Saturday, September 7, 2013

Brian Romanchuk — Inherent Problems With Single Good Economic Models (Wonkish)

A typical technique used in economic models is to base the analysis on the assumption that there is a single consumer good in the economy*. I argue that this causes some analytical blind spots for mainstream analysis of the economy. Since not everyone interested in mathematical modeling, I’ll state my conclusions up front, and then explain in more detail later.This post was triggered by this article on Mike Norman Economics by Tom Hickey which discusses the problems with prices indices.....
Bond Economics
Inherent Problems With Single Good Economic Models (Wonkish)
Brian Romanchuk

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