John Quiggin basically states my position on it issue of heterodoxy. The real Contention of the Heterodoxists comes over the rationality of economic behavior, both as Individuals and as a Group. A lack of this rationality will produce a Scatter of Data results across different economic settings, due to the irrational behavior of Participants. Here brings entrance of Statistics into the Discussion, bringing forth the process of Averaging. Under Conditions of irrational reaction, any data results in Scatter patterns of determination. The statistical Mean frames such Scatter pattern into useable form, the best which can be hoped for in any predictive program.
Heterodoxy claims basically descend to criticisms of evaluation of the Mean in these model descriptions, though I find little relative ability in any program to improve this evaluative ability. We must continue crippled most by Hayek’s lack of instantaneous information. This failure leads to misunderstanding of immediate reactions, even after the fact in modeling. Irrational reactions reside in misunderstood pressures placed upon Participants, alongside their impulse reactions to reorder their Participant patterns for personal reasons. The models are not wrong, just lack full information of the conditions of the economic reaction. lgl
No comments:
Post a Comment