Economic Models in Political Context: Translating Abstraction into Institutional Choice

The article characterizes abstraction as a fundamental methodological principle of theoretical modeling and examines the multi-variant choices in political and institutional decision-making. The aim of the research is to analyze the internal logic and structure of economic science, from abstraction to theoretical modeling and subsequently to their institutional application, to identify the limitations of economic theories, and to evaluate the interdependence of abstraction, modeling, and institutional practice. The study is grounded in the conceptualization of these three fundamental levels of economic thought and the analysis of the relationships among them.Accordingly, the research presents an integrated theoretical framework that combines the philosophical foundations of economic science, the problematics of theoretical pluralism, the analysis of institutional economics, and the practice of economic policy formulation. Methodologically, the authors argue that the transformation of economic theory into practice, and the transition from theory to political decision-making, is a complex process involving institutional mediation, normative choices, historical-political context, and subjective judgment..The article emphasizes that economic models do not represent absolute truths but rather analytical instruments whose application requires consideration of institutional context, historical experience, and local specificity— particularly when making governance decisions. In this way, it explains the natural character of the differences, inconsistencies, and gaps between theory and the implementation of real economic policy. The coexistence of alternative theoretical approaches is therefore interpreted not as a weakness but as a necessary expression of the complex nature of economic reality. Furthermore, economic models are understood as mediating instruments that connect abstract theoretical knowledge with concrete institutional decisions, theoretical rationalism with political flexibility, and economic logic with social dynamics.