Physics Envy Doesn’t Bite, But It Stings

The term “physics envy” conjures an amusing image of an economist lying on a reclining lounge, talking his heart out to everyone’s favourite psychoanalyst. Physics has sneaked its way into Economics and Finance from the Brownian Motion assumption for the Black- Scholes Option Pricing Model to the Gravity Model of International Trade in International Economics. Economics has always been struggling to find its place in the Sciences, (even being proposed to replace Engineering as the ‘E’ in STEM). Too mathematical with its complex statistical and econometric tools, yet not as succinct as…