Max Lybbert

“In principle, we can estimate and even test the general equilibrium model. ...

In practice, we probably won't try to estimate or test the most general version of the model. The costs of gathering detailed data on tastes and technology, and of experimenting with the economy, are too high. If we decide not to test the general equilibrium model, I think we should keep it around to help organize our thinking about stylized facts and other data.”
― Fischer Black, Exploring General Equilibrium

“Many of the models in the literature are not general equilibrium models in my sense. Of those that are, most are intermediate in scope: broader than examples, but much narrower than the full general equilibrium model. They are narrower, not for carefully spelled out economic reasons, but for reasons of convenience. I don't know what to do with models like that, especially when the designer says he imposed restrictions to simplify the model or to make it more likely that conventional data will lead us to reject it. The full general equilibrium model is about as simple as a model can be: we need only a few equations to describe it, and each is easy to understand. The restrictions usually strike me as extreme. When we reject a restricted version of the general equilibrium model, we are not rejecting the general equilibrium model itself. So why bother "testing" the restricted version? If we reject it, we will just create another version.”
― Fischer Black, Exploring General Equilibrium

“I have had no formal training in economics of finance. I do not fully understand some of the tools and concepts used by those who have had that training. Sometimes I think I'm close, but then they slip away. I question many conventions in economic research; but in some cases, it's just that I don't fully understand them.

I can't help but look at the big picture. The world is becoming more specialized, as my own theories suggest. I too try to specialize, but my mind keeps wandering. As a result, I make errors, both small and large. I don't like errors, and I'd appreciate help in finding them.”
― Fischer Black, Business Cycles and Equilibrium

“How many people haven't dies because I killed the Withered that would have killed them? How many people have died because I kicked the hornet's nest and woke the hounds of hell?”
― Dan Wells, The Devil's Only Friend