In the discourse surrounding the mathematization of economics throughout the last century, a notable transformation emerges: the increasing significance attributed to statistics. Wesley Mitchell, an influential institutionalist author, prominently advocated for the utilization of statistical methods in the study of business cycles. His efforts, alongside several important figures in economics, culminated in the establishment of the Econometric Society in 1930. The society’s inception was marked by a profound articulation of purpose, as conveyed in the announcement of its foundation: “The main object of a society formed on this basis would be to promote studies that aim at a unification between the theoretical-quantitative and empirical-quantitative approach to economic problems and which are penetrated by a constructive and rigorous way of thinking similar to that which has to dominate in the natural sciences. Any activity which seems susceptible of ultimately furthering such a truly scientific unification between theory and factual studies in economics would be in line with the scope of such a society.”
For this short essay, your first task is to engage with the editorial Download editorial Open this document with ReadSpeaker docReaderpenned by Ragnar Frisch and the opening paper Download opening paperOpen this document with ReadSpeaker docReaderauthored by Joseph Schumpeter in the inaugural edition of Econometrica, the society’s flagship journal, published in 1933. In your analysis, delve into the perspectives articulated by Frisch and Schumpeter regarding the role of econometrics in harmonizing theoretical-quantitative and empirical-quantitative approaches to economic phenomena. Pay particular attention to how their viewpoints resonate with Wesley Mitchell’s methodological stance, especially concerning the application of statistical techniques in the examination of business cycles.
Following this examination, proceed to evaluate the contemporary pertinence of the original objectives delineated by the founders of the Econometric Society in 1930. Assess whether the pursuit of a “truly scientific unification between theory and factual studies in economics” endures as a guiding principle in modern economic scholarship. To do so, I recommend that you visit the Econometrica journal website (https://www.econometricsociety.org/publications/econometricaLinks to an external site.) to gain insight, at least from titles and abstracts, into recent publications. Scrutinize whether the ideals championed by the founders of the Econometric Society persist in the journal’s content and editorial direction.
Relevant references:
Frisch, R. (1933). Editor’s Note. Econometrica, 1(1), 1–4. http://www.jstor.org/stable/1912224 Links to an external site.pdf hereDownload pdf hereOpen this document with ReadSpeaker docReader
Schumpeter, J. (1933). The Common Sense of Econometrics. Econometrica, 1(1), 5–12. https://doi.org/10.2307/1912225 Links to an external site.pdf hereDownload pdf hereOpen this document with ReadSpeaker docReader
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