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What Use is Economic Theory?

WhatUseis EconomicTheory? CaliforniaatBerkeleyAugust, examinehowneoclassicaleconomictheoryis alsodescribewhatI IsEconomicsBecominga HardScience? 29--30 October,1992,Paris, (inFrench) Cartelier, EconomieDevient-ElleUneScienceDure? worthwhilethingtodo? isa well-constructedeconomicmodelhasanaesthe ticappealwell-capturedbythefollowingline sfromWordsworth: Mightyis thecharmOftheseabstractionstoa mindbesetWithimages,andhauntedbyherselfA ndspeciallydelightfuluntomeWasthatclears ynthesisbuiltupaloftSogracefully. Noonecomplainsaboutpoetry,music,numberth eory,orastronomyasbeing useless, thinkthatonecouldarguea ,whenpressed,mosteconomictheoristsadmitt hattheydoeconomicsbecauseit is thinkpurelyaestheticconsiderationswouldn otprovidea is notjustanintellectualpursuitforitsownsak e,butit apolicyscienceand,assuch, policysciencePartoftheattractionandthepr omiseofeconomicsisthatit claimstodescri

What Use is Economic Theory? Hal R. Varian Why is economic theory a worthwhile thing to do? There can be many answers to this question. One obvious answer …

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