The very processes of measurement
and observation influence the subject and change it.
d. Uniqueness - Experiments in economics, therefore, tend to be unique.
They cannot be repeated even when the SAME subjects are involved,
simply because no human subject remains the same for long. Repeating
the experiments with other subjects casts in doubt the scientific value
of the results.
d. The undergeneration of testable hypotheses - Economic theories do
not generate a sufficient number of hypotheses, which can be subjected
to scientific testing. This has to do with the fabulous (i.e.,
storytelling) nature of the discipline.
In a way, economics has an affinity with some private languages. It is
a form of art and, as such, it is self-sufficient and self-contained.
If certain structural, internal constraints and requirements are met -
a statement in economics is deemed to be true even if it does not
satisfy external (scientific) requirements. Thus, the standard theory
of utility is considered valid in economics despite overwhelming
empirical evidence to the contrary - simply because it is aesthetic and
mathematically convenient.
So, what are economic "theories" good for?
Economic "theories" and narratives offer an organizing principle, a
sense of order, predictability, and justice.
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