The role of econometrics in economic science: An essay about the monopolization of economic methodology by econometric methods

Econometrics is seen as the dominant method in terms of applicability, accuracy and efficiency in economic science. It is widely used and other methods have been reduced to marginal contributions. Econometricians behave as if their techniques were universal when in fact they are not. If alternative methods are accepted, one can largely eliminate the restrictions and distance to reality of econometrics. The article debates the pathways for a satisfactory economics in a context where theoretical and methodological pluralism is entering even in mainstream ideas. The historical construction of econometrics as the main method in economics and the limitations and possibilities of this tool are explored, underlining the need of pluralism.

► This article debates the role of econometrics in economic science.
► The establishment of econometrics as a dominant technique in economics is explained.
► Central assumptions of the method are discussed.
► Opinions of several authors regarding methodological formalism are debated.
► Conclusions underline the need of pluralism to analyze economy today.