Theory - Economic Methodology

Question 1

What is logical positivism?

Answer 1

Logical positivism is a philosophical movement from the early 20th century that aimed to define and separate scientific knowledge from non-scientific or pseudo-scientific ideas.

Question 2

Where did logical positivism originate?

Answer 2

Logical positivism originated in Berlin and Vienna in the 1920s and continued into the 1950s in the United States.

Question 3

Positivism can also be called

Answer 3

empiricism

Question 4

What was the main aim of the logical positivist program?

Answer 4

It was to demarcate scientific knowledge, and to mainly distinguish science from pseudo-science

Question 5

What is the demarcation criterion rule?

Answer 5

It means that you can only accept analytic and synthetic a posteriori propositions or statements as scientific knowledge

Question 6

What characterizes analytic propositions?

Answer 6

Analytic propositions are tautological, meaning they are true by definition.

Question 7

Provide an example of an analytic proposition.

Answer 7

An example of an analytic proposition is “All bachelors are unmarried males.” since this is just the definition of a bachelor

Question 8

Are all valid mathematical and logical propositions considered analytic?

Answer 8

Yes, valid mathematical and logical propositions, such as “1 + 1 = 2” and “A → A,” are considered analytic.

Question 9

Can you provide examples of synthetic a posteriori propositions?

Answer 9

Examples of synthetic a posteriori propositions include statements like “My neighbors’ dog is aggressive” and “The color of the coffee I am drinking is light brown.”

Question 10

What is the basis for the truth of synthetic a posteriori propositions?

Answer 10

The truth of synthetic a posteriori propositions is grounded in our experience of the real world.

Question 11

In what circumstances are synthetic propositions considered true?

Answer 11

Synthetic propositions are considered true when supported by evidence obtained through empirical research.

Question 12

What role does empirical research play in determining the truth of synthetic a posteriori propositions?

Answer 12

Empirical research serves as the method to demonstrate the truth of synthetic a posteriori propositions, establishing their validity based on real-world experience.

Question 13

How do we define the term “analytic proposition”?

Answer 13

Analytic propositions are defined as statements that are true by virtue of their meaning or definition.

Question 14

Could you offer another example of a valid mathematical proposition that is considered analytic?

Answer 14

Certainly, “2 + 2 = 4” is an example of a valid mathematical proposition that falls under the category of analytic.

Question 15

How does logical positivism view statements that are not analytically true?

Answer 15

Statements that are not analytically true, referred to as synthetic propositions, are subject to empirical verification according to the logical positivist perspective.

Question 16

Could you provide additional examples of synthetic propositions in everyday language?

Answer 16

Certainly, examples include statements like “The temperature outside is 30 degrees Celsius” or “Water boils at 100 degrees Celsius at sea level.”

Question 17

What distinguishes the truth criteria of analytic and synthetic propositions in logical positivism?

Answer 17

Analytic propositions are true by definition, while the truth of synthetic propositions is determined by empirical verification based on real-world observations.

Question 18

How did logical positivists respond to these scientific developments?

Answer 18

In response to these developments, logical positivists denied the existence of synthetic a priori propositions in science and advocated for empirical investigation of all propositions not true by definition.

Question 19

Describe in 4 steps Karl Popper’s procedure:

Answer 19

1. Posit a sweeping theory
2. Specify what observations would prove you wrong (potential falsifiers)
3. test critically trying to find falsifiers
4. theory is true as long as step 3 fails

Question 20

What does it mean if scientific knowledge is fallible?

Answer 20

This means that it is considered true and scientific until proven otherwise

Question 21

What is the Falsification Principle proposed by Karl Popper?

Answer 21

The Falsification Principle, proposed by Karl Popper, is a method for distinguishing science from non-science. It asserts that for a theory to be considered scientific, it must be testable and potentially falsifiable.

Question 22

: How does the Falsification Principle apply to scientific theories?

Answer 22

The Falsification Principle suggests that scientific theories should be formulated in a way that allows for empirical testing, and they must be vulnerable to being proven false. Popper argues that a genuine scientific theory is one that can be subjected to experiments or observations that, if outcomes are different from predictions, could potentially falsify the theory.

Question 23

How does Karl Popper’s philosophy differ from that of the Logical Positivists?

Answer 23

Karl Popper’s philosophy differs from Logical Positivism in the way they approach the demarcation of science. While Logical Positivists, such as members of the Vienna Circle, emphasized verification as a criterion for meaningful statements, Popper proposed falsifiability. Popper argued that scientific theories should be formulated in a way that allows for the possibility of being proven false through empirical testing.

Question 24

According to Popper a theory must AT MINIMUM be:

Answer 24

logically consistent

Question 25

What is the Humean problem of induction and why was it a challenge for scientific inquiry?

Answer 25

The Humean problem of induction, based on David Hume’s skepticism, questioned the logical justification for making predictions about the future based on past observations, challenging the reliability of induction as a method for establishing scientific knowledge.

Question 26

How did Popper’s approach provide a more robust framework for scientific inquiry compared to traditional methods?

Answer 26

Popper’s emphasis on falsifiability offered a more critical and rigorous framework for scientific inquiry by encouraging the testing of theories through deductive reasoning,

Question 27

Define a Synthetic a posteriori statement

Answer 27

Not tautological or true by definition, but verifiable and true when confirmed by observation. For example ; The colour of my coffee is brown

Question 28

Characteristics of a synthetic a posteriori statement:

Answer 28

• Not inherently true or self-evident
• Requires empirical verification
• Confirmed through observation
• Example: Scientific hypotheses and predictions

Question 29

Synthetic a priori statement

Answer 29

Not tautological or true by definition, and not verifiable.

Question 30

Synthetic a Priori statements were introduced by :

Answer 30

Immanuel Kant

Question 31

Axiomatization -

Answer 31

characterization of scientific theory in first-order formal language (A(.)∀B(.), B∨D…)

Question 32

Define demarcation:

Answer 32

distinguishing science from non-science

Question 33

How many components are there in the Explanans according to the DN Model?

Answer 33

There are two components in the Explanans: Lawlike Proposition (1) and Conditions (2).

Question 34

What does the DN Model suggest about the predictability of a phenomenon?

Answer 34

The DN Model suggests that if you have both the Lawlike Proposition and the Conditions, you should be able to predict the phenomenon (3).

Question 35

Provide an example illustrating the DN Model using the terms Lawlike Proposition, Conditions, and Explanandum.

Answer 35

Potato harvests are falling (Lawlike Proposition). Supply is decreasing (Conditions). Therefore, the price of potatoes increases (Explanandum).

Question 36

According to Popper knowledge is scientific if it is _________ and can be __________ by observation

Answer 36

logically consistent; disproven

Question 37

How does Popper define scientific knowledge in terms of potential falsifiers?

Answer 37

Popper defines scientific knowledge as having potential falsifiers, meaning it must be logically consistent and have the possibility of being disproven by observation.

Question 38

Using the example of the Earth revolving around the Sun, how does Popper illustrate the concept of falsifiability?

Answer 38

Popper illustrates falsifiability by explaining that the Earth’s rotation around the Sun can be proven or disproven by observation, demonstrating the criteria for scientific knowledge.

Question 39

How does the concept of falsifiability apply to the assertion about the relationship between money in circulation and average prices?

Answer 39

The concept of falsifiability is demonstrated as the assertion can be tested by observing whether an increase in the money supply corresponds to a rise in average prices, or if there is a discrepancy, thereby disproving the claim.

Question 40

Why are claims that use words like subconscious regarded as non-scientific?

Answer 40

This is because terms like “subconscious” are unobservable and undefined as unconscious, making it impossible to prove or disprove through observation.

Question 41

What is the crucial difference between a Popperian approach and a logical positivist perspective regarding blanket statements?

Answer 41

In a Popperian approach, any blanket statement is considered scientific, such as declaring that dragons do not exist. This is because it can be formulated as a general law and potentially disproven. In contrast, logical positivists may find such statements unscientific, as they argue that proving the non-existence of something is challenging.

Question 42

Why is the conclusion that dragons do not exist considered scientific from a Popperian perspective?

