Ekonomia me mendje të hapur
Open Minded Economy

Summary/Abstract: This article analyzes the differences of modeling in the physical sciences and in economics and finance. Whereas hobbyists’ models aim for realistic resemblance to the object of the model, physics models aim for accurate divination. Economical and Financial models, the article argues, can at best aim to extrapolate or interpolate from the value of known variables to the value of unknown variables. Financial markets are alive, but a model is a limited, human work of art. Although a model may be entrancing, we will not be able to breathe life into it, no matter how hard we try. Economical and Financial models are therefore best regarded as a collection of mathematically consistent, parallel “thought universes,” each of which will always be far too simple to resemble the real financial world, but whose exploration as a whole can nevertheless provide valuable insight.

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