Lars P. Syll

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Keeping the dream alive For me, the study of asymmetric information was a very first step toward the realization of a dream. That dream was the development of a behavioral macroeconomics in the original spirit of Keynes’ General Theory. Macroeconomics would then no longer suffer from the ad hockery of the neoclassical synthesis, which had over-ridden the emphasis in The General Theory on the role of psychological and sociological factors, such as cognitive...

But these more recent writers like their predecessors were still dealing with a system in which the amount of the factors employed was given and the other relevant facts were known more or less for certain … At any given time facts and expectations were assumed to be given in a definite and calculable form … The calculus of probability, tho mention of it was kept in the background, was supposed to be capable of reducing uncertainty to the same calculable status as that of...

Courage that will live on forever  [embedded content] Seventy-five years ago, on February 22, 1943, Hans and Sophie Scholl — members of the resistance group ‘Die Weisse Rose’ — were killed by the Nazis. Courage is not anything very common, and the value we put on it is a witness to its rarity. Courage is a capability to confront fear, as when in front of the powerful and mighty, not to step back, but stand up for one’s rights not to be humiliated or abused...

Economics — a science with wacky views of human behaviour​ There is something about the way economists construct their models nowadays that obviously doesn’t sit right. The one-sided, almost religious, insistence on axiomatic-deductivist modelling as the only scientific activity worthy of pursuing in economics still has not given way to methodological pluralism based on ontological considerations (rather than formalistic tractability). In their search for...

Science and the quest for truth In my view, scientific theories are not to be considered ‘true’ or ‘false.’ In constructing such a theory, we are not trying to get at the truth, or even to approximate to it: rather, we are trying to organize our thoughts and observations in a useful manner. Robert Aumann What a handy view of science. How reassuring for all of you who have always thought that believing in the tooth fairy make you understand what happens to...

Marx and Keynes on the contradictions of capitalism Each capitalist, Marx noted, has an ambiguous relation to the workers. On the one hand, she wants the workers she employs to have low wages, since that makes for high profits. On the other hand, she wants all other workers to have high wages, since that makes for high demand for her products. Although it is possible for any one capitalist to have both desires satisfied, it is logically impossible for this...

Flight From The City  [embedded content] Jóhann Jóhannsson (1969 – 2018)  R.I.P. Advertisements

The future — something we know very little about All these pretty, polite techniques, made for a well-panelled Board Room and a nicely regulated market, are liable to collapse. At all times the vague panic fears and equally vague and unreasoned hopes are not really lulled, and lie but a little way below the surface. Perhaps the reader feels that this general, philosophical disquisition on the behavior of mankind is somewhat remote from the economic theory...

Poland’s Law and Justice — now and then A new law passed by Poland’s ruling Law and Justice Party and signed by President Andrzej Duda on Feb. 6, means that you may end up in prison for three years if you “publicly and against the facts attribute to the Polish nation or the Polish state responsibility or co-responsibility for Nazi crimes committed by the German Third Reich.” The Polish Parliament ordered a new investigation into the Jedwabne atrocity in...