A few aspects of the issue of realism are addressed in the context of a social science. The paper looks for adjustments needed in our conceptions of scientiflc realism to accommodate some peculiarities of economics. Ontologically speaking, economics appears to be closely linked to commonsense conceptions of the world, thus the problem of theoretical concepts does not emerge in the same form it is often taken to exist in physics. Theory formation is largely a matter of (...) idealization and isolation among observables rather than postulation of unobservables. Given that isolative theories violate the truth in many ways, truth is more of a problem than existence in a realism pertaining to economics. The idea of significant truth -which is able to tolerare varieties of untruths in theories- is suggested to be based on the notion of the way the world works; this is a matter of the causal structure and functioning of the world. None of this is undermined by the acknowledgement that economist’s attittudes and decisions are shapped by rhetorical persuasion. (shrink)

Many participants in the debate over the current state and recent developments of economics make claims that are unrefined, simplistic, often exaggerated. This is understandable: the stakes are high, the issues trigger emotional responses, and few participants are motivated or equipped to seek more nuanced analyses. To assert, or to deny, that economics as a scientific discipline or a particular part of it (such as a model) is about reality – or refers to reality, represents it, is (...) true about it, or is truthlike about it – is to make a very complex and highly ambiguous claim. 1 The disputants often make claims that have parallels in the philosophical controversy between scientific realists and their opponents, or at any rate those claims can be partly analyzed in terms of some of the arguments presented in this philosophical controversy. The question addressed here is whether realism about economics is a viable position. The argument proceeds by way of refuting a number of arguments against realism about economics. I suggest a genuine controversy over the factuality of any particular strand or piece of economics requires realism as a general interpretation of economics – or at any rate requires debunking the anti-realist arguments discussed below. “The issue of realism” as most economists would recognize it, is not exactly the issue of realism as philosophers recognize it. “The issue of realism” in economics is about realisticness as a property of theories , while (part of) the issue of realism in philosophy is about realism as a theory of theories . But some parts of the issue of realisticness (such as those related to reference and truth) in economics can be translated into aspects of the issue of realism as a theory of theories. Thus there is also an issue of realism (with no quotation marks) in economics. It is this issue of realism that has to be settled as a prerequisite for critical assessments of important forms of realisticness of economic theories. (shrink)

My philosophical intuitions are those of a scientific realist. In addition to being realist in its philosophical outlook, my philosophy of economics also aspires to be realistic in the sense of being descriptively adequate, or at least normatively non-utopian, about economics as a scientific discipline. The special challenge my philosophy of economics must meet is to provide a scientific realist account that is realistic of a discipline that deals with a complex subject matter and operates with (...) highly unrealistic models. Unrealisticness in economic models must not constitute an obstacle to realism about those models. What follows is a selective and somewhat abstract summary of my thinking about economics, outlined from two perspectives: first historical and autobiographical, then systematic and comparative. The first angle helps understand motives and trajectories of ideas against their backgrounds in intellectual history. My story turns out to have both unique and generalizable aspects. The second approach outlines some of the key concepts and arguments as well as their interrelations in my philosophy of economics, with occasional comparisons to other views. More space will be devoted to this second perspective than to the first. (shrink)

Economics is a controversial scientific discipline. One of the traditional issues that has kept economists and their critics busy is about whether economic theories and models are about anything real at all. The critics have argued that economic models are based on assumptions that are so utterly unrealistic that those models become purely fictional and have nothing informative to say about the real world. Many also claim that an antirealist instrumentalism (allegedly outlined by Milton Friedman in (...) 1953) justifying such unrealistic models has become established as the semi-official practitioners' philosophy of conventional economics. Others argue that what is the case in the economy and the way economics relates to it are socially constructed such that there is no economics-independent way the world worls or truths about it. On both of these pictures, realism would seem to have little do with economics. These pictures are too simplistic. There is more realism in and about economics than first would appear. To see this requires not just looking mere closely, but also adjusting one's conception of scientific realism. It also requires taking a critical stance on much of what economicsts themselves and other commentators have claimed. Yet, historically, there is much wisdom available in the philosophical self-image of the discipline. (shrink)

This essay attempts to distinguish the pressing issues for economists and economic methodologists concerning realism in economics from those issues that are of comparatively slight importance. In particular I shall argue that issues concerning the goals of science are of considerable interest in economics, unlike issues concerning the evidence for claims about unobservables, which have comparatively little relevance. In making this argument, this essay raises doubts about the two programs in contemporary economic methodology that raise (...) the banner of realism. In particular I argue that the banner makes it more difficult to relate the concerns of those who wave it to those of other methodologists. Although this essay argues that many of the debates in this century between scientific realists and their opponents are not relevant to economics, it does not attack scientific realism, and it does not urge economists or economic methodologists to reject it. (shrink)

This paper challenges Mäki's argument about commonsensibles by offering a case study from contemporary microeconomics – contemporary revealed preference theory (hereafter CRPT) – where terms like "preference," "utility," and to some extent "choice," are radical departures from the common sense meanings of these terms. Although the argument challenges the claim that economics is inhabited solely by commonsensibles, it is not inconsistent with such folk notions being common in economic theory.

