Why Economic Models are Always Wrong

Re:Why Economic Models are Always Wrong by cq on Wednesday October 26, 2011 @10:30AM (#3158702)

Can you really compare Economic models to Physics models without discussing the simplifications necessary to create an Economic model?

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Re:Why Economic Models are Always Wrong by Symmetry on Wednesday October 26, 2011 @10:40AM (#3158761)

You usually have to make a large number of simplifications to create a Physics model too. The question is how those simplifications change the accuracy of the model.

"Essentially, all models are wrong, but some are useful" -George E.P. Box

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Re:Why Economic Models are Always Wrong by LuisZaman on Wednesday October 26, 2011 @11:26AM (#3158964)

We can generalize to more than just physics and economics... As the quote says, ALL models are wrong (no matter what field). If you have a model that is "right" then it isn't a model, is it?

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Re:Why Economic Models are Always Wrong by jallmann on Wednesday October 26, 2011 @12:43PM (#3159362)

Assume a spherical cow...

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