Category Archives: LSU

Joan’s Farrier

Ain’t everybody cut out to be Joan of Arc. The old proverb goes something like this: For want of a nail… For want of a fastener, the buffer between soft feet and rough terrain came aloose and emperilled the mission. … Continue reading

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Asymptotically Valid Co-Variance Estimator

Did you get yours yet? I heard all the hip variance-co-variance matrices are into bondage validity this year. Econometric validity requires two conditions: no bias and consistency. This may be the first time the egg-heads got it right. Back to the … Continue reading

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Faith-Based Econometrics

It’s wrong like bacon fried Twinkies are wrong. It’s wrong like laughing during Schindler’s List. Not caring about the matrix algebra fundamentals underlying the SAS/Stata commands is wrong when I am cultivating a lifelong habit of learning.** Does a girl … Continue reading

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There Ain’t No Such Thing as a Power Nap

We’re all familiar (or should be) with TANSTAAFL, aka There Ain’t No Such Thing As A Free Lunch. I’ve coined a complementary term: TANSTAAPN. Nothing’s free. Not lunch, not gas station car washes, and most certainly not naps in the … Continue reading

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Exponential Decay

Went to lunch with this youngster today. He was unaware that you could start suffering from sleep injuries* as early as the mid-thirties. A sleep injury occurs when you go to bed at the regular time, sleep the same number … Continue reading

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Log Likelihood

A problem from yesterday: Suppose you observe n iid normal variables from the normal density, X ∼ N(µ, σ 2 ), where σ 2 is known. (A) Find the maximum likelihood estimator of the mean µ. L is for likelihood, where L(θ; … Continue reading

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Mean Reversion

There’s this theory called mean reversion and it more or less boils down this: things move to the middle. It’s an old idea– what goes up must come down. Yesterday LSU fired Les Miles. As much as his rote play-calling … Continue reading

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