The tone of this paper is largely critical. Therefore, I would like to begin by praising Donald McCloskey and Arjo Klamer for their exciting and provocative initiative in the metatheory of economics. They have done us a great favor by opening our eyes to some hidden aspects in the intellectual practices of economists. They have shown that economics is rhetoric; it is persuasion, discourse, conversation, and negotiation, to use their favorite phrases. They have provided plausible arguments and illuminating (...) examples to convince us of the literary character of economic reasoning, notwithstanding the formal languages used by economists and the positivist pretensions typical of the self-image of the discipline. However, McCloskey and Klamer have been less successful in trying to convince us of what economics is not. In particular, it concerns me that they have opened up a gap between rhetoric and realism. They seem to think that because economics has a rhetorical character, it cannot be understood in realist terms. I will argue that this view is mistaken: rhetoric and realism do not exclude each other, but rather they are capable of being combined in a coherent methodology of economics. It is a valuable contribution to import the insights of the newly rehabilitated rhetoric to the metatheory of economics; but it is unnecessary to marry them with enthusiasm about the fashionable anti-realism of Richard Rorty and others. While this is my overall thesis, it is clear that only initial steps towards its substantiation can be taken in this paper. I intend to proceed as follows. I will first make an attempt to locate the problem at hand in the history of the metatheory of economics. Then I will point out those elements in rhetorical metatheory as practiced and defended by Klamer and McCloskey that apparently have anti-realist or non-realist assumptions or implications, either directly or via considerations of scientific rationality. Next I will formulate a few concepts of realism, the differences between which have been ignored in the methodology of economics to this day. Then I will make preliminary attempts to inquire into the mutual compatibility of the rhetorical insights provided by McCloskey and Klamer and realism in this context. I will show that, in principle, there should be no insurmountable obstacles to combining the two; in some of its senses, realism will even turn out to be presupposed by the rhetorical approach. I do not primarily intend to argue for realism as such in this paper. Instead, I will argue for the compatibility of realism and rhetoric. The argument is based on Klamer's and McCloskey's own commitments; in this sense, the argument is immanent to their rhetorical approach. As a final point, I will argue that one should not be indifferent about realism: it does make a difference in economics and in the methodology of economics whether rhetoric is accepted with or without realism. (shrink)

Building upon Brentano’s Psychology from an empirical standpoint. Routledge, London, [1874] Brentano 1995) reintroduction of the concept of intentionality to the contemporary philosophy, Tim Crane has famously presented the intentionality as the mark of the mental. Accordingly, the problem of “intentional existence” has resurfaced in Crane’s revival of the Brentanoian theme. Here, I revise Crane’s construal of Brentano’s notion of intentional inexistence and reinterpret it in terms of a moderate version of relationalism. My relationalist theory of intentionality is inspired by (...) what goes by the name of Noneliminativist Structural Realism in the contemporary philosophy of science. NSR allows for a robust realist interpretation of the role of scientific models. The underlying insight of the paper is that it is best to be realist about the structure of the intentionality, which is the common element of the diverse theories of intentional objects. The Outcome is Structural Realist theory of Intentionality. I argue that SRI is not liable to the notorious objection of the impossibility of relata-less relations. I conclude that SRI fulfils the goal of robust psychological realism more economically and straightforwardly than Crane’s application of the notion of models. (shrink)

The paper questions the compatibility of critical realism with ecological economics. In particular, it is argued that there is radical dissonance between ontological presuppositions of ecological economics and critical realist perspective. The dissonance lies in the need of ecological economics to state strict causal regularities in socio-economic realm, given the environmental intuitions about the nature of economy and the role of materiality and non-human agency in persistence of economic systems. Using conceptual apparatus derived from Andrew (...) Brown’s critique of critical realism and Bruno Latour’s actor-network theory, the paper refuses ontological nature/society dualism employed by critical realism, and stresses the role of non-humans in practical production and reproduction of socio-economic networks on the one hand, and in broadly defined ecological economic research on the other hand. (shrink)

There is an embarrassing polarization of opinions about the status of economics as an academic discipline, as reflected in epithets such as the Dismal Science and the Queen of the Social Sciences. This collection brings together some of the leading figures in the methodology and philosophy of economics to provide a thoughtful and balanced overview of the current state of debate about the nature and limits of economic knowledge. Authors with partly rival and partly complementary perspectives (...) examine how abstract models work and how they might connect with the real world, they look at the special nature of the facts about the economy, and they direct attention towards the academic institutions themselves and how they shape economic research. These issues are thus analysed from the point of view of methodology, semantics, ontology, rhetoric, sociology, and economics of science. (shrink)

Everything you always wanted to know about structural realism but were afraid to ask Content Type Journal Article Pages 227-276 DOI 10.1007/s13194-011-0025-7 Authors Roman Frigg, Department of Philosophy, Logic and Scientific Method, London School of Economics and Political Science, Houghton Street, London, WC2A 2AE UK Ioannis Votsis, Philosophisches Institut, Heinrich-Heine-Universität Düsseldorf, Universitätsstraße 1, Geb. 23.21/04.86, 40225 Düsseldorf, Germany Journal European Journal for Philosophy of Science Online ISSN 1879-4920 Print ISSN 1879-4912 Journal Volume Volume 1 Journal Issue Volume (...) 1, Number 2. (shrink)

