The links between elaborate economic models and reality can be downright mysterious! In 1959 one economist described economic models this way:
“Econometric theory is like an exquisitely balanced French recipe, spelling out precisely with how many turns to mix the sauce, how many carats of spice to add, and for how many milliseconds to bake the mixture at exactly 474 degrees of temperature. But when the statistical cook turns to raw
materials, he finds that hearts of cactus fruit are unavailable, so he substitutes chunks of cantaloupe; where the recipe calls for vermicelli he uses shredded wheat; and he substitutes green garment die for curry, ping-pong balls for turtle’s eggs, and, for Chalifougnac vintage 1883, a can of turpentine.” Stefan Valavanis – quoted in Kennedy, P., 2008. A Guide to Econometrics, 5th ed., p. 2.)
Valavanis’ main concern is the quality of empirical data that economists introduce into their models—the classic garbage-in/garbage-out problem. But the larger point is that reconciling economic theory with reality has not been a particularly strong suit for the field of economics. Quite a lot of economic theory must be accepted on faith. These leaps-of-faith are… [Read more...]
There is no doubt that Arts & Culture contribute to the health and well being of any community, state and country. However, a focus on the arts as a mere source of revenue and financial gain for any group is shortsighted myopic tunnel-vision. The primary purpose of the arts is self expression that provides joy, meaning, and new perspectives on the lives we are living. If profit and financial gain are side bars of works of art so be it, all the better. But let us not confuse filling our bank accounts with fueling our spirits and enhancing quality of life. The power and richness of the arts goes beyond the cost of a front row seat or someone sitting in the balcony. Art like the rain can nuture all who thirst for beauty and goodness regardless of the cost of admission or profit gained by the impresario