Monday, August 5, 2013

Krugman on theory

Here's a nice blog post by Paul Krugman about the death of theory, presumably in cutting edge Ph.D. dissertations and research. He writes how in trade and macro, his sense was that either theory could prove everything or nothing, respectively. My own two cents is that the unprecedented availability of new micro datasets and powerful personal computers to analyze them made empirical economics far more relatively salient.