The Positive Economics of Methodology / James A. Kahn, Steve Landsburg, Alan C. Stockman.

Format:

Book

Author/Creator:

Kahn, James A.

Contributor:

National Bureau of Economic Research.

Landsburg, Steve.

Stockman, Alan C.

Series:

Technical Working Paper Series (National Bureau of Economic Research) no. t0082.

NBER technical working paper series no. t0082

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1989.

Summary:

Does an observation constitute stronger evidence for a theory if it was made after rather than before the theory was formulated, when it may have influenced the theory's construction? Philosophers have discussed this question (of "novel confirmation") but have lacked a formal model of scientific research and incentives. The question applies to all types of research. One example in economics involves evaluating models constructed on the basis of VARs (where a researcher looks at evidence and then constructs a theory) versus structural models with formal econometric tests (where a model is constructed before some of the evidence on it is obtained). This paper develops a simple model of scientific research. It discusses the issues that affect the answer to this question of the timing and theory-construction and observation or experimentation. We also address issues of social versus private incentives in the choice of research strategies, and of socially optimal rewards for researchers in the presence of information and incentive constraints.

Notes:

Print version record

November 1989.