The Empirical Foundations of Keynesian Economics
KEYNES' SYSTEM of economics is built on the foundations of several specific hypotheses concerning human behavior. The principal conclusions stand or fall on the validity of some of these hypotheses; other hypotheses contained in the system may be less strategic. Confusion apparently exists concerning such questions as:
ments, I shall, in this contribution, try to define sharply the Keynesian hypotheses and analyze the functioning of the model system to elucidate the more strategic hypotheses. Then I shall survey various results in the field of empirical economics, especially econometrics, and confront the hypothetical system with our present knowledge of the facts.