Why is economics an art?
At heart, economics is the study of how people make decisions. As such, no matter how mathematical the basic principles of economics may be, it is inherently based on something dirty and imprecise: the actions of irrational people.
Any model that tries to predict or explain the behavior of people will, by definition, have error. When it comes to interpreting what is acceptable error and what is flawed theory may come down to more art than science, because at some point, standard errors and t-test statistics can only go so far.
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