Rethinking economics [electronic resource] : from analogies to the real world /
Birks, Stuart.author.
This brief responds to the criticism that mainstream economics is currently facing due to its heavy reliance on models and narrow range of quantitative research techniques. It takes a broader view, identifying issues that are also relevant for heterodox and pluralist approaches to economics. By acknowledging that the world of theory is not the same as the reality that we are trying to understand, the brief focuses on three paths that generally receive little attention. These are: from theory to the real world; from theory to empirical analysis; and from empirical results to policy application. Each path highlights a range of related concerns and qualifications, and the focus on these transitions provides a strong basis for critical evaluation of analyses and potentially more realistic results and recommendations. It also provides a framework for synthesizing information from alternative schools of thought and across disciplines. In addition, the importance of framing and rhetoric is demonstrated. The brief addresses philosophical and methodological issues using a clear, non-technical approach that can be easily understood by a non-specialist audience.
Description based upon print version of record.
Includes bibliographical references and index.
Preface -- Acknowledgements -- Chapter 1: The importance of rhetoric and framing -- 1.1: Three paths -- 1.2: Rhetoric and framing.-1.2.1: Rhetoric -- 1.2.2: Framing -- Chapter 2: Logical gaps: Path A - Theory to the real world -- 2.1: What is theory? -- 2.2.: Limits of theory -- 2.2.1: Perfect competition and counterfactuals -- 2.2.2: Accepting or rejecting a theory -- 2.2.3: Evidence consistent with theory -- 2.2.4: An additional consideration: the importance of groups -- 2.3: Conclusions -- Chapter 3: Logical gaps: Path B - Theory to empirical formulations -- 3.1: Data problems -- 3.1.1: Aggregation -- 3.1.2: Proxies -- 3.1.3: More on indices -- 3.2: Functional forms -- 3.2.1: Controlling for other factors -- 3.2.2: Causality -- 3.2.3: Structural stability -- 3.3: Conclusions -- Chapter 4: Logical gaps: Path C - Empirical results to the real world -- 4.1: Using statistics for policy -- 4.1.1: The research phase -- 4.1.2: The media phase -- 4.2: Consideration of the problems -- 4.2.1: Interpretation of statistical significance -- 4.2.2: Interpretation: why not change the relationship? -- 4.3: There are standard policy questions not covered by the econometrics -- 4.3.1: An example - TV watching and attention problems -- 4.3.2: Policy questions -- 4.4: An additional example: advantage and disadvantage -- 4.5: Conclusions -- Chapter 5: A way forward -- 5.1: An example: efficiency in economics research -- 5.2: A broader context -- 5.3: In a nutshell -- 5.4: And a final word -- Appendix -- References.
This brief responds to the criticism that mainstream economics is currently facing due to its heavy reliance on models and narrow range of quantitative research techniques. It takes a broader view, identifying issues that are also relevant for heterodox and pluralist approaches to economics. By acknowledging that the world of theory is not the same as the reality that we are trying to understand, the brief focuses on three paths that generally receive little attention. These are: from theory to the real world; from theory to empirical analysis; and from empirical results to policy application. Each path highlights a range of related concerns and qualifications, and the focus on these transitions provides a strong basis for critical evaluation of analyses and potentially more realistic results and recommendations. It also provides a framework for synthesizing information from alternative schools of thought and across disciplines. In addition, the importance of framing and rhetoric is demonstrated. The brief addresses philosophical and methodological issues using a clear, non-technical approach that can be easily understood by a non-specialist audience.
Economic theory.
Econometrics.
Economic policy.
Economic Theory/Quantitative Economics/Mathematical Methods.
Econometrics.
Economic Policy.