PAUL ROMER BLASTS AGAINST USING FAULTY MATHS IN ECONOMICS
Ths morning I read a paper by Paul Romer critiquing the modern maths of macroeconomics (The Trouble with Macroeconomics, 14 September, 2016) HERE
Paul Romer has form in the maths of growth theory and macro - he achieved analytical praise for his work. For his place in the pantheon of mathematical modelling, see David Warsh, “Knowledge and the Weath of Nations: a story of economic discovery”, 2006 Norton.
In a paper published 14 September, Paul Romer demolishes several analytical maths devices recently constructed to model macroeconomics. At times Romer borders on polite sarcasm at the authors of these maths models, basically suggesting that the authors are ‘making it up’.
No matter what your competence level in maths, I strongly suggest that readers follow the link and get a feel for what Romer thinks is wrong with these models. He also side swipes at potential critics of his interventions because such devastating attacks on their authors could affect their careers and their self-beliefs. I would have thought it more devastating for people if the maths used to model a macro economy produce perverse results and people are impoverished as a result.
My views on mathematical modelling are well known - I am sceptial that people in economies follow behaviours susceptible to maths - and I am not convinced that maths and economics can be bedded together like maths and physics.
Judge for yourself.