Hi Rob,

I have been pondering and wondering along this line of thought for a 
while too.

We watched Copenhagen a couple of nights ago - a play by Michael Frayne 
that takes as its basis, the mystery surrounding the wartime meeting of 
Niels Bohr and Werner Heisenberg.

In the play Heisenberg says something like...

'applying maths to people is always interesting. 1+1 can equal so many 
different kinds of 2.'

I note in all large institutions a move towards measuring things because 
they can be measured - the data is then often presented as if there is 
only one kind of '2'. (the equations lend great swagger potential).

Diagrams (I suppose some of these are just another expression of 
equations) are just as dangerous.

I got myself- continue to get myself into all kinds of trouble taking 
network topologies too literally.

After all most social networks are not flat. A node is not a node is not 
a node and the links between nodes have different resistances and 
qualities (again whether social or material).

 >

Even if you have a perfect economic model with perfect data, calibrating
the model doesn't have a single answer. So even in a perfect world,
economic models can and will give incorrect answers..

<

My feeling is that economists understand this very well and that their 
models are systems for gaining and maintaining temporary advantage- just 
keep moving fast, inventing new refinements of the tools that only you 
have access to.

is it that scary?

: ?
Ruth
btw ps. if anyone has a copy of the Copenhagen play I'd really like the 
exact quote.



On 31/10/2011 20:18, Rob Myers wrote:
> As a child I could never work out what a + b = c meant. I mean what
> should a and b and c *be*? Of course the answer is that they have any
> number of possible values. That's the power of equations. But when you
> are trying to fit equations to reality, it can be a problem:
>
> http://www.scientificamerican.com/article.cfm?id=finance-why-economic-models-are-always-wrong
>
> Even if you have a perfect economic model with perfect data, calibrating
> the model doesn't have a single answer. So even in a perfect world,
> economic models can and will give incorrect answers.
>
> Bear in mind that both the financialized, high-frequency-trading, casino
> capitalism side of the economy and the
> government-management-of-the-economy side are based on ever more complex
> models.
>
> And I think there's a more general problem that this illustrates.
> Presumably it's not just economics but philosophy, politics, theology,
> aesthetics, any kind of quantitative model of reality will suffer from
> this problem.
>
> Which is a scary thought.
>
> - Rob.
> _______________________________________________
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>

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