Econowmics Blog

The Cheerleader Effect

“I don’t want to hear another negative word about cheerleaders. If it weren’t for cheerleaders, who would tell us when and how to be happy during athletic events? If it weren’t for cheerleaders, how would America’s prettiest girls get the exercise that’s so vital to a healthy life?”  Let It...

Casino de-Monte Carlo

Monte Carlo Simulation

If you hear a “prominent” economist using the word ‘equilibrium,’ or ‘normal distribution,’ do not argue with him; just ignore him, or try to put a rat down his shirt. Nassim Nicholas Taleb Monte Carlo simulation refers to a bewildering range of techniques to make estimations of some unknown parameters...

Measuring inequality: The 20:20 ratio

“The first man who, having fenced in a piece of land, said “This is mine,” and found people naïve enough to believe him, that man was the true founder of civil society. From how many crimes, wars, and murders, from how many horrors and misfortunes might not any one have...