Honestly: I've thought about this a lot for my thesis and the optimal policy isn't super clear to me. Everything is a tradeoff between the extensive and intensive margins. I don't want to talk about this in detail given twitter's Mood today, but I think it is a nice study . . . https://twitter.com/k1ug3/status/1013799233483182080 …
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I’m not familiar with those terms
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here's . . . kind of a summary http://www.overcomingbias.com/2010/06/near-far-summary.html … it was the shit Robin was on from maybe 2009-2012, was a pretty helpful insight pump
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