I came across really interesting presentation by Prof. Andrew Lo (MIT World) presenting his recent work: Warning: Physics Envy May be Hazardous to Your Wealth
In short he talks about the Risk and Uncertainty in Economics. He presents a new 5 level model with which you can better evaluate your current risk.The cool part is that he goes back to Mathematics – Physics – Chemistry – Biology – Economics – History – Philosophy – Religion in order to defince his “Spectrum of uncertainty”.
“(On explaining the title of the talk) Physics envy, is this desire to be able to explain 99% of all economic phenomenon with 3 laws. That’s what physicists can do. In fact we (economists) have 99 laws that explain maybe 3% of all phenomenon.” Prof. Andrew Lo