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Арабские красавицы на фестивале в Дубаи. ТОП-10Арабские красавицы на фестивале в Дубаи. ТОП-10 14 самых удивительных вертикальных садов мира14 самых удивительных вертикальных садов мира Крупнейшие радиационные аварии и катастрофы современностиКрупнейшие радиационные аварии и катастрофы современности
Kenneth Arrow

The Germans, for example, hav...

The Germans, for example, have some kind of compromise between single-member and broader districts. In Israel, you have nothing, you have only a national election. You have no local districts at all. And that's because of the idea that in addition to other ideological differences, locality matters. The question is does the congressman represent his district and the interests of his district? And as I said there's quite a variety of systems the democratic world. The implications need to be examined.

Kenneth Arrow 13 quotes
Kenneth Arrow

I think on the efficiency lev...

I think on the efficiency level, not only the distribution level, capitalism is a flawed system. It probably has the same virtues as Churchill attributed to democracy: It's the worst system except for any other. And I think that's right, but it cannot be thought that some unmitigated belief in free markets is a cure even from the efficiency point of view.

Kenneth Arrow 13 quotes
Kenneth Arrow

I am not really inclined to t...

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.

Kenneth Arrow 13 quotes
Kenneth Arrow

Evolutionary theory tends to ...

Evolutionary theory tends to explain quite well in retrospect how various species emerged. It's not very good on prediction. Nevertheless, one cannot say that there isn't a lot of knowledge that's been obtained in this field. In the same way, with these complex physical phenomena between solid state physics, you can say a lot of things without necessarily knowing the next step.

Kenneth Arrow 13 quotes
Kenneth Arrow

Knowledge is a free good. The...

Knowledge is a free good. The biggest cost in its transmission is not in the production or distribution of knowledge, but in its assimilation. This is something that all teachers know.

Kenneth Arrow 13 quotes
Kenneth Arrow

Economics in college was very...

Economics in college was very poor; I was not very impressed with it. I actually wanted to study statistics. I discovered mathematical statistics as an undergraduate and was fascinated with it.

Kenneth Arrow 13 quotes
Kenneth Arrow

When you look at any experime...

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.

Kenneth Arrow 13 quotes
Kenneth Arrow

I think one of the things we ...

I think one of the things we learned from the physicists and also the theoretical biologists is the idea that when you're dealing with very complex systems you're going to get a large variety of behavior which can be interpreted as hill climbing, but hill climbing with a lot of modifications, hill climbing with big jumps occasionally.

Kenneth Arrow 13 quotes
Kenneth Arrow

There is a bit of a problem w...

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.

Kenneth Arrow 13 quotes
Kenneth Arrow

There's only one problem that...

There's only one problem that bothers me. And that's something my theorem [ of Impossibility] really doesn't cover. In my theorem I was assuming people vote sincerely. The trouble with methods where you have three or four classes, I think if people vote sincerely they may well be very satisfactory. The problem is the incentive to misrepresent your vote may be high.

Kenneth Arrow 13 quotes
Kenneth Arrow

The switch to the market in E...

The switch to the market in Eastern Europe, of course, has not exactly been one of the greatest advertisements for the market. There's no question the socialist system - and I hate to use the word 'socialist,' but I suppose some description of a system in which the state is in control - was breaking down, really collapsing. In these countries, most markedly in Russia itself and in a number of the others, it obviously was based on a tyranny, which is unacceptable even if it were producing good economic results, which it was not.

Kenneth Arrow 13 quotes
Kenneth Arrow

I think the idea that a socie...

I think the idea that a society has to be responsible for all of its citizens, those who do well and those who do not, is really a precondition of a good society.

Kenneth Arrow 13 quotes
Kenneth Arrow

Unsolved problems, that's one...

Unsolved problems, that's one of the great signs of progress in my opinion.

Kenneth Arrow 13 quotes
Kenneth Arrow

Some people say Russia is run...

Some people say Russia is running at 50 percent of its gross domestic product under that during the Communist period. In fact, none of the countries seems to have recovered the level that they had under communism, although the other countries in Eastern Europe are doing better than Russia and particularly the Czech Republic seems to be doing modestly well. East Germany I can't count because they have a rich uncle. You have economic benefits which have nothing to do with the workings of the system.

Kenneth Arrow 13 quotes
Kenneth Arrow

From the time I first underst...

From the time I first understood economic principles, I was always concerned also that any system be operated on an efficient basis, which meant decentralization because knowledge is not concentrated anywhere. It's based on motivation, and so these are the advantages of, say, the cautious case for capitalism, that the market system is efficient.

Kenneth Arrow 13 quotes
Kenneth Arrow

The rate of growth of the rel...

The rate of growth of the relevant population is much greater than the rate of growth in funds, though funds have gone up very nicely. But we have been producing students at a rapid rate; they're competing for funds and therefore they're more frustrated. I think there's a certain sense of weariness in the intellectual realm, it's not in any way peculiar to economics, it's a general proposition.

Kenneth Arrow 13 quotes
Kenneth Arrow

The general uncertainty about...

The general uncertainty about the prospects of medical treatment is socially handled by rigid entry requirements. These are designed to reduce the uncertainty in the mind of the consumer as to the quality insofar as this is possible. I think this explanation, which is perhaps the naive one, is much more tenable than any idea of a monopoly seeking to increase incomes.

Kenneth Arrow 13 quotes
Kenneth Arrow

I think the development of th...

I think the development of the venture capital system has been an example of something which is a successful improvement in risk-bearing. It doesn't exactly remove the risks at the beginning, but at least creates greater rewards at a slightly later stage and therefore encourages, say, small companies to engage in technologically risky enterprises.

Kenneth Arrow 13 quotes
Kenneth Arrow

The health care provisions ar...

The health care provisions are presumably for individuals. And whoever pays for them, whether it's paid by the individual, state, whatever, the value is an individually based value. It has nothing to do with employment.

Kenneth Arrow 13 quotes
Kenneth Arrow

In The United States, the onl...

In The United States, the only real change I know has been Instant Runoff, which is usually applied to municipal elections. I see no real improvement. There's another aspect which comes out of the two-party system, which the primary, a funny kind of two-stage election. And people certainly have complained.

Kenneth Arrow 13 quotes

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