An econ theory, falsified

I like reading Noah Smith's blog and particularly appreciate the fact that he's honest about which models really work and which should be set aside. The below quote is in answer to a commenter.

http://noahpinionblog.blogspot.com/2016/12/an-econ-theory-falsified.html

From the site:

A model can work well in one situation and not work well in another. For example, Econ 101 supply-and-demand theory (also called "price theory") might do a great job of describing the market for oranges, but a terrible job for describing the market for stocks and bonds. An analogy is physics. "Frictionless projectile motion" (the first theory most high school students learn) is a great model for cannonballs, and a terrible model for falling feathers. Every model should have a "domain of applicability".