Theoretical Assumptions and Nonobserved Facts.

This article discusses the author's opinion on how economic models are represented in professional journals in the U.S. The author criticizes the lack of relevance in the current academic teaching and research in economics. The author emphasized on the political influence of the lack of empirical foundation in speculative economic theory. The author postulated that the representation of a new model of economics is usually centered on a step-by-step derivation of its formal properties. However, policy oriented models are gaining favor over descriptive ones. The author then concluded that the Establishment of systematic cooperative relationships across the traditional frontiers now separating economics from these adjoining fields is hampered by the sense of self-sufficiency resulting from what is characterized as undue reliance on indirect statistical inference as the principal method of empirical research.