Sunday, April 24, 2011

The Importance of Statistics

Via Marginal Revolution, a post which explains why the housing bubble never showed up in the cost of living index.

And Yglesias wonders whether finance really adds to the GDP.

 The bottom line to me: there's the set of activities which are paid for; the set of activities which are reflected in various indices, the set of activities which provide real value to people.  The three sets overlap, but don't coincide.

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