This is a comprehensive anthology of works concerning the nature of economics as a science, including classic texts and essays exploring specific branches and schools of economics. Apart from the classics, most of the selections in the third edition are new, as are the introduction and bibliography. No other anthology spans the whole field and offers a comprehensive introduction to questions about economic methodology.

In "Bayesian Confirmation of Theories that Incorporate Idealizations", Michael Shaffer argues that, in order to show how idealized hypotheses can be confirmed, Bayesians must develop a coherent proposal for how to assign prior probabilities to counterfactual conditionals. This paper develops a Bayesian reply to Shaffer's challenge that avoids the issue of how to assign prior probabilities to counterfactuals by treating idealized hypotheses as abstract descriptions. The reply allows Bayesians to assign non-zero degrees of confirmation to idealized hypotheses and to capture (...) the intuition that less idealized hypotheses tend to be better confirmed than their more idealized counterparts. (shrink)

When is a law too idealized to be usefully applied to a specific situation? To answer this question, this essay considers a law in hydrogeology called Darcy''s Law, both as it is used in what is called the symmetric-cone model, and as it is used in equations to determine a well''s groundwater velocity and hydraulic conductivity. After discussing Darcy''s law and its applications, the essay concludes that this idealized law, as well as associated models and equations in hydrogeology, are not (...) realistic in the sense required by the D-N account. They exhibit what McMullin calls mathematical idealization, construct idealization, empirical-causal idealization, and subjunctive-causal idealization. Yet this lack of realism in hydrogeology is problematic for reasons unrelated to the status of the D-N account. These idealizations are also problematic in applied situations. Their problems require developing two supplemental criteria, necessary for their productive application. (shrink)

The first part of this book contains a selection of Leszek Nowak’s (1943-2009) works on non-Marxian historical materialism, which are published here in English for the first time. In these papers, Nowak constructs a dynamic model of religious community, reconstructs historiosophical assumptions of liberalism and considers the methodological status of prognosis of totalitarization of capitalist society. In the second part of the book, new contributions to non-Marxian historical materialism are presented. Their authors analyze mechanisms of the oligarchization of liberal democracy, (...) the democratization of real socialism, and the development of early modern Ottoman and post-war Chinese societies. The volume will be of interest to graduate and undergraduate students, as well as specialists who deal with the development of capitalist society, philosophy of history, the philosophy of social sciences and the political philosophy of liberalism. (shrink)

Ernst Cassirer’s epistemological trilogy – Substanzbegriff und Funktionsbegriff (1910), Zur Einsteinschen Relativitätstheorie (1921) and Determinismus und Indeterminismus (1937) – is well known to Western scholars, some of whom recently devoted a number of in-depth and interesting studies to Cassirer’s epistemology. Nonetheless, they overlooked aspects of Cassirer’s concept of idealisation and his model of science as found in his last epistemological work: Determinismus und Indeterminismus. In this essay I will consider these two almost disregarded aspects of Cassirer’s epistemology in order to (...) provide a better understanding of his idea of science. (shrink)

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)

I first give a brief summary of a critique of the traditional theories of approximation and idealization; and after identifying one of the major roles of idealization as detaching component processes or systems from their joints, a detailed analysis is given of idealized laws – which are discoverable and/or applicable – in such processes and systems (i.e., idealized model systems). Then, I argue that dispositional properties should be regarded as admissible properties for laws and that such an inclusion supplies the (...) much needed connection between idealized models and the laws they `produce'' or `accommodate''. And I then argue that idealized law-statements so produced or accommodated in the models may be either true simpliciter or true approximately, but the latter is not because of the idealizations involved. I argue that the kind of limiting-case idealizations that produce approximate truth is best regarded as approximation; and finally I compare my theory with some existing theories of laws of nature.We seem to trace [in KingLear] ... the tendency of imagination toanalyse and abstract, to decomposehuman nature into its constituentfactors, and then to construct beings in whomone or more of these factors isabsent or atrophied or only incipient. (shrink)

