Haavelmo was the first to recognize the capacity of economic models to guide policies. This paper describes some of the barriers that Haavelmo's ideas have had (and still have) to overcome, and lays out a logical framework that has evolved from Haavelmo's insight and matured into a coherent and comprehensive account of the relationships between theory, data and policy questions. The mathematical tools that emerge from this framework now enable investigators to answer complex policy and counterfactual questions using simple routines, some by mere inspection of the model's structure.
Judea PearlRelated topics
account answer complex comprehensive datum emerge guide mere now overcome paper simple using inspection questionsRelated quotes
(...) the bottom line is that if you believe in an external reality independent of humans, then you must also believe that our physical reality is a mathematical structure. Nothing else has a baggage-free description. In other words, we all live in a gigantic mathematical object-one that's more elaborate than a dodecahedron, and probably also more complex than objects with intimidating names such as Calabi-Yau manifolds, tensor bundles and Hilbert spaces, which appear in today's most advanced physics theories. Everything in our world is purely mathematical-including you.
Max Tegmark
The move from a structuralist account in which capital is understood to structure social relations in relatively homologous ways to a view of hegemony in which power relations are subject to repetition, convergence, and rearticulation brought the question of temporality into the thinking of structure, and marked a shift from a form of Althusserian theory that takes structural totalities as theoretical objects to one in which the insights into the contingent possibility of structure inaugurate a renewed conception of hegemony as bound up with the contingent sites and strategies of the rearticulation of power.
Judith Butler
Saussure took the sign as the organizing concept for linguistic structure, using it to express the conventional nature of language in the phrase "l'arbitraire du signe". This has the effect of highlighting what is, in fact, the one point of arbitrariness in the system, namely the phonological shape of words, and hence allows the non-arbitrariness of the rest to emerge with greater clarity. An example of something that is distinctly non-arbitrary is the way different kinds of meaning in language are expressed by different kinds of grammatical structure, as appears when linguistic structure is interpreted in functional terms.
Michael Halliday
It is often said that all the conditions for the first production of a living organism are now present, which could ever have been present. But if (and oh! what a big if!) we could conceive in some warm little pond, with all sorts of ammonia and phosphoric salts, light, heat, electricity, &c., present, that a proteine compound was chemically formed ready to undergo stillmore complex changes, at the present day such matter would be instantly devoured or absorbed, which would not have been the case before living creatures were formed.
Charles Darwin
Humans have a more complex motivational structure and more capability to solve social dilemmas than posited in earlier rational-choice theory. Designing institutions to force (or nudge) entirely self-interested individuals to achieve better outcomes has been the major goal posited by policy analysts for governments to accomplish for much of the past half century. Extensive empirical research leads me to argue that instead, a core goal of public policy should be to facilitate the development of institutions that bring out the best in humans.
Elinor Ostrom