“What makes a piece of mathematical economics not only mathematics but also economics is, I believe, this: When we set up a system of theoretical relationships and use economic names for the otherwise purely theoretical variables involved, we have in mind some actual experiment, or some design of an experiment, which we could at least imagine arranging, in order to measure those quantities in real economic life that we think might obey the laws imposed on their theoretical namesakes.”

— Trygve Haavelmo

Trygve Haavelmo, "The probability approach in econometrics" in: Supplement to Econometrica. 12 91944), p. 5; Cited in Pearl (2012, 1-2)

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 "What makes a piece of mathematical economics not only mathematics but also economics is, I believe, this: When we set u…" by Trygve Haavelmo?

Trygve Haavelmo 1

Norwegian economist and econometrician 1911–1999

Related quotes

“Intermediate between mathematics, statistics, and economics, we find a new discipline which, for lack of a better name, may be called econometrics. Econometrics has as its aim to subject abstract laws of theoretical political economy or "pure" economics to experimental and numerical verification, and thus to turn pure economics, as far as possible, into a science in the strict sense of the word.”

Ragnar Frisch (1895–1973) Norwegian economist

Ragnar Frisch (1926) "On a Problem in Pure Economics: Translated by JS Chipman." Preferences, Utility, and Demand: A Minnesota Symposium. 1926."
Original in French:
Intermediaire entre les mathematiques, la statistique et l'economie politique, nous trouvons une discipline nouvelle que ion peut, faute de mieux, designer sous le nom de reconometrie. L'econometrie se pose le but de soumettre les lois abstraites de l'economie politique theorique ou l'economie 'pure' A une verification experimentale et numeriques, et ainsi de constituer, autant que cela est possible, l'economie pure en une science dans le sens restreint de ce mot.
1920

“We have defined the main task of economic analysis as the explanation of the magnitudes of economic quantities. The student will find also that the main part of this, as of most other works on the subject, is concerned with the theory of the determination of prices, wages, interest rates, incomes, and the like. He may well inquire, therefore, in the midst of so much mathematics, whether the first task of economics is not the investigation of wealth, or welfare. Some economists have endeavored to restrict the boundaries of the science to the investigation of those quantities which are numerically measurable. Well-being, under such a restriction, would not be part of economics at all.”

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

Source: 1940s, Economic Analysis, 1941, p. 7-8

“What appear to be the most valuable aspects of the theoretical physics we have are the mathematical descriptions which enable us to predict events. These equations are, we would argue, the only realities we can be certain of in physics; any other ways we have of thinking about the situation are visual aids or mnemonics which make it easier for beings with our sort of macroscopic experience to use and remember the equations.”

Celia Green (1935) British philosopher

The Lost Cause (2003)

“We National Socialists want the economic revolution involving the nationalization of the economy…We want in place of an exploitative capitalist economic system a real socialism, maintained not by a soulless Jewish-materialist outlook but by the believing, sacrificial, and unselfish old German community sentiment, community purpose and economic feeling. We want the social revolution in order to bring about the national revolution.”

Gregor Strasser (1892–1934) German politician, rival of Adolf Hitler inside the Nazi Psrty

As quoted in The Third Reich: A History of Nazi Germany, Thomas Childers, New York: Simon & Schuster, 2017, p. 84. November 1925 Reichstag speech.

“It is arguable that a closer contact between ethics and economics can be beneficial not only to economics but even to ethics. Many ethical problems have what we have been calling 'engineering' aspects, and some of them do, in fact, involve economic relations.”

Amartya Sen (1933) Indian economist

Chap. 3 : Freedom and Consequences
1990s, On Ethics and Economics (1991)

“To know that we are measuring real change we need to have a strong theoretical base.”

C. West Churchman (1913–2004) American philosopher and systems scientist

C. West Churchman, (1970) in: Systems and management annual. Vol 1, p. 338
1960s - 1970s

“The economic management and planning system was not set up so that we can play at capitalism; and some people are shamefully playing at capitalism; we know this, we see it, and thismust be set right.”

Fidel Castro (1926–2016) former First Secretary of the Communist Party and President of Cuba

Rectifying the Errors of the Cuban Revolution (1986)

“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

“The solution of the most important problems of the theoretical social sciences in general and of theoretical economics in particular is thus, closely connected with the question of theoretically understanding the origin and change of 'organically' created social structures.”

Carl Menger (1840–1921) founder of the Austrian School of economics

Source: Investigations into the Method of the Social Sciences, 1883, p. 147

“We do not aim at « mathematical rigour » of exposition, which in theoretical physics often amounts to self-deception.”

Evgeny Lifshitz (1915–1985) Soviet physicist

"Quantum Mechanics: Non-relativistic Theory", together with L. D. Landau, translated by John Menzies (third edition 1991), p. xi

Help us to complete the source, original and additional information

Trygve Haavelmo 1

Related quotes

Related topics