Lars P. Syll — Neoclassical economics is great — if it wasn’t for all the caveats!

The good (ideal) and the bad (real) of conventional economics.

The policy consequences are essentially two-fold.

The first is in not recognizing the disjunction between the ideal (formal) and the real (empirical), which violates the basic requirement of a scientific approach and makes the undertaking an excursion in philosophy rather than science, even though it is dressed put to look like science. The consequence is policy formulation that doesn't lead to the predicted results, since it is based on errors built into the assumptions.

The second is in recognizing the disconnect and trying to fit the real to the ideal through policy, which is a fool's errancy, since the assumptions as such that framework cannot generate models that are feasible to implement socially and politically because homo economicus is a fictional construct with little resemblance to the actual homo socialis. This leads to policy that is impractical and the results are the evidence of this.

Lars P. Syll’s Blog

Neoclassical economics is great — if it wasn’t for all the caveats!

Lars P. Syll | Professor, Malmo University

Lars P. Syll — Stiglitz and the full force of Sonnenschein-Mantel-Debreu

Just why is anyone still going to these people for policy advice, let alone putting some of them in charge of setting policy?

The power of elite discourse to persuade is dangerous when an elite controls the frame and there is no accountability for results.

Lars P. Syll’s Blog

Stiglitz and the full force of Sonnenschein-Mantel-Debreu

Lars P. Syll | Professor, Malmo University

Lars P. Syll — Brad DeLong and the true nature of neoclassical economics

The basis of economic moronism. Apt DeLong quote worth saving for reference.

Lars P. Syll’s Blog
Brad DeLong and the true nature of neoclassical economics
Lars P. Syll | Professor, Malmo University

Lars P. Syll — Neoclassical economics – emperor without clothes

Conclusion – don’t believe a single thing of what these microfounders tell you until they have told you how they havecoped with – not evaded –Sonnenschein-Mantel-Debreu!

Of course, most neoclassical macroeconomists know that to use a representative agent is a flagrantly illegitimate method of ignoring real aggregation issues. They keep on with their business, nevertheless, just because it significantly simplifies what they are doing. It reminds – not so little – of the drunkard who has lost his keys in some dark place and deliberately chooses to look for them under a neighbouring street light just because it is easier to see there!

Neoclassical economics – emperor without clothes

Lars P. Syll | Professor of Social Studies and Associate Professor of Economics, Malmo University

Lars P. Syll throws Sonnenschein-Mantel-Debreu at NCE

Conclusion – don’t believe a single thing of what these microfounders tell you until they have told you how they havecoped with – not evaded – Sonnenschein-Mantel-Debreu!

Read it at Lars P. Syll's Blog
Please say after me – Sonnenschein-Mantel-Debreu
by Lars P. Syll

Cutting to the heart of neo-classical economics — DSGE modeling assuming a representative agent. The model is not representational of reality.

Of course, this is not a new criticism. But it is expressed in a simple to understand way for non-economists.

And so far, it has not been adequately addressed by NCE proponents, who claim to be getting useful information from their methodological approach 

Even though history shows they got it wrong, wrong, wrong. There is no way to rewrite that without appeal to revisionism.