Thirteenth Global Studies Conference

Abstract

The use of models and imaginary constructions in economic science is an indispensable tool of research in order to cope with the complexity of economic reality. But, as M. Blaug points out, economic science had increasingly become an “intellectual game played for its own sake and not for its practical consequences for understanding the economic world”. Economic scientists seem to be caught in an inescapable dilemma of either building rigorous analytical models with little practical relevance or throwing out models altogether and dealing only with economic history. The purposes of the paper are: (1) to demonstrate that the lack of realism of some economic theories and policy recommendations is not necessarily the result of building economic models per se; it is rather the result of how imaginary constructions are designed and used (based on the assumption that economic reality is more or less an imperfect replica of the mathematical models designed by the theorists); (2) to methodologically appraise different types of economic models and imaginary constructions employed in economic research; (3) to discern the methodological requirements of building models relevant for understanding the economic world.