Trygve Haavelmo's methodological manifesto "The Probability Approach in Econometrics" not only laid down the paradigm for the research pursued at the Cowles Commission, but also sets out a strategy for measurement outside the laboratory. His conceptualization of "passive observation" is still...

There is a long standing tradition that presents economic activity in terms of fluids flowing around the economy. This idea lies behind a small but influential tradition of hydraulic modelling in economics. However, there is space between using the metaphor of money (or goods) flowing between a...

Generally, simulations are carried out to answer specific questions. The assessment of the reliability of an answer depends on the kind of question investigated. The answer to a 'why' question is an explanation. The premises of an explanation have to include invariant relationships, and thus the...

The Representational Theory of Measurement conceives measurement as establishing homomorphisms from empirical relational structures into numerical relation structures, called models. Models function as measuring instruments by transferring observations of an economic system into quantitative...

The metrology literature neglects a strong empirical measurement tradition in economics, which is different from the traditions as accounted for by the formalist representational theory of measurement. This empirical tradition comes closest to Mari's characterization of measurement in which he...

Halfway through the 1930s, a new practice was born that was based on instruments called 'models'. This practice is characterized by building and applying empirical models, i.e. representations of (aspects of) the world. The aim of this chapter is to explore these kinds of representations

A long-standing tradition presents economic activity in terms of the flow of fluids. This metaphor lies behind a small but influential practice of hydraulic modelling in economics. Yet turning the metaphor into a three-dimensional hydraulic model of the economic system entails making numerous...

In the social sciences we hardly can create laboratory conditions, we only can try to find out which kinds of experiments Nature has carried out. Knowledge about Nature’s designs can be used to infer conditions for reliable predictions. This problem was explicitly dealt with in Haavelmo’s...

The aim of this chapter is to explore the development of Herbert Simon's approach and his methodology in macroeconomics. This development is influenced by a simultaneous development in computer science into both model building and tests

Since the beginning of the nineteenth century, a large number of price index number formulae have been developed, mostly named after their inventors, such as the Paasche and Layspeyres indexes. Parallel with the invention of new index formulae, criteria were developed for distinguishing between...