Seppo,
"Man has made a grave mistake in believing that the methods that are so powerful in physical sciences can be taken over to social sciences and that they work. Indeed, the historical approach is much better, as it incorporates subtleties that long and continuous thought can only bring."
Seppo, to elaborate with my spin: Econometrics is the study of history by math. Despite the power of the human brain, we still can only handle the analysis of a small fixed number of relationships. This comes from psychology. To be successful an economist needs strong math and a keen sense of history.
For example, another long standing rule for economists...
"Does it past the sniff test."
If a logical case for your result set can not be made, the model is wrong. Determining "logical" is the difference between the leading thinkers and doers. That is, as I read, the intelligence in your quote:
"Indeed, the historical approach is much better, as it incorporates subtleties that long and continuous thought can only bring."
Regards,
Lee |
