The Problem With Economics

Noah SmithI think that what’s odd about econ isn’t that it uses lots of math — it’s the way it uses math. In most applied math disciplines — computational biology, fluid dynamics, quantitative finance — mathematical theories are always tied to the evidence. If a theory hasn’t been tested, it’s treated as pure conjecture.

Not so in econ. Traditionally, economists have put the facts in a subordinate role and theory in the driver’s seat. Plausible-sounding theories are believed to be true unless proven false, while empirical facts are often dismissed if they don’t make sense in the context of leading theories. This isn’t a problem with math — it was just as true back when economics theories were written out in long literary volumes. Econ developed as a form of philosophy and then added math later, becoming basically a form of mathematical philosophy.

—Noah Smith
Economics Has a Math Problem

Leave a Reply

Your email address will not be published. Required fields are marked *