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976 andrew gelman stats-2011-10-27-Geophysicist Discovers Modeling Error (in Economics)


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Introduction: Continuing “heckle the press” month here at the blog, I (Bob) found the following “discovery” a little overplayed by David H. Freedman , who was writing for Scientific American in the following article and blog post: Blog: Why Economic Models are Always Wrong Article: A Formula for Economic Calamity The article’s paywalled, but the blog entry isn’t. Apparently, a geophysicist named Jonathan Carter (good luck finding him on the web given only that information) found that when he simulated from a complicated model, then fit the model to the simulated data, he sometimes got different results. What’s more, these differing estimates fit the data equally well but made different predictions on new data. Now we don’t know if the model was identifiable, had different local optima (i.e., multiple modes), how he fit the data, or really anything, but it doesn’t really matter. Reading the comments and article is a depressing exercise in the sociology of science, with clueles


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1 Freedman , who was writing for Scientific American in the following article and blog post: Blog: Why Economic Models are Always Wrong Article: A Formula for Economic Calamity The article’s paywalled, but the blog entry isn’t. [sent-2, score-0.335]

2 Apparently, a geophysicist named Jonathan Carter (good luck finding him on the web given only that information) found that when he simulated from a complicated model, then fit the model to the simulated data, he sometimes got different results. [sent-3, score-0.608]

3 What’s more, these differing estimates fit the data equally well but made different predictions on new data. [sent-4, score-0.212]

4 , multiple modes), how he fit the data, or really anything, but it doesn’t really matter. [sent-7, score-0.11]

5 So I’m going to join the crowd and file it under “the press misunderstanding science”. [sent-9, score-0.207]

6 Cluefulness to the Rescue I’ll maintain my optimism about humanity as a whole, though, because some of the commenters were on the right track. [sent-10, score-0.313]

7 Commenter number six, jayjacobugs , gets it right, pointing out that scientists should be doing sensitivity analyses (though I’d look at more than just “changing variables”). [sent-11, score-0.086]

8 And then commenter thirteen, LeighCaldwell , reminds the readers that economists are well aware of this problem. [sent-12, score-0.204]

9 At the risk of sounding like an old curmudgeon, I remember when Scientific American enlisted domain experts to write articles. [sent-14, score-0.282]

10 I was envious that my boss at Bell Labs, Steve Levinson (along with Mark Liberman, of The Language Log ), had written a Scientific American article on speech recognition. [sent-15, score-0.418]

11 The article didn’t assume calculus, but it also didn’t assume readers were idiots waiting to be titillated by a “scandal. [sent-16, score-0.376]

12 ” One of the things that got me interested in math and science was the mathematical games column of Martin Gardner , from which you could learn serious mathematical reasoning with only American middle-school math classes. [sent-17, score-0.736]

13 Speaking of American math education, kids in the U. [sent-18, score-0.224]

14 who like math should envy Christian Robert ‘s daughter, who is learning Monte Carlo integration in the equivalent of American tenth grade. [sent-20, score-0.424]


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