Econowmics Blog

Normal good, inferior good, Giffen good

“For example, the supporters of tariffs treat it as self-evident that the creation of jobs is a desirable end, in and of itself, regardless of what the persons employed do. That is clearly wrong. If all we want are jobs, we can create any number–for example, have people dig holes...

R: Fibonacci Sequence

One one two, three five eight Sounds so simple, nothing great Thirteen, twenty-one, thirty-four The hinges creak on an opening door A repeating patter of the masters hand Signing his work, the universal plan Learn to look, the pattern’s plain to see In the smile you flash, the dance of...

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...