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How do I derive a SWF from mean income and an inequality index?

If one makes welfarist assumptions about the general good, and further assumes that SWFs can be fully characterized by the mean income and an inequality index, then it is possible to recover the ...
andrewH's user avatar
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How will market self-correct so that passive investing never becomes 100 %?

The premise of the paper titled The Arithmetic of Active Management by Sharpe is that active managers as a group have to necessarily underperform passive managers as a group because passive investors ...
David Sanetrník's user avatar
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Creating an Index from Principal Component Analysis

I have 5 dummy variables, and I want to combine them into one single dummy variable. Is PCA a valid option? If not, what else can I do? If I am doing PCA, What issues can I face in the analysis? PS: I ...
desi arthshastri's user avatar