Common Errors in the Interpretation of the Ideas of The Black Swan and Associated Papers
Nassim Nicholas Taleb
NYU-Poly
October 18, 2009
Abstract:
The point of The Black Swan is that both empirical knowledge (i.e. extrapolating statistics) and a priori theories fail in the tails and it is vital to "robustify" against it using the concepts of "the fourth quadrant". The point has been garbled by members of the economics establishment that claim mistakenly "we know that" and "we know about fat tails" or "power laws". This is both wrong and not my point. The paper presents corrections to the misperceptions.
Number of Pages in PDF File: 7
Keywords: Black Swan, Risk Management, Finance, Markets
JEL Classification: D8, G11, G12, G13, N
working papers series
Suggested Citation
Taleb, Nassim Nicholas, Common Errors in the Interpretation of the Ideas of The Black Swan and Associated Papers (October 18, 2009). Available at SSRN: http://ssrn.com/abstract=1490769 or http://dx.doi.org/10.2139/ssrn.1490769
