A lot of younger economists have told me that theory is overrated. We just need to look at the data and see what the data say, he says. But big data have to be seen with a lot of caution; we need proofs of principle they eventually do help. And can you build reliable policy and decision-making based on big data? For the time being, I see it more as exploring an interesting space,. learning about the data, learning about their patterns"
John Ioannidis of Stanford University talks with EconTalk host Russ Roberts about his research on the reliability of published research findings. They discuss Ioannidis's recent study on bias in economics research, meta-analysis, the challenge of small sample analysis, and the reliability of statistical significance as a measure of success in empirical research.