“All economic decisions, whether private or business, as well as those involving economic policy, have the characteristic that quantitative and non-quantitative information must be combined into one act of decision. It would be desirable to understand how these two classes of information can best be combined.”

—  Oskar Morgenstern

Attributed to Morgenstern in: John H. McArthur, ‎Bruce R. Scott (1969), Industrial planning in France. p. 21.

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "All economic decisions, whether private or business, as well as those involving economic policy, have the characteristi…" by Oskar Morgenstern?
Oskar Morgenstern photo
Oskar Morgenstern 5
austrian economist 1902–1977

Related quotes

Ragnar Frisch photo

“Two important features in the modern development of economics are the application of mathematics to abstract economic reasoning… and the attempt at placing economics on a numerical and experimental basis by an intensive study of economic statistics.
Both these developments have a common characteristic: they emphasize the quantitative character of economics. This quantitative movement in our estimation is one of the most promising developments in modern economics. We also consider it important that the two aspects of the quantitative method referred to should be furthered, developed, and studied jointly as two integrating parts of economics.
We therefore venture to propose the establishment of an international periodical devoted to the advancement of the quantitative study of economic phenomena, and especially to the development of a closer relation between pure economics and economic statistics.
We believe that the scope of the new journal would be happily suggested if it is called "Oekonometrika."”

Ragnar Frisch (1895–1973) Norwegian economist

Accordingly, the quantitative study of economic phenomena here considered may be termed econometrics.
Frisch (1927) as quoted in Divisia 1953, pp.24-25; Cited in: Bjerkholt, Olav. " Ragnar Frisch and the foundation of the Econometric Society and Econometrica http://www.ssb.no/a/histstat/doc/doc_199509.pdf." ECONOMETRIC SOCIETY MONOGRAPHS 31 (1998): 26-57.
Lead paragraph of a memorandum on the importance of establishing the journal "Oekonometrika"
1920

“is a process for encoding quantitative information.”

Richard Boyatzis (1946) American business theorist

Source: Transforming qualitative information (1998), p. 4.

Tjalling Koopmans photo

“Decisions and plans made by others… [can be judged to be] quantitatively at least as important as the primary uncertainty arising from random acts of nature and unpredictable changes in consumers' preferences.”

Tjalling Koopmans (1910–1985) Dutch American economist

Source: Three Essays (1957), p. 163; as cited in: Richard Langlois (1989) Economics as a Process. p. 181

“[There will be movement toward] behavioral economics… [which] involves study of those aspects of men’s images, or cognitive and affective structures that are more relevant to economic decisions.”

Kenneth E. Boulding (1910–1993) British-American economist

Kenneth Boulding (1958) "Contemporary Economic Research".  In Donald P. Ray (ed.). Trends in Social Science, pp. 9-26. as cited in: James Alm (2011) Testing Behavioral Public Economics Theories in the Laboratory http://econ.tulane.edu/RePEc/pdf/tul1102.pdf. Working paper.
Alm proceeds by stating: "Given the essential role of psychological insights in the field, together with the obvious truism that all economics concerns “behavior” in one form or another, a more descriptive name for the field is perhaps “cognitive economics”, as recognized early on by Boulding (1958)."
1950s

“In spite of assigning little influence of economists' preachings on actual public policy, I do not believe that economists' influence is negligible. The reconciliation of these views lies in the fact that economists are scientists as well as preachers. Our science seeks to understand how economic institutions and economic systems work, and no informed person can deny that we have made much progress in this work.”

George Stigler (1911–1991) American economist

"The Effect of Government on Economic Efficiency." 1988

Don Soderquist photo

“Today’s great leaders will make sure they have all the important information, appropriate discussion, and reflection so that they can act decisively when time is of great importance.”

Don Soderquist (1934–2016)

Don Soderquist “ The Wal-Mart Way: The Inside Story of the Success of the World's Largest Company https://books.google.com/books?id=mIxwVLXdyjQC&lpg=PR9&dq=Don%20Soderquist&pg=PR9#v=onepage&q=Don%20Soderquist&f=false, Thomas Nelson, April 2005, p. 119.
On Leading Well

Dwight D. Eisenhower photo

“My decision to attack at this time and place was based on the best information available.”

Dwight D. Eisenhower (1890–1969) American general and politician, 34th president of the United States (in office from 1953 to 1961)

Notes for an announcement, written in advance of the Normandy invasion, in case of its failure, but never delivered (June 1944) http://doinghistoryproject.tripod.com/id17.html; reported in John Gunther, Eisenhower: The Man and the Symbol (1952), p. 41
1940s
Context: Our landings in the Cherbourg-Havre area have failed to gain a satisfactory foothold and I have withdrawn the troops. My decision to attack at this time and place was based on the best information available. The troops, the air and the Navy did all that bravery and devotion to duty could do. If any blame or fault attaches to the attempt, it is mine alone.

Theodore Roosevelt photo

“We cannot possibly do our best work as a nation unless all of us know how to act in combination as well as how to act each individually for himself.”

Theodore Roosevelt (1858–1919) American politician, 26th president of the United States

1900s, The Strenuous Life: Essays and Addresses (1900), National Duties
Context: Besides each one of us working individually, all of us have got to work together. We cannot possibly do our best work as a nation unless all of us know how to act in combination as well as how to act each individually for himself. The acting in combination can take many forms, but of course its most effective form must be when it comes in the shape of law —that is, of action by the community as a whole through the lawmaking body.

Barry Boehm photo

“The dictionary defines "economics" as "a social science concerned chiefly with description and analysis of the production, distribution, and consumption of goods and services." Here is another definition of economics which I think is more helpful in explaining how economics relates to software engineering.
Economics is the study of how people make decisions in resource-limited situations.
This definition of economics fits the major branches of classical economics very well.
Macroeconomics is the study of how people make decisions in resource-limited situations on a national or global scale. It deals with the effects of decisions that national leaders make on such issues as tax rates, interest rates, foreign and trade policy.
Microeconomics is the study of how people make decisions in resource-limited situations on a more personal scale. It deals with the decisions that individuals and organizations make on such issues such as how much insurance to buy, which word processor to buy, or what prices to charge for their products or services.”

Barry Boehm (1935) American software engineer

Source: Software engineering economics. (1984), p. 4

Ragnar Frisch photo

“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 (1895–1973) Norwegian economist

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

Related topics