XXVI Edition

14-15-16 December 2017"

Evaluating Economic Policies: A Case for (and of) Suggestive Simulations

Bhide Amar, Tufts University

Economists, like natural scientists, focus on general tendencies limiting the practical utility of traditional closed-form economic models. My paper first makes a general argument that emulating the more pluralistic techniques used to develop engineering and medical technologies – would make evaluations of policy choices more reliable. I then offer a specific example of how a simulation model (that has no closed form solution) can help evaluate policies that affect loan evaluations by banks.

Area: Financial Regulation and Supervision

Keywords: banking, regulation, economic methodology

Paper file

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