Sunday, February 10, 2013

Lars P. Syll — Ergodicity – the biggest mistake ever made in economics

Paul Samuelson claimed that the “ergodic hypothesis” is essential for advancing economics from the realm of history to the realm of science.
But is it really tenable to assume – as Samuelson and most other neoclassical economists – that ergodicity is essential to economics?
The answer can only be – as I have argued here, here, here, here and here – NO WAY!
Lars P. Syll's Blog
Ergodicity – the biggest mistake ever made in economics
Lars P. Syll | Professor of Economics, Malmo University

See also Mauboussin on Strategy: Shaking the Foundation: An interview with Ole Peters challenges some of the foundational assumptions in economics and finance, Legg Mason Capital Management, and Towers Watson: The Irreversibility of Time: Or Why You Should Not Listen To Financial Economists
(hat tip Rick Bookstaber)

See also Paul Davidson: Is economics a science? Should economics be rigorous?

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