Using Machine Learning to Estimate Price Elasticity
During the final semester of my grad school analytics program, I was tasked with estimating price elasticity for wine. At first glance, this seemed like a simple objective. In economics, I was taught that price elasticity is the percent change in demand given the percent change in price (i.e....
How much will the market help you retire?
By Jeff Lundy I know a couple friends who model their retirement outcomes. Recently, I asked them what growth rate they assumed for investments. Interestingly, we all used a similar rate: 4%. That seems appropriately conservative, and by setting it low you bake in all kinds of uncertainties (taxes...