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Do you feel Economics is too theorized, that its unapplicable to real life? Watch

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    (Original post by W.H.T)
    I think its so competitive because loads of money-driven people have the perception that an economics degree guarantees a well paid job a city investment bank.
    Don't think so.



    I personally really enjoy Economics for what it is; studying it at uni would additionally give me a structured way to learn all about it. In fact, I probably won't choose to go into a career path which uses exclusively-Economics-type-knowledge anyway. I'll probably end up being a teacher.

    Your appreciation of decision making and the assessment of decisions/policies/etc should ideally substantially increase as an Economics student in my opinion. This to me gives you a quality that I think is really essential to us as people and citizens.

    Also, you say that at the end of the day, things change and even if you study Economics the conclusions aren't 100% certain. Well, who do you think is more likely to be better at predicting things pertaining to economies - someone who has read a nice amount of books (but lacking higher statistical/mathematical skills with an unexercised brain when it comes to thinking logically), or an Economics graduate who has probably read a few books anyway.
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    (Original post by danny111)
    But my point was you asked if it is too theoretical. People said what they thought. And you basically conclude it is too theoretical. Are you waiting for someone to convince you it's not?

    Don't do economics.

    If you wanna do something that has an ultimate practical tool do architecture or engineering. Not even law or medicine as those aren't accurate. Practical in a sense but not accurate.
    I asked people's opinions and I have my own which I've put in the first post.

    Not waiting for someone to convince me that its not, but I'm looking for people's opinions and responses. Obviously, disagreements and arguments are bound to occur in a discussion and its only natural that challenges are made for people to justify their views.

    Although I have an opinion of this question, I haven't concluded on this yet. The whole point of this thread is to bring together all of TSR's economists' views and hopefully at the end, I along with others can come out with a better understanding of this issue.
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    (Original post by W.H.T)
    I asked people's opinions and I have my own which I've put in the first post.

    Not waiting for someone to convince me that its not, but I'm looking for people's opinions and responses. Obviously, disagreements and arguments are bound to occur in a discussion and its only natural that challenges are made for people to justify their views.

    Although I have an opinion of this question, I haven't concluded on this yet. The whole point of this thread is to bring together all of TSR's economists' views and hopefully at the end, I along with others can come out with a better understanding of this issue.
    I also do not really think you should take up Economics at uni if you cannot appreciate its application in life etc It makes me really sad when I see someone questioning Economics' usefulness because it does not offer 100% accuracy.

    If you do not enjoy or appreciate one of the main joys of Economics (the skills, qualities and mindset that you gain) then you won't be getting the most out of the degree anyway. These can all be applied to any job you strive for.
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    Economics is not 100% pure. The theories are based on assumptions and forecasts. You can apply it to your life, some points you will get result and in some you will get yourself down. Like if you choose to invest some money buying stocks and shares you might end up earning yourself some revenue when the share price rises or you might end up having a loss. Profit and loss account depends on your knowledge about the economical condition of the market. Again I can give an example from my life, I'm a smoker. I smoke Benson & Hedges (that's the brand name) which cost 110 units of money for one packet in my country. Now whenever I'm a little down with my wallet I buy one packet of Pilot (that's a different brand) which costs 18 units of Bangladeshi Taka. Yes the taste differs slightly, but I'm consuming enough tobacco with a little amount of money.

    I can give another real life example like I'm standing on the taxi stand for a ride to New Market cuz I need to buy some cloths for the winter, suddenly I noticed someone else also there seeking a taxi for the same direction. Now if I make plans and share the taxi with that person then I can split my costing to half, enjoy the company of a new friend, maybe then we can do some shopping together also, but then again I say Economics is not a pure science, the person I choose to share the taxi might turn out a kidnapper or some sort of mental sicko or whatever (its good not to trust strangers).
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    (Original post by Makubex)
    I can give another real life example like I'm standing on the taxi stand for a ride to New Market cuz I need to buy some cloths for the winter, suddenly I noticed someone else also there seeking a taxi for the same direction. Now if I make plans and share the taxi with that person then I can split my costing to half, enjoy the company of a new friend, maybe then we can do some shopping together also, but then again I say Economics is not a pure science, the person I choose to share the taxi might turn out a kidnapper or some sort of mental sicko or whatever (its good not to trust strangers).
    Well economics comes into that as well. If you are risk averse then you would be willing to pay a risk premium for the security that you are not bearing risk that your new friend is a kidnapper. If the risk premium that you are willing to pay is greater than the difference between sharing the taxi and paying for it alone, then you pay for it alone. All this is based on the assumption that the taxi driver is not going to kill you, but then you have to have some assumptions in an economic model...
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    (Original post by MagicNMedicine)
    Most economics students are basically social science students who are a bit more mathematically competent, ie the type of student who would do politics or sociology but is decent at maths rather than just being an essay writer. Then you get some economics students (usually from overseas in my experience) who are mathematical and think in very logical terms, but struggle with essays and don't tend to 'think outside the box' much so they don't like questions which aren't phrased in terms of a mathematical problem.

