Conclusion

- So in conclusion, I have five principles for you for thinking about how to use economic models for prioritization and investment decisions. Principle one is to use economic models. Hopefully in the course of this module, you've seen that simple economic models don't need to be terrifying. It's just arithmetic. It's pretty simple stuff is drawing pictures on boards and then having a chat about ballpark numbers and then performing some simple arithmetic. It's not rocket science. But just because the model doesn't represent reality exactly, it doesn't mean that it's not useful. We can use these tools in a very powerful way, even with lots of simplifications and assumptions, as a way of thinking through problems in a rational way and capturing our assumptions and creating a shared understanding. And that is incredibly useful even if you have to make a bunch of simplifications and assumptions in order to create a model…