From the Deseret News today, April 30, 2013
In my last article, I talked about economics as a science and focused on the role of statistical analysis in evaluating natural experiments. This time I want to talk about economic theory.
The scientific method requires hypothesis testing. Experiments test hypotheses and ultimately prove them right or wrong. Based on this acceptance or rejection of a hypothesis, scientists go back to their original theories and revise them as needed. This is the gist of the scientific method.