15 February 2008

The Difference between Economics and Physics

In economics, one assumes people are rational. In physics, one tests assumptions.

Economics
Physics
Both graphs feature real data of complicated systems. Both data should be linear, according to theory.

6 comments:

Anonymous said...

Hehe, so true :-)

Anonymous said...

How about showing some labels on the axes? Might help to put the comparison into context.

Robert McLeod said...

The data are proprietary and has been modified by multiplying both axes by random numbers to disguise its true source, so no.

Anonymous said...

(quote Aesop)The data are proprietary and has been modified by multiplying both axes by random numbers to disguise its true source, so no.

.... the data may be proprietary but a rough description of the physics graph isn't if it's based on a known and published theory and if you really have multiplied by random numbers then what's the worry ???


That we'll find out you're telling porkies to spice up your boring blog??

BTW: is english your second language....? The data are proprietary.... the data IS proprietary, or the data SETS are proprietary

Robert McLeod said...

Don't be bitter my anonymous economist.

BTW, data is plural:

http://dictionary.reference.com/browse/data

Please read the usage note.

docjmd said...

My name is Jeffrey M Doyle. I ATTENDED THE UNIVERSITY OF MICHIGAN, ANN ARBOR AND MICHIGAN STATE UNIVERSITY, RECEIVING MY Ph.D. IN 1977.
FOR OVER THIRTY YEARS MY [AND OTHERS] IDEAS WERE DISMISSED AS UNPROVEN AND NOT RELEVANT. TODAY MOST
OF WHAT I PROPOSED IN A 1977 PH.D. DISSERTATION HAS NOT ONLY GAINED ACCEPTANCE BUT IS BEING ACTIVELY
PROMOTED AND PUT INTO PRACTICE. BETTER LATE THAN NEVER.
IN TERMS OF OUR ECONOMY, WE ARE CURRENTLY IN THE WORST SHAPE SINCE THE GREAT DEPRESSION OF 1929. HARD
CORE, DEEPLY ENTRENCHED ADVOCATES OF NARROWLY DEFINED ECONOMICS WILL STAUNCHLY DEFEND THEIR
ICONIC VIEWS-EVEN IN THE FACE OF ONE DISMAL FAILURE AFTER ANOTHER. GALILEO’S REWARD FOR PROVING THAT
THE EARTH ORBITED THE SUN INSTEAD OF THE OPPOSITE SCENARIO ESPOUSED BY THE VATICAN, LED TO A LIFETIME OF
HOUSE ARREST.


Economics is not physics. The behaviour of human beings is not nearly as predictable as matter in physics [be it sub-atomic or macro.] While I understand the desire of many Economists to regard their Discipline as a deterministic, mathematically precise science, the reality is [with notable exceptions conceded] it is not a mechanistically elegant discipline like physics.

INTERDISCIPLINARY UTILIZATION AND INTEGRATION OF PHYSICS, BIOLOGY AND ESPECIALLY THERMODYNAMICS
INTO ECONOMIC ANALYSES, WILL GREATLY ENHANCE OUR ABILITY TO ADDRESS AND SOLVE CURRENT SOCIAL PROBLEMS--ESPECIALLY IN THE THE AREAS OF OF ENERGY AND ECOSYSTEM STABILITY