Editing Economic model (section)

== Problems with economic models ==

Most economic models rest on a number of assumptions that are not entirely realistic. For example, agents are often assumed to have perfect information, and markets are often assumed to clear without friction. Or, the model may omit issues that are important to the question being considered, such as [[Externality|externalities]]. Any analysis of the results of an economic model must therefore consider the extent to which these results may be compromised by inaccuracies in these assumptions, and a large literature has grown up discussing [[problems with economic models]], or at least asserting that their results are unreliable.