The idea that there is something like an efficient market in scientific ideas (EMISI), supporting a ruling 'paradigm,' is very dangerous in the policy sciences. Even if we assume that scientists are individually pure truth-seekers, imperfections in scientific markets can produce non-epistemic (and epistemic) externalities (recall here, including criticism of a famous paper by Aumann). EMISI provides cover for 'The Everybody Did It' (TEDI) Syndrome (recall here). With Merel Lefevere, I have been exploring in what circumstances the presence of TEDI Syndrome is indicative of collective negligence (or a negative externalities). One possible consequence of our approach is that those scientists/institutions that interface with policy should seek out critics and critical alternatives to the existing paradigm. Jon Faust, an economist, sometimes acts as such an in-house critic at the United States Federal Reserve (the Fed) and the Riksbank. Two of his relatively non-technical papers (here and here) prompted this post.
Central Banks rely, in part, on models developed by academic economists to set monetary policy. Yet, Faust notes two problems in the way the intellectual supply-chain works: (i) there is almost no venue for "high-level conversation" about "academic work and its relation to actual practice." (53) (ii) State of the art models are often applied without full knowledge of all their possible consequences in the real world because these models models "have substantial areas of omission and coarse approximation" (55) In light of (i) and (ii), Faust's aim (iii) is to help central bankers and the modellers develop "a formal literature on best methods and practices for using materially flawed models in practical policymaking," (55) or "how to make the most responsible use in policymaking of what we now know." (60) My first reaction was, 'it is about time;' my second, more generous response was warmth in my philosophical heart that Faust is engaging in philosophy of scientific methodology and non-ideal regime/institution construction. His main idea is to adapt a kind of policy protocol from a literature that "goes under names like “human relevance of animal studies” and “interspecies extrapolation” (57) in the practice(s) of Toxicology.