Models and Credibility
Philosophy of the Social Sciences
Published online on May 15, 2014
Abstract
This article argues that the credibility of both theoretical and empirical models in economics is best understood through their connection with the empirical aspects of the real world. The discussion herein demonstrates that the similarity between the model and the real world is not enough to justify a theoretical model’s explanatory power. The best way to secure the model’s credibility is to prove the existence of representation theorems.