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.
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