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I'm an outsider, so I can't speak of what the boards of prestigious economic journals think of this, but... I suspect it has something to do with the opacity of computer simulations using agent-based models (ABM) compared to math proofs or even the statistical models that are the staple of applied econometrics... although simpler computer simulations like ...


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Post-Keynesian Post-Keynesianism (PK) is based on the criticism of the so called "Keynesianism", which according to PKs is not loyal to core Keynes ideas. As such, this school of thought aims to be called the "true" Keynesians. The criticism starts with the workhorse model of Keynesianism, the IS-LM model, developed by Hick in a 1937's article, right after ...


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Chang Ha-Joon distinguishes between 9 schools of thought. Here are his one-sentence summaries of each: Classical: The market keeps all producers alert through competition, so leave it alone. Neoclassical: Individuals know what they are doing, so leave them alone – except when markets malfunction. Marxist: Capitalism is a powerful vehicle for economic ...


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The omitted variable bias in gravity model is an important issue given that some factors are unobserved or difficult to quantity. To solve this issue trade economists tend to rely on various fixed effect estimators. But, the question is what is your variable of interest? Exporter-by-year and importer-by-year fixed effects For instance, if you are ...


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The standard reading on the methodology and the role of explanation in economics is Daniel Hausman's work. Hausman, Daniel M. The inexact and separate science of economics. Cambridge University Press, 1992. Nancy Cartwright has some work on the interpretation of causation in the social sciences. Cartwright, Nancy. Hunting causes and using them: approaches ...


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According to Vela Velupillai, Orthodox Economic Theory is not Turing Complete, because it is "replete with uncomputabilites". On this 2009's article he states: Economic theory, at every level and at almost all frontiers – be it microeconomics or macroeconomics, game theory or IO – is now almost irreversibly dominated by computational, numerical and ...


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I am not a CS guy so this answe may be flawed in many ways. Take it more as a long comment and please give some feedback. Economists view Ethereum as a pure Arrow-Debreu market economy. In an AD economy you can write fully contingent contracts specifying commodity trades conditional on any future event at any particular date. Therefore, an AD economy is, by ...


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Beyond Michel De Vroey's book, I know of no other book on the history of macroeconomics, as it is praised by macroeconomists. See for example this review. De Vroey has a true vision of macroeconomics, he shares it with his reader and gives clear guidelines to understand the developments in the field. Anyway, you will find below some nice references that ...


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The Journal of Economic Dynamics and Control, a decent if not "the most prestigious" journal (ranked 48th by IDEAS/RePEc), did publish a special issue on agent-based computational economics back in 2001 introducing the method to the discipline. In its introductory article, Leigh Tesfatsion, a leading figure in this field, wrote: Agent-based computational ...


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Actually, many people claim that too few schools of thought are taught. The question is very broad because it encompasses several topics in the methodology of the social sciences and in epistemology. First, we do not know whether we can actually test theories through econometric analysis. Econometric techniques - and in general statistical ones - are based ...


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I think I can explain the problem as to why the schools persist. For simplicity we will limit ourselves to the Marxist, Austrian, Neoclassical and Neo Keynsian schools. I am not sure where to put the Feminist school except under the broad heading of heterodox with Marxists and Austrians as I don't think of it as a school so much as an attitude or direction ...


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Complexity/Evolutionary Economics This approach to economics, widely inspired in Evolutionary Biology, is a direct criticism to Neoclassical Economics, as its key postulates indicate. These are: Economics are open, dynamic, non-linear systems far from equilibrium Agents have realistic rationality, as opposed to perfect rationality. This is, they use ...


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The Chicago School The Chicago School is a sub-school of the broader neoclassical school of economic thought, named for the significant influence of prominent scholars in Chicago. According to Wikipedia "The term was coined in the 1950s to refer to economists teaching in the Economics Department at the University of Chicago, and closely related academic ...


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This is somewhat broad and argumentative question, but I'll try to provide one possible answer (disclaimer: I'm not a GE theorist). SMD theorem states that imposing only the abstract structure of general equilibrium has few empirical implications. Fair enough. But it's incorrect to say that we cannot hope to recover the underlying preferences from an ...


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I would submit that the premise is flawed. There is no methodological criteria that unified the Chicago school and separates it from the rest of economics. I think this is true even for Friedman, whose methodological paper you refer to. If you look at his macroeconomic work such as his Monetary History of the United States, Theory of the Consumption Function ...


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Neoclassical Economics It is not-controversial to say that Neoclassical Economics is the dominant strand of economics within mainstream economics, not only in academia but also in teaching. Regarding this school of thought, this article states: It describes the synthesis of the subjective and objective theory of value in a diagram of supply and demand, ...


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I would say there is some degree of correspondence between the two dichotomies. However, in the economic side of things, there is in my opinion a much clearer relation between positive and normative economics (at least in the theoretical side), as it is through the use of positive economics that normative means are supposed to be achieved. The other ...


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There are a large number of factors that affect the economy, and these factors are all changing at the same time. The issue is correlation does not mean causation. The economy cannot be experimented on where all other factors are held constant, in order to determine what causes what. To estimate it would require nearly an unlimited number of explanatory ...


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Feminist Economics Unlike Neoclassical Economics, which focus is usually on scarcity, Feminist economics focuses on the issue of Power relations, particularly in relation to gender and family structure. For example, whilst a neoclassical economist would study the gender gap in terms of benefits and costs (e.g. cost of post-natal leave), a Feminist economist ...


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Marc Lavoie, page 265 of Post-Keynesian Economics: New Foundations: "In fact, the SFC approach is perhaps a misnomer, as several other theories relate stocks and flows in a consistent way. The peculiarity of the post-Keynesian SFC aporoach is that its models truly integrate the real and monetary sides." In other words, do not focus on the name "stock-flow ...


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The SMD results deprived us of the certainty that if the individual level is as we model it, then the market and macro level will be just like gigantic individuals. So we have to turn to the real world, and record for how many markets, in how many countries, and in how many instances, did the markets and the economies appear to have behaved in a way that ...


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The best way to understand Friedman's and 1950s Chicago methodology is to consider it more an operation research outfit than an economics department. The group consolidated in the war-time SRG, an OR group studying the mathematics and statistics of weapon ordnance (check out Machine Dreams for a good history of it). As with all OR groups, the Chicago group ...


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