The Inexact and Separate Science of Economics

A comprehensive overview of theoretical economics, its distinctive modeling strategy, applicability, and empirical support.

Is economics a science? What distinguishes it from other sciences, both natural and social? Does it have a distinctive method? Can its models of perfect rationality and perfect competition help us to understand real market economies and to help them to function better? This book offers answers to these questions and more.Is economics a science? What distinguishes it from other sciences, both natural and social? Like many of the natural sciences, its theories are mathematically complex. Yet, like the social sciences, its 'laws' are largely everyday generalizations. Can such generalizations, which are far from universal truths, constitute a science? Does economics have a distinctive method? The first edition answered these and other questions about the scientific status of economics and its underlying methodology. In this fully updated new edition, Dan Hausman reflects on developments in both economics and the philosophy of economics over the last thirty years. It includes a new chapter on the methodology of macroeconomics, an updated discussion on the use of models, and new discussions causal inference and behavioural economics and their implications for theory appraisal. It is the perfect choice for a new generation of students studying the methodology of modern economics.