Models and Reality in Economics

Models and Reality in Economics is an important contribution to the philosophy of economics and the conduct of inquiry in economics. It examines what economists do and what economics is about. The book opens with a critical discussion of the work of McCloskey and the rhetorical approach to understanding economics. It then goes on to address the question of whether economics is a science. In answering this question the author examines three main concepts: first, whether economics meets a methodological standard, concluding that if the standard is not reached then it is a non-science; secondly, whether economics has a certain kind of content, such as a body of fundamental laws; and finally, whether it includes ideal theories or hypotheses which omit certain real world complications. From this discussion, the author suggests that the rhetorical approach and the question of whether economics is a science should be replaced with the idea that models are the central foundation of economic inquiry. He goes on to discuss the character of economic models and the idea that much economic thinking is concerned with the construction of models to resolve conceptual problems and explain real world economic phenomena. The book sheds new light on existing methodology and proposes new areas for future research. Models and Reality in Economics will be welcomed by those interested in the developments in economic methodology and philosophy, and those concerned with the progress and prospects of economics in general.