Empirical Versus Theoretical Economics: A Commoner’s Perspective Of The Age Old Debate

2141 words - 9 pages

This is by no means a paper in Economics and neither is it an “attempt” towards one (as it turns out for me in most cases). This is just a piece where I plan to freely share my opinion on some interesting research problems faced by economists over the evolution of the subject and how we find some striking similarities to them in our daily lives. It is also an opportunity for me to provide my heartiest best wishes and greetings to the organizers of YESM 2013, which is now a regular feature in the calendar of economics students in the city of Kolkata, and perhaps even beyond!
One of the major problems that economists and researchers in economics face worldwide is aligning theoretical predictions to behavioral results. It is not uncommon to peep into an undergraduate class and find mention of “rational” agents. It is often seen that certain results which do not line up with economic theory are supposed to have been derived from irrational behavior or outlier data points. There is a whole literature on “excess sensitivity” and “excess smoothness” of data in predicting economic variables and the agent behavior. People particularly interested in macroeconomics and especially inter-temporal consumption behavior will be totally aware that these two terms are at many times your companion in the subject. In fact, any research paper looking to identify inter-temporal consumption aspects and trying to back up theoretical claims with empirical data by running rigorous fearful scary looking regressions might have to end up with some findings that are owed to these two fancy terms!!
I presume that the readers of this article are undergraduate students in majority (though I know some senior people are raising their eyebrows while reading this line) owing to the fact that this publication is associated with an event meant for budding students and researchers. To them it might all seem a bit out of context and strange to talk about such extravagant expressions. However, this is not very alien to what we all study at an intermediate level by any means. We do come across certain “simplifying” and restrictive assumptions which make our models and comparative statics good to look at and easy to do, respectively but in reality we may often end up finding different results while working with true data. I just chose the inter-temporal consumption problem for expositional clarity and ease of understanding.
Consider our day to day lives. We have to make several such decisions like consuming “today” versus consuming “tomorrow.” It can be regarding anything. Say for example, a person is contemplating buying a new iPad today or postponing it till the next quarter when he expects a rise in his pay. Such decisions over time do matter to us and are frequently happening around us. Every day, we are weighing our present day benefits against the future. Now, suppose our potential ipad buyer suddenly knows that his pay shall increase right from the next month and he won’t have...

Find Another Essay On Empirical versus Theoretical Economics: A Commoner’s Perspective of the Age Old Debate

The Old Economics Debate, Classical, Keynesian and Monetarist

1579 words - 6 pages ) and the supply side policies had not lead to the rapid rate of economic growth. Also supply side economics is like a ping the tail on the donkey game of economics, in that we actually have no idea where the lafer curve is, you run the risk of misjudging your decision so cutting taxes to much etc. and could have extremely negative effects.

The Rise of White Collar Crime: A Theoretical Perspective

994 words - 4 pages White Collar Crime is becoming a much bigger problem in today's society than it was in the past. Factors that contribute to the increase of white collar crimes include advances in technology, growth of the information age using computers and the internet, higher levels of education, and the fact that there is a greater emphasis on money and power in today's society than there has been in the past. Higher levels of education, coupled with the

An Analysis on "Driving Consumer Acceptance of Mobile Marketing: A Theoretical Framework and Empirical Study"

683 words - 3 pages those consequences. The social norms are a result of the individual’s normative beliefs i.e., his assumption about what another person wants him to do, and his motivation to comply with the expectations of this person.This study has proved the validity of the Theory of Reasoned Action for research in the area of mobile marketing. The empirical results also imply that social norms only have a slight direct influence on behavioral intention

Television and The Society From a Theoretical Perspective

877 words - 4 pages TELEVISION AND THE SOCIETY FROM A THEORETICAL PERSPECTIVETelevision became a true mass medium in 1960 reaching into 90% of the homes in the United States of America. At that time the United States was characterized by social and racial unrest. The youth revolution of "sex, drugs, and rock 'n' roll" took hold on that decade as did economic growth accompanied by rampant commercialism and consumerism. There were dramatic rises in violence of all

The Debate of Orgin: Creationsim versus Evolutionism

1247 words - 5 pages modern science tells us. And that, in and of itself, is the essence of the nationwide debate. Should Creationism, or as it is sometimes labeled, Intelligent Design, be taught in public schools? The answer, of course, is no. 23% of High School students surveyed said that no, they do not believe in creationism and yet the attend church every week. This is compared to 20% of people who attend weekly and do believe in creationism. What this means

