Walk at Potsdam(6)

Walk at Potsdam(5)

Walk at Potsdam(4)

Walk at Potsdam(3)

Walk at Potsdam(2)

Why Economists Use Models?

When I was at Osaka University, my professor told me the reason why economists use unreal models as an explanation of reality.

He quoted from a great British economist of the 20th century,

A model which took account of all the variegation of reality would be of no more use than a map at the scale of one to one. Joan Robinson (1962)

Since then, I've tried to study the tools of dynamic optimization.

variegation: –noun
1. an act of variegating.
2. the state or condition of being variegated; varied coloration.
Random House Unabridged Dictionary, © Random House, Inc. 2006.

David Cass Passed Away

(Picture from U of Penn, department of economics)

I didn't know that David Cass, well-known economist for "Ramsey-Cass-Koopmans model", had recently passed away.

I told this model before as an optimal economic growth model, but it's a very casual explanation.

If you want to know about it more accurately, it would be much better for you to read David Romer, Advanced Macroeconomics, Chapter 2.