Tuesday, April 19, 2011

Unidentified exogenous variables vitiate extremophiles' hyper-rationalistic hubris.

If not, they should! tlt.gs/FtFvHybrid           
But pierced politically-powered paradigms' proponents persist.
See:  Face-to-Face ?vs.? Hybrid, Blended, Online, ...

We, educators, citizens, not only economists, need "an ethical code that would ask [proponents] to understand and communicate the limitations and potential misuses of their models." - Statement excerpted and modified from Abstract below.

"One might ask, how can we explain the persistence of the paradigm for so long? Partly, it must be because, in spite of its deficiencies, it did provide insights into many economic phenomena. ... But one cannot ignore the possibility that the survival of the [neoclassical] paradigm was partly because the belief in that paradigm, and the policy prescriptions, has served certain interests." Joseph E. Stiglitz. 2001 Nobel Prize lecture: p. 524 "Concluding Remarks" in "INFORMATION AND THE CHANGE IN THE PARADIGM IN ECONOMICS"

The economics profession appears to have been unaware of the long build-up to the current worldwide financial crisis and to have significantly underestimated its dimensions once it started to unfold. In our view, this lack of understanding is due to a misallocation of research efforts in economics. We trace the deeper roots of this failure to the profession's focus on models that, by design, disregard key elements driving outcomes in real-world markets.

The economics profession has failed in communicating the limitations, weaknesses, and even dangers of its preferred models to the public. This state of affairs makes clear the need for a major reorientation of focus in the research economists undertake, as well as for the establishment of an ethical code that would ask economists to understand and communicate the limitations and potential misuses of their models."

^ Colander, David; Follmer, Hans; Haas, Armin; Goldberg, Michael D.; Juselius, Katarina; Kirman, Alan; Lux, Thomas; and Sloth, Birgitte: "The Financial Crisis and the Systemic Failure of Academic Economics". (March 9, 2009). Univ. of Copenhagen Dept. of Economics Discussion Paper No. 09-03  Available at SSRN: http://ssrn.com/abstract=1355882

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