With the NFP payroll report out tomorrow morning, Bloomberg.com put together a timely infographic on one of our favorite pet peeves: the Birth Death Adjustment.
Overall, the piece is good (see charts below). One small quibble: They should have mentioned that int he beginning of the cycle, the B/D catches job creation that the usual methods miss; problem is that at the end of the business cycle, it misses job losses the usual methods catches.
Click for interactive charting:
As in so much of life, improvements in one part of the model cause problems in another . . .
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.