Answer 42

In a Popperian perspective, the conclusion that dragons do not exist is considered scientific because it is formulated as a general law that can be potentially disproven. It meets the criteria of being testable and falsifiable.

Question 43

For Popper not all theories are created equal. To be considered scientific , theories have to fulfill two minimum requirements. What are they?

Answer 43

• They have to be logically consistent
  and
• They have to be falsifiable

Question 44

What is the significance of empirical content in relation to the domain of a theory?

Answer 44

The empirical content of a theory increases as its domain becomes larger. A larger domain makes the theory applicable to more instances, making it both easier to falsify and more illuminating. This is because a broader domain allows for more potential falsifiers, and the theory becomes more informative about the phenomena it addresses.

Question 45

How does the precision of a theory affect its falsifiability, according to Popper?

Answer 45

Popper suggests that as the precision of a theory increases, it becomes easier to falsify. A theory that specifies precise details or numerical predictions is more vulnerable to falsification, as any deviation from these exact predictions can falsify the theory.

Question 46

Provide an example from classical economics to illustrate the concept of falsifiability in theories.

Answer 46

In classical economics, the example of Adam Smith’s idea of a natural level is used. If a theory merely states that the interest rate falls, rises, or stays equal, it is not falsifiable because one of these outcomes is always true. However, if the theory becomes more precise, such as predicting a continuous fall until reaching a natural level, it becomes more informative but also easier to falsify.

Question 47

What is the difference between a less illuminating scientific theory and a more informative one, according to Popper?

Answer 47

Popper distinguishes between less illuminating and more informative scientific theories based on the level of precision and the domain of the theory. A less illuminating theory may be scientific but lacks precision, while a more informative theory is both precise and has an increased domain, making it more applicable and potentially easier to falsify.

Question 48

The higher the empirical content, the higher the class of ________

Answer 48

potential falsifiers

Question 49

What exactly is the degree of corroboration?

Answer 49

how often have scientists tried to disprove a theory and have failed

Question 50

The explanas is made up of the _____ and the _____

Answer 50

lawlike proposition and conditions

Question 51

Describe the 3 ways in which empirical content can be increased:

Answer 51

1. You can increase its domain
2. You can make the predictions more precise
3. You can add potential consequences to the theory

Question 52

The demarcation criteria primarily focuses on the ________ sciences

Answer 52

natural

Question 53

______ laws are harder to find and less universal than laws in the physical sciences

Answer 53

Social

Question 54

Social laws are _____ and _______ specifc

Answer 54

socially; historically

Question 55

What belief of Hegel and Marx’s did Popper entirely disagree with (with regard to historicism)

Answer 55

They claimed that history would unfold in a deterministic way and Popper viewed social laws as being historically specifc

Question 56

What did Popper support in societal governance?

Answer 56

Popper supported an open society with laws for an ideal society but stressed openness to being wrong and constant public debate.

Question 57

How does Popper see social scientists?

Answer 57

: Social scientists are different from natural scientists. They know there’s no one truth, but they should always admit when they might be wrong.

Question 58

The main theme in Poppa’s thought, whether about social science or natural sciences, is the constant embrace of ______

Answer 58

uncertainty

Question 59

There’s a constant __________ process engaged in the social sciences. Social sciences should run on a different level because they cannot hope to find a __________ truth.

Answer 59

trial and error; universal

Question 60

Popper argued that social laws are harder to find and less ________ than laws in the physical natural sciences.

Answer 60

universal

Question 61

According to Popper, if there were a foolproof way to outsmart the stock market, widespread adoption of this strategy would lead to the market’s collapse due to______ ____

Answer 61

mass adoption

Question 62

Popper opposed what he saw as Hegel’s and Marx’s flaws in their _________. He argued that social laws are socially and historically specific and can be _______ if desired.

Answer 62

historicism; avoided

Question 63

Popper opposed deterministic views, asserting that Marx and Hegel did not recognize the _____ and _______specificity of social laws, advocating for openness to critical voices and criticism.

Answer 63

social ; historical

Question 64

The first method to handle a falsifying instance is to ______________ by reclassifying observations that contradict it.

The second method is to__________ by adjusting underlying theories when faced with falsifying instances.

Popper opposes finding excuses, deeming it forbidden and a sign of being a bad scientist.

The third method is to _____________, altering where the theory is applied, potentially lowering its empirical content.

In contrast to Friedman, Popper insists that when a falsifying instance is identified, the entire theory should be rejected and replaced.

Answer 64

defend the theory ;
react defensively;
change its domain

Question 65

What is the first method discussed by Popper for handling falsifying instances?

Answer 65

The first method is to defend the theory by reclassifying observations that contradict it.

Question 66

In contrast to Friedman, what does Popper insist should happen when a falsifying instance is identified?

Answer 66

In contrast to Friedman, Popper insists that when a falsifying instance is identified, the entire theory should be rejected and replaced.

Question 67

What does Popper’s perspective involve when handling falsifying instances?

Answer 67

Popper’s perspective involves scientific revolutions, creating new theories that incorporate both previous insights and new facts.

Question 68

What is recalibration, and how can it improve a theory?

Answer 68

Recalibration involves adjusting measurement instruments or operationalizations; it can lead to an improvement in the theory.

Question 69

: How does reclassification contribute to theory improvem

Answer 69

Reclassification can enhance a theory, as seen when whales were reclassified as marine mammals instead of fish.

Question 70

According to Kuhn, in order to become a member of the scientific community, individuals need to be interested in questions within the specific ________ of their field, such as how markets function for economists.

Answer 70

domain

Question 71

The research domain, research methods, and criteria for good science are something that members of the scientific community need to ________ upon.

Answer 71

agree

Question 72

Scientists are judged by their fellow scientists based on certain criteria for good science, including demarcation criteria, which are used to assess the ________ of the research.

Answer 72

quality

Question 73

Kuhn describes the societal structure of science in terms of a ________ matrix, which consists of four elements, with the first being a ________.

Answer 73

disciplinary; paradigm

Question 74

A paradigm is a leading example that researchers try to ________ in their work. In economics, the Marshallian cross is an example of a paradigm for charting markets.

Answer 74

emulate

Question 75

What is a paradigm?

Answer 75

A paradigm represents a set of assumptions and practices that define a field of study or intellectual inquiry at a certain point in history.

Question 76

Metaphysics in economics refers to beliefs that go beyond the ________ and the tangible. For instance, the belief that supply and demand curves exist cannot be proven or verified in reality, as demonstrated by the loanable funds exercises in macroeconomics.

Answer 76

physical

Question 77

Supply and demand, as concepts, are considered ________ because they can’t be seen, yet economists believe that markets obey rules based on them.

Answer 77

metaphysical

Question 78

The disciplinary matrix is challenging to escape as individuals are indoctrinated from a young age through ________ examples.

Answer 78

standard

Question 79

The use of specific markets in education aims to make the concept of supply and demand more ________ for students.

Answer 79

understandable

Question 80

The disciplinary matrix’s influence continues until individuals may lose their ability to think critically to some ________.

Answer 80

extent

Question 81

The idea of firms as machines is introduced to make it easier to believe that firms can be fine-tuned, thus influencing the ________ in business economics.

Answer 81

metaphysics

Question 82

According to Kuhn’s policy, after graduation and during a PhD, a professor who supervises the research is responsible for the quality of the end work. If the work adheres to disciplinary rules, the supervisor may stimulate the researcher, but if the work is too original, the supervisor may cut them ________.

Answer 82

short

Question 83

Scientific conferences play a crucial role in maintaining the disciplinary matrix. Presenting work that aligns with the established rules can enhance one’s reputation, while presenting work that deviates may lead to neglect, ridicule, and difficulty in getting published. This ensures that the disciplinary matrix is ________.

Answer 83

kept intact

Question 84

The disciplinary matrix molds individuals into a certain world view, convincing them that one way of viewing the world is the ________ one.

Answer 84

right

Question 85

The metaphor of viewing a market in terms of supply and demand is used to illustrate the concept of ________.

