This post was titled “Why data alone is not enough for economic inference”. I was all prepared to write a post on the fact we need data and theory in order to do economic inference and create knowledge. I had links (*,*,*,*,*). Then Noah Smith wrote this like really good post on the issue, so I’d suggest reading that.
On the other side there are those who are “too in love” with theory without any reference to data, or prior literature (which is a way of building a case for inference between theory and data). A clear example of that comes from some of the comments that specific physicists moving into economics make – and Chris House has expressed that here.
I’d note that Read more