Weekly Update 8.25.17

2 Comments

brushhog's picture
brushhog
Status: Bronze Member (Offline)
Joined: Oct 6 2015
Posts: 41
What I like about Martinson

What I especially like about Martinson and his page is how he offers solution and an actual plan to deal with upcoming difficulties. He's not just running around telling us that the sky is falling, nor is he telling eveyone to go out and only buy gold. The good thing aboiut following Martinson's advice is that...even if he is wrong and we never see the collapse in our lifetimes...you're life will be enriched and improved anyway. Getting out and learning to plant a garden is a richly rewarding activity...putting up some solar panels will benefit you even if its just an ordinary power outage....getting to know like-minded people in your community can lead to rewarding friendships and broaden your circle. Its all good stuff no matter what.

_mongo's picture
_mongo
Status: Member (Offline)
Joined: Mar 11 2015
Posts: 6
Wealth: redistribution and Intetest Rates

More interesting stuff from Ole Peters on classical economics and the "ergodic hypothesis" vs non-equilibrium processes and negative wealth reallocation.

 

https://ergodicityeconomics.com/2017/08/14/wealth-redistribution-and-int...

 

An Empirical Test of the Ergodic Hypothesis: Wealth Distributions in the United States

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2794830

Abstract

Classical studies of wealth inequality make the "ergodic hypothesis" that rescaled wealth converges rapidly to a stationary distribution. This allows powerful analytical techniques but constrains models. We test the hypothesis and find it unsupported by data. In a simple model of a growing economy with wealth reallocation, we fit the reallocation parameter to historical United States wealth data. We find negative reallocation, i.e. from poorer to richer, for which no stationary distribution exists. When we find positive reallocation, convergence to the stationary distribution is slow. Both cases invalidate the ergodic hypothesis. Studies which make it should be treated with caution.

 

 

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