Answer 85

Gestalt

Question 86

What is Kuhn’s view on truth in science?

Answer 86

Kuhn rejected the correspondence theory of truth, stating that truth is relative to the paradigm accepted by scientists.

Question 87

What is the major source of disagreement between Kuhn and Popper?

Answer 87

The concept of normal science

Question 88

For Popper what is the definition of a true scientist?

Answer 88

Being critical

Question 89

Why did Kuhn disagree with Popper’s belief that scientists are critical?

Answer 89

According to Kuhn science is developed with accordance to phases that are called paradigms

Question 90

What are the 4 elements of a disciplinary matrix?

Answer 90

1. Paradigm
2. Metaphysics
3. Symbolic generalization
4. Values

Question 91

Empirical content rises as statements become more :

Answer 91

general and more precise

Question 92

The higher the number of potential falsifiers, the higher the:

Answer 92

empirical content

Question 93

0. Does Popper hold that his methodology can be equally applied to the social sciences and the
   physical sciences alike? Why (not)?

Answer 93

1. No. In Popper’s view science progresses by stating bold conjectures on cause and effect
   relationships. In social sciences such cause and effect relationships are socially and
   historically specific and subject to change. Therefore bold conjectures have less staying
   power and speaking of trends or tendencies is the best one can do.

Question 94

According to Popper, to allow for progress in science, immunizing strategies are ______ allowed.

Answer 94

not

Question 95

What does “immunization” mean in the context of theories?

Answer 95

Immunization, in the context of theories, refers to the practice of upholding theories even when they have been found to be false.

Question 96

What are some ways of immunizing a theory?

Answer 96

There are several ways to immunize a theory. One way is through ad hoc reclassifications of terms, such as changing the definition of a specific term. Another method involves making ad hoc changes to underlying theories. The last way is through an ad hoc change in the domain of the theory.

Question 97

Can you provide an example of ad hoc reclassification as a method of immunizing a theory?

Answer 97

Yes, for instance, in the mentioned example, ad hoc reclassification could be done by changing the definition of the term ‘profit.’

Question 98

How does an ad hoc change in the domain of a theory serve as a method of immunization?

Answer 98

An ad hoc change in the domain of a theory involves specifying that the theory only applies to certain conditions or contexts. In the given example, this could be achieved by stating that the theory holds true only for companies in specific markets or those with a minimum number of shareholders.

Question 99

According to Kuhn, when an observation seemingly contradicts key beliefs in the scientific community, it is termed as an ________.

Answer 99

anomaly

Question 100

Instead of outright rejecting theories when anomalies are found, Kuhn suggests that scientists often employ ________ stratagems to protect their existing beliefs.

Answer 100

immunizing

Question 101

Anomalies in science, such as the financial crisis in economics, may prompt scientists to try fitting the anomaly into the existing ________ of science, including standard paradigms, research methods, metaphysics, and criteria for justification.

Answer 101

mold

Question 102

The financial crisis in 2007-2008, which challenged the belief that monetary variables could not influence the real economy, is considered a ________ event in economics

Answer 102

black swan

Question 103

The inability of existing models to foresee the financial crisis led to a recognition that some anomalies may require a new way of viewing the world, taking distance from previous principles such as the classical dichotomy. This need for a new perspective is often termed a ________ switch by Kuhn.

Answer 103

Gestalt

Question 104

Anomalies, like the financial crisis, may reach a point where the existing disciplinary matrix and beliefs of a community can no longer be repaired. This may lead to young scientists doubting their education and the beliefs of their discipline, potentially resulting in a ________ switch.

Answer 104

Gestalt

Question 105

Kuhn describes a Gestalt switch as a moment when, using different principles, the world starts appearing completely differently ________.

Answer 105

all of a sudden

Question 106

What is Karl Popper’s stance when a theory fails to predict observations?

Answer 106

Popper asserts that if a theory fails to predict observations, it indicates a fundamental failure, and the theory should be entirely rejected.

Question 107

How does Milton Friedman differ from Karl Popper regarding theories that do not predict accurately?

Answer 107

Friedman disagrees with Popper and argues that if a theory fails to predict a specific set of observations, it does not necessarily mean the entire theory is invalid; instead, it might only be limited in its scope for predicting certain phenomena.

Question 108

According to Popper, what is the appropriate course of action when a theory is unable to make accurate predictions?

Answer 108

Popper recommends dismissing the theory entirely when it fails to predict observations, as it indicates a significant flaw in the theory.

Question 109

How does Friedman’s perspective contrast with Popper’s in terms of handling theories that do not predict certain phenomena?

Answer 109

Unlike Popper, Friedman believes that if a theory fails to predict a particular class of phenomena, it doesn’t warrant the complete rejection of the theory; instead, it may indicate limitations in its predictive capabilities for specific cases.

Question 110

According to Popper’s criteria for scientific statements, why would he consider the statement “If more Euros can be bought per Dollar, the European balance of trade with the US improves, while the US trade balance with Europe deteriorates” as highly scientific?

Answer 110

Popper would consider this statement highly scientific because it involves multiple observable consequences and is specific enough to be subject to empirical testing, aligning with his principle of falsifiability.

Question 111

Popper gave two reasons why social laws may be difficult or impossible to find (or even non-existent). They were:

Answer 111

Societies are always in some stage of development. Laws that apply to one stage, may not apply to another, so social laws are always historically specific. 2) If a law-like regularity is found, people will change their behaviour in response, thus voiding the law.

Question 112

According to Kuhn’s “The Structure of Scientific Revolutions,” how do social aspects influence the content of science?

Answer 112

Kuhn contends that disciplinary training in a field imparts a specific world view or Gestalt to individuals. This world view not only shapes the perceived relevance of questions but also dictates the acceptable research approaches for trained professionals.

Question 113

In Kuhn’s perspective, what role does disciplinary training play in shaping the content of science?

Answer 113

Kuhn argues that disciplinary training bestows individuals with a particular world view (Gestalt), which not only influences the types of questions considered relevant but also prescribes the permissible research approaches within a specific scientific discipline.

Question 114

In Kuhn’s 1970 postscript to “The Structure of Scientific Revolutions,” what components make up a scientific community’s disciplinary matrix?

Answer 114

According to Kuhn, a disciplinary matrix in a scientific community comprises symbolic generalizations, a metaphysical part, values, and a paradigm.

Question 115

According to Kuhn’s postscript, what is the role of the metaphysical part in the training of individuals in a scientific community?

Answer 115

Kuhn suggests that the metaphysical part is involved in training as individuals make standard assumptions about entities and processes in the world while solving standard problems of the discipline.

Question 116

What does Kuhn mean by a Gestalt switch, and how does he illustrate this concept?

Answer 116

A Gestalt switch, according to Kuhn, is when scientists adopt different principles, causing the world to suddenly appear entirely different. He illustrates this concept using the example of a picture that can be interpreted in two ways, similar to how scientists may switch their worldview when confronted with too many anomalies in normal science.

Question 117

When anomalies accumulate to the point where the existing disciplinary matrix becomes difficult to repair, it may lead to doubt among young scientists about their ____________ and the beliefs of their discipline.

Answer 117

education

Question 118

The financial crisis of ____________ challenged the long-held belief in economics that monetary variables could not influence the real economy, leading to a significant anomaly.

Answer 118

2008

Question 119

Thomas Kuhn suggests that instead of outright rejection, scientists often employ ____________ when faced with anomalies, adapting existing principles to incorporate them into the scientific framework.

Answer 119

immunizing stratagems

Question 120

A Gestalt switch, according to Kuhn, occurs when scientists adopt different ____________, causing the world to suddenly appear entirely different.

Answer 120

principles

Question 121

Imre Lakatos aimed to synthesize Kuhn and Popper by introducing the concept of ____________ in his methodology of scientific research programs.

Answer 121

sophisticated falsification

Question 122

Lakatos defines a research program as consisting of a hardcore and a protective belt. The hardcore encompasses all the ____________ and central beliefs of a scientific community.

