The author argues that the standard equilibrium model of economics is devoid of empirical content and that a theory based on individual rationality derived from introspection provides no explanations of real world phenomena. He suggests that the way forward lies in deriving predictions from empirical facts and then testing for the presence of these facts. This is contrary to current practice.
Keywords: expenditure; explanation; law of demand; market demand; structure of economic data
Chapter. 5864 words. Illustrated.
Subjects: Macroeconomics and Monetary Economics
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