FAQ

Bulba! 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

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