Sunday, June 29, 2014

Lagrange number and economics

I am not quite the expert I should be, but they derive from the Markov numbers, and they are real, they are actually learned by trial and error in the economy. They bound the degrees of freedom, and the Markov tripple go as:
 (1,1,1), 1,1,2), (1,2,5). Look at the resulting Lagrange numbers as band stops. The degrees of freedom go as 1,2,3; and that is the base.  2 and 3 are the logarithm bases in integers that bound the natural log, and are the most efficient integer basis in terms of minimizing redundancy.

So, I think we are going to see DC going linear, and the next level out, small states the Fed, for example, will be square noise.  But farther out, the Californians, Texans and Central Americas have to triangulate, they have to watch the square variance of all the parties in and around DC. That is why we see these shrewd moves by Jerry Brown, and company, to strike a de with DC just in the nick of time.  And that is why we often have these rotating presidents coming from California and Texas. To triangulate is to keep the bounds absolutely separate, then look to make moves in phases of three relative to the squares.

Stiglitz screening

Economically, I think that is just taking the log of the representative samples. It allows the screener to keep an orthogonal list of separable types of transactions and people.  It is one of the basis for Kling and PSST.

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