In a recent special issue dedicated to Dani Rodrik’s (2015) influential monograph Economics Rules, Grüne-Yanoff and Marchionni (2018) raise a potentially damning problem for Rodrik’s suggestion that progress in economics should be understood and measured laterally, by a continuous expansion of new models. They argue that this could lead to an “embarrassment of riches”, i.e. the rapid expansion of our model library to such an extent that we become unable to choose between the available models, and thus needs to be (...) solved to make ‘model pluralism’ viable. Drawing on Veit’s (2019a) ‘model pluralism’ account, this paper argues that model pluralism as a thesis about the relationship between science and nature undermines the very idea of a general model selection framework for policy making. (shrink)

This paper introduces and defends an account of model-based science that I dub model pluralism. I argue that despite a growing awareness in the philosophy of science literature of the multiplicity, diversity, and richness of models and modeling practices, more radical conclusions follow from this recognition than have previously been inferred. Going against the tendency within the literature to generalize from single models, I explicate and defend the following two core theses: any successful analysis of models must target sets of (...) models, their multiplicity of functions within science, and their scientific context and history and for almost any aspect x of phenomenon y, scientists require multiple models to achieve scientific goal z. (shrink)

This paper argues for theoretical modeling and model-construction as central types of activities that philosophers of social ontology engage in. This claim is defended through a detailed case study and revisionary interpretation of Raimo Tuomela’s account of the we-perspective. My interpretation is grounded in Ronald Giere’s account of scientific models, and argued to be compatible with, but less demanding than Tuomela’s own description of his account as a philosophical theory of the social world. My approach is also suggested to be (...) applicable to many other methodologically naturalist accounts of collective intentionality and social ontology. (shrink)

In this article, we discuss the issue of context-dependence of mechanism-based explanation in the social sciences. The different ways in which the context-dependence and context-independence of mechanism-based explanation have been understood in the social sciences are often motivated by different and apparently incompatible understandings of what explanatory mechanisms are. Instead, we suggest that the different varieties of context-dependence are best seen as corresponding to different research goals. Rather than conflicting with one another, these goals are complementary to each other and (...) therefore pave the way to a methodologically more cooperative approach to mechanism-based explanation in the social sciences. (shrink)

In this paper, I shall defend two main claims. First, Friedman’s famous paper “On the methodology of positive economics” (“F53”) cannot be properly understood without taking into account the influence of three authors who are neither cited nor mentioned in the paper: Max Weber, Frank Knight, and Karl Popper. I shall trace both their substantive influence on F53 and the historical route by which this influence took place. Once one has understood these ingredients, especially Weber’s ideal types, many of F53’s (...) astonishing sentences like “the more significant the theory, the more unrealistic the assumptions”, make good sense. Second, I shall claim that the much-discussed question whether Friedman’s essay espouses an instrumentalist or a realist position, is the wrong question to be asked. I shall illustrate that by a comparison with examples from physics in which also unrealistic assumptions are made. Also there, the question whether these assumptions are indicators of instrumentalism or realism is not appropriate. Cleared from these misunderstandings, F53 presents itself as an interesting and reasonable but much less controversial contribution to the methodology of economics. (shrink)

Contractarians aim to derive moral principles from the dictates of instrumental rationality alone. But it is well-known that contractarian moral theories struggle to identify normative principles that are both uniquely rational and morally compelling. Michael Moehler's recent book, *Minimal Morality* seeks to avoid these difficulties by developing a novel "two-level" social contract theory, which restricts the scope of contractarian morality to cases of deep and persistent moral disagreement. Yet Moehler remains ambitious, arguing that a restricted version of Kant's categorical imperative (...) is a uniquely rational principle of conflict resolution. We develop a formal model of Moehler's informal game-theoretic argument, which reconstructs a valid argument for Moehler's conclusion. This model, in turn, enables us to expose how a successful argument for Moehler's contractarian principle rests on assumptions that can only be justified by subtle yet significant departures from the standard conception of rationality. We thus extend our understanding of familiar contractarian difficulties by showing how they arise even if we restrict the scope of contractarian morality to a domain where its application seems both promising and necessary. We show that the problem lies not in contractarians' immodest ambitions but in the modest resources rationality can offer to satisfy them. (shrink)

