But in this instance the relatively optimistic official projections jibe with economic intuition.
Firms do not remain indefinitely on a high or low growth path, a fact that accords with simple economic intuition.
It turned out — and still turns out — that people's economic intuition, if untutored by models, missed a major possibility that is in fact probably the main story.
By the mid nineteen-nineties, many economists, including some very eminent ones, were concerned that the formalization of economics had been taken too far: that it had come to dominate the subject at the expense of economic intuition.
The idea that deep recessions are generally followed by rapid rebounds is usually attributed to the late Victor Zarnowitz, an economist associated with the Conference Board who died last year, and it has some sound economic intuition behind it.
The EPI, for example, last year claimed a minimum wage of $9.80 per hour would create 100,000 jobs.But David Neumark and William Wascher, who have long studied, and been critical, of the minimum wage, maintain the evidence bears out basic economic intuition: a higher minimum wage costs some low-skilled workers their jobs while helping those who keep them.
Its new anti-spam system also uses economic intuition, by requiring senders of e-mail to state clearly whether they are sending spam, and to back that statement with their own money in the form of a bond that will be forfeited if it turns out that they are lying.
This is in line with the economic intuition.
The economic intuition follows in the subsequent propositions.
The economic intuition behind this result is the following.
The coefficients of control variables in mean-value regression are consistent with the economic intuition.
