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The issue is that there just isn't that much data. You collect a bunch of macro level time series variables. Ok now what? No matter how cool or sophisticated
by mc-lovin 13y ago
The issue is that there just isn't that much data. You collect a bunch of macro level time series variables. Ok now what? No matter how cool or sophisticated your model is, there is just too little data to tell which models actually fit reality.
The criticism I describe is what most economists tell me when I bring up agent based models. In practice they mostly just ignore the field.
- pseut 13y agoThat's probably a reasonable description for why most macroeconomists don't work on these models and wouldn't advise a student to start working on them, but if the models were giving new insights or understanding, people would pay attention.