by Frank Shostak

Economists have always been envious of the practitioners of the natural and exact sciences. They have thought that introducing the methods of natural sciences such as a laboratory where experiments could be conducted could lead to a major breakthrough in our understanding of the world of economics.

But while a laboratory is a valid way of doing things in the natural sciences, it is not so in economics. Why is that so?

A laboratory is a must in physics, for there a scientist can isolate various factors relating to the object of inquiry.

Although the scientist can isolate various factors he doesn’t, however, know the laws that govern these factors.

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The views expressed on are not necessarily those of the Austrian Economics Center.