Econometrics Theory Is the Refusal

Econometrics

Theory is the refusal to discuss what is immediately present. Whether "transcending" or "ignoring" a present situation, theory may see what is not there and prepare for what may be. Theory projects reality into a discursive form. Econometrics is a hybrid of practical and theoretical disciplines, and one cannot choose between theoretical and practical approaches. The application of the policy is kept practically viable by this theoretical scaffolding. Drawing upon the theoretical literature, our proposal is to manage the growth of the global economy.

The beginning of a research venture must first acknowledge its roots. The discussion of economic growth has been an essential part of the discussion of ethics in commerce and governance. How do economies grow, and what level is optimal? Once a general growth goal is established, leaders in policy and administration can set out procedures for attaining it.

The powers that be are bound by the common interest of prosperity, and the acceptance that individually, each member is relatively powerless. The common good may be ultimately made, or the powerful may keep their power. Prior to defining these powerful members, let us lay down for argument's sake what power is in essence. Without a clear understanding of power in theory, a quixotic plunge into an economic policy carries major risk. This clear denotation of power in theory, combined with an understanding of globalization as a paradigmatic environment, will cast a profile of whom and what I here refer to as "the powers that be." Then we can recommend a course of action in economic policy to the correct audience.

Makinw builds on Solow's theory of growth to include human capital.