Sunday, March 29, 2009

Google Chief Economist Hal Varian on Economics as Hard Science

What Use is Economic Theory? One of my basic questions about economics (and a recurring theme on this blog) is whether or not it should be considered a hard science. As it turns out, Hal Varian wrote a (short, accessible) paper addressing this question 20 years ago. He sums up his position in a comment to a post on Mark Thoma's blog:

My thesis is that economics should not be compared to physics but to engineering. Or, alternatively, not to biology but to medicine. That is, economics is inherently a "policy science" where the value of an economic theory should be judged according to its contribution to economic policy.


The whole paper is worth a read, especially knowing that Dr. Varian wound up at Google.

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