Exploring different visions of the model-empirics nexus: Solow versus Lipsey
Does empirical work in economics both provoke and test theoretical models, or does model development proceed according to a theory-oriented research program, with little interaction with empirics? Robert Solow and Richard Lipsey have articulated different visions of this relationship. This paper: (i) describes these competing Solow versus Lipsey views; (ii) presents examples illustrating each view; and (iii) draws inferences about factors promoting a close relation between empirics and modeling. Three examples are examined in detail: the 'nursing shortage' literature; Lind's analysis of recent rent control models; and a wide-ranging evaluation of 'is there too little theory in development economics?' by leading development economists. Various factors promoting or inhibiting a close connection between modeling and empirics are identified.
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Volume (Year): 16 (2009)
Issue (Month): 2 ()
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