Walker: >>The critique has been that econometrics CAN'T show that the economic data >>are or aren't "consistent with one's theory". Devine: >No, the critique of econometrics (or at least the informed critique) says >we can't prove anything using econometrics. Lakatos (on Duhem-Quine thesis): 'no experimental result can kill a theory: any theory can be saved from counter-instances either by some auxiliary hypothesis or by a suitable reinterpretation of its terms'. And, because econometrics is non-experimental, the scope for such theory-rescue is widened considerably. regards, Tom Walker http://www.vcn.bc.ca/timework/covenant.htm