As microeconomic calculus and macroeconomic estimation superseded earlier approaches to political economy, broad questions about how things are (ontology), how things might be known (epistemology), and how science should proceed (methodology) were neglected. As a corrective, Critical Realism (CR) has been proposed as an alternative to the orthodox deductive‐nomological (ODN) tradition; i.e., to mathematical deduction and statistical induction. In their place, retroduction—the use of analogy, metaphor, intuition and ordinary language—is supposed to illuminate root causes by identifying the deep (...) mechanisms that govern events. CR offers guidelines for social science that are of a most general kind: from initial “premises,” retroduction proceeds to hypotheses about deep structures and mechanisms. The initial premises are determined by a desire to understand events that surprise us. However, nothing is thereby excluded, including ODN. And since historical processes are revealed neither by assumption nor by the net effects of whatever initial conditions hold, it might be apposite to drop the search for (deep) socio‐economic laws and to use whatever evidence is at hand to see whether, and the extent to which, ideal types apply to any given historical sequence. (shrink)

Economists customarily talk about the ‘realism’ of economic models and of their assumptions and make descriptive and prescriptive judgements about them: this model has more realism in it than that, the realism of assumptions does not matter, and so on. This is not the way philosophers mostly use the term ‘realism’ thus there is a major terminological discontinuity between the two disciplines. The following remarks organise and critically elaborate some of the philosophical usages of (...) the term and show some of the ways in which they relate to economists’ concerns. In the philosophy of science, scientific realism is the mainstream position – or rather a heterogeneous collection of positions - that includes ideas about the nature of scientific theories and how they are related to the real world and about the goals and achievements of scientific inquiry. However, most of what philosophers have contributed around these ideas is not designed to deal with the peculiarities of economics, thus some important adjustments are needed to make scientific realism an interesting position for economists. (shrink)

Challenges the widely held view that good models must necessarily be simplifications and hence cannot be true. This is done by distinguishing between whole truth (complete description) and truth (essential description, attained by the method of isolation).

Economics is a culturally and politically powerful and contested discipline, and it has been that way as long as it has existed. For some commentators, economics is the "queen of the social sciences", while others view it as a "dismal science" (and both of these epithets allow for diverse interpretations; see Mäki 2002). Economics is also a discipline that deals with a dynamically complex subject matter and has a tradition of reducing this complexity by using systematic procedures (...) of simplification. Nowadays, these procedures involve for the most part building and using mathematical models (for an overview of the philosophical issues, see Morgan and Knuuttila 2011). In the dominant circles of the discipline, one is not regarded as a serious economist having a professional expert view on any given economic or social issue without having a model about it. Much of the power of the discipline and its characteristic contestations therefore involve models and modelling: the successes and failures of the dismal queen are those of modeling. The issues involved in conomic modeling have been made particularly acute once again by the financial crisis of 2008-2009 and its aftermath: the discipline of economics is among the candidates for the major blame for failure. I will first outline some thoughts about the characteristics disciplinary conventions that guide and constrain modeling in economics. I will then summarize my account of the very ideas of models and modeling. Finally, within the framework of that account, I will highlight some major issues of contestation and sketch the respective notions of potential success and failure in economic modeling with illustrations. These notions are motivated by my subscription to a (flexible and discipline-sensitive) realist philosophy of science (e.g. Mäki 2005). (shrink)

This paper examines whether structural realism entails an anti-realist thesis about natural kinds. Structural Realism is the view that the scientific realist can only support a realist claim about the structure of reality rather than its objects. Ladyman (1998) (2002) & French & Ladyman (2003) motivate the claim that ontic structural realism eliminates ‘objects’ as a distinct ontological category, thereby eliminating any possibility of a metaphysical account of individual objects. This is empirically motivated by fundamental (...) physics. Those inclined towards realism about the rest of the sciences (chemistry, biology, the medical sciences, economics and so on) might think the appeal of structural realism as a general metaphysics for all of the sciences limited. Nevertheless, recent literature argues that mature special sciences e.g. economics, can be equally described by mathematical/syntactic models making the appeal of structural realism a more general one for the metaphysics of all of the sciences. {Ross (2006)}. Given a commitment to ontic structural realism, if natural kinds are kinds of “object”, then anti-realism about natural kinds should follow. However, I examine two realist theses about natural kinds and argue that a commitment to structural realism is not straightforwardly inconsistent with either. (shrink)

No realist project in and about economics is close to completion. There are many open issues that remain to be addressed and resolved. Simon Deichsel (2011) has written a healthy challenge that should offer some useful inspiration to anyone interested in assessing and perhaps contributing to the realist projects. He argues against realism and in support of some sort of anti-realism. My response first deals with some conceptual issues regarding the very ideas of realism and (...) anti-realism. I will then discuss the role of pragmatics in relation to truth. Finally, I will address the issue of justifying realism — Deichsel’s title, after all, suggests his challenge is directed against what he calls the pragmatic justification of realism. My remarks are both brief and selective. (shrink)

