Skip to main content Accessibility help
×
Home
Hostname: page-component-684899dbb8-gblv7 Total loading time: 0.276 Render date: 2022-05-18T13:43:28.247Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "useRatesEcommerce": false, "useNewApi": true }

11 - Making economics credible

Published online by Cambridge University Press:  05 January 2013

Truman F. Bewley
Affiliation:
Yale University, Connecticut
Get access

Summary

On any given policy issue, one is likely to be able to find economists offering professional opinions on all sides, many of them with quantitative models to support their opinions. Though our discipline is in places as quantitative and mathematically deep as many of the physical sciences, we do not ordinarily resolve the important policy issues even with the most difficult and intriguing of our mathematical tools. Yet economists often speak as if their models and conclusions were imprecise only in the same sense that a structural engineer's finite-element model of a beam is imprecise - the model is a finite-dimensional approximation to an infinite-dimensional ideal model, and the ideal model itself ignores certain random imperfections in the beam. The public and noneconomist users of economic advice understand that the uncertainty about an economic model is not so straightforward and therefore rightly take the professional opinions of economists who pretend otherwise with many grains of salt.

The problem is not simply that our best models are too sophisticated for the layman to understand. David Freedman (1985), a prominent statistician, has recently examined in a series of papers some actual applications of the statistical method in economics and emerged with broad and scathing criticisms. Whereas there are effective counterarguments to some of Freedman’s criticisms, they cannot be made within the classical statistical framework of most econometrics textbooks or within the profession’s conventional rhetorical style of presenting controversial opinions in the guise of assumptions supposedly drawn from “theory.” Quantitatively oriented scientists outside the social sciences who make a serious effort to understand economic research will often have Freedman's reaction.

Type
Chapter
Information
Advances in Econometrics
Fifth World Congress
, pp. 49 - 60
Publisher: Cambridge University Press
Print publication year: 1987

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)
6
Cited by

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×