Daron Acemoglu and others write,
sufficiently high levels of sectoral heterogeneity can lead to systematic departures in the frequency of large economic downturns from what is implied by the normal distribution.
It sounds like a PSST story to me.
Daron Acemoglu and others write,
sufficiently high levels of sectoral heterogeneity can lead to systematic departures in the frequency of large economic downturns from what is implied by the normal distribution.
It sounds like a PSST story to me.
In English?
Oh, thank you, thank you. I thought I was just being stupid [again].
As best as I can tell, the translation is “this sucker could go down.”
Arnold is from St. Louis. His homeboy T.S. Eliot summed up the whole PSST thing, illustrated by the Acemoglu quote that is really only saying that a diversified economy is less prone to downturns, nicely a hundred years ago in a lovely essay on William Blake (it might him quoting Blake – I can’t tell because I am copying off a crappy kindle edition): “He who would do good to another must do it in Minute Particulars. General Good is the plea of the scoundrel, hypocrite, and flatterer; For Art and Science cannot exist but in minutely organized particulars…” Call it The St. Louis School.
Academese is right… OK in English:
As an economy becomes more and more specialized, crashes and recessions occur more often that you’d expect.