National Cranberry Coorperative

The Financial Crisis and the Systemic Failure of Academic economic cognition* David Colander, incision of economics Middlebury College Middlebury, VE, USA Hans Föllmer Department of math Humboldt University Berlin Berlin, Germany Armin Haas Michael Goldberg Potsdam constitute for Climate Impact Research Whittemore School of production line & Economics Potsdam, Germany University of New Hampshire Durham, NH, USA Katarina Juselius Department of Economics University of Copenhagen Copenhagen, Denmark doubting Thomas lux 1 Department of Economics University of Kiel & Kiel Institute for the gentleman preservation Kiel, Germany Alan Kirman GREQAM, Université dAix-Marseille lll, EHESS et IUF Marseille, France Brigitte Sloth Department of Business and Economics University of grey Denmark Odense, Denmark Abstract: The economics business appears to have been unsuspecting of the wide build-up to the current worldwide financial crisis and to have significantly underestimat ed its dimensions at ane time it started to unfold. In our view, this lack of spirit is due to a misallocation of interrogation efforts in economics. We trace the deeper grow of this failure to the professions insistence on constructing models that, by design, disregard the key elements impetuous outcomes in real-world markets.

The economics profession has failed in communicating the limitations, weaknesses, and take down dangers of its preferred models to the public. This enunciate of affairs makes clear the need for a major change of direction of focus in the research economists undertake, as well as for the establishment of an eth ical codeal code that would take up economi! sts to come across and communicate the limitations and potential misuses of their models. Keywords: financial crisis, academic honourable hazard, ethic responsibility of researchers * This opinion paper is the outcome of one workweek of intense discussions within the working group on simulation of Financial Markets at the 98th Dahlem Workshop, 2008. We are grateful to Carlo Jaeger and Rupert...If you neediness to get a full essay, order it on our website: BestEssayCheap.com

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