Mid Apr-13 I read about this here. And many quality media have discussed it ...
Not necessary to repeat that the results of the famous academic paper were often used and influenced important economic and political decisions ... Interesting that the mistakes were discovered by a student.
A few days ago, Michael Kelly, Wolfram Technology Group, published Is High Debt Bad for Economic Growth? in Wolfram Blog.
Michael showed that such errors are unlikely when using Mathematica's explicit functional programming style - stability and robustness tests are straight forward.
I totally agree and add that this is one of the reasons why we have decided to integrate our UnRisk derivatives analytics engines (numerically optimized in C++) into Mathematica.
The programming power behind UnRisk solutions is UnRisk-Q - its financial objects, functions and utilities are declarative, functional Mathematica language constructs. Cross-model tests and high level across-scenario tasks are so easy ...
Why is Mathematica not commonly used in economical circles? IMO, because it is not so obvious to see that economic data, models and methods need to be organized orthogonally.
