The recent “empirical” turn in economics should be known as an “applied” one and it is just one in a long series of related developments. Moreover, it is a move towards the historical roots of the discipline. Those are some lessons from Beatrice Cherrier‘s essay “Is there really an empirical turn in economics?“. Based on research conducted together with Roger Backhouse, she takes issue with the idea that there has been a revolution in economic research involving empirics. Some points I liked:
- Empirical work has been live and well, what has changed is its recent larger role in top journals. Besides, the view of theory as dominating in economics is based on looking only at the last 50 years – pre- and immediate post-war economics used to be a lot more empirical.
- Much theory has become more applied, often involving data. And John Bates Clark medal citations stress “applied,” often taken consisting of a mix of theory and empirics.
- Increasing availablity of data is a development that has been ongoing since at least the 1960’s. Hype around and criticism of new, large sources of data were the same in the 1970’s as today.
- Computerization is overrated, much modern empirical work is computationally and numerically very simple.
- Oscar Morgenstern (of von Neumann and Morgenstern‘s Theory of Games and Economic Behavior fame) proposed that to become a fellow of the Econometric Society, it should be a requirement to “have done some econometric work in the strictest sense” and be “in actual contact with data they have explored and exploited for which purpose they may have even developed new methods.”
H/t: Erwin Dekker.