Breakdown of the Booze-Age Debate

1628 words - 7 pages “Hey, you want a beer?” Many high school and college students are asked this question when they go out to parties and are faced with an internal conflict: whether to give in to peer influence and drink or to abide by the law and say no. Some people feel that this law, criminalizing alcoholic intake for those under the age of 21, is somewhat overbearing, while others feel that lowering the drinking age would prove to be disastrous. As with any

The National Drinking Age: The lowering of the drinking age from the perspective of a college student

965 words - 4 pages being alcohol related), and due to the nature of the issue, people demanded action fast. Instead of funding research and determining multiple reasons why these deaths were so high, the United States immediately assumed that the problem was a product of the drinking age (this being the first problem). Thus the U.S. acted accordingly on this false assumption and made a law enforcing a 21 year old drinking age. By law the minimum age of consumption of

The Age Old Struggle

1055 words - 5 pages for rebelling against the norm. Often times this lead to seclusion until you were under control once more, in Gilman’s story her main character is trapped within an ancestral home. The homes ancient origins symbolizes the age old objectification of women based down through generations and slowly causes her to become trapped within her own mind. Consequently it is because of this she sees trapped behind the wallpaper “a great many women

The Richness of Old Age: a New Critical Reading of "to Autumn"

1431 words - 6 pages "Where are the songs of Spring? Ay, where are they? Think not of them, thou hast thy music too." So often, people look back upon their youth and wish that they still had it before them. Our natural tendency is to fear old age, to see it as the precursor to death, rather than a time of life, desirable in its own right. However, in John Keats' poem, To Autumn, he urges us not to take this view, but to see old age as a beautiful and enviable state

Are Modern Humans Still Evolving? A research paper on the relevancy of Darwin's age-old theory

1751 words - 7 pages of societal changes on earth (McKie, 2005). He says that natural selection, mutation, and random change were the three things that drove evolution, and he believes that these factors are no longer present in the modern, western society. He further argues that the likelihood of mutations in genes is declining because of a generally younger age for fathers; he says fathers over the age of 35 are more likely to pass on mutations. This is because

A Theoretical and Historical Comparison Debate Paper on the Beliefs and Perceptions

2063 words - 9 pages its many subcategories and have changed over time. The anthropologist E.E. Evans-Pritchard, studied and recorded this pre-modern witchcraft from what he calls, "a primitive society" (Evans-Pritchard 18) known as the Azande. Evans-Pritchard's theory of witchcraft in the Azande community was "combined with his own skepticism regarding the truth behind witches, thus isolating the debate that witchcraft is a type of specialty case" (Mills 18). Evans

Similar Essays

The Age Old Debate Essay

1051 words - 5 pages genetic dispositions with the area they were located. In other words, it could show where the three factors of the research for TEDS seemed to spike on a map of London. Areas of negative aspects were higher in area with overpopulation, higher crime rate, and impoverish communities. I believe the key data here shows that it is not the question of whether it is nature versus nurture, rather how much nature or nurture is involved. In impoverished

The Formula For Fruition: The Age Old Debate Of Nature Versus Nurture By Kendra Cherry

1887 words - 8 pages the future in a logical and helpful way, weighing natural passion and skill over the resources and support we may initially have. Works Cited Cherry, Kendra. "The Age Old Debate of Nature Versus Nurture." About.com Psychology. Web. 18 May 2014. . Mason, Lydia. “Nature vs. Nurture in Education”. Survey. 15 May 2014. Mason, Cynthia. Personal interview. 10 May 2014. Webley, Kayla

The Age Old Debate Of Caffeine Consumption

1534 words - 7 pages that you could possibly need to make an educated decision on if you want to allow you child to consume caffeine. By weighing out the relevance of the benefits and disadvantages of consuming caffeine, you should be able to make a proper decision. Parents often deal with the conflict on whether or not to allow their children to consume sodas, maybe even coffee. However, with evidence at hand, the decision is yours and when you decide what side you are on there can be no dispute. Whether it is to restrain, allow, or moderate caffeine consumption by your children is up to you, but this age old debate can finally come to an end.

The Age Old Question Of Good Versus Evil

1496 words - 6 pages argument that the views expressed by Xunzi provide are the strongest of those examined in this paper. Mencius argues that humans are fundamentally good by establishing that every person has within himself or herself a sense of sympathy and compassion for others. Mencius directly states that “no man is devoid of a heart sensitive to the suffering of others” (“Introducing Philosophy,” page 462). He then provides a hypothetical example of a man sighting a