Economic Snapshots

Asymmetric Information?

Upon returning home after three days away, I was greeted by a surprising sight: three flowers in the same pot had bloomed despite the dimly lit environment in my absence. What struck me even more was that each flower had chosen a vastly different direction to bloom towards.

This unexpected display mirrors the intricate dynamics of economic transactions influenced by asymmetric information. Just as these flowers responded uniquely to their environment, individuals in markets may act based on incomplete or unequal information, leading to divergent outcomes. In this captivating scene, the flowers' varied orientations serve as a poignant reminder of how information disparities shape decisions and results, whether in nature or economics.

Water-Borne, Not Air-Borne

This photo captures the façade of the John Snow Pub on Broadwick Street in Soho, London, a humble tribute to the remarkable legacy of John Snow. In the mid-19th century, John Snow made a groundbreaking discovery that revolutionized our understanding of disease transmission. By meticulously analyzing data and employing rigorous reasoning, he identified cholera as a water-borne disease, challenging prevailing beliefs of its airborne transmission. Delve into the gripping narrative of the "ghost map" and explore Snow's role in combating one of London's most terrifying epidemics. You'll discover, as I did, the power of data analysis and robust causal inference in shaping our understanding of this complex world.

Heteroskedasticity

Imagine the horizon where land meets water as the horizontal axis of a graph. The treeline and its reflection are like data points illustrating heteroskedasticity—non-constant variance in econometrics. The varying heights of trees, some towering and dense, others short and scattered, mimic how data can show different levels of volatility over time. The further you look across the horizon, the more these differences become apparent, much like how variance in a dataset fluctuates, creating a dynamic and evolving landscape of uncertainty.

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