Making Economics More Useful: How Technological Eclecticism Could Help

Applied Economics, 2020

20 Pages Posted: 6 Sep 2017 Last revised: 14 Feb 2020

See all articles by Amar Bhide

Amar Bhide

Tufts University - The Fletcher School of Law and Diplomacy

Date Written: January 31, 2020

Abstract

Keynes thought it would be “splendid” if economists became more like dentists. Disciplinary economics has instead become more like physics in focusing on concise, universal propositions verified through decisive tests. This focus, I argue, limits the practical utility of the discipline because universal propositions form only a part of new policy recipes. I further suggest that, as in engineering and medicine, developing economic recipes requires eclectic combinations of suggestive tests and judgment. Additionally, I offer a detailed example of how a simulation model can help evaluate new policy combinations that affect the screening of loan applications.

Keywords: economic methodology, simulations, banking, regulations

JEL Classification: B40, G21, G38

Suggested Citation

Bhide, Amar, Making Economics More Useful: How Technological Eclecticism Could Help (January 31, 2020). Applied Economics, 2020, Available at SSRN: https://ssrn.com/abstract=3031221 or http://dx.doi.org/10.2139/ssrn.3031221

Amar Bhide (Contact Author)

Tufts University - The Fletcher School of Law and Diplomacy ( email )

Cabot 505
160 Packard Avenue
Medford, MA 02155
United States
617-229-5050 (Phone)

HOME PAGE: http://www.bhide.net

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