Idealizing Reduction: The Microfoundations of Macroeconomics [Book Review]

Erkenntnis 73 (3):329 - 347 (2010)
  Copy   BIBTEX

Abstract

The dominant view among macroeconomists is that macroeconomics reduces to microeconomics, both in the sense that all macroeconomic phenomena arise out of microeconomic phenomena and in the sense that macroeconomic theory—to the extent that it is correct—can be derived from microeconomic theory. More than that, the dominant view believes that macroeconomics should in practice use the reduced microeconomic theory: this is the program of microfoundations for macroeconomics to which the vast majority of macroeconomists adhere. The "microfoundational" models that they actually employ are, however, characterized by another feature: they are highly idealized, even when they are applied as direct characterizations of actual data, which itself consists of macroeconomic aggregates. This paper explores the interrelationship between reductionism and idealization in the microfoundational program and the role of idealization in empirical modeling

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 94,549

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Analytics

Added to PP
2009-01-28

Downloads
130 (#141,596)

6 months
8 (#529,789)

Historical graph of downloads
How can I increase my downloads?

Author's Profile

Kevin Hoover
Duke University

Citations of this work

Methodological Individualism in Ecology.James Justus - 2014 - Philosophy of Science 81 (5):770-784.
Causal structure and hierarchies of models.Kevin D. Hoover - 2012 - Studies in History and Philosophy of Science Part C: Studies in History and Philosophy of Biological and Biomedical Sciences 43 (4):778-786.

View all 10 citations / Add more citations

References found in this work

Nature's capacities and their measurement.Nancy Cartwright - 1989 - New York: Oxford University Press.
Galilean Idealization.Ernan McMullin - 1985 - Studies in History and Philosophy of Science Part A 16 (3):247.
Social Choice and Individual Values.Irving M. Copi - 1952 - Science and Society 16 (2):181-181.

View all 18 references / Add more references