The idea that simplicity matters in science is as old science itself, with the much cited example of Occam's razor, 'entia non sunt multiplicanda praeter neccessitatem: are not to be multiplied beyond necessity. A problem with Occam's razor is that nearly everybody seems to accept it, but few are able to define its exact meaning and to make it operational in a non-arbitrary way. Using a multidisciplinary perpective, with contributions from philosophers, mathematicians, econometricians and economists, this monograph examines simplicity by asking six questions. What is meant by simplicity? How is simplicity measured? Is there an optimum trade-off between simplicity and goodness-of-fit? What is the relation between simplicity and empirical modelling? What is the relation between simplicity and prediction? What is the connection between simplicity and convenience? The book concludes with reflections no simplicity by Nobel laureates in economics.
ARNOLD ZELLNER is H.G.B. Alexander Distinguished Service Professor Emeritus of Economics and Statistics at the University of Chicago.
HUGO A. KEUZENKAMP is Professor of Economics at the University of Amsterdam and director of SEO Amsterdam Economics.
MICHAEL MCALEER is Professor of Economics at the University of Western Australia in Perth.
The Enigma of simplicity
Part 1 The importance of simplicity
Part 2 Simplicity in theory and practice