Do Value Judgements Affect Testing Economic Theory?
Analyses the influence of value judgements in the mechanics of testing econometric theories against empirical data. The orthodox view of mainstream, positive economics is that value judgements play no part in the above process. Contests this view; defines value judgements and shows the orthodox conception to be too narrow, compared with the meaning and use of the term in other disciplines. Reviews many published examples from the 1970s and 1980s and ways in which value judgements have affected testing procedures in economics. Hypothesis testing via econometric techniques is fraught with value judgements because the application of statistical methodology is not a determinate, neutral or objective process.
