The Principle of Economy in Scientific Explanation
There is a principle of economy of scientific explanation, in economics stressed especially by Milton Friedman, stating that observed facts should be explained by the least possible theoretical assumptions. Following this principle a minimal macroeconomic dynamics, with a generalized value function but without the two dogmas (cf. Section 1.2), was constructed in Chapter 3.
KeywordsBusiness Cycle Stochastic Optimization Saving Rate Scientific Explanation Growth Path
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