Econometrics in a Formal Science of Economics

The author conceives of two scenarios for research in applied econometrics: one for contemporary econometrics in the tradition of Trygve Haavelmo, and one for the kind of formal theory-data confrontation that Ragnar Frisch envisioned in his formulation of the constitution of the Econometric Society. The book presents case studies of economic phenomena that contrast the empirical analysis that contemporary applied econometrics prescribes with the empirical analysis that a formal theory-data confrontatio n prescribes. The results display significant and provocative contrasts.