Kenneth Arrow Quotes


The trouble is that the risks that are being hedged very well by new financial securities are financial risks. And it appears to me that the real things you want to hedge are real risks, for example, risks in innovation. The fact is that you'd like companies to be able to take bigger chances. Presumably one obstacle to successful R&D, particularly when the costs are large, are the risks involved.


Citations

Arrow, Kenneth J. "Interview with Kenneth Arrow." The Region, interviewed by Douglas Clement, Federal Reserve Bank of Minneapolis, Dec. 1995.

Related Quotes

He was referring to projects like the ObamaCare website. This was then only the most recent failure of a major IT government project. The IRS has for years been unsuccessful and developing a system for tax filing. And the Defense Department tried to develop a standardized programming language—ADA—that failed miserably despite all the pressure the government put on companies. Microsoft and Google rarely meet their own internal deadlines for development of a major innovative product, and that is typical as there is risk in many parts of a system and further risk as to whether they work together, and then whether they work with heavy use, etc.


Kenneth Arrow
Kenneth Arrow
  • Born: August 23, 1921
  • Died: February 21, 2017
  • Nationality: American
  • Profession: Economist

Kenneth Joseph Arrow was an American economist, mathematician, writer, and political theorist. He was the joint winner of the Nobel Memorial Prize in Economic Sciences with John Hicks in 1972.