The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • Mary S. Morgan
Reference work entry


Philosophical analysis of the historical development of modelling, as well as the programmatic statements of the founders of modelling, support three different functions for modelling: for fitting theories to the world; for theorizing; and as instruments of investigation. Rather than versions of data or of theories, models can be understood as complex objects constructed out of many resources that defy simple description. These accounts also suggest a kinship between the ways models work in economics and various kinds of experiment, found most obviously in simulation but equally salient in older traditions of mathematical and statistical modelling.


Business cycles Caricatures Correspondence rules Cowles Commission Design of experiments Econometrics Economic man Edgeworth, F.Y Experiments and econometrics Fisher, I Friedman, M Frisch, R.A.K Haavelmo, T Ideal type Instrumentalism Idealization Inference Koopmans. T.C Laboratory experiments in economics Lucas, R Macroeconometric models Matching Mathematical economics Mathematics and economics Metaphor Methodology of economics Mill, J.S Marshall, A Model design Models Model construction Model functions Model experiments National Bureau of Economic Research Pigou, A.C Prediction Probability Quesnay, F Random shock models Shubik, M Simulation Slutsky, E Sutton, J Statistical inference Statistics and economics Tableau économique Tendency laws Testing Tinbergen, J Weber, M 

JEL Classification

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Mary S. Morgan
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