The question of whether the idealized models of theoretical economics are explanatory has been the subject of intense philosophical debate. It is sometimes presupposed that either a model provides the actual explanation or it does not provide an explanation at all. Yet, two sets of issues are relevant to the evaluation of model-based explanation: what conditions should a model satisfy in order to count as explanatory and does the model satisfy those conditions. My aim in this paper is to unpack (...) this distinction and show that separating the first set of issues from the second is crucial to an accurate diagnosis of the distinctive challenges that economic models pose. Along the way I sketch a view of model-based explanation in economics that focuses on the role that non-empirical and empirical strategies play in increasing confidence in the adequacy of a given model-based explanation. (shrink)

This article aims to defend a novel account of pluralism in economics. First, it argues that what justifies pluralism is its epistemological benefits. Second, it acknowledges that pluralism has limits, and defends reasonable pluralism, or the view that we should only accept those theories and methods that can be justified by their communities with reasons that other communities can accept. Clearly, reasonable pluralism is an ideal, which requires economists of different persuasions to respect certain norms of communication while evaluating each (...) other’s theories. The article ends with a discussion of the conditions under which reasonable communication becomes possible. (shrink)

In this paper we attempt to show that rhetoric plays an important role in economics as a science and in economy as a social system. Our task is rather demonstrative, but it aims at stripping away the illusion that economics has acquired a status equal to the natural sciences, in which there is no place for subjectivism and ambiguity. Economics belongs, after all, to the realm of the social sciences and as such it is subject to the limitations of human (...) cognition and understanding. We show that economics as a science is not free from employing sophisticated methods of persuasion and rhetoric. Next, we also try to demonstrate that rhetoric can be a useful tool in creating economic reality. It does not have influence on economic processes per se, but it is helpful in constructing an institutional architecture of the economy by influencing public opinion and decision makers. (shrink)

This paper explores the socio-epistemic practice of shopping for experts. I argue that expert shopping is particularly likely to occur on what Thi Nguyen calls cognitive islands. To support my argument, I focus on macroeconomics. First, I make a prima-facie case for thinking that macroeconomics is a cognitive island. Then, I argue that ordinary people are particularly likely to engage in expert shopping when it comes to macroeconomic matters. In particular, I distinguish between two kinds of expert shopping, which I (...) call cynical and wishful, and introduce the notion of assisted expert shopping, which occurs when people or organizations shop for experts on behalf of other people. I argue that assisted expert shopping can sometime result in what I call a propagandistic use of expertise. Finally, I critically examine some possible reasons for optimism and find them wanting. I conclude by suggesting that that much of what I said about shopping for macroeconomic experts might also apply mutatis mutandis to other policy-relevant domains of expertise. (shrink)

Lipsey and Lancaster's "general theory of second best" is widely thought to have significant implications for applied theorizing about the institutions and policies that most effectively implement abstract normative principles. It is also widely thought to have little significance for theorizing about which abstract normative principles we ought to implement. Contrary to this conventional wisdom, I show how the second-best theorem can be extended to myriad domains beyond applied normative theorizing, and in particular to more abstract theorizing about the normative (...) principles we should aim to implement. I start by separating the mathematical model used to prove the second-best theorem from its familiar economic interpretation. I then develop an alternative normative-theoretic interpretation of the model, which yields a novel second best theorem for idealistic normative theory. My method for developing this interpretation provides a template for developing additional interpretations that can extend the reach of the second-best theorem beyond normative theoretical domains. I also show how, within any domain, the implications of the second-best theorem are more specific than is typically thought. I conclude with some brief remarks on the value of mathematical models for conceptual exploration. (shrink)

In Economics Rules, Dani Rodrik (2015) argues that what makes economics powerful despite the limitations of each and every model is its diversity of models. Rodrik suggests that the diversity of models in economics improves its explanatory capacities, but he does not fully explain how. I offer a clearer picture of how models relate to explanations of particular economic facts or events, and suggest that the diversity of models is a means to better economic explanations.

There is a striking contrast between the significance of Harold Hotelling’s contribution to industrial economics and the fact that his location model was invalid, unrealistic and non-robust. It is difficult to make sense of the explanatory value of Hotelling’s model based on philosophical accounts that emphasize logical validity, representational adequacy, and robustness as determinants of explanatory value. However, these accounts are misleading because they overlook the context within which the explanatory value added of a model is apprehensible. We present Hotelling’s (...) model in its historical context and show why it is an important and explanatory model despite its apparent deficiencies. (shrink)