Criticism and Derivation of Stylized Facts
Already in an early response Solow pinpointed a possible problem of stylized facts, by stating that there "is no doubt that they are stylized, though it is possible to question whether they are facts." The criticized practice of deriving stylized facts ad hoc is still quite prevalent in economics. Still, some possible approaches to derive stylized facts from empirical evidence have been suggested, such as surveying experts, statistically analysing large data sets (especially suitable for financial markets) or aggregating both qualitative and quantitative data from different empirical methods by following a systematic process.
Read more about this topic: Stylized Fact
Famous quotes containing the words criticism, stylized and/or facts:
“Parents sometimes feel that if they don’t criticize their child, their child will never learn. Criticism doesn’t make people want to change; it makes them defensive.”
—Laurence Steinberg (20th century)
“Animals are stylized characters in a kind of old saga—stylized because even the most acute of them have little leeway as they play out their parts.”
—Edward Hoagland (b. 1932)
“Great abilites are not requisite for an Historian; for in historical composition, all the greatest powers of the human mind are quiescent. He has facts ready to his hand; so there is no exercise of invention. Imagination is not required in any degree; only about as much as is used in the lowest kinds of poetry. Some penetration, accuracy, and colouring, will fit a man for the task, if he can give the application which is necessary.”
—Samuel Johnson (1709–1784)