“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.” PeopleHumansIndividualSocialHuman NatureTheoryBehaviorModelsEconomicsComplexesObservationLimitationBehaveRelyAbstractSubtleGroundedFree MarketRationalismSocial BehaviorCrackpots Author:Ellen Willis
“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.” WayHumansIndividualInterestCuttingEconomicDisciplineBenefitsModelsEconomicsFlowOriginalsFundamentalsPropertyMeaningfulIncomeCurseCategoriesCommodityUtilitarianEconomic Models Author:John Carroll
“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 BeensTwoImportantNamesSkillsModelsEconomicsMethodAnalysisEconomistEquilibriumSimplificationKeynesMacroMicroeconomics 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.” WayUseUnderstandingInterestEconomicFieldsModelsEconomicsBoundariesProductiveStatisticsEconomic ModelsEconometrics 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.” HumansImportantSelfBehaviorModelsEconomicsFundamentalsRationalHuman 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.” ThinkingBelieveHas BeensIdeasHardWholeFormAttentionRecordsTheoryModelsEconomicsPaidSevenInvestingTeethFinanceCorporateFairyAssetsAcademicEfficientPercentagesDescendantsObscenityPricingVolatilityTooth FairyEfficient Markets Author:Charlie Munger
“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.” MenWorldHumansLittlesRealHardFormValuesPsychologyToo MuchPossibilityTheoryBehaviorModelsEconomicsContraryFoolishRationalProfessorsReal WorldEfficientMistakenHuman BehaviorFoolish ManEfficient Markets Author:Charlie Munger
“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.” PeopleWantGivingWantedTurnsInterestLordRichPsychologyToo MuchShareTeachingBehaviorModelsEconomicsIndependentCompetitionObsessionGet RichEthosIntersectionsKeynesTeaching OthersPersonal Behavior Author:Charlie Munger
“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.” PsychologyMovementBehaviorApproachNewsModelsResearchEconomicsInsightRationalMathematicalGood NewsRespectfulEclecticMathematical 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.” PeopleThinkingWorldWayWholeUseWould BeAbleTermSupportApproachModelsCapitalismResourcesEconomicsDemocraticSocialismCapitalistWiserDemocratic 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.” PeopleIfsWorldIdeasCountryStatesUseWealthUnitedHalfUnited StatesDemocracyModelsHappeningsCapitalismEconomicsIndiaPopulationNeoliberalismCroniesCrony 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.” PeopleCountryAmericaPoliticalEconomyGrowingEconomicPoliticianModelsSolutionsEconomicsRejectionRejectsLatinRejectedImperialismGlobalizationLatin AmericaArgentinaProblems And SolutionsVenezuelaNeoliberalismEconomic ModelsEconomic Globalization Author:Evo Morales