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That wasn't my experience. Intro to micro had the simplified model throughout. Intermediate & advanced macro are all math. Macro at all levels is Keynesian the
by baryphonic 3y ago
That wasn't my experience. Intro to micro had the simplified model throughout. Intermediate & advanced macro are all math.
Macro at all levels is Keynesian theory plus increasing levels of math. IMO, much of macro resembled alchemy.
Several upper-level classes, though by no means all, took the assumptions in earlier classes, tore them down, and then re-built economics from there. These are assumptions like preferences being transitive, perfect information, rational self-interest, etc. Many of the claims of econ are defensible even when the assumptions are not. Game theory, for instance, is a very solid defense of economics (albeit one I don't agree with). Institutional econ, political econ & public choice are another family of approaches. Some approached like behavioral economics attempt to "debunk" old theories, though these have had problems with things like replication.
Also, econometrics is quite widespread now. Undergrads typically must take at least one semester of it, and OLS regression is essential for understanding certain papers in most upper-level classes. Econometric models are empirical and have only a tenuous relationship with the mainstream theoretical models like supply & demand, AD-AS, ISLM, or the various growth models.
It's not too dissimilar from physics (economists are infamous for physics envy), where Newtonian physics is wrong but still worth learning.
- jfengel 3y agoWhat the OP is describing is the frictionless, perfect-cylinder, massless-pulley version of Newtonian physics. Even a first semester econ class can talk about things like startup costs, inelastic demand, information asymmetry, and other things that make "a new business will spring up with lower margins" Just Plain Wrong. Economics has "friction", too.