tag:blogger.com,1999:blog-5404820640426099135.post1364938383083614358..comments2023-10-31T00:46:35.316+13:00Comments on Anti-Dismal: The foundations of economic modelsPaul Walkerhttp://www.blogger.com/profile/13731003529546075700noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5404820640426099135.post-1089230208765621412011-11-19T07:02:48.983+13:002011-11-19T07:02:48.983+13:00'Assume a spherical cow'
Engineers and sc...'Assume a spherical cow'<br /><br />Engineers and scientists know the difference between a useful assumption and a non-useful assumption. The majority of scientific assumptions simply eliminate a known variable - the same cannot be said for economics.<br /><br />Assuming perfect competition and using it as a starting point is a bad idea in an economy dominated by oligopoly. <br /><br />http://unlearningeconomics.wordpress.com/2011/11/14/how-to-unlearn-economics/Unlearningeconhttps://www.blogger.com/profile/13687413107325575532noreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-5462090117424514062011-11-19T04:29:11.151+13:002011-11-19T04:29:11.151+13:00Wouldn't a model that actually helps you under...Wouldn't a model that actually helps you understand some economic point be one that is capable of half-way decent predictions? Seems to me that a model incapable of making any workable predictions is not a model that actually leads to understanding. <br /><br />in this sense, all models need to be tested againstyt reality, and if they fail (and many economic models fail miserably at making half-way decent preedictions) then perhaps the problem is untenable assumptions at the base.Anonymousnoreply@blogger.com