The paper is a discussion of the idealizational interpretation of the dialectical Marxist methodology of science which has been worked out and applied in a diversity of ways by L. Nowak and the other members of the so-called Pozna school. I examine the sense in which, and the extent to which, this methodology is or can be said to be dialectical. Subsequently, I discuss and criticize Nowak's claim that this methodology can function at the same time as a meta-methodology; I (...) do this in connection with a corresponding and equally questionable claim put forward by I. Lakatos, and with one of Nowak's concrete examples, which is meant to show that certain developments in neopositivist methodology of science followed his (meta-)methodology. Lastly, I comment on the normative-descriptive character of Nowak's methodology, examine its adequacy as a comprehensive account of science, compare it with alternative accounts of the place and role of idealizations in science, and raise the question of whether Nowak's idealizational theory of socio-economic formation is a refutation or a dialectical negation of Marx's historical materialism. (shrink)

This paper explicates the philosophical and epistemological background of the MIRRORS project, which is the starting point of the various contributions in this issue. Developments in the philosophy of science will be discussed, especially the watershed work of Kuhn, in order to analyze further developments in the sociology of science, particularly starting from the Strong Programme. Finally, it will be shown how a multidisciplinary approach in Science & Technology (S&T) studies, as opposed to an interdisciplinary one, is to be preferred. (...) Specifically, the connection between this approach and the modelling and idealizational approaches to science is stressed and defended as the best available approach for the formation of a conscientious democratic knowledge-based society. (shrink)

Two types of idealization in theory construction are distinguished, and the distinction is used to give a critique of Ron Laymon's account of confirming idealized theories and his argument for scientific realism.

Kitcher urges us to think of mathematics as an idealized science of human operations, rather than a theory describing abstract mathematical objects. I argue that Kitcher's invocation of idealization cannot save mathematical truth and avoid platonism. Nevertheless, what is left of Kitcher's view is worth holding onto. I propose that Kitcher's account should be fictionalized, making use of Walton's and Currie's make-believe theory of fiction, and argue that the resulting ideal-agent fictionalism has advantages over mathematical-object fictionalism.

Questions concerning the epistemological status of computer science are, in this paper, answered from the point of view of the formal verification framework. State space reduction techniques adopted to simplify computational models in model checking are analysed in terms of Aristotelian abstractions and Galilean idealizations characterizing the inquiry of empirical systems. Methodological considerations drawn here are employed to argue in favour of the scientific understanding of computer science as a discipline. Specifically, reduced models gained by Dataion are acknowledged as Aristotelian (...) abstractions that include only data which are sufficient to examine the interested executions. The present study highlights how the need to maximize incompatible properties is at the basis of both Abstraction Refinement, the process of generating a cascade of computational models to achieve a balance between simplicity and informativeness, and the Multiple Model Idealization approach in biology. Finally, fairness constraints, imposed to computational models to allow fair behaviours only, are defined as ceteris paribus conditions under which temporal formulas, formalizing software requirements, acquire the status of law-like statements about the software systems executions. (shrink)

The issue of biotechnology has been chosen in the MIRRORS project in order to analyze the sometimes uneasy relationship between science and society. After analyzing the situation of biotechnology regarding the GMO debate in Spain, France and Italy during a previous MIRRORS Workshop (This MIRRORS Workshop is entitled European Policies and Knowledge Society, held in Catania on December 15th 2008, during the which the undersigned, Anna Benedetta Francese and Cinzia Rizza discussed three papers about this topic [see the MIRRORS website (...) www.mirrors-project.it]), in this essay I have tried to tackle the relationship science–society, focalizing my attention on the epistemological and methodological problems behind the biotechnology debate that are often not clearly expressed, remaining mainly tacitly presupposed. I will take as a starting point some questions about the role of science in society and about the way science is used by policy makers in decision-making processes. These questions are fundamental in order to analyze (and possibly to propose salvation strategies) the existing problems of the relationship between science and society which has assumed, especially nowadays, more conflictual aspects. Our Research Team firmly holds that it is not possible to tackle this topic without an in-depth discussion of the most significant epistemological questions regarding research, discussions, and methods of biotechnology. (shrink)

