Best economics & models Quotes | Short & Famous Sayings

“Whatever their limitations, Freud and Marx developed complex and subtle theories of human nature grounded in their observation of individual and social behavior. The crackpot rationalism of free-market economics merely relies on an abstract model of how people "must" behave.”

“Unless the fundamental categories of economics such as 'property' were to be redefined in a radically personal way the liberal rationalist curse which had established economics as a scientific discipline cut off from human interests would proliferate. Economic models ... have failed to incorporate any meaningful index of individual benefit other than the original utilitarian one, ... the index of increasing income or an increasing flow of commodities.”

“One of the most important skills of the economist, therefore, is that of simplification of the model. Two important methods of simplification have been developed by economists. One is the method of partial equilibrium analysis (or microeconomics), generally associated with the name of Alfred Marshall and the other is the method of aggregation (or macro-economics), associated with the name of John Maynard Keynes.”

Has Beens Two Important Names Skills Models Economics Method Analysis Economist Equilibrium Simplification Keynes Macro Microeconomics

Author:Kenneth E. Boulding

“I work on the boundary between economics and statistics in this field called econometrics. Part of my interest is understanding how you use statistics in productive ways to analyze dynamic economic models.”

Way Use Understanding Interest Economic Fields Models Economics Boundaries Productive Statistics Economic Models Econometrics

Author:Lars Peter Hansen

“Neoclassical economics ... has uncovered important truths about the nature of money and markets because its fundamental model of rational self-interested human behavior is correct about 80% of the time.”

Humans Important Self Behavior Models Economics Fundamentals Rational Human Behavior

Author:Francis Fukuyama

“Berkshire's whole record has been achieved without paying one ounce of attention to the efficient market theory in its hard form. And not one ounce of attention to the descendants of that idea, which came out of academic economics and went into corporate finance and morphed into such obscenities as the capital asset pricing model, which we also paid no attention to. I think you'd have to believe in the tooth fairy to believe that you could easily outperform the market by seven-percentage points per annum just by investing in high volatility stocks.”

“The possibility that stock value in aggregate can become irrationally high is contrary to the hard-form "efficient market" theory that many of you once learned as gospel from your mistaken professors of yore. Your mistaken professors were too much influenced by "rational man" models of human behavior from economics and too little by "foolish man" models from psychology and real-world experience.”

“I don't have too much interest in teaching other people how to get rich. And that isn't because I fear the competition or anything like that - Warrenhas always been very open about what he's learned, and I share that ethos. My personal behavior model is Lord Keynes: I wanted to get rich so I could be independent, and so I could do other things like give talks on the intersection of psychology and economics. I didn't want to turn it into a total obsession.”

“The good news is that, at least in economics, I've seen movement away from its overemphasis on mathematical models of purely rational behavior to a more eclectic and commonsense approach: research that is, among other things, more respectful of insights from psychology.”

Psychology Movement Behavior Approach News Models Research Economics Insight Rational Mathematical Good News Respectful Eclectic Mathematical Models

Author:Robert J. Shiller

“I see myself, in terms of the question of capitalism, as I would support democratic socialism over a capitalist system, because any approach... or participatory economics, which is another great model that people like Michael Albert are putting out there... any system that encourages us to think about interdependency, and to be able to use the world's resources in a wiser way, for the good of the whole, would be better for the world than capitalism.”

People Thinking World Way Whole Use Would Be Able Term Support Approach Models Capitalism Resources Economics Democratic Socialism Capitalist Wiser Democratic Socialism

Author:Bell Hooks

“We often confuse or loosely use the ideas of crony capitalism or neoliberalism to actually avoid using the word "capitalism", but once you've actually seen, let's say, what's happening in India and the United States - that this model of US economics packaged in a carton that says "democracy" is being forced on countries all over the world, militarily if necessary, has in the United States itself resulted in 400 of the richest people owning wealth equivalent [to that] of half of the population.”

People Ifs World Ideas Country States Use Wealth United Half United States Democracy Models Happenings Capitalism Economics India Population Neoliberalism Cronies Crony Capitalism

Author:Arundhati Roy

“Globalization and the neoliberal economic model have already been rejected in Latin America; it simply hasn't been a solution for our people. At the same time, Latin countries like Venezuela and Argentina are anti-imperialist and anti-globalization, and yet their economies are growing again.”

“It is universally appreciated, I think, that theorists are able to tweak their assumptions in order to reach any conclusion they wish. The believability of the conclusion depends not only on the fact that it was reached but on how hard the theorist had to tweak the model to get there.”

