Econophysics and the Distribution of Wealth: A Comment
نویسندگان
چکیده
Some recent papers have proposed models of trading which produce realistic-looking distributions of wealth. While they are technically correct, this Comment argues that the models require undeclared simplifications that make them unreliable for the purpose of guiding government policy and that limit their value as part of a long term research project. Though the papers claim persuasive empirical support for their models, many of the undeclared simplifications have empirical propositions that are easily refuted. Since a key step in the models is a dismissal of the economists’ favorite price mechanism, it is important to realize why the models do not propose a coherent alternative.
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