Analysis of the Changing Sub-sytem (CSS): Developing and Testing of Hypotheses
Chapter Chapter 7 in The Entrepreneur in Rule-Based Economics, 2017, pp 57-63 from Springer
Abstract Developing and testing of hypotheses in a rule-based economic inquiry consists of four steps: specification of the CSS for the two analytical levels of rules and operations, identification of carrier subgroups, formulation of hypotheses and choice of technique for hypothesis testing. As the choice of technique is critical to conduct valid hypothesis tests, we examine how existing techniques may be employed in rule-based inquiries. In doing so, the sections distinguish hermeneutic from statistical approaches and agent-based simulations. Guidance focuses on the merits and challenges of the said techniques as they apply to rule-based analysis and provides references to detailed accounts of the respective methods.
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