instrumentalism and operationalism
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by
Steven
N.
Durlauf
and
Lawrence
E.
Blume
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Abstract
Instrumentalism and Operationalism are the methodological doctrines associated respectively with Milton Friedman and Paul Samuelson. Each has a long philosophical history. Instrumentalism was the 18th-century doctrine created to deal with the Newton mechanics; Operationalism was the early 20th-century doctrine created to deal with Einstein’ general relativity. With Instrumentalism one can say that theories do not have to be true, just useful – as Friedman argued in 1953. With Operationalism one is required to express theories only in terms of observable and measurable variables. Samuelson's early work was designed to demonstrate how theory can be made operational and thus potentially refutable.
Keywords
assumptions; Austrian economics; behaviouralism; Berkeley, Bishop G.; Bridgman, P.; consumer's demand curve; Einstein, A.; Friedman, M.; Instrumentalism; mathematics and economics; methodology of economics; neoclassical economics; Newton, I.; Operationalism; operationally meaningful; perfect competition; positive economics; positivism; psychology; revealed preference theory; Samuelson, P. A.; Slutsky equation; tautologies; utility functions; verificationism; weak axiom of revealed preference
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How to cite this article
Boland, Lawrence A. "instrumentalism and operationalism." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 21 May 2013 <http://www.dictionaryofeconomics.com/article?id=pde2008_I000265> doi:10.1057/9780230226203.0811

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