Uskali Mäki

For the last three decades, the discussion on Hilary Putnam’s provocative suggestions around the issue of realism has raged widely. Putnam’s various formulations of, and arguments for, what he called internal realism in contrast to what he called metaphysical realism have been scrutinised from a variety of perspectives. One angle of attack has been missing, though: the view from the social sciences and the ontology of society. This perspective, I believe, will provide further confirmation to the observation that Putnam’s two concepts of realism are all too aggregative in that they conflate elements that had better be kept distinct, at least for many important purposes (e.g. Niiniluoto 1996). The present essay can be read as an argument for a topic-specific examination of realism. This means that it challenges the overall validity of Richard Boyd’s arguments against what he calls “realism about”, that is, against “a certain fragmented conception of scientific realism, one according to which realism is deeply topic specific” (Boyd 1990, p. 175). Boyd takes the ‘x’ in realism about x” to designate two kinds of things: entities postulated in scientific theories (“realism about the ether” and “realism about higher taxa”) and scientific disciplines (“realism about physics” and “realism about biology”) (ibid., pp. 175, 190). He also suggests that “it seems possible cogently to accept realism about the natural sciences while denying it about at least some of the social sciences” (ibid., p. 191). In Boyd’s view, the possibility of realism about social sciences is undermined by their weak instrumental success; it is the instrumental reliability of method that he takes as the basis for a realist account of science. I do not underwrite this connection between realism and instrumental success, thus I am not compelled to reject realism about social sciences on these grounds; and, as we shall see, social sciences have other peculiarities as well (see Mäki 1996). I think we should, at least to some degree, disaggregate and relativize the issue of realism. I do have sympathy with Boyd’s strategic arguments against “realisms about”, but yet I believe realists will be better off by adopting a more concrete and localized approach to the issue (Mäki 2005). Social objects and social sciences deserve a separate treatment. There are two strategies that can be followed in examining a realism about x (type of entity, theory, discipline). One is to first fix the meaning of realism’ and then specify the extension of ‘x’. This is Boyd’s strategy. The other is to fix some part of the extension of ‘x’ and then adjust the meaning of ‘realism’ so as to accommodate whatever peculiarities the x in question may have (and finally to check whether the adjusted meaning of ‘realism’ meets the criteria of a minimal notion of realism; it would be here that we encounter a relatively fixed idea of some minimal realism, or a set of realist intuitions). The latter is my approach here. I begin with the interconnected ideas of “realism about social objects” andrealism about social sciences”. I am not only interested in what comes after ‘about’; I am also interested in what goes before it, namely ‘realism’ itself. Here is one premise of the discussion: the issue of proper forms of realism for dealing with specific problems is an issue to be settled at least partly a posteriori. Here is the problem for which a solution will be sought: what constraints, if any, does what we know about the social sciences and society (as depicted by the social sciences and our commonsense views) impose upon the forms of realism that can justifiably be adopted about them? This paper suggests to offer only some partial insight into this issue. It seeks to do so indirectly by discussing Putnam’s characterizations of internal and metaphysical realism. The focus will be on two aspects of Putnam’s realisms: [1] the role and kinds of independence and dependence (in relation to the human mind and related things); and [2] the possibility of error. It is shown that the nature of social objects has implications concerning the appropriate constraints on [1] and [2], and thereby on the kinds of realism that are available to social scientists.

Much of biological and economic theorizing takes place by modeling, the indirect study of real-world phenomena by the construction and examination of models. Books and articles about biological and economic theory are often books and articles about models, many of which are highly idealized and chosen for their explanatory power and analytical convenience rather than for their fit with known data sets. Philosophers of science have recognized these facts and have developed literatures about the nature of models, modeling, idealization, as well as testing of models and explanation by models, for both biology and economics. The impetus for this special issue came from our recognition that there is remarkably little overlap between the “modeling in biology” and “modeling in economics” literatures, despite many of the same themes appearing in these literatures.

My philosophical intuitions are those of a scientific realist. In addition to being realist in its philosophical outlook, my philosophy of economics also aspires to be realistic in the sense of being descriptively adequate, or at least normatively non-utopian, about economics as a scientific discipline. The special challenge my philosophy of economics must meet is to provide a scientific realist account that is realistic of a discipline that deals with a complex subject matter and operates with highly unrealistic models. Unrealisticness in economic models must not constitute an obstacle to realism about those models. What follows is a selective and somewhat abstract summary of my thinking about economics, outlined from two perspectives: first historical and autobiographical, then systematic and comparative. The first angle helps understand motives and trajectories of ideas against their backgrounds in intellectual history. My story turns out to have both unique and generalizable aspects. The second approach outlines some of the key concepts and arguments as well as their interrelations in my philosophy of economics, with occasional comparisons to other views. More space will be devoted to this second perspective than to the first.