A sequence of theoretical models is constructed as an extension to Leszek Nowak's theory of socialist society to explain important characteristics of the violent party purges in Soviet Stalinism. According to these models, purges are a regular and systemic feature of a socialist system during a certain phase of development (modelled as the phase of social enslavement). Contrary to traditional conceptions which interpret the purges essentially as resulting from the actions of an almost omnipotent, and partly irrational, despot, the models (...) presented here provide an explanation which does not need to conceive Stalin as the architect of terror (Robert Conquest), i.e. as the long-term planner of the terror. However, the concepts presented here preserve the vital arguments of the traditional approach, thereby contradicting the revisionist pattern of interpretation. In particular the models seek to provide a theoretical base for an explanation of the moderation of inner-party terror from 1938. This moderation is interpreted as resulting from a modification of the then existing ideology (and corresponding habits of the party's leadership); a modification which in itself had been stimulated by the disastrous effects of the great purge in 1937/38. This modification can be theoretically conceived as a process of ideological learning. The historical fact that the post-war purges (i.e. the Leningrad affair in 1949 and the Mingrelian affair 1951/52) did not reach such an enormous extent as the purges of the late 1930s may thus be attributed to a process of ideological learning. (shrink)

This paper defends the viability of de-idealization strategies in economic modeling against recent criticism. De-idealization occurs when an idealized assumption of a theoretical model is replaced with a more realistic one. Recently, some scholars have raised objections against the possibility or fruitfulness of de-idealizing economic models, suggesting that economists do not employ this kind of strategy. We present a detailed case study from the theory of industrial organization, discussing three different models, two of which can be construed as de-idealized versions (...) of the first. We conclude that recent pessimism about de-idealization in economics is largely unfounded, and that de-idealization strategies are not only possible but also widely employed in economics. (shrink)

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. (shrink)

This paper addresses the methodological problem of analysing what it is to explain observed behaviours of engineered computing systems, focusing on the crucial role that abstraction and idealization play in explanations of both correct and incorrect BECS. First, it is argued that an understanding of explanatory requests about observed miscomputations crucially involves reference to the rich background afforded by hierarchies of functional specifications. Second, many explanations concerning incorrect BECS are found to abstract away from descriptions of physical components and processes (...) of computing systems that one finds below the logic circuit and gate layer of functional specification hierarchies. Third, model-based explanations of both correct and incorrect BECS that are provided in the framework of formal verification methods often involve idealizations. Moreover, a distinction between restrictive and permissive idealizations is introduced and their roles in BECS explanations are analysed. (shrink)

Mentalism preserves the triad: brain's state — thought — state of affairs whereas phy‐sicalism identifies the former two elements of it. Both stands meet the famous difficulties. But these presuppose ontological actualism. On the ground of ontological possibilism, claiming the existence of all possible worlds, one may identify a thought with the corresponding state of affairs in a possible world. Yet, possibilism turns out to be too narrow to carry such an identification and requires a significant generalization.

I. A. Kieseppä's criticism of the methodological use of the theory of verisimilitude, and D. B. Resnik's arguments against the explanation of scientific method by appeal to scientific aims are critically considered. Since the notion of verisimilitude was introduced as an attempt to show that science can be seen as a rational enterprise in the pursuit of truth, defenders of the verisimilitude programme need to show that scientific norms can be interpreted as rules that try to increase the degree of (...) truthlikeness of scientific theories. This possibility is explored for several approaches to the problem of verisimilitude. (shrink)

The purpose of this essay is to present and analyse the basic assumptions of Leszek Nowak’s conception of the unity of science. According to Nowak, the unity of science is manifested in the common application of the method of idealisation in scientific research. In accordance with his conception, regardless of the discipline they represent, researchers go through the same stages in building a theory. Two key ones among them are: introducing idealising assumptions into the representation and then their concretisation. In (...) this view, idealisation is the basis of the scientific method, while other cognitive procedures complement it. Nowak’s conception has particular relevance in the context of the dispute between naturalism and anti-naturalism and in the context of the continuing rift between social scientists and natural scientists. It calls into question the anti-naturalist thesis of the ontological uniqueness of social sciences and the resulting methodological consequences. I argue that Nowak’s conception is a cognitively valuable contribution to the contemporary epistemology of science, but it also has weaknesses, mainly due to the limitations of applying the idealisation-concretisation scheme in research practice. For it turns out, as I point out in this essay, that many idealising assumptions are not subject to concretisation and that concretisations do not always condition an increase in the explanatory and/or predictive power of the representations. (shrink)

The use of idealized scientific theories in explanations of empirical facts and regularities is problematic in two ways: they don’t satisfy the condition that the explanans is true, and they may fail to entail the explanandum. An attempt to deal with the latter problem was proposed by Hempel and Popper with their notion of approximate explanation. A more systematic perspective on idealized explanations was developed with the method of idealization and concretization by the Poznan school in the 1970s. If idealizational (...) laws are treated as counterfactual conditionals, they can be true or truthlike, and the concretizations of such laws may increase their degree of truthlikeness. By replacing Hempel’s truth requirement with the condition that an explanatory theory is truthlike one can distinguish several important types of approximate, corrective, and contrastive explanations by idealized theories. The conclusions have important consequences for the debates about scientific realism and anti-realism. (shrink)

