One thing astute readers of my missives may have noticed is that I almost never write about theoretical models. The reason is simple, most models in economics and finance are useless. John von Neumann famously said: “With four parameters I can fit an elephant, and with five I can make him wiggle his trunk.”
This post reminds me of one of my favourite jokes: And economist, mathematician and logician are on a train that crosses over the border into Scotland and they see a black cow. The economist says: All the cows in Scotland are black. The mathematician says: There is at least one cow in Scotland that is black. The logician says: There is at least one side of one cow in Scotland that is black.
Thanks for the thoughtful blog. I always enjoy reading it.
This post reminds me of one of my favourite jokes: And economist, mathematician and logician are on a train that crosses over the border into Scotland and they see a black cow. The economist says: All the cows in Scotland are black. The mathematician says: There is at least one cow in Scotland that is black. The logician says: There is at least one side of one cow in Scotland that is black.
Thanks for the thoughtful blog. I always enjoy reading it.