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From Unrealistic Assumptions to Economic Explanations. Robustness Analysis from a Deductivist Point of View

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  • Max Albert

    (University of Gießen)

Abstract

Sugden (2000) offers an answer to the question of how unrealistic models can be used to explain real-world phenomena: by considering a set of unrealistic models, one may conclude that a result common to these models also holds for a realistic model that, however, is too complex to be analyzed, or even just stated, explicitly. This is a kind of robustness argument. Sugden argues that the argument is inductive and that the methodological strategy is inconsistent with received methodological views. This paper argues that Sugden’s argument is in need of improvement, that the improved version is deductive, and that the methodological strategy, if applied with care, fits well into one of the received views dismissed by Sugden, namely, hypothetico-deductivism, or the the testing view of science.

Suggested Citation

  • Max Albert, 2013. "From Unrealistic Assumptions to Economic Explanations. Robustness Analysis from a Deductivist Point of View," MAGKS Papers on Economics 201352, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    • Handle: RePEc:mar:magkse:201352
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    File URL: https://www.uni-marburg.de/en/fb02/research-groups/economics/macroeconomics/research/magks-joint-discussion-papers-in-economics/papers/2013-papers/52-2013_albert.pdf
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    References listed on IDEAS

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    4. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521415019, December.
    5. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    6. Hausman,Daniel M., 1992. "The Inexact and Separate Science of Economics," Cambridge Books, Cambridge University Press, number 9780521425230, December.
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    Cited by:

    1. Max Albert, 2022. "How to Escape from Model Platonism in Economics: Critical Assumptions, Robust Conclusions, and Approximate Explanations," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 39(1), pages 37-68, October.

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