Possible Insight

Archive for September 2008

Who's Curious About the Financial Crisis?

with one comment

So as not to waste my expensive schooling, I still keep up with economics as a hobby.  I don’t expect other people to generally share this interest, but it occurred to me that the current financial crisis is an excellent example of what happens when a complex adaptive system experiences a shock.  Is anybody curious to have us discuss this topic?  If so, what is specifically interesting to you?  My short answer is to read everything by Arnold Kling at EconLog.  Of course, I have a lot more thoughts if anyone wants to hear them.

Written by Kevin

September 29, 2008 at 9:15 pm

Don't Cop Out on Knightian Uncertainty

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I apologize for the posting lull. I actually spotted an issue than I wanted to address a few weeks ago, but I’ve been pondering how to approach it.  It’s pretty complicated and subtle.  I even ran a couple of drafts by Rafe to refine my thinking.  So please bear with me.

As I’ve mentioned before, I am a fan of Dave Zetland. When I saw him propagate what I think is a fundamentally false dichotomy in this post, I knew I had to take on the concept of Knightian uncertainty. It crops up rather often in discussions of forecasting complex systems and I think a lot of people use it as a cop out.

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Written by Kevin

September 19, 2008 at 7:00 pm