Thinking Hard Facts Able Order Wish Depends Models Economics Conclusion Assumption Appreciated Theorists Tweak Believability

Author:David M. Kreps

“A colleague saw the same model-calibrating the elasticity of demand facing a Cournot oligopolist as a function of the number of firms in the industry--described at the University of Chicago and at M.I.T. A Chicago economist derived the formula and said, "Look at how few firms you need to get close to infinite elasticities and perfect competition." An M.I.T. economist derived the same formula and said, "Look at how large n has to be before you get anywhere close to an infinite elasticity and perfect competition."”

Needs Looks Said Perfect Numbers Saws Industry Demand Models Economics Function Infinite Competition University Firm Chicago Formulas Colleagues Economist Elasticity Perfect Competition

Author:Matthew Rabin

“Hume develops his arguments by a series of models. He doesn't call them models in the pretentious way in which we envelope, very often, pure banalities in this jargon”

Way Pure Models Economics Argument Series Pretentious Envelopes Jargon Banality Hume

Author:Lionel Robbins, Baron Robbins

“There is a history of mathematical models of oligopolistic competition dating from Cournot to the theory of games. There is also a literature generated by institutional economists, lawyers, and administrators interested in formulating and implementing public policy. It has been the tendency of these groups to work almost as though the other did not exist.”

Has Beens Literature Games Groups Policy Theory Models Economics Dating Competition Lawyer Tendencies Mathematical Economist Public Policy Administrators Implementing Mathematical Models

Book:Market structure and behavior

Source: Market structure and behavior

“For far too long economists have sought to define themselves in terms of their supposedly scientific methods. In fact, those methods rely on an immoderate use of mathematical models, which are frequently no more than an excuse for occupying the terrain and masking the vacuity of the content.”

Long Facts Use Term Models Economics Method Excuse Mathematical Rely Economist Scientific Method Terrain Vacuity Mathematical Models

Author:Thomas Piketty

“The book, as it stands, seems to me to be one of the most frightful muddles I have ever read, with scarcely a sound proposition in it beginning with page 45 [Hayek provided historical background up to page 45; after that came his theoretical model], and yet it remains a book of some interest, which is likely to leave its mark on the mind of the reader. It is an extraordinary example of how, starting with a mistake, a remorseless logician can end up in bedlam.”

Source: The Collected Writings of John Maynard Keynes: The general theory and after: pt. 1, Preparation

“In the model that we grew up with, governments rule physical territory in which national economies function, and strong economies support hegemonic military power. In the new model, already emerging under our noses, economic decisions don't pay much attention to national sovereignty in a world where more than half of the one hundred or two hundred largest economic entities are not countries but companies.”

“The linear 'Take - Make - Dispose' system, which depletes natural resources and generates waste, is deeply flawed and can be productively replaced by a restorative model in which waste does not exist as such but is only food for the next cycle”

“Today, the UK must be the pioneer of a new model of economic change, that integrates social and environmental consideration. This is not just a question of values and moral duty. It is about our economy's capacity to sustain itself”

“I wish we questioned the aid model as much as we are questioning the capitalism model. Sometimes the most generous thing you can do is just say no.”

Sometimes Wish Can Do Models Capitalism Economics Aids Generous Questioning Saying No Just Say No

Author:Dambisa Moyo

“Economists who adhere to rational-expectations models of the world will never admit it, but a lot of what happens in markets is driven by pure stupidity - or, rather, inattention, misinformation about fundamentals, and an exaggerated focus on currently circulating stories.”

World Stories Happens Focus Pure Models Expectations Economics Fundamentals Stupidity Driven Rational Finance Conspiracy Economist Exaggerated Admitting Misinformation Inattention

Author:Robert J. Shiller

“Modern economics is a set of formal models and equations purporting to fully determine human behaviour, at least in the economic realm. And there is no way that uncertainty can be compressed into determinate mathematical models.”

Way Humans Economic Modern Models Economics Determine Mathematical Uncertainty Realms Behaviour Formal Equations Human Behaviour Mathematical Models

Author:Murray Rothbard

“Regardless of past aspirations, this is the right time to be focusing on services for two specific reasons The increasing ubiquity of broadband has made it viable, and the proven economics of the advertising model has made it profitable.”

Made Two Reason Past Models Economics Advertising Made It Aspiration Proven Right Time Profitable Broadband Ubiquity

Author:Ray Ozzie

“You must know the big ideas in the big disciplines, and use them routinely - all of them, not just a few. Most people are trained in one model - economics, for example - and try to solve all problems in one way. You know the old saying: to the man with a hammer, the world looks like a nail. This is a dumb way of handling problems.”

People Knows Men World Way Trying Looks Ideas Use Problem Bigs Example He Man Discipline Models Economics Solve One Way Dumb Nails Hammers Old Saying Big Ideas Handling Problems

Author:Charlie Munger

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