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Response to worrying trends in econophysics

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  • McCauley, Joseph L.

Abstract

This article is a response to the recent “Worrying Trends in Econophysics” critique written by four respected theoretical economists [1]. Two of the four have written books and papers that provide very useful critical analyses of the shortcomings of the standard textbook economic model, neo-classical economic theory [2,3] and have even endorsed my book [4]. Largely, their new paper reflects criticism that I have long made [4,5,6,7,] and that our group as a whole has more recently made [8]. But I differ with the authors on some of their criticism, and partly with their proposed remedy.

Suggested Citation

  • McCauley, Joseph L., 2006. "Response to worrying trends in econophysics," MPRA Paper 2129, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:2129
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    File URL: https://mpra.ub.uni-muenchen.de/2129/1/MPRA_paper_2129.pdf
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    References listed on IDEAS

    as
    1. Gallegati, Mauro & Keen, Steve & Lux, Thomas & Ormerod, Paul, 2006. "Worrying trends in econophysics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 370(1), pages 1-6.
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    More about this item

    Keywords

    General equilibrium; uncertainty; conservation laws; money nonconservation; nonintegrability of dynamical systems; financial markets; stochastic processes;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • C0 - Mathematical and Quantitative Methods - - General
    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics

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