Monday, May 23, 2016

Jason Smith — Modeling in physics versus modeling in economics


Jason Smith comments on Paul Pfleiderer's Chameleons: The Misuse of Theoretical Models in Finance and Economics with respect to the difference between modeling in physics and modeling in economics and finance.

Information Transfer Economics
Modeling in physics versus modeling in economics
Jason Smith

4 comments:

Bob said...

LOL

Matt Franko said...

"a good starting point is that quantum effects result from not knowing which path electrons and photons take."

should be: "a good starting point is the knowledge that quantum theory was developed because we do not know what path electrons and photons take"

From Ignacio's observation that humans will reflexively resort to stochastic analysis of phenoms they do not understand...

MRW said...

Paul Davidson makes a far better argument about this i his luncheon talk to Univ. of Chicago econ undergraduates.

It’s an hour long. I think it’s worth it. At the end of the talk he asked if he changed any of their minds. They said no.
https://www.youtube.com/watch?v=31wjPE-mUb4

However, he gives a short-form of it in this interview. About 7 minutes.
Paul Davidson - The Trouble With the Ergodic Axiom 2/4
https://www.youtube.com/watch?v=YAbnuwsid4Q

Bob said...

They said no.

As if Chicago School groupthink would dare to say otherwise.