Compared to how testing is done in hard sciences, do economic tests differ? Is it more or less difficult isolating measurements?
In: 6
Its really, really hard.
Sometimes natural experiments happen all on their own. For example, states with similar economies may enact different economic policies and you can watch how those economies diverge.
Most of the time, though, that doesn’t happen. Economic models aren’t empirically tested – they are developed based on existing data and the model is the best explanation for that historical data the economist can come up with.
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