Is There an Offsetting Effect of the National Level?

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The law of lost numbers worths must pass he micro level than at the mackerel level. The only hope is to rely less on public policy, says burnankee. Large doesn't have skinin thegam and large has his warped incentives,. And as a libertarian, i like the government to be the last resource.

Nassim Taleb of NYU-Poly talks with EconTalk host Russ Roberts about his recent paper (with Constantine Sandis) on the morality and effectiveness of "skin in the game." When decision makers have skin in the game--when they share in the costs and benefits of their decisions that might affect others--they are more likely to make prudent decisions than in cases where decision-makers can impose costs on others. Taleb sees skin in the game as not just a useful policy concept but a moral imperative. The conversation closes with some observations on the power of expected value for evaluating predictions along with Taleb's thoughts on economists who rarely have skin in the game when they make forecasts or take policy positions.