Discussion: Quantitative Economics

economic theory structure, with implied two-stage optimizing simplification of parametric relationships, can permit estimation to proceed with data insufficient for less restrictive specification. It is a productive principle which should be applied wherever feasible in quantitative economics if the restrictive conditions do not reduce significantly the functional utility of the resulting output. Also, the operational usefulness of this more complete and sophisticated approach has to be tested in real decision processes against other simpler approximation methods. Now let us make an unbiased evaluation of the observable performance in this field by means of my biased opinions. They are listed in no significant order: 1. An optimum amount of effort should be devoted to purely theoretiJAMES B. HASSLER is professor of agricultural economics at the University of Nebraska. This content downloaded from 207.46.13.156 on Sat, 10 Sep 2016 05:14:14 UTC All use subject to http://about.jstor.org/terms QUANTITATIVE ECONoMIcs-DIscusSION / 1737 cal work in the economic and measurement fields. This is the prime growth cell for later productive utilization in the real system. Personnel involved in these activities should not operate in a vacuous inner circle, writing for each other about methods and issues of doubtful usefulness or significance, and rarely wondering about problem priorities in the real world. Some involvement with people struggling with public or private problems would greatly enhance their comprehension. 2. Too many research workers (oriented theoretically or in applied activities) spend too much time trying to convince themselves and others that economics is a science and that they know how to use certain tools mechanically. Examples and theoretical structures are created not to be realistically useful but to satisfy the argument dimensions or technique requirements which they are espousing and to exhibit properties consistent with abstract theory. 3. We are either lacking in brain power or have conveniently shied away from the difficult task of specifying the necessary details for the relevant operational elements and relationship structures for real decision problems. Bluntly, measurement techniques and computational capacity are far ahead of our ability (or desire) to structure properly the economic model counterpart. When the decision process involves order and control for a multiple unit and level system, the operational model cannot omit the implementation threads. We are especially weak in form and time specifications for continuous dynamic systems and a proper conceptualization of motivational mechanisms for the human factor. 4. How much quantitative economic theory and measurement methodology is being used in public and private business? It would be interesting to have a comprehensive survey on this involvement. Undoubtedly, the use of statistical and programming techniques for information and control would be widespread. Large organizations would be continuously running simulations using questionable structural models on growth, reorganization, alternative environment conditions, and comparable issues. Much of this would be a fishing expedition, but should make management more aware of the interdependent adjustments built into the system. 5. Most research can be classified as either active or passive. We do too much passive research. Our expectations that information contained in quantified relationships will be used by businesses or public agencies is considerably exaggerated. Usually, we have failed to anticipate the specific information needs of the problem-plagued operators or the implementation requirements which we have omitted. Our best guidance on this practical problem is to place ourselves in the position of the decisionmaker. 6. Finally, I would like to list a few priority objectives for econometricians to direct their analytic efforts toward. This content downloaded from 207.46.13.156 on Sat, 10 Sep 2016 05:14:14 UTC All use subject to http://about.jstor.org/terms 1738/ JAMES B. HASSLER a) Alternative structures and their implementation requirements for order and control of multidimensional systems. These alternatives (both theoretical and operational) should indicate a series of consistent operational procedures and organizational forms with more or less centralization of group and secondary decision authority. Goals and performance evaluations would be needed for choice purposes. Recognition of the dynamic aspects of the problem is essential. b) Intensive investigation of motivational mechanisms for adjustment problems and for consumer behavior. c) More diagnostic conditional research to delineate specific processes or decision points which cause performance measures for many interdependent functions to appear faulty. Solutions would be more specific and less global for such problems. Needed data or information development would be implicitly detected. d) I repeat again-a more active and less passive research outlook. This content downloaded from 207.46.13.156 on Sat, 10 Sep 2016 05:14:14 UTC All use subject to http://about.jstor.org/terms