on the Piketty craze [not a book review]

The controversy about the data in Piketty’s Capital in the 21st Century fed a dozen articles in the NYT last week, not to mention other newspapers… To the point of Bloomberg producing this parody of a glitzy popular press cover. I have not read the book, nor intend to read it, but I find the buzz and controversies rather surprising. (Thomas Piketty will actually give a public BBC interview in Paris-Dauphine and in English two weeks from now, on June 19.) Indeed, the book sounds to me like a data analysis of extensive (and elaborately processed) datasets rather than the construct of a new economic theory. And I could not see how the criticisms from the Financial Time were anywhere beyond the obvious ideological.  I was thus pleased to read Francis Diebold’s blog on this craze. And to see the repeated acknowledgements that Piketty’s data being made public was a great thing. Although somewhat dismayed that such a painstakenly gathered dataset was not submitted to a more advanced econometric/statistical processing than the one offered by Excel… Definitely looking forward a more [statistically] involved analysis  of the data. (Unsurprisingly, Nassim Taleb reanalysed the whole craze as missing the fat tail features of wealth accumulation. With new aphorisms like “the fastest road to bankruptcy in foreign exchange was an economics degree”.)

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