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. (shrink)

Artifacts are ubiquitous and influential in our world, but their nature and existence are controversial. Several theories have been proposed to explain the ontology of artifacts. Drawing on Popper's theory of three worlds, this paper suggests a metaphysics for artifacts along the line of a critical rationalist (CR) approach. This theory distinguishes between three realms of reality: the physical world (World 1), the mental world (World 2), and the world of objective knowledge (World 3). The paper argues that artifacts have (...) different ontological components that correspond to these three realms, and that each component is real and causal. The paper shows how this perspective can account for the intentional and functional aspects of artifacts, as well as their dependence on plans that influence different realms of reality. The paper explains how this pluralistic ontology, compared to the rival theories, enables one to explain the relevant ontological problems of artifacts. The paper also explores how this proposal can lead to a research program encompassing a broader range of technologies, such as social artifacts. In sum, the paper suggests that Popper's three worlds theory provides a rich and comprehensive framework for understanding the metaphysics of artifacts. (shrink)

A constantly changing social reality means economic theories, even if correct today, need to be constantly revised, updated, or abandoned. To maintain an up-to-date understanding of its subject matter, economists have to continuously assess their theories even those that appear to be empirically corroborated. Economics could gain from a method that describes and is capable of generating novel explanatory hypotheses. A pessimistic view on the existence of such a method was famously articulated by Karl Popper in The Logic of Scientific (...) Discovery. He wrote ‘there is no such a thing as a logical method of having ideas or a logical reconstruction of this process.’ Herbert Simon responded to Popper and argued the opposite, namely, that there is a model of discovery and its name is abduction. Simon acknowledges his debt to Charles Peirce – the first modern logician to explicitly formulate a theory of abduction – and explains that abduction is a model of discovery that works as a problem-solving heuristic encoded.. (shrink)

The Myth of the Framework, Popper attacks the doctrine that truth is relative to one's intellectual background. The same collection refers to his "situational analysis." This article explores the implications of both for spatial planning. Spatial planners have to justify proposals. The article first summarizes earlier work on planning methodology evolving around the rationality principle and the implications for it of Popper's work for how to do this. It then discusses the notion of the definition of the decision situation, which (...) flows from this principle. This, of course, implies taking a leaf out of Popper's book where he discusses situational analysis. The article then gives an account of the author's work on Dutch planning doctrine, relating it to the definition of decision situations in planning and confronting it with Popper's strictures against The Myth of the Framework. The conclusion is that, whereas in the sciences that are after explain ing reality in terms of universal laws, Popper's argument holds, in planning it does not. Planning is about the search for the right course of action. In it, Popper's concern with fighting relativism and what he calls "justification" is misplaced. The quality of decisions depends on the position and the concerns of the decision taker. Relativism is in-built and so is the need to justify decisions. (shrink)

Cet article utilise la notion de convention afin de préciser une condition nécessaire à la performation du monde social. On considère ici que l’influence des théories économiques sur le monde social peut être analysée en termes de traduction de conventions scientifiques en conventions sociales. Une telle perspective nous amène à souligner un élément essentiel d’une telle traduction : pour performer le monde social, une notion théorique doit dans un premier temps prendre une posture empirique. On étudie plus particulièrement l’exemple emblématique (...) de la rationalité économique comme concept central d’un nouveau type de politique publique : l’économie des nudges. Classification J.E.L. : B41, C91, Z1. (shrink)

Discussions of Karl Popper's falsificationist philosophy of science appear regularly in the recent literature on economic methodology. In this literature, there seem to be two fundamental points of agreement about Popper. First, most economists take Popper's falsificationist method of bold conjecture and severe test to be the correct characterization of scientific conduct in the physical sciences. Second, most economists admit that economic theory fails miserably when judged by these same falsificationist standards. As Latsis states, “the development of economic analysis would (...) look a dismal affair through falsificationist spectacles.”. (shrink)

In contrast to dominant approaches to human reason involving essentially a logical and instrumental conception of rationality easily modeled by artificial intelligence mechanisms, I argue that the specific capacities of the human mind are meta-analytic in nature, understood as irreducible to the analytic or the logical, or else the computational. Firstly, the assumption of a meta-analytical level of rationality is derived from key insights developed in various branches of the social sciences. This meta-analytical level is then inferred from Gödel’s incompleteness (...) theorem. On these bases, and with the help of psychological approaches to consciousness, I argue that human rationality may be characterized as the capacity to make meaningful use of signs. (shrink)

