| Description |
Austrian economists exist at the edge of their field. Centering their theory on the subjective actions of individuals, Austrians reject the use of econometrics and instead rely on fundamental theories of value to construct their arguments. Their rejection of econometrics leaves them excluded from economic academic journals. I argue by adopting econometric methods, Austrians can engage in econometrics in a fundamentally different way which both highlights the problems of econometrics and improves the methods, while never compromising their recognition of inherent flaws in econometric modeling. I argue that this engagement should occur via the adoption of Bayesian econometric methods, which will allow Austrians access to the problematic world of econometrics while simultaneously incorporating fundamental theoretical structure from their Austrian position. In engaging with econometrics via Bayesian analysis, Austrians will better elucidate the problematic nature of theoretical econometrics while enforcing more critical analysis of both the prior assumptions and succeeding interpretation associated with modeling, offering an approach to econometrics which highlights the flawed conception of econometrics as objective and instead proposing subjective interpretation of econometrics, and disseminating Austrian perspectives through increased publication. |
