Friday, January 3, 2014

Top three posts of 2013

I've only had this blog running since April of 2013, but here are the top three most popular posts since then:

#1: Deriving the IS-LM model from information theory. I was actually quite proud of this post so I'm glad it takes the top spot. The post itself goes through the derivation of the IS-LM model in the information transfer framework at a high level. The IS-LM is a standard model taught in economics classes and as a model that came out of the Great Depression has come to the forefront of economic discourse during the Great Recession.

#2: The long run in the UK. Paul Krugman put up a link to three centuries of economic data from the UK; this post tests the information transfer model against that data and shows that the model does an excellent job.

#3: The information transfer model. This is one of my first posts and basically summarizes the results of this paper so I can't really take much credit for it. My contribution has been using this information transfer model to describe economics rather than the physical processes in the original paper. However, it is quite amazing that a model powerful enough to derive the IS-LM framework (#1) or empirically describe 140 years of inflation data (#2) can be described in less than 300 words (and 3 equations).

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