The paper lists salient characteristics of the certainty theory of consumer choice and discusses the import of prominent empirical analyses of the theory. All of them reject the theory's empirical relevance which suggests that the theory is unfit to analyze consumer choice in an uncertain world....

The paper begins with a figurative representation of the contrast between present-day and formal applied econometrics. An explication of the status of bridge principles in applied econometrics follows. To illustrate the concepts used in the explication, the paper presents a simultaneous-equation...

As most econometricians will readily agree, the data used in applied econometrics seldom provide accurate measurements for the pertinent theory's variables. Here, Bernt Stigum offers the first systematic and theoretically sound way of accounting for such inaccuracies. He and a distinguished...

Contents -- To the Reader -- Acknowledgments -- 1 Introduction -- 2 A Vision of a Science of Economics -- 3 Empirical Relevance -- 4 Qualitative Response Models -- 5 A Cross-Section Analysis of an Economic Theory -- 6 Theory-Data Confrontations with Time-Series Data -- 7 Analysis of Positively...