How does Scientific Realism relate to the philosophy of economics?

Scientific realism is a philosophical position that asserts the existence of an external reality that is independent of our perceptions and theories, and that scientific theories aim to provide accurate descriptions and explanations of this reality. In the context of the philosophy of economics, scientific realism plays a significant role in shaping the understanding and development of economic theories.

Scientific realism in economics emphasizes the importance of empirical evidence and the use of scientific methods to study economic phenomena. It argues that economic theories should be grounded in observable facts and should strive to accurately represent the underlying economic reality. This perspective rejects the idea that economic theories are mere social constructions or subjective interpretations of reality.

Scientific realism in economics also highlights the need for theories to be testable and falsifiable. It encourages economists to formulate hypotheses that can be empirically tested and potentially disproven. This approach promotes a scientific mindset in economics, where theories are constantly refined and updated based on new evidence and observations.

Furthermore, scientific realism in economics acknowledges the existence of unobservable entities and processes that play a role in economic phenomena. While these unobservable entities, such as preferences or market forces, cannot be directly observed, scientific realists argue that they can be inferred from observable data and their effects can be measured and analyzed.

Overall, scientific realism in the philosophy of economics provides a framework for economists to approach their discipline as a scientific endeavor. It emphasizes the importance of empirical evidence, testability, and the pursuit of accurate representations of economic reality. By adopting a scientific realist perspective, economists aim to develop theories that are grounded in evidence and have practical applications in understanding and addressing economic issues.