Ragnar Frisch: Theory

“In reality the cycles we have the occasion to observe are generally not damped. How can the maintenance of the swings be explained? Have theses dynamic laws deduced from theory and showing damped oscillations no value in explaining the real phenomena, or in what respect do the dynamic laws need to be completed in order to explain the real happenings? They (dynamic laws) only form one element of the explanation: they solve the propagation problem. But the impulse problem remains.”

Ragnar Frisch Propagation problems and impulse problems in dynamic economics

Source: 1930s, Propagation problems and impulse problems in dynamic economics, 1933, p. 197

Law , Problem , Reality

“I believe that economic theory has arrived at a point in its development where the appeal to quantitative empirical data has become more necessary than ever. At the same time its analyses have reached a degree of complexity that require the application of a more refined scientific method than that employed by the classical economists.”

Ragnar Frisch

Ragnar Frisch (1926); Quoted in: " Ragnar Frisch 1895-1995 https://www.ssb.no/a/histstat/doc/doc_199403.pdf." O. Bjerkholt, 1994.
1920

Time

“An important object of the Journal should be the publication of papers dealing with attempts at statistical verification of the laws of economic theory, and further the publication of papers dealing with the purely abstract problems of quantitative economics, such as problems in the quantitative definition of the fundamental concepts of economics and problems in the theory of economic equilibrium.
The term equilibrium theory is here interpreted as including both the classical equilibrium theory proceeding on the lines of Walras, Pareto, and Marshall, and the more general equilibrium theory which is now beginning to grow out of the classical equilibrium theory, partly through the influence of the modern study of economic statistics. Taken in this broad sense the equilibrium problems include virtually all those fundamental problems of production, circulation, distribution and consumption, which can be made the object of a quantitative study. More precisely: The equilibrium theory in the sense here used is a body of doctrines that treats all these problems from a certain point of view, which is contrasted on one side with the verbal treatment of economic problems and on the other side with the purely empirical-statistical approach to economic problems”

Ragnar Frisch

Frisch (1927). as quoted in: Bjerkholt, Olav, and Duo Qin. A Dynamic Approach to Economic Theory: The Yale Lectures of Ragnar Frisch. Routledge, 2010: About "Oekonometrika"
1920

Law , Problem , Sense , Study

“Questions of convergence under an infinite time horizon will depend so much on epsilontic refinements in the system of assumptions — and on the infinite constancy of these refinements — that we are humanly speaking absolutely certain of getting infinite time horizon results which have no relevance to concrete reality. And in particular we are absolutely certain of getting irrelevant results if such epsilontic exercises are made under the assumption of a constant technology. 'In the long run we are all dead.' These words by Keynes ought to be engraved in marble and put on the desk of all epsilontologists, in growth theory under an infinite horizon.”

Ragnar Frisch

Ragnar Frisch (1970) "Econometrics in the World of Today." University of Oslo, Institute of Economics, 1971; As quoted in Robert Johnston, Graham Clark. Service Operations Management: Improving Service Delivery. Pearson Education, 2005. p. 347
1970s and later

Exercises , Question , Reality , Time

“Personally, I never met Knut Wicksell. I saw him once when he delivered a lecture in Oslo, but being an unassuming student at the time, I did not have the courage to talk to him. So my knowledge of his theory came only through his writings. That, however, was a very intense and absorbing form of making his acquaintance. Already from my early student days, I read his writings (in German and Swedish) avidly. And I continued to do so later.
When I started my study on Wicksell, I found that his works were not easy reading. Often it was only at the third or fourth reading that I grasped his ideas. Invariably, each new reading made me more and more enthusiastic. Sometimes it happened that I thought I had finally caught him in an inconsistency or in unclear thinking. Every time this happened, it turned out, however, that the error was mine.”

Ragnar Frisch

Frisch (1952) " Frish on Wicksell http://www.sv.uio.no/econ/om/tall-og-fakta/nobelprisvinnere/ragnar-frisch/published-scientific-work/Scan1.pdf" p. 654
1940-60s

Error , Idea , Courage , Knowledge

“To proceed from assumptions about an abstract theoretical set-up and from them to draw conclusions about the observable world and to test - by rough or more refined means - whether the conformity with observations is "good" enough, is indeed the time honoured procedure that all empirical sciences, including the natural sciences, have used. I shall therefore not plead guilty of heresy even if I do work with choice-theory concepts that are not invariant under a general monotonic transformation of the utility indicator.”

Ragnar Frisch

Ragnar Frisch. " A complete scheme for computing all direct and cross demand elasticities in a model with many sectors http://econ.ucdenver.edu/beckman/Research/readings/frisch-demand-econometrica.pdf." Econometrica 27.2 (1959), p. 178; Cited in: Chipman, John S. " http://www.sv.uio.no/econ/om/tall-og-fakta/nobelprisvinnere/ragnar-frisch/Chipman%20paper[1.pdf The contributions of Ragnar Frisch to economics and econometrics]." ECONOMETRIC SOCIETY MONOGRAPHS 31 (1998): 58-110.
1940-60s

World , Nature , Science , Time