Time and chance

… Models are, by definition, simplifications of reality and are necessarily incomplete. If they were complete descriptions of reality, they would be reality itself and too complex for us to understand. Critiques focused on the fact that models are sometimes wrong and don’t include all possible sources of human behavior […] Read more »

Who Will Lead the Senate? Follow the Prediction Markets

How would commentary on the midterm election look if economists, rather than Beltway pundits, were calling the race? You would read a lot less about personalities, gaffes and gossip, and a lot more about fundamentals like the state of the economy. And you would certainly get a more sophisticated reading […] Read more »