Lars P. Syll

After the 1920s, the theoretical and methodological approach to economics deeply changed … A new generation of American and European economists developed Walras’ and Pareto’s mathematical economics. As a result of this trend, the Econometric Society was founded in 1930 … In the late 1930s, John Maynard Keynes and other economists objected to this recent “mathematizing” approach … At the core of Keynes’ concern laid the question of methodology. Maria Alejandra Madi Keynes’...

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Ricardian equivalence — nothing but total horseshit! Ricardian equivalence basically means that financing government expenditures through taxes or debts is equivalent since debt financing must be repaid with interest, and agents — equipped with ‘rational expectations’ — would only increase savings in order to be able to pay the higher taxes in the future, thus leaving total expenditures unchanged. Why? In the standard mainstream consumption model — used in...

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Jordan Peterson on responsibility and political correctness  [embedded content] Advertisements

Non-ergodicity and the poverty of kitchen sink modeling  [embedded content] When I present this argument … one or more scholars say, “But shouldn’t I control for everything I can in my regressions? If not, aren’t my coefficients biased due to excluded variables?” This argument is not as persuasive as it may seem initially. First of all, if what you are doing is misspecified already, then adding or excluding other variables has no tendency to make things...

In mainstream economics — especially in microeconomics, social choice and game theory — it is taken for granted (by definition) that the actors appearing in the model world, are rational and try to satisfy given preferences. But, confronting the axiomatic model world with the real world, it usually turns out that quite a few actors​ are irrational. In a classic experiment conducted by Barbara McNeil and colleagues, it was investigated how variations in the way information was...

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