Mark Blaug’s normative methodology of economics is an attempt to articulate certain intuitions about how economic science could be improved by making it more “realistic”. I discuss two such articulations, one in terms of falsificationist principles, the other in terms of an alleged trade-off between relevance and mathematical rigour. My conclusion is that Blaug’s methodology is itself unrealistic, both descriptively and normatively. His (well intended) methodological prescriptions for the improvement of economics are not based on a systematic, (...) consistent, descriptively adequate, and normatively viable account. I suggest that Blaug’s intuitions can be developed into a more realistic account by incorporating the analysis of two further topics: economic modelling and the institutions of academic research. (shrink)

The goal of “Inclusive Economics” is to tie together various authoritative strands of contemporary economic theory into an easily comprehensible whole that illuminates the need for a broader approach to contemporary economic policymaking undistorted by obsolete 18th century rationalist assumptions about utility, ethics, worthiness and traditional culture. This is accomplished by elaborating the rationalist competitive ideal along the optimizing lines pioneered by Paul Samuelson (neoclassical economics); plumbing modifications necessitated by Herbert Simon's realist concepts of “bounded rationality” and (...) “satisficing”; refined further by applying a pragmatist outlook to probe the consequences of relaxing Enlightenment teleological, ethical, spiritual and cultural taboos. The exercise will explain why competitive market economies guided by rational utility-seeking invariably are less productive, efficient, just and beneficent than most theorists concede, and will illuminate the full range of interventions needed to achieve better outcomes. We call this program in its entirety “Inclusive Economics”, including the integration of micro and macroeconomics. (shrink)

In a series of carefully argued and stimulating papers on realism, Usakli Maki has pointed out that economic theories typically are unrealistic in two senses: by violating "the-whole-truth" and "nothing-but-the-truth" (Maki 1989, 1992b, 1994b). He suggests that realism in economics can still be rescued by regarding theories as partially true descriptions of essences and as lawlike statements about tendencies. In this chapter, I defend realism by an alternative strategy: idealizational (or "isolational") statements are counterfactual conditional (...) (Niiniluoto 1986), and the concepts of truth and truthlikeness can be applied to them (Niiniluoto 1987). Further, false but sufficiently truthlike theories may be taken to refer to real entities in the world (Niiniluoto 1997, 1999). (shrink)

There is a salient contrast in how theoretical representations are regarded. Some are regarded as revealing the nature of what they represent, as in familiar cases of theoretical identification in physical chemistry where water is represented as hydrogen hydroxide and gold is represented as the element with atomic number 79. Other theoretical representations are regarded as serving other explanatory aims without being taken individually to reveal the nature of what they represent, as in the representation of gold as a standard (...) for pre-20th century monetary systems in economics or the representation of the meaning of an English sentence as a function from possible worlds to truth values in truth-conditional semantics. Call the first attitude towards a theoretical representation *realist* and the second attitude *instrumentalist*. Philosophical explanation purports to reveal the nature of whatever falls within its purview, so it would appear that a realist attitude towards its representations is a natural default. I offer reasons for skepticism about such default realism that emerge from attending to several case studies of philosophical explanation and drawing a general metaphilosophical moral from the foregoing discussion. (shrink)

This paper is part of the general debate about the need to rethink economics as a human discipline using a heuristic to describe its object, about the need to explicitly reject the positivistic approach in neoclassical economics, and about the urgency to adopt a different methodology, grounded on a realistic set of initial assumptions able to cope with the complexity of the decision making process. The aim of this paper is to show the use of (...) Occam's razor in the economic debate around realism in economic modelling. Occam's razor can be intended as a principle of logic that emphasises simplicity, or as a heuristic tool that emphasises parsimony. Neoclassical economists, such as Samuelson, have explicitly used Occam's razor as a logical principle to highlight the strict logic and simplicity of neoclassical economics; neoclassical models, however, are based on unrealistic assumptions. Some approaches of heterodox economics, au contraire, have used Occam's razor as a powerful heuristic tool to emphasise parsimony, building up models grounded on realistic initial assumptions and capable of embedding complexity into the general explanation of economic behaviour, as in Simon's bounded rationality (1955; 1957) and Hayek's notion of human rationality (1948; 1952; 1974) and cultural and social evolution (1967; 1978). (shrink)

This book is about forming effective critiques of neoclassical economics. Its focus is on constructive criticism of the foundations neoclassical theory, beginning with what Alfred Marshall called the `Principles of Economics'. It concludes that there is still much that can be done to make neoclassical economics more realistic.

