Hacking Economics

Challenging Orthodoxy, Part II: Rigor vs. Neo-classical Economics

This excellent post questions many of the assumptions made in neoclassical economics, which I have trouble accepting. I know comparatively little about economics compared to these guys, but I think right now you could classify me as an ‘orthodox lefty’ because I still use the basic neoclassical economic framework (can’t blame me – it’s all I’ve learnt so far!).

I think even neoclassical economics is inexorably moving towards incorporating some heterodox beliefs (I hate these terms, it makes economics sound like a religion) – behavioral economics is especially exciting. But it will be a long time before anything other than the standard neoclassical models are taught in undergraduate economics. Darn it all.

In Economics Departments, A Growing Will to Debate Fundamental Assumptions

This NYT article sums up my pet peeve with economics – those stupid assumptions. Free trade is unequivocally good! Government intervention is the root of all evil! If your economics doesn’t have maths in it, it’s not real economics! Everyone is rational!

I wish I had the knowledge to analyze these assumptions for myself, but right now I need to focus on learning the fundamentals. I’m currently reading The Truth About Markets – thank goodness John Kay isn’t a rabid neoclassical fundamentalist.