Posted on Wednesday, 8 August 2012
Many had pronounced the field of economics discredited after the global financial crisis. Instead, it’s in the midst of a revolution.
The transformation isn’t a mea culpa, or a knee-jerk reaction to the crisis. Rather, it’s a long-running shift toward a more empirical field, to the study of what hard data can tell us about the way the world really works.
Our favourite husband-and-wife economist duo, Betsey Stevensen and Justin Wolfers, write in Bloomberg about how business is booming in empirical economics. With so much data, they write, making assumptions about ‘homo economicus’ is a thing of the past.