Sunday, October 27, 2019

Filling in Hayek's triangle

Here they decomposed the value added net over a complete sequence. Otherwise known as filling the rows of Hayek triangle.

Take a complete sequence of oil deliveries over the natural inventory cycle. Create the equivalent generator. Feed the generator a uniform random sequence, read off the output one 'leaf' at a time.

The method is based on information theory but information is really about structured queues, generators.

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