…is to say by bank credit, if the public deficit is going to be reduced. This is a fact of accounting. It is not a matter of theory or ideology;…

…It is “friction” and it is used as a general argument that empirical rejection is not a big problem for a theory. My thoughts after the jump. Isaac Newton presented…

…efficient market theory. That’s a post worth reading, since it focuses on this issue. (My posts, perhaps to readers’ chagrin, tend to throw these criticisms in as asides in the…

…with high population density vote Democratic, while areas with low population density vote Republican. What, if anything, explains this correlation? Sammy’s theory is: 1) People living in high-density areas have…

by Linda Beale (cross posted from ataxingmatter) Economic Theory–how much is it worth [hat tip–Yves Smith at Naked Capitalism] Michael Hudson, an economist at the University of Missouri-Kansas City, asks…

…a manorial estate with its slaves, animals, fields and orchards. Economic theory then aimed at self-sufficiency through careful budgeting and the avoidance of trade, where possible. The market, with its…

Robert Waldmann The average person thinks he has higher than average intelligence. This is an empirical fact [citation needed]. It is not incorporated into standard finance theory, but it matters…

…Simplifying assumptions can’t be innocent if we are interested in Pareto efficiency. OK, now consider statement 2. Everyone agrees that economic theory is a set of models, that the models…

…field research, and evolutionary game theory. She is not afraid to draw on various disciplines when appropriate: economics, political science, evolutionary psychology, cultural anthropology and so forth. Update: rdan here…Barkley…

…my subject was, say, a history of the anachronistic labour theory of value, more suited as a PhD subject. But the essential beauty of a study of the evolution of…