A Note on Fundamental Theory and Idealizations in Economics and Physics

Abstract

Modern economics, with its use of advanced mathematical methods, is often looked upon as the physics of the social sciences. It is here argued that deductive analyses are more important in economics than in physics, because the economists more seldom can confirm phenomenological laws directly. The economist has to use assumptions from fundamental theory when trying to bridge the gap between observations and phenomenological laws. Partly as a result of the difficulties of establishing phenomenological laws, analyses of idealized ‘model-economies’ play a more important, but mainly heuristic role, in economics.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 9 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.