Philosophy of Economics Rules: introduction to the symposium

ABSTRACT: Economists have long been criticized for their use of highly idealized models. In Economics rules: Why economics works, when it fails, and how to tell the difference [Oxford: Oxford University Press, 2015] Dani Rodrik responds to this criticism by offering an account of models that emphasizes the diversity of models in economics. Rodrik’s account presentsContinue reading “Philosophy of Economics Rules: introduction to the symposium”

Introduction to The Invisible Hand in Economics (Routledge, 2008)

  This is the Introduction to The Invisible Hand in Economics: How Economists Explain Unintended Social Consequences (Routledge, 2008). If you prefer to read the PDF version, it is available on ResearchGate. Everyone is familiar with the (aesthetically) unpleasant walking-paths on public green fields. Usually, around these fields there are constructed paths for the serviceContinue reading “Introduction to The Invisible Hand in Economics (Routledge, 2008)”

The Invisible Hand in Economics: How Economists Explain Unintended Social Consequences

The Invisible Hand in Economics How Economists Explain Unintended Social Consequences INEM Advances in Economic Methodology London: Routledge, 2008. This is a book about one of the most controversial concepts in economics: the invisible hand. The author explores the unintended social consequences implied by the invisible hand and discusses the mechanisms that bring about theseContinue reading “The Invisible Hand in Economics: How Economists Explain Unintended Social Consequences”

Understanding with theoretical models

ABSTRACT. This paper discusses the epistemic import of highly abstract and simplified theoretical models using Thomas Schelling’s checkerboard model as an example. We argue that the epistemic contribution of theoretical models can be better understood in the context of a cluster of models relevant to the explanatory task at hand. The central claim of theContinue reading “Understanding with theoretical models”

The diversity of models as a means to better explanations in economics

ABSTRACT. In Economics Rules, Rodrik [(2015). Economics rules: Why economics works, when it fails, and how to tell the difference. Oxford: Oxford University Press] argues that what makes economics powerful despite the limitations of each and every model is its diversity of models. Rodrik suggests that the diversity of models in economics improves its explanatory capacities, butContinue reading “The diversity of models as a means to better explanations in economics”

A review of James Kwak’s Economism

I just finished reading James Kwak’s Economism: Bad Economics and the Rise of Inequality. Here is a quick review of the book.[1] Imagine a first-year economics student. After attending six lectures in introductory economics, and carefully studying the first six chapters of his economics textbook, s/he gets comfortable with the basic supply-demand model. Bedazzled byContinue reading “A review of James Kwak’s Economism”

Using and Abusing Models in Economics: A Review of Rodrik’s Economics Rules

“There is much to criticize in economics, but there is also much to appreciate” Dani Rodrik (in Economics Rules, p. ix) Dani Rodrik’s new book Economics Rules: The Rights and Wrongs of the Dismal Science will be available soon. Here is an early quick review of the book. If you do not have much time, hereContinue reading “Using and Abusing Models in Economics: A Review of Rodrik’s Economics Rules”