Economics professor: Economic models are wrong and invalid, but simple and useful

“The models [in economics] are all wrong. Many people have emphasized that point… That’s what makes economics different. These things are all invalid, but we work with wrong models because they are simple, and – of course – because they are useful.”
Stephen D. Williamson, Distinguished Professor, Department of Economics, Washington University in St. Louis and Vice President, Research Division, Federal Reserve Bank of St. Louis. (Professor Williamson’s comment on Noah Smith’s blog post, January 10, 2014)

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