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Economic Models:Edit

The human mind is limited so we need to abstract in order to have Knowledge (incidentally this summarizes most institutions and stereotypes). We make simplifications to reduce the complexity or to make rough approximations to what is actually going on; or about to happen. Usefulness cannot be judged based on realism but only on predictability (does this mean that models based on theory should be rejected when competitive with flawed theory models which predict well? This seems like a justification for the plug and play version of economics rather than the theory, maybe I have this wrong).


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