    I reckon the first group of students is better suited to economics than the second. The first group sometimes finds the maths frustrating and difficult to understand, but the second group ends up finding the whole subject frustrating.
    Hmm, I would identify more with your so-called "second group" and I so far haven't found it frustrating (provided that there are decent models to use). Perhaps that's because the course here is quite mathematical, with an emphasis on econometrics.
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    The biggest problem stems from no one ever really knowing what an Economics degree will entail in the first place. It differs wildly between universities, and expectations are so hard to meet.

    I went to university with the expectation of understanding why things happened in the world - I wanted to be able to take a case-study and be able to explain the dynamics that contributed to such. I probably took one, maybe two modules that got remotely close, the rest was theoretical BS with little in the way of empirical support and anything beyond the scope of formal mathematical formulas with outrageous assumptions.

    Applied econometrics is incredibly useful and arguably one of few 'vocations' that may stay with you after, but fundamentally it is statistics. The only thing that separates "econometrics" and "statistics" is that one always exists within the domain of Economics - nothing more.

    Economics was a waste of 3 years of my life. Vocationally, at least. I know a few people versed as well, if not better, in the applications of economics in a real life context who've never touched a text book in their life. Sad, but true.
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    (Original post by NothingOnYou)

    Applied econometrics is incredibly useful and arguably one of few 'vocations' that may stay with you after, but fundamentally it is statistics. The only thing that separates "econometrics" and "statistics" is that one always exists within the domain of Economics - nothing more.
    I don't want to sound rude, but this comparisons of metrics and statistics suggests you don't actually know the difference between the two. If you think metrics is statistics done in economics and that is the only difference, then you must have missed some things along the way. I mean do you think that the statistics done for drug tests and similar stuff is the same, in the end just statistics? Maybe I misunderstood what you meant.

    I agree with the rest, a lot of economics at uni is theoretical and does not have immediate direct, accurate consequences/applications in real life.
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    (Original post by danny111)
    I don't want to sound rude, but this comparisons of metrics and statistics suggests you don't actually know the difference between the two. If you think metrics is statistics done in economics and that is the only difference, then you must have missed some things along the way. I mean do you think that the statistics done for drug tests and similar stuff is the same, in the end just statistics? Maybe I misunderstood what you meant.

    I agree with the rest, a lot of economics at uni is theoretical and does not have immediate direct, accurate consequences/applications in real life.
    With regards to drugs tests - to say economists don't use control groups and experiment groups in a similar way isn't fair. It's a simple diff-in-diff. Fundamentally it's statistics at heart - the applications may be different, but uses of given methods are rarely exclusive to Econometrics. But we digress.
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    (Original post by NothingOnYou)
    With regards to drugs tests - to say economists don't use control groups and experiment groups in a similar way isn't fair. It's a simple diff-in-diff. Fundamentally it's statistics at heart - the applications may be different, but uses of given methods are rarely exclusive to Econometrics. But we digress.
    That would be because D-i-D are particular to experiments (of any sort). And they aren't wide spread in economics because we simply don't have enough natural experiments and controlled ones are kind of difficult to implement.

    And I guess my point was, how can you estimate an economic system if you have no idea of economics. I.e. a statistician might know all the stats, but he would have to learn the economics of the problem involved.
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    A 'degree' study of economics is stupid, as everything you are learning effectively more than 2 years out of date.
 
 
 
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