Factual Annotation On Economic Model

Fact or fiction? Is economics is a respectful, factual and useful subject or an intellective game that the economists cook up? The problem is serious divergent. It is a very embarrassing problem in view of science and politics. A more comprehensive and careful method is used to solve that. The meticulous reasoning is based on member analysis. But few economists are trained like that. In fact, once someone does some careful observing, he will know that all kinds of embodiments of fact and fiction. He will also know both are the essential part of the research on society science.In the first part, economic model in the field of philosophy is researched and the building process and method are worked over. The development of scientific philosophic model is traced, from disregard to popular, from the explanation of form to model function, from the model action in science to in human recognition. The transformation begins with the change of interest barycenter and intendment. So scientific model is regard as not only the tool of recognition but also the important resource of the scientific research. Whether economic model reflects exactly the phenomenon and how the function of economic model reflects all phenomenons are the scientific philosophic problems hided in economic model.In the second part, the fact and fiction of economics causes the debate between the realism and non-realism of economic model. Both standpoints are pointed out in this part. The excellent point in the part is that the relation between economics and realism is proved by disproving the standpoints put forward by some people who insist economics was factual. Realism is the way to non-realism by disproving non-realism based on some different assumptions.In the third part, two excellent models are quoted, Akerlof George's lemon market and Schelling Thomas's chessboard model. Both models tell us what important facts in real world and how to illuminate. The world that can be trusted but is different to fact is described by models. So we believe that we can reason from the factual world to the model world.In the fourth part, economic model and fact are deeply researched by factually vindicating for economy model, which is the important part in this paper. Economics methodology mostly emphasizes the relation between economic model and fact. First, how the model helps us describe economic world by telling stories is analyzed. Second, it is necessary to understand these informal methods if we want to understand the relation between model and fact and to respond to some criticism, while economics is among formal mechanical logic and non-scientific non-ration. But it is a long way to really understand how the informal and scientific standpoint works.