Econometrics Versus Reality

WEA Pedagogy Blog

This is the second in a sequence of lectures about regression models and methodology (for first lecture, on underlying philosophy of science, see: Flawed Foundations of Social Sciences). These regression models are central in econometrics. Current methodology underlying these models makes them completely useless for learning about the real world. To learn how and why, we first discuss the differences between nominalist and realist methodology for science.

Underlying Philosophy of Science

Many important structures of the real world are hidden from view. However, as briefly sketched in previous lecture onIbnul Haytham: FirstScientist, current views say that science is only based on observables. Causation is central to statistics and econometrics, but it is not observable. As a result, there is no notation available to describe the relationship of causation between two variables. We will use X => Y as a notation for X causes Y. Roughly speaking, this means…

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Ibnul Haytham: First Scientist

An Islamic WorldView

The central goal of this Lecture 10A on “Real Statistics: An Islamic Approach”, is to establish that standard methodologies currently in use in statistics/econometrics, particularly regression, are built on the wrong foundations, and incapable of generating knowledge. To understand WHY this is so, it is necessary to study the flawed philosophy of science used to build these foundations.

While the car is functioning well, one does not usually open up the engine. But when the car breaks down, it becomes necessary to open it up to see what is wrong. This is the situation today, as the failure of econometric models manifested itself in the global financial crisis, as well as many other occasions. The tragedy is that these same failed models continue to be used today; no serious alternatives have been developed. The reason for this is that the methodology used to develop these models is inherently…

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Innovation: Ce que nous devons à Clayton Christensen, théoricien majeur du management

Philippe Silberzahn

Clayton Christensen, à l’origine des travaux sur la notion de rupture, est décédé le 23 janvier 2020 à l’âge de 67 ans d’un cancer. Il était un théoricien majeur du management, au même titre que des géants comme Peter Drucker ou Michael Porter, et ses travaux sont plus que jamais d’actualité à l’heure où les grandes entreprises continuent à trouver difficile de répondre aux multiples ruptures de leur environnement. Dans ce qui suit, je propose une synthèse de ses travaux pour montrer en quoi ils peuvent être très utiles.

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Generalizability in Case Study Research

Research Design Review

Portions of the following article are modified excerpts from Applied Qualitative Research Design: A Total Quality Framework Approach (Roller & Lavrakas, 2015, pp. 307-326)

Case study research has been the focus of several articles in Research Design Review. These articles range from discussions on case-centered research (i.e., case study and narrative research) generally — “Multi-method & Case-centered Research: When the Whole is Greater Than the Sum of its Parts,”“Lighting a Path to Guide Case-Centered Research Design: A Six-Step Approach,” and “Ethical Considerations in Case-Centered Qualitative Research” — to articles where the subject matter is specific to case study research — “Case Study Research: An Internal-External Classification.”generalizability

One of the controversies associated with case study research designs centers on “generalization” and the extent to which the data can explain phenomena or situations outside and beyond the specific scope of a particular study. On the one hand, there are researchers…

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Economics as Moral Philosophy

WEA Pedagogy Blog

Among the many dimensions I have listed in “New Directions in Macroeconomics”, the most important is the moral dimension. If we take Adam Smith as the founder, economics was born as a branch of moral philosophy. However, modern economists claim that the subject is purely positive and scientific, and makes no value judgments. Before we can discuss moral dimensions of economic theories, we must counter this claim, and establish that, contrary to claims made by economists, the subject is deeply and inherently normative. The level of cognitive dissonance required to maintain that economics is objective and value free is much greater than that required to maintain that the earth is flat. How apparently rational and sane people can hold such a stance is in itself a puzzle. I have attempted to provide an explanation of this puzzle in Section 2 of “Islam’s Gift: An Economy of Spiritual…

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Is the Crisis of Economics a Crisis of Vision?

WEA Pedagogy Blog

by Dr Carmelo Ferlito

CEO – Center for Market Education, Malaysia

The subject of the crisis experienced by economics as a scientific discipline and its teaching is not new and a call for a reform centred on pluralism, multidisciplinarity and realism was raised by many scholars. However, economics remains under the spotlight for what it is interpreted mainly as the inability to understand and interpret the real economic world. Furthermore, so-called heterodox economists have often criticized mainstream economics on a pro-planning and anti-market basis (ideological ground), rather than with regards to the actual theoretical edifice; in fact, as pointed out by Geoffrey M. Hodgson (Loughborough University London), the neoclassical core of mainstream economics has been used to support socialism as well as capitalism[1]. In a nutshell, different policy recipes did not reflect substantial theoretical differences.

I will recur here to the great Joseph Schumpeter to hint something about…

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الربا في عشر صفحات

مدونة د. رفيق المصري

بسم الله، والحمد لله، والصلاة والسلام على رسول الله، وبعد،

الربا في اللغة والاصطلاح:

الربا في اللغة هو الزيادة، وليست كل زيادة حرامًا. مثال ذلك: الربح جائز.

والربا في الاصطلاح هو كل زيادة (أو نقصان) في مقابل الزمن.

تابع القراءة في الربا في عشر صفحات

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