factual

Economics Is Non-Stationary Because People React

Unlike chemistry or physics, economics is highly non-stationary: laws change because people think and react to what economists say, so a predicted behavior can be undone once people read the prediction and act differently, making the science fundamentally harder.

factualpending

Speaker

Paul Pfleiderer

Evidence Quote

So if economists say people are probably doing this, it's going to lead to this, maybe some people read that and then they don't act that way. They act a different way.

Source

Paul Pfleiderer on the Misuse of Economic ModelsEconTalk
Created: 6/13/2026, 12:27:00 AM

My Notes

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