- 7. The Struggle over Social Relevance and the Place of Values -- 8. Evolution or Revolution? The Struggle over the History of the Discipline -- 9. Epilogue: The Fall of Institutionalism and the Rise of Modern Economics -- 10. Conclusions: The Evolution of Economic Analysis.

This book provides a surprising answer to two puzzling questions that relate to the very "soul" of the professional study of economics in the late twentieth century: How did the discipline of economics come to be dominated by an approach that is heavily dependent on mathematically derived models, and what happened to other approaches to the discipline that were considered to be scientifically viable less than fifty years ago? Between the two world wars there were two well-accepted schools of thought in economics: the "neoclassical," which emerged in the last third of the nineteenth century, and the "institutionalist," which started with the works of Veblen and Commons at the end of the same century. Although the contributions of the institutionalists are nearly forgotten now, Yuval Yonay shows that their legacy lingers in the study and practice of economics today. By reconsidering their impact and by analyzing the conflicts that arose between neoclassicists and institutionalists, Yonay brings to life a hidden chapter in the history of economics. His analysis also illuminates a broader set of issues concerning the nature of scientific practice and the forces behind changes in scientific knowledge.