Model Building for Economists

Legal Realism for Economists

M ost economic theory presumes—often implicitly—a system of law and adjudication. After all, institutions like property, contract, and government regulation typically entail mechanisms for law-creation and lawapplication, which usually (though perhaps not inevitably) imply some kind of judicial system (Posner, 2008, pp. 5–6). Because judges are often responsible for interpreting and enforcing t...

Anomaly for Model Building

A simple algorithm to calculate the group theory factor entering in anomalies at four and six dimensions for SU(N) and SO(N) groups in terms of the Casimir invariants of their subgroups is presented. Explicit examples of some of the lower dimensional representations of SU(n), n ≤ 5 and SO(10) groups are presented, which could be used for model building in four and six dimensions. The consistenc...

Computing the Perfect Model: Why Do Economists Shun Simulation?*

Like other mathematically intensive sciences, economics is becoming increasingly computerized. Despite the extent of the computation, however, there is very little true simulation. Simple computation is a form of theory articulation, whereas true simulation is analogous to an experimental procedure. Successful computation is faithful to an underlying mathematical model, whereas successful simul...

The Methodology of Economists

Thirty-five years ago, E. C. Harwood, AIER's founder, wrote the following about the relation of economic conclusions to the methods of inquiry used by many economists: "That economists frequently do not agree has become so commonplace that some economists no longer seem to be troubled by the suggestion that such a state of affairs is scandalous. That many economists do agree on certain analyses...

EC 720 - Math for Economists Lecture Notes