Santiago Arrúe Gowland

Economía y programación

[2001 Live @25YearsAgoLive]

Enron executive Lou Pai completes the sale of 340,000 shares of Enron stock, cashing out $250 million and formally leaving the company. His reasoning is unknown.

[Santiago Arrúe Gowland @SAGonomics]

@yoaorios @Volckerist Malo Rios

[Hayashi Heikichi @lianda_edu]

econ version：

An assistant professor of microeconomic theory at a university failed his tenure review after years of struggling to publish in Econometrica or the QJE.

He was cast out into the brutal academic job market, but that year, the market completely collapsed.

He couldn't even land a lecturer position at a third-tier state school, and corporate recruiters rejected him for corporate strategy roles, calling his work "hopelessly theoretical."

Eventually, he swallowed his pride and reached out to his old grad school classmate. This friend had seen the writing on the wall during their second year of the PhD program, mastered the art of "quitting with a Master's," and started a plumbing contracting business. He was now the biggest plumbing boss in the tri-state area.The friend looked at the exhausted, broken academic and sighed. "I get it, man. You’re a high-level micro theorist. You used to spend all day on mechanism design and game theory. Why don't you come work for my company as a plumber? You’ll earn half your old professor salary, but with overtime, union benefits, and blue-collar health insurance, you'll be way better off than you ever were as an academic peasant. But remember: when you apply, tell them you only completed seven elementary classes. These plumbers hate high-and-mighty academics, especially the theory guys."So it happened. The former economics professor became a plumber, and his life significantly improved. He just had to tighten a bolt or clear a pipe occasionally, his cash flow was robust, he no longer suffered the torture of Revise & Resubmit, and his mental fatigue completely vanished.

One day, the board of the plumbing company issued a new mandate: to improve grassroots operational efficiency, every plumber had to attend evening classes to earn a "Basic Cost & Material Allocation" certification. So, our ex-professor had to go there too.

It just so happened that the very first class was about "Plumbing Inventory Procurement under a Finite Budget."The evening instructor, looking to gauge the students' background knowledge, casually asked the room: "If you have a fixed budget and need to buy two types of pipes, and their unit prices and drainage efficiencies are fixed, how do you allocate your budget to maximize total efficiency?"The person asked was the ex-professor.He habitually adjusted his glasses and walked up to the whiteboard. In that instant, he realized he had been dealing with abstract topological spaces for so long that he had forgotten how to solve a dummy-proof, high-school-level arithmetic question. His occupational disease flared up instantly. He decided he had to derive it from first principles.He filled the whiteboard with symbols.He first defined a consumption set $X \subset \mathbb{R}^2_+$ and posited that the plumber’s preferences satisfied strict monotonicity, strict convexity, and continuity. To guarantee an interior solution, he solemnly scribbled the Inada Conditions in the corner.

Next, he constructed a continuously differentiable, quasi-concave utility function $U(x_1, x_2)$ subject to a strict budget constraint $p_1 x_1 + p_2 x_2 \le I$. He set up the Lagrangian, listed the first-order conditions (FOCs), and filled three pages of the board with Kuhn-Tucker Conditions just in case a boundary solution arose.But because the instructor had asked about "maximizing efficiency under a fixed budget," he suddenly became paralyzed by a dilemma: was this a Utility Maximization Problem (UMP) or an Expenditure Minimization Problem (EMP)?He invoked Duality Theory to map one into the other. He frantically scratched out proofs, deriving Marshallian Demand, switching to Hicksian Demand, applying Roy’s Identity to take partial derivatives, and using Shephard’s Lemma to verify the expenditure function.

To prove the allocation was socially optimal, he even sketched a small Edgeworth Box in the corner, deriving Pareto Efficiency and invoking the First Fundamental Theorem of Welfare Economics to demonstrate that the plumber's individual choice would lead to a General Equilibrium.

Finally, exhausted, covered in chalk dust, his eyes wild with academic mania, he deployed the Envelope Theorem, substituted the Marginal Rate of Substitution (MRS) to equal the price ratio, and arrived at the final, special-case linear answer:$$\frac{MU_1}{p_1} = \frac{MU_2}{p_2}$$He took a deep breath, dropped the chalk, and turned around, habitually expecting the adoring gaze of undergraduate students.

Instead, forty plumbers, in perfect unison, slammed their heavy pipe wrenches onto the desks and roared:

“DRAINAGE PIPES ARE PERFECT SUBSTITUTES! YOU DIDN'T ACCOUNT FOR THE CORNER SOLUTION UNDER QUASI-LINEAR PREFERENCES, YOU UNTENURED FUCKING TOURIST!!”

[Renaud Foucart @RenaudFoucart]

This supposedly "classic" book has an incredible number of hallucinated references. It's as if he's summarizing books that never existed in the first place.

[Santiago Arrúe Gowland @SAGonomics]

@liberaldeantoo2

[Santiago Arrúe Gowland @SAGonomics]

@uvamoradx @taolizag @rocccont En Rosario la oferta se concentra en finanzas y agronegocios (Cargill, FyO, First Capital, LBO, etc). Aunque también conozco varios casos de personas que se dedican a otro tipo de roles como research (Bolsa de Comercio, Univ. Austral) y servicios empresariales (PWC,Exactera)

[Santiago Arrúe Gowland @SAGonomics]

@uvamoradx @taolizag @rocccont Si te gusta la Lic en Economía, te recomiendo que sigas. Todos los chicos que conozco que se gradúan o están próximo a hacerlo encuentran trabajo

[Santiago Arrúe Gowland @SAGonomics]

@yoaorios Excelente, ese es el punto justo

[Jake Walker @jake_doubleyoo]

I read the entirety of The Stand wondering when this shit was gonna happen

[Santiago Arrúe Gowland @SAGonomics]

@ulitario @yoaorios

[Santiago Arrúe Gowland @SAGonomics]

@yoaorios Es un auto deportivo

[Walter Sosa Escudero @wsosaescudero]

Los 5 centavos del #librorojo en "esta discusion"

[Santiago Arrúe Gowland @SAGonomics]

@__fabrimedina__

[Santiago Arrúe Gowland @SAGonomics]

@yoaorios

[Santiago Arrúe Gowland @SAGonomics]

@__fabrimedina__ Volvió la cabra 🐐

[Santiago Arrúe Gowland @SAGonomics]

@yoaorios Excelente análisis

[Santiago Arrúe Gowland @SAGonomics]

@yoaorios Chad Rios

[Santiago Arrúe Gowland @SAGonomics]

@yoaorios Twitazo