tag:blogger.com,1999:blog-6837159629100463303.post5861874350509115543..comments2023-06-18T01:25:08.748-07:00Comments on Information Transfer Economics: Is information transfer economics hard?Jason Smithhttp://www.blogger.com/profile/12680061127040420047noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-6837159629100463303.post-11316411899975775992015-06-25T12:52:03.703-07:002015-06-25T12:52:03.703-07:00That would be one way to look at it -- I came up w...That would be one way to look at it -- I came up with an economic temperature that goes as 1/log M:<br /><br /><a href="http://informationtransfereconomics.blogspot.com/2014/06/the-macroeconomic-partition-function.html" rel="nofollow">http://informationtransfereconomics.blogspot.com/2014/06/the-macroeconomic-partition-function.html</a>Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-20739853045918689542015-06-25T12:24:14.415-07:002015-06-25T12:24:14.415-07:00Thanks again, Jason. :)
Is the transfer of inform...Thanks again, Jason. :)<br /><br />Is the transfer of information from the future to the present related to the increase of entropy over time in a closed system? Secular stagnation = the heat death of the economy? ;)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-79387788175993635552015-06-25T12:18:50.229-07:002015-06-25T12:18:50.229-07:00Thanks, Jason. :)
I figured that α′ was a maximum...Thanks, Jason. :)<br /><br />I figured that α′ was a maximum because information transfer is maximal at equilibrium, right?<br /><br />I will check out your post on Sumner's theory. One problem may be that in the post linked to earlier he is talking about recessions, and the correlation holds up during recessions.<br /><br />I read about Bernoulli's moral value of money years ago in a small book by Lancelot Hogben. As I recall, Bernoulli used it for the St. Petersburg paradox. The moral value of ΔM, how much you risk or spend, is relative to M, how much you have. I don't know why Bernoulli chose that ratio. Perhaps it had to do with the probability of losing one's stake in iterated wagers, a problem that he may have been the first to solve.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-80201977631750113842015-06-25T09:43:53.913-07:002015-06-25T09:43:53.913-07:00Ah, but blogging is fun! You get to make sarcastic...Ah, but blogging is fun! You get to make sarcastic comments and refer to an entire field as a bunch of idiots.<br /><br />[Joking]<br /><br />Bill -- I don't mind explaining things again because it helps <b>me</b> understand things better.Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-62837173699286231282015-06-25T09:37:02.793-07:002015-06-25T09:37:02.793-07:00I don't know if you'd seen this post where...I don't know if you'd seen this post where you can interpret the ITM in terms of transferring information about the future to the present:<br /><br /><a href="http://informationtransfereconomics.blogspot.com/2014/12/how-money-transfers-information-from.html" rel="nofollow">http://informationtransfereconomics.blogspot.com/2014/12/how-money-transfers-information-from.html</a><br /><br />However, I don't know if I can answer that question at present ... I will think about it.Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-39115578327154163072015-06-25T09:32:44.649-07:002015-06-25T09:32:44.649-07:00Hi Bill,
I'm not sure what you mean by saying...Hi Bill,<br /><br />I'm not sure what you mean by saying α′ is a maximum -- the prime notation there doesn't mean derivative. It is just a constant and the prime just distinguishes it from the constant α in Sumner's post.<br /><br />Actually in that post:<br /><br />$$<br />\alpha ' \frac{NGDP}{H} \equiv \alpha<br />$$<br /><br />Where the second α without the prime is Sumner's α. I actually have more to say about Sumner's theory here:<br /><br /><a href="http://informationtransfereconomics.blogspot.com/2015/01/is-this-market-monetarist-model.html" rel="nofollow">http://informationtransfereconomics.blogspot.com/2015/01/is-this-market-monetarist-model.html</a><br /><br />I'd never heard of Bernoulli's moral value of money -- I will check that out. Sounds interesting.Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-3520736006643192212015-06-24T22:31:16.517-07:002015-06-24T22:31:16.517-07:00Yes, Jason, I would be quite happy for you to refe...Yes, Jason, I would be quite happy for you to refer me to where you have already dealt with my questions, instead of explaining things once again. :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-66250289948161453942015-06-24T22:18:42.864-07:002015-06-24T22:18:42.864-07:00I still think it would help if you published, then...I still think it would help if you published, then you wouldn't have to explain everything every 10th post, and we would not have to dig through 100s of posts to figure out what you are talking about ;)Todd Zorickhttps://www.blogger.com/profile/10976192775890569092noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-19964971233336351452015-06-24T21:18:48.726-07:002015-06-24T21:18:48.726-07:00Another question.
Assuming a transfer of informat...Another question.<br /><br />Assuming a transfer of information from the future to the present in financial markets, do the increasing profits of the middlemen represent a loss of information?<br /><br />Thanks. :)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-80684928442661390582015-06-24T20:58:59.470-07:002015-06-24T20:58:59.470-07:00Hi, Jason. Were you at Los Alamos, or just vacatio...Hi, Jason. Were you at Los Alamos, or just vacationing in NM? I used to live in northern NM.<br /><br />Sorry to bother you, but I am trying to get my head around this. When you say<br /><br />dNGDP/dH=α′(NGDP/H)<br /><br />I naturally think<br /><br />δNGDP/δH = α′ <br /><br />So, OC, a log linear model makes sense.<br /><br />But then I think, Huh?<br /><br />But the equation holds in equilibrium, right? Since the information transfer is from NGDP to H, α′ is a maximum. A certain relative change in NGDP results in at most a certain relative change in H. <br /><br />If that is right, then at this point I have a couple of unrelated questions in my mind. First, my impression of marginalism, which may be quite incorrect, is that it is about absolute differences, not relative differences. IOW, the economics student really is thinking about linear models, not log linear models. Perhaps that is one reason for resistance among economists to the information transfer approach. <br /><br />The second question has to do with what Sumner is doing. He is vague in the post you referred to. Maybe his model fits an information transfer equilibrium, maybe not. In equilibrium a recession in the present, a relative drop in hours worked, could be caused by a relative drop in future NGDP -- but wait! Wouldn't that be a relative increase in future NGDP, as people spend the money they have accumulated in the present? Anyway, there is no obvious equilibrating mechanism, which is perhaps one reason why Sumner wants to have a futures market for NGDP.<br /><br />One more thing, ΔM/M is reminiscent of Bernoulli's moral value of money, but he was talking about its value to an individual, not to the economy as a whole.Anonymousnoreply@blogger.com