…the theory very well. But my problem is that I’m a semi-retired business economist — one that does not forecast –and for my entire career I have been driven by…

…the behavior is not as predicted by theory. Sometimes firms sell at below cost to drive weaker firms out of the market, sometimes they under produce to prevent the cost…

…average effects varies across drugs as predicted by economic theory. Even though they were only using one year’s worth of data—or perhaps because of it—they concluded that the program has…

Robert Hall discusses Separating the Business Cycle from Other Economic Fluctuations at the Federal Reserve Bank of Kansas City’s annual Jackson Hole conference. David Altig claims Hall explained it all….

Louis Woodhall writes in The Real Social Security Crisis is Economic Growth: The Trustees of the Social Security Administration assume (in their “Intermediate” case”) that over the next 75 years,…

…are isolated to individual people within a multitude of influencing factors, and the differences between a traditional theory and a more comprehensive theory are subtle to understand. The hope is…

…— the ones which are taught first. The current body of theory does not support either conclusion. It is possible to come up with models so that the minimum wage…

Steve Randy Waldman has utterly pre-empted the need for this post, cut to the core of the thing, in the opening line of his latest (collect the whole series!): When…

…all orthodox economic theory, involves a special assumption as to the relationship between these two functions. … The classical theory assumes, in other words, that the aggregate demand price (or…

…whose equations were not microfounded, but instead justified by an eclectic mix of theory and empirics. That work within academia did largely come to a halt, and was replaced by…