In Defense of Economic Theory

The video discusses the critique of economics for being too theoretical and not empirical enough. It explores the intersection of philosophy and economics, particularly in modeling and rationality. The evolution of the philosophy of science and its impact on economic methodology is highlighted, along with the specialization within the field. The focus shifts to behavioral economics and its implications for macroeconomics, emphasizing the empirical revolution and data-driven approaches.

What is one major criticism of economics mentioned in the first section?

• It is too focused on real-world applications.

• It relies too heavily on empirical data.

• It lacks sufficient abstract theorizing.

• It involves too much abstract theorizing without enough real-world data.

Why have philosophers of science become interested in economics, according to the second section?

• Because economic models resemble climate change models in their assumptions.

• Due to the simplicity of economic models.

• Due to the lack of mathematical complexity in economic models.

• Because economic models are easy to test.

What has behavioral economics challenged in the field of economics?

• The validity of empirical data.

• The rationality of individual agents.

• The role of technology in economics.

• The importance of historical context.

How has the philosophy of science changed in relation to economic methodology?

• It has become more empirical and naturalistic.

• It has focused more on political history.

• It has become more abstract and theoretical.

• It has remained unchanged over the years.

What is a significant trend in economic methodology after the financial crisis?

• A decline in interest in economic methodology.

• A focus on macroeconomic papers.

• An increase in behavioral and neuroeconomics research.

• A shift towards political history.

What technological changes are influencing the field of economics?

• The decline of big data.

• The reduction in technological advancements.

• The rise of slow computing.

• The impact of big data and fast computers.

What is the main focus of the empirical turn in economics?

• Political history.

• Behavioral economics and data-driven approaches.

• Abstract theorizing.

• General equilibrium theory.