Essential Readings on Methodology in Economics

 

Introduction

• The Methodology of Positive Economics, by Milton Friedman
• The Economic Approach to Human Behavior, by Gary Becker
• Rational Decision-Making in Business Organizations, by Herbert Simon

In this 1978 Nobel Prize Lecture, Simon introduces the concept of bounded rationality.

 

On Realism of Assumptions

• How Should Economists Choose?, by Ronald Coase

In this piece, Coase challenges many propositions by Friedman. He thinks realistic assumptions help economists to pin down the underlying mechansim that explains how economic system works in reality; and he also gives numerous examples that a few revolutionary economic theories in the past were never judged by their prediction power.

• Realism and Comprehension in Economics --- Exchanges between Oliver Williamson and Herbert Simon

 

On Econometrics and Empirical Studies

• The Ten Commandments of Applied Econometrics, by Peter Kennedy
• Ed. Leamer on the state of econometrics, EconTalk audio interview
• Let's Take the Con out of Econometrics, Leamer's critique on econometrics
  • Credibility Revolution in Empirical Economics, development since Leamer's 1983 critique
  • Other relevant pieces from the symposium "Con Out of Economics" on JEP 2010

 

On Cliometrics (combining economic history with econometrics)

• Introduction of Cliometrics, by Claudia Goldin

 

On Macroeconomics

• Macroeconomics and Reality, by Chris Sims
• Macroeconomics and Methodology, by Chris Sims
• Some Macroeconomics for the 21st Century, by Bob Lucas
• How did economists get it so wrong?, by Paul Krugman
  • Rebuttal from John Cochrane at Chicago
  • Bob Lucas defends modern macro on Economist Magazine, and on Wall Street Journal

 

On Behavioral Economics/Finance

• Behavioral Economics, by Richard Thaler et al.
• From Efficient Markets Theory to Behavioral Finance, by Bob Shiller
• The Rational-Behavioral Debate in Financial Economics, by Alex Rosenberg et al.
• A Survey of Behavioral Finance, by Richard Thaler et al.
• The End of Behavioral Finance, by Richard Thaler
• Psychology and Economics, by Matt Rabin
• A Perspective on Psychology and Economics, by Matt Rabin

 

On Field Experiments

• Why Economists Should Conduct Field Experiments, by John List
• Field Experiments with Firms, by Bandiera et al.

 

On Economist as Engineer

• The Economist as Engineer, by Al Roth, in which he advocates economics should de-emphasize being science, insteand it should focus more on problem solving.

 

Economics as Policy Science

• What Use Is Economic Theory?, by Hal Varian

 

On Neuroeconomics

• Neuroeconomic Foundations of Economic Choice, by Fehr and Rangel

 

Economics of transition
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Transitional economies
Economics of transition
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Economics of transition
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Transitional economies
Economics of transition
Economics of transition
Transition economics
Transitional economies
Economics of transition
Transition economics
Transitional economies
Economics of transition
Transitional economics
Transitional economies
Economics of transition
Transitional economics
Transitional economies
Economics of transition
Transition economics