Answer 122

disciplinary matrix

Question 123

Imre Lakatos introduced the concept that a research program consists of two crucial components: a hardcore and a protective belt. The hardcore encapsulates the fundamental and central beliefs, forming the bedrock of a scientific community’s understanding within a specific ____________.

Answer 123

research program

Question 124

The hardcore, according to Lakatos, represents the stable and non-negotiable principles, assumptions, and theories that define the essential tenets of a scientific ____________.

Answer 124

discipline

Question 125

In mainstream economics, an example of a hardcore belief might be the assumption that economic agents behave rationally in maximizing ____________.

Answer 125

utility

Question 126

The stability and resilience of the hardcore are crucial elements in Lakatos’ framework, providing a theoretical foundation that guides scientific inquiry and problem-solving within the specific ____________.

Answer 126

research program

Question 127

The Timbergen vs Keynes discussion revolves around bias and the question of whether all causalities are known. Tinbergen’s model is considered reliable only if ________________.

Answer 127

all casualties are known

Question 128

Haavelmo suggested that we might discover permanent “laws” by observing causalities and advocated for measuring probabilities rather than exact values. He addressed the problem of passive observation by emphasizing the importance of waiting for a variable to change enough to ________________.

Answer 128

reveal its potential influence.

Question 129

Milton Friedman criticized the idea that more variables lead to more precise theories, realizing that complex econometric models didn’t predict better than “Naïve models.” He advocated for creating new models that predict better without blindly adding more variables, similar to Marshall’s approach of breaking down complex models into smaller bits and tackling them ________________.

Answer 129

one by one

Question 130

What is one of the fundamental challenges faced in econometrics that distinguishes it from physics experiments?

Answer 130

No laboratory: we can’t easily do experiments in a vacuum. Always other variables are there. It’s not like physics.

Question 131

How does the addition of more variables impact the certainty and complexity in econometrics?

Answer 131

More variables -> More certainty and but also more complexity.

Question 132

According to the discussion on starting BIG or starting SMALL, what are the two contrasting approaches suggested by Vining from NBER, Timbergen, and Koopmans?

Answer 132

Start BIG (NBER or Tinbergen) or start SMALL on a theoretical basis and expand (Koopmans).

Question 133

What was the traditional belief about achieving more precise economic theories, and what did Milton Friedman realize about the effectiveness of complex econometric models?

Answer 133

Previously, the idea was that if u want more precise theory u need more variables and thus control variables making it more complex. Friedman realized that complex econometric models didn’t predict things better than “Naïve models,” which were simple

Question 134

Any absurd and unrealistic prediction or correlation that actually holds would be considered a ______ scientific model by Friendman’s logic

Answer 134

good

Question 135

The problem with econometrics is that you cannot ______ variables like in Physics

Answer 135

isolate

Question 136

What is the primary challenge faced by econometricians when applying the scientific method to economic problems?

Answer 136

Econometricians encounter a formidable challenge due to the inherent difficulty in setting up experimental situations in economics, unlike the controlled experiments common in the natural sciences.

Question 137

What is the Humean problem of induction and why is it a challenge for Logical Positivists (LP)?

Answer 137

The Humean problem of induction poses a challenge for LP because limited observations can never definitively justify limitless generalizations, suggesting that such generalizations are not scientific. LP acknowledges the necessity of such generalizations in scientific explanations.

Question 138

How did Logical Positivists (LP) respond to the Humean problem of induction?

Answer 138

LP developed two responses to the Humean problem of induction. They began viewing these generalizations either as instrumental guidelines or probabilistically.

Question 139

What is the main issue that LP faces in relation to the Humean problem of induction?

Answer 139

The main issue for LP is that the Humean problem of induction implies that limited observations cannot definitively justify limitless generalizations, challenging the scientific nature of such generalizations, which are essential in scientific explanations.

Question 140

What are the two ways in which LP started viewing generalizations in response to the Humean problem of induction?

Answer 140

: LP started viewing generalizations either as instrumental guidelines or probabilistically as a response to the challenge posed by the Humean problem of induction.

Question 141

What does inductive reasoning involve?

Answer 141

Inductive reasoning involves making generalizations based on specific observations.

Question 142

According to Hume, what is the central difficulty posed by the problem of induction?

Answer 142

According to Hume, the central difficulty is the lack of a logical justification for assuming that the future will resemble the past, even if a consistent pattern has been observed in the past.

Question 143

Keynes argued that Tinbergen’s econometric approach relied too much on trial and error, lacking a solid ________ foundation.

Answer 143

theoretical

Question 144

According to Keynes, Tinbergen’s measuring assumed a complete understanding of all causal relationships in the economy, which Keynes deemed ________.

Answer 144

unrealistic

Question 145

Keynes believed that Tinbergen’s estimates of the effect of causal factors would be biased unless ________.

Answer 145

all causal factors were considered

Question 146

Keynes raised concerns about the ________ problem, suggesting that Tinbergen’s identified causal relationships might not always hold in the future.

Answer 146

invariance

Question 147

In criticizing Tinbergen’s econometric method, Keynes argued that Tinbergen’s approach did not directly incorporate certain parameters, such as betas and gammas, into the equations at the beginning of the modeling process, making it more about measuring correlations than testing specific _________.

Answer 147

betas

Question 148

According to Keynes, Tinbergen’s econometric approach faced a potential problem in terms of the future, known as the ________ problem, making it uncertain whether identified causal relationships would always hold in future scenarios.

Answer 148

invariance

Question 149

Keynes raised concerns about Tinbergen’s approach, stating that Tinbergen’s method was not informed by theory per se and relied heavily on ________ and error.

Answer 149

trial

Question 150

In addition to the general to specific approach, Havelmo provided a blueprint for simultaneous equations econometrics and hypothesis testing, which became core elements of modern ________.

Answer 150

econometrics

Question 151

. Havelmo proposed a strategy for finding economic laws, where variables such as y are affected by a large number of variables x1, x2, x3, and so on. The idea is to estimate the relation between y and the x variables, test their significance, and retain only those x variables that have a ________ effect on y.

Answer 151

significant

Question 152

According to Havelmo, the models constructed in modern econometrics should include error terms to account for the fact that they do not capture the ________ perfectly.

Answer 152

data generating process

Question 153

Havelmo suggested a strategy for finding economic laws involving the estimation of relationships between variables and subsequent hypothesis testing. If a stable relation between y and a few x variables is found, it may be considered a ________ in the data.

Answer 153

regularity

Question 154

In Havelmo’s strategy for finding economic laws, a potential problem arises when a variable, although potentially impactful, does not change in the observed data set, leading to its ________.

Answer 154

exclusion

Question 155

Havelmo emphasized the importance of a ________ in addition to looking at past data when forecasting structural breaks or black swans in the economy.

Answer 155

theory

Question 156

According to Havelmo, what is emphasized as crucial when forecasting structural breaks or black swans in the economy, in addition to examining past data?

Answer 156

: Havelmo emphasized the importance of a specific methodology or approach.

Question 157

The debate known as the measurement without theory debates emerged between the NBR and the Kaus Commission. Tjalling Koopmans, the director of the Kaus Commission, criticized Burns and Mitchell for lacking a theory about the relations between different economic variables, emphasizing the importance of having a theoretical framework. Koopmans used the term “__________” to describe Burns and Mitchell’s approach.

Answer 157

measured a lot of things without theory

Question 158

. Havelmo suggested a strategy to find economic laws by assuming that a variable (y) is possibly affected by a large number of variables (x1, x2, …, xn). He proposed estimating the relation between y and the x variables, testing which x variables have a significant effect on y, and only keeping those x variables that have a significant effect. If this yields a stable relation, it could be considered __________.

Answer 158

an economic law or a regularity in the data

Question 159

. In the Keynes-Tinbergen Debate, Keynes argued that Tinbergen’s method assumed a complete understanding of all causal relationships in the economy, which Keynes deemed unrealistic. According to Keynes, this assumption would lead to __________.

Answer 159

omitted variable bias, as the model’s measurements would only be accurate if all causal connections were known in advance.

