On: How Effective Is Economic Theory?

[marcosdumay]

If the community does not take status and funding away from failed models, it ceases doing science. As a group, economists aren't letting DSGE go.

There are many economists trying to do the right thing, but overall the area has a deep problem.

[bachmeier → marcosdumay]

You're not going to take funding away from DSGE models because it's mostly individual researchers writing programs for themselves.

Ricardo Reis argues that macro has largely moved beyond real business cycles with frictions[1]. I'm not as optimistic as him, but DSGE is no longer as prestigious as it once was.

[1] http://personal.lse.ac.uk/reisr/papers/17-wrong.pdf

[nostrebored → marcosdumay]

Do you feel the same way about climate research?

[marcosdumay → nostrebored]

Climate researchers abandon models all the time.

[nostrebored → marcosdumay]

Necessarily, as none of their models work, which is a natural consequence of how complicated the system is, just like macroecon.