Stress best

Stress best


“Professions that have more variable earnings, like taxi-driving or prostitution, are less vulnerable to really big shocks. They also use volatility as information: if a cabbie is in a part of town where there are no fares, he heads to a different area.”

This is an interesting piece, guess economists are more familiar with risk than decreasing returns in physics terms.

Also, notice that general banking criteria for assessing value at risk do not reflect the above situation, which could lead to a question of how much economics interests are linked to ‘moral’ and ‘political’ ones, instead than ‘amoral’ evaluation of value at risk.


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