Tag Archives: Nancy Cartwright

Who’s Afraid Of Economic Models?

8 Nov

A guest post by Nathan Coombs, a doctoral student in Politics and International Relations at Royal Holloway. Nathan’s work focuses on the relationship between metaphysics and political ideology. Nathan is the author of ‘The Political Theology of Red Toryism’, published in the Journal of Political Ideologies, 16(1), February 2011, as well as a number of other papers. He is an also an Editor of the Journal of Critical Globalisation Studies, an open-access peer-reviewed academic journal which should be a stimulus to us all. Images by Pablo.

If there is a point of unity for strong (non-Keynesian) critics of neoclassical economics it is their shared rejection of modelling. This is not to say such authors shun all use of abstraction, idealisation, and quantisation in favour of just qualitative, empirical efforts at explanation. Rather, modelling is held out as a practice whereby mathematical attempts to grasp economic laws become unhinged from reality; where abstraction begets abstraction for its own sake. For example, in his famous methodological treatise, Economics and Reality, Tony Lawson firmly demarcates the form of abstraction he recommends for economics from the practice of modelling – placing stress on the point where: “it seems vital that I indicate why the procedure to which I refer does not at all reduce to the activities of the ‘modelling’ project in question.” (Lawson 1997, 227)

For different reasons converging to the same end, advocates of the most active strand of Marxian economics, working from the Temporal Single System Interpretation (or TSSI), are equally averse to modelling, associating it with simultaneous, equilibrium interpretations of Marx’s labour theory of value, diverging from the correct representation of the theory. Inside the pages of Andrew Kliman’s recent book, Reclaiming Marx’s “Capital”, the word ‘model’ only occurs negatively in association with what he argues are flawed abstractions of the theory from Okishio’s theorem through much political economy in the 20th century (Kliman 2007, 44, 48, 66, 101, 176). The idea that Marx’s Capital might itself be considered a theoretical model of the economy is out of the question.

What explains this resistance to modelling for critics of the status quo in economics?

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