Econometrica Vol. 74 No. 4 2006
Dilemmas of an Economic Theorist
Abstract
What on earth are economic theorists like me trying to accomplish? This paper discusses four dilemmas encountered by an economic theorist: The dilemma of absurd conclusions: Should we abandon a model if it produces absurd conclusions or should we regard a model as a very limited set of assumptions that will inevitably fail in some contexts? The dilemma of responding to evidence: Should our models be judged according to experimental results? The dilemma of modelless regularities: Should models provide the hypothesis for testing or are they simply exercises in logic that have no use in identifying regularities? The dilemma of relevance: Do we have the right to offer advice or to make statements that are intended to influence the real world?
- DOI
- 10.1111/j.1468-0262.2006.00689.x
- Volume
- 74
- Issue
- 4
- Pages
- 865-883
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref