September 09, 2003

Huh?

Stephen Karlson at Cold Spring Shops writes,

The role of existence proofs in blackboard economics is overstated. Most of what we teach, and a great deal of our theoretical research, is characterization results. That there is a mapping from a simplex to itself is useful; that the underlying behavior involves the extinguishing of all arbitrage opportunities is essential.

I then scanned the John Quiggin post Stephen linked to and got a slightly better understanding of existence proofs. No insight, which helps me understand why I might want an advanced econ degree but have no desire to teach or do research in a mainstream econ department.

I don't mean to knock anyone's research which may be very valuable. I'm just more sympathetic and partial to Mises' and Hayek's methodology and approach to economics.