Ronald Coase has an interesting new piece titled Saving economics from the economics profession. You may like to see What is wrong with Economics on this blog.
Last week, in the US, I heard that the number of Ph.D. graduates coming out vastly exceeds the number of academic job openings. Most economics Ph.Ds. are . . . → Read More: The problems of the economics profession
Recently, I’ve been thinking a lot about how pointless economic models are. A good portion of this is probably due to being in a college microeconomics class (which uses Mankiw’s book, which Vox picks apart here.). What passes for mainstream economics is nothing more than gussied-up tautologies and pretty models that don’t actually prove . . . → Read More: Economic Models and Forecasting
I was at a meeting in London recently, organised by the IGC, on the subject of the research agenda in macroeconomics for developing countries. This made me think about how to make progress.
The US as the shared dataset for mainstream macroeconomics
All existing knowledge on macroeconomics is rooted in data about the US . . . → Read More: Project Tanzanite: Obtaining fundamental progress in the macroeconomics of developing countries
I read this headline and really couldn’t believe it. ComputerWorld of all places has this story today: Pirates tap BI tools to forecast, boost attendance. Notice there is no mention of improving on field performance as a means to improve attendance. They just want to narrow in on what poor folks are still willing . . . → Read More: Money-less ball
For over 20 years, CMIE has computed `market shares’ of the companies who compete in a certain product. They have also computed the Herfindahl index of concentration. This data is valuable in obtaining a snapshot of what is happening in an industry. But more interesting, this data goes back to 1990-91, and thus constitutes . . . → Read More: Accessing CMIE Data for the Time-Series of Market Shares and Herfindahl Index for a Given Industry
Risk management failures have clearly taken place. It has become fashionable to criticise risk models.
A fair amount of the naive criticism is not well thought out. Too many people today read Nassim Taleb and pour scorn upon hapless economists who inappropriately use normal distributions. That’s just not a fair depiction of how risk . . . → Read More: What Risk Models are Useful?
In order to make progress on doing macroeconomics in India, one weak link has been business cycle measurement. This, in turn, requires access to a wide range of seasonally adjusted time-series. In most countries, the infrastructure of seasonally adjusted data is produced by the statistical system, but in India this has not come about.
. . . → Read More: A New Resource in Indian Business Cycle Measurement
Real gross domestic product (GDP) is the market value of all goods and services produced by a nation within a certain span of time, adjusted for inflation. It includes both the goods and services sold in the marketplace, such as a can of tuna at the grocery or server space leased from a website . . . → Read More: GDP: A Primer on the Economic Scorecard