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Economic Methodology Notes
Economic Methodology (Universiteit van Amsterdam)
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ECONOMIC METHODOLOGY
Notes from the lectures

Explanation and prediction follows the D-N
model.
Problems of econometrics: no laboratories, lots of
variables, complexity is unavoidable.
Lecture 1
The received view - “Purity and Clarity are aimed at,
dark distances and unfathomable depths declined.
There are no ‘depths’ in science. There is surface
everywhere” So, stick to the facts!
Tinbergen’s method and Keynes’ criticism –Keynes
believes that Tinbergen does not test but
measures. His measuring would only be
meaningful if all causalities were known.
Empirically verifiable (synthetic a posteriori):
ascertaining truth by observation.
Logically verifiable (analytic): ascertaining truth by
logical analysis.
Synthethic a priori swentences are not meaningful.
Haavelmo’s probability approach –“whether or not
we might hope to find elements of invariance in
economic life, upon which to establish permanent
laws”. This is in line with confirmationism.
Distinguishing context of discovery from context of
justification.
Operationalization & Deductive
Explanation emphasized.
Nomological
Confirmationism –probability instead of certainty.
Probabilistic explanation with a degree of
confirmation.
Lecture 2
Positivism in econometrics:
 Mathematics as analytical foundation, model
structure.
 Statistics as observational foundation, model
test. Operationalization and data choice
guarantee verifiability.
Measurement-without-theory debate:
Koopmans (Cowles Commission) caricatures NBER
–Theory is based on observation.
Koopmans believes that theory tells us what
variables and relations are probably important. So:
theory is input and output of observation.
Anti-realisticness: Truly important and significant
hypotheses will be found to have “assumptions”
that
are
wildly
inaccurate
descriptive
representations of reality, and, in general, the
more significant the theory, the more unrealistic
the assumptions (in this sense).
Model assumptions:
 A negligibility assumption means that a factor
that could be expected to affect the
phenomenon under investigation actually has
no detectable effect.
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

A domain assumption means that an expected
factor is absent, and so is used to specify the
domain of applicability of the theory
concerned.
A heuristic assumption is made if a factor is
considered to be negligible, in order to simplify
the ‘logical’ development of the theory.
Friedman simplifies for parts and tests by
predictions. Some positivistic aspects:



Friedman accepts the D-N model, but
distances himself from testing assumptions
and premisses (impossible because of the
problem of induction).
Relevance of observation is in testing
predictions and determining domains.
Instrumentalistic, but not in a Schlickian way.
Descriptivism - Scientists never “explain” any
behavior, by theory or by any other hook. Every
description that is superseded by a “deeper
explanation” turns out upon careful examination to
have been replaced by still another description,
albeit possibly a more useful description that
covers and illuminates a wider area.
No laws –by demanding that both P and Q are
both verifiable and actually verified, laws
become impossible.
Descriptivism is the ultimate consequence of
LP demarcation. No laws, D-N explanations or
predictions, but only descriptions.
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Lecture 3
Popper’s Falsificationism –scientific knowledge is
fallible, scientists should aim for refutations rather
than verifications.
Testing theories Popper-style:
1. Logical consistency (minimum requirement)
2. Falsifiability (demarcation criterion)
3. Empirical consequences (predictions)
4. Empirical content (more potential falsifiers if
theories say more precise things about more
phenomena)
Growth on Knowledge is not attained by building
certainties on certainties but by repairing mistakes.
Logical positivism –the more probable a theory is,
the more reason to accept it.
Popper –the more improbable a theory is, the more
reason to accept it.
Friedman –the more significant a theory is, the
more unrealistic the assumptions.
Social laws? Hard to find since there are no
experiments and many factors to handle
simultaneously. Reflexivity principle makes it so
that if laws are found, our behavior changes,
voiding the law.
Social and historical inescapability such as in
Hegel’s and Marx’s historicism does not exist.
Three ways to immunize stratagems a posteriori;
reclassifying, adjusting underlying theories, and
changing the domain. A general ceteris paribus
clause as an a priori immunizing stratagem will
render all statements irrefutable.
In relation to the Duhem-Quine thesis, if we do not
know what is at fault, we can actually benefit from
immunizing stratagems to improve the theory.
Lakatos believe immunizing stratagems are theory
improvements in a progressive research program..
Rationality – choosing the most progressive
research program, both theoretically and
empirically. Avoiding degenerating programs.
Lecture 5
Lecture 4
Theory ladennes:
With Popper, theory usually precedes observation.
It offers potential falsifiers and tells us what to look
for. Observations are carried out on the basis of
theory.
