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Transforming the Abstract into Concrete: The Dual Semantic Roots of Economic Modelling

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  • Arthur Brackmann Netto
  • Marcelo Milan

Abstract

The existing connotation of models in economics emerged only in the XXth century, substituting the previous methodological terms: ‘scheme’, ‘diagram’ and ‘system’. This immature characteristic of economic models provokes important questions: when exactly and why schemes, diagrams, and systems became models? The purpose of the present paper is to look into the history of economic thought, searching for some explanations regarding these changes. The problem will be observed from a semantic point of view, reformulating a broad view of how the term was introduced. Considering this, the paper analyzes how the combination of cartesian and newtonian mathematics with psychological and empirical economics occurred, paving the way for the insertion of the term model into the jargon of economists in two different manners. The review shows that there were two semantic pioneers: Tinbergen (1935) and Von Neumann (1945). Both were the first economists to use the term ‘model’ for pure abstract reasoning in each of their respective methodologies.

Suggested Citation

  • Arthur Brackmann Netto & Marcelo Milan, 2017. "Transforming the Abstract into Concrete: The Dual Semantic Roots of Economic Modelling," Working Papers, Department of Economics 2017_22, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2017wpecon22
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    File URL: http://www.repec.eae.fea.usp.br/documentos/Netto_Milan_22WP.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Economic Models; Semantic; Tinbergen; Von Neumann;
    All these keywords.

    JEL classification:

    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals

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