The Third Principle: Empiricism & Economic Methods | Economics For Everyone

Empiricism is simply using data to analyze the world and test models. Questions such as “how can we encourage people to drive electric cars?” rely on empiricism. The first two principles of economics, optimization and equilibrium, describe the world theoretically. The last principle, empiricism, which is explored here, ties concepts to the “real world”. Professor John List delves into the scientific method, capturing empiricism and economic methods. Chapters 00:18 Empiricism and Data 01:19 Models as simplifications 03:05 Good models 03:42 What do economists do with bad models? 04:56 New economic models -- Setting aside math, E4E helps students everywhere think like economists and understand how economic thinking can make the world a better place. Whether you're an educator, a student, or a lifelong learner, Economics for Everyone is for you! Register at https://econ4everyone.uchicago.edu to access more than 60 videos featuring UChicago professors and researchers in our free microeconomics curriculum, available in English and Spanish.