On 8/6/06, Michael Perelman <[EMAIL PROTECTED]> wrote:
.Three economists, Jonathan A. Parker and Yacine Ait-Sahalia from
Princeton, together with Motohiro Yogo at the Wharton School of the
University of Pennsylvania, tried to track the consumption of the
wealthy by constructing an index based on domestic sales of luxury
retailers such as Tiffany.  Their research indicates that during the
1990.s, the average annual real sales growth of luxury retailers was a
strong 11 percent. Unfortunately, their data stops at 2001. But looking
at the domestic sales of individual high-end retailers since then, it
seems sales have remained robust.  For instance, Tiffany reported that
domestic sales grew 9 percent in the year ended January 31, 2006, and
10 percent the previous year..

you don't understand. It goes like this:

Reginald buys a diamond for Bitsie at Tiffany's. The diamond was
purchased in Amsterdam, where poor, starving, diamond merchants were
hoping for a sale. The increase in the demand for diamonds causes a
price spike, which encourages an increased tempo for the war over
diamond lands in Africa. The poor, starving, warlords mobilize, hiring
more soldiers and  diamond miners. . Trickle down. QED.
--
Jim Devine / "In science one tries to tell people, in such a way as to
be understood by everyone, something that no one ever knew before. But
in business schools, it's the exact opposite." --- Paul Dirac [edited]

Reply via email to