You are currently browsing the monthly archive for May 2015.
See the notice on the Game Theory Society website.
A word that Paul Romer used in a recent piece in the Papers and Proceedings of the AER. Its inspired, no doubt, by Stephen Colbert’s notion of `truthiness’. Romer defines it as
Like mathematical theory, mathiness uses a mixture of words and symbols, but instead of making tight links, it leaves ample room for slippage between statements in natural versus formal language and between statements with theoretical as opposed to empirical content.
Romer is not the first to coin the term. Credit goes, I think, to Jordan Ellenberg. Ellenberg defined it as
…..a series of fervent gestures that gives the impression that mathematical ideas are being expressed, but doesn’t actually deliver the goods.
The recent turmoil in Baltimore and the news of Ray Fisman’s impending move to Boston University reminded me that he (along with Tim Sullivan) had penned a column for Slate on Jan 7, 2013 entitled:
In hindsight, the title seems ironic. The article itself is an excerpt from the author’s book on Organizations (in the genre pioneered by Freakanomics) and can be interpreted as illustration of Goodhart’s law. The article itself does not align perfectly with the title. Apparently, what the Baltimore PD has to teach us is what not to do as the following quote suggests:
To illustrate the double-edged sword of arrest incentives, Moskos recounts the example of a fellow officer who decided to set a record for monthly arrests. His plan: lock people up for violating bicycle regulations. At night, all bikes need a light. The officer would stop cyclists in breach of the bike light rule (which was most of them), ask for ID, and pull out his pad to write a citation. Most riders, though, were biking without ID, and since all offenses become arrestable without identification, the officer’s little scheme netted 26 arrests in a single month. A record. His sergeant was thrilled, telling Moskos, “Look, I don’t know what his motivations are. But I think it’s good. He’s locking people up, which is more than half the people in this squad.”
Finally got around to reading the PCES report on economics education at Manchester. The Francis Urquhart half of my dual selves was duty bound to dislike it. My Urquhart self, would urge the authors to switch subjects and find fulfilling careers in one of the caring professions, like, personal incontinence counselor. My milquetoast self prevailed and I buckled down to read it.
The report raises two issues and its writers have made the mistake of conflating them or at least not separating them clearly enough. The first is the effectiveness with which economics is taught. The second is what is to be taught.
On the first, the report makes for depressing reading. It summarizes an economics education as dull as ice fishing. For those unfamiliar with ice fishing, it is a sport (and thats being charitable) practiced by the inhabitants of Minnesota and the remoter parts of Wisconsin. In dead of winter, one drives a large vehicle over a frozen lake. If that were insufficient to tempt fate, one then cuts a hole in the ice for the ostensible purpose of catching fish. In practice one sits around the hole drinking prodigously while trying not to fall in. Beans, flatulance and an absence of sanitation figure prominently.
On the second, the report’s authors write
Our economics education has raised one paradigm, often referred to as neoclassical economics, to the sole object of study. Alternative perspectives have been marginalised. This stifles innovation, damages creativity and suppresses constructive criticisms that are so vital for economic understanding. Furthermore, the study of ethics, politics and history are almost completely absent from the syllabus. We propose that economics cannot be understood with all these aspects excluded; the discipline must be redefined.
Exposure to history, psychology and politics? Of course, yes. Within the US system this happens naturally as a function of breadth requirements. Students are not shy about trying to reconcile what they have learnt in Psychology and what they are mastering in Economics. It makes for a lively classroom.
What about these alternative perspectives? In for a penny in for a pound, so I decided to read a paper by Steven Keen. Keen, as far as I can gather is one of the leading lights of these alternative perspectives. The paper I read (co-authored with Russell Standish) appeared in Physica A and can be found here. If you’ve not heard of it, there is a good reason for that. Continue to ignore it. Pauli might have described it thus:
Reading it lowered my IQ, something I can scarce afford to do. If this is representative of what passes for alternative perspectives, the writers of the PCES should leave economics and find fulfilling careers as incontinence counselors. Finally, for those who think my description of Keen and Standish uncharitable, I refer them to the following by Chris Auld. Stamping out ignorance is a thankless task and one is cheered to see there are some who take it on.
The urge to promote these alternative perspectives is to be found across the Channel as well. There, a sub group of scholars and nescafe society currently wished to form a separate group so that they may be evaluated by different norms. Jean Tirole, in a letter to the State secretary in charge of Higher education and Research in France, argued against this. A response can be found here.