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I also appreciate any methodological approach, if it seemed otherwise people excuse this. But I am reasonably disappointed by the progress of econophysics given
by zwaps 8y ago
I also appreciate any methodological approach, if it seemed otherwise people excuse this.
But I am reasonably disappointed by the progress of econophysics given its implied ambition back then.
If there are physicists or mathematicians interested in economics, I would recommend two things.
First, delve deep into equilibrium analysis under uncertainty, game theory and mechanisms design and strategic interaction with externalities (e.g. social networks), to understand the "mathematical" and mechanical difficulties of modeling strategic human behavior under limited information. Pay ESPECIALLY attention to aggregation, e.g. when an outcome distribution implies behavior that we can influence, or when such behavior actually aggregates to overall outcomes.
Second, actually read into sociology and perhaps psychology. Here, you want to see how history dependence, the fluidity of meaning, institutions and the endogeneity of goals, may influence behavior. Behavioral econ and some experiments also.
If you, with these difficulties in mind, want to improve upon economic modeling, you are more than welcome.
But please, don't just rename the variables in a physics model.
- 1000units 8y agoThe Economist fears the Physicist.
- zwaps 8y agoHow so?
- qubex 8y agoI’d say that the economist envies the physicists’ close and fruitful relationship with the mathematicians.
- lenticular 8y agoNot really true. Econophysics, which is composed almost entirely of physicists, has not really panned out in any way. One of the biggest criticisms of economics is faith in complex mathematical models without solid foundations or conserved quantities like in physics. Econophysics doubles down on this. It's not the right direction.
- 1000units 8y agoIt's panned out in the sense that it earned them funding and prestige, which is the aim of economics (as opposed to investigating truth, which is the aim of physics/science).
- lenticular 8y agoSpeaking as a physical scientist, that is a really unhelpful and bizarre opinion. Many areas of physical science, especially medicine, are facing a replication crisis due to shoddy stats themselves. And it's not like the goal of physical science academics isn't also funding and prestige (have you BEEN in academia?). Every scientific field has its problems. Arrogantly dismissing economics while assuming physical scientists are amazing truth-seeking ubermenschen is just stupid.
- 1000units 8y agoI confess I was being charitable.