I discuss three passages from George Akerlof and Paul Romer’s ) and Paul Romer explained in their famous article (“Looting: The. I have often written and spoken of my frustration that economists refuse to read George Akerlof and Paul Romer’s classic article (“Looting. Looting: The Economic Underworld of Bankruptcy for Profit. Our theoretical analysis shows that an economic underground can come to life if.

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Finance Refuses to Take Akerlof and Romer Seriously about Looting

Pratt was an academic economist. Mundell James J.

Archived copy as title Webarchive template webcite links Webarchive template wayback links Pages with citations lacking titles Pages with citations having bare URLs Articles with hCards Pages using infobox economist with unknown parameters All articles with specifically marked weasel-worded phrases Articles with specifically marked weasel-worded phrases from March Incomplete lists from December CS1 maint: Similarly, the reaction of these three groups to the finding by multiple investigations that 16 of the largest banks in the world committed crimes by setting LIBOR rates through frauds and cartels the largest cartel, by several orders of magnitude, in history was less than a yawn, as I described in prior articles.

Follow him on Twitter: Economists, even in a non-fantasy world, might actually read the work of a Nobel Laureate in economics and Paul Romer is one of the economists rumored to be under consideration for a Nobel.


Jenks Simon N. This entry was posted in William K.

This list is incomplete ; you can help by expanding it. No economist outside the small circle that work with me alerted his or her readers to the compelling data establishing the three accounting control fraud epidemics.

KruegerRobert M. Every additional repackaging has the potential for even more information loss.

Bankruptcy for profit occurs most commonly when a government guarantees a firm’s debt obligations. Samuelson Edward S. He is on the advisory board of the Institute for New Economic Thinking. Hoover Simon Kuznets John D.

EconPapers: Looting: The Economic Underworld of Bankruptcy for Profit

Gay Matthew B. Economic models are narrowly focused like this because they are generally designed to answer straightforward questions about causality: Adams Arthur T. Hadley Richard T. Samuelson Simon Kuznets John R. Entries include such information as loan characteristics principal debt, fixed or variable interest rate, duration, currency denominationborrower characteristics income, employment status, financial assets and liabilities, FICO score, delinquency and foreclosure statuscollateral characteristics ZIP code, type, size, age, and value of houseand, possibly, information on the originator or on the mortgage broker.

The norms are linked to a person’s social identities. President of the American Economic Association — He was elected a fellow of the American Academy of Arts and Sciences in To find out more, including how to control cookies, see here: Ripley Harry A.


This entry was posted in William K.

George Akerlof

Proudly powered by WordPress. Wall Street is pretty much expected to be this way, same way politicians are expected akerlkf be corrupt so we let it roll and never hold them accountable.

James Henry W. Arthur Lewis Charles L.

In his presidential address to the American Economic AssociationAkerlof proposed natural norms that decision makers have for how they should behave, and showed how such norms can explain discrepancies between theory and observed facts about the macroeconomy.

Akerlof and Lootinb explained the loan underwriting practices that make it clear that the officers controlling the lender are committing accounting fraud. Schultz Paul A. Solow Moses Abramovitz William J.

The problem with this explanation for events of the s is that someone who is gambling that his thrift might actually make a profit would never operate the way many thrifts did, with total disregard for even the most basic principles of lending: Shiller Alvin E. Musings on the Current State of Economics.