Theories and Models in Economics: An Empirical Approach to Methodology

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Description of Theories and Models in Economics: An Empirical Approach to Methodology

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This innovative book uses in-depth empirical studies of scientific articles and takes inspiration from Nobel laureates to explore how theories and models are used in economics. Hans Lind ultimately illustrates that economics studies a chaos-theoretic system where a theory is a framework that helps formulate hypotheses rather than a set of statements about how an economy works.

Based on these empirical studies Lind analyses different kinds of path-breaking contributions in economics and why these developments do not fit Kuhns theory of progress in science. Through the close analysis of scientific articles, chapters also discuss why analysis of a simple model can help us understand how the real economy works and how a new idea becomes accepted through everyday observations, the building of models and empirical studies. He argues that it is crucial to use a range of methods, including case studies and mathematical models, to help identify causes and patterns in a science that studies a chaos-theoretic system.