My advice to all students of economics and all other fields in any branch is that they must not shy away from making assumptions as a step towards engaging in serious analyses as they go deep into the science and art of economics As they say, all theory depends on assumptions which are not quite true. That is what makes it theory. The art of successful theorizing is to make the inevitable simplifying assumptions in such a way that the final results are not very sensitive. Of course, a crucial assumption is one on which the conclusions do depend sensitively, and it is important that crucial assumptions be reasonably realistic. When the results of a theory seem to flow specifically from a special crucial assumption, then if the assumption is dubious, the results are suspect.
Posted on: Fri, 27 Jun 2014 20:44:43 +0000
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