The Diversity of Models As a Means to Better Explanations in Economics

Abstract

In Economics Rules, Dani Rodrik (2015) argues that what makes economics powerful despite the limitations of each and every model is its diversity of models. Rodrik suggests that the diversity of models in economics improves its explanatory capacities, but he does not fully explain how. I offer a clearer picture of how models relate to explanations of particular economic facts or events, and suggest that diversity of models is a means to better economic explanations.

Keywords: theoretical models, explanation, diversity of models, how-possibly reasoning, functions of models

JEL Classification: B40, B41