Mathematical modelling in economics: seeking a rationale

Tony Lawson

Chapter 3 in Institutions and Evolution of Capitalism, 2019, pp 29-43 from Edward Elgar Publishing

Abstract: Most methodologists of mathematical modelling in economics consider that models advance understanding, in the sense of providing accounts of how real-world phenomena are produced, and focus on how patently unrealistic models can nonetheless explain. Prevailing interpretations present models as counterfactual credible worlds or useful fairy tales that communicate important messages. The debate has also focused on whether the models’ false assumptions do any of the explaining. In line with Geoff Hodgson’s view that further discussion and inquiry in this area is needed, the chapter engages with these ideas, and defends the proposition that mathematical models in economics do not, and cannot, explain. Since models of this kind involve treating the open system that is social reality as a closed one, they do not merely simplify reality; they distort it. It is therefore hardly surprising that models fail to provide insights into real-world causal relations.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781785364990/9781785364990.00011.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:16974_3

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().