Duhem - Quine thesis suggests that when a theory
is falsified we do not know for sure what exactly is
falsified; the whole theory, the measurement, the
measuring instrument, the classification, the
domain?
Kuhn & Lakatos
Disciplinary matrix – symbolic generalization,
metaphysics, paradigms, values.
Concept of Gestalt, Gestalt
incommensurability is highlighted.
Switch
and
Sociology of Scientific Knowledge – truth is a social
construct. Adequate descriptions of behavior and
its causes lead to a better understanding of what
counts as truth.
Kuhn and SSK: Gestalt through training within a
scientific community.
The ‘naturalistic’ turn:
There is no growth of knowledge but breaks.
Revolution through a Gestalt Switch.
Lakatos brings together Kuhn and Popper’s ideas
to create what he calls a sophisticated
falsificationism. He believes that research
programs consist of a hard core and a protective
belt (negative & positive heuristic).
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Traditional philosophy of science focuses on the
rules of proper scientific method and such things as
logic, truth, role of assumptions, use of evidence,
etc. that influence acceptance/rejection of
theories. “What is true or false are theories of
science.”
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SSK focuses on the behavior of scientists in terms
of their motives and interests as members of
communities of scientists to understand why they
accept/reject theories. “What is true or false are
theories of scientists’ behavior.”
Economics of Science (ES): study of economic
factors that influence the conditions under which
science is practiced, but which do not influence the
content of science, called the old economics of
science.
epistemically efficient way possible. Knowledge is
promoted by cognitive diversity and through
competition. “An industrial organization of cognitive
labor.”
The Edinburgh Strong Program
Starting point is a naturalistic approach to scientific
knowledge; scientists are to be investigated just as
we would any natural phenomena. Four
methodological principles: causality, impartiality,
symmetry, and reflexivity.
Economics of Scientific Knowledge (ESK): the
application of economic models to the
determination of scientists’ beliefs, called the new
economics of science.
Robert Merton – focus is the social or cultural
preconditions for empirical science. Four defining
characteristic; universalism, organized skepticism,
disinterestedness, and communalism.
Lecture 6
Laboratory studies approach – daily practices of
scientists ‘micro-sociological’. An anthropological
approach.
Callon’s actor network theory.
Relativism, realism, and values:
Relativism: truth and knowledge are not objective
but relative to historical and social context – the
interest thesis. Reflexivity? Objective relative to
SSK?
Realism vs socially constructed knowledge.
Values: a descriptive naturalistic approach with
value-neutrality or one guided by scientists’ values
(methodological values & value-laden concepts).
Economics of Scientific Knowledge – a competing
perspective, science and scientists’ behavior as
understood by economics rather than sociology.
ES – Basic scientific research is a public good &
government should subsidize basic scientific
research.
ESK – David & Dasgupta model, a system of open
science and reputation maximizing scientists will
allow scientific research to be publicly available
rapidly. Openness is incentive-compatible with a
reward system based on self-interest (e.g., Nobel
Prize in Economics).
The lock-in problem leads to path dependency.
Scientific
community
dependent
on
breakthroughs.
Kitcher’s social epistemology – science is organized
socially so scientific standards are social ones. The
goal is to increase the ratio of reliable beliefs to
total beliefs in the population. This is possible by
arranging the social institutions in most
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A non-science based view of science. Economics as
not science, or social science, but humanities.
Classical rhetoric as a humanities rather than
scientific field. The traditional concern are methods
of argument and communication. The modern
focus are forms of discourse.
Connections to SSK: emphasis on the practices of
scientists and their tools.
Logos, Pathos, Ethos
Positivism according to McCloskey:






Prediction (and control) is the goal of science
Only the observable implications (or
predictions) of a theory are significant for its
truth.
Observability entails objective, reproducible
experiments.
If an experimental implication of a theory
proves false is the theory proved false.
Objectivity is to be treasured; subjective
‘observation’- introspection is not scientific
knowledge.
Kelvin’s Dictum: “When you cannot express it
in numbers, your knowledge is of a meagre and
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




unsatisfactory kind.’’
Introspection, metaphysical belief, aesthetic,
and the like may well figure in the discovery of
an hypothesis but cannot contribute to its
justification.
It is the business of methodology to demarcate
scientific reasoning from non-scientific
reasoning, and the positive from the
normative.
A scientific explanation of an event brings the
event under a covering law.
Scientists, for instance economic scientists,
have nothing to say as scientists about values,
whether of morality or art.
