The Living Thing / Notebooks :


Physicists who think some models from statistical mechanics will explain some stuff from economics better than models from economics.

Things to discuss: Whether anything is actually happening here at all.

Mauro Gallegati, Steve Keen, Paul Ormerod. 2006. Worrying trends in Econophysics.

Our concerns are fourfold. First, a lack of awareness of work that has been done within economics itself. Second, resistance to more rigorous and robust statistical methodology. Third, the belief that universal empirical regularities can be found in many areas of economic activity. Fourth, the theoretical models which are being used to explain empirical phenomena […] are based on spurious conservation laws.