Sunday, September 25, 2011

Model Minded

Last week I came across the issue of economic modelling. Me and my fellow masterstudents come from very diverse backgrounds. Although most of us can officially call themselves BSc in Economics (I still have to get used to the fact that I actually have and can make use of that title) there's also people that studied anthropology, history or political sciences.

When discussing an acticle about behavioral economics, which made a distinction between econs (homo economicus) that behave rational and humans where this rationality assumption is dropped, I realized how much of a brain-washed economist I am. Cause my first thought was, actual human behavior with all its exceptions? Can't model that! Where some sciences want to look at every detail and every exception, cause this comes most close to reality, economics is all about the modelling, baby. Set some assumptions, leave out some thing 'for the sake of simplicity' and there is your model. And although I found the huge amounts of abstraction very frustrating in the beginning of my studies, now I can't get around without it anymore. During my semester in the US where is took courses in political sciences, I even missed models!

Coming back to the humans and the econs, in the discussion I'd noticed that the economist were mostly in favor of studying econs, where the others where in favor of studying humans, since that's how people really behave. I like how the diversity of students makes me realize that there is more besides modeling, although to get through all the courses this year I will probably need them anyway. Especially if I look at all the chapters I've read and exercises I've made so far. No paragraph that didn't mention it.

No comments:

Post a Comment