Weaving Actuarial Stories

Given that actuaries are using (informal) economic theories in their work (to build useful databases, to support the implementation process of proposed policies, etc.), it is worthwhile to understand the way these (informal) theories function and to evaluate their quality. We will construct a view of economic thinking that shows that economic theories fundamentally function like stories, like narratives. With that view in hand, we will then be able to highlight common mistakes in actuarial work as well as propose alternate views for the future work of actuaries.

Keywords: Credible Worlds, Imitation of an Action, Philosophy of Science, Epistemology of Economics, Narrative Theory.