The dangers of using ontologically ungrounded idealizations

Created
Mon, 17/07/2023 - 23:01
Updated
Mon, 17/07/2023 - 23:01
Using ‘simplifying’ tractability or ‘heuristic’ assumptions — rational expectations, common knowledge, representative agents, linearity, additivity, ergodicity, etc — because otherwise they cannot ‘manipulate’ their models or come up with ‘rigorous ‘ and ‘precise’ predictions and explanations, does not exempt economists from having to justify their modelling choices. Being able to ‘manipulate’ things in models cannot […]

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