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Equation 14 · Part 1 · Selection Accounting: The Price Equation Runs the Economy

Symbol N_e

NeN_e
NeN_e

What this part means

the same headcount and wildly different.

Its job in the formula

NeN_e is a part of this expression. Its role is fixed by the surrounding article and by the operations shown in the formula.

Where the article explains it

A hundred equal firms and one firm with half the market plus two hundred sharing the rest can have the same headcount and wildly different NeN_e .

The passage around this formula

This bears directly on the declining-dynamism debate. U.S. business concentration has risen over the same decades that startup rates and job reallocation have fallen [ 12 ] , and Proposition 4 says that falling NeN_e mechanically widens the drift band that any measured selection term must clear before it means anything. An economy moving toward the concentrated end of the range above is not only changing its market structure; it is degrading the statistical power of every reallocation decomposition run on the resulting data, exactly when reallocation is the thing everyone most wants to measure precisely.

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A subscript is a label attached below a symbol. It often selects a time step, component, category, or member of a sequence.

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Sources cited in the surrounding passage

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