Re:A New Way to Learn Economics
by js8 on Tuesday September 12, 2017 @12:33PM
(#15228742)
Again, I think you're talking about statistical model, which I don't object to. I object to supply-demand model as a phenomenological model, as taught in the economics textbooks. What they are doing is not regression.
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Re:A New Way to Learn Economics
by JumpCrisscross on Tuesday September 12, 2017 @01:34PM
(#15229356)
Basic rules like "if you decrease supply the price will go up" are true in more cases than they aren't. I agree, however, that entry-level students tend to overfit their models. If they never receive later training, they go into the world with a faulty view. Those same people then find those models failing in places we've known, for decades, they fail (in some cases, in a predictable way) and then come back to blame the models.