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Imo the economics profession very much suffers from inferiority complex known as "physics envy".

JumpCrisscross 1y ago
> economics profession very much suffers from inferiority complex known as "physics envy" You’re mixing up quantitative finance and economics.
- 331c8c71 1y ago
  Excuse me? Quant finance doesn't claim to be devising grand theories about how the world operates (is more akin to engineering). And when it does, any delineation from economics is moot.
  - JumpCrisscross 1y ago
    > Quant finance doesn't claim to be devising grand theories about how the world operates What do you base this on?
    - 331c8c71 1y ago
      What's quintessential quant finance? Black-Scholes and no-arbitrage pricing. Don't you agree it's much more of a tool than a theory of how the world works.
      - JumpCrisscross 1y ago
        > What's quintessential quant finance? Black-Scholes and no-arbitrage pricing This is a bad model to pick to exemplify physics envy given it’s based on thermodynamic dispersion. The term “physics envy” broadly applies to all social sciences lacking a mathematical basis. It’s a criticism of using math where it doesn’t belong. That hasn’t really fit (until very recently) with economics. It’s been a classic complaint about quantitative finance’s loftier visions of universality.
        littlestymaar 1y ago
        > This is a bad model to pick to exemplify physics envy given it’s based on thermodynamic dispersion. Using a model derived from physics is not having physics envy. > The term “physics envy” broadly applies to all social sciences lacking a mathematical basis No, physics envy is about thinking you can have the same prediction power as physics using simple mathematical tools just because some branch of physics do (while not understanding physics at the same time, because all of physics definitely doesn't work like that). > It’s a criticism of using math where it doesn’t belong. That hasn’t really fit (until very recently) with economics Well, if you consider Ricardo to be recent, maybe…

> economics profession very much suffers from inferiority complex known as "physics envy" You’re mixing up quantitative finance and economics.

331c8c71 1y ago
Excuse me? Quant finance doesn't claim to be devising grand theories about how the world operates (is more akin to engineering). And when it does, any delineation from economics is moot.
- JumpCrisscross 1y ago
  > Quant finance doesn't claim to be devising grand theories about how the world operates What do you base this on?
  - 331c8c71 1y ago
    What's quintessential quant finance? Black-Scholes and no-arbitrage pricing. Don't you agree it's much more of a tool than a theory of how the world works.
    - JumpCrisscross 1y ago
      > What's quintessential quant finance? Black-Scholes and no-arbitrage pricing This is a bad model to pick to exemplify physics envy given it’s based on thermodynamic dispersion. The term “physics envy” broadly applies to all social sciences lacking a mathematical basis. It’s a criticism of using math where it doesn’t belong. That hasn’t really fit (until very recently) with economics. It’s been a classic complaint about quantitative finance’s loftier visions of universality.
      - littlestymaar 1y ago
        > This is a bad model to pick to exemplify physics envy given it’s based on thermodynamic dispersion. Using a model derived from physics is not having physics envy. > The term “physics envy” broadly applies to all social sciences lacking a mathematical basis No, physics envy is about thinking you can have the same prediction power as physics using simple mathematical tools just because some branch of physics do (while not understanding physics at the same time, because all of physics definitely doesn't work like that). > It’s a criticism of using math where it doesn’t belong. That hasn’t really fit (until very recently) with economics Well, if you consider Ricardo to be recent, maybe…