Lordy Be this is scary

Someone is using one of my articles to teach people economics.

They’re also getting both opportunity cost and comparative advantage right – which really is scary.

6 thoughts on “Lordy Be this is scary”

  1. Talking of teaching people economics, here’s a question;

    In finance, you can strip the components of portfolio returns out, Fama, Sharpe, Jensen, Treynor, what have you.

    Is there a similar thing for the components of firm profits?

    That is; if the Coasian view of transaction costs is reasonably true, then you should be able to get something like risk free rate + transaction costs savings = a floor below which profits should not fall, and thus profit above that rate might be due to some mixture of skill, leverage and just being in the market.

    I can’t seem to find anything along these lines; the Du Pont thing is basically company specific. Anyone?

  2. Bloke in North Dorset

    My mate and former business partner took 5 years out to get a teaching qualification and ended up teaching finance and business studies at A Level. He’s ex Navy so not some like workshy liberal.

    I occasionally sent him stuff from this blog which he used (I remember one being a YouTube video of firemen in the USA letting a house burn down because the owners hadn’t paid in to the fund so only qualified for life saving only. The house owner was begging them to save his house and offered to pay.

    He couldn’t link to this blog because of the comments, and that was before Mr Ecks wandered along.

  3. BiND: Mr Ecks is the icing on the cake, the cherry on the sundae, the diadem upon the forehead of this blog! Their loss.

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