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 presents a rare opportunity for economists and philosophers of economics to engage in mutually beneficial exchange that could better our understanding of the power and limits of economics, and the rights and wrongs of the dismal science. The symposium on Rodrik’s Economics Rules is the first attempt to seize this opportunity.
Keywords: economics, philosophy of economics, criticism of economics, history of economics, Dani Rodrik, symposium
JEL Codes: B40, B41
Citation: Aydınonat, N. Emrah (2018) “Philosophy of Economics Rules: introduction to the symposium, Journal of Economic Methodology, forthcoming. https://doi.org/10.1080/1350178X.2018.1503143
Pre-print available at: ResearchGate
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 the paper is that theoretical models make better sense in the context of a menu of possible explanations. In order to justify this claim, we introduce a distinction between causal scenarios and causal mechanism schemes. These conceptual tools help us to articulate the basis for modelers’ intuitive confidence that their models make an important epistemic contribution. By focusing on the role of the menu of possible explanations in the evaluation of explanatory hypotheses, it is possible to understand how a causal mechanism scheme can improve our explanatory understanding even in cases where it does not describe the actual cause of a particular phenomenon.
KEYWORDS: models, explanation, causal mechanisms, segregation
JEL CODES: B40, B41
Citation: Ylikoski, Petri & N. Emrah Aydinonat. 2014. “The Diversity of Models as a Means to Better Explanations in Economics.” Journal of Economic Methodology, 21 (1), 19-36. https://doi.org/10.1080/1350178X.2014.886470
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, but he does not fully explain how. I offer a clearer picture of how models relate to explanations of particular economic facts or events, and suggest that the diversity of models is a means to better economic explanations.
KEYWORDS: Theoretical models, explanation, diversity of models, how-possibly reasoning, functions of models
JEL CODES: B40, B41