Question 160

Rutlech Vining, an NBER fellow, responded to Koopmans’ criticism by stating that the Kaus Commission’s theoretical model was too simple to capture the diversity displayed by the data. Vining argued that descriptive statistics are useful, comparing them to the use of a microscope by biologists. According to Vining, descriptive statistics help __________.

Answer 160

discover hypotheses that may be worked out in theories and eventually estimated and tested.

Question 161

Mitchell from NBER argued against constructing a single mathematical model for all business cycles, stating that such an approach is problematic because __________.

Answer 161

No theory can adequately describe every business cycle, as each cycle has unique characteristics and variations.

Question 162

Mitchell countered the criticism by asserting that the Kaus Commission’s (Koopman’s) theoretical model was __________.

Answer 162

too simplistic to capture the diverse patterns displayed by the data.

Question 163

What is the role of the “hardcore” and “protective belt” in Lakatos’ view of sophisticated falsificationism?

Answer 163

In Lakatos’ sophisticated falsificationism, the “hardcore” represents the foundational assumptions of a discipline, while the “protective belt” allows for the development of theories that may face potential falsification. Elaborate on this concept.

Question 164

How does Lakatos suggest dealing with falsifications without immediately rejecting a theory?

Answer 164

Lakatos recommends falling back on the “hardcore” assumptions when faced with falsifications.

Question 165

How can various ways of doing science coexist in a rational manner, according to Lakatos?

Answer 165

Lakatos suggests that different ways of doing science can coexist, but the most progressive research program, capable of solving problems effectively, will attract the most support.

Question 166

How does Lakatos distinguish between a degenerating and a progressive research program?

Answer 166

Lakatos differentiates based on their ability to solve novel problems. Progressive programs attract attention, while degenerating ones struggle to contribute meaningfully.

Question 167

What makes a research programme progressive?

Answer 167

First, it should be theoretically progressive. This means that each new theory in a sequence should go beyond the previous one by predicting new and unexpected facts. In simpler terms, each theory should bring more to the table than the one before it.

Secondly, it should be empirically progressive. This means that some of the new predictions made by the theory should actually be proven true through observation or experimentation. In other words, the theory shouldn’t just make random guesses; it should make accurate predictions that can be confirmed by real-world evidence.

Question 168

What is the meaning of a novel prediction?:

Answer 168

A prediction is considered novel if the theory not only forecasts something that hasn’t been predicted by previous theories in the sequence but also if the anticipated observation is not predicted by any competing program that might be emerging, and it’s not aligned with the commonly accepted beliefs or ideas.

Question 169

Thanksgiving (Canada)

Answer 169

Second Monday in October

Question 170

Imre Lakatos did not agree that paradigm shifts were that _________

Answer 170

irrational as Kuhn had previously proposed.

Question 171

Lakatos believed that a scientific research program is made up of two parts. What are they and what does each part consist of?

Answer 171

The hard core - so the assumptions that cannot be adjusted and they define the research program; the hardcore comprises the central, immutable principles guiding scientific inquiry,
The protective belt - so the assumptiosn that can be adjusted

Question 172

Is the market converging to an equilibrium part of the hard core or the protective belt and why?

Answer 172

It’s part of the hard core; it’s a fundamental assumption in classical and neoclassical economic theory

Question 173

According to Imre Lakaos a paradigm shift is a rational choice to abandon a ________ research program in favour of a progressive research program

Answer 173

degenerating

Question 174

According to Lakatos scientific revolutions occur when a ______ programme is replaced by a __________ one.

Answer 174

degenerating, progressive

Question 175

According to Lakatos, each theory within a programme contains a core set of assumptions, termed the “________,” surrounded by a set of auxiliary hypotheses, forming a “_________.”

Answer 175

hardcore, protective belt

Question 176

According to Lakatos what happens when a theory within a research programme is refuted/falsified?

Answer 176

The hard core assumptions are not discarded. Instead, they scrutinize and modify auxialiary hypotheses within the protective belt.

Question 177

How does Lakatos’s view contrast with Kuhn’s idea of scientific dominance by a single paradigm?

Answer 177

Lakatos argued that science typically involves competing research programmes, contrary to Kuhn’s notion of dominance by a single paradigm.

Question 178

What is the meaning of the “naturalistic turn” for the Sociology of Scientific Knowledge?

Answer 178

The naturalistic turn focuses primarily on studying scientific communities with the same objectivity applied to studying natural phenomena

Question 179

What fundamental assumptions guide the Sociology of Scientific Knowledge in understanding the nature of truth and scientific communities?

Answer 179

The Sociology of Scientific Knowledge posits that truth is socially constructed and relative to the conventions of scientific communities. Key assumptions include: understanding the social context in which truth is created leads to understanding what is considered true or false; each scientific community develops a unique perspective or “gestalt” through training; and the “naturalistic turn” entails studying scientific communities with an objective lens akin to studying natural phenomena.

Question 180

What are the 4 principles of the Edinburgh Strong Programme

Answer 180

Causality: Understand why scientists hold certain beliefs by exploring social, cultural, and institutional influences.

Impartiality: Approach all beliefs neutrally, postponing judgment on their truthfulness or rationality.

Symmetry: Treat the causes of both true and false beliefs equally, recognizing social factors’ role in shaping scientific ideas.

Reflexivity: Apply the Strong Programme’s principles to the study of SSK itself, ensuring researchers scrutinize their own biases and methodologies.

Question 181

How is the view of McCloskey different compared to all other disscussed view in the course?

Answer 181

McCloskey approaches economics not as a science but as humanities

Question 182

How is McCloskey view simmilar to SSK approach?

Answer 182

Both SSK and McCloskey’s non-science view look not at theories of scientists but rather at their tools and practices -> Sociological approach

Question 183

What are the 3 main types of appeals according to Rhetoric Approach? Explain all 3 briefly

Answer 183

1. Logos - logical appeals
2. Pathos - Emotional appeals
3. Ethos - appeal to speaker’s authority or sincerity

Question 184

what type of appeal in Rhetorical Approach would an economeetric model be?

Answer 184

Ethos

Question 185

What does McCloskey think about positivism (sum it up in one key word)

Answer 185

Restrictive

Question 186

What does McCloskey’s view say about scientific methodology? What other rules does she underline?

Answer 186

There is no methodology, as you can do whatever you want and use any method to persuade someone. The only rule is to be civil and be open to others

Question 187

McCloskey compares economists to ____.

Answer 187

Story-tellers.

Question 188

Is the work of Klamer&Colander simmilar to McCloskey’s? How do they see education and textbooks?

Answer 188

Klamer&Colander agree with and expand the work of McCloskey. Education is a structured type of communication and textbooks and the standarisation of content and prevent controversies

Question 189

What is the basic idea of Postmodernism?

Answer 189

Basically critisize and question ppls fundamental beliefs and knowledge

Question 190

How is Postmodernism simmilar to McCloskey

Answer 190

They both reject fundumental methodology, and assumptions about knowledge

Question 191

What is the key point of Plularism

Answer 191

That postmodernists have a point, but there are some legitimate forms kf knowledge and not everything is bullshit

Question 192

What is Relativism? Explain its key assumptions

Answer 192

The truth and knowledge not objective but relative to historical and social context.If we can understand historical/social context -> we understand why communties produce their version of truth

Question 193

What are the 3 key statements in Plularism

Answer 193

1. Rejection of relativism
2. Rejection of reductionism
3. Methological pluralism

Question 194

What is reductionism?

Answer 194

It means that there is one key concept in each field that fundumentally explains everything

Question 195

What are SSK, ES and ESK. How do they differ?

Answer 195

They are 2 ways to understand the practices of science (not judhe theories/truth!!). SSK uses sociological approach while ES and ESK use economic approach

Question 196

Explain what is meant by “Naturalistic turn”

Answer 196

Pre-Kuhn, in positivism ppl like Popper set up rules and methodology to get as close to objective truth. They would judge scientists and their behaviour to see if they work towards the truth. Post-Kuhn scientific community shifts towards observing and describing different communities and their POVs to understand their truths. There is no objective 1 truth. In this approach you can judge objecitivity and value of descriptions but not truth and scientists themselves.

