On: Skin in the Game as a Required Heuristic for Actin...

[MBlume]

So what happens to the authors of this paper if we take their advice and it goes badly?

[zzleeper → MBlume]

Nothing of course! It's one of the wonders of being an economist ;)

(sarcasm aside, I do think there should be stronger professional repercussions in economics for advocating idiotic policies. It's one thing to found a startup and fail, and then start again; it's another to cause a deep recession in a country and then say "oh well, let's try again")

[moments → MBlume]

The author follows this rule: only recommend a strategy that is currently used.

If the advice goes badly, the author also suffers. Such recommendations are more reliable than those from authors without 'skin in the game'.