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Quantophrenia? – Some remarks on the possibilities and constraints of mathematical formalization in economic and social sciences
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2010-12-13
https://doi.org/10.21845/comp/2010/2/1
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Musto, I. (2010). Quantophrenia? – Some remarks on the possibilities and constraints of mathematical formalization in economic and social sciences. Competitio, 9(2), 5-18. https://doi.org/10.21845/comp/2010/2/1
Abstract
This article deals with some aspects of the constraints to the formal mathematization of economic theories and models. It points out that complex, dynamic and open systems dispose of a memory so that past events, statements or beliefs, even if they have turned out to be wrong or untrue, exert a potentially significant influence on the present state of issues, so they cannot be completely substracted from models representing reality. Reference is also made to the fact that in such complex, evolutionary systems strong interdependences and interactions exist between the subject and the object of scientific inquiry since economic actors strongly influence each other and, consequently, aggregate reality through their mutual actions and expectations. Furthermore, it is argued that the comparability of findings is highly dependent on the identity or dissimilarity of the initial conditions of the objects of economic research. The article does not take a position either for or against mathematical modelling; it limits itself to comments on some of the conditions of meaningful formalization.
JEL classification: A1, B10, B41, C10
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