The Dichotomy of Economics: Big Theories vs. Reliable Research

This chapter explores the tension between prominent economic theories and the undervalued empirical research that underpins successful policies. It reflects on the challenges of macroeconomic forecasting and the need for a balanced recognition of both theoretical and practical contributions in the field.

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This week on Econ 102, Noah Smith and Erik Torenberg tackle the shift in economic research from empirical studies to "big think" theories, critically examine Acemoglu's work on institutions and AI's impact on jobs, and debate the future of economics as a science.

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TIMESTAMPS:

(00:00) Intro

(01:14) Shift in economic theories

(07:16) Influence of economic theories on practice