Hume’s Fork
McCloskey & the rhetoric approach:
Attention to how economists actually seek to
persuade one another – use of mathematics,
proofs, significance tests, etc. as means of giving
authority to conclusions. Critique of positivism.
Economics does not develop through use of simple
rules but through communication between
economists.
Analogy persuades by interpreting economic
statements in terms of another more intuitive
framework. (e.g. , interactive competition seen as
‘game theory’ (or markets as crossing lines).
Metaphor persuades by importing non-economic
concepts into economics (e.g., smith’s ‘invisible
hand’ and Becker’s ‘children as durable goods’).
Economists as story-tellers.

Methodology with a small “m”, not a large “M”.





McCloskey: knowledge is not a structure with
‘foundations’. Evidence is subject to interpretation
and theory-laden. Language meanings are plural
and not singular (e.g., competitive market means
different things in different settings - discourse).
Economics operates like a ‘conversation’; often at
long distance and through publications. The ‘rules’
are the rules of civil conversation.
Klamer and Colander – expand McCloskey’s
approach

Postmodernism influenced the rhetoric approach.
Critiques of economics’ main concepts:
-
The interview method as a case study approach.
Klamer’s with the New Classical Economists –
enlarging the conversation.
-
Klamer and Colander’s interviews with students;
economics education as a highly structured type of
communication. The role of textbooks:
standardized content, elimination of controversy,
exemplars, elimination of attention to the
historical development of ideas or the presentation
of history in the form of fables.
Postmodernism – a critique of humanism and
traditional views of science dating from the
Enlightenment.
Modernism:


There is a single scientific method.
Knowledge has foundations.
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Meaning can ultimately be determined with
certainty.
History possesses a pattern, such as progress
The self is a coherent entity.
Things and beings have essential natures
Master narratives are possible.
Causal determination has a privileged role in
explanation.
Things can be represented in language.
Equilibrium as capturing the essential nature of
an economic system vs multiple/unstable
equilibria.
Causal determination, change in economic
systems can be random and arbitrary.
Rationality, the single self is a fiction.
Rejects the goal of demarcating science from
pseudo-science, there are multiple kinds of
narratives about knowledge.
Pluralism
Epistemological pluralism: there are multiple kinds
and forms of legitimate knowledge.
Rejection of relativism; no standards for truth vs
multiple standards (e.g., chemistry vs physics)
Rejection of reductionism; there are microfoundations for macroeconomics and macrofoundations for microeconomics.
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Methodological pluralism; no meta-criteria for
knowledge. Methodological policy
recommendation, promote diversity in science.
Lecture 7
Standard view: economics is value-free.
Value judgements in economics in 4 ways:
 in methodological value judgements,
 in the value-ladenness of economic concepts
and explanations,
 in supporting particular ethical views,
 in representing the ethical values and moral
norms people observe.
Describing human behavior as a human, practically
impossible to be value-free.
Like ‘’rationality’’, concepts that we use convey a
hidden judgement.
Combining methodological judgements with valueladenness of concepts often leads to supporting
certain ethical values.
Methodological value judgements – 3 types:
 Choice of subject matter
 Methods of investigation
 Standards of validity
Evaluative judgements economists make with
respect to the methods they choose to employ –
not about moral right/wrong.
Hume’s guillotine, aka Is-Ought problem, fact value
distinction in language.
Moore’s naturalistic fallacy – saying that something
is broken is not asking to get it fixed.
Myrdal’s view is that economics is value-laden. ‘’Is’’
statements often conceal hidden ‘’ought’’
statements. Technical language vs ordinary
meanings of words matter. Concept of Gestalt
surfaces again.
Weakly value-laden vs strongly value-laden.
Rational choice makes a strong value judgement by
favoring only one idea of good over all others.
Logical positivism and ordinalist utility theory:
Cardinal utility (can be compared among people) vs
ordinal utility (cannot be compared with another
person’s ranking). Rejecting cardinal utility is a
Logical Positivist move. LPs can only comment on
ordinal utility.
Rational choice requires the Pareto principle. It
focuses on unequivocal preference satisfaction. No
cost-benefit analysis aimed at maximizing net
gains across winners and losers. In reality, policymakers not only use cost-benefit analysis but
employ other ethical principles, such as the rights
people have.
Historical roots of economics’ normative
commitments: Feudalism – interest and profits are
sins (usury) & capitalism would lead to chaos.
Early economists (mainly Smith) set out to prove
this sentiment false: ‘’By pursuing his own interest,
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the merchant frequently promotes that of the
society more effectually than when he really
intends to promote it.’’
