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IDEALIZATION AND THE AIMS OF ECONOMICS: THREE CHEERS FOR INSTRUMENTALISM

Published online by Cambridge University Press:  28 November 2012

Julian Reiss*
Affiliation:
Durham University, UKjulian.reiss@durham.ac.uk

Abstract

This paper aims (a) to provide characterizations of realism and instrumentalism that are philosophically interesting and applicable to economics; and (b) to defend instrumentalism against realism as a methodological stance in economics. Starting point is the observation that ‘all models are false’, which, or so I argue, is difficult to square with the realist's aim of truth, even if the latter is understood as ‘partial’ or ‘approximate’. The three cheers in favour of instrumentalism are: (1) Once we have usefulness, truth is redundant. (2) There is something disturbing about causal structure. (3) It's better to do what one can than to chase rainbows.

Type
Articles
Copyright
Copyright © Cambridge University Press 2012

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