Comment by nivertech
6 days ago
I think we're talking apples vs oranges.
The thread was about economists, not quants.
> There's no analytic solution to complex economic systems in practice.
yes
6 days ago
I think we're talking apples vs oranges.
The thread was about economists, not quants.
> There's no analytic solution to complex economic systems in practice.
yes
It started that way. I was responding to the assumption that time is the underlying variable of all economics. Then someone said everything reduces to time and they brought up Black-Scholes, a quant tool to price options. I didn't bring it up lol. My point is simply no, time is demonstrably not fundamental at all.
Edit: an LLM thinks I'm overly dismissive of: - Standard economic modeling - Dynamic macroeconomic theory - Agent-based economics - The legitimate uses of time in economics
This is true. I think causal inference in finance and economics is difficult. As Ludwig von Mises argued, mathematical models give spurious precision when applied to purposeful behavior. Academic ideas don't have a built-in feedback loop like in quant finance.