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The Ludwig von Mises Institute  Advancing Austrian Economics,
Liberty, and Peace  Advancing the scholarship of liberty in the
tradition of the Austrian School  Search Mises.org
Econometrics: A Strange Process  Mises Daily: Monday, July 15,
2002 by   Until recently, most macroeconomic forecasters,
assisted by mathematical models, were predicting economic
recovery and rising stock indices. But the market has reminded
us that reality doesn't always correspond to the predictions of
those who claim the mantle of "science." As is so often the
case, those economists who were more humble in their pretensions
to knowledge avoided such embarrassment.  The Methodological
Divide  The Austrian School of economics is known for its
aversion to mathematical modeling of human behavior. The
neoclassical mainstream, on the other hand, is quite fond of
this approach, and uses the mathematical method for just about
any problem. I think it is fair to say that most m