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Rational Econometric Man
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This challenging and original book takes a fresh, innovative look at econometrics, and re-examines the scientific standing of structural econometrics as developed by the founders (Frisch and Tinbergen) and extended by Haavelmo and the Cowles modellers (particularly Klein) during the period 1930 - 1960. The authors begin by rethinking the scientific foundations of structural econometrics, offering a way around the problem of induction that also justifies the assumption of a 'data-generating mechanism', and of ways to model this. They go on to explain how current critiques of the methodological foundations of structural econometrics are direct consequences of implicitly accepted but seriously flawed elements in neo-classical thinking. In the final part they present their distinctive methodological contribution; a blend of fieldwork and conceptual analysis designed to ensure that their models are well grounded in reality and at the same time, conceptually coherent as well as statistically adequate. In so doing, they also outline a number of elements that will be needed to develop a 'good' macro-econometric model of an advanced economy. Rational Econometric Man will prove a stimulating and thought-provoking read for scholars and researchers in the field of economics, and, more specifically, heterodox economics.
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