tag:blogger.com,1999:blog-19649274.post6205355024608778082..comments2024-03-29T12:03:50.891+05:30Comments on The Leap Blog: Interesting readingsAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-19649274.post-90125213669121529612009-08-13T23:50:04.773+05:302009-08-13T23:50:04.773+05:30I am not particularly into the classification sche...I am not particularly into the classification scheme of `neoclassical' versus other kinds of economics.<br /><br />In academic economics, a good idea is an arbitrage opportunity. It's a bit like a herbal medicine being an arbitrage opportunity for a researcher in mainstream biology. If an idea is good, it can be used to write a winning paper. It can make a career, gain a reputation, etc. Even if some people are `ideological' and will refuse to take a good idea because it has some odd antecedents, others are pragmatic and will do this (and get ahead in the profession to boot).<br /><br />That brings us to the biases of the refereeing and publication process. I am very aware that economists are a strange tribe and getting past the referees is not easy. But there is no bias against inefficient market stories. Look at the immense proliferation of behavioural finance papers. If anything, an efficient markets paper is boring to the editor who thinks that's obvious. It's the freakish stories that are more likely to get published.<br /><br />Academic economics has serious problems, but ideological bias isn't one of them. The real problem is the lack of incentive to write stuff that matters to the real world.Ajay Shahhttps://www.blogger.com/profile/03835842741008200034noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-12324697752055447792009-08-11T06:23:55.106+05:302009-08-11T06:23:55.106+05:30Just two about Robert lucas response to criticisms...Just two about Robert lucas response to criticisms against economists. <br />1. The criticism is not against macro economics in general, it is against the methods of neo classical economics. and the criticism comes not from outside, but from economists of other traditions like Austrian, cambridge based post-autistic etc. <br /><br />2. If one accepts Lucas' arguments, it would become problematic to explain how many economists and finance guys including Roubini, peter schiff and others could actually warn about the coming crisis much in advance and that too with clear explanation on the phenomenon. My point is, if one understands the mechanics of business cycles as explained by Austrians, it is quite evident that a crisis was coming. Only the neo-classical guys found it difficult to understand. <br /><br />Prof. Shah, i would like to hear your thoughts on these pointsAnonymousnoreply@blogger.com