
Why Information Grows - sergeant3
http://paulromer.net/why-information-grows/
======
dalek2point3
For people who might not be economists, let me give some background.

Paul Romer is a quite influential and famous economist who is one of the
creators of modern "endogenous growth theory". Growth theory is about coming
up with simple models of how we think economies grow over time. His theory
suggests that economic growth occurs because of innovations that come from
features inherent to the society that is growing, and each step of growth has
a feedback that affects the next phase of growth. So for example, the amount
of knowledge in an economy determines the level of growth, and growth dictates
the level of knowledge in the next phase. This is against exogenous growth
theory where growth is as a result of exogenous technological innovations that
arrive randomly and shock the system. He's widely tipped to win the Nobel
sometime soon for this and related ideas.

Now, Bob Lucas, another famous macroeconomist and growth theorist (and Nobel
Winner) and his co-authors have been in Romer's crosshairs for some time
because of what he calls the "mathiness" of their work. He defines mathiness
as something that "uses a mixture of words and symbols, but instead of making
tight links, it leaves ample room for slippage between statements in natural
versus formal language and between statements with theoretical as opposed to
empirical content."
([http://paulromer.net/mathiness/](http://paulromer.net/mathiness/))

In a relentless series of posts and papers, he's been asking questions at the
root of whether macro-economics is a science, how it works and how it could be
improved. Hackers might like his "Illustrating Mathiness – Code Analogy"
([http://paulromer.net/illustrating-mathiness-code-
analogy](http://paulromer.net/illustrating-mathiness-code-analogy)) where he
compares poorly done economic models with bad code.

Here are some more of those posts:

Needs More Math <=> Needs More Cowbell [http://paulromer.net/more-
cowbell/](http://paulromer.net/more-cowbell/)

Why the Mathiness in Lucas (2009) Matters [http://paulromer.net/mathiness-
lucas-2009/](http://paulromer.net/mathiness-lucas-2009/)

The Assumptions in Growth Theory [http://paulromer.net/assumptions-of-growth-
theory/](http://paulromer.net/assumptions-of-growth-theory/)

~~~
musicaldope
Thanks for this, the context you provided is quite informative.

------
walterbell
From the post, relevant to software design:

 _The key element in thinking like a physicist is being willing to push
simultaneously to extreme levels of abstraction and specificity. This sounds
paradoxical until you see it in action. Then it seems obvious. Abstraction
means that you strip away inessential detail. Specificity means that you take
very seriously the things that remain._

From "About Paul", relevant to network effects:

 _" Much of the texture and complexity of social progress is the result of a
mismatch between stable social norms on the one hand, and the combination of
continuously evolving technologies and continuously increasing scales of human
interaction on the other. When technology changes and the scale of our
interaction grows, our rules should change in parallel, but stable social
norms can get in the way."_

------
lisper
> Why is there no professional return investing in the clarity that it would
> bring to their models?

Because if economists made their thinking clear, then it would become obvious
that they are not actually doing anything of sufficient value to merit the
compensation they receive.

~~~
dreamcompiler
Yes. They're like the Philosophers' Union in HHGG. They'd be out of a job if,
say, a giant computer just popped out a nice clear answer to the central
question of life, the universe, and everything.

------
andrewstuart2
Point 4 in the first list is exactly why I wish people would stop trying to
replace passwords and focus instead on augmenting them. Information codified
physically (token or biometric) can be copied vastly more easily than
information codified in neurons.

~~~
mreiland
I've always thought Jeff Atwood made a mistake with SO by making it OID Only.

~~~
drchickensalad
Care to go in-depth about the ramifications?

~~~
mreiland
I shouldn't have to log into a different gmail account just to post on SO.

------
applecore
_> We know from the physics of the brain and of human sensory receptors that
it is impossible for a person to have direct access to the knowledge stored as
neural connections in someone else’s brain._

Do we?
[https://en.wikipedia.org/wiki/Synchronicity](https://en.wikipedia.org/wiki/Synchronicity)

~~~
Retra
Yes. A link to some discredited old Jungian Voodoo does little change that.

