How did Feldstein approach economic analysis?
My approach typically began with a clear, often formal, economic model, grounded in principles of public finance and microeconomics. I then sought to test these theoretical frameworks rigorously using empirical data. I was particularly interested in quantifying the effects of economic policies. This meant looking beyond simple assumptions and considering how people would react when faced with different incentives. Ignoring these behavioral responses leads to flawed policy recommendations and misjudgments about economic outcomes.
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