# Inelastic market hypothesis
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## [In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686935) Gabaix Koijen - 2020-2021
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## [Mike Green Shatters The Myth About Passive Investing — Down the Middle with DiMartino Booth](https://www.youtube.com/watch?v=FPj60vU-zx4&list=WL&index=9)
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min 40
multiplier is 2 for active
multiplier is 17 now
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**multiplier is 5 according to Gabaix**
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[Lars Petersen - Sharpening the arithmetic](https://research-api.cbs.dk/ws/portalfiles/portal/60084093/lasse_heje_pedersen_sharpening_the_arithmetic_of_active_management_publishersversion.pdf)
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## [The Inelastic Market Hypothesis: A Microstructural Interpretation - Jean-Philippe Bouchaud](https://arxiv.org/abs/2108.00242) 2021
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# Parents
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* Short-run versus long-run⏎