Question 197

The scientists of the SSK that within a scientific community be valued you have to _____ out but to be part of the group you have to ________

Answer 197

stand out; conform

Question 198

What are the 2 main approaches to create objective descriptions in SSK?

Answer 198

1. Edinburg Strong programme
2. Laboratory Studies approach

Question 199

What are the 4 priciples a scientist must follow in Edinburg strong approach? Explain them all.

Answer 199

1. Causality - nevel judge ppl at face value, this would lead u to insert ur judgement
2. Impartiality - ask long and hard questions to udnerstand: why are u doing this, what do?
3. Symmetry - Once u understand what makes a community successful , you know what can cause its demise.
4. Reflexivity - look at ur own work carefully. judge it. Why do u think ur reserach and they way u conducted it was a good idea? Why was causality and impartiality a good idea?

Question 200

Why was the Edinburgh Strong Programme described as “strong”?

Answer 200

Because they took on a stricty naturalistic approach by viewing scientists in the same was as natural phenomena

Question 201

What is the “anthropological approach”?

Answer 201

You become a part of a culture, until this culture can be understood from the perspective of a culture itself, not from a POV of an outsider. If u go back to ur own culture, explain your own culture from the perspective of a culture u studied and vice versa -> then u have objectivity about a studied culture

Question 202

List the 4 methodological principles of the Edinburgh Strong Programme:

Answer 202

1. causality –> Focus on why scientists believe what they believe
2. impartiality –> SSK researcher should set aside their own beliefs of what is true and false, and be a completely neutral observer.
3. symmetry –> The same type of sociological analysis must be applied to research programmes that are both true and false (this is what makes the strong programme strong).
4. reflexivity –> Apply SSK analysis to SSK research (why do SSK researchers believe the things they do?). This is what makes the strong programme vulnerable to attacks.

Question 203

What are the two verions of Economic approach to understand practice of science? How do they differ?

Answer 203

ES and ESK. ES says that what scientists do (their incentives) do not change based on how science is organised. ESK says that they do change

Question 204

From what perspective did the Strong Programme look at science?

Answer 204

They analysed and look at how social factors play a big role in how scientific ideas are formed

Question 205

How does the Strong Programme challenge traditional views of science?

Answer 205

The Strong Programme challenges the idea that scientific beliefs are formed purely based on objective evidence, instead arguing that social factors such as training, goals, and societal influences also play a significant role.

Question 206

What are the 4 norms in science according to ES? Explain them all

Answer 206

CUDOS:
1. Communalism - share discoveries as quickly as possible

2. Universalism - do science in a way that is applicable to large groups and universal situations
3. Disinterestness - you have no bias to any side
4. OS - organised scepticism - a good scientist should be ready to be critisized

Question 207

Give an example of how the Strong Programme views scientific beliefs in a symmetrical way. How does this example illustrate the symmetrical analysis emphasized by the Strong Programme?

Answer 207

An example is the comparison between the acceptance of Lysenko’s Lamarckian theory in the USSR due to Marxist-Leninist politics and the preference for Darwinism in Western societies, which can also be attributed to social and political factors. This example shows how social and political factors influenced scientific beliefs in both cases.

Question 208

Can you explain the concept of “symmetry” in the context of scientific paradigms?

Answer 208

Symmetry in scientific paradigms refers to the idea that the same social factors can lead to the acceptance or rejection of different scientific beliefs, regardless of their validity. This means that successful and unsuccessful paradigms may share similar underlying causes, highlighting the complex interplay between societal influences and scientific progress.

Question 209

Does ESK (new approach) believe in CUDOS assumptions? How are they met?

Answer 209

Yes it does. The system of “open science” where scientists are motivated by fame and recognision ensures they follow CUDOS anyway, even without financial gains like in ES

Question 210

What model did David&Dasgupta create? To what approach does it belong?

Answer 210

David & Dasgupta created “open science” model that fits into ESK.

Question 211

“Open science” causes science to be breakthrough oriented. What is the consequence of that?

Answer 211

That all scientists focus on anomalies -> they want to explain/solve them for fame and recognition

Question 212

What is the “lock-in problem”?

Answer 212

whatever rules govern competition cause ppl to follow only these rules and not experiment outside of them, thus changing paradigms is difficuilt -> new crazy breakthroughs that require new way of looking at the world are not rewarded

Question 213

What is Kitcher’s Social epistemology?

Answer 213

It says science is organised socially so science stadards are the same as social ones. It’s goal is to increase the ratio of reliable beliefs to total beliefs.

Question 214

How does Kitcher’s epistemology solve the “lock-in problem”?

Answer 214

U operationalise science like market for ideas: whatever idea that sells best is probably good. This means knowledge is promoted by cognitive diversity and competition
This Diversity is to solve the “lock-in problem”

Question 215

What does McCloskey approach say about demarcation criteria?

Answer 215

There is no demarcation, as McCloskey want to throw out any restrictions. Any way to convince sb of your theory works.

Question 216

According to McCloskey, economics operates like a ______

Answer 216

conversation

Question 217

What is the danger in the fact, that economists are the story-tellers and these who are the most convincing rise to the top? (McCloskey)

Answer 217

whoever gets to the top, is not someone who iis actually right or has good intentions

Question 219

What is Open science system?

Answer 219

Scientific results are quickly and readily available to all interested parties (who can check them and test them)

Question 220

What is an open science system (ESK) ?

Answer 220

– where scientific results are quickly
and readily available to all

Question 221

What are the four principles that must be satisfied for good science according to the Economics of Science (ES) (often referred to as CUDOS norms) ?

Answer 221

1. Communism (Communalism):
   Common ownership of scientific discoveries - because it is the work of multiple scientists and
   can lead to further research. Scientists give up intellectual property in exchange for recognition
   and esteem.
2. Universalism:
   The validity of a scientific claim should be evaluated with universal or impersonal criteria.
   Shouldn’t depend on the scientist’s race, gender, class etc. and there should be equal opportunities
   for all scientists.
3. Disinterestedness:
   Scientists should work to advance science and not for personal or financial gain.
4. Organized Skepticism:
   Scientific claims should be rigorously tested and scrutinized by the scientific community in an
   organized way.

Question 222

If the CUDOs principles are satisfied, basic research is a public good with positive externalities and
should therefore be __________

Answer 222

subsidized

Question 223

What approach do sociologists from Laboratory Studies take?

Answer 223

They take a naïve perspective and simply observe
what scientists do in a laboratory – they take an anthropological approach. (What tech is used, how are results presented and discussed, organization of the workspace etc.)

Question 224

ESK is inspired by ____

Answer 224

ES (Robert Merton)

Question 225

ES is more ______ in nature while ESK is more ______ in nature

Answer 225

prescriptive; descriptive. This is because ES provides guidelines and recommendations while ESK takes on a more descriptive approach

Question 226

How does an open science system incentivize scientists to produce more research? *ESK

Answer 226

This is because the promise of esteem, recognition and fame are more inclined to make discoveries

Question 227

What are the key principles associated with open science, as outlined by Dasgupta and David?

Answer 227

Communalism, disinterestedness, and organized skepticism are key principles associated with open science, according to Dasgupta and David.

Question 228

Explain exactly how lock-in effects hinder innovation and progress.

Answer 228

Lock-in effects when there are strong incentives to continue using a particular technology or methodology leading to path dependency. When this occurs, it becomes difficult and costly to switch to alternatives, even if they may be more effective and thereby societies or industries may become “locked-in” to suboptimal choices.

Question 229

What are the effects of an optimal division of labour according to Kitcher?

Answer 229

An optimum division of labour is one that strikes a balance between specialization and coordination. This balance maximizes the ratio of “true justified beliefs” to the total number of beliefs generated by scientific inquiry. In other words, it aims to ensure that scientific research produces accurate and justified knowledge to the greatest extent possible.

Question 230

What does David Collander of ESK criticise?

Answer 230

David Collander critiques the incentives within the field of economics, arguing that economists are pressured to adhere to mainstream methodologies, even if these methodologies lack solid methodological foundations or fail to address pressing societal needs.

