this guy is an economist who seems to use models to prove their 
falibility (& has other great concepts like WMEs - weapons of mass 
exploitation): http://02ae523.netsolhost.com/Home.htm


h : )
On 2/11/11 11:03 PM, ruth catlow wrote:
> 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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helen varley jamieson: creative catalyst
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