Model robustness in economics: the admissibility and evaluation of tractability assumptions

Synthese 200 (1):1-23 (2022)
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Abstract

Lisciandra poses a challenge for robustness analysis as applied to economic models. She argues that substituting tractability assumptions risks altering the main mathematical structure of the model, thereby preventing the possibility of meaningfully evaluating the same model under different assumptions. In such cases RA is argued to be inapplicable. However, Lisciandra is mistaken to take the goal of RA as keeping the mathematical properties of tractability assumptions intact. Instead, RA really aims to keep the modeling component while varying the corresponding mathematical formulation. Thus, her argument concerning whether the associated mathematical properties of certain assumptions can be kept intact is irrelevant to the success of RA. Furthermore, we explicate and develop Lloyd’s account of “model robustness” to provide solutions to Lisciandra’s challenges. Our solutions are, namely, error analysis and independent empirical support. We conclude that although complex economic models do face potential dangers, there are solutions and robustness analysis need not be given up..

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Author Profiles

Ryan O'Loughlin
Queens College (CUNY)
Dan Li
Baruch College (CUNY)

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References found in this work

Galilean Idealization.Ernan McMullin - 1985 - Studies in History and Philosophy of Science Part A 16 (3):247.
Robustness Analysis as Explanatory Reasoning.Jonah N. Schupbach - 2018 - British Journal for the Philosophy of Science 69 (1):275-300.
Model robustness as a confirmatory virtue: The case of climate science.Elisabeth A. Lloyd - 2015 - Studies in History and Philosophy of Science Part A 49:58-68.
Economic Modelling as Robustness Analysis.Jaakko Kuorikoski, Aki Lehtinen & Caterina Marchionni - 2010 - British Journal for the Philosophy of Science 61 (3):541-567.
Confirmation and Robustness of Climate Models.Elisabeth A. Lloyd - 2010 - Philosophy of Science 77 (5):971–984.

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