Levels of aspiration among economists

31 Aug, 2021 at 10:10 | Posted in Economics | Comments Off on Levels of aspiration among economists

225px-allais_pn_maurice-24x30-2001bSubmission to observed or experimental data is the golden rule which dominates any scientific discipline. Any theory whatever, if it is not verified by empirical evidence, has no scientific value and should be rejected.

Maurice Allais

Formalistic deductive ‘Glasperlenspiel’ can be very impressive and seductive. But in the realm of science it ought to be considered of little or no value to simply make claims about models and lose sight of reality.

Mainstream economics has since long more or less given up on the real world and contents itself with proving things about thought up worlds. Empirical evidence — still — only plays a minor role in economic theory, where models largely function as a substitute for empirical evidence. Hopefully humbled by the ever growing manifest failure of its theoretical pretences, the one-sided, almost religious, insistence on axiomatic-deductivist modeling as the only scientific activity worthy of pursuing in economics will give way to methodological pluralism based on ontological considerations rather than formalistic tractability.

To have valid evidence is not enough. What economics needs is sound evidence. Why? Simply because the premises of a valid argument do not have to be true, but a sound argument, on the other hand, is not only valid, but builds on premises that are true. Aiming only for validity, without soundness, is setting the economics aspiration level too low for developing a realist and relevant science.

Blog at WordPress.com.
Entries and Comments feeds.