00:02
The first one is cannot be tested empirically.
00:10
This is wrong.
00:11
Many economic models can be tested.
00:16
Not every single one can, but in general, many models have empirical predictions.
00:22
They say, if this is the theory, then we should observe this in the real world.
00:26
So absolutely, many models can be tested empirically, right? b, limited to closely related variables.
00:40
There's absolutely no statement that this has to be true, right? i mean, in some cases they are, but no need to be.
00:53
Right.
00:53
Of course, sometimes we are interested in closely related variables, but economists have built models and done studies on incredibly diverse variables all over the world.
01:06
I know of studies that think about government corruption and highway quality.
01:13
I know of studies that think about wind direction and economic growth.
01:17
I know of studies that connect natural resources to women's education.
01:22
You know, these are all totally fine.
01:27
C...