Economic Time

Despite these challenges, we have certainly come a long way. We have learned to rely on "natural experiments" something like studying the resilience of a roofing structure by investigating the aftermath of a hurricane to compensate for the unavailability of controlled experimentation. The rational expectations revolution and recent developments on bounded rationality and experimental economics continue to perfect our ability to construct sensible models. However, incorporating the timing with which economic events take place into economic models and reconciling the time scale of economic behavior with that of available data, remains a difficult barrier to our comprehension of economics.