THE SOCIOECONOMIC CONTEXT - AN ALTERNATIVE APPROACH TO POPPERS SITUATIONAL ANALYSIS

This article raises the question of whether standard economics with th e general equilibrium model at its core applies situational analysis i n a Popperian sense. Contrary to Popper's own view, the authors come t o the conclusion that this is not the case. Standard economics fails t o represent elements essential to any social situation in an adequate manner. It comprises uncertainty, time and space, social interaction, unintended effects, as well as culture and institutions. The authors s uggest, therefore, the socioeconomic context as an alternative approac h to analyzing social situations. It consists of four basic elements: (1) dominant worldviews, (2) institutions and technologies, (3) relati ve prices, and (4) political instruments. The alternative approach was applied with some success to analyzing inter alia problems of unemplo yment as well as of transformation.