[OPE-L] Richard Baldwin on the new "empirical economics"

From: Jurriaan Bendien (adsl675281@TISCALI.NL)
Date: Fri Sep 07 2007 - 17:38:34 EDT

"On the empirical side, the emergence of enormous new data sets and powerful
statistical tools have greatly advanced our understanding of exactly how
real-world markets work as well as how people, groups and firms react to
incentives. (...) The new tools don't mean that we now have all the answers.
We don't. We still don't know, for example, how economic development really
works, or what determines productivity growth. But the new tools mean that
we no longer are forced to rely on theory with crude foundations, e.g. firms
as profit functions, consumers as utility functions...

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