me:
> the "market" is irrational much of the time.
Sabri Oncu wrote:
Well! If the "market" is irrational much of the time, what is the point of heavy geared econometric modeling?
just because financial markets involve a heavy dollop of irrationality does not mean that they are totally unpredictable. They might be predictable based on a theory that does not assume neoclassical-type "rationality." similarly, econometric modeling need not be based on neoclassical-type "rationality." -- Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
