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Quote by Kenneth Arrow

“Venture capital has done much more, I think, to improve efficiency than anything.”

Quote by Kenneth Arrow

Author

Kenneth Arrow, born on August 23, 1921 in New York, USA, was a distinguished economist. He made significant contributions to the field of economics, particularly in general equilibrium theory and welfare economics. Arrow was awarded the Nobel Prize in Economic Sciences in 1972 for his pioneering contributions to the economic sciences. more

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“I'm struck by the fact that by and large equity capital doesn't play a big role in new financing; it's either bonds or internal financing but not really equity. And therefore, it's not clear that anything which improves the equity markets has really much to do with the productivity of the economy as a whole.”

Play Whole Facts Bigs Roles Economy Clear Productivity Internals Equity Financing

Author:Kenneth Arrow

“I am not really inclined to think there is any very effective regulation of the derivative securities markets that would be useful. People who go into it essentially ought to know what risks they're taking and I don't see any useful regulation.”

People Thinking Knows Would Be Risk Security Ought Regulation Derivatives

Author:Kenneth Arrow

“There is a bit of a problem with the match between derivative securities markets and the primary markets. We have long ago instituted principles, essentially high margin requirements, to prevent certain instabilities in the stock market, and I think they're basically correct. The trouble is that there's a linkage, let's say, between something like the stock market and the index futures markets, and the fact that the margin requirements are very different, for example, played some role in the October '87 crash.”

Thinking Long Different Facts Problem Certain Bits Principles Roles Trouble Security Example Primaries Long Ago Crash Requirements Margins October Instability Derivatives Linkages

Author:Kenneth Arrow

“One doesn't like instabilities in markets; they may be damaging, but probably not fatal, as the October '87 crash showed. It turned out to be essentially inconsequential. So if that's true, I'm not very worried about the welfare of those who are investing any more than I am about the welfare of those who go into casinos.”

Ifs May Investing Worried Welfare Crash October Instability Casinos Inconsequential

Author:Kenneth Arrow

“I don't believe that unemployment is all voluntary, by anticipation of future wage movements or this sort of thing. I know you can modify the models by taking into account the indivisibilities, but I don't really think that people are voluntarily unemployed.”

People Thinking Knows Believe Movement Models Accounts Don't Believe Anticipation Unemployment Unemployed

Author:Kenneth Arrow

“Usefulness depends on tractability.”

Depends Usefulness

Author:Kenneth Arrow

“It seems to me that at least as far as the financial markets are concerned, there is increasing evidence against rational expectations, even at the macro level.”

Seems Levels Expectations Evidence Concerned Financial Rational Financial Markets Macro

Author:Kenneth Arrow

“When you look at any experimental work not directly related to economics, but trying to test rational behavior in other ways, experiments have conspicuously failed to show rational behavior. Macro evidence certainly suggests deviations from rationality, but I don't want to say the rationality hypothesis is completely wrong. If you have any introspective idea or experimental idea about people's behavior, it seems to be incompatible with the really full scale rational expectations.”

People Ifs Way Want Trying Looks Ideas Shows Seems Behavior Expectations Evidence Economics Tests Scales Experiments Rational Related Rationality Hypothesis Introspective Deviation Macro

Author:Kenneth Arrow

“The world is changing. We're not really proceeding on a stationary basis.”

World Bases Proceeding Stationary

Author:Kenneth Arrow

“I believe that, as long as there is plenty, poverty is evil.”

Believe Long Political Evil Politics I Believe Poor Poverty Plenty Ending Poverty Good Against Evil World Poverty Evil Government

Book:A New Day: Robert F. Kennedy

Source: A New Day: Robert F. Kennedy