Noah Smith — Economics Has a Math Problem

Developments in economics based on Big Data that are threatening traditional econometric modeling.

Bloomberg View
Economics Has a Math Problem

Noah Smith

Lord Keynes — When Austrians Throw Reality to the Wind

I am sternly lectured here by an internet Austrian commenting on my last post that my empirical evidence supporting the statement that many businesses use administered prices is all for naught, because, well, empirical reality does not matter...

Social Democracy For The 21St Century: A Post Keynesian Perspective
When Austrians Throw Reality to the Wind
Lord Keynes

See also My Posts Refuting Misesian Apriorism and Praxeology

There are different cognitive (thinking) styles. One is the ideological, which prioritizes ideology over fact and studies have shown that ideologues double down on ideology when presented with contrary evidence. Research also shows a stronger reaction on the part of those who are more educated than those who are less educated. Ideologues are more concerned with theory than outcomes.

Another thinking style is the formal, which prefers mathematical rigor over factual information. Formalists are more concerned with methodology than outcomes.

The first typifies certain Austrian approaches such that of Ludwig von Mises while the second typified neoclassical approaches typical of those who see economics as econometrics.

These are cognitive biases characteristic of different personality types. However, they are also cognitive biases that can affect anyone's thinking as a result of a variety of factors. Thus the importance of acquiring critical thinking skills to identify and eliminate biases to which one may be susceptible.