Popper’s ‘Situational Analysis’ (SA) constitutes his methodological proposal for the social sciences. We claim that the two hallmarks of SA are: (i) that scientists assume they possess a ‘wider’ view of the problem-situation than actors do, and (ii) use the model as an ideal ‘benchmark’ scenario to identify thedeviationof actors’ actual behaviour from the former. We argue that SA is not a generalization of the neoclassical theory of individual behaviour but captures instead the methodology adopted by modern behavioural economists. Last, (...) we argue that SA highlights a way of acquiring knowledge that has gone unnoticed in the literature. (shrink)

This article assesses the value of Karl Popper's situational analysis for contem porary sociology We maintain that this element of Popper's social science methodology has been largely neglected by sociologists and suggest that this is because it is borrowed from economics. As such, situational analysis has much in common with recent attempts to introduce rational choice in sociology. Our main question is this: What is the contribution of situational analysis to the current debate about rational choice in sociology? Our answer (...) is that Popper has little to add to this debate. His formulation of situational analysis is too general and too vague to be much of a guide to research. Among other things, situational analysis fails to pay due attention to interests and to social interaction in the explanation of social phenomena. On the positive side, we notice that Popper does include social institutions as the most important element in individuals' situations. (shrink)

ABSTRACT The status and role of Popper’s ‘Rationality Principle’ (RP) is still the subject of disputes. The ‘prevailing view’ among Popper’s commentators seems to be that RP is better interpreted as a methodological principle. Yet, this view is challenged in a recent study where RP is interpreted as an‘idealization’. We critically review these two accounts of RP and propose a novel one according to which RP is, first and foremost, the scientific version of a heuristic that ordinary people unconsciously use (...) when they seek to explain and predict other people’s behavior. However, we recognize that, to the extent RP is part of a methodological strategy whereby, in the wake of adverse empirical results, social scientists place the ‘onus of proof’ on their situational model it is legitimate to claim that RP is adopted, at least partly, for methodological reasons. Further, to the extent that the adoption of RP implies suppressing those mental processes that may affect actors’ reasoning and willpower it is also legitimate to claim that RP is, at least partly, an ‘idealization’. We conclude that the status and role of RP is multi-faceted and that the three accounts of RP complement each other. (shrink)

One of the main goals of scientific research is to provide a description of the empirical data which is as accurate and comprehensive as possible, while relying on as few and simple assumptions as possible. In this paper, I propose a definition of the notion of few and simple assumptions that is not affected by known problems. This leads to the introduction of a simple model of scientific progress that is based only on empirical accuracy and conciseness. An essential point (...) in this task is the understanding of the role played by measurability in the formulation of a scientific theory. This is the key to prevent artificially concise formulations. The model is confronted here with many possible objections and with challenging cases of real progress. Although I cannot exclude that the model might have some limitations, it includes all the cases of genuine progress examined here, and no spurious one. In this model, I stress the role of the state of the art, which is the collection of all the theories that are the only legitimate source of scientific predictions. Progress is a global upgrade of the state of the art. (shrink)

Many methodologists are firmly convinced that Popper's arguments concerning the status of the rationality principle (RP) are incoherent or incompatible with the essentials of falsificationism. The present essay first shows that the accusation of incompatibility of situational logic with falsificationism does not hold up to scrutiny but then shows that Popper's arguments are nonetheless flimsy if not indefensible. For it seems that one can distinguish between two different versions of the RP in Popper's writings. If the first version is plainly (...) "objectivist" and can be characterized with Popper as empirically false, the second one is rather "subjectivist" and is not falsifiable as such. The essay shows that this second reading of the RP is the one that Popper finally adopts but that, unfortunately enough, this formulation of the RP looks more like a metaphysical statement than like an empirical law. It could then be held to be a priori valid as such, by analogy with Popper's line of argument concerning the principle of causality. If this is correct, then Popper's thesis on the empirical status of the RP is confuted. (shrink)

Popper's version of situational analysis, with its focus on the logic of situations and the rationality principle, fails to provide cogent explanations of the human decisions and actions underpinning social phenomena. It so fails because where he demanded objectivism and formalism in the social sciences, his substantive arguments lost contact with the psychological and subjectivist realities of the human realm. But Popper also devised some key elements of a social ontology. It is argued that although there are crucial gaps in (...) his ontology, it can be augmented to give situational analysis the potential to reach beyond pure logic and rationality and to bring social theory closer to grasping the real world of human action. (shrink)