Since then, economists have been obsessed with
proving the invisible hand principle.
Economics as a useful subject:
A thoroughly value-free science would tell us
nothing about our concerns, interests, and values.
There’s a difference between abusing science with
politics and ideology and using science according
to shared social values. The important thing is to
be clear about the value judgements employed in
any theory.
Neutral science:
Political
Decision:
choice of
ends
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Neutral
Science:
development
of means
Political
Decision:
choice of
means
Realistically this is not correct. Science and Society
are interactive rather than a strict and clean cut
process.
Naturalistic legitimation:
Science is seen as the ideal type of human activity;
its achievements ‘naturally’ legitimate it.
Sometimes science ‘de-legitimate’ itself and
sometimes this extends to the theories (nuclear
science, the 2008 economic crisis, etc.)
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Overall notes
Logical positivism – scientific knowledge has to be
traceable to:
 Observation (requires operationalization of
theoretical terms by correspondence rules) –
synthetic a posteriori statements.
 Formal logic (analytical statements)
Explanation and prediction through the DeductiveNomological model.
Positivism in econometrics:
 Mathematics as analytical foundation (model
structure)
 Statistics as observational foundation (model
test). Operationalization and data choice
guarantee verifiability.
 Explanation and prediction follows the D-N
model.
Keynes: incomplete models do not measure well.
Haavelmo: probabilities and the problem of passive
observation.
Koopmans: measurement presupposes theory.
Friedman: divide in small domains, simplify the
model and test the accuracy of predictions.
Samuelson: only describe.
Humean problem of induction – laws are
problematic. Popper’s solution: … until proven
otherwise.
Testing theories Popper-style:
5. Logical consistency (minimum requirement)
6. Falsifiability (demarcation criterion)
7. Empirical consequences (predictions)
8. Empirical content (more potential falsifiers if
theories say more precise things about more
phenomena)
Kuhn: a sociological turn
Normal science takes place in a scientific
community with specific norms and values
regarding the research domain, research methods
and criteria for good science. This is visible in
disciplinary matrix, affecting Gestalt and
perpetuated by the invisible college. This
determines what puzzles scientists are willing and
able to solve.
When are statements true?
Logical Positivism: Something is true if it can be
verified by observation.
Popper: Something is true if counterexamples can
disprove it.
Kuhn: Something is true if it conforms to social
conventions regarding truth. Two reactions
- Lakatos: Some conventions work better (have
more empirical content) than others
- Truth is context dependent (SSK and ESK)
SSK: quality criteria are historically and socially
specific, but there are criteria for SSK research
itself.
ES: four scientific values (criteria) – basic research
is a public good and needs to be subsidized.
ESK (David & Dasgupta): Open science and
reputation maximizing leads to communalism, but
the type of knowledge produced is affected. Is
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focused on breakthrough knowledge. No need to
subsidize scientists.
ESK (Kitcher): Cognitive diversity increases amount
of reliable knowledge. Criterion is if people
consider it reliable.
Rhetoric, Postmodernism, and Pluralism
McCloskey: convincing stories are better as long as
conversations are civil (whatever is mainstream is
apparently the most convincing/best).
Postmodernism: quality criteria are impossible or
even dangerous, emphasize on criticism.
Methodological pluralism: multiple criteria exist
(epistemological pluralism), and this is desirable/
must be actively promoted.
Criteria for
Criteria for
Criteria for
researching
scientist’
organizing
No criteria
scientists
behavior
science
SSK:
Merton (ES):
causality,
Merton (ES):
universalism,
impartiality,
organized postmodernism
impartiality,
symmetry,
skepticism
communalism
reflexivity
McCloskey:
David &
convince others Dasgupta
in civil
(ESK): open
conversations
science
Methodological
Kitcher (ESK):
pluralism:
cognitive
respect other
diversity
approaches
Methodological
pluralism:
epistemological
diversity
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Notes from previous exams
-
Humean Problem of Induction & the Logical
Positivists:
Logical Positivists believe that science must be
based on observation and logic, while explanation
is done by subsuming phenomena under laws
(given initial conditions). The Humean problem of
induction implies that laws cannot be found using
only observations, so strictly speaking explanation
is not a scientific activity.
-
Tinbergen applying the Logical Positivist
demarcation criterion to econometrics.
Tinbergen built mathematical models as a logical
foundation and verified these using statistics as the
empirical foundation.
-
Popper is opposed to immunizing stratagems (used
on a falsified statement to reinterpret it after the
fact as scientific) because he believes that they
would allow scientist to invent excuses to uphold
flawed theories indefinitely, preventing them from
searching for better ones.