This paper defends the viability of de-idealization strategies in economic modeling against recent criticism. De-idealization occurs when an idealized assumption of a theoretical model is replaced with a more realistic one. Recently, some scholars have raised objections against the possibility or fruitfulness of de-idealizing economic models, suggesting that economists do not employ this kind of strategy. We present a detailed case study from the theory of industrial organization, discussing three different models, two of which can be construed as de-idealized versions (...) of the first (the so-called Bertrand model of oligopoly). We conclude that recent pessimism about de-idealization in economics is largely unfounded, and that de-idealization strategies are not only possible but also widely employed in economics. (shrink)

This paper contributes to the philosophical accounts of generalisation in formal modelling by introducing a conceptual framework that allows for recognising generalisations that are epistemically beneficial in the sense of contributing to the truth of a model result or component. The framework is useful for modellers themselves because it is shown how to recognise different kinds of generalisation on the basis of changes in model descriptions. Since epistemically beneficial generalisations usually de-idealise the model, the paper proposes a reformulation of the (...) well-known distinction between abstraction and idealisation. A reformulated notion of abstraction is needed because the extant accounts yield wrong judgments when model-modifications introduce implicit assumptions. (shrink)

The aim of this paper is to consider the standard objections put against the construction of metanarratives in the philosophy of history. The author distinguishes following intelectual sources questioning the grasp of Entirety in the philosophy of history: anti-naturalistic German philosophy of science, dogmatic Marxism, liberalism and postmodernism. Analysis of the content of these stances allows for disclose of hidden methodological and theoretical premises which are responsible for misunderstanding and critique of the historiosophical discourse.

The paper is a discussion of the idealizational interpretation of the dialectical Marxist methodology of science which has been worked out and applied in a diversity of ways by L. Nowak and the other members of the so-called Poznań school. I examine the sense in which, and the extent to which, this methodology is or can be said to be dialectical. Subsequently, I discuss and criticize Nowak's claim that this methodology can function at the same time as a meta-methodology; I (...) do this in connection with a corresponding and equally questionable claim put forward by I. Lakatos, and with one of Nowak's concrete examples, which is meant to show that certain developments in neopositivist methodology of science followed his methodology. Lastly, I comment on the normative-descriptive character of Nowak's methodology, examine its adequacy as a comprehensive account of science, compare it with alternative accounts of the place and role of idealizations in science, and raise the question of whether Nowak's idealizational theory of socio-economic formation is a refutation or a dialectical negation of Marx's historical materialism. (shrink)

Is there a unique way to de-idealize models? If not, how might the possible ways of reducing the distortion between models and reality differ from each other? Based on an empirical case study conducted in financial markets, this paper discusses how a popular valuation model (the Discounted Cash Flow model) idealizes reality and how the market participants de-idealize it in concrete market situations. In contrast to Cartwright's view that economic models are generally over-constrained, this paper suggests that valuation models are (...) under-constrained. This serves as the reason why the relaxation of simplifying assumptions and concretization do not work as methods of de-idealization. The paper finds that financial market participants de-idealize models using commentary that takes the form of judgment. As a conclusion, a hypothesis is formulated that proposes that the more underdetermined the model is the bigger role narrative and other pragmatic elements play in the process of model application. (shrink)

It is undeniable that much scientific work is model-based. Despite this, the justification for this reliance on models is still controversial. A particular difficulty here is the fact that many scientific models are based on assumptions that do not describe the exact details of many or even any empirical situations very well. This raises the question of why it is that, despite their frequent lack of descriptive accuracy, employing models is scientifically useful.One..

Idealization is ubiquitous in human cognition, and so is the inclination to be puzzled by it: what to make of ideal gas, infinitely large populations, homo economicus, perfectly just society, known to violate matters of fact? This is apparent in social science theorizing, recent philosophy of science analyzing scientific modeling, and the debate over ideal and non-ideal theory in political philosophy. I will offer a set of concepts and principles to improve transparency about the precise contents of idealizations and their (...) distinct functions. (shrink)