“In economics the tendency of theory to lag behind observation seems to be endemic, and, as theorists, few of us consider this to be a "terrible state." But as noted by Lakatos (1978, p. 6), "where theory lags behind the facts, we are dealing with miserable degenerating research programmes."”

Source: "Theory, experiment and economics," 1989, p. 168.

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Vernon L. Smith 20
American economist 1927

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