Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the jetpack domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the avia_framework domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Warning: Cannot modify header information - headers already sent by (output started at /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php:6131) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/feed-rss2-comments.php on line 8
Comments on: Economics and science – careful with the prediction call http://www.tvhe.co.nz/2013/08/28/economics-and-science-careful-with-the-prediction-call/ The Visible Hand in Economics Thu, 13 Jun 2019 22:47:28 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: TVHE | Economics vs physics http://www.tvhe.co.nz/2013/08/28/economics-and-science-careful-with-the-prediction-call/#comment-42020 Wed, 28 Aug 2013 18:28:56 +0000 http://www.tvhe.co.nz/?p=9660#comment-42020 […] An interesting post by the Economic Logician that bears on our recent discussion: […]

]]>
By: Matt Nolan http://www.tvhe.co.nz/2013/08/28/economics-and-science-careful-with-the-prediction-call/#comment-42014 Wed, 28 Aug 2013 10:09:00 +0000 http://www.tvhe.co.nz/?p=9660#comment-42014 In reply to Shamubeel Eaqub.

Indeed, I would go even further than you and say that the “policy engineering view based on prediction” is naive and thoughtless – in truth we need explanation to set policy.

As mentioned at the bottom of the post unobservability, reflexivity, and the fact that many explanations can map to the same set of data make any analysis non-nonsensical without answering “why”.

What makes me most nervous is the number of people out there who truly believe naive data analysis, and models with the best “predictive power”, are really the be all and end all of the social sciences …

]]>
By: TVHE | Is economics a science? Yawn! http://www.tvhe.co.nz/2013/08/28/economics-and-science-careful-with-the-prediction-call/#comment-42010 Wed, 28 Aug 2013 09:46:06 +0000 http://www.tvhe.co.nz/?p=9660#comment-42010 […] has written a long post discussing Rosenberg and Curtain’s NYT article about the science of economics. Their basic […]

]]>
By: Shamubeel Eaqub http://www.tvhe.co.nz/2013/08/28/economics-and-science-careful-with-the-prediction-call/#comment-42009 Wed, 28 Aug 2013 07:42:00 +0000 http://www.tvhe.co.nz/?p=9660#comment-42009 In reply to Matt Nolan.

Matt, as someone who is also in the business of selling predictions, a byproduct of economic theory and econometrics, I see the role of economics as being very much focussed on point 2, explaining how things work. This knowledge can help to make some predictions and help us make policies. Like some of the cool stuff they mentioned in Nudge: http://www.amazon.com/Nudge-Improving-Decisions-Health-Happiness/dp/014311526X

Users of forecasts are really interested in the risks around this forecast. It is a narrative of likely future environment with plenty of explanation of what the drivers and risks are. So, the reader is easily able to see when something changes.

What economist fail at is usually communication…

]]>
By: Matt Nolan http://www.tvhe.co.nz/2013/08/28/economics-and-science-careful-with-the-prediction-call/#comment-42008 Wed, 28 Aug 2013 05:50:00 +0000 http://www.tvhe.co.nz/?p=9660#comment-42008 In reply to VMC.

Applied practitioners are usually a bad guide towards whether the research involved with a discipline is scientific – although it can be a hard line! That is part of the reason that Greg Mankiw used the “economic engineer vs economic scientist” description to try to show the split a bit! And it likely holds in a bunch of other disciplines as well, such as the ones you name!

For example, I am loath to put myself in the “economist” camp here at all – as I am not an economic scientist in the ways we’d see it, not at all! I sell a business service that relies on the empirical and theoretical evidence/products produced by economic scientists (along with using an applied economics skill set to try and fill gaps by analysing data that is available), and my comparative advantage is (hopefully) the way I can communicate those things to a non-economist audience.

I am very interested on the ideas about economic science, and trying to understand the argument for that – as it feeds into how I understand what economic scientists make so that I can use it. In that way I hope my perspective on it is relatively impartial 😛

]]>
By: VMC http://www.tvhe.co.nz/2013/08/28/economics-and-science-careful-with-the-prediction-call/#comment-42007 Wed, 28 Aug 2013 04:08:00 +0000 http://www.tvhe.co.nz/?p=9660#comment-42007 There may of course be another way of considering that, economics may well be a science but that does not mean that all economists act scientifically. A parallel – veterinary science is mostly scientific, but recently I took my cat to a vet who suggested acupuncture. I was appalled, and asked the guy had he learnt that (acupuncture) at university – and, of course, he had not. Medical doctors also give out advice that is not based on science – such as when they prescribe an antibiotic for the common cold. Adam Smith, BTW, based much of what he wrote of first hand observation – the basis of science.

]]>