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The Methodology of Positive Economics
I've never read Milton as a naive positivist, although some of the quotations from his article sound that way. Milton was more of a methodological pluralist and a Marshallian. Do what works. Bring a variety of kinds of evidence to bear on a problem (it is sad how neglected this principle is in modern economics), be pragmatic, and don't reject a model just because it doesn't meet one of your prejudices. I think that is what he meant by not judging a model by its assumptions. Falsifiability is a chimera, but did Friedman really seek or advocate that as a standard? Most of all he wanted propositions with empirical content. He understood that no single fact can refute a theory, and that many tests are of frameworks, not single propositions. Data should and indeed must be viewed through the lens of theory, and our goal should be to solve problems.
Was Milton closer to Quine than to Carnap? Here is his classic essay.
Posted by Tyler Cowen on November 17, 2006 at 06:50 AM in Economics, Philosophy | Permalink
Comments
Three questions come to mind.
1.) How incorrect, distorted, and false does a model assumptions have to be before we start to question the model?
2.) Exactly how many facts must contradict the model's predicted results before we discard it, question it, or narrow it?
3.) To the extent that we ignore what goes into a theory (assumptions) and what comes out of it (facts that contradict the theory) doesn't this make economic theory more like religion and less like science?
Posted by: Ragerz at Nov 17, 2006 1:58:55 PM
The Journal of Economic Methodology, in the December 2003 Issue has a number of articles expressly about this article. A blog conversation is fine, but for anyone who wants to really dig into this one in detail, I recommend some extensive study.
Posted by: jim at Nov 17, 2006 3:03:26 PM
send me your e-mail addresses, please!...
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