Year 2020, Volume 12 , Issue 1, Pages 24 - 49 2020-06-08

Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable?

Asad ZAMAN [1]


Economic models translate real problems to an artificial world, and calculate outcomes. The match between artificial worlds populated by rational robots, and the real world, is never assessed. Instead, models are judged on aesthetic grounds, involving conformity to preconceived principles of optimization and equilibrium. Despite methodological proclamations to the contrary, models are not judged by predictive performance. Economics models are formulated axiomatically, and never cross-checked against reality. Taking this (controversial) characterization of economic methodology for granted, this paper sketches trends in philosophy of science which led to a methodology which permits creation of mental models disconnected from reality. A key development was the separation of the observable phenomena from the underlying reality (noumena) which eventually allowed empiricist philosophers to jettison the underlying reality as part of what good models attempt to describe. The paper discusses contemporary methodologies for assessing models in economics and econometrics, and explains why these lead to models disconnected from reality.
Epistemology, Empiricism, Logical Positivism, Critical Realism, Economic Methodology
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Primary Language en
Subjects Economics
Journal Section Articles
Authors

Orcid: 0000-0002-5710-0323
Author: Asad ZAMAN (Primary Author)
Institution: AL-Nafi International Online Educational Platform
Country: Pakistan


Dates

Publication Date : June 8, 2020

Bibtex @research article { ier748128, journal = {International Econometric Review}, issn = {1308-8793}, eissn = {1308-8815}, address = {Şairler Sokak, No:32/C, Gaziosmanpaşa, Ankara}, publisher = {Econometric Research Association}, year = {2020}, volume = {12}, pages = {24 - 49}, doi = {10.33818/ier.748128}, title = {Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable?}, key = {cite}, author = {Zaman, Asad} }
APA Zaman, A . (2020). Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable? . International Econometric Review , 12 (1) , 24-49 . DOI: 10.33818/ier.748128
MLA Zaman, A . "Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable?" . International Econometric Review 12 (2020 ): 24-49 <https://dergipark.org.tr/en/pub/ier/issue/54778/748128>
Chicago Zaman, A . "Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable?". International Econometric Review 12 (2020 ): 24-49
RIS TY - JOUR T1 - Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable? AU - Asad Zaman Y1 - 2020 PY - 2020 N1 - doi: 10.33818/ier.748128 DO - 10.33818/ier.748128 T2 - International Econometric Review JF - Journal JO - JOR SP - 24 EP - 49 VL - 12 IS - 1 SN - 1308-8793-1308-8815 M3 - doi: 10.33818/ier.748128 UR - https://doi.org/10.33818/ier.748128 Y2 - 2020 ER -
EndNote %0 International Econometric Review Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable? %A Asad Zaman %T Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable? %D 2020 %J International Econometric Review %P 1308-8793-1308-8815 %V 12 %N 1 %R doi: 10.33818/ier.748128 %U 10.33818/ier.748128
ISNAD Zaman, Asad . "Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable?". International Econometric Review 12 / 1 (June 2020): 24-49 . https://doi.org/10.33818/ier.748128
AMA Zaman A . Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable?. IER. 2020; 12(1): 24-49.
Vancouver Zaman A . Models and Reality: How Did Models Divorced from Reality Become Epistemologically Acceptable?. International Econometric Review. 2020; 12(1): 24-49.