Saturday, November 29, 2008

Larry Summers As Dissenting Economist

"... formal econometric work, where elaborate technique is used to apply theory to data or isolate the direction of causal relationships when they are not obvious a priori, virtually always fails. The only empirical research that has contributed to thinking about substantive issues and the development of economics is pragmatic empirical work, based on methodological principles directly opposed to those that have become fashionable in recent years." - Lawrence H. Summers (1991) "The Scientific Illusion in Empirical Macroeconomics", Scandinavian Journal of Economics, V. 93, N. 2: 129-148

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