Realist econometrics? Nell and Errouaki on methodological institutionalism, regularity and uncertainty

Nell and Errouaki state that their intent is to reformulate econometrics along more realistic lines. In so doing they also explicitly acknowledge a debt to realist debates in methodology, notably in relation to the construction of argument regarding the nature of science, objectivity and laws in Chapter 4 (Nell and Errouaki, 2013: xii). This requires some context, since seeking to be more realistic and accepting the tenets of realism are not necessarily the same. One is theory and application, and the other is argument regarding the grounds of theory and application. Moreover, the status of econometrics in relation to realism is not an uncontroversial subject. Nell and Errouaki’s work is worth careful consideration because its themes are so little considered within econometrics, despite their relevance for the role and realisticness of econometrics. The vast majority of work on econometrics concerns problems of method only – the technical limits of methods and resolutions to technical problems – very little of it concerns how (and whether) an econometric inquiry should be structured and pursued in order to be adequate.

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