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Dilemmas of an Economic Theorist
Author(s) -
Rubinstein Ariel
Publication year - 2006
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.1111/j.1468-0262.2006.00689.x
Subject(s) - dilemma , absurdism , relevance (law) , set (abstract data type) , advice (programming) , epistemology , positive economics , economics , economic model , law and economics , computer science , philosophy , political science , law , microeconomics , programming language
What on earth are economic theorists like me trying to accomplish? This paper discusses four dilemmas encountered by an economic theorist: The dilemma of absurd conclusions : Should we abandon a model if it produces absurd conclusions or should we regard a model as a very limited set of assumptions that will inevitably fail in some contexts? The dilemma of responding to evidence : Should our models be judged according to experimental results? The dilemma of modelless regularities : Should models provide the hypothesis for testing or are they simply exercises in logic that have no use in identifying regularities? The dilemma of relevance : Do we have the right to offer advice or to make statements that are intended to influence the real world?