CHAPTER 1
Introduction
Marcel Boumans
Department of Economics, University of Amsterdam, Amsterdam, The Netherlands
E-mail address:
[email protected]
Abstract
Measurement in Economics: a Handbookaims to serve as a source, reference,
and teaching supplement for quantitative empirical economics, inside and out-
side the laboratory. Covering an extensive range of fields in economics: econo-
metrics, actuarial science, experimental economics, and economic forecasting,
it is the first book that takes measurement in economics as its central focus. It
shows how different and sometimes distinct fields share the same kind of mea-
surement problems and so how the treatment of these problems in one field can
function as a guidance in other fields. This volume provides comprehensive and
up-to-date surveys of recent developments in economic measurement, written at
a level intended for professional use by economists, econometricians, statisti-
cians and social scientists.
The organization of this Handbook follows the framework that is given in this
introductory chapter. It consists of four major parts: General, Representation in
Economics, Representation in Econometrics, and Precision.
1.1. Introduction
Measurement in economics is the assignment of numerals to a property of ob-
jects or events – ‘measurand’ – according to a rule with the aim of generating
reliable information about these objects or events. The central measurement
problem is the design of rules so that the information is as reliable as possi-
ble. To arrive at reliable numbers for events or objects, the rules have to meet
specific requirements. The nature of these requirements depends on the nature
of the event or object to be measured and on the circumstances in which the
measurements will be made.
Measurement in economics is not a unified field of research, but fragmented
in various separate fields with their own methodology and history, for instance
econometrics, index theory, and national accounts. This volume will discuss
these various fields of studies, which have developed their own specific re-
quirements for measurement, often independently of each other. Despite this
fragmentation it appears that these separate fields share similar problems and
Measurement in Economics: A Handbook © 2007 Elsevier Inc.
Marcel Boumans (Editor) All rights reserved