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But economists would all agree that the models have limitations - that's not really news. The news here is that the limitations are a 10% slice rather than a 1
by mdda 16y ago
But economists would all agree that the models have limitations - that's not really news. The news here is that the limitations are a 10% slice rather than a 1% slice.
But that doesn't stop the theory being 90% correct.
Incentives-wise : is it easier to get people to buy a book about 'classical economics' or the 'whole new type of economics that makes those classical guys look like dinosaurs'?
- pedanticfreak 16y agoI would liken it more to elaborate geocentric models of the solar system. Sure, they can explain the data. And they can make accurate predictions within a certain margin of error. But then there are the cases they can't explain or predict accurately. Not to mention they keep getting more complex and more uncomfortable to believe. At the end of the day it's just the completely wrong idea tortured to give the right answers. The solar system was heliocentric all along. That's the kind of place I think traditional economic models are in right now. We're steps away from proving out the planets orbit the Sun, but there are still a lot of smart people writing elaborate dissertations about the Sun orbiting the Earth.