On Wed, 15 Feb 1995 09:54:28 -0800 Eric Nilsson said: >One good impact of the notion of economic theory as "story" >is that it frees the theorist from blindly accepting previous >theories as the "truth" or as "scientific." They are simply >stories. > >One bad impact of this notion is that some seem to claim >that all stories are equally good and that no reference >needs to be made to empirical evidence. (Those using >the second approach often invoke the related idea that >each theory, or story, has its own "facts.") > Right: McCloskey et al are right to label economic models as mere stories (just like the non-quantitative theories). Even better would be the word "methaphor" or "simile": the model is supposed to be _like_ the world, just as a simile is like the world. (Here the "world" refers to the empirical realm.) the problem is that this insight is often linked to a anti-realist, idealist, relativist epistemology, in which is essentially assumed that empirical reality has no existence independent of our perceptions of it: in this view, each perception is equally valid, each model is equally good, or more reasonably, that each model can be judged only on the basis of its internal logical coherence and elegance, how well conclusions are derived from the assumptions. With a realist epistemology, on the other hand, we are trying to tell the best stories (or make the best similes about) the dimly-perceived empirical reality (the shadows on the wall of the cave). In addition to elegance and logical coherence, we have to care about the correspondence between the model or theories and the empirical world. We also have to find the model or theories that help us understand what's going on the best, in order to help us attain our goals. A good theory can be tested in practice. BTW, unlike Plato (with the shadows on the cave-wall metaphor) I am a materialist: the elements of the dimly received reality are not dim reflections of some ideal forms, but are instead real objects that may vary tremendously. (the "typical" object is an average of a variety havving some shared characteristics rather than being a reflection of some hidden ideal.) in ideal solidarity, Jim Devine [EMAIL PROTECTED] or [EMAIL PROTECTED] Econ. Dept., Loyola Marymount Univ., Los Angeles, CA 90045-2699 USA 310/338-2948 (daytime, during workweek); FAX: 310/338-1950 "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- K. Marx, paraphrasing Dante.
