Friday, January 21, 2011

Research to follow

From Thoma:
Finite formula found for partition numbers
Economists will look at this new partition formula to model the heteroskedacity they see in household debt problems. If they can verify the model for expanding variances in their measures, then they can get a better handle on channel theory.  Those spreading variances is what separate the Austrians from the Keynesians.  The research will point toward the Young-Fibonacci lattice and supposedly arrives at a limiting function for that lattice which gives a true algebra rather than an incidence algebra.  If economists have this limiting function than they can continue to use minimum variance method, and they will be much closer approximation to channel theory.  For example, watching the housing market as the economy progresses, the DSGE models could give a measure of the sparsity of development o the peripheries of metropolitan areas.

No comments: