View source for 12 Alternative Principles
From Critiques Of Libertarianism
Jump to:
navigation
,
search
<!-- you can have any number of categories here --> [[Category:Chris Dillow]] [[Category:Thomas Sargent]] [[Category:Economics 101]] [[Category:Economics Alternatives]] <!-- 1 URL must be followed by >= 0 Other URL and Old URL and 1 End URL.--> {{URL | url = http://stumblingandmumbling.typepad.com/stumbling_and_mumbling/2014/04/12-alternative-principles.html}} <!-- {{Other URL | url = }} --> <!-- {{Old URL | url = }} --> {{End URL}} {{DES | des = Thomas Sargent gave a speech with 12 supposed principles of economics. Here's an alternative set. | show=}} <!-- insert wiki page text here --> <!-- DPL has problems with categories that have a single quote in them. Use these explicit workarounds. --> <!-- otherwise, we would use {{Links}} and {{Quotes}} --> {{List|title=12 Alternative Principles|links=true}} {{Quotations|title=12 Alternative Principles|quotes=true}} {{Text | An old speech by Tom Sargent has had some praise and some criticism. But what would a more heterodox list of 12 economic principles look like? Here's my effort, observing Sargent's constraints of concision and relevance for young people starting out in life: 1. People have different motivations: wealth, power, pride, job satisfaction and so on. Incentive structures which suit one set of motives might not work for another. 2. Many things are true but not very significantly so. 3. Power matters: conventional economics under-states this. 4. Luck matters. The R-squareds in Mincer equations are generally low. 5. There is a great deal of ruin in a nation, and in an organization. 6. Individual rationality sometimes produces outcomes which are socially optimal as in Adam Smith's invisible hand, and sometimes not. 7. Trade-offs between values are more common than politicians pretend, but are not ubiquitous. 8. Cognitive biases are everywhere. 9. Everything matters at the margin, but the margin might not be very extensive. 10. The social sciences are all about mechanisms. The question is: which ones work when and where? This means there are few if any universal laws in the social sciences; context matters. 11. Accurate economic forecasting is impossible. But time-varying risk premia might give us a little predictability. 12. Risk comes in many types. Reducing one type of it often means increasing exposure to another type. }}
Template:DES
(
view source
)
Template:End URL
(
view source
)
Template:Extension DPL
(
view source
)
Template:List
(
view source
)
Template:Quotations
(
view source
)
Template:Red
(
view source
)
Template:Text
(
view source
)
Template:URL
(
view source
)
Return to
12 Alternative Principles
.
Navigation menu
Views
Page
Discussion
View source
History
Personal tools
Log in
Search
Search For Page Title
in Wikipedia
with Google
Translate This Page
Google Translate
Navigation
Main Page (fast)
Main Page (long)
Blog
Original Critiques site
What's new
Current events
Recent changes
Bibliography
List of all indexes
All indexed pages
All unindexed pages
All external links
Random page
Under Construction
To Be Added
Site Information
About This Site
About The Author
How You Can Help
Support us at Patreon!
Site Features
Site Status
Credits
Notes
Help
Toolbox
What links here
Related changes
Special pages
Page information
Guidelines To Create
Indexable Page/Quote
Indexable Book/Quote
Indexable Quote
Unindexed
Templates
Edit Sidebar
Purge cache this page