Re:A plan to change how Harvard teaches economics
by fujimotos on Friday June 14, 2019 @08:26AM
(#20182377)
Indeed. Even within a single economy, plotting a scatter plot for enough data points (e.g. 25 years) makes Philips curves just broken.
It was a gong moment for me when I came across a short passage discussing its foundedness.
* Freedman, Pisani and Purves Statistics, 4th edition (p153)
Where empirical studies were actually available, they usually had large numbers of parameters, they did not test on diverse datasets (e.g. Philips curves across different economies), and they never considered an alternative hypothesis or simple baseline.