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Ricardo Hausmann & J. Doyne Farmer on Evolving Technologies & Market Ecologies (EPE 03)

COMPLEXITY

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The Distribution of Productivity

David Frum: There's a huge diversity in the distribution of productivity. The distributions are very heavy tailed, he says. And this is a really important factor that needs to be taken into account when people think about productivity,. He argues economists have been doing things like quoting standard deviation or drawing away negative tail and taking logrhythms which give you a very distorted view of what's going on.

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