Dow Close (Wed) 7,997.28 427.47 (-)
Oil $52.69 -0.93
Economics from the perspective of astrophysics. Economics and astrophysics are highly mathematical, and both use models as predictors of the future. However, with the advent of modern physics (with the atomic bomb) the limitations of statistical models became blatantly clear. This is where economics and astrophysics diverge. Economics continued with the faulty statistical models (todate), while the experimentalists in physics continue to redefine the boundaries of physics. The problem is that with a statistical model there are no real restrictions or boundaries, they are pure thought experiments. While a dynamic model (like a CCD chip that makes a digital video camera work) has real physical limitations. If the model drifts outside these limits, the results will be readily visible. An example of this is the image quality as the number of pixels increases. Improvements in digital imaging technology are an improvement in pixel density. Errors in the model, produce errors in the image. The higher the pixel density the lower the errors must be. This is extended, further, into the computational models that produce the image standards jpeg, mpeg, avi, divx, Xvid or any other digital image compression model.
Standard, and current, economics models are the old statistical models with no such reality limitations, as with a dynamic model like the CCD chip. Under these models, and economic theories the financial crisis arose. Without alternatives, economists are turning to these very models, once again to steer through the problems. However, the physics dynamic modelling standards can by applied to any system - including economics.
Oil $52.69 -0.93
Economics from the perspective of astrophysics. Economics and astrophysics are highly mathematical, and both use models as predictors of the future. However, with the advent of modern physics (with the atomic bomb) the limitations of statistical models became blatantly clear. This is where economics and astrophysics diverge. Economics continued with the faulty statistical models (todate), while the experimentalists in physics continue to redefine the boundaries of physics. The problem is that with a statistical model there are no real restrictions or boundaries, they are pure thought experiments. While a dynamic model (like a CCD chip that makes a digital video camera work) has real physical limitations. If the model drifts outside these limits, the results will be readily visible. An example of this is the image quality as the number of pixels increases. Improvements in digital imaging technology are an improvement in pixel density. Errors in the model, produce errors in the image. The higher the pixel density the lower the errors must be. This is extended, further, into the computational models that produce the image standards jpeg, mpeg, avi, divx, Xvid or any other digital image compression model.
Standard, and current, economics models are the old statistical models with no such reality limitations, as with a dynamic model like the CCD chip. Under these models, and economic theories the financial crisis arose. Without alternatives, economists are turning to these very models, once again to steer through the problems. However, the physics dynamic modelling standards can by applied to any system - including economics.
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