What is Physics Envy and who has it?
Physics Envy is what Economists and Financial analysts get when they find out what physicists can do. Physicists have a model, a collection of mathematical formulas and, with a set of initial conditions, they can (essentially) predict the future. At least predict the future to a level of practical utility, certainty, and repeatability that they can land a man on the Moon and get some rovers to Mars.
Wow! Even though Econ and Finance folks have models and they can crank a lot of math they can’t do that in their discipline. When Econ and Finance people turn the crank on their models they don’t get much of anything – at least anything for the predictability of financial markets at the level of certainty that would be the analogue of getting a man on the moon, a rover to Mars, landing an Intercontinental Ballistic Missile to within a…
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