Question 231

What does disinterestedness refer to? (ESK)

Answer 231

It refers to the idea that scientific inquiry should be motivated by a desire for knowledge rather than personal gain or recognition.

Question 232

What exactly is relativism?

Answer 232

It is the idea that scientific knowledge is not objective but is dependent on historical and social context. SSK definitely supports this view and ESK at times, as can be seen from lock-in effects.

Question 233

What is the concern with relativism?

Answer 233

The concern with relativism is that it is self-defeating (like the reflexivity issue in the strong programme)
– even the research produced by SSK and ESK researchers is relative and may be based on their own beliefs so why should we believe them?

Question 234

What is realism?

Answer 234

The view that the world exists independently of our theories, and the world is to be discovered or
understood by scientists.

Question 235

What does immunization ex ante refer to?

Answer 235

Immunization ex ante: are things that make the theory immune before its even tested (eg: a general
ceteris paribus clause, or being extremely vague and imprecise).

Question 236

What does immunization ex post refer to?

Answer 236

Immunization ex post: Ad hoc adjustments to the theory, its domain and definitions to rescue the theory if it isn’t corroborated by data. (eg: Marxism has been immunized ex post since it initially predicted capitalism would lead to conflict and would be replaced with communism, but when it wasn’t realized it was replaced with a number of reasons why it hasn’t happened yet).

Question 237

What is Incommensurability?

Answer 237

two competing paradigms cannot be compared. The result is that members of each
paradigm cant understand each other:

Question 238

What exactly are the conditions of sophisticated falsification?

Answer 238

Assumptions in the hard core should not (or cannot) be falsified. Since most theories require unverifiable background assumptions.

Question 239

What was the measurment-without-theory about?

Answer 239

Vining vs Koopmans debate about relevance of factors and how we can tell if sth is relevant or not in the model

Question 240

Explain Vining’s view in Measuremnt-without-theory debate. When can you tell if sth is/isn’t important?

Answer 240

If we do enough observations, we will see relevant factors arrive. You cannot say sth is relevant if it hasn’t changed enough

Question 241

Explain Koopman’s view in Measurement-without-theory debate

Answer 241

Apart from observations, we can use our intuition/general knowledge to tell what will be relevant in the given model and we should use these things. Critisied Vining for being too emphirical to the point of being impractical

Question 242

How did Musgrave defend Friendman? Why (according to him) did he think Friedman wasn’t anti-realist

Answer 242

Friedman advocated simpler models, with factors tha are affected by less variables in a significant way and then ignoring everything else. This didn’t make models “anti-realist” but more focused and simpler

Question 243

What did Samuelson say about the work of Friedman?

Answer 243

Friendmans ideas give wrong ideas to policy makes due to their unrealistic assumptions. We need to ensure that correlations we observe are causal not jsut happen to be. He also proposed that correlatiomns should be obsserved both ways A->B and B->A to truly determine their causality (equivalence)

Question 244

Piecemeal social engineering - what is it?

Answer 244

Idea in Open Society. Talks about how to implement changes: Advice goverment, they try, check outcomes, adjust, try…… Constant trial and error process in social sciences

Question 245

What alteration did David and Dasgupta from ESK make to Merton’s ideas (ES) regarding the motivation of scientists?

Answer 245

They suggested that scientists are primarily motivated by reputational rewards rather than financial gain.

Question 246

How does David and Dasgupta’s model ensure that scientisits maintain the 4 norms of good science?

Answer 246

So they believed that scientists are motivated by fame and recognition so if this is your aim you will aim to produce discoveries that are universal and are widely accepted (Universalism). On top of that you will strive to publish and release your discoveries ASAP to ensure that you are not second. Furthermore, scientists do not want to be accused of being self-motivated so disinterestedness is safeguarded. This model also encourages scientists to subject their work to rigorous scrutiny and critique from their peers before publication.

Question 247

How do Nobel prizes fit into David and Dasgupta’s model of rewarding scientific breakthroughs?

Answer 247

Nobel prizes fit into David and Dasgupta’s model by providing scientists with recognition, fame, and funding for further research, thereby motivating them to produce high-quality discoveries.

Question 248

Does David and Dasgupta discuss the lock-in problem?

Answer 248

No they didn’t come up with it. However we can connect their work to it, namely, when there is a scientist with a different worldview, aiming for a paradigmatic change, he may not be rewarded by the Nobel Prize Committee.

Question 249

According to Robert Merton (ES) a scientist will not get away with saying something that is partly untrue because _______

Answer 249

other scientists of the committee will find these faults. He refers to this as ‘organized skepticism’

Question 250

According to Merton (ES) a good scientist would never keep ____ to themselves

Answer 250

results; this is considerebed to be communalism

Question 250

Why does Merton advocate for government subsidies to support basic scientific research?

Answer 250

He sees it as a public good benefiting everyone except the scientists themselves.

Question 250

Despite the potential societal benefit from their work, what do scientists often not receive according to Merton (ES) ?

Answer 250

Financial rewards for their efforts

Question 250

What is the role of patents in applied research according to Merton?

Answer 250

Once basic research is published, patents can protect applied research, allowing for cost recovery and reducing the need for ongoing subsidies.

Question 251

What type of research does Merton believe should be subsidized to ensure its continuation?

Answer 251

Fundamental research with broad societal benefits.

Question 252

How does ANT’s concept of translation help explain the differences observed in the research priorities of economic methodologists at the University of Amsterdam and the Erasmus University of Rotterdam?

Answer 252

ANT’s concept of translation refers to the process through which actors align their interests and goals to form alliances and networks. At the University of Amsterdam, economic methodologists may align their research with practical economic problems, influenced by interdisciplinary collaborations facilitated by the Amsterdam School of Economics. Conversely, at the Erasmus University of Rotterdam, economic methodologists may be more influenced by philosophical discourse due to the presence of the Erasmus Institute for the Philosophy of Economics. This difference in translation processes helps explain the divergent research priorities observed between the two universities.

Question 253

Explain how Actor-Network Theory (ANT) considers both human and non-human actors in shaping scientific practices, using the example of economic methodologists at the University of Amsterdam and the Erasmus University of Rotterdam.

Answer 253

Actor-Network Theory (ANT) emphasizes the interconnectedness and agency of both human and non-human actors in shaping scientific practices. At the University of Amsterdam, economic methodologists interact with philosophers, faculty members, and institutional structures, while at the Erasmus University of Rotterdam, similar interactions occur within different organizational contexts. ANT highlights how non-human actors, such as institutional arrangements and funding mechanisms, also influence research priorities and methodologies alongside human actors.

Question 254

Briefly dicuss what Kitcher’s social epistemology is:

Answer 254

It revolves around the idea that sciences are organized socially,

Question 255

Who decides the quality criteria for scientists to uphold according to Kitcher?

Answer 255

It is up to society to decide what criteria they consider important for knowledge, not individual scientists or philosophers.

Question 256

How does Kitcher propose to increase the ratio of reliable beliefs in the population?

Answer 256

By ensuring an open market for knowledge where users can choose the information they find most useful, thereby increasing the availability of reliable beliefs.

Question 257

What distinguishes Kitcher’s approach from older methodologies?

Answer 257

Kitcher does not prescribe what it means to be scientific or reliable; instead, he emphasizes that society will determine these criteria.

Question 258

What role do scientists play in Kitcher’s model?

Answer 258

Scientists are tasked with producing high-quality research, while the users of that research determine its trustworthiness and applicability.

Question 259

What are the 3 pillars of classical rhethoric?

Answer 259

Logos, pathos and ethos

Question 260

Pathos is explaining/convincing concepts using

Answer 260

emotions

Question 260

Ethos is convincing others using ________

Answer 260

credibility/trust,

Question 261

McCloskey criticizes the theories that came before. She considers all of them as being _____

Answer 261

positivist

Question 262

McCloskey thinks that the idea of the deductive nominological model is far too _______

Answer 262

restrictive. She believes that there can be many good theories that are not written in the form of covering laws of providing predictions

Question 263

McCloskey believes that _____ is not the only code of science

Answer 263

predictions

Question 264

According to McCloskey economists use mathematics, proofs, significance test as means of giving authority. Which pillar of classic rhethoric is this?

