5 ms·
>relatively low 0.2 percent elasticity of income in the Nordic countries and a relatively high 0.5 percent elasticity of income in places like the UK, the US, a
by mfoy_ 10y ago
>relatively low 0.2 percent elasticity of income in the Nordic countries and a relatively high 0.5 percent elasticity of income in places like the UK, the US, and Italy. An elasticity of 1 would mean that income status is perfectly inherited between father and son, whereas an elasticity of 0 would mean no inheritance.
I assume the author means 20% and 50%, respectively? If "1 percent" is all of it and "0 percent" is none of it then I assume he confused percentages with probabilities.
- tokai 10y agoWouldn't you say that 50/100 = 0.5?
- thomasfoster96 10y agoYes, but expressed as a percentage, that's 50%. As in, 50 is 50% of 100.
- mfoy_ 10y agoI would! However, a "probability of 0.5" and "0.5 percent" are different things by two orders of magnitude. "0.5 percent" is "0.5%" which is 0.5/100, not 50/100.
- thechao 10y agoVerizon ... statistics?
- unchocked 10y agoYes, you are completely right. The author just threw in the word "percent" like the 100x scaling factor between that and decimal probability is nothing.