Archive for April 12th, 2012

Thinking about Hooligans as rational economic agents…

April 12, 2012

One just wishes we have such papers included in econ courses. It will even get hooligans hooked onto the subject and perhaps bring a change in the behavior…

Peter Leeson, Daniel Smith and Nicholas Snow write a fab paper on the topic. They model hooligans as rational agents who derive utility from picking fights:

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A conversation between Physicist and Economist on sustainable growth..

April 12, 2012

There have been many criticisms on how econs try and make economics look and sound like Physics. This has led to a mad race for making turning all econ ideas into math formulas ignoring the social aspects of economics. Some like Andy Lo say to improve econ, we need to avoid envying Physics.

We have heard enough from econs about this issue. But how do Physicists think about economics? If at all, is there a way we can understand the differences in the way the two – phys and econ – think?

Here is a superb post (the blog looks like a must read) from Tom Murphy, a Phys Prof at UCSD. He replays the conversation he had with an esteemed economist (name not disclosed) over a dinner table. Both had gone to attend a dinner lecture and had a conversation on the table. He writes the post trying to recall as much of the conversation.And warns that it is just his side of the story:

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