Tuesday, May 5, 2009

GrandMaster Flash of Economics

Here is an interesting article on the emerging battle between Theory based and Empirically based economics.... Check it out here I love all the DJ references... I originally found this post on metafilter.com

I think this is interesting discussion because it would seem that you would need to have a robust approach to this sort of thing where you hold theory and empirical measurement in high regard. It seems like the lack of moderation on either end is a bad idea. Theory without empirical validation = hand waving, Empirical validation without theoretic basis = overconfidence without causal interpretation. At the end of the day, as long as they can reconcile large scale economic behavior with base human behavior in aggregate I hope we will be on the right track. I think a good addition to this argument would be the article on the original Behavioral Economist, Adam Smith

If Merton is Grand Master Flash, then Adam Smith is Bach.

No comments: