Model was poor wording on my part at the end, I’ve changed it to physiological systems. They are not constructs of humans. We create “models” , or ‘stories’ to explain things.
Physiology is a process of nature—complicated and only partially understood. Economics is artificial.
Patterns are seen in many things. Fractals is a word I’m just going to chuck in to think about. And the Fibonacci sequence. And the world is freaky.
Applying physiological models (they’ve got pretty good at maintaining equilibrium within a range, and system stability) to economics would potentially be a more productive—if the ‘facts’ that are known are known and considered.
Human market behavior is also complicated and only partially understood. In particular behavior economics finds that humans do all sorts of decisions that violate the rational actor axiom.
At the same time economic theory can still make useful predictions about the behavior of markets.
Model was poor wording on my part at the end, I’ve changed it to physiological systems. They are not constructs of humans. We create “models” , or ‘stories’ to explain things.
Physiology is a process of nature—complicated and only partially understood. Economics is artificial.
Patterns are seen in many things. Fractals is a word I’m just going to chuck in to think about. And the Fibonacci sequence. And the world is freaky.
Applying physiological models (they’ve got pretty good at maintaining equilibrium within a range, and system stability) to economics would potentially be a more productive—if the ‘facts’ that are known are known and considered.
Human market behavior is also complicated and only partially understood. In particular behavior economics finds that humans do all sorts of decisions that violate the rational actor axiom.
At the same time economic theory can still make useful predictions about the behavior of markets.