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Again, I think you're talking about statistical model, which I don't object to. I object to supply-demand model as a phenomenological model, as taught in the ec
by js8 9y ago
Again, I think you're talking about statistical model, which I don't object to. I object to supply-demand model as a phenomenological model, as taught in the economics textbooks. What they are doing is not regression.
- JumpCrisscross 9y agoBasic rules like "if you decrease supply the price will go up" are true in more cases than they aren't. I agree, however, that entry-level students tend to overfit their models. If they never receive later training, they go into the world with a faulty view. Those same people then find those models failing in places we've known, for decades, they fail (in some cases, in a predictable way) and then come back to blame the models.