4 ms·

All models are wrong, some are less wrong than others. Just like the standard model is just a model, economics relies on models as well. Matter of fact is that

All models are wrong, some are less wrong than others. Just like the standard model is just a model, economics relies on models as well. Matter of fact is that it's hard to predict what humans in aggregate are capable of. But I welcome anyone trying to come up with new models ... Full disclosure, econ PhD student (high-freq trading area)

danmaz74 9y ago
> All models are wrong, some are less wrong than others. All models are wrong, some are useful
- Rainymood 9y ago
  I wanted to quote both, but opted not to in the end. I like both quotations as they are both true in my honest opinion.
  - danmaz74 9y ago
    IMHO the "less wrong" isn't very relevant, while the "useful" is the important part :)
soVeryTired 9y ago
> All models are wrong, some are less wrong than others A sentiment often echoed by economists. I'd be inclined to counter with the following: All models are wrong. Some are useful, some are dangerous. Do you have a mechanism to tell the difference?
- crdoconnor 9y ago
  Models that bury certain uncomfortable realities in assumptions (e.g. "perfect information/competition") are useful to some people but not others. What I'd like to see studied is any connection between funds allocated to econ research and the assumptions made in the publication output. More study on how econ research is funded in general would help to better understand the incentives and motives of researchers.
reallymental 9y ago
Edited: Hey, I have a few questions regarding the Econ-PhD you're doing. (Basically questions about the work you're doing, is it worth it??...etc.) My email in my profile if you'd like to get in touch. (By is it worth it, I mean your personal opinion on the value you are getting from your current area of research, which you've mentioned is HFT)
kolbe 9y ago
What is a high-frequency trading PhD?
- Rainymood 9y ago
  I'm doing research into high-frequency price contagion!

danmaz74 9y ago

> All models are wrong, some are less wrong than others. All models are wrong, some are useful

Rainymood 9y ago
I wanted to quote both, but opted not to in the end. I like both quotations as they are both true in my honest opinion.
- danmaz74 9y ago
  IMHO the "less wrong" isn't very relevant, while the "useful" is the important part :)

soVeryTired 9y ago

> All models are wrong, some are less wrong than others A sentiment often echoed by economists. I'd be inclined to counter with the following: All models are wrong. Some are useful, some are dangerous. Do you have a mechanism to tell the difference?

crdoconnor 9y ago
Models that bury certain uncomfortable realities in assumptions (e.g. "perfect information/competition") are useful to some people but not others. What I'd like to see studied is any connection between funds allocated to econ research and the assumptions made in the publication output. More study on how econ research is funded in general would help to better understand the incentives and motives of researchers.

reallymental 9y ago

Edited: Hey, I have a few questions regarding the Econ-PhD you're doing. (Basically questions about the work you're doing, is it worth it??...etc.) My email in my profile if you'd like to get in touch. (By is it worth it, I mean your personal opinion on the value you are getting from your current area of research, which you've mentioned is HFT)

kolbe 9y ago

What is a high-frequency trading PhD?

Rainymood 9y ago
I'm doing research into high-frequency price contagion!