Theories and Models in Economics
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Theories and Models in Economics

An Empirical Approach to Methodology

9781035332946 Edward Elgar Publishing
Hans Lind, Professor of Real Estate Economics, formerly at the Department of Real Estate and Construction Management, KTH Royal institute of Technology, Stockholm, Sweden
Publication Date: 2024 ISBN: 978 1 03533 294 6 Extent: 134 pp
This innovative book uses in-depth empirical studies of scientific articles and takes inspiration from Nobel laureates to explore how theories and models are used in economics. Hans Lind ultimately illustrates that economics studies a ‘chaos-theoretic’ system where a theory is a framework that helps formulate hypotheses rather than a set of statements about how an economy works.

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Contents
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This innovative book uses in-depth empirical studies of scientific articles and takes inspiration from Nobel laureates to explore how theories and models are used in economics. Hans Lind ultimately illustrates that economics studies a ‘chaos-theoretic’ system where a theory is a framework that helps formulate hypotheses rather than a set of statements about how an economy works.

Based on these empirical studies Lind analyses different kinds of path-breaking contributions in economics and why these developments do not fit Kuhn’s theory of progress in science. Through the close analysis of scientific articles, chapters also discuss why analysis of a simple model can help us understand how the real economy works and how a new idea becomes accepted through everyday observations, the building of models and empirical studies. He argues that it is crucial to use a range of methods, including case studies and mathematical models, to help identify causes and patterns in a science that studies a chaos-theoretic system.

Written in an accessible style, Theories and Models in Economics will prove a vital resource for scholars looking for a greater understanding of both the methodology and the development of economics. It will appeal to practitioners and social scientists more broadly who are interested in learning more about how economists conduct their research and how this differs from other disciplines.
Contents
Contents:
1 Introduction and background to the empirical approach to
methodology
2 What characterizes the object that Economics studies?
3 What economists do: (1) path-breaking contributions
4 What economists do: (2) contributions in “normal science”
5 How economics develops over time: Kuhn versus Laudan
6 On theory in economics
7 On models in economics
8 How to make an idea credible: a case study of Krugman’s
New Trade Theory
9 Summary and implications
Appendix: Information about the empirical studies
References
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