Answer 264

Ethos

Question 265

Why does McCloskey ciriticise positivism?

Answer 265

She argues that in many cases economic theories are not convincing because of their predictions/observations but rather that they make intuive sense.

Question 266

What example does McCloskey give for how economists use intuition to make a theory persuasive?

Answer 266

Interactive competition is shown as “game theory” and this makes intuitive sense because we have all played games prior. This helps us get into the grips of these more complex economic theories

Question 267

What does McCloskey say about metaphors being used in economics?

Answer 267

She says that analogies are usually succesful because they use metaphors from non-economic concepts that resonate with people and are persuasive

Question 268

McCloskey differentiates between big and small ‘m’ methodology. One type is more worthy of attention than the other, in her view. Explain which type she thinks is most worthy of attention while using these terms correctly. As she feels that scientists themselves…

Answer 268

…are best positioned to assess the quality of the work of their peers, methodologists should focus on describing their practices through small ‘m’ methodology and not pass judgement on them through big ‘M’ Methodology (aka high horse methodology)

Question 269

POSITIVE NEGATIVE HEURISTICS

Question 270

The Humean problem of induction revolves around the problem that experience is always ______ in space and time and therefore eternal truths cannot spring from ______

Answer 270

limited; experience

Question 271

Currently there are 19 European countries in which the Euro is the official currency. What type of statement is this.

Answer 271

Synthetic a posteriori. It’s not analytic because by defintion European countries are not ones that always adopt the euro.

Question 272

What does Carnap’s confirmationism state?

Answer 272

This approach states that laws do not
express certain knowledge about the world, but express probabilistic knowledge. Probability concerns the likelihood of success of having logical statements.

Question 273

What does Schlick’s instrumentalism state?

Answer 273

Instrumentalism states
that useful instrument value is not measured by it being true or false but by how effectively can it explain and predict phenomena,
in other words its usefulness. He states the scientific laws are “usable guidelines” or “working hypothesis”. Thus, laws or universal statements are instrument guidelines but are not useful thus not scientific. Only meaningful statements can be categorized as certain statements can be considered scientific.

Question 274

What is Koopman’s view on the importance of theory in econometrics?

Answer 274

Koopman believes that theory is necessary to avoid simultaneous equation bias and to interpret empirical data.

Question 275

According to Friedman, what is the comparative advantage of naïve models over macroeconometric models?

Answer 275

Friedman suggests that naïve models are better at predicting because there is too much trial and error in large econometric models.

Question 276

What does Haavelmo advocate for in econometrics?

Answer 276

Haavelmo advocates for the use of probability and expressing economic models in terms of statistical relationships.

Question 277

How does Friedman employ “as if” reasoning in his Methodology of Positivist Economics paper?

Answer 277

Friedman uses “as if” reasoning to explain the occurrence of a phenomenon by proposing an action that would result in that phenomenon occurring.

Question 278

What reservations did John Maynard Keynes express about econometrics (Tinbergen)?

Answer 278

Keynes was very skeptical about econometrics, pointing out that estimates of causal factors are biased unless all causal factors are considered, but some cannot even be measured, leading to omitted variable bias. He also criticized the field for relying too much on trial and error rather than being informed by theory. Additionally, he raised concerns about the invariance problem, questioning whether estimated relations would hold in the future.

Question 279

Which philosopher/economist came up with the blueprint for Modern Econometrics?

Answer 279

Haavelmo

Question 280

Who worked out and came up with the LSE approach in econometrics?

Answer 280

Haavelmo

Question 281

Who tried to discover business cycle regularities in a large number of time series?

Answer 281

NBER so Burns and Mitchell

Question 282

For what did Koopmans criticise NBER?

Answer 282

He believed that theory is necessary to avoid simultaneous equations bias, and to interpret
empirical data and he also raised Invariance problem: will these regularities also hold in the future?

Question 283

Milton Friedman was very critical of _______

Answer 283

large, econometric models

Question 284

What were the three types of assumptions of Alan Musgrave?

Answer 284

1. Negligibility assumption which states that some factors do not have an important effect and can be neglected
2. Domain assumption: assumption that the theory is only applicable within a certain domain (for example theory is only applicable if inflation is not too high)
3. Heuristic assumption: Shortcute to simplify the theory such as by using an “as if “ assumption

Question 285

2. Friedman’s methodological aims are interpreted in various ways. They can be seen either
   as a call for instrumentalism, or as a critique of too much realisticness. Give arguments for
   each of these interpretations.

Answer 285

Friedman was 1. in favor of “economic instrumentalism” (whether assumptions are realistic or not does not matter, as long as the theory predicts well) 2. Or opposed to “realisticness” (assumptions should be descriptively correct in all
their details)

Question 286

What reason does Merton give for why economic research should be subsidized (ES)?

Answer 286

A good scientist should aim to publish universally acceptable knowledge in which s/he has
no personal stakes as quickly as possible for scrutiny by a critical audience. Such basic
research fuels the development of commercial applications and innovations. Therefore,
basic research must be subsidized.

Question 287

Value judgements enter economics in 4 ways. What are they?

Answer 287

1. Methodological value judgements
2. Value ladenness of concepts and explanations
3. Supporting particular ethical views
4. Representation of ethical values and norms

Question 288

Methodological value judgements involve decisions about:

Answer 288

1. Choice of subject matter –> researchers must specify what questions they will be seeking to address; for example we should take a closer look at markets
2. Method of investigation –> Researchers must agree upon and teach relevant research techniques and skills within their discipline, how the investigation ought to be proceed, how to go about it
3. Standard of validity –> This may include statistical significance, model predictive power, or other measures of validity.

Question 289

Stating that a tax will distort markets and lead to unemployment is seen as a _______ statement,

Answer 289

factual

Question 290

Asserting that unemployment should be prevented is seen as a ________ statement.

Answer 290

normative

Question 291

Why does Myrdal believe that economics is value-laden?

Answer 291

This is because even without purposeful intention, economists convey their values in the technical langauge they use, so for example in their usage of words like rationality and equilibriu

Question 292

What is ordinal utility?

Answer 292

The notion that in ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility, moreover, we cannot compare peoples’ utilities because this is very subjective

Question 293

What is cardinal utility?

Answer 293

The idea that economic welfare can be directly observable and be given a value.

Question 294

What are the two ways in which rational choice explanations can be said to become strongly value laden according to Myrdal ?

Answer 294

1. How the concept of rationality is defined –> Rationality is often defined narrowly as maximizing preference satisfaction, thereby ignoring broader ethical principles such as justice or fairness
2. Rejection of cardinal utility –> Rational choice expectation often reject the idea of cardinal utilitty which is the idea that utility can be quantitatively compared between individuals, thereby ignoring things like equality and social welfare

Question 295

Samuelson’s descriptivism requires that…

Answer 295

models contain only verified assumptions and have only verified implications. This means that the model is only a valid description of observations so far, but cannot be used to explain or predict things that we have not yet observed as fitting the model.

Question 296

According to logical positivists science grows by building upon ….

Answer 296

certain knowledge and by conducting new observations

Question 297

Paradigms are …

Answer 297

templates for problem solving that inform how research in a specific community is to be conducted.

Question 298

For Friedman a law is scientific if it ….

Answer 298

When the model’s predictions align with real-world outcomes, it is deemed scientific.

So when a model generates accurate predictions it is scietnific. For Friedman, a theory is scientific if it predicts well within a specified domain, even if its underlying assumptions may not reflect reality accurately

Question 299

How does Friedman’s approach align with positivism?

Answer 299

Friedman’s approach aligns with positivism in its acceptance of the deductive-nomological model but diverges from traditional positivism in its emphasis on predictive success rather than testing assumptions and premises.

Question 300

According to Samuelson’s descriptivism models contain only verified assumptions of the _____

Answer 300

past , what has occurred so far and therefore cannot be deemed a scientific law that holds in the future as well