Posts Tagged ‘Thomas Robert Malthus’

…certainly for Trondheim

onsdag, september 30th, 2009

“One of us (Akerlof) remembers a dinner conversation a few years ago. During the housing boom a distant relative from Norway – by marriage, known only from a brief encounter at a family wedding – had reportedly bougth a house in Trondheim, for more than $ 1 million. That seemed like a lot of money – perhaps not for New York, Tokyo, London, San Francisco, Berlin or even for Oslo – but certainly for Trondheim, up the Norwegian coast, on the edge of settlement, and vying for the title of most northern city. Nor was it a mansion. This thought remained quietly parked in Akerlof’s brain classified along with other observations that property values were high in Scandinavia.»
«Recently Akerlof told his co-author, Shiller, that he had been wondering if he should have given more thought to the Trondheim story. We discussed the matter. This seems to be a mental lapse, accepting this story of the high price as nothing more than an insignificant oddity. On the contrary, Akerlof should have seen it as an incongruity requiring active thought, to be resolved within the context of a lager view of the markets.»

Fra boken «Animal Spirits: How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism» av George A. Akerlof Nobel-vinner  2001 og Robert J. Shiller.