The critical realist conception of open and closed systems is not about systems: it is about regularities in the flux of events and states of affairs. It has recently been criticised on the grounds that critical realists should take on board ideas about the general nature of systems; recognise that genuinely open social systems would be impossible; avoid polarities or dualisms where either there are event regularities and open systems, or there are no event regularities and closed (...) systems and accept partial regularities and partially open systems; and understand that orthodox economics is not based upon event regularities, laws or Humean empiricism. The objective of this paper is to ‘take stock’ of these recent criticisms. (shrink)

Economists and philosophers disagree about the concept of choice used in economics. Some behavioural economists argue that economic models of choice will improve as they become more and more psychologically realistic. Don Ross argues that this argument fails because its hidden assumption – that the economic concept of choice is the same as the psychological counterpart – is false. Ross conjectures that the economic concept of choice concerns a population-scale pattern of behavioural changes in response to incentives. We (...) conduct a survey experiment to test two predictions that Ross’s conjecture generates. The statistical analysis of our data confirms our predictions, although with some qualifications. In interpreting our results, we distinguish two versions of commonsensible realism, strong and weak, and propose the weak one as a plausible explanation of our results. Weak commonsensible realism also produces further testable hypotheses. Some methodological implications of our study are discussed. (shrink)

A centipede can walk until it thinks about howit does so. Thereafter it stumbles, over thesheer impossibility of the information andcoordination required. Life in the economy islittle different. Those engaged in productionand exchange discover, pragmatically, ways tomake them work. Those observing the processsee, realistically, the immense improbabilitythat it should do so. That most economies workin practice, but must pass such toughteleological tests to succeed in theory,highlights a difference between players' andspectators' outlook which may help to explainwhy the game has (...) repeatedly been thrown wideopen just when conclusive results seemed withinreach.Section 1 of this paper identifies the fourforms of realism which economists have tendedto adopt. Section 2 considers the pragmatism ofeconomic agents, when observed in action bypsychologists and management scholars notoverly steeped in economic theory. Theconcluding section reviews the ways in whicheconomists have tried to blur the distinction,by reclassifying agents as realistic or theirown views as pragmatic, and suggests that amore pragmatic economics might bridge thedivide. (shrink)

The paper aims to assess whether the ideas developed by Don Ross in his recent book Economic theory and cognitive science: microexplanation, which relates neoclassical economics to recent developments in cognitive science, might revolutionize the methodology of economics. Since Ross challenges a conception of economics associated with what is pejoratively called 'Folk psychology', the paper discusses ideas of the philosopher Daniel Dennett on which this challenge is largely based. This discussion could not avoid bearing on questions such (...) as the nature of consciousness, the interpretation of ontological realism, the relations between agency and selfhood, and the nature and scope of economics. The paper attempts to rehabilitate the two pieces of the traditional conception of economics that were most radically contested by Ross, namely methodological individualism and the foundational role of rationality in economics. A relatively nuanced judgment on Ross's bold enterprise is proposed in conclusion. (shrink)

Is realism in political theory compatible with utopianism? This article shows that it is, by reconstructing a highly restrictive realist approach to political theory for guiding legislation and public policy, drawn from the work of Adam Smith, and showing how it can accommodate Piketty’s utopian proposal for a global tax on capital. This shows not only that realism and utopianism are compatible; but how realist and utopian political theory can be carried out in concrete cases. This moves debates (...) to more interesting questions of which forms of utopianism are permissible within which forms of realism; contributes to moving the contemporary realism debates from a Methodenstreit to questions of how it can and ought to be done; and contributes to an important contemporary debate about the permissibility of utopian proposals for political and economic reform in general and Piketty’s proposed global tax on capital in particular. (shrink)

This article takes up the important recent argument of Mearsheimer and Rosato that states are rational in their foreign policy behavior and that their rationality can be defined in terms of the quality of their decision-making process. In particular, they define a state decision as rational if the decision makers engage in a deliberative process with a final choice based on a credible theory. First, I take up other notions of rationality familiar from the statistical and economic literature, arguing that (...) these other definitions are more useful for realist theory. Then, by contrast with Mearsheimer and Rosato, I argue that what is fundamental about realism in international relations theory is a focus on the subjectively rational pursuit of state security, regardless of the process used to attain it. This approach incorporates most realist theorizing while allowing for the great diversity of state behavior predicted by various realist doctrines and observed in reality. Within realism, I maintain that the distinction between revisionist and status quo states cannot be elided as neorealism attempts to do. Finally, I argue that domestic politics, too, is best understand in realist terms, even in democratic states. (shrink)

In order to be able to raise the question of the “world” today in an effective way, we have to reactivate the Goethean categories of Weltliteratur and Weltschmerz for a critique of our own historical moment. We need to understand the phenomenon of Weltschmerz as a symptom of the impossibility of Weltliteratur. Going beyond the context of the original formulation of these categories, we could argue that something akin to the historical phenomenon of Weltschmerz emerges every time the ideological constitution (...) of the world threatens to fail. Today, we live in an age of a generalised state of cultural disorientation that has produced its own Weltliteratur, which includes a wide range of discourses about the “world” – from officially endorsed theories of economic globalisation, to scientific treatises on the Anthropocene, environmental protest movements, philosophical pamphlets, all the way to world-historical conspiracy theories. Yet, an anxiety concerning the impossibility of world-formation in general is also recorded in these documents. In order to be able to capture our contemporary Weltschmerz, the article turns to the young Walter Benjamin’s suggestion that the task of this age is to produce an “objective” Weltschmerz. However, the most effective tools to conceptualise this objective Weltschmerz come from the traditions of philosophical acosmism. It is a notable philosophical development of our times that some elements of the acosmic tradition have recently resurfaced in speculative realism. Thus, speculative realism could be described as a possible site of our contemporary Weltschmerz: its acosmic metaphysics is repeatedly tamed by a mournful longing for the world. (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 reassessment of the long debate about Friedman's thesis on the pointlessness of testing assumptions in economics shows that Friedman's three famous examples, on which a large part of the credit given to this thesis is based, far from substantiating it, can be used to establish radically opposite conclusions. Furthermore, it is shown that this so-called “instrumentalist” thesis, when applied by Friedman to economics, is of a quite different nature and raises much more serious problems than the (...) standard instrumentalist thesis devised by some methodologists of physics. To disentangle these ambiguities concerning realism and instrumentalism applied to physics or to economics, this paper refers to Van Fraassen's “constructive empiricism”, which is helpful in reformulating, in a more satisfactory way, the essentials of Friedman's considerations about empiricism and anti-realism. (shrink)

