Have at it boys and girls:
When you teach a graduate course in price theory, you typically are teaching solutions to a “constrained optimization” problem. Thus the calculus along with Lagrangean multipliers and all that. Those who think there’s too much math in economics don’t deny that this is the problem; they only think that . . . → Read More: econ: What’s Wrong With This Picture?
Economists Roman Frydman and Michael Goldberg presented a paper exploring the significance of the limits of knowledge and mathematical modeling for financial regulations titled “Emerging from the Financial Crisis” (pdf) at Columbia University Friday, Feb. 20, 2009. From their paper:
In his prescient critique that central planning must fail in principle, Friedrich Hayek emphasized that . . . → Read More: finance: Roman Frydman & Michael Goldberg on Hayek, Mathematics, Wall Street & Financial Regulations