Knowledge that Transforms

THE econometrician is often hampered by the absence of quantitative information, in spite of his efforts to restate problems of economic theory in such terms as will fit them for verification by actually existing statistics. The kind and amount of statistics available are thus very definitely limiting factors in some econometric works. But it may also be that the existing statistics invite theoretical enquiry, so that statistical information may occasionally be considered as a factor making for extension and progress of econometrics. For instance, whereas, in the field of cost theory, the state of statistical information is primarily a check on the progress of econometric studies, family budget statistics rather seem to be a branch of information which is full of promise. Dealing with some of the more terre a terre questions concerning family budget enquiries, an attempt will be made in the following to consider some of the many possibilities which this field of statistics seems to offer to the econometrician, provided he is patient enough to consider his assumptions carefully.