ABSTRACT
This chapter investigates the concept of error in economic theories, models and equations, beginning with the initial discussions on the nature of randomness and determinism – a crucial departure for econometrics. Indeed, when interpretations of probability and certainty were contraposed, after the 1930-3 discussions on the pendulum and the contribution made by Slutsky, it was obvious that the crux of the matter was that the theoretical status of the ‘error’ was not clear.
