Symposium on Marshall's Tendencies: 4 Comments on Marshall's Tendencies

Abstract

Professor Sutton opens his lively monograph on the nature of economic theory with the following question: is it possible to find economic models that work? He uses the question to guide us on a methodological tour with Marshall's characterization of economic theory as the point of departure. I must say I enjoyed the trip. Along the way, the animating issue of what works in economics could hardly have been addressed without dealing with issues in verification, and the author's arguments include an appraisal of what he considers as standard econometric methods. In these comments, I will revisit at some length one of the key sites on John Sutton's tour bringing along a view of modern econometrics which is somewhat different from his and which affords a different perspective on the Marshallian paradigm.