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Tuesday, October 10, 2006

Comments

jon livesey

I wonder if it is really useful to study shocks like JFK's assassination or 9/11 which have mixed eonomic effects. Each of these produced short-term anxiety in the public, but had longer term stimulative effects. I wonder what the result of a study would be that considered, say, a major oil-field being taken out of production for a period of years, or the closure of the Straits of Hormuz for a year-plus, or a widespread banking meltdown in the emerging world. Would the bounce-back still emerge from his model, or would we see a step change.

A. PERLA

livesay: "Each of these produced short-term anxiety in the public, but had longer term stimulative effects"

Death stimulates the economy?

You are not about to win a Nobel Prize in economics for that bit of insight. ; ^ )

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