The Enduring Relevance of the Model Platonism Critique for Economics and Public Policy

Abstract

The article briefly introduces Hans Albert and the basic elements of his critique of neoclassical economics as a form of "model Platonism". The two most important elements of his general methodological critique of economics — namely the institutional vacuum inherent in much economic modelling and its unrealistic assumptions about behaviour — are introduced. It is argued that these specific critiques have been taken up with varying degrees of success in areas of economic research such as institutional economics and in the behavioural and experimental research programmes. However, the fundamental methodological gist of his critique remains as pertinent to mainstream economics as it was when originally formulated. The influence of "model Platonic" thinking remains pervasive in academia and also in public policy.

Keywords: model Platonism, economic methodology, neoclassical economics, institutional economics, bounded rationality, economic crisis, failure of economic discipline

JEL Classification: A11, B4, K21