Lecture 19: Identification and Falsification

Name: Lecture 19: Identification and Falsification
Uploaded: 2022-08-31T20:12:47Z
Duration: 58 min 38 s
Description: A theory which can always be made consistent with data has no content. A good theory is one which can be rejected. Algorithms can be used with data to show when consumer choice is irrational. Despite the notion that “anything goes” in general equilibrium theory, recent work shows what data are sufficient to allow rejection.

58:38

A theory which can always be made consistent with data has no content. A good theory is one which can be rejected. Algorithms can be used with data to show when consumer choice is irrational. Despite the notion that “anything goes” in general equilibrium theory, recent work shows what data are sufficient to allow rejection.