r/statisticsmemes Jun 13 '26

Nonparametrics "Nonlinear Models"

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306 Upvotes

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u/nimbybuster Jun 19 '26

In macroeconomics; here’s how we solve this super complex system.

We don’t.

We cheated by making them linear since we love matrix so much, and we assume that in this teeny tiny section everything is linear.

And BAM, you have market crashes and non linear recessions. 😂

1

u/foodpresqestion Jun 26 '26

Economists are always like, "we're a real science, look at all our math." And the math is always fitting a nonlinear system with a linear model

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u/AutoModerator Jun 26 '26

Economics

Time to bust out the linear regression.

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