Epstein Secrets

nvariants of this type might lay the foundations for an entirely novel type of theory." Schumpeter (1949, p. 155), discussing the Pareto law — via [Gabaix 2009] This paper introduces some mathematical and simulation models and supports these models with various theoretical ideas from economics, mathem

nomists. These ideas include recent research in market microstructure, liquidity, post-Keynesian pricing theory as well as the work of Foley, Keen, Smithers, Shiller, Cooper, Pettis, Pepper & Oliver, Mehrling, Lyons and others. Neoclassical economics, while forming an intellectually beautiful framework,

a particular focus of attention, as its form gives rise to constant shares of returns to labour and capital. (I am somewhat reluctant to criticise Gabaix, as he is one of the few economists who has recognised the importance of power-laws and other 'anomalous' invariants in economics. However his quote

classical economics becomes a much more powerful theoretical method than neoclassicism. The economic historians such as Reinhart & Rogoff, Shiller, Smithers, Harrison, Napier and Bernholz have the advantage of the long sweep of history to prevent them from accepting high- faluting theory that disagrees w

butions, and the split of the returns from labour and capital are all long-standing 'anomalies' within economics. Economists such as Schumpeter and Gabaix have noted these regularities [Gabaix 2009]. Why almost all other economists, even heterodox economists such as Gallegati et al, have shown such dis

model. This then becomes much more significant at the level of the whole stockmarket, especially in the light of the extensive work by Shiller and Smithers regarding the long-term valuation of stock markets. This work is very well summed up in 'Wall Street Revalued' [Smithers 2009]. The central thesis