Tuesday, January 27, 2009

Economics can learn from psychometrics

This post by Andrew Gelman on how statisticians seem to rediscover something that psychometricians have already discovered a ong time ago made me think that economics can benefit from the study of psychometrics as well. I am thinking in particular of index number creation or measures of latent ability such as SATs. Economists use test scores as outcomes all the time yet do not adopt psychometric elements into their research.

One possible avenue is the stress of an economy that was pondered here. Others are possibly comparing WB Governance Indicators to those created using psychometric techniques.

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