Documentary Of The Week: Ergodicity In Economics And Finance
Written by John Lounsbury
Ergodicity is a property sometimes misapplied in economics. A system is ergodic if the time average of a process and the position average are identical. This week’s video is a lecture that explains just what that means in simple processes and how economics is impacted. Hat tip to @LarsPSyll who has this video on his blog. Prof. Syll refers to the subject as “wonkish” (which it may well be), but its understanding is of fundamental importance for anyone interested in economics and financial systems.
Source: http://econintersect.com/pages/contributors/contributor.php?post=202011050543
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