Research Ethics in Economics and Finance

Abstract

Until very recently, economists did not benefit from a code of conduct that was specific to their field. Necessarily this led to seemingly poor research practices epitomized by global financial crises. This was due to a unique philosophical-political situation in which a neoliberal system enjoyed a largely uncontested monopoly of thought. Economists were increasingly involved in state action in the field of policymaking particularly with regard to the major waves of deregulation in the 1970s and 1990s, both of which gave rise to major systemic crises. Economists were both advisors to policy- and law-breakers and stakeholders, participating in and benefiting from the actions that they recommended leading to potential conflicts of interest. In part this arose due to a skewed interpretation of classical economics – that removing controls should not be for “particular interests” but for the general interest. This chapter suggests a method and means for restoring public confidence in the work of economists. The position of economists in society needs to be addressed, and questions need to be asked about the validity, objectivity, and operationalization of research models and results in the field. In this way the nature of ethical practice in the professions of economics and finance will be assessed and their professional integrity supported.