Sunday, April 28, 2013

Why is Gorge Stigler ignored?



I want to understand the current finance crises. That is the reason, why I study economic science. I stumbled across an article written 1957 by George Stigler, who won the Nobel Memorial Prize in Economic Sciences in 1982, in the Journal of Political Economy. Stigler states that the standard believe that firms in a competitive environment face a horizontal demand curve is totally wrong. The argument itself is remarkably easy. It is just the use of the chain rule for derivatives. Teachers teach this math in school.
I cannot find any indication regarding this result in standard textbooks. What is the reason? Is there a mistake in the paper by Stigler? If that is the case I am particularly interested in that. Or, and I think that is the main reason, the result does not fit into the general principles of neoliberalism, which can be find today anywhere in the economy, and is ignored. If that is the case, it would accentuate my guess that the economy is not a science but a religion.

Saturday, April 27, 2013

Agent-based Computational Economics and Economics based on the theory of complex systems



Lately I am interested in theories or methods in the science (Is it a science ?) of the economy. I know of two different approaches, which do not believe from the beginning, that everything is in equilibrium and only external shocks are the basis for anything, which can not be predicted by the theory. These are the agent-based computational method and the practice of modeling the economy as a complex system.
Does anybody know whether there is an approach, which combines this two methods?

Saturday, April 20, 2013

Odd discussion



There is a odd discussion going in the in German society. What is more important, fairness or everybody should have the same chances?
What is your opinion?
There are people, who argue that it is more important having equal chances instead of having a fair distribution of wealth.  These are the people, who do not want to change the distribution of wealth in Germany.
But everybody should have the same opportunity to earn millions and millions and having enough criminal potential to become a tax refugee.
I totally disagree. My opinion is that the produced wealth in a society should be fairly distributed. I also strongly believe that the argument against this attitude is coming from institutions, which have only the interest of the richer ones in mind.
But what is your opinion?