Friedman’s demarcation criterion in relation to
Deductive-Nomological model of explanation.
The symmetry thesis that follows from the DN
model of explanation implies that a law plus initial
conditions allow predictions. As long as these
predictions are correct, the underlying laws are
scientific to Friedman.
-
Popper and empirical content of a theory.
According to Popper, it is easier to disprove a lawlike statement, the more specific inferences it
makes about more phenomena. So as specific the
theory is and the domain of applicability increase,
statements have more empirical content.
reflexivity means that the Edinburgh school
intends to stay critical towards their own world
view and inherent biases as well. As the first acts as
a barrier against biases and the second ensures
that biases are recognized when they arise, these
principles stimulate objectivity.
Kuhn prefers normal scientists to puzzle
solvers. What do the scientists have in common
with the puzzle solvers?
Using his four scientific values (universalism,
organized skepticism, distinterestedness,
communalism)
Merton
argued
that
fundamental research needs to be subsidized.
Explain.
While making a puzzle you make the assumption
that a solution exists, that it can be found using a
standard codified approach and that if you fail, it is
you that failed and not the puzzle. Normal
scientists tackle scientific problems this way too.
Scientists that disinterestedly offer universally
valid theories to a wide and critical audience as
quickly as possible allow everyone to benefit from
their discoveries, except themselves. To
compensate them, they must be subsidized.
-
-
Popper and immunizing stratagems.
The Edinburgh School Strong Program within
SSK aimed to describe scientific communities
as objectively as possible. Barnes and Bloor
formulated four methodological principles to
serve that goal. Name and explain them.
Causality: the causal conditions of scientists’
beliefs.
Impartiality:
beliefs.
true/false
and
rational/irrational
-
-
Methodological pluralism in response to the
relativistic and anti-realistic implications of
postmodernism.
According to postmodernists, truth is relative to
social structures and there is no objective reality to
check them against. Methodological pluralists
admit this may be true, but hold that by having
multiple perspectives at our disposal, we can still
make an informed decision as to when to use which
perspective.
Symmetry: the causes of true and false beliefs.
Reflexivity: the explanations of SSK itself.
Impartiality involves not passing judgment on the
beliefs of scientists that are subject of study, while
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A truly value-free economic science is unlikely
to be useful. Explain why.
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People are ethical creatures. An economic science
that does not value this aspect into account can be
said not to be about people at all.
If the price of coffee rises,
tea consumption rises
The price of coffee rises
more tea is consumed
-
Above is an example to the DN model of
explanation. Is this a scientific explanation
according
to
Logical
Positivist
instrumentalism? Samuelson’s descriptivism?
Popper’s falsificationism?
Acc. to LP instrumentalism, the first sentence
could be considered a law in line with
instrumentalism since it is useful, overruling the
Humean problem of induction. Explanation can be
defended as scientific.
Acc. to Samuelson laws do not exist because of
Humean problem of induction. Samuelson would
suggest that an explanation does not exist because
there isn’t a law. Scientists can only provide merely
useful descriptions. So, if the reasoning above is an
adequate description, it is scientific.
Acc. to Popper falsificationism, statements are
scientific when they can be disproven by at least
one counterexample. This applies to all statements
in this explanation, so it is scientific.
-
Kuhn on incommensurability and why it
renders constant scientific growth impossible.
According to Kuhn, paradigm shifts take place.
When they do, old and new scientist look at the
world in different ways and consider different
puzzles relevant. Therefore, paradigm shifts
cannot be rational: they are revolutions that play
out through emotions and changing power
balances. There is scientific growth, but only within
that paradigm.
-
Lakatos on Kuhn’s incommensurability and
why he believe growth of knowledge is
possible.
Kuhn’s
’’paradigm’’
= Lakatos’ ’’research
program’’. There’s progress within a research
program if it is theoretically and empirically
progressive. A program is theoretically progressive
if subsequent theories have more and more
empirical content. It is empirically progressive as
theories get better and better corroborated by
empirical results. If a program is neither, it is
degenerative. Scientists, especially young ones will
be rational enough to engage in progressive
programs. This will allow paradigm shifts ( or
changes in the dominant research programs) to
occur in rational ways that allow scientific growth
to continue despite them.
-
David and Dasgupta, in contribution to the
ESK, argue that science can be organized to
incentivize undertaking of basic fundamental
scientific research. Explain.
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Acc. to David and Dasgupta, scientists are
motivated by reputation than money. They believe
that if there is competition in an open and
transparently organized science, fundamental
research will definitely be undertaken because the
chance at a breakthrough is higher that way and
path breakers will get far more fame than those
applying other people’s ideas as long as they can
claim they were the first to publish that
breakthrough.
