The Rhetoric of Policy Relevance in International Economics

There is a widespread belief that economic policy prescriptions, especially in international economics, are of grave importance for individual and national well being. Milberg contends, however, that there is little thought given to how such prescriptions follow from the theoretical models used to generate these conclusions. In fact, different models appear to be used: A formal theoretical model and a less formal one to reach policy conclusions. In this working paper, Milberg seeks to find out why this dichotomy occurred by analyzing the rhetoric contained in casual models, that is, those used to arrive at policy conclusions. He asserts that this rhetoric was not an accidental methodological discrepancy, but a necessary strategy for reaching policy conclusions.