The Financial Crisis and the Systemic Failure of Academic Economics
AbstractThe authors of the article claim that the economics profession appears to have been unaware of the long build-up to the current worldwide financial crisis and to have significantly underestimated its dimensions. In their view, this lack of understanding is due to a misallocation of research efforts in economics. They trace the deeper roots of this failure to the profession’s insistence on constructing models that, by design, disregard the key elements driving outcomes in real-world markets. The economics profession has failed in communicating the limitations, weaknesses, and even dangers of its preferred models to the public. This state of affairs makes clear the need for a major reorientation of focus in economic research, as well as for the establishment of an ethical code that would ask economists to understand and communicate the limitations and potential misuses of their models.
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Bibliographic InfoArticle provided by N.P. Redaktsiya zhurnala "Voprosy Economiki" in its journal Voprosy Economiki.
Volume (Year): 6 (2010)
Issue (Month): ()
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Other versions of this item:
- David Colander & Hans Föllmer & Armin Haas & Michael Goldberg & Katarina Juselius & Alan Kirman & Thomas Lux & Birgitte Sloth, 2009. "The Financial Crisis and the Systemic Failure of Academic Economics," Discussion Papers 09-03, University of Copenhagen. Department of Economics.
- David Colander & Hans Föllmer & Armin Haas & Michael Goldberg & Katarina Juselius & Alan Kirman & Thomas Lux & Brigitte Sloth, 2009. "The Financial Crisis and the Systemic Failure of Academic Economics," Middlebury College Working Paper Series 0901, Middlebury College, Department of Economics.
- David Colander & Hans Föllmer & Armin Haas & Michael Goldberg & Katarina Juselius & Alan Kirman & Thomas Lux & Brigitte Sloth, 2009. "The Financial Crisis and the Systemic Failure of Academic Economics," Kiel Working Papers 1489, Kiel Institute for the World Economy.
- A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
- B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
- G1 - Financial Economics - - General Financial Markets
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- repec:cfs:cfswop:wp200604 is not listed on IDEAS
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
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by chris dillow in Stumbling and Mumbling on 2009-03-30 13:29:57
- Is de economische wetenschap verantwoordelijk voor het ontstaan van de kredietcrisis?
by Hans Blommestein in Me Judice on 2009-11-25 12:00:00
- Temporary Crisis or Paradigm Shift?
by matthiasgreiff in Matthias Greiff on 2009-10-19 18:50:21
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