The Traderszone Network

Published in TZ Latest News 3 June, 2014 by The TZ Newswire Staff

Why economists can’t always trust data

To make progress in economics, it is essential that theoretical models be subjected to empirical tests that determine how well they can explain actual data. There are several reasons for the poor quality of economic data:  Non-Experimental Data: Economists do not have the ability to perform experiments, except in a very limited way. Instead, they must rely upon historical data.