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How does one even begin to model things like this?
by dpcx 14y ago
How does one even begin to model things like this?
- m0th87 14y agoIf this model were actually accurate, Zandi would be sitting on a throne of gold.
- dpcx 14y agoWhile true, I'm still interested in how a model with this many variables is created and run. It seems rather difficult (read: impossible) to model a global economy in my opinion.
- m0th87 14y agoAgreed. There's no way he's getting accurate results.
- GFKjunior 14y agohttp://en.wikipedia.org/wiki/Econometrics http://en.wikipedia.org/wiki/Econometrics Econometrics is the science of modeling the economy. But like you said it's pretty much impossible to get calculations correct.
- mynameishere 14y agohttp://en.wikipedia.org/wiki/System_dynamics http://en.wikipedia.org/wiki/System_dynamics The graphs there give you an idea. Just imagine them with 1700 inputs and many 1000s of interactions.
- wamatt 14y agoI really have no clue how the economy works, but right now there is only one guy I trust, Ray Dalio Self made macro hedge fund manager with a rags to riches story. He's pretty strange and employs an army of financial engineers in some forest in Connecticut to model this stuff (and make billions of dollars in the process). Oh, and forgot to mention, it's now the largest hedgefund in the world.