Veřejná přednáška Učené společnosti „The Convenient Untruths of Economics and Finance“

/ 30.04.2017 /

Učená společnost ČR Vás srdečně zve na veřejnou přednášku, která se koná v pondělí 22. května 2017 od 17:00 hod. v místnostech 205, 206 budovy AV ČR, Národní 3, Praha 1. Přednášku s názvem „The Convenient Untruths of Economics and Finance“ pronese prof. Harbir Lamba (Department of Mathematical Sciences, George Mason University).

Abstract

Mainstream economics and finance continue to be dominated by mathematical models based upon highly unrealistic assumptions --- in particular, that people behave perfectly rationally and independently of each  other. The surprise should not be that such models sometimes spectacularly fail but that they are still used at all!

I will give a brief account of the (often unintentionally amusing) development of neoclassical economics. This was motivated by a belief that economic forces will always result in a unique (equilibrium) solution as occurs in many physical systems. I shall discuss why this approach was doomed to fail, the kinds of mathematical models that may be required, and the intrinsic limitations on plausible economic and financial forecasting.

The talk will have a mathematical perspective but will not involve any detailed mathematics.