Monday, July 11, 2016

The problem with models...........................


.....................................(beside the fact they involve mathematics):

What economists call "models" are interpretive frameworks.  They are presented mathematically, with proofs that connect initial assumptions to ultimate predictions.  However, the predictions are not falsifiable.  The models' predictions hold only when other things are equal, and other things are never equal.

-Arnold Kling,  Specialization and Trade:  A Re-Introduction to Economics

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