Friday, December 08, 2006

I Am Not Trying To Explain Behavior

I am trying to better observe it.

This is my new motto. Economics is about human action. You cannot truly observe human action ex post. We cannot make inferences from, "he told us his income is $X and he bought a TV." Much less from, "Best Buy sold a thousand TVs at $X, and the county's average income is $Y." You just ignore too much.

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