Model-Building In Social Science (Economics)

Formal modeling is the basis of science and engineering.
Use of formal models is why "social science" is science, as much as physics or chemistry. The difference between "hard" science and "soft" science is precision of measurement.
Measurement in social science is not very precise. In the United State, we know that the Census results are wrong. Cf. "Statistical Discrepancy." in national accounts.
- Formal models in social science must account for measurement problems or be inherently inaccurate. We use statistics and econometrics for this.
- The actors in social situations use models too! Furthermore, the modeling is recursive: my model of you has a model of me having a model of you ... inside it.
- The recursive models have to deal with measurement inaccuracy, too.