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I think modern economists have been acknowledging and quantifying the flaws in simplifying assumptions in economic models for decades [1]. That being said, I d
by bluecheese33 5y ago
I think modern economists have been acknowledging and quantifying the flaws in simplifying assumptions in economic models for decades [1].
That being said, I do think there is a serious problem in the way economics is often taught, and things like debt (and more broadly, anthropology) is part of the cure [2]
[1] https://en.wikipedia.org/wiki/Behavioral_economics https://en.wikipedia.org/wiki/Behavioral_economics
[2] https://ravik.substack.com/p/does-learning-economics-make-you https://ravik.substack.com/p/does-learning-economics-make-yo...
- disgruntledphd2 5y ago> modern economists have been acknowledging and quantifying the flaws in simplifying assumptions in economic models for decades Just FYI, both Kahneman and Tversky were psychologists, not economists.
- bluecheese33 5y agoNoted, but they still are pretty accepted in mainstream economics (nobel prize in economics in 2002). Also of course, they're not the only ones doing behavioral economics [1]: > Imperfect information is core to modern econ; theories showing how imperfect information can cause markets to break down received a Nobel 20 years ago. Perfect rationality has been successfully challenged by behavioral economics for decades, and received Nobels in 2002, 2013, and 2017. [1] https://noahpinion.substack.com/p/this-years-econ-critics-make-a-few https://noahpinion.substack.com/p/this-years-econ-critics-ma... (includes links)
- disgruntledphd2 5y agoDefinitely, but it amused me that psychologists keep winning the economics nobel :)
- teachrdan 5y agoIt might say more about economics than it does about psychology :)
- panick21_ 5y agoBehavioral economcis is just one branch. The idea that economists always believed humans were 100% rational decision makers has never ever been true. That just a strawmen that Garber and co set up. Anybody that actually studies the history of economics knows this.
- rsj_hn 5y agoEconomics is hard. Behavioral economics is having a hard time right now with many of the core hypothesis (loss aversion) and key interventions (priming) turning out to be experimentally not-reproducible. See https://www.thebehavioralscientist.com/articles/the-death-of-behavioral-economics https://www.thebehavioralscientist.com/articles/the-death-of... - for an overview.