A question that people ask sometimes is, "What is your favorite paper in topic X written since y?"
It recently struck me that the reason I don't ever give a good answer is that it's a bit like the question, "What is your favorite beam in this building?"
It seeks assessment at the wrong level, both in terms of how most of us experience science, and in terms of what's important for its progress.
But it can take a while to see that!
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This was inspired by this @KevinZollman thread, which I like a lot because it says a similar thing at a different level (and in a different field).
(Although my analogy wouldn't come close to passing muster with a philosopher. Not all papers do the same sort of work as beams, a building comes about very differently from how a body of knowledge does, etc.)
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This terribly misguided paper is making the rounds.
This thread is to make it common knowledge what is wrong with it.
The basic thing: all modern economic theory allows for a gap between individual maximization and efficiency, whatever you mean exactly by each of these.
The first welfare theorem (individual optimization implies social efficiency) breaks down in the presence of frictions -
e.g., incomplete markets, asymmetric information, externalities, and market power.
Most economics today is about these frictions.
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Now, the paper has some halfhearted recognition of this, but says, effectively
"Well, you know, there is some meta-stage in which institutions are chosen, and economics assumes that this choice will be made to kill all frictions except the efficient ones."
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a few notes on it from an economist studying network theory
The striking thing about César's hit 2009 paper on economic complexity is that it doesn't mention eigen-anything and seems surprisingly disengaged from network theory.
The economic complexity index that Hidalgo and Hausman propose in "The building blocks of economic complexity" is a very close variant of Kleinberg's very famous 1999 HITS algorithm.
It's not clear whether they're aware of this connection, but in any case
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economists writing about networks in 2009, such as Jackson, Acemoglu, myself, and many others would have probably written the paper differently --
with a clearer consciousness to our big debt to the prior study of eigenthings as centrality measures!
I don't care at all about homework being done with AI since most of the grade is exams, so this takes out the "cheating" concern.
Students seem motivated to learn and understand, which makes the class very similar to before despite availability of an answer oracle.
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It's possible that (A) all the skills I'm trying to teach will be automated, not just the problem sets AND (B) nobody will need to know them and (C) nobody will want to know them.
Notice: A doesn't imply B and B doesn't imply C.
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A survey of what standard models of production and trade are missing, and how network theory can illuminate fragilities like the ones unfolding right now, where market expectations seem to fall off a cliff.