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Economic Models, Realism And Similarity

Author

Listed:
  • Leonardo Ivarola

    (Instituto Interdisciplinario de Economía Política de Buenos Aires - UBA - CONICET)

Abstract

In the present paper it is argued that differences among economic models are basically differences in their selected part of the real world these models try to account for. Therefore, their range of applicability to a target system turns out to be important for their selection to particular purposes. In this respect, an approach based on the similarity of models to a target system and to the modelers’ purposes is provided. It is also argued that models vary in values of similarity. These values will help agents to select the model that best meets the role of examining some phenomenon of interest.

Suggested Citation

  • Leonardo Ivarola, 2021. "Economic Models, Realism And Similarity," Documentos de trabajo del Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET) 2021-63, Universidad de Buenos Aires, Facultad de Ciencias Económicas, Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET).
    • Handle: RePEc:ake:iiepdt:202163
    as

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    References listed on IDEAS

    as
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    3. Pfleiderer, Paul, 2018. "Chameleons: The Misuse of Theoretical Models in Finance and Economics," Research Papers 3020, Stanford University, Graduate School of Business.
    4. Alan Musgrave, 1981. "‘Unreal Assumptions’ In Economic Theory: The F‐Twist Untwisted," Kyklos, Wiley Blackwell, vol. 34(3), pages 377-387, August.
    5. Morgan,Mary S., 2012. "The World in the Model," Cambridge Books, Cambridge University Press, number 9780521176194, January.
    6. Cartwright,Nancy, 1999. "The Dappled World," Cambridge Books, Cambridge University Press, number 9780521643368, January.
    7. Cartwright,Nancy, 1999. "The Dappled World," Cambridge Books, Cambridge University Press, number 9780521644112, January.
    8. James M. Cypher & James L. Dietz, 1998. "Static and Dynamic Comparative Advantage: A Multi-Period Analysis with Declining Terms of Trade," Journal of Economic Issues, Taylor & Francis Journals, vol. 32(2), pages 305-314, June.
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    More about this item

    Keywords

    Similarity; Economic models; Mechanisms; Possibility tree; Substantive assumptions; Domain of applicability;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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