Saturday, October 28, 2017

Relative primeness and compact generators

Consider two sequences, semi random.  Each sequence can be represented by a generator that produces the typical sequence in a set of random sequences.  I can define relative primeness, the one compact generator is a multiple of the other if the matching error between typical sequences is a bound wiener process.

Consider government goods and private sector goods.  Economists construct the problem as a hard partition, they do not always consider black market resale of government goods.  Thus, in this model, all the matching uncertainty is retained as tradebook uncertainty in matching private and public sector goods.  The compact generator for government goods is illiquid relative to private sector goods, not all parties will get the fair ratio between government goods and private goods, but they will restructure to restore the fairness in subsequent transactions.

Obamacare is the classic example of business restructuring going forward such they they eliminate the wage setting most disincentivized by Obamacare taxes.  There is no legitimate way to resell Obamacare goods at a discount.Matching error grows, unbound.  It is the construction, the hard partition.  government never allows the private sector to find the matching wage settings such that we get a stable quotient algebra, government keeps enforcing the relative prime rule. Hence the spiral. 

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