MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 - Lecture 19: Identification and Falsification

MIT 14.04 Intermediate Microeconomic Theory, Fall 2020 Instructor: Prof. Robert Townsend View the complete course: https://ocw.mit.edu/courses/14-04-intermediate-microeconomic-theory-fall-2020/ YouTube Playlist: https://www.youtube.com/watch?v=XSTSfCs74bg&list=PLUl4u3cNGP63wnrKge9vllow3Y2OOOKqF A theory which can always be made consistent with data has no content. A good theory is one which can be rejected. Algorithms can be used with data to show when consumer choice is irrational. Despite the notion that “anything goes” in general equilibrium theory, recent work shows what data are sufficient to allow rejection. License: Creative Commons BY-NC-SA More information at https://ocw.mit.edu/terms More courses at https://ocw.mit.edu Support OCW at http://ow.ly/a1If50zVRlQ We encourage constructive comments and discussion on OCW’s YouTube and other social media channels. Personal attacks, hate speech, trolling, and inappropriate comments are not allowed and may be removed. More details at https://ocw.mit.edu/comments.