Theories and Models in Economics

Hans Lind, Professor of Real Estate Economics, formerly at the Department of Real Estate and Construction Management, KTH Royal institute of Technology, Stockholm, Sweden

‘Hans Lind’s Theories and Models in Economics is a compelling contribution to the philosophy and methodology of economics, blending empirical precision with theoretical reflection. By systematically analysing decades of Nobel Prize motivations and 200 full-length articles from the American Economic Review, Lind provides a robust empirical foundation for his critique of the field. His methodological rigour enhances the credibility of his arguments, offering an accessible yet thorough examination of how economics operates as a discipline. The book’s balanced critique is another notable strength: while Lind challenges the over-reliance on abstract mathematical modelling, he also recognises its importance in ensuring logical consistency and advancing the theoretical framework of economics. This perspective allows the book to remain constructive, offering insights for economists seeking to strike a pragmatic balance between theoretical elegance and empirical relevance. The practical relevance of the book extends beyond academic debates, providing valuable implications for how economics is taught and practised. Lind’s call for a reorientation toward empirical studies and interdisciplinary approaches resonates with the discipline’s current challenges. His reflections on the evolving methodological landscape—marked by the rise of experimental and behavioural economics—are timely, encouraging economists to adapt their tools and frameworks to reflect the complexities of practice better.’

• Contents:1 Introduction and background to the empirical approach tomethodology2 What characterizes the object that Economics studies?3 What economists do: (1) path-breaking contributions4 What economists do: (2) contributions in “normal science”5 How economics develops over time: Kuhn versus Laudan6 On theory in economics7 On models in economics8 How to make an idea credible: a case study of Krugman’sNew Trade Theory9 Summary and implicationsAppendix: Information about the empirical studiesReferences