4 ms·
Experimental econ is a fairly large sub-field that is very useful for micro phenomena. Unfortunately because even the micro phenomena are complex and difficult
by drabiega 9y ago
Experimental econ is a fairly large sub-field that is very useful for micro phenomena.
Unfortunately because even the micro phenomena are complex and difficult to quantify, you can't reliably use micro knowledge to mathematically predict macro phenomena the way you could in something like physics.
Since the economics that most non-economists really care about are all macro stuff, this tends to mean that people are not really aware of experimental econ. It's still useful in cases like this, though: You can't experimentally confirm the actual causes of boom and bust cycles, for instance, but you can show that certain conditions are sufficient for the emergence of boom and bust cycles.