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Costs not in the news…boring Part 1

…5.5-year period in 4553 newly diagnosed patients, stratified by age, risk group, and ethnic group In the first 6 months after diagnosis, direct prostate-related costs per patient were high ($11,495)…

Gasoline: A Time for Caution

…companies to postpone refinery maintenance. All of these solutions are short term and carry significant risks. According to the DOE, existing stocks of gasoline are already below the normal range…

Housing and Recession

…abundant liquidity can readily disappear. Any onset of increased investor caution elevates risk premiums and, as a consequence, lowers asset values and promotes the liquidation of the debt that supported…

Fixed Exchange Rates and China’s Growth

…to compensate for a modest amount of systematic risk. Of course, one could argue that there are substantial political risks in investing in enterprises in the People’s Republic of China….

Crony Capitalists of the World – Unite

…a bond rating agency, downgraded both Ford and General Motors bonds to junk status. That is, it sees a significant risk that the companies won’t be able to pay their…

More Junk Science for Luskin

…the webpage of Aswath Damodaran. Under Research and Papers is his working paper entitled Estimating Risk Premiums, which uses the same Gordon growth model that Baker-DeLong-Krugman used. It is true…

…implementing them. Much data shows that Germans are rather risk averse and value the status quo highly. A visible manifestation of this is the provision of high unemployment and welfare…

…a lot of potentially valid claims at risk. There are two categories of errors in scientific hypothesis testing: a false negative (rejecting a true hypothesis), and a false positive (failing…

…off. Earlier, I said this entails “an extremely high degree of risk-aversion”. Why? Suppose you are in the Original Position, designing the structure of society and its rules, but not…