Recent pleas for more heterodoxy in explaining economic action have been defending a pluralism for economics. In this article, I analyse these defences by scrutinizing the pluralistic qualities in the work of one of the major voices of heterodoxy, Tony Lawson. This scrutiny will focus on Lawson's alternatives concerning ontology and explanation to mainstream economics. Subsequently, I will raise some doubts about Lawson's pluralism, and identify questions that will have to be addressed by heterodox economists in order (...) to maintain the claim of pluralism. (shrink)

This paper discusses the practice of cost-benefit analyses of transportation infrastructure investment projects from the meta-theoretical perspective of critical realism. Such analyses are based on a number of untenable ontological assumptions about social value, human nature and the natural environment. In addition, main input data are based on transport modelling analyses based on a misleading `local ontology' among the model makers. The ontological misconceptions translate into erroneous epistemological assumptions about the possibility of precise predictions and the validity (...) of willingness-to-pay investigations. Accepting the ontological and epistemological assumptions of cost-benefit analysis involves an implicit acceptance of the ethical and political values favoured by these assumptions. Cost-benefit analyses of transportation investment projects tend to neglect long-term environmental consequences and needs among population groups with a low ability to pay. Instead of cost-benefit analyses, impact analyses evaluating the likely effects of project alternatives against a wide range of societal goals is recommended, with quantification and economic valorisation only for impact categories where this can be done in an ontologically and epistemologically defensible way. (shrink)

Recent proposals for human-centered AI (HCAI) help avoid the challenging task of specifying an objective for AI systems, since HCAI is designed to learn the objectives of the humans it is trying to assist. We think the move to HCAI is an important innovation but are concerned with how an instrumental, economic model of human rational agency has dominated research into HCAI. This paper brings the philosophical debate about human rational agency into the HCAI context, showing how more substantive (...) ways to understand human objectives may improve HCAI. We contrast the economic approach with two more substantive modern alternatives: the realist and constructivist approaches to human rational agency. The realist approach holds that rational agents pursue what is good, while the constructivist approach holds that rational agents make autonomous choices. We illustrate each by considering its implications for fine-tuning large language models for chatbots such as ChatGPT. (shrink)

In Europe, welfare state provision has been subjected to 'market forces'. Over the last two decades, the framework of economic competitiveness has become the defining aim of education, to be achieved by new managerialist techniques and mechanisms. This book thoughtfully and persuasively argues against this new vision of education. This in-depth major study will be of great interest to researchers in the sociology of education, education policy, social theory, organization and management studies, and also to professionals concerned about the (...) deleterious impact of current education policy on children's learning and welfare. (shrink)

What is philosophically interesting about how soil is managed and categorized? This paper begins by investigating how different soil ontologies develop and change as they are used within different social communities. Analyzing empirical evidence from soil science, ethnopedology, sociology, and agricultural extension reveals that efforts to categorize soil are not limited to current scientific soil classifications but also include those based in social ontologies of soil. I examine three of these soil social ontologies: (1) local and Indigenous classifications farmers (...) and farming communities use to conceptualize their relationships with soil in their fields; (2) categorizations ascribed to farmers in virtue of their agricultural goals and economic priorities relied upon in sociological research; and (3) federal agency classifications of land capability employed by agricultural scientists. Studying the interplay of these social ontologies shows how assessing soil properties and capabilities are the result of previous agricultural strategies informed by culture, agroecological history, weather, soil biodiversity, crop rotation, and the goals held by decision-makers. The paper then identifies the soil relationships and interactions that constitute ontology-making activities. Building on recent work, I outline a novel interactive account of perspectival realism grounded in agricultural extension research and ethnopedological data that captures the haptic nature of farmers’ soil strategies. This interactive account explains how ontologies are chosen, why they are chosen, and how they interact and inform soil management decision-making. The paper concludes by examining the values laden in these ontologies and those which are causally implicated in the choice of soil management strategies. (shrink)

