Gold

It has been obvious from the coverage of the coronavirus pandemic that most people simply do not understand the nature of models. This is not surprising. Models are messy things, and few people have spent much time thinking about how they work. There are two parts to a model. First, there is the structure of the model, which is a bunch of mathematical equations that show how one thing is connected to another. The number of equations and the mathematical complexity of the equations can both … [Read more...] about What Economic Models Can and Can’t Tell Us