A Critique of Statistical Modelling from a Critical Realist Perspective

Most published research in information systems is underpinned by a positivist or empiricist philosophy. This generally involves the collection of quantitative data and its subsequent analysis using some form of statistical modelling, often multivariate such as regression. Alternative paradigms, such as interpretivism, often critique such statistical analysis on the grounds that the social world is inherently different to the material world. However, this often leads to a strongly anti-realist position which denies the existence of any forms of external social structures. The purpose of this paper is also to put forward a critique of traditional statistical modelling and analysis but from a different direction - critical realism. This maintains the ontological reality of social systems whilst recognising the cultural and historical epistemological limits to our knowledge of them

Helping Business Schools Engage with Real Problems: The Contribution of Critical Realism and Systems Thinking

The world faces major problems, not least climate change and the financial crisis, and business schools have been criticised for their failure to help address these issues and, in the case of the financial meltdown, for being causally implicated in it. In this paper we begin by describing the extent of what has been called the rigour/relevance debate. We then diagnose the nature of the problem in terms of historical, structural and contextual mechanisms that initiated and now sustain an inability of business schools to engage with real-world issues. We then propose a combination of measures, which mutually reinforce each other, that are necessary to break into this vicious circle – critical realism as an underpinning philosophy that supports and embodies the next points; holism and transdisciplinarity; multimethodology (mixed-methods research); and a critical and ethical-committed stance. OR and management science have much to contribute in terms of both powerful analytical methods and problem structuring methods

"Critical Realism and the Political Economy of the Euro"

This paper is concerned with two issues. First, it discusses some of the main problems and inferences the methodological approach of critical realism raises for empirical work in economics, while considering an approach adopted to try to overcome these problems. Second, it provides a concrete illustration of these arguments, with reference to our recent research project analyzing the single European currency. It is argued that critical realism provides a method that is partially appropriate to concrete levels of analysis, as illustrated by the attempt to explain the falling value of the euro. It is concluded that the critical realist method is inappropriate to the most abstract and fundamental levels of theory.

Machine Learning and the Future of Realism

The preceding three decades have seen the emergence, rise, and proliferation of machine learning (ML). From half-recognised beginnings in perceptrons, neural nets, and decision trees, algorithms that extract correlations (that is, patterns) from a set of data points have broken free from their origin in computational cognition to embrace all forms of problem solving, from voice recognition to medical diagnosis to automated scientific research and driverless cars, and it is now widely opined that the real industrial revolution lies less in mobile phone and similar than in the maturation and universal application of ML. Among the consequences just might be the triumph of anti-realism over realism

Critical Realism in Economics and Open-Systems Ontology: A Critique

This paper examines the treatment of ontology offered by Critical Realism. Three main criticisms are made of the Critical Realist treatment of open systems. It is argued that Critical Realism, particularly in the project in economics emanating from Cambridge, UK, tends to define systems in terms of events. This is shown to be problematic. The exemplar of a closed system provided by Critical Realism of the solar system is shown to be flawed in that it is not closed according to the closure conditions identified by Critical Realism. Second, the negativity of the definitions adopted is problematic for heterodox traditions attempting to build positive programs. The dualism of the definitions is also inconsistent with Dow’s approach. This has ramifications for the coherence of Post Keynesianism. Third, the definitions tend to polarize open and closed systems and ignore the degrees of openness evident in reality. This polarization of systems leads to polarized methodology and unsustainable arguments to reject so-called closed-systems methods.open systems, closed systems, Critical Realism, Post-Keynesianism, dualism

Empirical Validation of Agent Based Models: A Critical Survey

This paper addresses the problem of finding the appropriate method for conducting empirical validation in agent-based (AB) models, which is often regarded as the Achilles’ heel of the AB approach to economic modelling. The paper has two objectives. First, to identify key issues facing AB economists engaged in empirical validation. Second, to critically appraise the extent to which alternative approaches deal with these issues. We identify a first set of issues that are common to both AB and neoclassical modellers and a second set of issues which are specific to AB modellers. This second set of issues is captured in a novel taxonomy, which takes into consideration the nature of the object under study, the goal of the analysis, the nature of the modelling assumptions, and the methodology of the analysis. Having identified the nature and causes of heterogeneity in empirical validation, we examine three important approaches to validation that have been developed in AB economics: indirect calibration, the Werker-Brenner approach, and the history-friendly approach. We also discuss a set of open questions within empirical validation. These include the trade-off between empirical support and tractability of findings, the issue of over-parameterisation, unconditional objects, counterfactuals, and the non-neutrality of data.Empirical validation, agent-based models, calibration, history-friendly modelling

The limits of ontological critique: from judgmental rationality to justification

The Cambridge Social Ontology (CSO) programme’s inability to generate a meaningful dialogue with mainstream economics is difficult to understand by mere reference to judgmental rationality and without reference to CSO’s ideological configuration. Our paper uses an économie des conventions framework to draw systematic comparisons between CSO’s ideological configuration and the ideological configurations of mainstream economic theories and practice. The resulting analysis helps us to understand not only why CSO generated little response from the mainstream, but also how CSO might renew its critique in ways that might be more likely to produce a response

Economics, realism and reality: a comparison of Mäki and Lawson

There is presently considerable debate about the application and interpretation of realism in economics. Interest in this area of the philosophy and methodology of economics has intensified over the last twenty years, especially due to the substantial contributions by Uskali Mäki and Tony Lawson respectively. Although their work falls under the same banner of realism in economics, their projects differ significantly in many important respects. This review tries to clarify the contrasting approaches of each author and explains the main reasons for the differences between them. The emphasis is on clarification of their respective positions rather than a comprehensive critical evaluation as such.

Resolving the Quantitative-Qualitative Dilemma: A Critical Realist Approach

The philosophical issues underpinning the quantitative–qualitative divide in educational research are examined. Three types of argument which support a resolution are considered: pragmatism, false duality and warranty through triangulation. In addition a number of proposed strategies—alignment, sequencing, translation and triangulation—are critically assessed. The article concludes by suggesting that many of these ways of reconciling quantitative and qualitative methods and approaches are still deficient in relation to the development of an overarching and correct view of ontological and epistemological matters, and that critical realism offers a more coherent solution, where the reconciliation occurs at the ontological level

Why is economic geography not an evolutionary science? Towards an evolutionary economic geography

The paper explains the commonalities and differences between neoclassical, institutional and evolutionary approaches that have been influential in economic geography during the last couple of decades. For all three approaches, we argue that they are in agreement in some respects and in conflict in other respects. While explaining to what extent and in what ways the Evolutionary Economic Geography approach differs from the New Economic Geography and the Institutional Economic Geography, we can specify the value-added of economic geography as an evolutionary science.evolutionary economic geography, new economic geography, institutional economic geography