The article aims to demonstrate that the nudge theory suffers from three main weaknesses stemming from its theoretical dependence on behavioural economics. The first two weaknesses endanger the paternalistic goal, whereas the third does not justify the libertarian attribute. The first weakness lies in the incomplete realistic characterisation of behavioural economics theory that is the central theoretical pillar of Nudge theory. The second weakness is even more relevant. The normative model of behavioural economics is neoclassical rationality. It (...) can be applied to choices in conditions of risk, when it is possible to forecast the probability of the outcomes of one’s choices. On the contrary the real life problems are inside a complex and uncertain environment. In an uncertain environment the neoclassical algorithms are no longer valid, in that they postulate the knowledge of the probability of the outputs. Thus errors and bias, as observed in behavioural economics, are not such in many instances, but they are instead adaptive and therefore rational responses to the context of decision-making. Therefore nudge theory that pursues the normative paternalistic objective of neutralising the bias and judgement errors discovered by behavioural economics and putting paternalistically the citizen on the right track, is in fact proceeding in the wrong direction. The last weakness concerns an assumption of Nudge theory about the duality of mind. System 1 represents the intuitive mind, while System 2 corresponds to the analytical one. System 1 tends to make decisions quickly and unconsciously, while System 2 follows a slow and conscious process. Biases and judgement errors are mainly generated by System 1. However, System 2 may later intervene to correct them. From this premise, the Nudge theory affirms its libertarian character. In this paper I will argue that the dualism of the mind would not entail the reversibility of some nudges, particularly of default states. In this way the fundamental pillar is weakened to justify the libertarian character of the nudge theory. (shrink)

The imminent deployment of autonomous vehicles requires algorithms capable of making moral decisions in relevant traffic situations. Some scholars in the ethics of autonomous vehicles hope to align such intelligent systems with human moral judgment. For this purpose, studies like the Moral Machine Experiment have collected data about human decision-making in trolley-like traffic dilemmas. This paper first argues that the trolley dilemma is an inadequate experimental paradigm for investigating traffic moral judgments because it does not include agents’ character-based considerations (...) and is incapable of facilitating the investigation of low-stakes mundane traffic scenarios. In light of the limitations of the trolley paradigm, this paper presents an alternative experimental framework that addresses these issues. The proposed solution combines the creation of mundane traffic moral scenarios using virtual reality and the Agent-Deed-Consequences (ADC) model of moral judgment as a moral-psychological framework. This paradigm shift potentially increases the ecological validity of future studies by providing more realism and incorporating character considerations into traffic actions. (shrink)

ABSTRACT This article proposes a theoretical framework for thinking systematically about Muslim males’ involvement in criminality, derived from the philosophy of critical realism. This theoretical framework is deployed to explore primary data from life story interviews with 17 Muslim male offenders in a way that explains the role of structural and cultural factors, as well as individual agency, in participants’ involvement in crime at a range of ‘emergent’ ontological levels. As well as factors in common with offending by (...) young males generally, such as absent role models at home, experiences of socio-economic marginalization, the presence of hypermasculine hegemonic masculinities on the street and an inadequate experience of school, ‘unserious’ religion and ‘religious’ justifications for involvement in crime are factored into the ontology of the male Muslim offender as rendering some young Muslim males particularly vulnerable to offending. (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)

In those parts of his paper that have the clearest bearing upon mycontributions, Simon Deichsel 1) elaborates various conceptions ofrealism; 2) declares himself an anti-realist of a specific sort; 3) seeks toidentify and criticise pragmatic aspects of my justification for adoptinga realist orientation; and 4) argues that his anti-realist perspective ispreferable to realism.An immediate problem with Deichsel’s project, if intended as acritique of my own realist orientation, is that the sort of realism againstwhich his anti-realism is oppositionally (...) defined is not the versionof realism I maintain. In fact the only one of Deichsel’s formulationsthat I unambiguously accept as a version of realism is ontological realism. Realism as I understand the term is about existence.It is ontological in nature. At its most basic, it posits the existence of an‘external’ reality.1So understood, realism is not a theory of knowledge, or of language,or even of truth. Indeed so formulated it says nothing about knowledgeor truth.2In particular it does not commit anyone to the correspondencetheory of truth, or indeed to any other theory or conception of truth.In fact it is not a semantic theory at all. (shrink)

This article argues that, as applied to education, the Capabilities Approach pioneered by Amartya Sen and Martha Nussbaum shares a range of philosophical commitments with the work of social realist scholars on the concept of ‘powerful knowledge’. I first trace the history of the concept of powerful knowledge and present critiques put forward by social justice scholars. I then outline the Capabilities Approach, arguing it provides a response to some of these concerns. From here I develop the connection between the (...) two educational paradigms focusing on four areas of affinity. The first is the conceptual similarity between the ‘power’ of powerful knowledge and Nussbaum’s account of a capability. The second is their concern with the reduction of education to technical-instrumentalism, human capital, and other economically driven imperatives. The third is a shared focus on the link between knowledge, human agency, and freedom. The fourth, is a mutual rejection of relativism and embrace of a nuanced universalism. Ultimately, by drawing together these two conceptually rich approaches to the aims and purposes of education, I hope to open a space for theorizing about both capabilities and powerful knowledge that can resolve some of the problems in both. For powerful knowledge, the Capabilities Approach allows a more concrete explication of why access to disciplinary bodies of knowledge is of value to both individuals and society. On the side of the Capabilities Approach, engaging with the concept of powerful knowledge can help give a rationale for how educational knowledge fosters certain centrally important capabilities. (shrink)

