Econowmics Blog

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...

The Malthusian Trap

“I think I may fairly make two postulata. First, that food is necessary to the existence of man. Secondly, that the passion between the sexes is necessary and will remain nearly in its present state. These two laws ever since we have had any knowledge of mankind, appear to have...