Theory of Knowledge - Course Companion for Students Marija Uzunova Dang Arvin Singh Uzunov Dang

But an even bigger danger would
credentials.
to throw our hands up in defeat.
be
would also be dangerous to disregard the
It
of mathematical reasoning and clearly
benefits
balance needs to be struck in the human
a
Romer states the following.
sciences.
other side of the discussion should not
The
neglected. There are disciplines such
be
econophysics and social physics that
as
blur the boundaries between
effectively
natural and human sciences, using
the
tools inspired by physics to
mathematical
and explain human behaviour
understand
interactions in crowds, markets and
and
complex social systems. The term
other
was introduced by H. Eugene
“econophysics”
following his observation that a very
Stanley,
number of papers on stock markets were
large
of Income & Wealth Distributions. His
Econophysics
not a one-o example; the list of physics-trained
is
the arrival of “big data”, social scientists
With
hoping that analyses of huge market
are
powered by statistical tools and
datasets,
learning, will reveal insights about
machine
behaviour. Whether these insights
human
generalized into human laws remains to
canbe
example, financial economics has been
For
particular focus for quantitative research
a
by physics, but behavioural economics
inspired
not. Some of the criticisms voiced by
has
and Krugman allude to the fact that
Romer
methods may have spread too far,
quantitative
quickly and without enough consideration,
too
may well be a reflection of their success,
which
failure. It would also be a mistake to
not
economics as too “mathy” or anything
describe
because, as we have seen, it is not a
else
discipline but a field consisting
monolithic
varied subdisciplines with considerable
of
of methodology.
differences
I. Scope
I. Scope
Counter-claim
A number of disciplines have wholeheartedly
embraced mathematical tools and applied models
Making connections
from physics to economic problems.
For example, the physicist Bikas Chakrabarti
Understanding statistics as a layperson
The opaqueness of the statistics behind knowledge
has applied the kinetic theory of gas to models
of markets, and co-authored a book entitled
claims becomes an ethical issue when these claims
are made in law, health or other domains of human
decision-making with signicant consequences.
Chapter 11 explores knowledge issues with the use
economists is too long to provide here, and includes
luminaries such as Jan Tinbergen, the rst ever
of statistics in section IV.
recipient of the Nobel Prize in Economics, and widely
considered one of the most inuential economists
of the 20th century.
If the participants in a discussion are committed
to science, mathematical theory can encourage a
unique clarity and precision in both reasoning and
be seen.
communication. It would be a serious setback for
our discipline if economists lose their commitment
to careful mathematical reasoning.
(Romer 2015)
written by physicists.
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