Pragmatism, Perspectival Realism, and Econometrics

Abstract

Econometricians tend to hold simultaneously two views in tension with each other: an apparent anti-realism that holds that all models are false and at best useful constructs or approximations to true models and an apparent realism that models are to be judged by their success at capturing an independent reality. This tension is resolved starting from Ronald Giere’s perspectival realism. Perspectival realism can itself be seen as a species of pragmatism, as that term is understood by its originator, Charles S. Peirce.

Keywords: econometrics, realism, perspectival realism, perspectivism, pragmatism, models, Ronald Giere, Charles S. Peirce

JEL Classification: B40, B41, C10, C18