Thursday, April 14, 2016

Economics and Astrology

The new astrology by Alan Jay Levinovtz via Noah Smith who says:
"Levinovitz likens modern-day macroeconomics to mathematical astrology in the early Chinese empire. And in fact, the parallel sounds pretty accurate. The article is worth reading just to learn about classical Chinese astrology, actually.
Levinovitz, however, leaves out what I think is the most important development: theempirical revolution in econ. This has been most important in micro fields, since data is much more abundant, but it's also starting to influence macro.
I also think Levinovitz should have given a shout-out to the successes of applied micro theory - auction theory, matching theory, discrete choice models, and the rest. "

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