One of my favorite papers at this year’s Adam Smith conference in Glasgow was Erik W. Matson’s “Minding the Gaps: Reality, Theory, and Policy in Adam Smith”, which will be published in Volume 30 of The Independent Review. In summary, Professor Matson’s thesis is that the The Wealth of Nations exemplifies two eternal gaps in the world of ideas. One is the practical gap between Smith’s economic and political theory (e.g. people should be free to pursue any trade) and public policy (e.g. occupational licensure), which as Matson explains inevitably arises from considerations of political feasibility and the existence of entrenched interest groups. The other is the epistemological gap between reality or the facts we seek to explain and our theories or efforts to explain them. Here is a link to an ungated version Professor Matson’s thoughtful paper.