The problem with economic models: Ideology disguised as math.
Hey look at this: Delights to delectate.
This day in history: 2003, 2008, 2013, 2018
Colophon: Recent publications, upcoming/recent appearances, current writing projects, current reading
The problem with economic models (permalink)
When students of statistics are introduced to creating and interpreting models, they are introduced to George Box’s maxim:
All models are wrong, some are useful.
It’s a call for humility and perspective, a reminder to superimpose the messy world on your clean lines.
Even with this benediction, modeling is forever prone to the cardinal sin of insisting that complex reality can be reduced to “a perfectly spherical cow of uniform density on a frictionless plane.” Partially that’s down to human frailty, our shared inability to tell when we’re simplifying and when we’re oversimplifying.
But complex mathematics are also a very powerful smokescreen: because so few of us are able to interpret mathematical models, much less interrogate their assumptions,