Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 21, Problem 17QE
To determine

Importance of the out-of-sample data in inductive models.

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Modern economic models sometimes require strong assumptions. What do you think are some of the trade-offs between a more rigorous, logically cohesive model with strong assumptions but clear inferences and a description of problems followed by a verbal discussion of possible implications?
The methodology of ________ economics says that models should be based on predictions and not assumptions.
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