Milton Friedman's 1953 essay 'The methodology of positive economics' remains the most cited, influential, and controversial piece of methodological writing in twentieth-century economics. Since its appearance, the essay has shaped the image of economics as a scientific discipline, both within and outside of the academy. At the same time, there has been an ongoing controversy over the proper interpretation and normative evaluation of the essay. Perceptions have been sharply divided, with some viewing economics as a scientific success thanks to its adherence to Friedman's principles, others taking it as a failure for the same reason. In this book, a team of world-renowned experts in the methodology of economics cast new light on Friedman's methodological arguments and practices from a variety of perspectives. It provides the 21st century reader with an invaluable assessment of the impact and contemporary significance of Friedman's seminal work.

No realist project in and about economics is close to completion. There are many open issues that remain to be addressed and resolved. Simon Deichsel (2011) has written a healthy challenge that should offer some useful inspiration to anyone interested in assessing and perhaps contributing to the realist projects. He argues against realism and in support of some sort of anti-realism. My response first deals with some conceptual issues regarding the very ideas of realism and anti-realism. I will then discuss the role of pragmatics in relation to truth. Finally, I will address the issue of justifying realism — Deichsel’s title, after all, suggests his challenge is directed against what he calls the pragmatic justification of realism. My remarks are both brief and selective.

If models can be true, where is their truth located? Giere (Explaining science, University of Chicago Press, Chicago, 1998) has suggested an account of theoretical models on which models themselves are not truth-valued. The paper suggests modifying Giere’s account without going all the way to purely pragmatic conceptions of truth—while giving pragmatics a prominent role in modeling and truth-acquisition. The strategy of the paper is to ask: if I want to relocate truth inside models, how do I get it, what else do I need to accept and reject? In particular, what ideas about model and truth do I need? The case used as an illustration is the world’s first economic model, that of von Thünen (1826/1842) on agricultural land use in the highly idealized Isolated State.

Many participants in the debate over the current state and recent developments of economics make claims that are unrefined, simplistic, often exaggerated. This is understandable: the stakes are high, the issues trigger emotional responses, and few participants are motivated or equipped to seek more nuanced analyses. To assert, or to deny, that economics as a scientific discipline or a particular part of it (such as a model) is about reality – or refers to reality, represents it, is true about it, or is truthlike about it – is to make a very complex and highly ambiguous claim. 1 The disputants often make claims that have parallels in the philosophical controversy between scientific realists and their opponents, or at any rate those claims can be partly analyzed in terms of some of the arguments presented in this philosophical controversy. The question addressed here is whether realism about economics is a viable position. The argument proceeds by way of refuting a number of arguments against realism about economics. I suggest a genuine controversy over the factuality of any particular strand or piece of economics requires realism as a general interpretation of economics – or at any rate requires debunking the anti-realist arguments discussed below. “The issue of realism” as most economists would recognize it, is not exactly the issue of realism as philosophers recognize it. “The issue of realism” in economics is about realisticness as a property of theories , while (part of) the issue of realism in philosophy is about realism as a theory of theories . But some parts of the issue of realisticness (such as those related to reference and truth) in economics can be translated into aspects of the issue of realism as a theory of theories. Thus there is also an issue of realism (with no quotation marks) in economics. It is this issue of realism that has to be settled as a prerequisite for critical assessments of important forms of realisticness of economic theories.

The paper seeks to offer [1] an explication of a concept of economics imperialism, focusing on its epistemic aspects; and [2] criteria for its normative assessment. In regard to [1], the defining notion is that of explanatory unification across disciplinary boundaries. As to [2], three kinds of constraints are proposed. An ontological constraint requires an increased degree of ontological unification in contrast to mere derivational unification. An axiological constraint derives from variation in the perceived relative significance of the facts explained. An epistemological constraint requires strong fallibilism acknowledging a particularly severe epistemic uncertainty and proscribing against over-confident arrogance.

USKALI MÄKI (Helsinki, 1951) is a philosopher of science and a social scientist, and one of the forerunners of the strong wave of research on the philosophy and methodology of economics that has been expanding during the last three decades. His research interests and academic contributions cover many topics in the philosophy of economics, such as realism and realisticness, idealisation, scientific modelling, causation, explanation, rhetoric, the sociology and economics of economics, and the foundations of new institutional and Austrian economics. He is a coeditor of The handbook of economic methodology (1998); Economics and methodology: crossing boundaries (1998); Rationality, institutions and economic methodology (1993). And the editor of two compilations of essays that have become highly influential to the shaping of the field: The economic world view: studies in the ontology of economics (2001), and Fact and fiction in economics: realism, models, and social construction (2002).