Is Economics an Empirical Science? If not, can it become one?
Today’s mainstream economics, embodied in Dynamic Stochastic General Equilibrium (DSGE) models, cannot be considered an empirical science in the modern sense of the term: it is not based on empirical data, is not descriptive of the real-world economy, and has little forecasting power. In this paper,...
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| Format: | Article |
| Language: | English |
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Frontiers Media S.A.
2015-07-01
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| Series: | Frontiers in Applied Mathematics and Statistics |
| Subjects: | |
| Online Access: | http://journal.frontiersin.org/Journal/10.3389/fams.2015.00007/full |
| _version_ | 1818306731986386944 |
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| author | Sergio Mario Focardi Sergio Mario Focardi |
| author_facet | Sergio Mario Focardi Sergio Mario Focardi |
| author_sort | Sergio Mario Focardi |
| collection | DOAJ |
| description | Today’s mainstream economics, embodied in Dynamic Stochastic General Equilibrium (DSGE) models, cannot be considered an empirical science in the modern sense of the term: it is not based on empirical data, is not descriptive of the real-world economy, and has little forecasting power. In this paper, I begin with a review of the weaknesses of neoclassical economic theory and argue for a truly scientific theory based on data, the sine qua non of bringing economics into the realm of an empirical science. But I suggest that, before embarking on this endeavor, we first need to analyze the epistemological problems of economics to understand what research questions we can reasonably ask our theory to address.. I then discuss new approaches which hold the promise of bringing economics closer to being an empirical science. Among the approaches discussed are the study of economies as complex systems, econometrics and econophysics, artificial economics made up of multiple interacting agents as well as attempts being made inside present main stream theory to more closely align the theory with the real world |
| first_indexed | 2024-12-13T06:47:09Z |
| format | Article |
| id | doaj.art-19b52a8faa424299ae84736f29796ae1 |
| institution | Directory Open Access Journal |
| issn | 2297-4687 |
| language | English |
| last_indexed | 2024-12-13T06:47:09Z |
| publishDate | 2015-07-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Applied Mathematics and Statistics |
| spelling | doaj.art-19b52a8faa424299ae84736f29796ae12022-12-21T23:56:15ZengFrontiers Media S.A.Frontiers in Applied Mathematics and Statistics2297-46872015-07-01110.3389/fams.2015.00007146975Is Economics an Empirical Science? If not, can it become one?Sergio Mario Focardi0Sergio Mario Focardi1Stony Brook UniversityÉcole Supérieure d’Ingénieurs Léonard de VinciToday’s mainstream economics, embodied in Dynamic Stochastic General Equilibrium (DSGE) models, cannot be considered an empirical science in the modern sense of the term: it is not based on empirical data, is not descriptive of the real-world economy, and has little forecasting power. In this paper, I begin with a review of the weaknesses of neoclassical economic theory and argue for a truly scientific theory based on data, the sine qua non of bringing economics into the realm of an empirical science. But I suggest that, before embarking on this endeavor, we first need to analyze the epistemological problems of economics to understand what research questions we can reasonably ask our theory to address.. I then discuss new approaches which hold the promise of bringing economics closer to being an empirical science. Among the approaches discussed are the study of economies as complex systems, econometrics and econophysics, artificial economics made up of multiple interacting agents as well as attempts being made inside present main stream theory to more closely align the theory with the real worldhttp://journal.frontiersin.org/Journal/10.3389/fams.2015.00007/fullEconomicscomplex systemseconophysicsempirical scienceFinancial crisesepistemology of economics |
| spellingShingle | Sergio Mario Focardi Sergio Mario Focardi Is Economics an Empirical Science? If not, can it become one? Frontiers in Applied Mathematics and Statistics Economics complex systems econophysics empirical science Financial crises epistemology of economics |
| title | Is Economics an Empirical Science? If not, can it become one? |
| title_full | Is Economics an Empirical Science? If not, can it become one? |
| title_fullStr | Is Economics an Empirical Science? If not, can it become one? |
| title_full_unstemmed | Is Economics an Empirical Science? If not, can it become one? |
| title_short | Is Economics an Empirical Science? If not, can it become one? |
| title_sort | is economics an empirical science if not can it become one |
| topic | Economics complex systems econophysics empirical science Financial crises epistemology of economics |
| url | http://journal.frontiersin.org/Journal/10.3389/fams.2015.00007/full |
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