IDEAS home Printed from https://ideas.repec.org/a/taf/jecmet/v9y2001i2p191-212.html
   My bibliography  Save this article

Building and using economic models: a case study analysis of the IS-LL model

Author

Listed:
  • Thomas Dohmen

Abstract

This paper critically assesses several model accounts written in the 1990s by epistemologists and philosophers of science by relating them to a specific but crucial example of model building, namely Hicks's (1937) construction of the first version of the IS-LM model, and examining in how far these accounts apply to this case. Thereby the paper contributes to answering why and how economists build models. The view crystallizes that economists build models not only to facilitate the conceptual exploration of theory, but also to inform our understanding of the world. Elements of model building, such as analogies, metaphors, stories, theoretical notions, empirical findings and mathematizations, but also the mode of representation shape the model and largely determine how much can be learned about theory and the real world by using the model as a tool.

Suggested Citation

  • Thomas Dohmen, 2001. "Building and using economic models: a case study analysis of the IS-LL model," Journal of Economic Methodology, Taylor & Francis Journals, vol. 9(2), pages 191-212.
    • Handle: RePEc:taf:jecmet:v:9:y:2001:i:2:p:191-212
    DOI: 10.1080/13901780210137100
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/13901780210137100
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13901780210137100?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jean-Paul Fitoussi, 1983. "Modern macroeconomic theory," SciencePo Working papers Main hal-03393109, HAL.
    2. McCloskey, Deirdre Nansen, 1990. "If You're So Smart," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226556703, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mauro Boianovsky, 2004. "The IS-LM Model and the Liquidity Trap Concept: From Hicks to Krugman," History of Political Economy, Duke University Press, vol. 36(5), pages 92-126, Supplemen.
    2. Derek Matthews, 2007. "The performance of British manufacturing in the Post-War long boom," Business History, Taylor & Francis Journals, vol. 49(6), pages 763-779.
    3. Ramser, Hans J., 1985. "Keynes-Literatur und die Relevanz makroökonomischer Lehrbuchmodelle," Discussion Papers, Series I 196, University of Konstanz, Department of Economics.
    4. Henry, J. & Lavoie, M., 1997. "The Hicksian traverse as a process of reproportioning: some structural dynamics," Structural Change and Economic Dynamics, Elsevier, vol. 8(2), pages 157-175, June.
    5. Hervé Dumez & Alain Jeunemaître, 2005. "La démarche narrative en économie," Revue économique, Presses de Sciences-Po, vol. 56(4), pages 983-1005.
    6. Mary Morgan, 2001. "Models, stories and the economic world," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(3), pages 361-384.
    7. James C. W. Ahiakpor, 1997. "Full Employment: A Classical Assumption or Keynes's Rhetorical Device?," Southern Economic Journal, John Wiley & Sons, vol. 64(1), pages 56-74, July.
    8. repec:hal:wpspec:info:hdl:2441/5573 is not listed on IDEAS
    9. Don Patinkin, 1987. "Walras' Law," WIDER Working Paper Series wp-1987-013, World Institute for Development Economic Research (UNU-WIDER).
    10. repec:hal:spmain:info:hdl:2441/eul7jlnf19iq8tdp0vlfv63n5 is not listed on IDEAS
    11. SALMON, Pierre, 2002. "Science économique et sens commun : trois thèses sur leurs relations réciproques," LEG - Document de travail - Economie 2003-02, LEG, Laboratoire d'Economie et de Gestion, CNRS, Université de Bourgogne, revised Jan 2003.
    12. Alessandro Vercelli, 1999. "The evolution of IS-LM models: empirical evidence and theoretical presuppositions," Journal of Economic Methodology, Taylor & Francis Journals, vol. 6(2), pages 199-219.
    13. Kakarot-Handtke, Egmont, 2010. "Axiomatic Basics of e-Economics," MPRA Paper 24331, University Library of Munich, Germany.
    14. Goyal, Ashima, 1994. "Growth dynamics in a general equilibrium macroeconomic model for India," Journal of Policy Modeling, Elsevier, vol. 16(3), pages 265-289, June.
    15. L Thorne, 1996. "Local Exchange Trading Systems in the United Kingdom: A Case of Re-Embedding?," Environment and Planning A, , vol. 28(8), pages 1361-1376, August.
    16. repec:spo:wpecon:info:hdl:2441/5573 is not listed on IDEAS
    17. Jean-Paul Fitoussi & Jean-Luc Gaffard, 2001. "Asset Valuation, Liquidity Issues, and Growth Regimes. Financial Markets, the New Economy and Growth, 13th Villa Mondragone International Economic Seminar, CEIS University of Rome ‘Tor Vergata’, June ," Sciences Po publications info:hdl:2441/5573, Sciences Po.
    18. McCallum, Bennett T & Nelson, Edward, 1999. "An Optimizing IS-LM Specification for Monetary Policy and Business Cycle Analysis," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(3), pages 296-316, August.
    19. Ashima Goyal, 1994. "Industrial Pricing and Growth Fluctuations in India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 29(1), pages 13-32, January.
    20. Morris Altman, 2003. "Economic Growth and Income Equality: Implications of a Behavioural Model of Economic Growth for Pub lic Policy," Canadian Public Policy, University of Toronto Press, vol. 29(s1), pages 87-118, January.
    21. Roberto Tamborini, 2007. "Rescuing the LM (and the money market) in a modern Macro course," Department of Economics Working Papers 0706, Department of Economics, University of Trento, Italia.
    22. Frederic Beach Jennings, 2015. "Atoms, Bits, and Wits: A New Economics for the Twenty-First Century--Part I," Forum for Social Economics, Taylor & Francis Journals, vol. 44(3), pages 213-233, December.
    23. repec:hal:spmain:info:hdl:2441/5573 is not listed on IDEAS
    24. V. Ragupathy & K. Vela Velupillai, 2011. "Origins and Early Development of the Nonlinear Endogenous Mathematical Theory of the Business Cycle: Part I - The Setting," ASSRU Discussion Papers 1127, ASSRU - Algorithmic Social Science Research Unit.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jecmet:v:9:y:2001:i:2:p:191-212. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.