We would evaluate their success based on how well they could be fit to past economic observations. To the theory nerds out there, do you know of ANY economic models that have not, ex post, been able to back-forecast what has already happened?
If Economic Models Were Like Climate Models
Aug 21st, 2017 by wintercow20
Can you unpack your point a bit for us non economists? Are climate models more dependent on back tests or less easily falsified by future observations than economic models?