On the Role of Theory and Evidence in Macroeconomics
25 Pages Posted: 23 Apr 2010
Date Written: April 5, 2010
This paper, which is prepared for the Inaugural Conference of the Institute for New Economic Thinking in King's College, Cambridge, 8-11 April 2010, questions the preeminence of theory over empirics in economics and argues that empirical econometrics needs to be given a more important and independent role in economic analysis, not only to have some confidence in the soundness of our empirical inferences, but to uncover empirical regularities that can serve as a basis for new economic thinking.
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