Anybody interested in the future of mathematical theory in economics should read Cesar Hidalgo’s book Why Information Grows. There are many things to like about this lucid account of the evolution of our scientific understanding of information. One of the most important may be the simplest. It illustrates what it means to think like a physicist.
Thinking like a physicist is very different from using such tools from physics as partial differential equations. In fact, many of the economists who seem most interested in the tools of physics seem least inclined to think like a physicist. Continue reading “Why Information Grows”