-
Jack Amariglio and Popper in relation to
reductionism.
Amariglio provided a
assumptions including:



list
of
structuralist
There is a single scientific method;
Knowledge has foundations;
Things and beings have essential natures.
Reductionism is the idea that all knowledge can be
reduced to a single essence (essential natures) .
This essence can only be found if knowledge has a
foundation that’s analyzed in a structured coherent
way (‘a single scientific method’).
Popper believes in a single scientific method which
is falsificationism. Laws are to be tested by
confronting them with foundational observations
and by striving for ever more empirical content,
their true essence is to be approximated. Especially
the latter is very reductionistic.
-
Friedman makes implicit methodological value
judgements on acceptable research methods
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and standards of validity. Explain those
judgements.
Friedman prescribes model building aimed at
correct predictions on well circumscribed domains.
Regarding method, this implies specifying the
domain and specifying the most important factors
at that domain. Regarding standards of validity,
this means that a theory is better, the clearer its
domain is demarcated and the more precise and
correct its predictions at this domain are.
-
Deductive-Nomological model in relation to
the received view of science and concept of
symmetry.
The DN model is the standard model of
explanation of the logical positivists. Acc. to the
DN model, a scientific explanation consists of an
explanans and an explanandum. The explanans
consists of a few correct statements, at least one of
which is a law-like proposition. The explanandum
can be derived from these statements by following
the rules of formal logic. If the explanandum is
known, the explanans provides the explanation. If
the explanandum is not yet known, the explanans
allows one to predict it (symmetry).
-
Samuelson’s deceptivism in relation to the DN
model.
Samuelson’s descriptivism implies that laws cannot
be formulated. But laws are indispensable for DN
type of explanations. Hence Samuelson rejects the
goal of predicting or explaining in a DN way.
-
Lakatos’ Methodology of Scientific Research
Programs (MRSP) synthesize the ideas of Kuhn
and Popper. Give a description of the
methodology and which elements were
inspired by Popper/Kuhn.
Acc. to Lakatos, a SRP consists of a hard core of
presuppositions protected by a protective belt of
less fundamental hypotheses and theories. The
hard core can be likened to Kuhn’s disciplinary
matrix. Which cannot be adjusted without
overthrowing the whole SRP.
Acc. to Lakatos, an SRP consists of a series of
theories, where falsified theories are replaced by
new theories that collectively have more empirical
content. Lakatos called this sophisticated
falsificationism. In coming up with new theories,
hypotheses in the protective belt are often
adjusted, which Popper would probably consider
an unacceptable immunization ex post. Lakatos,
however feels these should be allowed given the
problems with Popper’s naïve falsificationism
which were highlighted in the Duhem-Quine thesis.
Scientific progress within an SRP can be likened to
the scientific progress that occurs within
paradigms in periods of normal science as Kuhn
describes it. An SRP that is no longer able to adjust
its theories in such a way that the SRP’s collective
empirical content is rising, is no longer progressive,
but degenerating. It is to be expected that
scientists will leave degenerating SRP’s and opt for
progressive ones. This is similar to Kuhn’s
paradigm shift. But, in contrast to Kuhn, Lakatos
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considered a paradigm shift as a rational choice for
progressive SRP’s at the expense of degenerating
ones.
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The SSK’s and McCloskey’s rhetoric approach
are essentially socially constructivist. Explain.
Truth/knowledge/ facts arise from social
interaction. SSK studies these interactions by
paying attention to social relations and social
embeddedness
of
scientific
communities.
McCloskey looks at how knowledge gets
disseminated and accepted through conversations.
Both give prominence to the processes or social
relations that result in consensus.
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Logical Positivists and Popper both
distinguished between the context of discovery
and the context of justification. SSK did not
maintain this distinction. Explain why.
According to SSK, science is justified and
transformed by the scientific community in which
the research is done. This implies that the process
if justification coincides with the process of
discovery.
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Methodological value judgements made within
rational choice theory, together with the value
ladennes of a concept like ‘rational’, imply that
rational choice explanations are strongly valueladen. Explain.
‘Rational’ is value laden because its technical and
everyday meaning do not coincide. Its everyday
meaning implies an ethical judgement (it is good to
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be rational). Technically speaking, rationality is
about maximizing preference satisfaction given
limited means. Because of the methodological
value judgements on domain, methods and
validation standards, inherent in economics,
economists opted for a mathematical analysis of
the consequences of rationality. This analysis
shows that what is good for individuals benefits
society at large. So individuals are advised to
satisfy their preferences. But such a conclusion
neglects all other norms on what is good. So the
conclusions in rational choice theory end up being
political statements on how one should behave.
