tailieunhanh - Toward improved models for decision making in economics

We elaborate upon four major revelations in statistical science toward improving traditional models for decision-making in social science, in particular in economics. | Asian Journal of Economics and Banking 2019 03 01 1-19 1 ĨRƯỜA Asian Journal of Economics and Banking ISSN 2588-1396 http . vn Home Toward Improved Models for Decision Making in Economics Hung T. Nguyen1 2 Department of Mathematical Sciences New Mexico State University USA 2Faculty of Economics Chiang Mai University Thailand Article Info Abstract Received 9 12 2018 Accepted 15 01 2019 Available online In Press Keywords Bayesian statistics Bohmian mechanics Decision-making Econometric models Expected utility Finance Machine learning Predictions P-values Quantum mechanics Quantum probability JEL classification CIO MSC2010 classification 60A99 62C99 We elaborate upon four major revelations in statistical science toward improving traditional models for decision-making in social science in particular in economics. These revelations concern how to repair statistical inference procedures based on the notion of p-values how to correctly obtain predictive modeling how to improve expected utility theory in economics and how to faithfully model economic dynamics . tCorresponding author Hung T. Nguyen Department of Mathematical Sciences New Mexico State University USA. Email addrcss hunguycn@ 2 Asian Journal of Economics and Banking 2019 3 1 1-19 1 INTRODUCTION If we ask what is new in statistical science at the dawn of the 21st century we may not get a clear answer instead we get either big data or data science and this sounds like until now everything is fine as far as statistical science is concerned so that let s face the challenging data-driven problems which obviously will be important for economic applications . Why new things are important in any kinds of sciences physical or social Well remember the dawn of the last century from Newton mechanics to Einstein s relativity and quantum mechanics. If we just view data science as the new things to focus on we might ignore the crucial fact that as a common definition data science is a combination of .