Response to worrying trends in econophysics

McCauley, Joseph L. (2006): Response to worrying trends in econophysics. Published in: Physica A , Vol. 371, No. 2 (15 November 2006): pp. 601-609.

Abstract

This article is a response to the recent “Worrying Trends in Econophysics” critique written by four respected theoretical economists [1]. Two of the four have written books and papers that provide very useful critical analyses of the shortcomings of the standard textbook economic model, neo-classical economic theory [2,3] and have even endorsed my book [4]. Largely, their new paper reflects criticism that I have long made [4,5,6,7,] and that our group as a whole has more recently made [8]. But I differ with the authors on some of their criticism, and partly with their proposed remedy.

• Item Type: MPRA Paper
• Institution: University of Houston
• Language: English
• Keywords: General equilibrium; uncertainty; conservation laws; money nonconservation; nonintegrability of dynamical systems; financial markets; stochastic processes
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; C - Mathematical and Quantitative Methods > C0 - General; A - General Economics and Teaching > A2 - Economic Education and Teaching of Economics

References

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