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Logical positivists in relation to universal laws.
According to Hume’s induction problem, universal
laws cannot be verified: verification is always based
on a limited set of observations, and the possibility
that a law-like regularity within this set fails outside
the set can never be excluded. Acc. to the
demarcation criterion of logical positivism,
however, scientific theories should be based on
analytic statements and verifiable or verified
synthetic statements only. Consequently, scientific
theories should not contain universal laws, as they
are neither analytical nor verified or verifiable.
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The Duhem-Quine thesis in relation to the
methodology of Milton Friedman.
The D-Q thesis suggests that if one has an
observation that contradicts with the model, it
does not necessarily mean that the model is
refuted. It could be that one of the used theories is
refuted, or that a measurement error was made,
etc. This also applies if a prediction of the model is
not true. Because, according to Friedman, models
must be validated on the basis of how well they
predict, the Duhem-Quine thesis shows that with
this method of validating it still is not clear whether
it is the model or something else that is good or
bad.
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It must satisfy the requirements of Hempel’s
deductive-nomological model of explanation. An
explanation should consist of at least one law and
true statements of initial conditions.
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Lakatos on scientific progress within a
scientific program.
Lakatos believes that when a theory is falsified, it
must be repaired. The new theory includes the
previous, falsified theory plus an explanation for
that falsification. The development of this new
theory must be carried out without affecting the
assumptions of the hard core.
Analytic statements and synthetic a posteriori
statements are scientific statements according to
Logical Positivism. Since analytic statements are
analytically verifiable and synthetic a posterior
statements are empirically verifiable.
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Methodological
Received View
descriptions.
values
of science
of
and
the
their
Many values are possible, as long as they clearly fit
the Received View. Merton’s four values could be
used
along
with
their
methodological
consequences (universalism, organized skepticism,
disinterestedness, communalism).
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An explanation is an answer to a why question.
What requirements, according to Logical
Positivism, must such an answer satisfy to be a
scientific explanation?
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Immanuel Kant distinguished the following
categories of knowledge statements; analytic
statements, synthetic a priori statements, and
synthetic a posteriori statements.Which of
these statements are, according to Logical
Positivism, scientific statements? Explain why.
Which of these statements are, according to
Karl Popper, scientific statements? Explain
why.
All statements are scientific statements according
to Popper, as long as they are falsifiable.
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The Duhem Quine thesis lays bare a problem
regarding a Popperian methodology.Describe
the problem.
A theory can never be conclusively falsified,
because we necessarily test the theory in
conjunction with its auxiliary assumptions and
background conditions. A refutation does not
clarify what has failed, the theory or one of the
background assumptions?
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Does this problem also apply to Friedman’s
methodology. Explain the answer.
revolution affect normal science/ Describe
these consequences.
The problem does not necessarily apply to
Friedman’s methodology. When a prediction of a
theory or model is rejected, the theory is
considered to be rejected, because the background
conditions are often considered to be part of the
theory or model.
A scientific revolution is when a normal science is
superseded by another normal science, but it does
not affect what the new normal science should be.
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Alan Musgrave distinguishes between three
different types of assumptions.What are the
types of these assumptions? Describe them
briefly.
Negligibility assumption; a factor that could be
expected to affect the phenomenon under
investigation actually has no detectable effect.
Domain assumption; an expected factor is
absent, and so is used to specify the domain of
applicability of the theory concerned.
Heuristic assumption; if a factor is considered
to be negligible, in order to simplify the ‘logical’
development of the theory.
Why did Musgrave distinguish these types of
assumptions? To indicate how assumptions can
be true, or how assumptions can be realistic?
Explain your answer.
How the assumptions cans be realistic. An
assumption functions to simplify, abstract, or
idealize the phenomenon under investigation,
therefore they are never true.
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Falsificationism; theories should be falsifiable.
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Thomas Kuhn speaks of normal science and
scientific revolutions. How does a scientific
What elements of Lakatos’methodology are
typically Kuhnian? Describe these elements.
Progress is evaluated with respect to research
programs and not with respect to individual
theories.
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Imre Lakatos’ methodology can be regarded
as a synthesis of Popper’s falsificationism and
Kuhn’s view on science.What elements of
Lakatos’s
methodology
are
typically
Popperian? Decribe these elements.
