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When you run tens of thousands of simulations for complex economic models, you actually do want to see the extreme outliers too. I can't recall who said it, but
by bostik 2mo ago
When you run tens of thousands of simulations for complex economic models, you actually do want to see the extreme outliers too. I can't recall who said it, but in finance the interconnected incentives make so-called Black Swan events much more likely and frequent than models or theories can comfortably account for.
In a way... when it's finance, they should be maybe called Gray'ish Swans?