Empirical Parametrization
There is substantial debate in the economics and finance literature with respect to the empirical value of . While relatively high values of (as high as 50 in some models) are necessary to explain the behavior of asset prices, controlled experiments lead to the conclusion that individuals have close to one.
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Famous quotes containing the word empirical:
“To develop an empiricist account of science is to depict it as involving a search for truth only about the empirical world, about what is actual and observable.... It must involve throughout a resolute rejection of the demand for an explanation of the regularities in the observable course of nature, by means of truths concerning a reality beyond what is actual and observable, as a demand which plays no role in the scientific enterprise.”
—Bas Van Fraassen (b. 1941)