180096 SE Economic Models and Reality: Topics in Philosophy of Economics (2020S)

Economists use models to explain reality. A consequence is that, upon choosing with which model to work, they are influenced by their use of two notoriously disputed concepts: that of ‘explanation’ and that of ‘reality.’ Samuelson’s (1938) classical defense of revealed preference theory is a good example of the phenomenon. First, he asserts that “the discrediting of utility as a psychological concept robbed it of its only possible virtue as an explanation of human behaviour.” Second, he draws on an implicit understanding of what a good explanation is to show, without using the “discredited concept,” how one may build a satisfactory theory of consumer behavior.

Nowadays, most mainstream economic models involve mental kinds (preferences, desires, beliefs, motives, intentions,…) as well as social kinds (households, firms, money, race, gender, …). The use of some such kinds may appear, at first sight, to run against the idea of of scientific explanation. It may not be clear, for instance, what their ontological status is nor whether this status allows us to include them in a causal account of human behavior. Such considerations may give economists a reason to shy away from using mental or social kinds in their models. It may also give them a reason to think of the role of models in a specific way. In this seminar, we will discuss selected papers and book excerpts that took a central place in the analytical tradition of philosophy of mind and in social ontology.

At the end of the term, students will be familiar with a framework within which the nature of the social sciences can be discussed.