QUOTES

D.G. Champernowne & F.A. Cowell
Expertise in other branches of economic study is of limited assistance in studying economic inequality and income distribution.

Lester C. Thurow
Under the random-walk model, the wealthy are not wealthy because of their productive contribution is higher than others, but because they are luckier than others.

Fred Schwed Jr
I know that there is more skill to stock speculation [than to coin flipping]. What I have never been able to determine is … how much more?

Warren E. Buffett
Benjamin Graham's disciples have used Graham's value investing approach to realize phenomenal success in the stock market.

J. Aitchison & J.A.C. Brown
In economic data skew frequency curves are the rule rather than the exception.

Thomas Jefferson
I believe that banking institutions are more dangerous to our liberties than standing armies.

BOOKS

Modeling Bounded Rationality
by Ariel Rubinstein
Usually, economic models do not spell out the procedures by which decisions of the economic units are made; here, we are interested in models in which procedural aspects of decision making are explicitly included. (full text pdf)

An Assessment of the Small Business Innovation Research Program at the Department of Defense
by the Committee for Capitalizing on Science, Technology, and Innovation
At the request of the U.S. Congress, the National Academies conducted a comprehensive study of how the SBIR program has stimulated technological innovation and used small businesses to meet federal research and development needs.

ARTICLES

Econophysics
Does an Iron Law of Inequality exist?

The predictive power of zero intelligence in financial markets
by J. Doyne Farmer et al
Recognizing limitations in human cognition, economists have increasingly explored models in which agents have bounded rationality. We take this direction even further here by testing a model of trading in financial markets that drops agent rationality almost altogether.

Technical Considerations in the Stock Market: Fibonacci Number
Time after time, corrective or countertrend rallies do not end at indiscriminate points, but at spectacular ratios that are found everywhere in nature. (pdf)

ILLUSTRATIONS

Probability Machines
Image gallery posted by Index Funds Advisors
Pictures and diagrams related to probability, the Normal Curve, and Francis Galton.

SUMMARIES

Econophysics of Wealth Distributions,
ed. Arnab Chatterjee et al
With the availability of accurate data, several robust features of the income distribution have been established.

The Wealth Inequality Reader,
The authors completely miss the stochastics determinants of wealth inequality.