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US Economic Outlook 2025
With the 2024 election in the rear view mirror, we have a better picture of what policy for the next few years is going to look like. As such, we have a better idea on what to expect from the US economy over the next few years. That has largely colored my analysis this year.…
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How Well Does Real Estate Hedge Inflation?
Last week, I built a multifactor model and ran some optimization to find good candidate zip codes to invest in. This week, I’m looking at the same data again, but this time, we are going to figure out, on a national-level, whether or not our real estate investments are a good hedge against inflation. You…
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Real Estate Portfolio Construction
Real estate investing is an interesting game to play. There are many ways to be a real estate investor, you may be interested solely in Cash Flows, or you may be looking for flips, or you might just be playing a game of appreciation. So, I want to talk a little bit about how to…
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Donald’s Terrible Tariff Policy
One of the curses about being an economist, is that everyone asks you about your opinion on economic news. I’ve had so many people ask me about tariffs over the last week. I guess that there is no getting out of this, I need to have an opinion on these proposed tariffs, and what they…
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Dynamically Updating Prices with Online Learning: A Practical Guide
n today’s rapidly changing markets, the ability to dynamically adjust prices in real-time can provide a significant competitive edge. By leveraging online learning techniques, businesses can continuously refine their pricing strategies based on incoming data. In this post, we’ll walk through a practical implementation using Recursive Least Squares (RLS) to dynamically update prices. This example…
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Optimizing Prices Using Elasticity
In this blog post, we estimate the price elasticity of demand using a linear demand function and visualize the results in Python. We set up the environment, load and explore a dataset, estimate price elasticity with ordinary least squares, and derive the revenue-maximizing price. Finally, we visualize the revenue price curve.
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Understanding Price Elasticity
Understanding price elasticity is key to effective pricing strategies. Barnes Analytics specializes in analyzing price elasticity using advanced econometric models. They help businesses optimize pricing by offering data-driven insights, tailored strategies, competitive analysis, dynamic pricing, and continuous optimization, enhancing competitiveness and driving growth.
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U.S. Economic Outlook 2024
The U.S. economy is actually in a pretty good shape. Read about what my model predicts will happen over the next 24 months. A recession is unlikely, over the next 2 years, but if one does happen, it probably won’t be too bad.
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Forecasting the Economy
So far on this blog, I have mainly focused on machine learning, and models of events that are driven by econometrics. But the truth is that I am an economist (with a doctorate). As such, I get asked all of the time about where I think that the economy is going (especially recently). That seems…
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Quantile Regression in Python
So I wanted to write a little tutorial on quantile regression. What it is and how it works. Then I wanted to show you how to utilize it to great effect within python. This is one of my favorite statistical models, and I feel like it is very underutilized. So do refer back to this…