Robert Merton identified four core values of
science: universalism, organized skepticism,
disinterestedness and communalism.Describe
these core values.
Universalism: claims to truth are evaluated in
terms of universal or impersonal criteria, and
not on the basis of race, class gender, religion,
or nationality.
Organized skepticism: all ideas must be tested
and are subject to rigorous, structured
community scrutiny.
Disinterestedness: scientists are rewarded for
acting in ways that outwardly appear to be
selfless.
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
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Communalism: the common ownership of
scientific discoveries, according to which
scientists give up intellectual rights in
exchange for recognition and esteem.
Explain of each value in what way it
corresponds to the scientific norms of Logical
Positivism.
Universalism corresponds with
Positivist’s aim of unified science.
Organized skepticism
verifiability principle.
the
corresponds
Logical
to
the
Disinterestedness corresponds with the Logical
Positivist’s aim of value-neutral science.
Communalism
knowledge.
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corresponds
to
objective
According to Deirdre McCloskey, science is a
specifically organized ‘’civil’’ conversation.
What are, according to ESK, the norms such
‘’civil’’ conversation must meet?
Various possibilities, among which the following
may apply:
The norms of an efficient market.
The norms of open science.
Merton’s four norms.
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According to the Logical Positivism,
integrating theories in a general theoretical
framework (unification) leads to better
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knowledge. Later philosophers of science
emphasize pluralism. Give arguments for both
positions.
Unification ensures coherence and consistency of
scientific knowledge. Unification can also lead to
more general knowledge.
Pluralism is preferred by some philosophers
because it accepts that multiple forms of
knowledge exist, which may be incommensurable
or inconsistent with one another, but which taken
together may give more complete knowledge.
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Plagiarism is considered to be fraud. Which
methodology
(philosophical
approach),
discussed
in
the
course
economic
methodology, has a scientific norm that you
should not plagiarize? Explain why this is so.
Any SSK/ESK/ES account in which the reputation
of individual scientists play a central role, or which
includes an incentive system that rewards
individual contributions.
Rhetoric, if it includes a norms for civic
conversation that excludes this kind of fraud.
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According the strict criteria of the original
Logical Positivism, universal statements are no
part of science, because of the problem of
induction. Provide and describe two later
developments in Logical Empiricism in which
these criteria have been revised such that
universal statements still are part of science.
Instrumentalism: universal statements are merely
considered as useful instruments whose value is
measured not by whether they are true or false, but
by how effectively they explain and predict
phenomena.
Confirmationism: universal statements do not
express certain knowledge but instead express
probabilistic knowledge.
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According to Tjalling Koopmans measurement
without the usage of a theoretical frameworkmeasurement without theory – is unscientific.
Therefore he has various arguments. Explain
one of his arguments.
Theory is needed to clarify how the empirical
results have to be interpreted. Without theory it is
not clear what a researcher means by the applied
concepts and terms.
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Explain how the Dunhem Quine Thesis is a
problem for a Popperian methodology.
According to the Dunhem Quine Thesis, a theory
can never be falsified. Finding a falsifier does not
mean that the theory is rejected: measurement
errors or operationalization errors can be made, or
an auxiliary theory is rejected. Some of the theory
adjustments afterwards which Popper could call
immunizing, can, however, be considered as theory
improvement. If this happens in an ad hoc manner,
this is a stratagem that Popper disproves, because
it induces unjustified immunizing afterwards.
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Explain that the incommensurability thesis of
Thomas Kuhn excludes that the development
of science is only a rational development.
Development of knowledge is tied to rules that
yield within a paradigm. When anomalies show
that these rules do not work appropriately
anymore (more and more puzzles cannot be
solved), a revolution will be the result which
eventually leads to a new paradigm with a new
world view and new rules. Paradigm-trascending
rules do not exist and so one cannot say that the
new paradigm is an improvement: they are
incommensurable.
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An important element of the methodology of
Lakatos is the use of ‘novel facts’for the
assessment of theories. Explain the use of
novel facts for the assessment of economic
science can be problematic.
A research program is progressive when new
puzzles can be solved. It is theoretically progressive
when it contains the promise of solving puzzles and
empirically progressive when it really solves the
problems, but when this last kind of progress have
to take place is not determined.
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Barnes
and
Bloor
formulated
four
methodological principles for SSK: causality,
impartiality, symmetry and reflexivity. Explain
why this last principle of reflexivity relativizes
the findings of SSK.
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Reflexivity implies that the SSK principles are not
settled but can be investigated with the principles
of SSK: a SSK of SSK. Because in that case one
uses the same principles, one can never determine
why these principles were chosen.
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