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The problem with theory papers like this is you an prove anything with the right model. Economics is not physics. It's very hard to create a model where you g
by swatow 12y ago
The problem with theory papers like this is you an prove anything with the right model. Economics is not physics. It's very hard to create a model where you get out more than you put in. So if you have some plausible idea, it's almost certain you can formalize this as a mathematical model.
People attack classical economics as simplistic, but classical economics is actually a very rare case where you can get an interesting or even counter intuitive result from your assumptions.