The Industry choice

[EP]

Bulba! <bulba at bulba.com> wrote:


> Frankly, I find such models to be built on over-stretched analogies
> to physics - how _exactly_ is gravity supposed to be an analogy
> equivalent to economic "forces"? Sure such model can be built - but
> is it adequate in explaining real-world phenomenons? Analogy
> tends to be the weakest form of reasoning. I'd be wary of making
> such analogies.


Apparently the Gravity Model is still of some interest, if recent citations are an indication.  I'm not an expert, but all the economic models I was taught were also grounded in math, not just analogy.

gravity models:  http://faculty.washington.edu/krumme/systems/gravity.html
some empirical studies:  http://www.hec.unil.ch/mbrulhar/Empirtrade/#gravity



> Models like this probably tend to be built by French engineers from
> this joke:
> 
> The American and French engineers work together on some 
> product (that would look strange nowadays but it's not impossible 
> in principle). 
> 
> The Americans show the French engineers a working prototype.
> 
> The French engineers scratch their heads and ask warily:
> 
> "OK, it works in practice; but will it work in theory?"
> 


Yeah, I hate it when people try to understand things.


cheers