Comments on: Economists Versus Physics

By: Unlearningecon

Unlearningecon — Fri, 15 Feb 2013 08:05:50 +0000

Yeah, I’m aware of that book and must read it.

By: gerry

gerry — Fri, 15 Feb 2013 06:13:20 +0000

Philip Mirowki wrote a book about how the marginal revolution was just a cheap imitation of Hamiltonian physics. I think it was titled “More Heat Than Light” I think.

By: Sorry, Economists: The Crisis is a Huge Problem for Your Discipline « Unlearning Economics

Wed, 13 Feb 2013 15:03:47 +0000

[...] again, an economist insists on analogies to hard sciences that make no [...]

By: Oscar Cox

Oscar Cox — Wed, 06 Feb 2013 19:24:33 +0000

You might be interested in taking a look at the people who dispute the status of economics as science at all. There are more and more of them.

By: Unlearningecon

Unlearningecon — Wed, 06 Feb 2013 15:36:23 +0000

Yeah. It’s especially amusing given the evidence on rent control is mixed at best.

By: Unlearningecon

Unlearningecon — Wed, 06 Feb 2013 15:35:54 +0000

Thanks for the HT!

By: Unlearningecon

Unlearningecon — Wed, 06 Feb 2013 15:34:42 +0000

It is as Taleb stated “if you do not have the map of airport A would you settle for the map of airport B when landing?”

Yeah, this is how I feel when economists say 'what is your alternative?' It's such a silly defense.

(you may suggest models with heterogeneity but still I do not consider them that different from DSGE ones. Still, its an improvement)

Many DSGE models have heterogeneity. My main problem with DSGE is the market clearing and optimising agents with unchanging preferences, as well as the way DSGE can be adapted to explain anything in a given model, but that there are no models which explain multiple macroeconomic phenomena.

P.S. I do not really agree with the Lucas Critique but I obviously cannot refute it…

I think the crucial thrust of it is correct: policy and the economy interact and we must be wary of implementing policies without considering this. Obviously the way it has been interpreted just makes no sense.

By: Euronomist

Euronomist — Wed, 06 Feb 2013 12:43:04 +0000

Exactly. The point is that we can explain little things, yet we miss the woods in order to see the tree. What is worse is that we are forced to rely on semi-working (or even not working) theories for the very irrational reason that we do not have any alternatives. It is as Taleb stated “if you do not have the map of airport A would you settle for the map of airport B when landing?”

You are right in stating that this sort of critique holds for DSGE models. Yet, I have seldom seen any other type of models. It is the same as the theories were are adhering to: we have to better alternative and instead of trying to build one we just repeat something which we know (but won’t admit) is wrong. (you may suggest models with heterogeneity but still I do not consider them that different from DSGE ones. Still, its an improvement)

We may also have to blame our persistence in using mathematics and only mathematics to explain the world. We know, since have seen in practice, that mathematical models fail yet what we do is create more complexity which assists us in nothing.

I have seen your FAQ and I quite agree with what you say. The issue is that there are theories that cannot be debunked easily and we have to try more.

P.S. I do not really agree with the Lucas Critique but I obviously cannot refute it…

By: W

Tue, 05 Feb 2013 23:06:36 +0000

There is a passage (some paragraph) in the Treatise on Money of Keynes, where he complains (quite straightforward … and in a rather satirically) about Cournot stating an analogy between economics and Physics (or astronomy … i don`t remember precisely now). It is worthwhile to read it, indeed!! It is embedded in a chapter named “The diffusion of price levels”…

By: Links 2/5/13 | Mike the Mad Biologist

Links 2/5/13 | Mike the Mad Biologist — Tue, 05 Feb 2013 21:46:51 +0000

[...] Tips are not optional, they are how waiters get paid in America (must-read) Libertarian Mugged by Reality The Pope of Kingsbridge (excellent) What The Fucken Fucke Are These Assholes Even Talking About?? (about the stock market) Empirical Evidence: Irrelevant to the NRA and the Gun Fetish Cult Idaho state senator: Obamacare just like the holocaust (more from the highly successful GOP Jewish outreach program…) A ‘dark money’ push behind Obamacare? When Labor Supports the Enemy (Christine Quinn just wants you to have the freedom to vomit) Starbucks Tycoon Bullies the Baristas A Classic Case Hasbara and the Control of Narrative as an Element of Strategy Nothing New Under the Wingnut Sun: “Survivalism” Who Pays? (state taxes fall more on the poor than the rich) Why Teach For America Is Not Welcome in My Classroom (devastating) On “Gobshite” Economists Versus Physics [...]