We examine two very different approaches to formalising real computation, commonly referred to as “Computable Analysis” and “the BSS approach”. The main models of computation underlying these approaches—bit computation and BSS, respectively—have also been put forward as appropriate foundations for scientific computing. The two frameworks offer useful computability and complexity results about problems whose underlying domain is an uncountable space. Since typically the problems dealt with in physical sciences, applied mathematics, economics, and engineering are also defined in uncountable (...) domains, it is fitting that we choose between these two approaches a foundational framework for scientific computing. However, the models are incompatible as to their results. What is more, the BSS model is highly idealised and unrealistic; yet, it is the de facto implicit model in various areas of computational mathematics, with virtually no problems for the everyday practice. This paper serves three purposes. First, we attempt to delineate what the goal of developing foundations for scientific computing exactly is. We distinguish between two very different interpretations of that goal, and on the separate basis of each one, we put forward answers about the appropriateness of each framework. Second, we provide an account of the fruitfulness and wide use of BSS, despite its unrealistic assumptions. Third, according to one of our proposed interpretations of the scope of foundations, the target domain of both models is a certain mathematical structure. In a clear sense, then, we are using idealised models to study a purely mathematical structure. The third purpose is to point out and explain this intriguing phenomenon and attempt to make connections with the typical case of idealised models of empirical domains. (shrink)

This article critically reflects on the research portfolio by the ecological economist Clive Spash who has helped pinpoint specific and systemic blindspots in a political-economic system that prioritises myopic development trajectories divorced from ecological reality. Drawing on his published work and collaborations it seeks to make sense of the slow, or absent, progress in averting global warming and ecological destruction. Three strands of key concern and influence are identified and discussed with reference to their orientation and explicit expression regarding Ontology, (...) Epistemology and Axiology. Some complementary points about indeterminacy and holism are presented to further strengthen the arguments for a transition towards a social-ecological economic system that puts values and principles back into focus. While Clive Spash's work has made a strong case within the economic community and appealing to ecology professionals, the value-myopia or value-vacuum has to be tackled across all disciplines, politics and society for a meaningful and urgently required transformation in decision making. Hence, the article finishes with some suggestions for the (higher) education system, and highlights the importance of simplicity and sufficiency, as well as strong sustainability-driven citizen and community action as necessary catalysts of change in this social-ecological transformation. (shrink)

his chapter discusses some of the basic tenets of a critical realist social ontology. It defines capitalism, which Roy Jacques conspicuously fails to do. Jacques argues that the very point of explanatory critique is to facilitate useful action. For Geoffrey Hodgson, the epsilon scenario could be described as beyond capitalism. A form of employment contract remains, but it is a mere shell of its former capitalist self. In the work process, the degree of control by the employer over the employee (...) is minimal. Hodgson argues that 'impurity' necessarily characterizes all socioeconomic systems. However, any assessment of feasibility depends crucially upon an adequate theoretical analysis of concrete socio-economic systems. The chapter explains the nature of disaggregative analysis, which is predicated upon a realist ontology. Transcendentally the social world is composed of internal and external social relations; disaggregative analysis enables thought experiments about alternative social arrangements. The chapter addresses the nature of division of labour, knowledge and Hayek. (shrink)

This article reconstructs and reflects on the 1989 debate between Jerry Cohen and myself on market socialism in the light of Cohen's ongoing defence of communitarian socialism. It presents Cohen's view of market socialism as ethically deficient but a modest improvement on capitalism, and outlines some market socialist proposals from the 1980s. Our debate centred on the issues of distributive justice and community. I had argued that a market economy might be justified by appeal to desert based on productive contribution, (...) but Cohen saw effort as the only relevant desert base, and claimed that only non-comparative judgements of economic desert were possible. Market-derived inequalities, therefore, could not be deserved. He also condemned markets for relying on the motives of greed and fear, and therefore as destructive of community. In reply, I asserted that markets also liberated people from fixed social roles, and that market competition could be viewed differently, as providing the most effective way for people to contribute to each other's welfare. In retrospect, this debate can be seen to raise questions about the nature of justice and the purpose of political philosophy that have come to the fore in recent exchanges between ‘realists’ and ‘idealists’. (shrink)

Despite their popularity, dual process accounts of human reasoning and decision-making have come under intense scrutiny in recent years. Cognitive scientists and philosophers alike have come to question the theoretical foundations of the ‘standard view’ of dual process theory and have challenged the validity and relevance of evidence in support of it. Moreover, attempts to modify and refine dual process theory in light of these challenges have generated additional concerns about its applicability and refutability as a scientific theory. With (...) these concerns in mind, this paper provides a critical review of dual process theory in economics, focusing on its role as a psychological framework for decision modeling in behavioral economics and neuroeconomics. I argue that the influx of criticisms against dual process theory challenge the descriptive accuracy of dualistic decision models in economics. In fact, the case can be made that the popularity of dual process theory in economics has less to do with the empirical success of dualistic decision models, and more to do with the convenience that the dual process narrative provides economists looking to explain-away decision anomalies. This leaves behavioral economists and neuroeconomists with something of a dilemma: either they stick to their purported ambitions to give a realistic description of human decision-making and give up the narrative, or they revise and restate their scientific ambitions. (shrink)