Losing your religion – EMH Edition
The efficient-markets debate is really a competition between two theories. The efficient marketeers, led by Eugene Fama and Kenneth French, see the market as rational and calculating. Value investors, exemplified by Benjamin Graham and Warren Buffett, see it as a bipolar creature, either ecstatic or depressed.
Losing My Religion: How I Unlearned Efficient Markets Folly
The Finance brain-drain
Based on a sample of 13 countries observed over the period 1980-2005, financial liberalization is associated with skill-upgrading in the financial sector. Also, financial liberalization decreases labour productivity, total factor productivity and value added growth disproportionally in industries which rely strongly on skilled labour. This is consistent with the idea that financial liberalization hurts non-financial sectors via a brain-drain effect.
Finance as a Magnet for the Best and Brightest: Implications for the Real Economy
Natural prices and marginal costs
The marginal cost of a good is the cost of producing one more of the good in question. Thus, in the case of the iPhone, for example, the marginal cost is how much it costs to produce one more iPhone, which, according to iSuppli, is $199 for the iPhone 5S. The floor for price cutting is called the “natural price,” and is equal to the marginal cost of the good.
What makes the software market so fascinating from an economic perspective is that the marginal cost of software is $0.
The link between an original mind and a troubled one
Creativity and mental illness share a process called “cognitive disinhibition.” Essentially cognitive disinhibition describes a failure to keep useless data, images, or ideas out of conscious awareness. This failure may make schizotypal personalities more prone to delusional thoughts or mental confusion; on the flipside, it could make creative minds more fertile.
What Neuroscience Says About The Link Between Creativity And Madness
The Only Way to Grow Huge
All companies that grow really big do so in only one way: people recommend the product or service to other people. The only way to generate sustained exponential growth is to make whatever you’re making sufficiently good.
5 most common regrets of the dying
When you are on your deathbed, what others think of you is a long way from your mind. Life is a choice. It is YOUR life. Choose consciously, choose wisely, choose honestly. Choose happiness.