Real-World Economics Review

from Lars Syll If I ask myself what I could legitimately assume a person to have rational expectations about, the technical answer would be, I think, about the realization of a stationary stochastic process, such as the outcome of the toss of a coin or anything that can be modeled as the outcome of a random process that is stationary. I don’t think that the economic implications of the outbreak of World war II were regarded by most people as the realization of a stationary stochastic...

Topics include: - For as little as $0.17 a day, AD-FREE listening and EXCLUSIVE podcast episodes can be yours by joining our Patreon! http://www.patreon.com/supernaturaloccurrencestudiespodcast Episode begins at: 18:47 - The spider web grows! We tackle yet another heinous killer with shadowy links to something bigger! - Who is Stanley Dean Baker and Harry Allen Stroup? - The "Hippie Cannibal" crimes explained - Aftermath and where are they now? - Shadowy connections, Four...

from Asad Zaman Statistics and Econometrics today are done without any essential reference to causality – this is much like try to figure out how birds fly without taking into account their wings. Judea Pearl “The Book of Why” Chapter 2 tells the bizarre story of how the discipline of statistics inflicted causal blindness on itself, with far-reaching effects for all sciences that depend on data. These notes are planned as an accompaniment and detailed explanation of the Pearl, Glymour,...

source

Dean Baker of the Center for Economic Policy and Research talks with EconTalk host Russ Roberts about the financial crisis. Baker sees the crisis as part of a broader set of phenomena--rising inequality and declining unionization. Baker is highly critical on both economic and political grounds of the policy attempts to stimulate the economy as well as the governance structure of the Federal Reserve. The conversation closes with a discussion of potential innovations to lower the budgetary...

Dean Baker of the Center for Economic Policy and Research talks with EconTalk host Russ Roberts about the financial crisis. Baker sees the crisis as part of a broader set of phenomena--rising inequality and declining unionization. Baker is highly critical on both economic and political grounds of the policy attempts to stimulate the economy as well as the governance structure of the Federal Reserve. The conversation closes with a discussion of potential innovations to lower the budgetary...

from Lars Syll

from Asad Zaman In the previous post (Three Types of Models 5), we discussed three types of models. The first type is based purely on patterns in observations, and does not attempt to go beyond what can be seen. This is an “observational” or Baconian model. The second type attempt to look through the surface and discover the hidden structures of reality which generate the observations we see. The best approach to this type of models has been developed by Roy Bhaskar, so we can call it a...

from Shimshon Bichler and Jonathan Nitzan In December 2017, we posted a RWERB entry, titled ‘Profit warning: there will be blood’. We warned that, although the Weapondollar-Petrodollar Coalition might no longer be in the Middle East driver’s seat, the oil and armament companies, the region’s oil-exporting autocracies and various non-state groups were all keen on seeing their oil incomes rise from record lows. And we observed that, in this context, ‘the prospects of a new energy conflict,...

from Lars Syll A critique yours truly sometimes encounters is that as long as I cannot come up with some own alternative model to the failing mainstream models, I shouldn’t expect people to pay attention. This is, however, to totally and utterly misunderstand the role of philosophy and methodology of economics! As John Locke wrote in An Essay Concerning Human Understanding: The Commonwealth of Learning is not at this time without Master-Builders, whose mighty Designs, in advancing the...