I have actually seen someone postulate an untestable economic model. It was untestable because one of the exogenous variables was unmeasurable. (And so, it was a ridiculus model). The model was something like peace in the middle east was a function of the number of people, worldwide, praying for peace.
So, yes, I believe one could concoct an untestable economic model. It would require that the exogenous variables be unmeasurable.
For more info, see:
http://www.bized.co.uk/educators/he/spreadsheet/section_1.htm
My final question, I hope you can understand it.
If all the values of the endogenous variables are staitc in an economics model,does it imply that testable implications must be able to be generated?
If not, can you raise some economic model (in which all the values of the endogenous variables are staitc) fail to generate testable implications?
thx very much!
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